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Chapter 9

Human Resource
Management

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.1

Human Resource
Management
The integration of all processes,
programs, and systems in an
organization that ensure staff are
acquired and used in an effective
way
Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc.

FOM 9.2

Strategic Human Resource


Management (Exhibit 9-1)
HR planning
Recruitment
Selection
Organizational and
work design
Training and
development
Performance review
Compensation
Labour relations

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.3

Strategic Importance of HRM

Can establish an organizations sustainable


competitive advantage

Requires fundamental change in how


managers think about employees

Shortfall of 500 million workers

Partners and Investments

Need to consider outsourcing certain HR


transactions

But then what does the HR dept. do?

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.4

Legal Environment of HRM

Federal and provincial governments


influenced HRM through laws and regulations

Huge increase in this since 1960s

Employers must ensure that managers


understand their obligations and comply
Four primary areas of employment legislation

Lets look at the Main One

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.5

Human Rights Legislation

Has the most impact on HR decisions


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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.6

Other Employment Legislation

Employment standards

Basic or minimum employment conditions in an


organization

Health and safety

Minimum wage, hours of work, OT pay

Healthy and Safe work Environment


On the Job Injuries

Labour relations

Relationship between union and employer


Not all organizations are covered by Labour
Relations

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.7

Global Laws and HRM

Laws and regulations are not the same


throughout the world

Working Conditions, Pay, H&S

Important for manage to know the


legislation in the country in which they
are working

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.8

Human Resource Planning


Assessing Current
Human Resources

Assessing Future
Human Resource
Needs

Developing a
Program to Meet
Needs
Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc.

FOM 9.9

HR Planning

We have found the gap, how do we fill


this void?
How much time should we spend on
identifying the right person?
Lets follow the trail of what it takes to
hire a new team member in an
oganization.

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.10

Recruitment

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

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

FOM 9.11

School
Placement

Internal
Searches

Employee
Leasing

Recruitment
Sources

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

Employee
Referrals

Temp
Services

Advertisements

FOM 9.12

Selection

Prediction exercise

Thus, Not Perfect

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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.13

Selection

Are there ways that managers can


ensure that the decision achieves the
desired outcome? (time and time again)

Yes, use HR Tools which are Reliable &


Valid

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.14

Reliability

Degree to which selection tool measures


the same thing consistently
Can be a test or an interview
Same questions need to be asked.

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.15

Validity

Relationship between selection tool and


appropriate criterion
What a selection technique measures
and how well it measures
Must be proven and relevant to job

Eg: keyboarding skills for data entry clerk.

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.16

The Effectiveness of
Interviews

Prior knowledge about an applicant


Attitude of the interviewer
The order of the interview
Negative information
The first five minutes
The content of the interview
The validity of the interview
Structured versus unstructured interviews

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.17

Common Types of Interviews

Non-directive

Behavioural Description

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

Structured

Panel
Situational

Why is a Situational Analysis Good.

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.18

Interview Questions

Lets come up with some interview


questions!

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.19

Written Tests

Intelligence
General aptitude
Ability
Interest

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.20

Reference Checks

Potential employer seeks to verify


information
Important to have well-constructed
questions
Can you Outsource This?
How far can you dig?

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.21

Your Hired

Now What?
Most Important Stage

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.22

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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.23

Training and Development

Learning experience that seeks


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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.24

Employee Training
What deficiencies, if any,
does job holder have in
terms of skills, knowledge,
abilities, and behaviours?

Is there a
need for
training?

What behaviours are


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

What are
the strategic
goals of the
organization?

What tasks must


be completed
to achieve
goals?
FOM 9.25

Training

Can you Train Someone out of a job?

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.26

Performance Management

Integration of management practices that


includes a formal review of employee
performance

How often should this take place?

Includes establishing performance standards


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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.27

Performance Review Methods


Written
Essay

Graphic
Rating Scales

Critical
Incidents

BARS

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

Multiperson

360-Degree
Review
FOM 9.28

If Performance Falls Short

Train
Discipline
Coach
Out the Door

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.29

Compensation Management

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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.30

Factors That Influence Compensation


Employees
tenure and
performance
Size of
company

Geographical
location

Management
philosophy

Company
profitability

Level of
Compensation
and
Benefits

Labour- or
capital-intensive

Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter,


and Robin Stuart-Kotze, page 274. Copyright 2003. Reprinted by permission of
Pearson Education Canada Inc.

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

Kind of job
performed

Kind of
business

Unionization

FOM 9.29

Employee Benefits

Indirect financial rewards


Designed to enrich employees lives
Vary widely in scope
Costs range from 30% to 40% of payroll
costs

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.32

Health and Safety

Employers are responsible for ensuring


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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.33

Labour Relations

Relationship between union and employer


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

Robbins et al., Fundamentals of Management, 4th Canadian Edition


2005 Pearson Education Canada, Inc.

FOM 9.34

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