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Human Resource
Management 200

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Chapter 1: Strategic Human Resource Management

What is HR Management?
 Human Resource Management
The leadership and management of people within an organization using systems,
methods, processes and procedures that enable employees to optimize their
performance and in turn their contribution to the organization and its goals
 Organizational Goals
An organizations short/long term goals that human resource management aims to
support and enable

Strategic Human
 Processes of integrating strategic needs of an organization (large scale, future
oriented)
 Practices to support the organizations overall mission, strategies and performance
 Proactive HR Management
A human resource management approach where in decision makers anticipate
problems or challenges both inside/outside the organizations and take action before
they impact the organization
 Reactive HR Management
A HR management approach where in decision makers respond to problems or
challenges as they arise rather than anticipate them

Understanding Strategic HR Management Process


 Mission Statement
Statement outlining the purpose, long-term objectives and activities the organization
will pursue and the course for the future
 Cost Leadership Strategy
Strategy to gain competitive advantage through lower costs of operations and lower
prices for products
 Differentiation Strategy

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Strategy to gain competitive advantage by creating a distinct product or offering a


unique service
 Focus Strategy
Strategy to gain a competitive advantage by focusing on the needs of a specific
segment of the total market
 Economic Forces
o Include global trade forces and the force to increase one’s own competitiveness
and productivity levels
o Global Trade: Canada ranks high in exports
o Productivity: refers to the ratio of an organizations outputs (goods) to its inputs
(people)
 Technological Force
Technology influences organizations and the way people work. Often it can affect an
entire industry.
 Mechanization: The shift toward converting work that traditionally done by hand
to being completed by mechanical/electrical devices
o Increased predictability and reliability
o Higher standards of quality
o Flexibility
 Demographic Forces
o Demographic Changes:
 Changes in the demographics of the labour (ex. education levels/age)
o Aging Population
 Low birthrate
 Longer life expectancy
 65+ age group will expand
o Education Attainment
 Highest level of education of workers
o Knowledge Workers (fastest growing type)
 Members of occupations generating, processing, analyzing, or
synthesizing ideas + information (like scientists)
 Generational Shift
o Generation X (Nexus)
 Born between 1966 – 1980
 Not adverse to hard work
 Premium on work – life balance
 Active decision makers
 “command and control”
o Generation Y

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 Born after generation X


 Now enter workforce and favours technology

o Cultural Forces
 Challenges facing a firm’s decision maker’s b/c of cultural differences
among employees or changes in core cultural / social values occurring at
the larger societal level
o Cultural Mosaic
 Canadian ideal of encouraging each ethnic, racial, and social group to
maintain its own cultural heritage, forming a national mosaic of different
cultures
 Organizational Character
The product of an organizations features – people, objectives, technology, size, age,
unions, policies, successes, and failures.
 Organizational Culture
The core beliefs and assumptions that are widely shared by all organizational
members
 Human Resource Audit
Examination of the HR policies, practices and systems of a firm to eliminate
deficiencies an improve ways to achieve goals
o Employee satisfaction
o Managerial compliance
o Strategy alignment
 Staff Authority: authority to advise, not direct
 Line Authority: authority to make decisions about production, performance and people
 Functional Authority: allows staff to make decisions instead of managers

Today’s Human Resource Management Professional


 Master of HR Management Tools
o Should be familiar with staffing, training, compensation planning, performance
appraisal and planning etc.
 Change Mastery
o HR professionals should be able to bring change in the organization
 Personal Credibility
o Should be trustworthy, ethical, courageous
 Certified Human Resource Professional (CHRP) HR Practitioner, formally accredited to
practice (only thing needed to practice)
1. The Strategic HR Management Model
2. Planning Human Resources

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3. Attracting Human Resources


4. Placing, Developing, and Evaluating HR
5. Motivating Human Resources
6. Maintaining High Performance
7. HR Management in a Global Context
 L – E – S Spectrum
o Legal – Ethical – Social
 Do we do things because the law tells us to, the employer or the society?
 Canadian Employees shifting from
o Primary industries – to – service, technical, professional jobs
 Human Resource Planning
o Analysis of the HR requirements of an organization
 Strategy
o How do you know you have the qualifications?
o PEST = political – economic – social – tact
 Wages / look outside the box / attitudes
o Employability Skills Include:
 Basic academic skills
 Personal management skills
 Teamwork
 WARMED HR
o W – Wellness (health insurance, compensations)
o A – Attraction + Selection (who is fit for the job?)
o R – Rewards (commission)
o M – Motivated (internal – how do we externally motivate?)
o E – Execution (review, does it get done?)
o D – Development (how much are we investing?)
 Human Resource Business Partner (HRBP)
o Organizational awareness
o Trusted relationships
 Core Job Characteristics
o Variety – requires the ability to use different skills to perform a job
o Task Identity – requires completion of a whole/identifiable piece of work
o Autonomy – individual experiences freedom, discretion and independence in
doing the job
o Task Significance = the extent to which a job affects the lives of others inside /
outside the organization
o Feedback – employee receives direct and clear info about the effectiveness of
their job performance

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Chapter 2: Job Analysis and Design

 Job Analysis
o Study of a job to discover its specifications, skill requirements – for wage setting,
recruitment, training, or job-design purposes
Job = group of related duties
Position = collection of tasks completed by an individual

Steps in the Job Analysis Process


3 Phases in Job Analysis
1. Preparation
2. Collection of Job Information
3. Use of Job Information for Improvement

 Sources of Job Data


o Nonhuman
 Existing job  Equipment
descriptions maintenance manuals
 Equipment design  Internet research
blueprints  Professional goals
o Human Sources:
 Job incumbents  Work colleagues
 Supervisors  Subordinates
 Job experts  Customers

 Job Analysis Questionnaires


o Collects information about jobs
o Uncovers:
 Identifications
 Duties / responsibilities
 Performance standards
 Human characteristics / working conditions

 Occupational Information Network (O-NET)

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 Generic questionnaires for specific domains of job information

 Fleischmann Job Analysis System (F-JAS)


 Used mainly in the US market
 Well researched job analysis method based on a list of 52 cognitive,
psychomotor, physical and sensory abilities
 Position Analysis Questionnaire (PAQ)
 Applied to all jobs
 Emphasizes: outputs, inputs, relationships

 Interviews
Collecting job/performance related information by face-to-face meeting, standardized
checklist of questions
o (disadvantage = slow/expensive)

 Focus Groups
o Face-to-face meeting with 5-7 jobholders/experts
 Employee Logs
o Where employees are required to record their jobs/actions in a journal for data
 Observation
o Collecting job/performance related information by direct observation
 Combination
o Use of 2 or more job analysis techniques (ex. interview and observation)

Job Description
 Job Description
o Recognized list of functions, tasks, accountabilities, working conditions, and
competencies for a particular occupation
 Explains duties, working conditions, etc.
 Job Identity
o Includes job title, job location, job code, job grade
 Job Code
o A code that uses numbers/letters to provide a quick summary of the job and its
content

 National Occupation Classification (NOC)

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o An occupational classification created by the federal government, using skill level


and skill types of jobs
 Working Conditions
o Includes physical environment, hours hazards, travel requirements etc.

Job Specifications / Performance Standards


 Job Specification
o A written statement that explains what a job demands of jobholder and the
human skills / factors required
 Job Performance Standards
o Work performance expected from an employee on a certain job

Competency Models
 Competency
o Skill / knowledge / ability / behaviour = successful job performance
 Competency Model
o 10-15 competencies required for a job
 Competency Matrix
o List of the level of each competency required for each of a number of jobs

Job Design
 Job Design
o Identification of job duties, characteristics, competencies and sequences taking
into consideration technology, workforce, organization character, and
environment
o Efficiency: maximize output with minimal input
 Workflow
o Balance between jobs in an organization to perform/produce goods or services
efficiently
 Autonomy
o Concept of assuming responsibility for actions
o Freedom to control one’s response to the environment
o Jobs that give workers authority to make decision
 Variety
o Jobs where the worker has/can use different skills to prevent boredom
 Task Identity
o Feeling of responsibility/pride that results from doing an entire piece of work,
not just a small piece of it

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 Feedback
o Information that helps evaluate success / failure
 Task Significance
o Knowing that the wok being done is important to either the organization or
outsiders

Job Specialization
 Job Rotation
o Moving employees around to encourage variety and so they learn new skills
 Job Enlargement
o Adding more tasks to a job to increase the cycle and draw on the wider range of
employee skills
 Job Enrichment
o Adding more responsibilities to a job
o Increases responsibility and control
o Plan, do, control
 Environmental Considerations
o Influence of the external environment on job design
 Includes:
 Employee ability
 Availability
 Social expectations
 Social Expectations
o Larger societies expectations about: job challenge, working conditions and
quality of work
 Work Practices
o Set ways of performing work in an organization
 Work Force
o Work flow in an organization is strongly influences by the nature of the product /
service
 Job Characteristics Model
o High autonomy o Task significance
o Variety o Feedback
o Task identity
 Disadvantages of using Questionnaires to Collect Job Data:
o Less accuracy o Incomplete questions
o Misunderstood questions o Low response rates
 Intent of Data Collection in Job Analysis

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o Collect relevant and accurate information about jobs and factors determining job
success

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Chapter 3: Human Resource Planning

Relationship of Human Resource Planning to Strategic Planning


 Human Resource Planning (HRP)
o Used to determine future HR requirements by anticipating future business
demands
o Determining current availability of HR
o Making decisions on being affective

 5 Levels of Planning Activities


1 – 5 (Basic to Robust)
o Level 1: Demand for Resources
 Not engaged in any planning, training = afterthought
o Level 2: Supply of Resources
 Engage in some long-term planning, but minimal HR
o Level 3: Develop HR Objectives
 Moderate planning activities, long-term forecasts, 4-5 years planning
o Level 4/5: Establish Evaluation (FINAL STEP)
 Advanced sophistication, long-term planning, core + key HR priority

 Human Resource Planning Process Steps


1. Forecast Demand for Resources
2. Assess Internal and External Supply of Resources
3. Develop HR Objectives
4. Design and Implement HRM Programs
5. Establish Program Evaluation

 Forecasts
o Estimates of future resource needs and changes
o Turnover: departure of employees from an organization (ex. termination)
o Budgets and Revenue Forecasts
 Budget increase/decrease are highly significant as a short-run influence
on HR needs

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o Forecasting Techniques for Estimating HR Demand

expert Trend Other

informal/instant decisions extrapolation budget/planning analysis


formal expert survey indexation new-venture analysis
Delphi technique statistical analysis computer models

 Nominal Group Technique (NGT)


o Focused group discussion where members meet in person, write down ideas and
share them
o All new thoughts are recorded
 Delphi Technique
o Soliciting of predictions about specified future events from a panel of experts

Trend Projection Forecasts


 Extrapolation
o Extending past rates of change into the future
 Indexation
o Method of estimating future employment needs by matching employment
growth with a second value
 Other Forecasting Methods
o Budget and Planning Analysis
o New-Venture Analysis
o Computer – Based Simulation and Predictive Models
Staffing Table: lists future employment needs for each type of job

The Supply of Human Resources


 Human Resource Audits
o Summarize the employee’s knowledge skills, abilities, generating skills,
management and leadership inventories
o Skills Inventory:
 Summaries of worker’s skills and abilities
o Management / Leadership Inventory
 Comprehensive reports of available management capabilities in the
organization
 # of employees

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 types of employees supervised


 total budget managed
 management training received
o Replacement Charts
 Visual representatives of who will replace whom in the event of a job
opening

Transition Matrices and Markov Analysis


 Markov Analysis
o Simple method of predicting the internal supply of HR in the future
o Useful where employees move from one job to another, regularly
o Useful where jobs do not fluctuate rapidly due to external (technological) /
internal (strategic) change
 Forecast of firm’s future HR supplies, using traditional probability
matrices
 Transition Matrices
o Describe the probabilities of how quickly a job position turns over and what an
incumbent employee may do over a forecast period of time
 Labour Market Analysis
o Study of a firm’s labour market to evaluate the present / future availability of
different types of worker
 Canadian Occupational Projection System (COPS)
o Provides up to 10-year projection of Canadian economy and HR needs

 Supply Indicators
o Internal
 Human Resource Audits
 Skill inventories
 Management inventories
 Replacement charts/summaries
 Transition matrices and Markov Analysis
o External
 Labour market analysis
 Community attitudes
 Demographic trends
 Headcount Reduction
o Layoff – temporary withdraw
o Leave without pay
o Termination
o Incentives for voluntary separation

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 Outplacement
o Assisting employees to find jobs with other employers

Attrition Strategies
 Attrition
o Loss of employees due to voluntary departures
o Normal separation of employees
o Resignation, retirement, death
 Ex. Early / Phased Retirement
 Job Sharing / Job Splitting
o A plan whereby available work is spread among all workers in a group to reduce
the extent of layoffs
 Not being laid off
 Give employees more free time
 Phased Retirement
o Older worker reduces # of hours worked but continues to share their experience
 Part-Time Employees
o People working fewer than required hours for categorization as full-time workers
and who are ineligible for many supplementary benefits offered by employees

Strategies to Manage Shortages of Employees


 Labour Shortage
o Insufficient supply of qualified workers
 Full-Time Employees
o Work 37.5-40 hours / week
 Contract (Contingent) Worker
o Not part of the regular workforce (freelancer)
o Governed under contract law
o Provides goods/services under a contract
 Consultant
o Professionals who provide expert advice
 Outsourcing
o Contracting tasks to outside agencies / persons
o Saves money, better quality
o Decision made by executives, not HR planners (also called offshoring)
o Contracting with a 3rd party organization
 Work Arrangement
o Refers to a firm’s use of work hours, schedules and location to ensure that the
goals of an organization and the needs of the employees are met

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 Overtime
o Rather than hiring employees to relieve labour shortage, organizations will offer
overtime
 Consequences: high stress, fatigue, accident / wastage rates
 Flexible Retirements
o Also called retiree-return programs
o These programs allow retirees to work after they have left and allows them to
have significant flexibility in terms of their job
 Float and Transfer
o Employees have to be cross-trained
o Flexible policy, where full-time resources can be transferred when needed
 Ex. Job Rotation

Program Measurement and Evaluation


 People Equity
o How organizations measure and manage their human capital to maximize its
value

Human Resource Information Systems


 HRIS (HR Information System)
o Gathers, analyzes, summarizes and reports important data for formulating and
implementing strategies by HR specialists
o HRIS Functions:
 Applicant/  Time and attendance
recruitment tracking  Benefits / pension
 Training and  Labour relations
development  Performance
 Performance  Health / safety
management  Compensation
 Employment equity  Career planning
info
o Key Considerations for HRIS
 Size of the organization
 What info needs to be captured
 The volume of info transmitted
 The firm’s objectives
 Managerial decision needs
 The importance of reporting capability
 Technical capabilities

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 Available resources

 Enterprise – Wide System


o Link an organizations entire software application environment into a single
enterprise solution
 Employee Self Service (ESS)
 Allows employees to access and view their own records and make
changes
 Manager Self Service (MSS)
 Managers are able to access employee records, view and add
relevant info, such as an employee rating
 Predictive Analysis
o Process of selecting, exploring, analyzing and modelling data to create better
business outcomes
 Talent Management
o A systematic, identification, development, engagement/retention and
deployment of those individuals with high potential who are particular value to
the organization
 More than a recruitment strategy

Human Resource Accounting


 Human Resource Accounting (HRA)
o Process to measure the present cost and value of human resources as well as
their future worth to the organization
 Tries to put a dollar on the human assets of an organization using cost
and value models

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Chapter 4: Legal Requirements and Managing Diversity

Government Impact
 Regulations
o Legally enforceable rules developed by governmental agencies to ensure
compliance with laws that the agency administers

 The Charter of Rights and Freedoms


o Federal law enacted in 1982, guaranteeing individuals rights and freedoms
before the law
 Ex. freedom of conscience and religion, freedom of thought, belief,
opinion, freedom of association etc.
 Section 15 – Equality Rights
 Came into effect April 17, 1985
 Delayed to allow federal/provincial government to create/change
laws in compliance with the charter

Human Rights Legislation


 Human Rights Act
o Seeks to provide equal employment opportunities without people’s judgements
 Provincial Human Rights Laws
o All provinces have their own human right laws with discrimination criteria,
regulations and procedures
 The Canadian Human Rights Act
o Passed by Parliament on June 4, 1977
o A federal law prohibiting discrimination
o Employment area not covered by Federal Jurisdiction, it is protected under
provincial and territorial legislation
 Discrimination Defined
o “a showing of partially / prejudice in treatment; specific action or policies
directed against the welfare of minority groups”
o discrimination is not defined in the Charter nor in the human rights legislation
 45-60% claims of discrimination is from the disabled
 Direct Discrimination
o Bona Fide Occupational Requirement (Qualification) (BFOR / BFOQ)

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 A justified business reason for discriminating against a member of a


protected class (ex. a female giving out towels in a female locker room)
 Indirect / Systematic Discrimination
o Any company policy, practice or action that is not intentionally/openly
discriminating
o But has an indirect discriminatory impact
 Canadian Human Rights Commission (CHRC)
o Supervises the implementation and adjudication of the Canadian Human Rights
Act
 Race / Colour – can be intentional / unintentional
 National / Ethnic Origins – illegal for HR decisions to be influenced by
origins of the applicant
 Religion – duty to accommodate religious practices
 Age – using minimum/maximum age has been criticized
 Gender / Sexual Orientation
 Marital / Family Status

Disability
 Reasonable Accommodation
o Voluntary adjustments to work or workplace that allow employees with special
needs to perform their jobs effectively
o CHRC – methods to resolve complaints: conciliation, mediation, tribunal

Harassment
- May be verbal, physical, unwelcome and deliberate
- Occurs when a member of an organization treats an employee in a disparate
manner because of that person’s sex, race, religion, age or other classification
- Could be one incident or a series

 Sexual Harassment
o Unsolicited / unwelcome gender-based conduct that has adverse employment
consequences for the complaint

Employment Equity
 Employment Equity Act
o Federal law to remove employment barriers and to promote equality
 Abella Commissions Report
o 4 designated groups that have been historically disadvantaged

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 Disabled, Aboriginal, Women, Visible Minority


 Employment Equity Programs
o Developed by employers to undo past employment discrimination or to ensure
equal employment opportunity in the future
o Called affirmative actions in the US

 Underutilization
o A condition that exists when a department or employer has a lesser proposition
of members of a protected class than are found in the employers labour market
 Concentration
o A condition that exits when a department or employer has a greater proposition
of members of a protected class than are found in the employers labour market

 Major Steps in Employment Equity Programs


1. Exhibit strong employer commitment
2. Appoint a high ranking director
3. Publicize commitment internally / externally
4. Survey the workforce for underutilization / concentration
5. Develop goals and timetables
6. Design remedial, active, and preventive programs
7. Establish control systems and reporting procedures

 Pay Equity
o When women aged 25-54 earn 85% as much / hour than men do

 Direct Discrimination
o Practice / policy / restriction that treats a person differently and unequally on
prohibited ground
 Reverse Discrimination
o When an employer seeks to hire a member of a protected group over an equally
(or better) qualified candidate who is not a member of the protected group is
not a member of the protected group
 White males experience this the most

 Natural Justice
o Minimal standards of fair decision making imposed on persons in a judicial
capacity (ex. the right to fair hearing etc.)

 Other Legal Challenges

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o Canada Labour Code o Minimal wages


o Dismissal o Occupational health and
o Hours of work safety
o Overtime legislations o Weekly rest day
o Workplace Hazardous Material Information System (WHMIS)

Meaning of Diversity Management


 Workplace Diversity
o Includes important human characteristics that influence employee values, their
perceptions of self and others, behaviours and interpretations of events

o Core Dimensions of Diversity


 Age  Race
 Sex / Gender  Sexual Capabilities
 Religion  Ethnicity and Culture
 Capabilities
o Secondary Dimensions of Diversity
 Education  Language
 Status  Income level

 Managing Diversity
o Ability to manage individual employees with different cultural values and lead
teams made up of diverse employees
 Stereotyping
o The process of using a few observable characteristics to assign someone to a
preconceived social category

Strategic Importance of Diversity Management


 Changing Workforce
 Importance of Human Capital
o Knowledge worker may be key to the success / failure

 Diversity as a Competitive Advantage


o Proactive organizations recognize that competitive strength often lies in focusing
on their employees and their clients

 Increasing Role of Work Teams

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o Teams play a dominant role in modern organizations


o Work teams are charged with a task accomplishment to enable firms to distance
themselves from the competitors and ensure survival

 Steps in Diversity Management

Identify Ideal Future


State

Analyze Present
Evaluate Results
Systems and
and Follow Up
Procedures

Change Systems,
Policies, and
Structures

 Cultural Norms
o Values and norms that determine behaviours of individuals and groups in
different cultures

 Diversity Committee
o A committee entrusted to oversee diversity efforts, implement processes and
serve as a communication link
 Diversity Audits
o Audits to uncover underlying dimensions, causes, interdependencies, and
progress-to-date on diversity management matters
 Diversity Training Programs
o Training programs aimed at importing new skills to motivate and manage a
diverse workforce

o Awareness Training
 Training employees to develop their understanding of the need to
manage and value diversity
o Skill Building Training
 Training employees in interpersonal skills to correctly respond to cultural
differences at the workplace

Mentoring Programs
Where women or members of a visible minority and other disadvantaged group are
encouraged to work together with a senior manager who acts like a friend and guide in
achieving success.

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 Alternate Work Arrangements


o Non-traditional work arrangements (ex. flextime/telecommunication) that
provide more flexibility to employees while meeting organizational goals
 Apprenticeships
o A form of on-the-job training in which junior employees learn a trade from an
experienced person

 Support Groups
o Groups of employees who provide emotional support to a new employee that
shares a common attribute with the group
 (ex. racial / ethnic membership)

 Communication Standards
o Formal protocols for internal communications within an organization to
eliminate sex/gender, racial, age, or other biases in communications

Wage Gap is Lower for Unionized Workers


 Human Capital
o The productive potential of an individual’s knowledge and actions

 Federal / Provincial Human Rights Law


o Major Difference: employment equity and pay equity

 2011 Consensus
o same-sex common laws in Canada represent under 1% of all Canadian couples

 Competitive Advantage
o The right combination of human capital

 25% of Canadian population will account for visible minorities in 2031 – Stats Canada

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Chapter 5: Recruitment

 Recruitment
o The process of finding and attracting capable applicant to apply for employment
and accept job offers that are extended to them
 Selection
o The identification of candidates from a pool of recruits who best meet job
requirements, using tools such as application blanks, test, interviews.

Strategic Importance of the Recruitment Function


 Competitive Advantage
o When a firm is able to deliver the same value and benefits as competitors but at
a lower cost (cost advantage), or deliver more benefits or unique value that
exceed those of competing products (differentiation advantage)

 Employee Development
o Recruiting (Upper-Middle level jobs)
 It can develop and promote internal candidates (cheaper and faster)
 Hire from outside
 These are 2 broad types of recruiting
 Constraints on Recruitment Process
o Organizational Policies o Environmental Conditions
o Human Resource Plans o Job Requirements
o Diversity Management o Costs
o Recruiter Habits o Inducements

 Organizational Policies
o Internal policies that affect recruitment, such as “promote-from-within” policies
1. Promote – From – Within
 Present employees the first opportunity for job opening and
career growth
2. Compensation Policies
 Pay policies is a common restraint
3. Employment Status Policies
 Some companies have policies restricting the hiring of part-time
and temporary employees

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4. International Hiring Policies


 Policies in some countries may also require foreign job openings
to be staffed with local citizens
 If jobs are occupied by locals:
o Reduces economic exploitation
o Reduces relocation expenses
o Reduces likelihood of nationalization

 Human Resource Plan


o Describes a firm’s overall plan to fill existing and future vacancies
o Including decisions on whether to fill internally or to recruit from outside

 Diversity Management
o Recognizing differences among employees belonging to heterogeneous groups
and creating a work environment in which members of diverse groups feel
comfortable

 Recruiter Habits
o Tendency of a recruiter to reply on methods, systems, or behaviours that led to
past recruitment success

 Job Analysis Information


o Reveals important characteristic of job and applicants
o Knowledge of job helps recruiter find the best

 Costs = expenses related to attracting recruits

 Inducements
o Monetary, non-monetary or even intangible incentives used by a firm to attract
recruits
 Not all inducements are monetary or even tangible

Applying for a Job


 Resume (curriculum vitae or CV)
o Brief voluntary listing of an applicant’s work experience, education, personal
data, and other information relevant to the job
 Applicant Tracking System (ATS)
o Electronic system used to sift through large numbers of applicants

 Job Application Form

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o A company’s form
o Completed by job applicant
o 2nd way of applying rather than a resume
o includes: contact information, education, prior employment references, special
skills etc.

Recruitment Methods
 Walk-Ins / Write-Ins
o Job seekers who arrive at or write to the HR department in search of a job
without prior referrals and not in response to an ad
 Employee Referrals
o Recommendations by present employees to the recruiter about possible job
applications for a position
 Advertisement
o Ads in a newspaper, magazine etc. that solicit job applicants for a position
o Ads can lead to an excess of applicants for one popular opening
 Blind Ads
o Job ads that do not identify the employer

 Increase Effectiveness of Job Advertisements in Newspapers and Periodicals


o Providing detailed explanation
o Advertisement in media that good/educated applicants see
o Presenting info about the work environment, organizational climate and future
growth potential of a position with the organization

 Benefits of Internet Recruiting


o Companies can weed out unsuitable candidates
o “can advertise job openings on their websites”
o relatively inexpensive
 Social Media
o Can be used by recruiters to post openings and seek applicants using LinkedIn
and google+
o Recruiters can also use Facebook/Twitter to seek info about applicants

 Employment and Social Development Canada (ESDC)


o Helps unemployed find jobs online through job bank
o Federal department that provides programs and services for employers and
present and potential employees

 Professional Search Firms

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o Agencies that, for a fee, recruit specialized personnel for a company

Educational Institutes
- Educational Institutions
o High schools, technical schools, universities
- Alumni Associations
o Associations of alumni of schools, colleges, or other training facilities

 Canadian Forces
o Train personnel in almost every profession
 Temporary Help Agencies
o Provide supplemental workers for temporary vacancies caused by employee
leave / sickness
 Illness
 Maternity leave
 Demand during peak season
 To cover employee vacations
 Buy-Back
o Method of convincing an employee who is about to resign to stay by offering
higher salary / wage
 Job Fair
o Resembles trade show but of different employers in one place
 Decline in job fairs: popularity of internet recruiting, budget constraints

 Contract Workers
o No long term commitment
o Paid flat rate with no benefits
o They require little training and little supervision

 Legal Implications of Using Contract Workers


o Contract workers do not benefit from statutory protections offered by
employment laws
o Courts and arbitrators carefully monitor contractual agreements to ensure that
do not use them to avoid statutory obligations

Evaluating the Recruitment Function


 Cost per Hire
o Ex. Mountain Engineering Company LTD.
 More than $3000/hire for recruiting engineers

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 Realistic Recruitment Messages

o Portrays both negative and o Fewer applicants


positive aspects o Greater commitment from
o Lower turn over applicants
 Private Employment Agencies Solicit Job Seekers through: walk ins and advertising

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Chapter 6: Selection

 Selection Process
o A series of specific steps used by an employer to decide which recruits should be
hired

Strategic Significance of the Selection Function


- All organizations have finite resources
- Selection ratio: the ratio of the number of applicants hired to the total number of
applicants

Steps in the Selection of Human Resources


 Selection Process
1. Preliminary Reception of Applicants
2. Applicant Screening
3. Administration of Employment Tests
4. Employment Interview
5. Realistic Job Previews
6. Verification of References
7. Contingent Assessments
8. Hiring Decision

 Weighted Application Blank (WAB)


o A job application form in which various items are given differential weights to
reflect their relationship or criterion measures
 Biographical Information Blank (BIB)
o A type of application blank that uses a multiple choice format to measure a job
candidate’s education etc.

 Employment Tests
o Devices that assess the probable match between applicants and job
requirements
 Reliability
o A selection device’s ability to yield consistent results over repeated measures
o Internal consistency of a device or measure
 Validity

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o A key attribute of a selection device that indicates its accuracy ad relationship to


job-relevant criteria
 Empirical Approaches
o Predictive Validity
 Gives a test to a group of applicants
o Concurrent Validity
 HR Department correlates scores with performance
 Rational Approaches
o Content Validity
 Ex. a vocabulary test
o Construct Validity
 A test that only measures what is being tested
 Ex. intelligence test

 Differential Validity
o Test validation process aimed at discovering the validity of a test for various
subgroups (ex. females and members of visible minorities)

 Validity Generalization
o Using validity evidence accumulated for other jobs or applicant populations to
guide employment test choices until local validation study results can be
acquired

 Personality Tests
o Measures personality / temperament
 Ability Tests
o Predicts if job applicants have the skills
 Knowledge Tests
o Measures a person’s info / knowledge
 Performance Tests
o Measures ability of job applicants to perform specific tasks
 Situational Judgement Test
o Places an applicant in hypothetical situations and asks what they would do
 Computer-Interactive Performance Tests
o Performance tests using computer simulations that measures skills,
comprehension, spacial visualization, judgement etc.
 Integrity Tests
o Measure honesty and trustworthiness

 Realistic Job Preview (RJP)

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o Involves showing the candidate the type of work, equipment, and working
conditions involved in the job before the hiring decision is final

 Employment References
o Evaluations of an employee’s past work performance and job-relevant behaviour
provided by past employers

 Reference Letters
o Written evaluations of a person’s job-relevant skills, past experience, and work-
relevant attitudes
o Employers often use social networking sites to learn more about applicants

 Personal Info. Protection and Electronic Document Act (PIPEDA)


o Collection, use, retention and disclosure of personal information

o PIPA – Personal Information Protection Act


 In BC / AB
 Similar to PIPEDA

 Medical Evaluation
o Assessment of physical / mental health of an applicant through self-reports and/
or medical examination by a physician

 Subjective Approach (clinical approach)


o Decision maker looks at all scores, carefully evaluates and comes up with an
overall judgement

 Multiple Cut-Off Approach


o Scores are set for each predicator and each applicant is evaluated on a pass-fail
basis

 Compensatory Approach
o Higher score on a predicator may compensate a low score on another

Employment Interview
- A formal, in-depth, face-to-face, phone/video conference between an employer and
applicant to assess the appropriateness

 Types of Interviews

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o Panel Interview – using several interviewers with one applicant


o Unstructured Interview – barely any planned questions
o Lie Detector Test = polygraph
o Structured Interview – predetermined checklist of questions asked for all
applicants
o Behavioural Description Interviews – attempts to find out how an applicant
would act / respond to situations
o Situational Interviews – attempt to assess applicant’s future response to specific
situations that they may/may not be faced with

 Stages of an Interview
1. Interview Preparation
2. Creation of Rapport (understanding)
3. Information Exchange
4. Termination
5. Evaluation

 Interviewer Errors
o Mistakes like biases and domination that reduces the validity and usefulness of
the job interview
 Interviewee Errors
o Mistakes such as boasting, not listening, or lack of preparation that reduce the
validity and usefulness of an interview

 Applicant Screening
o Pool down to only those who meet minimal qualifications

 Advantages of an Employment Interview


o An interview allows personal impression
o An interview gives the organization an opportunity to convince the candidate to
work

 Employee Contract Where They Should Be Paid


o Specify a probationary period
o Specify a start date and terms of employment
o Specify reasonable restrictive covenant

 Courtesy Interview
o They are an important part of good employer branding
o They attempt to screen out “misfits”
o They are generally not as rigorous as a planned interview

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Chapter 7: Orientation, Training + Development, and


Career Planning

 Onboarding
o Process of helping new employees adjust to the social and performance aspects
of their new jobs
 Employee Turnover
o If employees are not satisfied with their job and do not receive rewards, they
want to leave the organization
 Startup Costs
o Additional costs associated with a new employee is typically less efficient than
the experienced one; requires extra supervision
 Orientation Programs
o Programs that familiarize new employees with their roles, the organization, its
policies and other employees
 Socialization
o The process by which people adapt to an organization through learning and
accepting the values, norms and beliefs held by others in the organization

Training and Development


 Learning Organization
o An organization that has enhanced capacity to learn, adapt and change
 Knowledge Management
o The ability to use people’s knowledge, that is, information stored in employee’s
heads

 Human Resource Development (HRD)


o Employees can use skills to the fullest
o A function of HR Management that integrates the use of training and employee
and career development efforts to improve individual, group and organizational
development

 Training
o Planed activities aimed to provide employees with enhanced skills to perform
current jobs
 Development

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o Planned activities aimed to provide employees with in hand skills and


competencies for the future

Training
To develop an effective training program, HR specialists and managers must assess the needs,
objectives, content, and learning principles associated with training
 Needs Assessments
o Diagnoses present problems and future challenges that can be met through
training and development

 Training Objectives
o Evaluation of training needs results in training objectives
o These objectives should state the:
 Desired behaviour
 Conditions under which training is to occur
 Acceptable performance criteria

 Learning Principles
o Best way to understand learning is through the use of a learning curve
o Guidelines to the ways people learn most efficiently

 5 Learning Principles
1. Participation – learning is usually quicker and long-lasting
2. Repetition – etches patterns into memory
3. Relevance – more useful when material is meaningful
4. Transference – application of training to actual job situations
5. Feedback – give leaners information on their performance

 On-the-Job Training (OJT)


o Training is received directly on the job and is used to teach workers how to do
present jobs

o Cross Training: training employees to perform operations in areas other than


their assigned jobs
o Apprenticeship / Coaching: involves learning from more experienced employees
 Off-the-Job Training
o Lectures / Video Presentation
 Rely more heavily on communications
 Disadvantages:
 Audience is typically passive

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 Repetition and transference are low


 Do not permit feedback from the audience
o Job Labs / Simulations
 Separate areas are set up with the same kind of equipment
 This allows transference, repetition, participation
o Role-Playing
 Participants are assigned different roles, and they act out those roles in a
situation
o Case Study: trainees learn about real / hypothetical circumstances and the
actions other took
 Participation is high
 Improves written / verbal communications

 E-Learning / Web – Based


o Involves electronic networks that update frequency
o Delivers information to employees via internet
o Focuses on learning solutions to improve employee performance
 Web/Computer Training: program is loaded on to a hard drive and the
user only uses 1 program
 Electronic Performance Support: workers have access to various data
bases, online told, discussion forums that help them find solutions
 Virtual Synchronous: employees/trainers meet at a predetermined time.
Demonstrations are displayed to the class with real-time access
 Asynchronous: Instructors / students to engage in learning without being
online at the same time

 Virtual Reality
o Use of modern computer technology to create a 3D environment
 Blog
o A web-log, an online journal, diary, or serial published by a person or group of
people
 Wiki
o a type of server program that allows multiple user to contribute to a website

 Steps in a Training Program:


1. Assess organization needs and employee skills for training gaps
2. Design training activities to meet identified needs
3. Evaluate the trainings effectiveness

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Employee Development
 Strategic HR Development
o The identification of needed skills and active management of employees leaning
in relation to corporate strategies

 Steps to Create Employee Development Plans (EDP)


1. Assess Employee Needs – understand employee’s interests
2. Link Competencies and Skills to Business Goals – develop employees according
to goals
3. Identify Learning and Development Activities
4. Determine Resources – who will be involved, costs, time and support
5. Identify Barriers – any obstacles

 Training / Developmental Strategies


o Behavioural – attempts to change behaviour
o Cognitive – concerned with altering thoughts
o Environmental – change attitudes and values

 4 Types of Evaluation Criteria for Training


1. Reaction
2. Knowledge / Skill
3. Behaviour
4. Organizational Results

 Cost – Benefit Analysis


o Analysis undertaken to assess the cost-effectiveness of a project or program
 Revenue – Cost = Profit

Career Planning + Development


If organizations are going to attract / retain talent, they must help employees with career
planning and offer development to employees
 Career Planning: someone becomes more aware of their interests, needs, motivations
for careers
 Career Management: series of formal/informal activities designed by organizations to
influence development
 Career Development: lifelong series of activities undertaken by individuals in their
pursuit of a career

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Career Planning Job Satisfaction

Career
Development

Career Management Career Committment

 Individual Career Development


o Demonstrate Exceptional Job Performance
o Increase Visibility and Exposure within the Organization
o Leave the Organization to Seek a Better Job
o Demonstrate Organizational Commitment
o Seek Mentors, Sponsors and Coaches
o Seek Growth Opportunities

 Mentor: someone who offers informed career guidance and support on a


regular basis
 Sponsor: person that creates career opportunities for others

 To Assist in Career Development


1. Career Equity
2. Supervisory Concern
3. Awareness of Opportunities

 How do employees measure career success?


o Advancement – ability to gain power
o Learning – acquisition of new skills
o Employability – making money to survive
o Psychological Factors – internal motivation

 Factors Effecting Individual Career Choices


o Social / Environmental Concerns
o Work – Life Balance
o Personality – Job Fit

 Succession Planning
o The process of making long-range management development plans to fill HR
needs

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 Employee Exchange Programs


o Ex. Bell Canada / Xerox
o Manager takes a one-year leave (paid/unpaid) and joins another organization
o The manager, the host, and the parent organization all tend to gain from the
experience

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Chapter 8: Performance Management

Performance Management
The use of performance data to effect organizational culture, systems, processes, set goals,
allocate resources, affect policies & programs ad share results
 Performance Appraisal
o Evaluates employee performance
 Cascading Approach
o Used to ensure line of sight between organizational objectives and individual
work
o Can be time consuming to set up
 Linking Up Approach
o Each unit and employee clearly links their goals to the organizations objective
 Balanced Scorecard
o An integrated organizational performance measuring approach that looks at
organizational learning and innovation, financial management, internal
operations and customer management

Performance Appraisals as Part of Managerial Strategy


- Accurate evaluations show employees where they are deficient
- Evaluations make compensation, placement, training, development and career
guidance decisions more effective

Elements of the Performance Appraisal System


 Job-Redesign
 Training Program Objectives
 Criteria for Test Validation
 Employee Development and Career Planning
 Feedback and Performance Improvement
 Administrative Decisions (ex. pay raises, promotions)

 Job-Related
o Means that the system evaluates critical behaviours that constitute job success
o If the evaluation is not job-related, then it is most like unreliable and invalid

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 Reliability: performance measure that is consistent and free from random


error
 Validity: performance measure that assessed all relevant aspects of
performance

 Performance Standards
o The bench marks against which performance is measured
 Performance Measures
o The rating used to evaluate employee performance
o Must be:
 Easy to use
 Reliable
 Report on the critical behaviours

 Direct Observation
o When the rater actually sees the performance
 Indirect Observation
o Rater evaluates substitutes for the actual performance

 Objective Performance Measures


o Indications of job performance that are verifiable by others
o Usually quantitative
o Typically include gross units, produced, net units approved by quality control,
scrap rates etc.
 Subjective Performance Measures
o Rating based on opinion or perception, rater’s personal opinions usually
o Low in accuracy, indirect
 ex. representatives phone manner as supervisors must use their personal
opinions – good or bad

Considerations for Designing an Effective Performance Management Process


1. Validity / Relevance
a. Invalid criteria lead to biased assessments
b. Results are the most valid criteria
2. Reliability / Consistency
a. Highly desirable but difficult to achieve in an organizational setting because of
different raters, instruments and changing work environments
3. Acceptable Performance Standards
a. Performance standards are derived from job-analysis
4. Acceptable Goals

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a. Some are set too high for employees – goal of manager is to make them
achievable

Comparative Evaluation Methods


A collection of different methods that compare one person’s performance with that of co-
workers – usually confused by the supervisor
 Ranking Method
o A method of evaluating employees that ranks them from best to worst on some
trait
 Recency Effect / Halo Effect

 Forced Distributions
o A method of evaluating employees that requires raters to categorize employees
 Some employees maybe rated than they actually are or supervisor thinks
they’re correct

Non Comparative Evaluation Methods


Appraisal methods that evaluate an employee’s performance according to preset data, and not
by comparing one person’s performance with that of co-workers
Some Methods:
- The rating scale
- Behaviourally anchored rating scale
- Performance tests/observations
- Management by objectives
- Assessment centers

 Rating Scale
o A scale that requires the rater to provide a subjective evaluation of an
individual’s performance
 Disadvantage: rater biases

 Behaviourally Anchored Rating Scales (BARS)


o Evaluation tools that rate employees along rating scale by means of specific
behaviour examples on the scale
 Advantage: they are job-related, practical, standardized
 Disadvantage: can bias information recall

 360 Degree Performance Appraisals

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o Combination of: Managers, peers, customers, direct reports


o To evaluate performance

 Self-Appraisal
o Gives employees an opportunity to request training in areas they need to
perform

 Peer-Appraisal
o Able to identify subtle behaviours that may go un-noticed by managers
o Great opportunity to observe employees

 Management-by-Objectives (MBO) Approach


o Requires an employee and superior to jointly establish performance goals for the
future
o Employees are subsequently evaluated on how well they have obtained their
objectives
 These goals are mutually agreed on

 Assessment Centers (AC)


o A standardized form of employee appraisal that replies on multiple types of
evaluation and accessors
 Usually applied to groups of middle-level managers who appear to have
potential

Implications of the Appraisal Process


 Training Raters and Employees
 Rater Biases
o Bias is a distortion of a measurement
 Halo Effect
 Occurs when an evaluation allows some information to
disproportionately affect the final evaluation
 Error of Central Tendency
 An error in rating employees that consists of evaluating
employees as neither good nor poor performers even when some
employees perform exceptionally well or poorly
 Leniency Bias / Strictness
 A tendency to rate employees higher than their performance
justifies
 Strictness Bias

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 A tendency to rate employees lower than their performance


justifies
 Recency Effect
 A rater bias that occurs when the rater allows recent employee
performance to sway the overall evaluation of the employee’s
performance unduly
 Contrast Error
 A rater bias occurring when a rater compares employee’s to each
other rather than to a performance standard

 Evaluation Interviews
o Performance review sessions that give employee’s feedback about their past
performance or future potential

 Performance Improvement Plan (PIP)


o Effective way of giving an employee struggling to meet performance standards
the opportunity to succeed, while still holding them accountable for past
performance
 HR Management Feedback
o High numbers of poor performers may indicate errors elsewhere in the HR
management function

Legal Implications of Performance Appraisal


- A performance appraisal form is a legal document
- Non-relevant criteria can be avoided if performance standards are established
through a thorough job analysis and recorded in a job description

 Talent Management
o Involves identifying and developing specific individuals within the organization
who are seen as having high potential

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Chapter 9: Compensation Management

Objectives of Compensation Management


 Acquire qualified personnel
 Retain present employees
 Ensure equity
 Reward desired behaviour
 Control costs
 Comply w/ legal regulations
 Further administrative efficiency

 Canada Labour Code


o Requires to pay employees minimum wage
o To pay 1.5x more for overtime

Job Evaluation
Systematic process of assessing job content and ranking jobs according to a consistent set of
job characteristics and worker traits
Identifies which job should be paid more form than others
 Job Ranking
o A form of job evaluation in which jobs are ranked subjectively according to their
overall worth to the organization
 Job Grading
o A form of job evaluation that assigns jobs to predetermined job classifications
according to their relative worth to the organization
 Point System
o Assessed the relative importance of the job’s key factors in order to arrive at the
relative worth of jobs
 Evaluates critical/compensable factors of each job
 Determines different levels of degrees/levels for each factor
 Job Grade
1. Simple, highly repetitive work, done under close supervision; minimal training
and little responsibility
a. Ex. janitor

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2. Simple, repetitive work – some training required – employee expected to have


some responsibility
a. Ex. administrative assistant
3. Simple work with little variation, under general supervision – training required
and minimal responsibilities
a. Ex. machine oiler
4. Moderately complex work, some variation and general supervision. Employee
responsible for safety and equipment. Regularly exhibits initiate.
a. Ex. machine operator
5. Complex work, varied, general supervision. Advanced skill required. Employee
responsible for safety and high degree of initiative.
a. Ex. tool and die specialist

Wage and Salary Surveys


 Internal Equity
o Perceived equity of a pay system in an organization
 External Equity
o Perceived fairness in pay relative to what other employers are paying for the
same work
 Wage and Salary Surveys
o Studies made of wages and salaries paid by other organizations within the
employer’s labour market
 Labour Market: area from which employer recruits, usually local
community
 Sources of Compensation Data
 Employment and Social Development Canada
 Canadian Human Resource Centers
 Employee Associations
 Professional Associations
 Private Consultations

Pricing Jobs
Includes two activities:
1. Establishing the appropriate pay level/job
2. Grouping the different pay levels into a structure that can be managed effectively

 Key Job
o Similar and common in the organization and its labour market

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 Rate Range
o A pay range for each job class
 Merit Raise
o A pay increase given to individual workers according to an evaluation of their
performance

Challenges Affecting Compensation


 Prevailing Wage Rates
o Some jobs must be paid more for their relative worth because of market forces
 Red-Circled Rate
o A rate of pay higher than contractual, or formerly established, rate for the job
 Less than minimum = green – circled
 Union Power
o When unions represent a portion of the work force, they use their power to
obtain wage rate

 Wage and Salary Policies


o Compa-Ratio: an index that indicates how an individuals or a groups salary
relates to the midpoint of their relevant pay grades
 ratio above/below 1 that the individual’s salary is above/below the
midpoint of the pay grade
 the pay-grade midpoint can be viewed as a benchmark for salary decision
criteria such as performance, tenure and experience

 Government Constraints
o Canada Labour Code
 Most comprehensive law affecting compensation rights for organizations
under federal jurisdictions
 = Federal law regulating labour regulations under federal jurisdiction
o Minimum wage applies to most but farm workers

Pay Equity
A policy to eliminate the gap between income of women/men, ensuring salary ranges
correspond with the amount of work done
 Equal Pay for Work of Equal Value
o The principle of equal pay for men and women in jobs with my comparable
content; based on the criteria of skill, effort, responsibility and working
conditions; part of Canada’s Human Rights Act

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 Equal Pay for Equal Work


o Policy of equal rates of pay for all employee’s in an establishment performing the
same kind and amount of work, regardless of sex, race etc.
 Factors that can affect wage gaps
1. Different Performance Ratings
2. Seniority
3. Red-Circling (b/c of job re-evaluation)
4. Rehabilitation Assignment
5. Demotion Pay Procedures (unsatisfactory work)
6. Procedure of Phased-In Wage Reductions
7. Temporary Training Positions

 Incentive Pay
o Production bonuses, commission
o Can influence employee performance
o Disadvantages of Incentive Pay Systems
 External forces, not related to performance, can affect the ability of
employees to meet a pre-determined standard
 The administration of an incentive system can be complex

 Piecework
o A type of incentive system that compensates workers for each unit of output
 Daily/weekly pay is determining by multiplying the output in unit’s X the
piece rate per unit
 Piecework does not always mean higher productivity

 Production Bonuses
o A type of incentive system that provides employees with additional
compensation when they surpass stated production goals

 Commissions
o In sales jobs, a salesperson is paid a percentage of the selling price for each unit
sold

 Executive Initiatives
o Executives are sometimes granted stock options, that is, the right to purchase a
company’s stick at a predetermined price
o Price could be set at/below/above the market value of the stock

 Profit-Sharing Plan

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o A system whereby an employer pays compensation or benefits to employee’s,


usually, on an annual basis, in addition to their regular wag, on the basis of the
profits of the company
 Advantage: employee’s feel and act like owners, helping to make the
organization more effective

 Employee Stock Ownership Plan (ESOP)


o One study indicates over 11000 of such plans cover almost 9 million employee’s
o Can be modelled to fit the special needs of a company:
 Attract/retain employee’s – knowledge
 Motivate employees to promote productivity
 Recue a failing firm
 Provide a source of additional financial
 Create something for firms to offer in lieu of wage and salary increases

 Scanlon Plan
o An incentive plan developed by Joseph Scanlon
o That has as its general objective the reduction of labour costs through increased
efficiency and the sharing of resultant savings among workers

 Pay Secrecy
o A management policy not to discuss/publish individual’s salary

Advantages Disadvantages

most prefer to keep their pay a secret may generate distrust in the pay system
gives managers greater freedom employees may percieve that there is no
covers up inequities in the interal pay relationship between pay and performance
structure

New Approaches to Pay


 Skill or Knowledge Based Pay
o A pay system based on the skills/knowledge that an employee has (in contrast to
the more common job-based pay)
 Autonomous Work Groups
o Any of a variety of arrangements that allow employees to decide democratically
how they will meet their groups work objectives

o Greatest advantage of skill-based pay is the flexibility of the workplace


o This includes filling in after turnovers and covering for absenteeism, for
employees who are being trained, and for those who are in meetings

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 Total Reward Model


o Inclusion of everything employees value in an employment relationship
 Reward system tailor-made for the organization

 Broad-banding
o Technique that collapses salary grades into only a few “broad-brands” each with
a sizable range
o Advantage:
 It fosters cross-functional growth/development
 Allows job responsibilities to be defined more broadly and flexibly
 It supports organizations that have eliminated levels of managerial
positions
 It allows employees to gain a depth of experience by moving laterally
across functions

Pay and Organizational Strategy


1. Motivating Performance
2. Identifying Valued Rewards
3. Relating Rewards to Performance
4. Setting Performance Goals
5. Motivation and Punishment
6. Motivating Skill and Knowledge Development
7. Fostering Attraction and Retention

 Objectives of Variable Pay


o Improve business performance through changed employee behaviour
o To control labour costs
o To keep compensation competitive

 Skill-based pay structures encourage leaner staff because of employee turnover


 Absenteeism can be covered by current multi-skilled workers

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Chapter 10: Employee Benefits and Services

Employee Benefits
 Direct Compensation = Pay
o Based on critical job factors / performance
 Indirect Compensation = Benefits
o Usually extended as a condition of employment and does not relate to
performance
o Includes:
 Reduce fatigue  Aid recruitment
 Discourage labour  Reduce turnover
unrest  Minimize overtime
 Satisfy employee costs
objectives
 Total Compensation = Benefits, Salary and Incentive Pay

Benefits and Corporate Strategy


50% mark of annual payroll expenses to support their extensive benefit programs

The Role of Indirect Compensation


 Societal Objectives
o Benefits / Services give many employees financial security

Sources of Financial Protection for Workers


 Protection for Workers
o Fair remuneration o Industrial accidents
o Retirement o Medical care
o Involuntary unemployment o Child sustenance

 Sources of Protection

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Federal Fed/Prov Provincial

Canadian Pension Plan Minimum Wage Acts Health Insurance


Employment Insurance Workers Compensation
Family Allowances Act

 Canadian Pension Plan (CPP)


o A mandatory, contributory and portable pension plan applicable to all
employees and self-employed persons in Canada
o Except those working for the Federal government

 Contributory Plans
o Benefits that require the employer to contribute to the cost of the benefit

 Portability Costs
o Allow accumulated pension rights to be transferred to another employer when
an employee changes employers

 Employment Insurance
o A program to help alleviate the financial problems of workers in Canada during
the transition from one job to another

 Employment Act (2001-2002)


o Benefits based on hours rather than weeks worked
o Collection of premiums based on 1st dollar earned
o Reduction in the maximum benefit entitlement period
o Increased eligibility required for people entering the labour market
o Reduction in benefit rate based on an individual’s claim policy
o A family income supplement top-up for claimants in low-income families
o A lower income threshold for the claw back of benefits

 Workers’ Compensation
o Compensation payable to employers collectively for injuries sustained by worker
in the course of their employment

 Health Insurance Plans


o Health and medical insurance provided by provincial governments with
assistance from the federal government

 Holidays / Vacations
o Based on an employee’s length of service
o But Federal / Provincial laws specify a 2-week minimum vacation entitlement

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 Saskatchewan = 3-weeks

Voluntary Benefits
 Life Insurance
o Group life insurance has become a practically universal element in corporate
employee benefit programs

 Health-Related Insurance
o All Canadian citizens are covered

 Salary Continuation Plans


o Short-Term Disability Plan
 Involves crediting / allocating a certain number of days to an employee,
to be used as sick leave for non-occupational accidents/illnesses
 A benefit plan crediting a number of days to be used as sick leave
o Long-Term Disability Pan
 A benefit plan providing the employee with an income in the case of
long-term illness/injury

 Severance Pay
o Payment to worker upon permanent separation from a company

 Guaranteed Annual Wage (GAW)


o A benefits plan by which an employer assures employees that they will receive a
minimum annuals income regardless of layoffs and lack of work

 Supplemental Unemployment Benefits (SUB)


o Private plans providing compensation for wage loss to laid-off workers

 Defined Benefits (DB) Plan


o A benefits plan whose benefits are define by a formula based on age and length
of service, with the employer assuming responsibility for funding
 Defined Contribution (DC) Plan
o A benefit plan based on amounts contributed by the employer and the
employee, the final pension depending on amounts contributed, investment
income and economic conditions at retirement
 With a DC plan, employees have more control over their investments,
because they own their retirement account individually
 Vesting

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o Gives employees the rights to pension benefits even if they leave the country,
after a certain number of years served

 Pension Benefits Standards Act


o A federal act regulating pension plans in industries under the jurisdiction of the
Government of Canada

 Paid-Time Off Benefits


o On-the-Job Break
 Ex. rest breaks, meal breaks, wash-up time
 Productivity may be increased
o Paid Sick Leave
 Granting a number of days/year
 Most abused benefit
 To minimize abuses, companies require verification
 “Personal Leave Days” to avoid abuse
o Holidays / Vacation
 You get certain days depending on how long you’ve worked there for

 Educational Assistance
o Tuition refund programs: completely / partially reimburses employees for
further education

 Financial Services
o Employee discount plans
o Stock purchase programs

 Employee Assistance Programs (EAP)


o Comprehensive company program that seeks to help employees and their family
members overcome personal and work-related problems
 Personal Problems: child care, transportation, counselling, family prob.

 Relocation Program
o Company-sponsored benefit that assists employees who must move in
connection with their job
 Subsidized home mortgages
 Reimbursement of moving expenses
 Paid house-hunting trips
 Placement assistance for working spouses
 Family counselling to relieve stress

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 Online Service Delivery


o EAP services available to employees through the internet
 Group-help bulletin boards
 Live chat rooms

Emerging Services and Trends


Benefits in higher demand over 10 years:
 Increased medical coverage, optometry and dental
 More and longer vacations
 Increased pension coverage, cost-of-living adjustments with pension plan, earlier vesting
 Child and elder care
 Benefits to part-time employees / retirees
 Prepaid legal advice
 All benefits to same-sex couples under Federal / Provincial legislation

Management of Voluntary Benefit and Service Programs


 Problems in Administration
o Lack of employee involvement

 Flexible Benefit Programs (FBP)


o Programs that allow employees to select the mix of benefits/services that will
answer their individual needs
 Also known as “Cafeteria Benefit Programs”
 Allows employees to become familiar with the costs related to their
benefits
 They are useful in hiring and retaining employees
 Changing lifestyles have caused employees to reconsider the needs for
certain traditional benefits
 They permit employers to restrict their contributions without alienating
employees

 Retention
o A company’s ability to keep employees
o Innovative/flexible benefits plans are effective tools

 Benefit Audit = controls efficiency of a benefit program


o 2 components:
 claims audit = examines claims and trends

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 organization audit = examines efficiency and effectiveness of handling


employee benefits
o Enables employees to:
 Identify opportunities for financial and HR savings
 Ensure that insurers are doing good
 Exert effective control over their benefits

 Goods and Service Tax to Benefits (1991)


 Company cars (if used  Holiday trips within North
privately) America
 Car operating costs  Frequent flyer points
 Tax return preparation  Financial counselling
 Short-term residential  parking
accommodation

 Advantage of Flexible Benefits Plan


o Decrease overall costs of healthcare
o They can have a positive effect on the attitudes and behaviours of employees
o They can have tax ramifications for employees (positive)

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Chapter 11: Managing Employee Relations

Strategic Importance of Employee Relations


 Why are these practices important?
1. Good employee practices improve productivity
a. 2 factors: ability and attitude
i. able to perform the task (training)
ii. willingness to do the job (motivation)
2. Ensure implementation of organization activities
a. Makes sure goals are communicated to the employees and discussed
3. Reduce employment costs
a. Reduced absenteeism / turnover can emerge
b. Employers get a recruiting advantage, most applicants want to be treated
fairly and want career growth
4. Help employees grow and develop
a. HR departments help employees achieve their personal goals

 5 Major Components of Good Employee Relations


1. communication
2. counselling
3. discipline
4. rights
5. involvement

Effective Employee Communication


 Downward communication
o Information that begins at some point in the organization and feeds down the
organization hierarchy to inform or influence others
 Top-Down Methods: important for decision makers to have their
decisions carried out

 Upward Communication
o Communication that begins in the organization and proceeds up the hierarchy to
inform / influence other
 Informal communication can be sufficient for most situations
o Grapevine Communication
 Informal communication that arises from normal social interactions

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 Human Resource Management and Technology


o HR Departments use cloud for:
 payroll administration
 Self-serve applications
 File/record management
 Employee communication

Resolution Techniques (Informal – Formal)


 In-House Complaint Procedure
o Formal methods through which an employee can register a complaint
1. Open Door Policy
a. Formal methods through which an employee can register a
complaint
2. Peer Review Panel (or ombudsperson)
a. Hears employee’s presentation of the problem and makes
recommendations
i. 90% disputes are settled at this level
3. Mediation
a. A neutral third-party meets with both parties and tries to resolve
issues
4. Arbitration
a. A neutral third party hears both views and makes a binding
decision

 Suggestion Systems
o Formal method of generating, evaluating, and implementing employee ideas
o Begins with an employee’s idea and a discussion with the supervisor

 Employee Attitude / Opinion Survey


o A systematic method of determining what employee’s think of their organization
 Survey seeks to learn what an employee thinks about working conditions,
supervision, HR policies and other organizational issues

Employee Counselling
 Counselling
o The discussion of a problem with an employee, with the general objective of
helping the worker resolve the issue or cope with the situation so he/she can
become more effective
 Employee Assistant Programs

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Employee Discipline
 Discipline
o Management action to ensure compliance with organization standards
o 2 types of Discipline
 Preventive
 Action taken prior to an infraction to encourage employees to
follow standards and rules
 If employee’s do not know what standards are expected, their
conduct is most likely going to be misdirected
 Corrective
 Discipline that follows a rule infraction
 Seeks to discourage further infractions so that future acts are
incompliance with standards
 Objectives of disciplinary action:
o To reform offender
o To deter others from similar actions
o To maintain consistent, effective group standards

 Restrictions on Discipline
o Due Process
 In a disciplinary situation, the following of proper, established rules and
procedures, and giving employees the opportunity to respond to
allegations
o Hot-Stove Rule
 The principle that disciplinary action should be like what happens when
you touch a hot-stove:
 It is with warning, immediate, consistent and impersonal

 Progressive Discipline
o The use of stronger and stronger penalties for repeated offences
o System:
1. verbal reprimand by supervisor
2. written reprimand, with a record in file
3. 1 to 3-day suspension from work
4. suspension for 1-week or longer
5. discharge for cause

Dismissal
Ultimate disciplinary action is separation.
 Wrongful Dismissal

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o Terminating an employee without just cause or without giving the employee


reasonable notice or compensation in lieu of notice

 Just Cause
o Legal ground for termination such as employee misconduct or incompetence
o Carefully planned termination interview to ensure separation is positive and
smooth

 Requirements in Dismissing an Incompetent Employee


1. The employer must provide reasonable, objective standards of
performance in a clear and understandable manner
2. The employee must fall to meet those standards
3. The employer must have given the employee a clear and unequivocal
warning that they have failed to meet the standards, including particular
to the specific deficiency
4. The warning must clearly indicate the employee will be dismissed if they
fail to meet the requisite standards

 Employee Misconduct
1. Unfaithful service to the employer
2. Misconduct of general nature
3. Theft, fraud or dishonesty
4. Willful disobedience of a reasonable and lawful order (includes
absenteeism, tardiness, breach of rules, underperformance)

 Constructive Dismissal
o A major change in terms of the employment contract that results in an employee
resigning
 Instead of terminating an employee, the employer changes the job so
that the employee decides to quit on their own
 Reasonable Notice
o If there is no just cause for dismissal, they must get compensation in lieu of
notice
 Managing the dismissal
 Prepare for the interview and conduct a rehearsal
 Conduct the interview in private
 Consider the dismissal process from the employee’s perspective and ask
“how would I like to be treated in such a situation?”
 Get to the point (within the first few sentences)
 Set a time and place (morning, muddle of the week)
 Have any necessary information ready
 Notify others so duties are covered

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 May need special security arrangements


 Discuss the process with colleagues who have also terminated employees

Employee Rights
Relating to working conditions and job security – some are protected under the law
 Right to Privacy
o Employers have to be careful in only collecting job-related information when
hiring
 Personal Information Protection and Electronic Documents Act (PIPEDA)
o Federal law that sets out ground rules for how private sector organization may
collect, use and disclose personal information
o !0 Principles:
1. Accountability
2. Identifying Purposes
3. Consent
4. Limiting Collection
5. Limiting Use, Disclosure, Retention
6. Accuracy
7. Safeguards
8. Openness
9. Individual Access
10. Challenging Compliance

Employee Involvement
 Increases employee productivity and satisfaction
 Employee Involvement (EI)
o Empowers employees to participate in decisions that affect them and their
relationship with the organization

 Self-Directed Work Teams (groups)


o Teams of workers without a formal, employer-appointed supervisor who decide
among themselves most matters traditionally handled by a supervisor

 High-Involvement Work Practices


o A set of human resource practices aimed at increasing employee performance
 Lower turnover
 Higher productivity
 Improved financial performance

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Job Security
 No-Layoff Policies
 Organizational Downsizing
1. Workforce Reduction
2. Work Redesign
3. Systematic Change

 Behaviours when thinking of quitting:


1. Offering fewer constructive contributions in meetings
2. Being reluctant to commit to long-term projects
3. Acting more reserved and quiet
4. Less interesting in advancing in the organization
5. Showing less interest in pleasing the boss
6. Avoiding social relationships
7. Suggesting fewer ideas
8. Doing the minimum amount of work
9. Participating less in development programs
10. A drop in productivity

 Benefits of (ADR) Programs – Alternate Dispute Resolution


o Timely resolution
o Reduced legal costs

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Chapter 12: Ensuring Health and Safety at the Workplace

 Assumption of Risk
o The worker accepts all the customary risks associated with their occupation
 Careless Worker Model
o The early approach to safety in the workplace, which assumed that most
accidents were due to worker’s failures to be careful or to protect themselves
 Shared Responsibility Model
o A newer approach to safety in the workplace that assumes the best method to
reduce accident rates relies on the cooperation of the employer and the
employees (who may be represented as a union)

Workplace Injuries and Health Hazards


 Direct Costs of Injuries
o Lost wages
o First aid and medical treatment
o Rehabilitation
o Disability compensation
 Indirect Costs
o Lost production
o Recruiting
o Selecting and training of new employees
o Damage to facilities and equipment
 Most Dangerous Industries Considering Time-Loss Injuries
o Fishing
o Construction
o Manufacturing
o Transportation
 Most common injury:
 Strains and sprains, cuts, contusions, crushing and bruises
 Health Hazards
1. Physical Agents – noise, temperature, lighting
2. Biological Agents / Biohazards and Chemicals
3. Ergonomically Related Injuries – caused by work related environment –
repetitive strain, fatigue, back injuries
 Young Workers and Workplace Safety
o 25% work related injuries are between ages 15-29

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o more than 50% get injured within 6 months of starting


o most common injuries for youth: machine and electrocution

Federal and Provincial Safety Regulations


 Federal Level
o Canada Labour Code
 Provides regulations to deal with various occupational safety problems

1. The right to know about hazards in the workplace


2. The right to participate in correcting those hazards
3. The right to reuse dangerous work

o Workplace Health and Safety Committee


 A group consisting of representatives of the employer and employees
that meets regularly in order to reduce accident rates
 Required for 20 or more employees
 Meet 9 times a year, regular hours (inspect)
 Disposing of health/safety complaints
 Participating in investigations of complaints
 Keeping adequate records of hazards
 Participating in making changes

o Hazardous Products Acts


 Regulation concerns hazard classification and communication

o Workplace Hazardous Materials Information System (WHMIS)


 Legislation that requires suppliers to label all hazardous products and
provide a material safety data sheet on each

o Transportation of Dangerous Goods Act


 Makes Transport Canada responsible for handling and transporting
dangerous materials by federally regulating shipping
 Requires goods to be identified, that a carrier be informed of
them and that they be classified according to a coding system

 Shift Workers
o a higher chance of workplace injury

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Responsibility for Health and Safety


 Bill C-45
o Anyone who has the authority to direct others to work, has the legal duty to take
reasonable steps to prevent bodily harm to anyone performing the task

 An Effective Safety Program


o Accident investigation and analysis
o Communication skill and report writing
o Overview of legislation requirements
o Meeting with management and objective setting
o Organization and responsibility of joint health and safety committee
o Team problem-solving / problem solving techniques
o Audits and inspections
o Principles of occupational health and safety
o Ergonomics

 About 90% of safety professionals report seeing workers not wearing protections

Workplace Stress
- Harmful physical / emotional stress due to conflict in the workplace

 Stressors
o Stressful working conditions that can directly influence the health and safety of
employees
o Acute / Chronic Stressors

 Most Stressful Jobs


o Firefighter o Military personnel and
o Airline pilot general police officer
o Police officer
 Least Stressful Jobs
o Hairstylist o Medical records technician
o Audiologist o Jeweler
o University professor

 Poor Supervision Causes Stress


o Insecure workplace climate
o Lack of performance feedback

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o Inadequate authority

 Burnout
o A condition of mental, emotional, and sometimes physical exhaustion that
results from substantial and prolonged stress
 Can occur to any type of employee

 Curative Measures
o Some employers give employees the opportunity to relax through such activities
as exercises, yoga, and meditation
 Try to correct the outcome of stress

 Preventative Measures
o Different types of approaches, for one could be stress management training
sessions
 Change the cause of stress

 Safety Compliance
o Likelihood that employees will follow safety procedures and carry out their work
safely

 How Effective Are Wellness Programs?


o Improve employee health
o Decrease health care costs
o Improve employee satisfaction
o Decrease absenteeism and turnover
o Improve corporate image
o Reduce disability claims

Other Contemporary Safety Issues


 Sick Building Syndrome (SBS)
o Used to describe situations in which employees experience acute health and
comfort effects that appear to be linked to the length of time spend in a building
but no specific illness has been identified

 Workplace Violence
o In US
 9% of workplace deaths = homicides
 with 80% resulting from gunshots
o workplace violence is the 2nd highest cause of workplace death for women

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o workplace bullying can cause mental issues

 Ergonomics (human factors engineering)


o Focuses on employees and their total work environment
o Ensures physical and behavioural characteristics of the employee are suitable for
the job
o To improve safety and productivity

Aids
 If an employee is HIV positive, develops AIDS or happens to mention that they have it
o It is a breach of human right laws to discriminate against that person
 Successful AIDS Program
1. A Policy (regarding affected employees)
a. Protect employee privacy
b. Guarantee employee won’t be isolated
c. Keep them productive
2. Mandatory Training (for managers)
a. Present facts on HIV, add personal concerns
b. Discuss how to manage concerns
c. Reiterate company policy and job reconstructing
3. Education Programs (for all employees)
a. Explain policy
b. Present facts on prevention and transmission
c. Provide workshops and empathize
4. Counselling and Support
a. Help employees with AIDS to cope
b. Assist those coming in terms with an employee

Occupational Health and Safety


 Top management should set health and safety standards

 Cause of accidents should be identified and eliminated or controlled to prevent it

 HR department should use its information system to monitor accident patterns or health
problems
o Effective training program is critical

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Chapter 13: The Union – Management Framework

 Union
o An organization with the legal authority to represent workers, negotiate the
terms and conditions of employment with the employer, and administrator the
collective agreement.
 Many successful companies have one or more unions among employees

 Industrial Relations Perspective


1. Conflict stems from an employer – employee power imbalance
2. Conflict between labour and management is enduring
3. Correcting the power imbalance between labour and management often
requires institutional intervention in the forms of union representation
and legislation
4. Conflict can be constructive even when the conflict is addressed in an
adversarial, non-problem-solving fashion

 Human Resource Perspective


1. Conflict stems from poor management
2. Conflict can be partially reduced by organizational and workplace
innovations that build an employee-employer unity of interests
3. Conflict can further be reduced by co-operative unity of interests
4. As a result of improved management, conflict will fade from the
employment relationship

Why Employees Seek Union Representation


 Collective Agreement (“rule book”)
o Addresses a variety of issues including:
 Wages and benefits
 Hours of work
 Working conditions
 Safety standards
 Work assignments
 Probationary periods
o Usually negotiated between the local unions
o Places restrictions on management rights

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 Causes of Unionization
o Reasons for joining vary – not a single force motivates

o Union Push Explanation


 Some employees are pushed/forced into joining because of the employer
treatment of the workforce
 Peer pressure by co-workers to join a union
 Collective agreement provisions requiring an employee to join if they
want the job in question
o Union Pull Explanation
 Employees are pulled into the union because of the benefits of union
representation
 Ex. higher wages, job security, greater benefits and grievance
representation

Labour Unions: Goals and Structure


Labour unions alter the work environment.
 Business Unionism
o A type of unionism whose mission is to protect workers, increase wages and
working conditions and to help workers in general
o Recognizes a union can only last if it delivers a needed service to its member’s in
a business-like manner

 Social (reform) Unionism


o A type of unionism that tries to influence the economic and social policies of
government at all levels
o Union leaders pursue such objectives by speaking out for or against government
programs
o Local Unions
 They provide the members, the revenue and the power of the entire
movement
o Craft Unions
 Where members share a skill/occupation
o Industrial Union
 Includes unskilled / semi-skilled workers at a particular location
o National / International Unions
 Many local unions are part of a larger union (a national union)

 Canadian Labour Congress (CLC)

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o An organization, with a membership of about 3.3 million, that represents many


unions in Canada

Trends in Union Membership


 Union Growth and Decline
o 2012 – about 4.7 million workers were covered by collective agreements (union
coverage rate of 30%)
 1967 – unions were 20% women
 now – more than 50% women

The Impact of Union Representation


 Strikes
1. Strikes a Mistake / Misjudgment
a. Parties have uncertain information
b. Both teams are inexperienced negotiators
2. Strikes as a Collective Voice
a. Not as a mistake but because they all believe that a worker is not
being treated fairly
b. A trike is a mechanism to voice discontent to management

In a strike environment:
- Financial pressures on employees (extended strike)
- Disruption in family patterns and routines
- Return to work in a conflict
- Emotional harm

 Factors that Determine Lower Strike Activity


o Workers had more autonomy in the workplace
o The union was in a strategically weak position
o Employers have a large share of the market
o The employer introduced progressive HR Management practices

 Unions and Productivity


o Studies show that unions:
 Reduce employee turnover
 Increase tenure with the firm
 Raise productivity or output per worker

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The Legal Environment


 Core of Canadian Labour Legislation
o Right to join a union o Prohibition on unfair labour
o Good faith bargaining practices
o No strikes or lockouts during o Conciliation
the life of the collective
agreement

 Labour Relations Board (LRB’s)


o Boards set up in the federal and provincial jurisdictions to administrator labour
reactions legislation
 These agencies investigate violations of the law

The Collective Bargaining Process


 Collective Bargaining
o Negotiations between union representatives and management to arrive at a
collective agreement

 Authorization Cards
o Cards signed by workers to join a union. Depending on the jurisdiction, a union
may be certified either on the basis of card signatures or as a result of an
election

 Union Organizers
o Can help educate the workers by explaining how the union can help the and
reduce mistreatment
 Professionals only assist workers; they do not cause workers to join a
union

 Unfair Labour Practices


o Prohibited conduct of an employer or union
o Required that management neither interfere with nor discriminate against
employees who undertake collective action

 Obtaining Bargaining Rights


1. Voluntary Recognition
2. Regular Certification by a Labour Relations Board
3. Prehearing Votes

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Negotiating a Collective Agreement


 The Collective Bargaining Process (3 overlapping steps)
1. Preparation for Negotiations
2. Face-to-Face Negotiations
3. Follow-Up Activities

 Management Rights
o Rights that provide management with the freedom to operate the business
subject to any terms in the collective agreement

 Residual Rights Theory: of Management


o Employers argue that they have the authority over all issues not contained in the
collective agreement

 Negotiating with the Union


o Face-to-face bargaining, discussions start as much as 60-90 days before the end
of the present contract
o Negotiations Include:
 Hours of work
 Wages
 Working condition

 Mutual Gains Bargaining


o Moves away from “us vs. them” or “win-loss”
o In favour of “win-win” where both parties work together to solve common
problems

 Bargaining stage is complete of negotiations when the agreement has been approved of
 Conciliation
o Use of government appointed third-party to explore solutions to a labour-
management dispute
 Mediation
o Use of a neutral third-party to help settle a labour-management dispute
 Mediator will meet parties separately

Administering the Collective Agreement


 Grievance Procedure
o A formalized procedure for resolving dispute s if the parties have a disagreement
regarding the interpretation of a term of the collective agreement

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 Typical Steps in a Grievance Procedure


Preliminary discussion
1. Complaint in writing and formally presented
2. Chief takes complaint to superintendent
3. Complain submitted to plant manager
4. If step 3 doesn’t resolve it, the complaint is taken to an arbitrator
 Arbitration
o Settling of a dispute between labour and management by a third party
o 2 Problems: costs and unacceptable solutions

 Contract Provisions
o Clauses in a collection agreement that define the rights and obligations of the
employer and the union
o Common Provisions:
 Union recognition  Wage rates
 Union security  Cost of living
 Pension benefits  Insurance benefits
 Income maintenance  Seniority clause
 Time-off benefits  Discipline
 Management rights  Dispute resolution
 Duration of an
agreement

 Union Security
o Highest form of security: closed shop (found in 8% of agreements)
o Closed Shop: requires an employee to be a union member prior to obtaining
employment and to pay dues to the union
o Under a Union Shop: employer is free to hire an individual but as a condition of
employment, the new hire must join the union within a specific period of time
after being hired and pay union dues
 if they refuse: employer is required to terminate the employee

 Seniority
o Length of the worker’s employment, which may be used for determining order
of promotion, layoffs, vacation etc.

 Precedent
o A new standard that arise from the past practices of either the company or union
 Once a precedent result from unequal enforcement of disciplinary rules,
the new standard may affect similar cases in the future

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Public Sector Bargaining


 Public Service Staff Relations Act (PSSRA)
o Provides federal public servants with the right unionize and either opt for
compulsory arbitration or strike if a deadlock in bargaining occurs
 Bargain for wages, hours, and conditions

Implications of Union Avoidance Approaches


 Union Suppression: fighting union representation
 Union Substitution: examines what unions bring to the employment relationship and
then tries to introduce such features into the non-union workplace

Managing a Union Environment


 Labour – Management Cooperation
o Some unions and employers are moving towards greater cooperation and there
is increasing acceptance that labour and management must work together if
they are to survive and prosper in the highly competitive global economy

 Methods of Building Labour – Management Cooperation


o Managers and HR specialists can build cooperation between the employer and
the union through:
1. Prior Consultations
2. Sincere Concern
3. Training Programs
4. Joint Study Committees
5. Third Parties

 Final method of building cooperation is through the use of third parties

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