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C392 - Wall, Dylan E - HR Final Notes.doc

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COMM 410
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COMMERCE 392 – 201, 202 MANAGING THE EMPLOYMENT RELATIONSHIP REVIEW QUESTIONS 2011 SECTIONS 1 – 4 I. Introduction to the Employment Relationship 1. What is “strategic human resources management?” (HRM) • Align HRM strategy (ex. Hiring smart creative employees at a premium) with business strategy (price, innovation, or service) • Notion that people in an organization constitute “human capital” • Ongoing shift, physical  mental work (quality/extent of skills and knowledge of employees critical to success of organization • Emphasizes retention of employees Goals of HRM: a) Attract best qualified applicants b) Engage employees to fully commit skills/abilities/energy c) Maximize employees’ contributions  optimize productivity & effectiveness while attaining individual objectives (aka having a challenging job & obtaining recognition) and social objectives (ie. legal compliance d) Retain employees 2. What are the elements of the HRM balance sheet discussed in class and how do they relate to achieving good business results? Maximize Value Creativity + Minimize Risk, Cost, and Losses 3. What are the three major contexts of the employment relationship? i. Employment relations law ii. Unions and collective bargaining on management and the employment relationship iii. “High performance human resource management” • Adoption of bundles or groups of practices to maximize workforce contribution to value • Invest in recruitment and selection of employees  hire best people to begin with • Explicit efforts to keep employees informed about the business • Build and maintain trust through commitments to fair treatment and addressing employee concerns and grievances • Some practices adopted reduce desire for union representation 1 4. Who is responsible for HRM? • All managers responsible for it as a fundamental aspect of doing business 5. What environmental conditions & developments affect HRM? • Employer needs to decide whether it seeks to emphasize on price, quality, innovation, or service in gaining edge in the marketplace • Negative effect of low labor costs = constraints on quality of workers hired, aka poorer products/services 6. What are the key employments trends affecting HRM? • Global migration increasing  diversity in workforce (racially, ethnically, culturally) • Increase in female workforce participation in industrialized countries • Age demographics (currently 4 distinctive generations) • Advanced economy employers move production to low wage regions of the world (outsourcing) • Shift from manufacturing to service jobs (75% Canadian jobs) 7. How can HRM practices contribute to an employer’s effort to gain a sustained competitive advantage? Seven Best Practices of HRM: 1) Provide employment security • No layoffs 2) Hire Strategically • Recruit through several channels  larger applicant pool • Focus on KSA’s • Value cultural fit of employee 3) Use Self-Managed Teams • Give more responsibility  more motivation  increase productivity • Results in lower costs because management overhead is reduced 4) Compensate well • Acknowledge good performance • High overall compensation (external pay equity) 5) Train Appropriately 6) Reduce Status Differences • Decentralize • Flatter organizational structure, less hierarchal • Reduce wage inequity 7) Share Information • Share financial performance, business plans, market trends 8. Other than offering job security, what other measures could businesses take to “boost profits through people?” • Succession plans (growth opportunities) • Self-managed teams • Good compensation • Information sharing 2 II. Legal Regulation of the Employment Relationship 1. What are the various “legal authorities” affecting the employment relationship? MEMORIZE THIS ENTIRE CHART*********** 2. Authorities (Laws) Policy Objectives Adjudicators Employment Standards Fair minimum standards: Employment Standards Act wages, hours, holidays, Branch & Tribunal – parental leave, notice Ministry of Labour required on dismissal, ect. The “Common Law” Employer’s duty to give Courts Principle of wrongful responsible notice, or Pay dismissal in Lieu of Notice, upon dismissal, unless “Just Cause” is established Human Rights Code Fair Employment Human Rights Tribunal Practices: No discrimination – race, gender, age, disability, political beliefs, ect. Privacy Laws – BC Organizational Information and privacy Personal Information accountability for the commissioner of BC / Protection Act/Federal Act collection, use and Privacy commissioner of (PIPEDA) disclosure of personal Canada information Worker’s Compensation, Protection & Occupational Health & Occupational Health and compensation for Safety Branch/Division – Safety occupational injury and Ministry of illness Labour/Worksafe BC (for enforcement) Labour Relations Code Right to collective Labour Relations Boards bargaining, regulation of Union – Management relations Collective Bargaining Bilateral determination of Arbitration Board – Agreement working conditions appointed by management and labour Employment Equity Act Removal of barriers in Department of Human (applies to particular employment for 4 Resources and Skills employers only) designated groups Development Canada (for reporting requirements), Canadian Human Rights Commission (for enforcement) 3 3. What are the variations in “jurisdiction” or coverage of the different legal authorities? i. Federal jurisdiction • Regulated by public policy and laws set by federal government in Ottawa • Includes federal government and Crown Corporation employees (ie Canada Post) • Single set of rules/regulations regardless of business location • ~10% Canadian workforce = Federal jurisdiction ii. Provincial jurisdictions • ~90% Canadian workforce 4. Which agencies or “adjudicators” (determine facts & legal requirements then determining whether any rights were violated) are responsible for applying & resolving disputes in each of these areas? (see chart above) 5. What are the underlying public policy objectives of each of the legal authorities? (see chart above) 6. What are the fundamental elements of the Employment Standards Act? Fair minimum standards: • Wages, hours, holidays, parental leave, notice required on dismissal, ect. 7. What does “discrimination” mean and what are the “protected” categories or groups of employees under the Human Rights Code? i. Discrimination = failure to meet fair employment practices ii. Protected categories: 1. Females 2. Minorities 3. Aboriginals 4. Disabled 5. Age 6. Sexual orientation 7. Political affiliation 8. What is the only circumstance under human rights legislation that an employer would be permitted to discriminate? • BFOR – “bona fide occupational requirement” • Ex. Only female employees to deliver services at a woman’s rape relief facility 9. What is the difference between pay equity and employment equity? • Pay equity = same pay for the same work • Employment equity = no discrimination o Reported to Department of Human Resources and Skills Development Canada o Enforced by Canadian Human Rights Commission 10. What are the main privacy law principles applying to employers? • PIPEDA o Privacy Law – BC Personal Information Protection Act/Federal Act 4 o Policy objectives: organization accountability of collection, use and disclosure of personal information o Adjudicators: Information and Privacy commissioner of BC/Canada III. Recruiting, Selecting & Developing Employees The Recruitment Process: 1. Create Job Description 2. Announce the Opening 3. Review Applications & Resumes 4. Telephone Interview 5. Face-to-Face Interview(s) 6. Get Other Opinions 7. Check References 8. Make the Offer 1. What is “job analysis” and why is it so fundamental to staffing decisions? Job analysis: • Employer must find out and understand what work needs to be done, what interactions with other people • Central objective is to identify KSA’s necessary for job: o Knowledge o Skills – ability to do certain things associated with the job ranging from sorting fruit or wood to problem solving a breakdown of relations between nations o Abilities – previously developed talents such as the ability to learn new procedures or to stay calm under pressure • Provides job specifications o Statement of job qualifications such as educational requirements or experience necessary for the job o Explains duties and responsibilities o Provides basis for job description to be written • Job description o Provides potential applicants as well as those already performing, a clear picture of the duties and responsibilities o Balance between specificity and generality in order to adapt to changing job circumstances and needs 2. What are the essential elements of human resource planning? a) FAP – Forecasting internal demand and supply, Analyze labour supply, Planning and Implementing HR programs to balance supply and demand Strategic Human Resource Planning Key Steps in HR Hiring: 1. Forecasting demand for labour • Quality and nature of employees 5 • Decisions to upgrade quality of products • Planned technological and administrative changes • Consider financial resources available • Organizational restructuring and job design Quantitative approaches: • Trend Analysis – Study of firms past employment levels over a period of years to predict future needs • Ratio Analysis – Determine future staff needs by using ratios between some causal factor (ie. sales volume) and # employees needed • Scatter Plot – graphical method used to identify relationship between two variables • Regression Analysis • Computer Based Simulation – complex series of mathematical formulas that use key internal and external indicators for future HR needs Qualitative Approaches • Nominal Group Technique – face to face, each person presents an idea  discussion  all ideas ranked • Delphi Technique  ideas exchanged w/o face-to- face interaction. Feedback chart provided w/ all ideas and used to fine-tune independent judgments • Scenario Planning – managers envision future trends (20+ years) to predict products, services, and workforce composition 2. Analyzing labour supply [Two sources of supply: internal & external] INTERNAL SUPPLY FORECASTING: • Markov Analysis – determines pattern of movement to/from jobs throughout organization (retention #’s, promoted, transferred, turnover) • Skills/Management Inventories – record capabilities of current employees (educational background, work history, skills, abilities, interests, career aspirations) and identifies eligibility for transfer/promotion • Replacement Charts – Shows who will replace who in job openings, listed with age, performance rating, promotability status • Replacement Summaries – lists of likely replacements for each position with relevant strengths and weaknesses 6 • Movement Analysis – analyze ripple effect that promotion and job losses have on movement of other employees in an organization • **Succession planning – ensures a suitable supply of successors for current and future senior/key jobs so careers of individuals can be effectively planned EXTERNAL SUPPLY FORECASTING: • Future unemployment levels • National labour market trends • Local labour market trends • Supply in specific occupations 3. Planning and implementing HR programs to balance supply and demand Database – contains information on all employees, to be maintained on a regular basis o Start dates from when employee first applied for work o Education, experience, previous employment o Age, gender, minority status, length of service, training and development experiences, job progressions in the organization o Employee performance, disciplinary records o Information on workforce as a whole: employment offer acceptance, voluntary turnover o Database enables employer to forecast turnover and plan better for seasonal/cyclical variations in demand Succession plans – career paths within the organization for supervisory and management positions o Requires accurate information on past performance and future potential o Provide info on developmental experience and suitability of individuals for promotion Staffing policy o Decisions on whether to operate in under/over staffing relative to “theoretically optimal” staffing level Promotions o Promote from within or hire externally? o Externally: new ideas, experiences, perspectives, but at higher cost o Internally: conserves critical organizational knowledge, important for employee motivation and retention Tracking external labour market conditions o Ex. Canada maintains data series about labour availability broken down by occupational groups and specific labour market areas o Continually scan environmental economic conditions 3. How is a human resource plan used, and what is its potential contribution to business success? 7 4. What is the connection between recruitment & selection and organizational performance? Recruitment & selection purpose is to find “best fit” candidate who possesses KSA’s for the job PROPER SELECTION IS IMPORTANT B/C: 1) Quality of company’s HR are frequently the single most important factor in company’s performance and success 2) High costs associated with poor hiring 3) Legal implications related to human rights and employment equity legislation 5. What is the nature, role and importance of “employer brand?” • Aka organization’s recruiting message • Employer brand will attract/repel the best & brightest employees • Genuine & accurate representation of working environment and conditions very important otherwise new hires will quit 6. What are variations on an employer’s “recruiting message” and the channels that may be used to convey the message? • Channels: o Word-of-mouth o Referrals from current employees o Traditional print media (newspapers & industry specific magazines) o Electronic media (radio, tv, onine) 7. Where does an employer go to recruit new employees? For permanent staff: • Print Advertising (less common than online recruiting) • Private Employment Agencies – intermediate  senior level clerical staff • Executive Search Firms – specialize in a particular type of talent such as executives or technical employees • Educational Institutions • Employee Referrals • Other (walk ins, write ins) For non-permanent staff: • Temporary Help Agencies – send replacements for employees • Contract Workers – direct work relationship with employer for a specific type of work or period • Outsourcing/Subcontracting – employers transfer work to another organization more specialized in the work (more efficient) 8. What should an employer look for in reviewing employment applications and resumes? PROCESS: 8 1) Prescreening 2) Selection Interview 3) Selection Testing 4) Background investigation and reference checking 5) Making the hiring decision and offering job Prescreening Applicants: • Review resumes and application forms • Eliminate applicants w/o “must have” criteria • Rank remaining applicants who most clearly match job descriptions • Conduct telephone screening In interview: • Usually conducted by a panel • Check for: Body language, Tone of voice, Answers to behavioral (previous encounter) and situational questions (hypothetical situation in future) • Types of interview structures: o Unstructured (any questions asked) o Structured (series of predetermined questions relative to job description and specification) o Semi-structured (combination) • Types of interview questions: o Situational (hypothetical future situation) o Behavioral (previous situations & what applicant did) • Types of interviews: o One on one o Panel o Sequential (several people interview applicant in sequence) o Computerized selection interview (oral/written responses recorded) o Videoconferencing • Common Interviewing mistakes: o Poor planning o Snap judgments
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