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 recruiting selecting training performance appraisal compensation employee separation
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Attracting qualified employees
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Developing qualified employees
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Keeping qualified employees
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Adapted from Exhibit 13.1 ©2004 by Nelson, a division of Thomson Canada Limited

Human Resource Planning

Forecasting Demand and Supply Human Resource Information Systems

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Forecasting Demand and Supply
Workforce forecasts
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Forecasting methods

internal external

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direct managerial input best guess statistical/historica l ratios

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Workforce Forecasting: Internal Factors
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New positions New equipment and technology Eliminated positions Terminations Retirements Resignations Turnover

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Transfers Deaths Promotions Organization’s mission Productivity of current employees skills/education of current employees
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Adapted from Exhibit 13.2 ©2004 by Nelson, a division of Thomson Canada Limited

Workforce Forecasting: External Factors
Demographics of labour supply  Geographic population shifts  Shift from manufacturing- to service- to information-based economy  General economic Adaptedconditions from Exhibit 13.2

©2004 by Nelson, a division of Thomson Canada Limited

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Unemployment rate Labour unions Availability of applicants Technological advances Strength and number of competitors Growth in particular businesses and markets
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Human Resource Information Systems (HRIS)
Computerized employee information systems Uses
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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
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Personal data Company employment history Work history Educational data Performance appraisal Promotion data
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Adapted from Exhibit 13.3 ©2004 by Nelson, a division of Thomson Canada Limited

Employment Legislation

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Federal and provincial employment laws Employment discrimination Sexual harassment

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Major Federal Employment Laws
Canada Labour Code — Part III

minimum wage, parental leave, hours of work, vacation entitlements occupational health and safety guarantees the right to form and join unions prohibits discrimination on the basis of race, origin, gender, religion etc.
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Canada Labour Code — Part II

Canada Labour Code — Part I

Canadian Human Rights Act

Adapted from Exhibit 13.4 ©2004 by Nelson, a division of Thomson Canada Limited

Employment Discrimination

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

reliability validity
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©2004 by Nelson, a division of Thomson Canada Limited

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:
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quid pro quo hostile work environment
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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
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©2004 by Nelson, a division of Thomson Canada Limited

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

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Job Analysis and Recruiting
Job analysis

a purposeful, systematic process for collecting information on work-related aspects of a job a written description of the basic tasks, duties, and responsibilities required of a job incumbent

Job description

Job specifications
a written summary of the qualifications ©2004 by Nelson, a division of Thomson Canada Limited required for a job

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Internal Recruiting
A pool of qualified applicants who already work for the company.

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Improves employee commitment, morale, and motivation Reduces recruitment time and costs Job posting Career paths
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External Recruiting
Developing a pool of qualified applicants from outside the company.
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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
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Application forms and resumes References and background checks Selection tests Interviews

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Topics to Avoid on Application Forms and During Selection
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Name changes Addresses outside Canada Age Marital status Children Birthplace

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Military service outside Canada Mother tongue Race Religion Criminal record 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
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Selection Tests
     

Specific ability tests Cognitive ability tests Biographical data Personality tests Work sample tests Assessment centres
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Interviews

Unstructured

free flow of questions interviewer uses standard set of prepared questions combination of structured and unstructured questions
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Structured

Semi-structured

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Guidelines for Conducting Effective Structured Interviews
Planning the interview Conducting the interview
Adapted from Exhibit 13.8 ©2004 by Nelson, a division of Thomson Canada Limited

After the interview
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What Really Works
Cognitive Ability Tests

Work Sample Tests

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What Really Works
Assessment Centres

Structured Interviews

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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

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Training Methods and Objectives

Impart information or knowledge

Films, videos, lecture, planned readings

Develop analytical and problemsolving skills

Case studies, coaching and mentoring, group discussions

Practise, learn or change job behaviour

OJT, role playing, simulations and games, vestibule training ©2004 by Nelson, a division of Thomson Canada Limited
Adapted from Exhibit 13.10

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Evaluating Training
   

Reactions Learning Behaviour Results

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Performance Appraisal
Accurately measuring job performance Sharing performance feedback
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Accurately Measuring Job Performance
    

Objective performance measures Subjective performance measures Trait rating scales Behavioural observation scales Rater training

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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 piecework, commission, profit sharing, employee stock ownership plans, stock options hierarchical and compressed cafeteria benefit plans
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Pay-variability decisions

Pay-structure decisions

Employment benefits

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Employee Separations
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Involuntary/voluntary Terminating employees Downsizing Retirement Employee turnover

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Terminating Employees

Termination is often not well managed Minimize problems by:
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not making firing the first option firing should be for “just cause”
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termination at will wrongful dismissal

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deal with employee morale among “survivors” after a firing

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Downsizing
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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
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©2004 by Nelson, a division of Thomson Canada Limited

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
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©2004 by Nelson, a division of Thomson Canada Limited

Employee Turnover

Loss of employees who voluntarily choose to leave the company Functional turnover

the loss of poor-performing employees the loss of high-performing employees

Dysfunctional turnover

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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 44

©2004 by Nelson, a division of Thomson Canada Limited