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HRMG Lecture 1 - Introduction

The document provides an overview of key concepts in human resource management (HRM). It discusses how HRM involves more than just hiring and firing, and how effective HRM practices can improve organizational performance and drive business strategy. The document also examines different philosophies in managing people, including scientific management and the human resources movement, as well as challenges facing HRM like globalization, technology, and managing diversity.

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Kim Hang
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0% found this document useful (0 votes)
123 views270 pages

HRMG Lecture 1 - Introduction

The document provides an overview of key concepts in human resource management (HRM). It discusses how HRM involves more than just hiring and firing, and how effective HRM practices can improve organizational performance and drive business strategy. The document also examines different philosophies in managing people, including scientific management and the human resources movement, as well as challenges facing HRM like globalization, technology, and managing diversity.

Uploaded by

Kim Hang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to

Human Resource
Management
(HR/HRM)

HRMG 2150
Lecture #1 – Chapter 1
March 2021
HRM is Not …

 Only about hiring & firing people

 Only
a career for “people who like
people”

 Social work in business


HRM definition:
Managing people in
organizations to drive successful
organizational performance & to
achieve the organization’s
strategic goals
HRM is … (in plain language)
 Find the right people (recruitment)
 Hire the right people (selection)
 Invest in the right people (training)
 Manage them effectively (performance mngt.)
 Recognize & reward them (compensation mngt.)
 Respect their legal rights
 Link HR goals, policies, activities to
business strategy (strategic HRM)
HRM Adds Value
 HRM has potential to add to higher profits
& greater shareholder value. How?
By linking HRM & Business Strategy:
(1) Business strategy & “competitive advantage”

+
(2) Managing “core competencies” of employees

=
(3) Strategic HRM
HRM is a Partnership
 HRMis a partnership between line
managers & HR professionals

 HR professional has “staff” or “advisory”


authority
 Operational manager has “line” authority

 Line managers must recognize the


difference between effective/ineffective
HR practices because they also “do” HR
The Partnership:
Staff and Line Functions
 In this organization chart, the market
forecaster & training director are “staff”
positions; the others are “line” positions.
THE PARTNERSHIP
“Human resources are too important to be left to
only the HR department.”

 The Line Manager:


 Hire

 Coach & Develop


 Appraise Performance

 Recognize & Reward

 Discipline

 Implement HR Policies
THE PARTNERSHIP
 The HR professional (staff manager):

 Advise Line Managers


 Provide Recruiting & Training Services
 Formulate HR Policies
 Evaluate HR Policies
 Ensure Legal Compliance
 Employee Advocacy

 Provide
Expertise to, Train, &
Coach Line Managers
WHY STUDY HRM?
 Research shows that effective HR
practices lead to higher returns to
shareholders

 “Human capital” is very important in


establishing competitive advantage
WHY STUDY HRM?

 Linemanagers are responsible for


effective management of employees &
must understand processes that help build
a committed, skilled workforce

 HR practices contribute significantly to


being one of the “Best Companies To
Work For”
Option 1
 The average person has an inherent dislike of
work and will avoid it if possible.

 Because of this, most people must be


controlled, directed, or threatened with
punishment to get them to make an adequate
effort toward reaching organizational goals.

 The average person prefers to be directed,


avoids responsibility, has relatively little
ambition, and wants security above all else.
Option 2
 Effort in work is as natural as play and rest.
 Most people want to be self-directed and self-
managed and will try to achieve organizational
goals they believe in.
 Under proper conditions, the average person
not only accepts responsibility but seeks it out.
 Most people have a relatively high degree of
imagination and creativity and are willing to
help solve work problems.
 The intellectual potential of the average person
is only partly utilized in the workplace.
Brief History of HRM

Assumptions, policies, &


expectations of 2 distinct major
management philosophies lead
to different HRM practices
Scientific Management (Taylorism)
Scientific Management:
Primary Concern is Production
 People dislike work
 Pay is more important than job content
 Managers must simplify work tasks
 Managers must closely supervise &
control employees
 Workers will produce up to standard if
pay is adequate & they are closely
controlled
http://www.youtube.com/watch?v=PvbG9Sjp97o (ford / taylor – 5:07)
https://www.youtube.com/watch?v=CCsOqWbK46o (ABC / taylorism – 4:48)
https://www.youtube.com/watch?v=JgvYGi5J-Cg (beat of system / taylorism – 8:51; start 0:40)
Human Resources Movement:
Concern for People and Productivity
 People want to contribute to meaningful goals
they have helped set
 People can be more creative & responsible
than their current job allows
 Managers should make use of these
“untapped” human resources
 Managers should encourage participation in
important decisions
 Expanding worker influence leads to
increased productivity  
increased job satisfaction often occurs
STRATEGIC HUMAN
RESOURCE MANAGEMENT

Identifying & linking key HR


processes to the firm’s
business strategy
Two Types of HRM Strategy
Business strategy: Business strategy:
 Cost leadership  Differentiation
 Compete on price  Compete on quality &
 Emphasize low costs innovation
 Emphasize quality

HRM Strategy: Low HRM Strategy: High


Commitment Commitment
 Lower wages  Higher wages
 Lower skill levels  Highly-skilled employees
 Selection not too  Selection critical; low turnover
important; high  Employee empowerment;
turnover is okay team-based work; training
 Employee engagement  Employee engagement critical
not too important
Is the Senior HR Manager at the
executive, V-P (strategic)
decision-making level?

President & CEO


Vice-President, Vice-President, ???? Vice-Preside
Sales & Marketing Finance HRM ????

Yes, in those organizations that realize


the importance of their human capital.
Some Challenges in the HRM
Environment
1. Globalization
2. New technology
3. Developing human capital
4. Responding to the market / to customers
5. Managing change
6. Controlling costs
7. Increasing productivity
8. Workforce diversity & employee expectations
9. Government laws
10. Environmental & social issues
CHALLENGE 1:
GLOBALIZATION
 Emergence of a single
global market for many
products

 Firms must understand


local cultures & laws (&
adjust HR policies)
when they establish
operations overseas
CHALLENGE 2:
NEW TECHNOLOGY
 Shift
from
“manual labour” to
“knowledge work”

 Knowledge workers
must be managed
differently
CHALLENGE 3:
DEVELOPING HUMAN CAPITAL
 Human capital:
an individual’s knowledge,
education, training, skills, &
expertise that has
economic value to the
organization

 Employees viewed as
assets, not as expenses

 Knowledge workers
CHALLENGE 4: MEETING
CUSTOMER EXPECTATIONS
 Need to respond to
market demand for
innovation & quality

 To
have quality products,
must emphasize
employee training,
motivation, &
empowerment
CHALLENGE 5:
MANAGING CHANGE
 Change occurring
continuously
 Yet corporate change
initiatives are often
poorly managed
 Corporate change
initiatives often fail
because of people
issues
From ORGB 1100: Importance
of people accepting change

“You can’t
change anything
if you don’t bring
people with you.”
Carolyn McCall
CEO
Guardian Media Group
CHALLENGE 6:
CONTROLLING COSTS
Outsourcing
 Morale of remaining
employees often declines

Downsizing
 Limited success –
profits not always
increased

 Human capital approach


is better-suited for
knowledge workers
CHALLENGE 7:
INCREASING PRODUCTIVITY
 Productivity
=
Outputs / Inputs

 Productivity
can be
increased by using
human resources
wisely
8: Workforce Diversity
Increasing workforce diversity:

 Age (labour force is aging)


 Different generations – Boomers, Gen X,
Gen Y (Millennials), Gen Z
 Rising levels of education
 Cultural diversity
 Gender
8: Workforce Diversity
Changing expectations:

 Balancing work & family


 Changing attitudes
towards work (e.g.,
money not the only
important issue)
 Employee rights
 Contingent /
non-standard work
9: Government Laws
 Laws
regulating many aspects of
human resource management
10: Environmental & Social
Concerns
 Increasinginterest among
employees in working for
environmentally & socially
responsible organizations
Key Topics (page 1 of 2)
 What is HRM? (defintion) Why is it
important?
 Explanation & comparison of these 2
management philosophies: Scientific
Management & Human Resources
Movement
 Theory X and Theory Y (“Options 1 and 2”)
 The Staff-Line Partnership: HR (staff)
managers & line managers; line & staff
authority
Key Topics (page 2 of 2)
 Strategic role of HRM; 2 types of
Business Strategy and their connection
to 2 Types of HRM strategy
 Any 5 challenges in the HRM
environment & their connection to HRM
 Human capital; Employee engagement;
Knowledge worker; Outsourcing;
Strategy; Productivity; Globalization;
Contingent/nonstandard workers; Baby
Boomers; Generation X; Generation Y
(Millennials); Generation Z
Job Analysis and Job Design
HRMG 2150
BCIT
March 2021

http://www.youtube.com/watch?v=PvbG9Sjp97o (ford /
taylor – 5:07)
https://www.youtube.com/watch?v=CCsOqWbK46o (ABC /
taylorism – 4:48)
https://www.youtube.com/watch?v=JgvYGi5J-Cg (beat of
system / taylorism – 8:51; start 0:40) 3-1
1
Major Ideas #1 and #2
1. Job analysis is 2. By considering how
the foundation for jobs are designed,
most HR activities we can improve
outcomes such as
motivation &
performance

3-2
2
Job Analysis
Job analysis: information about jobs is
systematically gathered & organized

Job analysis helps determine: (1) the tasks,


duties, & responsibilities of a job and
(2) the knowledge, skills, & abilities (KSA’s)
needed to do that job

3-3
3
Process of Job Analysis
Where you get job information:
Employee
Supervisor
Research

What job information is collected:


Tasks & duties
Responsibilities
Effort
Equipment used
Working conditions
KSA’s required
Educ. & experience 3-4
4
Process of Job Analysis (continued)
Where the job information goes:

Written job descriptions


Written job specifications
Performance standards

How job information is used:


Recruitment & Selection
Training
Performance Review
Compensation
Job Design Etc. 3-5
5
3-6
6
Steps in Job Analysis

Step 6: This info communicated/updated as needed

Step 5: Write Job Descriptions & Job Specifications

Step 4: Information Collected In Step 3 Is Verified

Step 3: Collect Data On Job Activities

Step 2: Select Jobs To Be Analyzed

Step 1: Review Relevant Organizational Information


3-7
7
Step 1: Review Relevant
Background Information
Organizational Structure
 formal relationships among jobs in an organization

Organization Chart
 who reports to whom

3-8
Step 2: Select Jobs to be
Analyzed
Traditional job analysis assumes fairly
static environment

Some firms continue to:


 rely on traditionally defined jobs
 use traditional job descriptions

3-9
Changes to Job Analysis

In dynamic environments, jobs can change


rapidly

In growing number of firms:


 jobs are broadly defined, or
 job duties defined by the demands of the
work
 competency-based job analysis is used
3-10
10
Step 2: Select Jobs to be
Analyzed
Competency-based job analysis: job
is described as measurable “behavioural
competencies” an employee must exhibit

Example of a competency for salesperson ----


employee must: determine customer needs, &
then match the most relevant product with the
customer’s specific needs
3-11
11
Competency-based job analysis . . .
. . . results in job descriptions based on
“behavioural competencies” rather than lists of
specific job duties

Such lists of duties fail to capture the complexity,


flexibility, & change found in high-performance
work environments

3-12
12
Step 3: Collecting Job Analysis
Information – Various Methods
http://noc.esdc.gc.ca/English/NOC/SearchAlphabetical.aspx?ver=16

Interviews (individual, group, supervisory)

Questionnaires

Direct Observations

Employee Diary/Log
3-13
13
National Occupation Classification (NOC)
Step 4: Verifying Information

Verify with:
 workers currently performing the job
 supervisors

Clear up any job information that is unclear or


incomplete

3-14
Step 5: Writing Job
Descriptions & Job
Specifications
Job Description
 statement of duties, responsibilities, reporting
relationships, & working conditions of the job

Job Specification
 statement of knowledge, skills, and abilities
(KSA’s) needed to perform the job
3-15
Job Descriptions
Job Description:
what jobholder does
how the job is performed
under what conditions the job is
performed

3-16
16
Job Description Information
job identification (title, dept.)
job summary
relationship of job to other jobs
responsibilities & duties
authority (decision-making, supervises
others?)
performance standards (sometimes
included)
working conditions (physical demands
17
analysis) 3-17
Job Specifications

Knowledge, skills, & abilities (KSA’s)


Education & training
Experience (type & amount)

KSA’s needed to perform the job


(not necessarily the same as those held by current
jobholder)
3-18
18
Job Descriptions:
Human Rights

Job descriptions not legally required, but


are advisable

KSA’s (knowledge, skills & abilities) should


be sole criteria for selection decisions

3-19
19
Step 6: Communicate Job
Information & Prepare for
Revisions
communicate job information to all
relevant stakeholders (managers, other depts.,
etc.)

anticipate potential changes to jobs:


 new skill requirements
 changes in technology 3-20
Line & Staff Roles in Job Analysis
Line Manager:
 Determines tasks to be performed
 Determines KSA’s needed to perform tasks
 Determines performance standards
 Is a source of information

HR Professional (Staff):
 Gathers & documents this information for all jobs
 Advises on job design, selection (including legal
requirements), performance reviews, etc.

3-21
21
JOB DESIGN
Some of this information
is not in the HR text

Refer to these lecture slides and/or an


Organizational Behaviour textbook

3-22
22
Depending on the needs of the employees involved,
there are 2 methods to increase motivation

Rewards Job design


 Money or some other  Create a job the employee
desired outcome (job is self-motivated to
title, promotion) for complete
success on the job
 Motivation comes from
 Motivation comes from doing an interesting job
outside the job (from (“If you want someone to
external rewards) do a good job, give them
a good job to do”)
3-23
23
Little Ambition
Theory X view
Dislike Work
of workers
Avoid Responsibility

Self-Directed
Theory Y view
Enjoy Work
of Workers
Accept Responsibility
24 3-24
Job Design
What is it?
Organizing work into the tasks required to
perform a specific job

Line manager’s responsibility


But HR manager provides “how-to” advice

Job design and Herzberg’s intrinsic


motivators
3-25
25
Herzberg’s 2-Factor Theory
 Factors external (working conditions, boss, salary)
to job’s content even when they are adequate do
not really motivate; they merely result in no
dissatisfaction

 External factors can either:


(1) cause dissatisfaction or (2) at best prevent
dissatisfaction

 Only factors internal to the job (interesting work,


chance for achievement, responsibility, learning)
26
actually do motivate 3-26
Herzberg’s External Factors

Supervision

Pay/Benefits Job security

JOB
Working Relations
conditions with co-
workers

3-27
27
3-28
28
Q: How can we use Herzberg's
insights to design jobs that are
intrinsically motivating?

A: Use the Job Characteristics


Model (JCM).

3-29
29
3-30
30
Job Characteristics Model
of Work Motivation
1. 5 Core Job Dimensions (Skill Variety, Task
Identity, Task Significance, Autonomy, Feedback)


2. Work becomes meaningful; jobholder is


responsible for & knows the results of
his/her work activities 

3. Personal & Work Outcomes (motivation,


satisfaction, quality performance all increase; 3-31
31
absenteeism, turnover decrease)
Core Job Characteristics of the JCM Model
Skill variety – range of different skills are used in
undertaking the job
Task identity – worker involved in all phases of
job, from start to finish
Task significance – job is meaningful to the
organization
Autonomy – worker has freedom to decide how
job tasks are to be carried out
Feedback – worker gets direct information (from
the job itself) about how well job has been done
3-32
32
Job Characteristics Model
The higher the level of the 5 core job
characteristics, the better the personal &
work outcomes

This relationship is moderated by the


strength of the employee’s need for personal
growth, (does employee respond to Theory
Y management style?)
3-33
33
3-34
34
Job Design Techniques

From the Job Characteristics


Model to actual jobs . . .

3-35
35
Job Design Techniques
Work simplification
Based on Theory X view of employees

Scientific management techniques:


1. Reduce the number of tasks in the job
2. Simplify the remaining tasks

Therefore, "skill variety" decreases (fewer skills


needed) & "task identity" decreases (worker
now identifies with only part of overall process of
36
doing job) 3-36
Job Design Techniques
Job design based on Theory Y
Job rotation
Job enlargement (expansion)

Job enrichment
 Employee empowerment
 Establish direct relationships with customers
 Assign “start-to-finish” responsibility for entire work
process
 Team-based job designs (applying job enrichment
concepts to a team not just to an individual)
3-37
37
Job Rotation &
Job Enlargement (Expansion)
Increases number/variety of KSA’s needed to
do the job (increases “skill variety”)

Increases “task identity” by providing the


opportunity to experience more parts of the
entire work process

Adds to “task significance” & understanding of


the big picture
3-38
38
Job Rotation

Moving from one job to


another (and back) Job ‘A’

Job ‘B’

Benefits:
• Potentially reduces
boredom Job ‘D’

• Multiskills the employee


Job ‘C’

http://www.youtube.com/watch?v=3k8
WA_AW02A&feature=fvst
39 3-39
http://www.youtube.com/watch?v=0HDlHeU
rO2U
Job enlargement compared to
job enrichment

3-40
40
Job Enlargement
Adding tasks (skill variety) to an existing job
Example: video journalist

Traditional news team


Video journalist
Employee 1: • Operates camera
Operates camera • Operates sound
Employee 2: • Reports story
Operates sound

Employee 3:
Reports story

41 3-41
Job Enrichment
Increases jobholder’s autonomy &
associated feeling of responsibility for what
happens on the job – creates “ownership”

Job enrichment has bigger impact on the


job’s design than job rotation or enlargement
& may therefore result in better personal &
work outcomes

3-42
42
Employee Empowerment
(a type of enrichment)
Delegating decision-making responsibility to
those close to customers

Relies upon sharing of information & the


power to act

Culture of organization must be receptive to


change
43
3-43
Self-Managed Teams
Groups of employees who assume a
bigger role in producing product/service

Self-managed teams:
set own work schedules
allocate work among team members
deal directly with customer
collectively responsible for work outcomes
3-44
44
Appendix
Examples of High and Low Job
Characteristics
Next slide has examples of high and low
job characteristcs

3-45
45
Characteristics Examples
Skill Variety
• High variety The owner-operator of a garage who does electrical repair, rebuilds engines,
does body work, does bookkeeping, and interacts with customers.
• Low variety A bodyshop worker who sprays paint eight hours a day.
Task Identity
• High identity A cabinetmaker who designs a pieces of furniture, selects the wood, builds the
object, and finishes it to perfection.
• Low identity A worker in a furniture factory who operates a lathe to make table legs.
Task Significance
• High significance Nursing the sick in a hospital intensive care unit.
• Low significance Sweeping hospital floors.
Autonomy
• High autonomy A telephone installer who schedules his/her own work for the day, and
decides on the best techniques for a particular installation.
• Low autonomy A telephone operator who must handle calls as they come in according to a
routine, highly-specified, predetermined procedure.
Feedback
• High feedback An electronics factory worker who assembles a radio and then tests it to
determine if it operates properly.
• Low feedback An electronics factory worker who assembles a radio and then routes it to a
quality control inspector who tests and adjusts it.
46 3-46
HRMG 2150
BCIT
April 2021
(Chapters 4 and 5)

HR PLANNING &
TALENT ACQUISITION
(RECRUITMENT & SELECTION)
1 4-1
Human Resource Planning

2 4-2
Human Resource Planning
 Definition: Process of forecasting future
HR requirements to ensure organization
will have the required number of
employees with the necessary skills to
implement its strategy

Need to link firm’s goals with available


skills: Mission  Strategy  Goals 
HR planning for skills availability
3 4-3
HR Planning & Strategic Planning

Strategic HR
Planning Planning

 HR plan must align with firm’s strategy

4 4-4
Uses of HR Planning
Recruitment: what type of
employees/skills need to be to recruited? By
what recruitment methods?

Training: ensuring current employees will


have necessary competencies in the future

Succession Planning: developing


employees to fill future vacancies
5 4-5
Steps in HR Planning Model
Forecast &
analyze
Forecast
future Plan & implement
future
availability programs to balance
HR needs
of internal supply & demand
(demand)
& external
candidates
(supply)

6 4-6
Steps in HR Planning Model
Forecast firm’s demand for
labour/skills
Forecast supply of labour/skills (both internal
to & external to firm)

Gap analysis – identify gap (if any)


between demand & supply
Solutions analysis – develop plans to
close gap (including use of
overtime; recruitment/hiring; hiring
7
freeze; layoffs; etc.) 4-7
Forecasting Future Internal
Supply of Job Candidates
skills inventories
management inventories
succession planning

4-8
Forecasting Future
Internal HR Supply
Skills Management
Inventories Inventories
summary of each summary of each
employee’s KSA’s, manager’s KSA’s,
experience, interests etc.

used to identify used to identify


internal candidates internal mngt.
eligible for promotion candidates eligible
9
for promotion 4-9
Forecasting Future
Internal HR Supply
Succession Planning ensures internal supply of
successors for key jobs so careers can be
planned
Succession planning:
analyze demand for managers/professionals/
other key jobs
project future supply
plan individual career paths / career
counselling
plan how to recruit 4-10
10
Forecasting Future
External HR Supply
External market conditions analyzed:
 economic conditions
 wages, unemployment
 labour market conditions
 demographics: age, education levels
 occupational market conditions
 relevant occupations (as applicable to each firm):
e.g., skilled trades, accountants, software
designers
4-11
Forecasting Future HR Needs
(Demand for Job Candidates)
Trend Analysis
predict future HR needs based on past
employment levels
Regression Analysis
examine statistical relationship between business
activity & number/type of employees

4-12
Planning & Implementing HR Programs
to Balance Supply and Demand
 Labour surplus exists when the internal supply of
employees exceeds the organization’s demand

 Employers may respond with:


 hiring freeze
 attrition (not replacing employees as they resign or
retire)
 early retirement buyout programs
 job sharing
 reduced work week
 layoffs
 termination of employment with severance package4-13
5-13
Planning & Implementing HR Programs
to Balance Supply and Demand

 Labour shortage exists when the internal supply of


human resources cannot meet the organization’s needs

 Employers may respond with:


 scheduling overtime hours
 internal promotions & transfers
 subcontract work
 hiring temporary employees
 external recruitment
5-14
Cop
4-14
yrig
ht
Recruitment

15 4-15
Recruitment
Definition: Searching for & attracting
potential qualified applicants to apply for
jobs in the organization

Recruitment can occur within and/or outside


of the organization 
internal and external recruitment
16 4-16
Strategic Importance of
Recruitment
Employer Branding
organization's image based on benefits of being
employed by that organization
includes experiences a candidate goes through
during recruitment, including:
 experience at company’s website
 thanking candidates for applying
 ability of the interviewer to explain organization’s
values/culture
4-17
18 4-18
Recruiting Within the Organization:
Advantages
enhanced morale if competence is
rewarded
more commitment to firm’s goals
longer-term perspective on business
decisions
more accurate assessment of candidate’s
skills
19
less orientation required 4-19
Recruiting Within the Organization:
Disadvantages
discontent of unsuccessful candidates
time consuming to interview all
candidates if one is already preferred
employee dissatisfaction with inside
employee as new boss
possibility of “inbreeding” (lack of new
ideas)
20 4-20
Recruiting Within the Organization:
Methods

Job Human
Skills
Postings Resources
Inventories
Records

21 4-21
Recruiting Outside the Organization:
Advantages
larger, more diverse pool of qualified
candidates
acquisition of new skills, knowledge
ideas
elimination of rivalry for promotions
cost savings from hiring skilled
individuals with less need for training
22 4-22
Recruiting Outside the Organization:
Disadvantages
 lack of firsthand information about candidate’s
on-the-job performance
 candidate may not know organization or
industry  more orientation & training
needed
 May not be able to attract people due to
unfavourable salary or employer reputation
 Cost of recruiting (e.g., advertising costs) 4-23
23
Recruiting Outside the
Organization: Methods
Choice of method depends on type of
job to be filled:
online recruiting
social networking sites
print advertising
private employment agencies
walk-ins & write-ins
employee referrals
open houses & job fairs
etc.
24 4-24
Recruitment Process
External Environment
Internal Environment
Human Resource
Planning

Recruitment

Internal External
Sources Sources

Internal External
Methods Methods
Recruited
Individuals 4-25
Selection

26 4-26
Selection: Definition & Purpose
Choosing among individuals who have been
recruited to fill existing/projected job openings
A decision-making process – making a hiring
decision
Selection involves prediction!

If selection done effectively, then the


organization will have the right people with the
right skills in the right job at the right time!
27 4-27
28 4-28
Types of Tests Used in Selection
(must be relevant to job)

cognitive tests samples of work


 intelligence sampling
 emotional intelligence physical exams
 aptitude etc.
motor/physical
abilities
personality &
interests

29 4-29
Obtaining
Reliable & Valid Information
Reliability: the degree to which the
selection procedure (interview, test, etc.)
yields comparable/consistent data over time
 my oral test score in history class should be
about the same regardless of which teacher
conducts the test; if it is, then the oral test
questions are reliable
 my job interview score should be about the
same regardless of who interviews me; if it is,
30
then the job interview questions are reliable 4-30
Obtaining
Reliable & Valid Information

Validity: how accurate is the selection


procedure (interview, test, etc.) in measuring
a person’s abilities to effectively perform the
job

 does test actually predict job


performance? If yes, then the test is valid
31 4-31
Types of Selection Interviews

Degree of Structure
Unstructured (applicant asked conversational
questions & allowed to talk  low reliability & low
validity)
Structured (applicant asked pre-determined, job-
related questions  high reliability & high validity)
Semi-structured (combines both the above)

Content
Behavioural questions & situational questions
are the best
32 4-32
Behavioural Interviews

Common interview method

Assumption: Past work behaviours


are the best available predictor of
future work behaviours (in similar
work circumstances)

33 4-33
Behavioural Interviews:
Determining Competencies
Interview questions should be related to job

Job analysis  Job description & specification


 Competency-based behavioural questions

Example: Competencies for a salesperson


position would include: persuasion,
communication, & negotiation skills plus
customer focus 4-34
Behavioural Interviews:
Sample Question
 Required competency: Handling
difficult retail customers effectively.

 Tell me about a time when you


handled a customer who was
angry about the service he or she
received? What did you do? What
was the outcome?
35 4-35
Behavioural Interviews:
Rating the Response (Scoring Guide)
 Tell me about a time when you handled a customer
who was angry about the service he or she
received? What did you do?

 5 points – Listened carefully to the customer;


respectfully calmed customer down; resolved the
complaint within the store’s policies.
 3 points – Listened to customer; referred
customer to store manager.
 1 point – Told customer he/she was wrong to be
angry; refused to deal with customer as long as
4-36
customer was being rude.
Difference between situational &
behavioural interview questions
Situational question: ”What would you do
if you needed to persuade a fellow employee to
help you?” (Focuses on how someone would
perform in a hypothetical situation.)

Behavioural question: ”Describe a time


when you needed to persuade a fellow employee to
help you. What did you do?” (Focuses on actual
past work experiences.)
37 4-37
Supervisory Interview/
Realistic Job Preview
supervisor can answer job-specific
questions
supervisor is best qualified to assess job
knowledge & skills
supervisor can assess fit with current
team members
supervisor must feel comfortable with
new hire (be careful here!)
38 4-38
Benefits of Realistic Job Previews

Improved Reduced Enhanced


employee voluntary communication
job satisfaction turnover

39 4-39
Hiring Decision
Combine information from all of the selection
techniques used

Then make a subjective evaluation of all


information about each candidate to make overall
judgment; OR

The statistical strategy approach (combining the


information according to a formula) is more valid
than subjective evaluation

Immediate supervisor often makes final


4-40
hiring decision
40
Appendix (for job seekers)
Many organizations use behavioural
questions in selection interviews
Job candidates should prepare for interviews
by anticipating probable behavioural
questions (based on job tasks/duties and the
required KSA’s)
Present answers to interviewers’ behavioural
questions by using the S-T-A-R technique to
structure your answers
41
 
(see next slide)4-41
42 4-42
HRMG 2150
BCIT
April 2021

Performance
Management

1
6-1
Managers’ Concerns about
Performance Management
“Who has time for more paper
pushing?”
“I don’t like confrontation.”
“My employees don’t have to be
told what their duties are.”
“A little uncertainty will keep
employees on their toes.”
http://www.youtube.com/watch?v=m25LrJAH1D8
https://www.youtube.com/watch?v=bts28rz0lJ0

2
6-2
Performance Management = Filling
Out Forms?

Performance management
is much more than
the paperwork exercise
that many managers &
employees dread

3
6-3
W. Edward Deming

4
6-4
Deming

5
6-5
6
6-6
Performance Management:
Definition

All activities related to improving employee


performance, productivity, & effectiveness
Includes goal setting, pay for performance,
training, career management, & employee
discipline
Performance appraisals are a major aspect
of performance mngt. in many firms; but
appraisals are only one part of performance
mngt.
7
6-7
THE WHY: Performance Mngt.
& Business Strategy
Key goal of performance management:

Ensure the “right things” are being


measured because what gets
measured gets done.

8
6-8
High-Volume Production or Safety?

9
6-9
Why Appraise Performance?

1. Provide information for promotion &


salary decisions
2. Provide opportunity for reinforcement
and/or corrective action regarding
performance
3. Provide opportunity to review career
plans

10
6-10
Performance Management Process contains 5 steps:

1. define performance expectations

2. provide ongoing feedback & coaching

3. conduct performance appraisal & evaluation


discussions (many firms do this every 3, 6, or 12
months)

4. determine performance rewards & consequences, such


as promotions, salary increases, bonuses

5. conduct development & career opportunities


discussions

Cop
6-11
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Step 1:
Define Performance Expectations

Job description often insufficient to


clarify performance expectations

Measurable standards should be


developed for each position
e.g., Have 2 or fewer customer complaints per
year

12
6-12
Step 2:
Provide Ongoing Coaching &
Feedback
Both employee & manager need to
frequently discuss progress toward goals
(throughout the performance
management process) ...

 … not just at performance appraisal time

6-13
Step 3:
Performance Appraisal &
Evaluation Discussion
The appraisal itself is usually conducted with a
predetermined, formal appraisal method such as:
 graphic rating scale
 critical incident method
 behaviourally anchored rating scales (BARS)
 management by objectives (MBO)

Cop
6-14
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Step 4:
Determine Performance Rewards &
Consequences
Two of the most important aspects used to
determine the appropriate reward/consequence
are:
 achievement of goals
 how the employee meets the defined
standards

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6-15
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Step 5:
Career Development Discussion

Manager & employee discuss opportunities for


career development to improve the
employee’s knowledge, skills, & abilities

Needs of the firm should be balanced with the


employee’s preferences

Cop
6-16
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Steps 4 and 5: Formal Discussion

Type of Appraisal
Discussion: Objective of Discussion:
1. Satisfactory performance; 1. Make development plans
promotable employee 

2. Satisfactory performance; 2. Maintain current


but employee is not performance
promotable 

3. Unsatisfactory
performance;
but correctable  3. Correct performance

17
6-17
Deming again!

18
6-18
Performance Appraisal Problems
Validity & Reliability (same problems as in
selection/hiring procedures)

Rating scale problems


 unclear performance standards
 halo effect
 central tendency
 leniency or strictness bias
 recency effect
 similar-to-me bias
 appraisal bias 6-19
Cop
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Some Rating Scale Problems
Be aware of these:

Central Tendency

Strictness Bias

Leniency Bias

Recency Effect

Halo Effect
20
6-20
Recency Effect

21
6-21
More Rating Scale Problems
Unclear Appraisal bias:
performance e.g., using factors not
standards: related to work
e.g., “good quality performance such as
work” age, race, sex, etc. (or
factors are relevant,
but for another job)

Similar-to-me bias:
higher ratings for
persons like the rater

22
6-22
Performance Appraisal Case
Pavla Lupine is a manager about to
conduct performance appraisals of
the entry-level lab technicians in
her department for the six-month period
ending April 30th.

She is using a graphic rating scale that


contains the following appraisal criteria:
23
6-23
Rating /
Excellent Good Average Fair Poor
5 4 3 2 1
Criteria

Leadership

Openness

Quality
of work

Speed
of work

Dependability

Initiative 6-24
24
Lupine is a Theory X-style manager, thinks that
younger employees (“those lazy kids”) do as little
work as possible, and is very hard to please.
There are ten employees in her department – all
but one are under 30 years of age. The tenth
employee (who is over 30) is John Abbott who,
like Lupine herself, has a B.A. in history from SFU
in addition to his technical credentials.
Despite her reservations about younger
employees, there is one that Lupine thinks highly
of–Clark Kent. Kent is always well-dressed, polite,
and speaks five languages.
25
6-25
Case Questions
What are potential problems that may
occur in the performance appraisals
that Lupine will conduct?

What can be done to prevent the


problems that Lupine is likely to
encounter?

26
6-26
Avoiding Appraisal Problems

Ensure rater Choose Train


is aware the right supervisors
of appraisal appraisal to eliminate
problems tool rating errors

Use multiple raters

27
6-27
Performance Appraisal
Methods (Tools)

28
6-28
Performance Appraisal Methods

Trait methods

Results methods

Behavioural methods

29
6-29
Performance Appraisal Methods

Trait methods

 Does employee have personal


characteristics important to
the job? (extroversion; assertiveness;
creativity; agreeableness; openness;
stability; etc.)

30
6-30
Trait Methods
Might be easy to develop & use
Might be related to job success
____________________________________
Might be biased & subjective
Might be hard to measure
Traits are difficult to develop in
employees    therefore,
(perhaps) hire for these
but don’t use for performance measurement
31
6-31
Performance Appraisal Methods
Results methods

 Measurable outcomes such as: Productivity


measures (sales targets; production
targets; profit targets)

 Performance objectives reached –


Management by Objectives (MBO) – were
specific goals reached?

 Results methods: results more important than


methods/activities used to reach results
32
6-32
Results Methods
Productivity Measures
 e.g., Sales volume ($$$)
 e.g., Number of units produced without defects

Performance Objectives
 MBO: Goals set jointly by manager &
employee and linked to business objectives
 Recall goal setting theory (from OB)
 See appendix

33
6-33
Results Methods
 Objective
 Linked to job goals & business goals
 Often accepted by employees
 Useful for pay/bonus decisions
___________________________________________
 Sometimes unclear goals are set
 Disputes may occur over how high goals should be
 Encourages short term (1 year) focus
 External factors (the S in the MARS Model) may distort
results

34
6-34
From OB: M.A.R.S. Model

Role
Individual
Perceptions
Differences:
Values Motivation
Individual
Personality Behaviours
Perceptions & Results
Ability
Emotions Situational
Attitudes Factors

Stress

6-35
Results Method:
Productivity Measure Example
A car dealership has a monthly sales
quota (e.g., each salesperson is
expected to sell at least 30 cars per
month).

What are the advantages and


disadvantages of using a sales quota to
appraise employee performance?
36
6-36
Performance Appraisal Methods

Behavioural methods

 Those observable behaviours important


to job success

Observable behaviors are


actions performed by a
person that can be seen or
heard, and measured
37
6-37
Behavioural Methods

Observable, measurable
Useful feedback
Behaviour can be changed
Consistent ratings from different raters
Less biased than trait methods
___________________________________
However, might be costly & time-
consuming to develop & use
38
6-38
Behavioural Methods
Practical! Why?
Provide specific feedback to employee
Guide changes in employee's behaviour

KiSS:
Keep doing behaviour X (arriving on time)
Start behaviour Y (taking detailed notes)
Stop behaviour Z (interrupting others)
39
6-39
Performance Appraisal Methods:
Graphic Rating Scale Method
Behaviour:
Arrive on time for team meetings
____ Outstanding
____ Very Good
____ Good

____ Improvement Needed

____ Unsatisfactory
40
____ Not Rated 6-40
Performance Appraisal Methods:
Critical Incident Method
Keep a record of:
 uncommonly good and
 undesirable
work-related behaviours

Review these with employee at


predetermined times
41
6-41
42
6-42
Performance Appraisal Methods
Graphic Rating Scale Method
+
Critical Incident Method
=
Behaviourally Anchored Rating Scale
(BARS) Method

43
6-43
Behaviourally Anchored Rating Scale (BARS)
for Service-based Industry

Behaviour: Communications – demonstrated ability of person to exchange


information in all forms.

High 5 Consistently demonstrates exceptional verbal and


4 written skills.
Frequently demonstrates exceptional verbal and
written skills.
Average 3 Facilitates the clear, concise communication
of information in timely fashion.
Inconsistent ability to communicate effectively or in
2 timely manner.
Low 1 Receives and imparts information inaccurately.

44
6-44
Using BARS to
Conduct Performance
Appraisal: Superman

45
6-45
BARS for Superhero Industry
Behaviour: Time taken to repair damage made
to walls while saving victims.
High 5
5: Saves victim without damaging wall.
4
4: Breaks through wall; saves victim; repairs
damage within 1 hour.
Average 3
3: Breaks through wall; saves victim; repairs
damage within 1 day.
2
Low 1 2: Breaks through wall; saves victim; repairs
damage within 1 week.
1: Breaks through wall; saves victim; doesn’t repair
damage.

46
6-46
This slide again!
Performance Management Process contains 5 steps:

1. define performance expectations

2. provide ongoing feedback & coaching

3. conduct performance appraisal & evaluation


discussions (many firms do this every 3, 6, or 12
months)

4. determine performance rewards & consequences, such


as promotions, salary increases, bonuses

5. conduct development & career opportunities


discussions
Cop
6-47
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Improving Performance

48
6-48
Performance Management has both
FORMAL & INFORMAL parts.
http://www.youtube.com/watch?v=6pxx9HMe_qk

 Formal part: Appraisals


 Informal part: ongoing
49 feedback & coaching (as needed) 6-49
Traditional performance appraisals
have been criticized recently …

50
6-50
"Performance Management Revolution"
"The Problem
 By emphasizing individual accountability for past
results, traditional appraisals give short shrift to improving
current performance and developing talent for the
future. That can hinder long-term competitiveness.
The Solution
 "To better support employee
development, many organizations are dropping
or radically changing their annual review systems
in favor of giving people less formal,
more frequent feedback that follows the natural cycle of
work.”
 (Capelli & Tavis in HBR, Oct. 2016)
6-51
51
Coaching = Making small corrections
“Aim for change, not blame”
1. State why the
behaviour needs to
change.
2. Ask a question that
points toward a
solution.
 “What can you do to keep this
from happening again?”
 “Is there something I can do to
help?”
 “How can we work this out?”
52
6-52
Managers! Remember the system!
The “S” in the MARS Model

53
6-53
APPENDIX
MBO (Management by
objectives)

Who should do the appraising?

54
6-54
MBO
Management by objectives

 A "results method" of peformance


appraisal
 MBO: Goals set jointly by manager
& employee and linked to business
objectives
 Based on goal setting theory (from OB)

55
6-55
Performance Appraisal Methods:
Management by Objectives (MBO)

1. Set organization’s goals


2. Set department’s goals
3. Discuss department’s goals
4. Set individual goals: linked to dept. goals
5. Performance appraisals: measure actual
results & compare to individual goals
6. Provide feedback: progress on reaching
individual goals
56
6-56
Performance Appraisal Methods:
Management by Objectives (MBO)

Problems with MBO:


1. Setting unclear, unmeasurable goals
(e.g., “ I will do a better job of training new
employees”)
2. Time consuming
3. Tug of war between manager &
employee
(e.g., difficult goals versus easy goals)
57
6-57
Effective Goal Setting/MBO

Specific

Relevant

Challenging
Task Task
Effort Performance
Commitment

Participation

Feedback

58
6-58
Who Should Do the Appraising?

 The supervisor (traditional approach)

59
6-59
Alternatives
Supervisor (traditional approach)

Employee (self-review)

Subordinates; peers; team members;


customers

Combining all 
360-degree appraisals
60
6-60
61
6-61
360-degree performance appraisals

62
6-62
Need to Know

All "Need to Know" slides will be


provided in the last lecture of this term

63
6-63
HRMG 2150
BCIT
April 2021

Compensation:
Strategic Pay Plans

1 7-1
Strategic Importance of
Total Employment Rewards
Total Employment Rewards:
Integrated package of all rewards (monetary and
non-monetary, extrinsic and intrinsic) gained by
employees from their employment

Aligned with competitive strategy


rewards should produce employee behaviours
the firm needs to achieve its competitive
strategy
2 7-2
Competitive Strategy

3 7-3
5 Components of Total Rewards

1. Compensation:
(direct payments) wages, commissions, bonuses
2. Benefits:
(indirect payments) health insurance, vacations
3. Work-life programs:
flexible work scheduling, childcare
4. Performance & recognition:
pay-for-performance & recognition programs
5. Development & career opportunities:
career enhancement (tuition assistance, mentoring,
succession planning)

4 7-4
5 7-5
4 Basic Considerations in
Determining Pay Rates
1. Legal:
 Employment & labour standards
 Human Rights & Pay Equity
 Canada Pension Plan
 Workers’ Compensation
 Employment Insurance
2. Union influences
3. Compensation policies of the
company: Competitive strategy? Leader or follower
in pay rates?
4. Equity: internal equity & external equity
6 7-6
Establishing Pay Rates
Stage 1: Conduct job evaluation to
determine worth of each job (for internal equity);
Group jobs of similar worth into pay grades

Stage 2: Conduct salary survey (for external


equity); What are others paying for comparable
jobs

Stage 3: Combine job evaluation (internal) &


salary survey (external) information to determine
pay for jobs
7 7-7
Preparation for Job Evaluation

1. Identify the need for job evaluation: Are


employees/managers dissatisfied? Is there
inequity in current pay structure?

2. Gain employee cooperation

3. Choose a job evaluation committee:


Ensures diverse perspectives
Enhances employee acceptance
Conducts actual job evaluations

8 7-8
What is the job worth?
(Job Evaluation)

9 7-9
Stage 1: Job Evaluation
Job Evaluation:
 Systematic comparison of jobs within a firm to
determine their relative worth

Benchmark Job:
 Job commonly found in many organizations
 Reference point around which other jobs are arranged
in order of worth

Compensable Factor:
 fundamental compensable aspect of a job
 e.g., skill, working conditions, effort, responsibility
 SWEaR

10 7-10
Job Evaluation Methods

Classification/grading method

Point method

11 7-11
Point Method Overview
Identify compensable factors, e.g., skill,
working conditions, effort, responsibility

Determine the degree to which each


factor is present in each job
e.g., Skill: high degree of skill
medium degree of skill
low degree of skill

12 7-12
Point Method Steps

1. Job analysis --> job


descriptions & specifications --> what are
the job’s compensable factors (skill,
working conditions, effort, responsibility)
2. Determine factor weights and degrees
3. Assign points for each degree of each sub-
factor.
4. Then evaluate the job (using the job evaluation
manual developed from steps 1-3)

Cop 7-13
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Example of Point Method
Compensable Factors
 Skill (weight: 30%)
 Effort (30%)
 Responsibility (30%)
 Working conditions (10%)
_________________________________________
Each factor can be divided into sub-factors
(an example)
responsibility for staff (25%)
responsibility for budget (5%)

14 7-14
Example of Point Method
Compensable Factor
 Formal education (one part of “Skill” factor)

Degree & associated points


 High school 50 points
 2 years post-secondary 100 points
 4 years post-secondary 150 points
 Post-graduate degree 200 points

15 7-15
11-16
Cop 7-16
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Doing a job evaluation for the job of
“administrative assistant”
 Skill
 Education 100
 Experience 75
 Effort
 Physical 25
 Mental 100
 Responsibility
 Supervision 50
 Planning 100
 Working conditions
 Physical Environ. 20
 Travel 20
Total 490 /1000 total max. points
17 7-17
Is this “job evaluation?”

No, this is
performance
appraisal.

“Job
evaluation”
measures the
value of the
job, not the
performance
of the
jobholder.

18 7-18
Stage 2: Conduct a Wage/
Salary Survey
Wage/Salary Survey:
survey aimed at determining prevailing
wage rates
salary survey provides specific wage rates
for comparable jobs

Cop 7-19
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Conducting salary surveys:
Methods of conducting them

Communicate informally with other


employers
Conduct formal questionnaire-type
surveys with other employers
Review internet & newspaper job ads
Survey employment agencies
Buy commercial surveys

20 7-20
How employers use salary
surveys
1. Determine pay rates for benchmark jobs
(that serve as reference points for other jobs)
2. Many jobs are paid solely based on
marketplace (rather than relative to
benchmark jobs)
3. Surveys also collect data on employee
benefits, work/life programs, recognition
programs, etc.

21 7-21
Stage 3: Combine the Job Evaluation
& Salary Survey Information to
Determine Pay for Jobs

Wage Curve (Line):


a graph of the relationship between the
value of the job & the average wage paid
for the job
Pay Ranges:
series of steps or levels within a pay
grade (usually based on years of service)
Cop 7-22
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Determining Pay for Pay Grades
Using Wage Curve

Find average pay for each pay grade


Plot pay rates for each pay grade
Fit a wage line through the points
Determine pay for jobs. Some wage
rates may be out of line (above or below
wage line).
Deal with wage rates that fall above or
below wage line
23 7-23
7-24
Correct out of line wage rates

Correct out of line wage rates:


If a job’s pay is well above (or below)
wage line, then pay is too high (or low)
Pay freeze may be needed for pay
above wage line
Pay increase may be needed for pay
below wage line

25 7-25
Stage 3: Combine the Job Evaluation &
Salary Survey Information
to Determine Pay for Jobs

Broadbanding
reducing the number of salary grades & ranges
into just a few wide levels or “bands,” each of
which then contains a relatively wide range of
jobs & salary levels

Cop 7-26
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Broadbanding

11-27
Cop 7-27
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Broadbanding

Band 4

Expert
Pay Band 3
Specialist
Band 2

Contributor
Band 1
Trainee

Job Evaluation Points

28 7-28
Pay For Knowledge

• Pay for knowledge is when employees


are paid based on what they are capable
of doing rather than for the job they
currently hold

Examples:
• Competency-based pay (for managerial
& professional employees)
• Skill-based pay (for manufacturing
employees)
Cop 7-29
yrig
ht
Job Evaluation & Pay Equity

Job evaluation: systematic process to


determine relative worth of jobs in order to
maintain internal equity

Pay equity is based on the principle of “equal pay


for work of equal value” regardless of gender
(even if jobs are dissimilar – e.g., janitor/secretary)
___________________________________________

Both concepts examine the value of work based


on the factors of skill, effort, responsibility, &
working conditions
30 7-30
Pay Equity

Pay equity intended to eliminate systemic


pay discrimination by providing equal pay to:
 male-dominated job classes
 female-dominated job classes
that are of equal value (to the employer)

31 7-31
Pay Equity Results

Pay equity has narrowed the female-male


pay gap, but not eliminated it entirely

Much of the remaining pay gap is likely due


to systemic discrimination

A part of the gap is due to the fact that


women are less likely to negotiate pay with
their employer
Cop 7-32
yrig
ht
33 7-33
Pay equity in the news

Some famous pay equity cases


(filed under the Canadian Human
Rights Code for federally-regulated
employers) involved:

 Air Canada – airline


 Bell Canada – telecom company
 Canada Post – post office

34 7-34
Relationship between money,
motivation, & performance
Money attracts some people to a company,
but it won’t keep them there

Money only “motivates” if employees see a


strong link between performance & rewards
(from OB: Expectancy Theory)

Before you can reward high performance,


you must have a valid & reliable way to
measure performance
35 7-35
From OB: Expectancy Theory:
Effort  Performance  Rewards (valued)

36 7-36
Pay for Performance

Incentive Plans:
 Individual bonus
 Team bonus
 Profit-sharing
 Employee stock ownership

Purpose: to increase organizational success by


rewarding excellent performance & results

37 7-37
Employee Benefits
Indirect financial payments on behalf of
employees to improve quality of their
personal & work lives

Can be voluntary, or mandatory (required


by law)

Significant cost to the employer but also


significant value to the employee

38 7-38
Costs of Employee Benefits

Some employers spend a significant


proportion of their payroll costs on pensions,
group health benefits, paid time off, & other
benefits

Costs of providing benefits is increasing;


and there is pressure to cut benefits or
share costs with employees

39 7-39
Benefits Required by Law

Canada Pension Plan (CPP)


Employment insurance (EI)
Workers’ compensation
Paid vacations & holidays
Unpaid leaves of absence (maternity, etc.)

40 7-40
Voluntary
Employer-Sponsored Benefits

A voluntary choice by employers


Examples:
 Private pension plans
 Health, disability, & life insurance
 Employee Assistance Programs (EAP)
 Childcare & eldercare
 Other leaves of absence
 Paid tuition
 Sick days

41 7-41
APPENDIX
Salary negotiations from the job
applicant’s perspective

Many useful info sources in books and


online, including “What Color Is Your
Parachute?” book

42 7-42
Before a prospective employer asks:
“What salary do you expect?”
Research the worth of the job
 Salary survey information
 Information interviews
 The employer’s policies

Determine your labour market value


 Special skills or experience / Value of your education
 Your achievements

Establish salary range based on research


Establish your position in the range based on
your own market value
43 7-43
Salary Negotiations
Don’t discuss salary before the job is
offered to you

Do give a counteroffer to a low offer


from employer  Negotiate!

Compensation is more than just salary


(Base pay can be supplemented – benefits,
bonuses, pay for education, etc. Remember total
rewards)

44 7-44
Need to Know

The “Need to Know” topics for each


lecture will be provided at the last
lecture of this term

45 7-45
HRMG 2150
May 2021

LEGAL ASPECTS OF
HUMAN RESOURCE MANAGEMENT

http://www.youtube.com/watch?v=KhwLe4gj9Xg

1 2-1
Canada’s Employment Law Framework

Acts of Federal Parliament


& Provincial Legislatures
 e.g., Human Rights Codes
Regulations (for legislated Acts)
 legally binding rules to aid in the interpretation
of acts (such as the Human Rights Code)
Common law
 judicial precedents resulting from court
decisions
Contract law
 union-management collective agreements &
individual employment contracts
2 2-2
Multiple Legal Jurisdictions for
Employment Legislation

Provincial laws
govern approx.
90% of employees

Federal laws
govern approx.
10% of employees
3 2-3
Legal Framework
For HRM in Canada
Federal jurisdiction includes:
 Federal government depts., agencies, etc.
 Federally-regulated industries (banks, telecom,
transportation, etc.)
 Canada Labour Code & Canada Human Rights Act

Provincial jurisdiction
(see next slide)

4 2-4
Provincial Employment
Legislation (BC)

Employment Standards Act


Labour Relations Code
Workers’ Compensation Act
Human Rights Code

5 2-5
6 2-6
Employment Standards Act
Purpose: Establishes minimum standards for
most employees

Includes:
 Hours of work & overtime
 Minimum wages
 Statutory holidays & vacation pay
 Termination http://www.labour.gov.bc.ca/esb/self-help/self_help_kit.pdf
Administered by Employment Standards
Branch (of BC Govt.)
7 2-7
8 2-8
Labour Relations Code
Purpose: Regulates relationship between employers
& employees represented by unions

Includes: Rights of employers, unions, & employees


related to unionization
 Acquiring bargaining rights
 Unfair labour practices
 Strikes, lockouts, & picketing

Administered by Labour Relations Board


9 2-9
10 2-10
Workers’ Compensation Act
 Purpose:
 Establishes framework for workplace health & safety &
mechanism to compensate employees for work-related
accidents & injuries

 Includes:
 Compensation for injuries
 Assessments of employers (to fund worker compensation)
 Accident reporting
 Health & safety regulations
 Rehabilitation & return to work

Administered by WorkSafeBC
11 2-11
WorkSafeBC in the News

Anti-bullying and
harassment
regulations

COVID-19 safety
plans

12 2-12
13 2-13
“Hiring salespeople for long term
careers with XYZ Company.
Successful candidates will receive
extensive training. Young women
likely to become pregnant and other
14
unreliable persons need not apply.”
2-14
Human Rights Code
Purpose: To protect individuals from discrimination
in employment

Includes:
 Grounds on which you may not discriminate (sex,
race, religion, age 19 & older, disability, family
status, marital status, etc.)
 Harassment

Administered by the Human Rights Tribunal


15 2-15
Types of Discrimination Prohibited

Unintentional
Intentional (Systemic)

• Direct • Apparently neutral


• Differential/Unequal policies have adverse
Treatment impact on protected
groups (e.g., minimum
height or weight require-
ment)

16 2-16
17 2-17
Help Wanted
“Warehouse hiring stock
clerks. Must be able to lift 50
pound boxes. Applicants must weigh
at least 200 pounds.”

18 2-18
Reasonable Accommodation
Requirement for employers to adjust employment
policies & practices to prevent discrimination

Includes: redesigning job duties, adjusting work


schedules, modifying work facilities, etc.

Must be done up to the point of “undue hardship”

Examples: Big firm (with more $) required to modify facilities


for use by disabled employees, but maybe not small firm

Employer must alter work schedules to accommodate


employees who strictly observe religious holidays

. 19 2-19
Bona Fide Occupational
Requirement (BFOR)
 Justifiable discrimination, based on business
necessity, e.g., safe and efficient operation of the
organization

 Employer can establish qualifications based on


intrinsically required job tasks that would otherwise
be discriminatory

 Job analysis helps to support claims of BFOR

 Examples: Catholic schools allowed to hire as teachers


only those who are Catholics;
Bus company allowed to refuse to hire blind
20 2-20
persons as bus drivers
Human Rights Code:
Key Concepts
Discrimination
Reasonable Accommodation
Undue Hardship
Bona Fide Occupational Requirement
(BFOR)

Harassment (based on discrimination


21
grounds covered by Human Rights Code) 2-21
Harassment
Behaviour that demeans, humiliates, or
embarrasses a person & that a “reasonable person”
should have known would be unwelcome
Creation of hostile environment:
 Includes: physical contact, comments, name-calling, jokes,
posters, cartoons, etc.

Employer is responsible for developing & enforcing


policies/procedures to prevent harassment & deal with
any complaints of harassment (sexual, racial, religious,
etc.)
22 2-22
Workplace Fairness

23 2-23
Fair and Just Disciplinary Process
Fairness in Discipline  3 Foundations

1. Clear rules 2. System of 3. Appeals


& regulations progressive process
disciplinary
penalties

24 9-24
Fair and Just Disciplinary Process
Foundations:
1. Rules and Regulations
 clear expectations of acceptable
behaviour
2. Progressive Discipline
 oral warning; written warning;
suspension without pay (only in unionized
workplaces); termination
3. Appeals Process
 allow employee to present case

9-25
Dismissal for Just Cause
 Dismissal
 involuntary termination of employment
 Dismissal for just cause
 termination based on poor behaviour
 no severance or additional notice period
required

 Insubordination
 disregard or disobedience of managerial
authority
 often provides grounds for just cause 9-26
Employee-Employer Relationship
 Employment contract
 formal agreement between employer &
employee
 employee cannot be prematurely dismissed
without just cause if a term (period of time)
is specified
 termination is allowed if there is just cause

 Implied contract
 indefinite period of time; may be terminated
by either party with reasonable notice
 more common
9-27
Managing
Dismissals: Employment Contract

A formal written employment contract, or an


implied contract

Dismissal requires reasonable notice


(or severance pay in lieu of notice)

However, dismissal for just cause does not


require notice

28 9-28
Managing Dismissals:
Just Cause
Just
cause An
employee does something seriously wrong
enough for dismissal to occur

Employer has just cause to dismiss


employee in cases
of insubordination, dishonesty,
incompetence, theft, persistently breaking
important work rules, etc.

Burden of proof is on the employer to show


just cause 9-29
29
Providing Reasonable Notice
 Required when dismissing an employee if
just cause does not exist

 Considerations:
 rule of thumb is 3-4 weeks per year of
service
 failure to provide notice may result in
wrongful dismissal

9-30
How much notice
(or pay in lieu of notice)?
(BC Employment Standards Act)

If you have been employed for at least:

3 months in a row – you get 1 week of notice or


pay
12 months in a row – you get 2 weeks notice or
pay
3 years in a row – you get 3 weeks notice or pay,
plus 1 week’s notice or pay for each additional
year of employment to a maximum of 8 weeks
 http://www.labour.gov.bc.ca/esb/facshts/termination.htm
31 9-31
Managing Dismissals:
Constructive Dismissal
When the employer makes unilateral
changes in the employment contract
unacceptable to employee (even though no
formal dismissal has occurred)
Examples:
 Demotion
 Forced early retirement
 Forced resignation
 Forced transfer
 Reduction in pay/benefits
 Changes in job duties/responsibilities
32 9-32
Unionized Workplaces
If the employees in a workplace are represented
by a union, some legal aspects of the employer-
employee relationship are different than in the
non-union workplace
e.g., the union negotiates wages and other terms
of work on behalf of the employees—there are no
individual employment contracts
Alleged violations of the employer-union collective
agreement are handled by a formal grievance
process
 BMGT/HRMG 2nd year—Labour Relations course will cover
the unionized workplace in detail
33 9-33
APPENDIX
Short cases based on the BC Human
Rights Code

34 2-34
Case 1
A manager tells an employee (who is 40 years
old): “Don’t expect to get as much training as
the younger employees. We have found that
it’s just not worth investing training dollars in
older workers.”

Is this illegal discrimination? Yes (based on


age).

35 2-35
Case 2
An advertisement for a job opening states:
“Hiring marketers to create advertising
campaigns aimed at young people aged 18-
25. Looking for people to fill this position who
are very familiar with the latest lifestyle and
music trends. Applicants must be under 30
years of age.”

What, if anything, is wrong with this


advertisement from an HR
perspective? Wrongly assumes only persons
under 30 are qualified. Is this illegal
discrimination? Yes (based on age).
36 2-36
Case 3
An advertisement for a job opening
states: “Warehouse hiring stock clerks. Must
be able to lift 50 pound boxes. Applicants must
be at least 6’ tall and weigh at least 200
pounds.”

What, if anything, is wrong with


this advertisement from an HR
perspective? Wrongly assumes only persons of
a certain height and height can lift 50 pound
boxes. Is this illegal discrimination? Yes (an
example of systemic discrimination based on
race and sex – even if it is unintentional).
37 2-37
Case 4
An advertisement for a job opening states:
“Wanted: An actor to play Winston Churchill
for the BC Provincial Theatre. Must be white,
male, middle-aged or older, and born in
England.”

What, if anything, is wrong with this


advertisement from a legal perspective? The
"born in England" requirement is discrimination
based on "place of origin" grounds. A case
could likely be made that the other
three requirements are bone fide occupational
38
requirements (BFOR's) for this acting job. 2-38
Need to Know Topics
The last lecture will include the Need
to Know topics for all HRMG 2150
lectures

Final exam information will also be


provided in the last lecture

39 2-39

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