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Week 11 - HR and Labour Relations.docx

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Laura Allan

Week 10 - HR and Labour Relations Critical Success Factors  Achieving Financial Performance  Meeting Customer Needs  Providing Quality Goods and Services  Encouraging Innovation and Creativity  Gaining Employee Commitment o Most basic and fundamental part of business o Critical to company success Key Chapter Concepts: Managing Human Resources & Labour Relations  Human resource management – process o Job analysis and design – planning and forecasting – job analysis*  Critical to analyze and understand who you need  What jobs need to be done  Allows for you to be able to describe it, and specify the characteristics of a successful worker  If you don’t know what exactly needs to be done and who needs to do it, cant plan for resources or train them o Recruitment and selection  Objectives of recruitment  Once you know what you need, go out and find them  Pool of people is recruitment, selection is those you choose  Validity and reliability of selection methods  Trying to find the same information from different angles, to try and get a reliable measure of certain traits o Training and development  Training - Basic skill sets  Development is helping them reach their full potential o Performance planning and evaluation  After developing them, need to plan their projected performance and evaluate how they are progressing towards it o Compensation and benefits  Job evaluation process  Large Cost  Pay Equity  Want to make sure that you are paying people in a way that incentivizes, makes them want to work there  Labor relations in a unionized environment o A provincial responsibility o Labor movement and Negotiations  Laws – Employment Equity o Prevents discrimination, allows for diversity o Discriminating on factors based on factors other than workplace capabilities may cause employers to miss out on skilled workers  Trends Recruitment Objectives  If not careful about handling recruitment could cause them to leave  Need to be aware of needs in advance  ‘Realistic’ approach o Be honest when offering jobs, as if not will lose employees after training, etc o Recruitment is about branding company, not product  Employer Branding o Define target audience  Need to know target market  Figure out what kind of people will fill needs o Develop the employee value proposition  What it is you are offering them in terms of value  How are you different from competition  How are you messaging to them what you want o Communicate the brand  Need to communicate to the right people, the right way, that will fit the message your company is trying to send and what your company is about  Generate a qualified pool of applicants o What methods are we going to use to attract applicants (i.e. newspaper, TV ads, etc) o Looking at quality of applicants and time to get them working  Selecting recruitment methods – tools o Yield ratios  Percentage of applicants they draw that actually qualify for the jobuse methods that use higher yields o Time lapse data  How long it will take from start of recruitment to start of work Validation Of Selection Methods  Criterion Validity o Those that do well on selection method (predictor) also perform well on the job (criterion) o Want to make sure that someone who does well on selection procedures will actually do well on the job o Trying to see a correlation between predictor and criterion, and that they are directly connected o Important to ensure that performance is predicted validly  Validation Process: o Administer the selection procedure to a group of people o Correlate (compare) the results/predictor scores with performance/criterion scores  Take the results and compare them to how effective the people actually are on the job o Look for valid predictors  Look for the parts of the prediction methods that are actually valid  Predictive & Concurrent o Difference is in who administered to and implications:  Predictive Validation  Look at applicants who have just started, take selection tests then put away for time  Take out later and compare to job performance to determine test validity  Takes longer but more accurate, more representative group  Concurrent Validation  Already know how well current employees perform  Give questionnaire to them, then immediately can tell which parts of questionnaire are valid  However, as experienced will have different answers then they would when they just started  Quicker but less accurate Application To Selection Methods  Application Forms o What can you ask?  Legislation surrounding this  Only can ask what is necessary for doing job  Education and experience, no biographical data (age, sex, etc.) as not relevant o What is it used for?  Screening device to find who has basic qualifications o “Weighted application blank”  50 answer YES, 40 high performers = weight 80  Where validation process has been used, and certain answers are weighted based on predictive ability  Certain amount of time an answer is predictive of high performance  Interviews o Most common but least valid o Worst way to predict success o Least valid approach in common use o Because of interviewers and questions asked  Interviewers  Degree of variance and validity of questions  Built in biases, and questions asked are not often validated  Interviewers will be more affected more by negative than positive information  Can't replace interviewers with robots, but need to compensate for human element (bias issue)  Questions  Reason there is a problem is that questions vary between applicants  Often linked to what you're talking about, conversational links o Solution: o Interviewers:  Train, use more than one, and give feedback  Train people to avoid biases  Use more than one to balance out others biases, a series of one-on-one interviews to balance out human factor  Compare feedback so that adjustments can be made, see what didn’t notice at the time, adjust for those things o Questions:  Use job analysis as guide for developing, validate, and use “patterned” questions  Know what you need to look for from analysis and ask questions based on that  Make sure they relate to what you need and validate them  Use patterned questions in order to get consistent results and ensure different flow of questions not responsible for direct change in results  Testing o Can’t sell a test unless it has been validated o Must recognize that each companies values, circumstances, are unique o Need to validate test for own circumstances  Types of interview questions o Situational o Based on personality, will give a good sense on how they will act  Question type: Hypothetical, based on actual critical incidents from the jobs  General question form: What would you do if  Key assumption: Intentions predict actual behaviour o Behavioral / Behavior Description Interview (BDI) o Based on something that has happened  Question type: Asks about past experience the candidate has had, based on actual performance  General question form: What did you do when  Key assumption: The best predictor of future behavior is past behavior Determining Compensation  Objectives o Attract, retain, and motivate o External and internal equity, and incentives o External Equity  Pay on an equitable basis, on a competitive level with other firms o Internal Equity  Will look what other people in the firm are being paid based on what they do  Want to be compensated equally for work, equity from job to job in company  External is easier to achieve than internal  Internal equity - Job Evaluation o Pay package equal in company from job to job, people feel like they are being compensated fairly o Looking at coming up with a specific title and description for job, looking to assign it a monetary value o Develop rating system  Once a rating system developed separately, then apply them to jobs o Use job analysis to rate jobs  To make sure all jobs equitable, need a way to compare them  Use the job analysis, to apply the rating criteria to the analysis to place a value on job o Assign pay based on relative value - “Price the Pay Structure”  Assign the pay rate on relevant value to the system that has been put in place  “Point Method” o Most commonly used, expensive, perceived as most equitable o Universal factors  Skill, Effort, Responsibility, Job Conditions  Certain factors that are applicable to any job  Any job can be judged by those four things  Take each factors and break into sub factors, determine which of these sub factors are relevant to our company o Sub-factors – Degrees – Point values – Pay grades  Degree  The amount assigned to each level/degree, how important to company  Next step is to determine different amounts of the sub factors that apply to each job  Point Values  Assign point value to each degree of sub factor, how important is each criteria to our success  Pay Grades  Determine the level of pay grade that is associated with each range of point values Example Point Method Analysis  Green universal factors, under that sub factors  Scale that groups ranges of points into pay grades  Once point system determined, then use the job analysis to see which degree is involved by a specific job, to determine its point level Pricing The Pay Structure  Trend line represents mean level of pay for each job evaluation level  Around trend line is where equitable range is established at  Looking for outliers, if above or below range at any level of pay grade means they are making more or less – “Red Circle Points”  Need to move those below the range into it so they will feel compensated and don’t leave, feel better/valued  If above range, need to freeze their wage, HOWEVER CAN’T DROP IT, until other wages increase to a level that the outlier becomes a part of the equitable range Pay Equity Legislation  Reinforces idea of pay equity among different jobs  NOT “Equal Pay for Equal Work” o Equal and equitable are different things o Came about from women being paid less in workforce than men o Talking about situations where jobs are different  Prohibits paying different wages to employees who work for the same firm in jobs that are different but of comparable worth to company o Paying different wages to jobs of comparable worth, in essence forcing job evaluation o Jobs of equal value paid the same regardless of gender  Look at jobs that are female dominated, as men are not a large enough force can't compare  To ensure that they are making an equal pay, compare to a male dominated job of similar value to determine equitability o Attempts to end “systemic wage discrimination”  For a long time, traditional women’s work was valued less than women's work  Other issues that can explain difference between values of same jobs o And eliminate portion of wage gap that can’t be explained by differences in education, labour market experience, or seniority  Federal Government, Ontario & Quebec – both public and private sector o Applies to all government, and private and public firms o Only applies to companies of certain size, but applies to all as want to keep valuable employees happy o Required to develop and implement plans BUT complaint based system o In federal law for over 30 years (’77) but wage gap still exists Labour Relations: Negotiating  Pay biggest issue that gets dealt with Labour Relations In Ontario  Structure of labor movement  Relationship between union and management  Different types of unions  Certification Process  Contract administration  Negotiating strategy Structure of the Labor Movement  Tripartite System o Management  Owners o Union  Workers o Government  Regulators  Provincial laws, and where federal laws fit in  Ontario Labor Relations Act - set of rules  Ontario Labor Relations Board – administer rules set out by relations act  If have employees that work in another province as part of job, then Canadian Labor Code takes effect Union Structure  Parent o Who governs it o Head office of union, represents workers in different locations o Help with legal matters, set policy o Strike fund  Help pay workers o Do research o Help with bargaining – step in and help propel negotiations o Final authority - If local step out of line, has final authority on mat
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