Human Resource Management

Human Resource Management

The integration of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective way

Strategic Human Resource Management (Exhibit 9-1)

HR planning Recruitment Selection Organizational and work design Training and development Performance review Compensation Labour relations

Strategic Importance of HRM

Can establish an organizations sustainable competitive advantage
o

Shortfall of 500 million workers

Requires fundamental change in how managers think about employees

o

Partners and Investments

Need to consider outsourcing certain HR transactions

o

But then what does the HR dept. do?

Legal Environment of HRM

Federal and provincial governments influenced HRM through laws and regulations
o

Huge increase in this since 1960s

Employers must ensure that managers understand their obligations and comply Four primary areas of employment legislation
o

Lets look at the Main One

Human Rights Legislation

Has the most impact on HR decisions Protects individuals and groups from discrimination Protects employees from harassment-both workplace and sexual Consider the time, (which translates to money), that managers spend on HRL

Other Employment Legislation

Employment standards
o

Basic or minimum employment conditions in an organization

Minimum wage, hours of work, OT pay

Health and safety

o o o o

Healthy and Safe work Environment On the Job Injuries Relationship between union and employer Not all organizations are covered by Labour Relations

Labour relations

Global Laws and HRM

Laws and regulations are not the same throughout the world
o

Working Conditions, Pay, H&S

Important for manage to know the legislation in the country in which they are working

Human Resource Planning

Assessing Current Human Resources Assessing Future Human Resource Needs

Developing a Program to Meet Needs

HR Planning
We have found the gap, how do we fill this void? How much time should we spend on identifying the right person? Lets follow the trail of what it takes to hire a new team member in an oganization.

Recruitment
Process of locating, identifying, and attracting capable candidates Can be for current or future needs Critical activity for some corporations. What sources do we use for recruitment

Internal Searches

School Placement

Employee Referrals

Employee Leasing

Recruitment Sources

Temp Services

Employment Agencies

Advertisements

Selection
Prediction exercise
o

Thus, Not Perfect

Decision-making exercise Purpose is to hire the person(s) best able to meet the needs of the organization Tied Back to Strategy

Selection
Are there ways that managers can ensure that the decision achieves the desired outcome? (time and time again)
o

Yes, use HR Tools which are Reliable & Valid

Reliability
Degree to which selection tool measures the same thing consistently Can be a test or an interview Same questions need to be asked.

Validity
Relationship between selection tool and appropriate criterion What a selection technique measures and how well it measures Must be proven and relevant to job
o

Eg: keyboarding skills for data entry clerk.

The Effectiveness of Interviews

Prior knowledge about an applicant Attitude of the interviewer The order of the interview Negative information The first five minutes The content of the interview The validity of the interview Structured versus unstructured interviews

Common Types of Interviews

Non-directive
o o o o o o

Most Latitude Questions are open ended This can get you into trouble As about a situation you have experienced.

Behavioural Description
Structured
Panel Situational
Why is a Situational Analysis Good.

Interview Questions
Lets come up with some interview questions!

Written Tests
Intelligence General aptitude Ability Interest

Reference Checks
Potential employer seeks to verify information Important to have well-constructed questions Can you Outsource This? How far can you dig?

Your Hired
Now What? Most Important Stage

Orientation
Process to introduce new employees to organization Familiarization to Organization and its Values Improved new employee to FamiliarizeSuccess On the Jobjob and Minimizes Turnover work unit Help employee to understand values, beliefs, and acceptable behaviours

Training and Development

Learning experience that seeks relatively permanent change Involves changing skills, knowledge, attitudes or behaviours Training tends to be done for current job Develop usually means acquiring skills for future work

Employee Training
What deficiencies, if any, does job holder have in terms of skills, knowledge, abilities, and behaviours?
Is there a need for training? What are the strategic goals of the organization?

What behaviours are necessary?

What tasks must be completed to achieve goals?

Training
Can you Train Someone out of a job?

Performance Management
Integration of management practices that includes a formal review of employee performance
o

How often should this take place?

Includes establishing performance standards and reviewing the performance Means to ensure organizational goals are being met

Performance Review Methods

Written Essay Critical Incidents

Graphic Rating Scales

BARS

Multiperson

MBO

360-Degree Review

If Performance Falls Short

Train Discipline Coach Out the Door

Compensation Management
Process of determining cost-effective pay structure Designed to attract and retain Provide an incentive to work hard Structured to ensure that pay levels are perceived as fair

Factors That Influence Compensation

Employees tenure and performance Size of company Company profitability Kind of job performed

Geographical location

Level of Compensati on and Benefits

Kind of business

Management philosophy

Labour- or capital-intensive

Unionization

Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and Robin Stuart-Kotze, page 274. Copyright 2003. Reprinted by permission of Pearson Education Canada Inc.

FOM 9.29

Robbins et al., Fundamentals of Management, 4th Canadian Edition 2005 Pearson Education Canada, Inc.

Employee Benefits
Indirect financial rewards Designed to enrich employees lives Vary widely in scope Costs range from 30% to 40% of payroll costs

Health and Safety

Employers are responsible for ensuring a healthy and safe work environment Employees are required for follow instructions and any legal requirements Workplace violence is a growing concern

Labour Relations
Relationship between union and employer Union functions as the voice of employees Collective bargaining is a process to negotiate terms and conditions of employment Bargaining produces a written document called a collective agreement