8/14/2019 13-Managing Human Resource Systems

1/44

2004 by Nelson, a division of Thomson Canada Limited1

Chapter 13

Managing Human

Resource Systems

8/14/2019 13-Managing Human Resource Systems

2/44

2004 by Nelson, a division of Thomson Canada Limited2

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?

8/14/2019 13-Managing Human Resource Systems

3/44

2004 by Nelson, a division of Thomson Canada Limited3

Learning Objectives:Determining Human Resource

Needs

After reading the next twosections, you should be able to:

1. describe the basic steps involvedin human resource planning

2. explain how different employmentlaws affect human resourcepractice

8/14/2019 13-Managing Human Resource Systems

4/44

2004 by Nelson, a division of Thomson Canada Limited4

The Human Resource

Management ProcessDetermining human resource needs

human resource planning

Attracting qualified employees recruiting selecting

Developing qualified employees training

performance appraisalKeeping qualified employees

compensation employee separation

Adapted from Exhibit 13.1

8/14/2019 13-Managing Human Resource Systems

5/44

2004 by Nelson, a division of Thomson Canada Limited 5

Human Resource

Planning Forecasting Demand and Supply

Human Resource InformationSystems

8/14/2019 13-Managing Human Resource Systems

6/44

2004 by Nelson, a division of Thomson Canada Limited 6

Forecasting Demand

and SupplyWorkforce

forecasts

internal external

Forecastingmethods

direct managerialinput

best guess statistical/historica

l ratios

8/14/2019 13-Managing Human Resource Systems

7/44

2004 by Nelson, a division of Thomson Canada Limited 7

Workforce Forecasting:

Internal Factors New positions New equipment and

technology Eliminated positions Terminations Retirements

Resignations Turnover

Transfers Deaths

Promotions Organizations

mission Productivity of

current employees skills/education of

current employees

Adapted from Exhibit 13.2

8/14/2019 13-Managing Human Resource Systems

8/44

2004 by Nelson, a division of Thomson Canada Limited 8

Workforce Forecasting:

External Factors Demographics of

labour supply

Geographicpopulation shifts Shift from

manufacturing- toservice- toinformation-basedeconomy

General economicconditions

Unemployment rate Labour unions

Availability ofapplicants Technological

advances

Strength and numberof competitors

Growth in particularbusinesses and

markets

Adapted from Exhibit 13.2

8/14/2019 13-Managing Human Resource Systems

9/44

2004 by Nelson, a division of Thomson Canada Limited 9

uman esourceInformation Systems

(HRIS)Computerized employee informationsystemsUses

transaction processing employee self-service decision support systems

8/14/2019 13-Managing Human Resource Systems

10/44

2004 by Nelson, a division of Thomson Canada Limited 10

Common Data Categoriesin Human Resource

Information Systems Personal data Company employment history Work history Educational data

Performance appraisal Promotion data

Adapted from Exhibit 13.3

8/14/2019 13-Managing Human Resource Systems

11/44

2004 by Nelson, a division of Thomson Canada Limited 11

Employment Legislation Federal and provincial employment

laws Employment discrimination Sexual harassment

8/14/2019 13-Managing Human Resource Systems

12/44

2004 by Nelson, a division of Thomson Canada Limited 12

Major Federal

Employment LawsCanada Labour Code Part III

minimum wage, parental leave, hours ofwork, vacation entitlements

Canada Labour Code Part II occupational health and safety

Canada Labour Code Part I guarantees the right to form and join unions

Canadian Human Rights Act prohibits discrimination on the basis of race,

origin, gender, religion etc.Adapted from Exhibit 13.4

8/14/2019 13-Managing Human Resource Systems

13/44

2004 by Nelson, a division of Thomson Canada Limited 13

Employment

Discrimination Hiring, promotion, and other

employment decision must be

based on bona fide occupationalrequirements

Measures of selection must have reliability validity

8/14/2019 13-Managing Human Resource Systems

14/44

2004 by Nelson, a division of Thomson Canada Limited 14

Sexual HarassmentA form of discrimination in whichunwelcome sexual advances,

request for sexual favours, or otherverbal or physical conduct of asexual nature occur

Two types: quid pro quo hostile work environment

C i l

8/14/2019 13-Managing Human Resource Systems

15/44

2004 by Nelson, a division of Thomson Canada Limited 15

Common ManagerialMistakes Regarding Sexual

HarassmentManagers sometimes assume:

that the victim and harasser must be

of the opposite sex and only womencan be victims

that harassment can only occur

between co-workers or betweensupervisors and subordinates that only victims can file complaints

8/14/2019 13-Managing Human Resource Systems

16/44

2004 by Nelson, a division of Thomson Canada Limited 16

Finding Qualified

WorkersAfter reading the next two sections,you should be able to:

3. explain how companies use recruitingto find qualified job applicants

4. describe the selection techniques and

procedures that companies use whendeciding which applicants should receive

job offers

8/14/2019 13-Managing Human Resource Systems

17/44

2004 by Nelson, a division of Thomson Canada Limited 17

RecruitingJob analysis and recruiting Internal recruiting External recruiting

8/14/2019 13-Managing Human Resource Systems

18/44

2004 by Nelson, a division of Thomson Canada Limited 18

Job Analysis and

RecruitingJob analysis

a purposeful, systematic process for

collecting information on work-relatedaspects of a job

Job description a written description of the basic tasks,

duties, and responsibilities required of a jobincumbent

Job specifications a written summary of the qualifications

required for a job

8/14/2019 13-Managing Human Resource Systems

19/44

2004 by Nelson, a division of Thomson Canada Limited 19

Internal Recruiting

A pool of qualified applicants whoalready work for the company.

Improves employee commitment,morale, and motivation

Reduces recruitment time andcostsJob posting Career paths

8/14/2019 13-Managing Human Resource Systems

20/44

2004 by Nelson, a division of Thomson Canada Limited 20

External Recruiting

Developing a pool of qualified applicants fromoutside the company.

Advertising Employee referrals Walk-ins Outside organizations

Employment services Special events Internet job sites

8/14/2019 13-Managing Human Resource Systems

21/44

2004 by Nelson, a division of Thomson Canada Limited 21

Selection

Application forms and resumes References and background

checks Selection tests Interviews

T i t A id

8/14/2019 13-Managing Human Resource Systems

22/44

2004 by Nelson, a division of Thomson Canada Limited 22

Topics to Avoid onApplication Forms andDuring Selection

Name changes Addresses outside

Canada Age Marital status

Children Birthplace

Military serviceoutside Canada

Mother tongue Race Religion

Criminal record Sexual orientation

Adapted from Exhibit 13.7

8/14/2019 13-Managing Human Resource Systems

23/44

2004 by Nelson, a division of Thomson Canada Limited 23

References andBackground Checks

References Sources such as previous employers or

co-workers who can provide job-relatedinformation about job candidates

Background checks Procedures used to verify truthfulness

and accuracy of information provide byjob applicants as well as gatherinformation not provided by applicant

8/14/2019 13-Managing Human Resource Systems

24/44

2004 by Nelson, a division of Thomson Canada Limited 24

Selection Tests

Specific ability tests Cognitive ability tests Biographical data Personality tests

Work sample tests Assessment centres

8/14/2019 13-Managing Human Resource Systems

25/44

2004 by Nelson, a division of Thomson Canada Limited 25

Interviews

Unstructured free flow of questions

Structured interviewer uses standard set of

prepared questions

Semi-structured combination of structured andunstructured questions

Guidelines for Conducting

8/14/2019 13-Managing Human Resource Systems

26/44

2004 by Nelson, a division of Thomson Canada Limited 26

Guidelines for ConductingEffective StructuredInterviews

Planning

the

interview

Conducting

theinterview

After

theinterview

Adapted from Exhibit 13.8

8/14/2019 13-Managing Human Resource Systems

27/44

2004 by Nelson, a division of Thomson Canada Limited 27

What Really Works

Cognitive AbilityTests

Work SampleTests

8/14/2019 13-Managing Human Resource Systems

28/44

2004 by Nelson, a division of Thomson Canada Limited 28

What Really Works

Assessment Centres

Structured Interviews

8/14/2019 13-Managing Human Resource Systems

29/44

2004 by Nelson, a division of Thomson Canada Limited 29

What Really Works

Cognitive Ability + Work Sample Tests

Cognitive Ability + IntegrityTests

Cognitive Ability + StructuredInterviews

Learning Objectives:

8/14/2019 13-Managing Human Resource Systems

30/44

2004 by Nelson, a division of Thomson Canada Limited 30

Learning Objectives:Developing QualifiedWorkers

After reading the next two sections,you should be able to:

5. describe how to determine trainingneeds and select the appropriatetraining methods

6. Discuss how to use performanceappraisal to give meaningful performance

feedback

8/14/2019 13-Managing Human Resource Systems

31/44

2004 by Nelson, a division of Thomson Canada Limited 31

Training

Determining training needsTraining methods Evaluating training

8/14/2019 13-Managing Human Resource Systems

32/44

2004 by Nelson, a division of Thomson Canada Limited 32

Training Methodsand Objectives

Impart information or knowledge Films, videos, lecture, planned readings

Develop analytical and problem-solving skills Case studies, coaching and mentoring,

group discussions

Practise, learn or change jobbehaviour OJT, role playing, simulations and games,

vestibule trainingAdapted from Exhibit 13.10

8/14/2019 13-Managing Human Resource Systems

33/44

2004 by Nelson, a division of Thomson Canada Limited 33

Evaluating Training

Reactions Learning Behaviour

Results

8/14/2019 13-Managing Human Resource Systems

34/44

2004 by Nelson, a division of Thomson Canada Limited 34

Performance Appraisal

Accurately measuring job

performance

Sharing performancefeedback

8/14/2019 13-Managing Human Resource Systems

35/44

2004 by Nelson, a division of Thomson Canada Limited 35

Accurately MeasuringJob Performance

Objective performance measures Subjective performance measuresTrait rating scales Behavioural observation scales

Rater training

8/14/2019 13-Managing Human Resource Systems

36/44

2004 by Nelson, a division of Thomson Canada Limited 36

Sharing PerformanceFeedback

What to discuss in a performanceappraisal feedback session

1. Overall progress accomplishmentsand shortcomings

2. Problems encountered

3. Opportunities to improve performance

4. Long-range plans, opportunities5. Discussion of plans and goals forcoming year

Adapted from Exhibit 13.12

8/14/2019 13-Managing Human Resource Systems

37/44

2004 by Nelson, a division of Thomson Canada Limited 37

Keeping QualifiedWorkers

After reading the next two sections,you should be able to:

7. describe basic compensation strategiesand how they affect human resourcepractice

8. discuss the four kinds of employeeseparations: termination, downsizing,retirements, and turnover

8/14/2019 13-Managing Human Resource Systems

38/44

2004 by Nelson, a division of Thomson Canada Limited 38

Decisions andEmployment Benefits

Pay-level decisions job evaluation

Pay-variability decisions piecework, commission, profit sharing,employee stock ownership plans, stockoptions

Pay-structure decisions hierarchical and compressed

Employment benefits cafeteria benefit plans

8/14/2019 13-Managing Human Resource Systems

39/44

2004 by Nelson, a division of Thomson Canada Limited 39

Employee Separations

Involuntary/voluntaryTerminating employees Downsizing Retirement

Employee turnover

8/14/2019 13-Managing Human Resource Systems

40/44

2004 by Nelson, a division of Thomson Canada Limited 40

Terminating Employees

Termination is often not wellmanaged

Minimize problems by: not making firing the first option firing should be for just cause

termination at will wrongful dismissal

deal with employee morale amongsurvivors after a firing

8/14/2019 13-Managing Human Resource Systems

41/44

2004 by Nelson, a division of Thomson Canada Limited 41

Downsizing

The planned elimination of jobs Should be used only as a last

resort doesnt always lead to better

company performance

Offering outplacement servicescan help employees makeadjustments

8/14/2019 13-Managing Human Resource Systems

42/44

2004 by Nelson, a division of Thomson Canada Limited 42

Retirement

Early retirement incentive programs Offer financial benefits to

encourage employees to retire Are difficult to predict which or

how many employees will use theprogram May cause the company to lose

valuable employees

8/14/2019 13-Managing Human Resource Systems

43/44

2004 by Nelson, a division of Thomson Canada Limited

43

Employee Turnover

Loss of employees who voluntarily

choose to leave the company Functional turnover

the loss of poor-performing

employees Dysfunctional turnover

the loss of high-performing

employees

8/14/2019 13-Managing Human Resource Systems

44/44

2004 by Nelson, a division of Thomson Canada Limited

What Really Happened?

Recruitment at Albian Sands EnergyInc.

Took a long-term view Participated in stay-school

programs

Recruited across Canada Developed a rewards package to

retain workers