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C392 - H, David - HR Final Notes (for Perry Atwal).pdf

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Department
Commerce
Course
COMM 410
Professor
All Professors
Semester
Spring

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COMMERCE 392 Managing Employment Relationships Review Guide UBC.  Summer  2011   Perry  Atwal     David  Huynh  ©    “The  Strategic  Role  of  Human  Resources  ManChapter 1  –       THE  KEY  CORE  CONCEPTS:   • Effective  Human  Resource  Management  =  Higher  Return  on  Investment   • “staff”  HRM  function/  HR  Department   o Sets  policies  and  standards    Make  and  circulate  recruitment  ads    Decide  selection  procedure    Determine  standard  pay  policies    Develop  performance  evaluation  procedure    Develop  grievance  procedure   o Advise  line  managers  on  workplace   issues   o Ensure  compliance   o Provide  services  such  as  keeping  HR  records,  orientation,  pay  administration   o Authority  is  derived  from  specialized  knowledge   • Line  Managers   o Implement  policies  (determine  who  to  hire,  conduct  performance  eval.)    Conduct  selection  inte rview    Decide  to  whom  to  make  an  offer    Negotiate  and  decide  how  much  to  pay  each  employee    Conduct  performance  evaluation/performance  evaluation  interview    Apply  discipline   o Direction  and  control  of  employees   • Strategic  HRM   o Aligning  HRM  strategy  with  the  organi zational  strategy   o To  help  the  organization  achieve  its  strategic  objectives   o Role  in  executing  corporate  strategy    Top  management  team  decides  corporate  strategy    HRM  is  developed  considering  what  employee  behaviour  is  required  to  successfully  execute   the  strategy    Etc  =  HR  managers  become  involved  in  the  strategy  formation  process  by  providing  TMT  with   the  information  on  the  strengths  and  weaknesses  of  the  firm’s  human  resources   • Impact  of  HRM  practices  on  Organizational  effectiveness   o HR  systems  can  affect  a  fi rm’s  market  value  by  $15,000  -­‐  $45,  000  per  employee   o HR  systems  affect  the  probability  of  a  new -­‐venture  survival   o Strong  HRM  can  drive  a  firm’s  shareholder’s  return    HR  practices  >>  Organizational  effectiveness   • (internal)  Organizational  Culture   is  the  core  values,  beliefs,  and  assumptions  shared  by  members   • (internal)  Organizational  Climate   is  the  prevailing  atmosphere  and  its  impact  on  employees   • (external)  Labour  Market  Issues   o Economic  conditions  such  as  labour  force,  labour  market,  and  productivity  levels    Unemployment  rate  in  Canada  is  7.6%    Population  growth    Age  (baby  boomers,  sandwich  generation,  Gen  X  and  Y)    Workplace  diversity   (minorities,  women,  aboriginal,  disabilities)      Increase  in  technical/professional  jobs  and  decrease  in  traditional  blue -­‐collar  jobs    Government  legislation    Globalization   o Growth  of  the  service  sector  and  the  concept  of  “human  capita l”  which  is  knowledge/education   o Labour  union  movement   o Use  of  contingent/part-­‐time  employees        “Putting  people  first  for  organizational  Chapter 2  –       THE  KEY  CORE  CONCEPTS:   • Shift  from  manufacturing  to  service  jobs  (75%  of  jobs  in  Canada  are  in  the  service  sector)   • Canada’s  ability  to  compete  internationally  depends  on  an  increase  in  new  ideas,  products  and  productivity   • Foundation  for  modern  business  is   not  capital  or  technology,  it  is  knowledge  and  education  (human  capital)   • There  is  a  rise  in  the  need  for  knowledge  workers   • HRM  can  be  a  source  of  sustained  competitive  advantage   o Acquire,  and  develop  high  quality  human  resources   o Encourage  the  high  quality  h uman  resources  to  use  their  knowledge  and  skills   • HRM  plays  a  pivotal  role  in:   o Improving  productivity   o Increasing  a  corporations  responsiveness  to  market  fluctuations  and  tech  changes   o Improving  customer  service   o Developing  and  implementing  a  corporate  strateg y   • 1  HR  employee  for  every  100  employees   • Seven  best  practices  of  HR  Management   o Provide  Employment  security    No  layoffs   o Hire  Strategically    Recruiting  to  generate  a  large  applicant  pool    Selection  based  on  critical  skills  and  knowledge    Emphasize  the  skills  and   knowledge  that  are  difficult  to  train    Value  “cultural  fit”    General  leadership  principal   o Use  Self-­‐Managed  Teams    More  responsibility  means  higher  motivation  and  greater  productivity  i  ase  Costs  lowered  as  management  overhead  is  reduced   o Compensate  Well    Pay  for  performance    High  overall  compensation  (higher  than  market/ competitors)   o Train  Appropriately   o Reduce  Status  Differences    Through  symbol  –  use  of  language,  physical  environment    Substantive  means  –  reducing  wage  inequality   o Share  Information    Sharing  key  info  such  as  financial  performance,  business  plans,  market  trends   • Why  some  people  don’t  do  it   o Emphasis  on  short-­‐term  financial  results   o Try  to  increase  shareholder  value  by  increasing  stock  price   o Immediate  pressures  drive  off  the  table  the  long  term,  and  more  s trategic                      “The  Legal  EnvironmeChapter 3       THE  KEY  CORE  CONCEPTS:   • Legal  regulation  applies  to  the  employment  relationship  from  hiring  to  termination   • Constitutional  Law    >  Charter  of  rights  and  freedoms   • Legislated  Acts  of  Parliament  >  Income  Tax  Act   • Regulations  >  Rules  to  aid  interpretation  of  laws   • Common  Law  >  Judicial  precedents   • Contract  Law  >  collective  agreements/employment  contracts   • Concept  of  Jurisdictions   o Provincial  govern  approx.  90%  of  Canadian  Workers   o Federal  employment  legislation  covers:    Federal  civil  service    Crown  corporations  and  agencies  (Canada  Post)    Businesses  engaged  in  airlines,  railroads,  banking,  and  communications   • Protective  Employment  Legislation   o Employment  Standards  Act  sets  minimum  working  conditions    Sets  minimum  standards  for  all  workers,  including  collective  agreement    Number  of  statutory  holidays    Minimum  wage    Minimum  vacation  entitlement    Meal  break  requirements    Minimum  notice  required  upon  termination   • You  can  terminate  when  economic  factors  make  it  unprofitable  to  keep   • Employee  fucks  up   • Just  Cause   o Dishonesty,  flagrant  and  deliberate  insubordination,  abuse  of   confidential  information,  theft,  lateness  and  absenteeism    Maternity  leave    Deductions  from  wages   o Human  Rights  Legislation  prohibits  discrimination    Illegal  to  discriminate  employment  on  the  basis  of  “prohibited  grounds”    Race,  national  or  ethnic  origin,  color,  religion,  age,  sex,  marital  status,  family  status,   pardoned  conviction,  disability  and  sexual  orientation    Sexual  coercion  is  harassment  with  direct  consequences  to  job  benefits    Sexual  annoyance  is  unwanted  touching,  advances,  and  dirty  jokes    Bona  Fide  Occupational  Requirements  are  justifiable  reasons  for  discrimination  for   safe  and  efficient  operation  of  the  organization    Systematic  discrimination  are  guidelines/test  that  don’t  relate  directly  to  job     o Health  and  Safety  Legislation  prevents  workplace  illness  and  accidents    Employers  >  filing  accident  reports,  posting  safety  notices  and  legislative  info    Employees  >  right  to  refuse  unsafe  work  and  obligation  to  wear  protection   o Workers  Compensation  Legislation  compensates  workers  for  work  related  illness/injury   o Privacy  Legislation  applied  to  union  and  non-­‐union  employees   o Employment  equity  applied  to  federally  regulated  employers   o Pay  Equity  is  equal  pay  for  equal  work  for  men  and  women    “Unions:  Objectives,  Processes,  Structure,  and Chapter 4  –     THE  KEY  CORE  CONCEPTS:   • A  Union  is  an  organization  providing  representation  for  employees  on  a  collective  or  group  basis   o Objective  is  to  improve  employee  working  condition   • Craft  organization  are  members  of  a  trade  of  occupation   • Industrial-­‐organized  are  workers  in  difference  occupations  in  a  firm   • Overview  of  Union  Activity   o Collective  bargaining       o Collective  agreement       o No  strike  during  agreement       o Agreement  ends   • Locals   o Fundamental  unit  of  the  union  structure   o Has  own  bylaws  and  constitution   o Represent  workers  in  a  particular  plant  or  area   o Enforces  collective  agreement  and  handles  grievances  and  arbitration   o Collects  dues   o Provides  means  of  giving  workers  a  “voice”   • Parent  Unions   o National/International    Canadian  Auto  Workers  (CAW)    United  Steelworkers  of  America  (USWA)    CUPE:  Canadian  Union  of  Public  Employees   o Organize  these  workers   o Coordinate  local  unions   o Support  collective  bargaining  process  and  manages  strike  funds   • National  Federations   o Central  organizations  –  most  unions  are  a  member  of  one  of  them   o Canadian  Labour  Congress    Largest  nation  federation  of  unions  in  Canada    Represents  interest  of  affiliated  unions  including  research  and  educational  services    Lobbies  government    Resolves  disputes  between  unions,  including  “raid”  disputes    Does  not  become  directly  involved  in  contract  negotiation  or  grievance  proves   • Legislation   o Labour  Legislation    Deals  with  matters  related  to  collective  bargaining    BC’s  Act:  Labour  Relations  Code   • Protects  rights  of  employees  to  union  representation   • Guards  against  unfair  labour  practic es   • Sets  rules  for  collective  bargaining,  strikes,  and  resolution  disputes    Canada:  Canada  Labour  Code   o Employment  Standards  Legislation    Provides  minimum  terms  and  conditions  of  employment    Primary  application:  non -­‐unionized  employees    BC’s  Act:  Employment  Standards  Act              “Collective  Bargaining  RiChapter 5 –       THE  KEY  CORE  CONCEPTS:   • Motivations  to  join  a  union   o Economic  gains   o Job  security   o Fairness/equity   o Complaint  mechanism,     o Power  of  collective  action    Cons:     • Union  dues   • Workplace  conflict   • Focus  on  seniority  at  expense  of  younger  workers   • Union  Density  %  of  nonagricultural  workers  who  are  union  members   • How  does  a  workplace  become  Unionized?   o Pre-­‐organizing  Phase    Existence  of  propensity  an d  opportunity    Effective  HR  can  minimize  likelihood   o Organizing  drive  commences    LRD  protection  for  workers    Permissible  actions  by  employer:   • Refuse  entry  to  non-­‐employees   • Refuse  entry  after-­‐hours   • Prevent  union  solicitation  during  work  hours   • Communicate  about  unionization  &  employer   practices   • Respond  to  union  claims  and  working  conditions  that  are  business  as  usual    Limits  on  Union  Activity   • No  rights  of  access  to  employer  property   • Can  apply  for  access  when  employees  reside  on  employers  property   • Can  make  promises  to  employees   o Certification  by  LRB    Bargaining  units  determined   • Not  included   o Independent  contractors   o Positions  exercising  a  managerial  capacity   o Positions  acting  in  confidential  capacity  with  respect  to  labour  relations   • Industrial  Stability   • No  fragmentation  of  work  groups   • Community  of  interest   o Similarity  in  skills,  duties,  and  working  conditions   o Structure  of  employer   o Integration  of  employees  involved   o Location  and  proximity  of  employees    Statutory  freeze  on  working  conditions   o Collective  Bargaining  begins   o Collective  Bargaining  ends  as  Collective  Agreement  is  reached   • New  Union   o Must  include  constitution  and  bylaws   o Sign  up  members   o Elect  officers   o Follow  human  rights  code    “Recruiting  and  Selecting  EmploChapter 6 –       THE  KEY  CORE  CONCEPTS:   • Human  Resources  Planni ng   o Aim  is  to  ensure  the  necessary  number  of  employees,  the  necessary  employee  KSA   o Helps  effective  staffing  and  development  activities  which  can  lead  to  more  satisfied  and  better     o Allows  organizations  to  proactively  address  future  labour  shortages  and  surpl uses    Process:   • Develop  objectives>forecast  demand  and  supply>develop>implement>appraise    Forecasting  HR  Demand   • Quantitative  approaches   –  trend  and  ratio  analysis   • Qualitative  approaches   –  expert  judgment      Forecasting  HR  Supply   • Internal  labour  market  –  skills  inventory  and  replacement  charts   • External  labour  market  –  general  economic  and  occupational  labour  market  conditions    Dealing  with  shortage   • Internal  transfer  or  promotion,  external  recruitment,  overtime,  hiring  temporary   employees,  subcontracting  work    Dealing  with  surplus   • Hiring  freeze,  attrition,  buy -­‐outs  and  early  retirement  plans,  layoffs,  reducing  hours   • Internal  Recruitment   o Benefits  –  positive  employee  reaction,  quick  method  that  reduces  cost  and  need  for  orientation   o Limitations  –  homogeneity  and  smaller  market  to  be  recruiting  from   • External  Recruitment   o Benefits  –  Large  labour  market  to  draw  from  and  bringing  in  new  KSA   o Limitations  –  time  for  adjustment  to  culture,  policy  and  practices,  reaction  from  internal  applicants   • Selection  is  process  of  choosing  among  applicants  to  find  best  candidate  for  position   o Criteria  –  KSA,  personality  factors  (intellectual  ability,  personality,  and  motivation)   o Selection  process    Preliminary  contact  and  screening    Selection  test,  selection  interview      Background  check,  supervisory  interview    Hiring  decision      Candidate  notification      Evaluation  of  selection  process   o Selection  measures    Work  samples,      References/recommendations      Unstructured  interviews,      Structured,  assessment  centers,      Specific  aptitude  tests,      Personality  tests,      General  cognitive  ability  tests   o Reliability  is  degree  to  which  selection  procedure  yield  comparable/consistent  data   o Validity  is  accuracy  with  which  predictor  measures  what  it  is  intended  to  measure  and  accuracy  to   predict  job  applicants  performance  on  the  job   • Types  of  Interviews   o Structured  –  it’s  reliable     o Unstructured  –  not  reliable   o Situational  –  hypothetical  situations   o Behavioral  –  past  behaviors   o Panel  interviews  –  consistent  evaluation  but  can  be  intimidating    “Establishing  Strategic  Reward Chapter 7  –       THE  KEY  CORE  CONCEPTS:   • Total  Compensation   o Direct    Base  Pay    Merit/Cost  of  Living    Short  term  incentives    Long  term  incentives   o Indirect  (Employee  Benefits)    Work/Life  balance    Allowances    Income  Protection  (insurance/pensions)   • Motivators  at  work   o Money,  Achievement  and  recognition,  Power  and  Control,  Affiliation,  Self -­‐actualization     • Key  Considerations  in  Determining  Pay  Rates/Compensation  Systems   o Legal   o Employment  Standards  Legislation     o Human  Rights  Legislation     o Pay  Equity  Act   o Canadian  Pension  Plan   o Worker’s  Compensation  Legislation   o Employment  Insurance   • Union  Influences   o Compensation  will  be  a  key  part  of  bargaining   o Many  Union  leaders  gear  that  any  system  used  to  evaluate  will  be  abused  by  management • Equity  Considerations   o Internal  Equity  which  is  within  organization   o External  Equity  are  across  organizations   o When  there  is  Inequity,  employees  reduce  output  or  leaves   • Determining  Wage/Salary  Levels   o Conduct  a  Wage/Salary  Survey   o Determine  the  relative  worth  of  each  job  (job  evaluation)   o Group  similar  Jobs  into  pay  grades -­‐jobs  of  approximate  equal  value   o Price  Each  Pay  Grade   o Fine  Tune  pay  rates   • Pay  for  Performance  (Variable  Pay)   o Merit  Pay  is  annual  pay  increased  linked  to  performance  appraisals   o Individual  Incentives  are  rewards  based  on  sales  commission/piece  work   o Profit  Sharing  are  payments  based  on  company’s  profits    Encouraged  to  think  like  Owners    Labour  costs  automatically  reduced  during  difficult  economic  times   o Gainsharing  are  payments  based  on  group  or  plant  performance   o Ownership  –  Stock  Options    Long  term  incentive  plan    Gives  option  (not  obligation)  to  buy  company’s  stock  at  a  previously  set  price   o Employee  Stock  Ownership  Plans  (ESOPs)    Employee  buys  company  stock  and  cashes  out  when  retired    Align  interests  of  the  employees  with  their  employers      “Employee  Benefits  and  SChapter 8  –     THE  KEY  CORE  CONCEPTS:   • Common  Indirect  Benefits   o Extended  Health  Plans,  Life  Insurance,  Vacation  Time,  Pensions,  Education  and  Training  Plans ,   Discount  on  company  products/  services   • Legally  Required  Benefits   o Employee  Insurance    Employer  and  employee  contribution    Provides  weekly  benefits  to  those  unable  to  work  through  no  fault  of  their  own    55%  of  average  earnings  during  the  last  20  weeks  of  the  qualifying  period   o Canada  Pension  Plan    Employer  and  employee  contribute    Majority  of  employed  Canadi ans  between  18  and  65  covered,  including  self  employed    3  types  of  benefits:  Retirement  pension,  disability  benefits,  survivor  benefits   o Workers  Compensation  Plan    Only  employers  contribute    Provides  income  and  medical  benefits  to  victims  of  work  related  accid ents  or  their  dependants    Accident  occurred  while  employee  was  at  work   o Provincial  Health  Care  Plans   o Pay  for  time  not  worked   (Vacations,  Holidays,  Leaves  of  Absence)   • Voluntary  Benefits   o Employer  Pension  Plan   o Vacation,  and  leaves  of  absence   o Additional  pay  for  time  not  worked   o Long  term  disability  insurance   o Short  term  disability/Sick  Leave   o Insurance  Benefits   o Retirement  Benefits   • Recent  Trends  in  Benefits   o Due  to  changing  demographics  and  social  values  in  Canada   o Phased-­‐in  Retirement   o Elder-­‐care   o Same  Sex  Benefits   o “Family  friendly”  benefits   o Wellness  programs   • Benefits  of  Benefits   o Cost  –  access  to  bulk  rates/group  discounts   o Attraction  –  benefits  play  a  role  in  attractive  job  applicants   o Organization  Commitment   –  investing  in  retirement  account  is  associated  with  org.  commi tment   o Reduced  turnover   • Communicating  Benefits  Information   o Booklets,  Videotape,  Employee  Meetings,  Pay  Check  Inserts,  Computerized  statement,   TRANSPARENCY   • Flexible  Benefits   o Advantages    Better  match  to  employee  preferences    Better  awareness   o Disadvantages    Administrative  cost,  especially  in  the  initial  design  and  start -­‐up  stages    Adverse  selection  –  Employees  most  likely  to  choose  benefits  they  expect  to  need  most    “Performance  Appraisal:  The  key  to  effective  performance Chapter 9nt”  –     THE  KEY  CORE  CONCEPTS:   • Why  Performance  Appraisals  are  Important   o Strategic  Purpose  -­‐  Linking  employee  performance  with  organizational  strategic  goals   o Administrative  Purposes  -­‐  Pay,  promotions,  placements,  training   o Developmental  Purposes  -­‐  Identifying  areas  of  excellence  &  Improvement/Feedback  and  recognition   • Three  Steps  in  Performance  Appraisal   o Defining  performance  expectations    Based  on  job  analysis  and  job  description    Quantifiable  and  Measurable  standards    Communicate  performance  expectations    What  to  measure   –  Output,  KSA,  Behaviour  and  Critical  Incidents,  Traits   o Appraising  Performance    Compare  employees  actual  performance  to  set  standards    Methods   • Graphic  rating  scale   o Evaluate  trait   o Each  employee  rated  according  to  a  scale  of  characteristics   o Pro:  Simple  to  use  and  provides  a  q uantitative  rating  for  each  employee   o Con:  Standards  may  be  unclear,  prone  to  error,  low  reliability   • Critical  Incident  Method   o Keep  log  of  desirable  and  undesirable  behaviours  on  the  job   o Difficult  to  attach  a  score   -­‐>  usually  used  to  supplement   o Pro:  Helps  pinpoint  areas  for  improvement,  stress  critical  aspects  of  job   o Con:  Difficult  to  rank  employees,  inadequate  sampling  and  deficiency   • Behavioral  Anchored  Rating  Scale  (BARS)   o Specific  behavioral  example  for  each  performance   o Pro:  Provides  behavioral  anchor,  high  validity  and  reliability   o Con:  difficult  to  develop,  difficult  to  maintain,  need  to  tailor  for  each  job   • Management  By  Objectives  (MBO)   o Rate  performance  on  basis  of  employee  achievement  goals  set  by  agreement   o Pro:  Link  to  performance-­‐related-­‐pay,  performance  and  development  purpose   o Con:  Time  consuming,  difficult  to  compare  among  employees   • Forced  Distribution   o Pro:  avoids  central  tendency  and  constant  error,  consistent   o Con:  May  be  unfair  if  all  employees  are  in  fact  the  same   o Providing  Feedback    Discussing  performance  record  and  explore  areas  of  possible  improvement  and  growth    Who  should  do  it   –  supervisor,  peer  appraisals,  self  ratings,  rating  committees,  360  degrees    Problems  with  Performance  Ratings   • Halo  Effect  –  excelling  in  one  trait  causes  supervisor  to  over rate  on  other  traits   • Central  Tendency  –  Select  the  middle  of  the  scales  to  avoid  highs  and  lows   • Leniency/strictness  –  high  graders  vs.  low  graders   • Appraisal  Bias  –  allowing  a  wide  variety  of  characteristics  to  influence  the  rating   • Recency  Effect  –  rely  on  employee’s  most  recent  performance   • Similar  to  Me  –  giving  employees  higher  ratings  because  they  have  a  commonality    Preventing  Errors   • Train  rates  about  problems,  frame  of  reference  training  party    by  a  3  “Fair  Treatment:  The  Foundation  of  Effecti ve  EmployeeChapter 10ons”  –     THE  KEY  CORE  CONCEPTS:   • Justice  Theory   o Distributive  Justice   was  outcome  appropriate  and  justified?   o Procedural  Justice  were  procedures  used  to  make  decisions  appropriate  and  unbiased?   o Interpersonal  Justice  were  individuals  treated  with  respect  and  dignity?   • Union  Discipline   o Every  CA  must  have  discipline  and  dismissal  provision  and  also  a  just  cause  provision   • Discipline   o What  behaviours  require  discipline      Authority  to  discharge  under  “just  cause”    Culpable  Behaviour  is  conduct  that  is  blameworthy  through  intentional  action    Non-­‐culpable  Behaviour  is  unacceptable  conduct  but  is  not  of  employee’s  fault   • Criteria:     o Definition  of  an  objective  standard  for  job   o Clear  communication  of  the  standard   o Supervisory  discretion  provided  to  emp loyee  to  reach  standard   o Warning  that  continued  failure  to  meet  standard  may  result  in  dismissal   o Proof  that  the  employee  performance  was  below  standard    Insubordination  is  when
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