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Human Resources Management
HRM 2600
Christa Wilkin

Chapter 1: • HRM- process of managing human talent to achieve an organizations objectives • HRM Issues- o staffing o designing job and teams, o developing skillful employees, o identifying approaches for improving their performance, o Rewarding employee success. • Core Capabilities: integrated knowledge sets within an organization that distinguishes it from its competitors and delivers value to customers. • Sustained competitive advantage through ppl is achieved if human resources: o Have value o Are rare and unavailable to competitors o Are difficult to imitate are organized for synergy. • Challenge 1: Competing, Recruiting and staffing Globally • Globalization- the trend towards opening up foreign markets to international trade and investment. o Influences number/kinds of jobs available and requires organizations balance a complicated set of issues related in managing ppl from different places, cultures, business conditions. o Impact: Lower trade and tariff barriers, can get anything anywhere markets, partnerships with foreign firms • Corporate social responsibility- the responsibility of the firm to act in the best interests of the ppl and communities affected by its activities • Impact on HRM: o Diff geographies, culture, laws, and business practices o Issues-identifying capable managers and workers  Developing foreign culture and work practice training programs • Relocating managers to direct the efforts of an international workforce  Adjusting compensation plans for overseas work • Challenge 2: Embracing New technology o Knowledge workers- whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving o Knowledge based training-online instruction, “just-in-time” learning via the internet on company intranets • Human Resources Info Systems(HRIS)- o computerized system that provides current and accurate data for the purpose of control and decision making o Benefits:  Store and retrieve of large quantities of data  Combine and reconfigure data to create new information  Institutionalization of organizational knowledge  Lower admin costs, increased productivity and response times  Automation of different HR activities(payroll, hiring, records)  HR personnel can concentrate more effectively on firms strategic direction instead of on routine tasks(forecasting personnel needs, planning for care/employee promotions, and evaluating the impact of the firms policies o Factors when choosing an HRIS:  Fit of the application to firms employee base  Ability to upgrade or customize the software  Compatibility with current systems  User friendliness  Availability of technical support  Time required to implement and train staff to use the HRIS; including HR and payroll personnel, managers, and employees  Initial costs and annual maintenance costs o Advanced tech reduce # of jobs that require little skill and increase # of jobs that require considerable skill(touch labour->knowledge work) • Challenge 3: Managing Change o Types of change  Reactive change- change that occurs after external forces have already affected performance  Proactive Change- initiated to take advantage of targeted opportunities o Managing change through HR- formal change management programs help to keep employees focused on the success of the business. To manage change, executives/managers have to envision the future, communicate this vision to employees, set clear expectations for performance, and develop the capability to execute by reorganizing people and reallocating assets o Why change Efforts fail:  Not establishing sense of urgency  Not creating powerful coalition to guide effort  Lacking leader who have vision  Lacking leaders who communicate the vision  Not removing obstacles to the new vision  Not systematically planning for and creating short-term wins  Declaring victory to soon  Not anchoring changes in the corporate cultures o Key elements of change management planning:  Link change to business strategy  Create quantifiable benefits  Engage key employees, customers, and their suppliers early  Integrate required behaviour changes  Lead clearly, unequivocally, and consistently  Invest to implement and sustain change  Communicate continuously and personally  Sell commitment to change, not communication about the change • Challenge 4: Managing Talent, or Human Capital o Human Capital- the knowledge, skills and capabilities of individuals that have economic value to an organization o Training programs provide skill enhancement, particularly in areas that cannot be transferred to another company. o Employees need opportunities to develop, so manager should provide developmental assignments and ensuring that their job duties and requirements are flexible enough to allow them to grow and learn. • Facilitates knowledge exchange and mutual learning (group work)  Valuable because capital: • Is based on company-specific skills • Is gained through long term experience • Can be expanded through development o Managers play important role in:  Creating an organization that understands value of knowledge  Documents skills and capabilities available to the organization  Identifies ways of utilizing that knowledge to benefit the firm • Challenge 5: Responding to the Market o Total Quality management- set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement o Six sigma- process used to translate customer needs into a set of optimal tasks that are performed in concert with one another  focus on continuous improvement drives the system towards disequilibrium while its focus on customers and management systems provide the restraining forces that keep the system together o Most important techniques stress employee motivation, change in corporate culture, and employee education o Reengineering and HRM- fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed. o Better business thinking builds more strategic HR thinking • Challenge 6: Containing costs o Downsizing- planned elimination of jobs o Hidden costs of layoffs:  Severance/rehiring costs  Accrued vacation and sick day payouts  Pension and benefit payoffs  Potential lawsuits  Loss of institutional memory and trust in management  Lack of staffers when the economy rebounds  Survivors who are risk-averse, paranoid, and political o Benefits of a No-Layoff policy  A fiercely loyal and more productive workforce.  Higher customer satisfaction.  Readiness to snap back with the economy.  A recruiting edge.  Workers who aren’t afraid to innovate, knowing their jobs are safe. o Outsourcing- contracting outside the organization to have work done that formerly was done by internal employees o Offshoring- the business practice of sending jobs to other countries  Benefits: • Rescue failing business • make better use of their skilled labour • deliver products more cheaply and quickly  Hidden costs: • Finding foreign vendors • Productivity lost during the transaction • Domestic layoff costs • Language difficulties • International regulatory challenges • Political/economic instability that can threaten operations o Employee leasing- process of dismissing employees who are then hired by a leasing company and contracting with that company to lease back the employees • HRs role is to maintain relationship b/w company and employees while implementing the changes. • Demographic changes, social and cultural differences and changing attitudes toward work can provide rich source of variety for businesses. To benefit from diversity, managers need to recognize employee concerns and make certain that the exchange b/w the organization and employees is mutually beneficial • Chapter 2: Managing Human Resources • Strategic planning and Human resources o Strategic planning- procedures of making decisions about the organizations long term goals and strategies o Human Resources Planning (HRP)- process of anticipating and making provision for the movement(flow) of ppl into, within and out of an organization  Purpose: help managers deploy their HR as effectively as possible o Strategic Human Resource Management(SRHM)  Pattern of human resources deployments and activities that enable an organization to achieve its strategic goals • Strategic formulation- providing input as to what is possible given the types of numbers of ppl available • Strategy implementation- making primary resource allocation decisions about structure processed and human resources o Integration of HRP and SHRM tends to be more effective when there is a reciprocal relationship b/w the two processes • Step 1: Mission, Vision, and values o Mission- basic purpose of the organization as well as its scope of operations o Strategic vision- statement about where the company is going and what it can become in the future; clarifies the long term direction of the company and its strategic intent o Core Values- the strong and enduring beliefs and principles that the company uses as a foundation for its decisions; place limits on what behaviour is seen as ethical and acceptable • Step 2: Environmental Analysis o Environmental scanning- Systematic monitoring of the major external forces influencing the organization o External factors that are monitored most frequently:  Economic factor: general and regional conditions  Competitive trends: new processes, services and innovations  Technological changes: robotics and office automation  Political and legislative issues: laws and administrative rulings  Social concerns: child care and educational priorities  Demographic trends: age, composition, and literacy o 5 FORCES diagram: Rival firms= new entrants+ customers+ suppliers+ substitutes  Customers: firms strategy should focus on creating customer value, because diff custys want diff things; excellent customer service factors: • Speed of delivery • Willingness to meet extraordinary needs • Merchandise delivered in good condition • Readiness to take back defective good and resupply new goods quickly • Availability of installation and repair services and parts  Rival Firms: examining the nature of competition so a strategy can be made to compete efficiently  New Entrants: barriers put up to keep new entrants out; when they do enter its cause they have diff way to provide value to customers  Substitutes: offers same service but in different methods. Firms may need to adjust employee skill bases in order to support diff technologies or how to compete in diff ways  Suppliers: provide business with key inputs; plays central role in strategic planning and HRP  More power each of these forces have the less profitable the industry will be o External supply of Labour- effected by changes in….which can limit strategies available to firms:  in population  national/regional economics  education level of workforce  demand for specific employee skills  Population mobility  Governmental polices • Step 3: Internal Analysis: provides inventory of organizational skills and resources as well as performance levels o Scanning the internal environment: The 3 C’s  Cultural audits-audits of the culture and quality of work life in an organization; determines if firms critical values are embraced/demonstrated by employees throughout the organization and how they view nature of work and quality of managers • How do employees spend their time • How do they interact with each other • What is there morale level • Are employees empowered • What is the predominant leadership style of managers • How do employees advance within the organization  Core Capabilities: integrated knowledge sets within an organization distinguish it from its competitors and deliver value to customers  Limited in number but provide a long term basis for technology innovation, product development and service delivery  Organizations can achieve sustained competitive advantage through ppl if following criteria is met: • Resources must be valuable- ppl are source of competitive advantage when they improve efficiency/effectiveness of company. Motivate employee creativity threw flexible hours, empowerment programs • Resources must be rare- ppl=competitive advantage when their knowledge, skills/abilities are not equally available to rivals • Resources must be difficult to imitate- ppl=competitive advantage when capabilities/contributions of a firm’s employees cant be copied • Resources must be organized- ppl=competitive advantage when their talents can be combined and developed to work on new assignments at any time  Composition of workforce: managers need to determine if ppl are available internally/externally to execute an organization’s strategy • Strategic knowledge workers(software developer)- unique skills directly linked to company strategy and difficult to replace. Companies invest long term in these employees(training, equity stake) • Core employees(sales ppl)- skills are valuable but not unique. Skills are transferable so possible for them to leave anytime so less investment in training & development. • Supporting labour(acct/HR)- skills of less strategic value to firm and generally available in labour market; duties are limited, employment relationships are transaction based. Less investment in T&D • Alliance partners(lawyers)-skills are unique but not directly related to firms core strategy but not readily available to all firms. Firms establish long term partnerships and nurture ongoing relationship focused on mutual learning. o Forecasting: A critical element of planning  Forecasting involves: • Forecasting demand for labour • Forecasting supply of labour • Balancing supply and demand considerations  Costs of not/poor forecasting: • Job vacancies left unfilled(loss in efficiency) • Difficult for employees to accurately assess their own career prospects and development o Quantitative Approach: Trend Analysis  Forecasting labour demand based on an organizational index such as sales: • Select a business factor that best predicts human resources needs • Plot the business factor in relation to the number of employees to determine the labour productivity ratio • Compute the productivity ratio for the past 5 years • Calculate HR demand= Business factor X Productivity ratio • Project HR demand out to the target years o Qualitative Approaches  Management forecasts- opinions of supervisors, department managers, experts, or others knowledgeable about the organizations future employment needs  Delphi Technique • An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgements of a preselected group of individuals • The final forecast reps a composite group judgement o Forecasting supply of employees: Internal labour supply  Tracking employee levels and making future projections about those levels  Staffing tables- graphic representations of all organizational jobs, along with number of employees currently occupying those jobs and future (monthly or yearly) employment requirements  Markov analysis- a method of tracking the pattern of employee movements through various jobs  Skill Inventories- files of personnel education, experience, interests, skills, etc., that allows managers to quickly match job openings with employee backgrounds.  Replacement charts- listings of current jobholders and persons who are potential replacements if an opening occurs  Succession Planning- the process of identifying, developing, and tracking key individuals for executive positions. • Step 4: Formulating Strategy o Strategy Formulation- moving from simple analysis to devising a coherent course of action. o SWOT analysis  A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation purposes  Strategy formulation builds on SWOT analysis to use the strengths of the organization to capitalize on opportunities, counteract threats, and alleviate internal weaknesses o Corporate strategy- focus on domain selection(which market to compete in) o Concentration strategy- focus on only limited portion of the industry o Growth and Diversification: growing companies focus more on geographic, volume, and product expansion. Growth hinges on 3 related elements:  Increased employee productivity  Greater number of employees  Employees developing or acquiring new skills o Value creation- what the firm adds to a product or service by virtue of making it; value=benefits-costs o Low-cost strategy- keep costs low so you can offer and attractive price relative to competitors but still maintain a valuable product for customers o Differentiation strategy- providing something unique and distinctive to customers • Step 5: Strategy Implementation o HRM is critical to every aspect of strategy implementation o Human capital readiness: Gap Analysis  The process of evaluating the availability of critical talent in the company and comparing it to the forms strategy.  Any difference b/w quantity and quality of employees required versus the quality and quantity of employees available reps the gap that needs to be closed o Labour Surpluses  Downsizing  Restructuring o Lay of strategies  Collective agreements  Last hired, first hired  By units  Seniority  Least competent o Workforce reduction options  Reduce hours  Eliminate shifts  Transfers  Attrition  Hiring freeze o Termination Strategies  Severance pay  Outplacement services • Step 6: Evaluation and Assessment o Evaluation and assessment issues  Benchmarking- the process of comparing the organizations processes and practices with those of other companies o Measuring Strategic Alignment- strategy mapping and the balanced scorecard  Balanced scorecard(BSC)- a measurement framework that helps managers translate strategic goals into operational objectives • Financial • Customer • Processes • Learning Chapter 4: Job Analysis, Employee Involvement, and Flexible Work Schedules  Job- a group of related activities and duties  Position- the different duties and responsibilities performed by only one employee  Job Family- a group of individual jobs with similar characteristics  Job Requirements  Job specification- statement of needed knowledge, skills, and abilities, of the person who is to perform the job.  Covers 2 areas: 1) skill required to perform job 2) physical demands job places on employee performing it  Attracts qualified applicants and discourages unqualified ones  Job Description- statement of the tasks, duties, and responsibilities of a job to be performed  Job title: • Provides status to employee • Indicates what the duties of job entail • Indicates relative lvl occupied by its holder in the organizational hierarchy  Job Identification Section: • Department location of the job • Person to whom the jobholder reports • Date the job description was last revised • Payroll or code number • Number of employees in the department where the job is located • NOC code number • “statement of job”  Job Duties or Essential Functions section: • Statements in job description of job duties and responsibilities that are critical for success on the job • A job function is essential if: ♦ The position exists to perform the function ♦ A limited number of employees are available to perform the function ♦ The function is specialized, requiring needed experitise or abilities to complete the job • Statements of job duties: ♦ Arranged in order of importance that indicate the weight/value of each duty; weight of a duty is gauged by the % if time devoted to it ♦ Stress the responsibilities that duties entail and the results to be accomplished ♦ Indicate the tools and equipment used by the employee in performing the job  Problems: • If poorly written, they provide little guidance to the jobholder • They are not always updated as job duties or specifications change • They may violate the law by containing specifications not related to job success • They can limit the scope of activities of the jobholder, reducing organizational flexibility  Relationship of Job requirements to other HRM functions:  Recruitment- determine recruitment qualifications.  Selection- Provide job duties and job specifications for selection process  Performance Appraisal- Provide performance criteria for evaluating employees  Trainings and Development- determine training needs and develop instructional programs to prepare employees for advancement to jobs where their capacities can be utilized to fullest extent.  Compensation Management- Provide basis for developing employee’s rate of pay  Job Analysis  The process of obtaining information about jobs by determining what the duties, tasks, or activities of jobs are.  HR managers use data to develop job descriptions/specifications that are the basis for employee performance appraisal and development  Concerned with objective and verifiable info about actual requirements of a job  Goal: improve organizational performance and productivity   Approaches:  Position Analysis Questionnaire(PAQ)- covers 194 diff tasks that(by means of 5 point scale) seeks to determine degree to which diff tasks are involved in performing a particular job • Permits dimensions of behaviour to be compared across number of jobs and permits jobs to be grouped on basis of common characteristics • Six Divisions: ♦ Information input ♦ Mental processes ♦ Work output (physical activities and tools) ♦ Relationships with others ♦ Job context(the physical and social environment) ♦ Other job characteristics (such as pace and structure)  Critical Incident Method • Job tasks are identified that are critical for job success • Job analyst writes 5-10 important task statements for each job under study, employee describes job on basis of what is done, how job performed, what tools/equip used.  Task inventory Analysis- an organization specific list of tasks and their descriptions used as a basis to identify components of jobs. Tailored to specific organizations • notes importance/frequency of use of task to the successful completion of the job  Competency-Based Analysis • Relies on building job profiles that look at the job responsibilities and the worker competencies necessary to accomplish them and to identify key competencies for organizational success  Controlling the Accuracy of Job Information  Factors influencing the accuracy of job info:  Self-reporting exaggerations and omissions by employees and managers  Collecting info from representative sample of employees  Capturing all important job info • Length of job cycle exceeding observation period • Ongoing changes in the job  National Occupational Classification(NOC)- composite of Canadian labour force  Purpose: compile, analyze and communicate info about occupations  Used for employment equity, HRM planning, and occupational supply. Facilities movement of workers from low employment areas to those of high employment opportunities  Job Design  an outgrowth of job analysis that improves jobs through technological and human considerations in order to enhance organization efficiency and employee job satisfaction.  Concerned with changing, modifying and enriching jobs in order to capture the talents of employees while improving organizational performance  4 basis considerations of job design:  Organizational objectives the job was created to fulfill  Industrial engineering considerations, including ways to make job technologically efficient  Ergonomic concerns including workers physical and mental capabilities  Behavioural concerns that influence an employee’s job satisfaction  Job Enrichment(Herzberg)  Enhancing a job by adding more meaningful tasks and duties(vertical expansion) to make the work more rewarding or satisfying  Providing opportunities for achievement, recognition, growth, responsibility, and performance  Managers can enrich jobs by: • Increasing level of difficulty and responsibility of the job • Allowing employees to retain more authority and control over work outcomes • Providing unit or individual job performance reports directly to employees • Adding new tasks to the job that require training and growth • Assigning individuals specific tasks, enabling them to use their particular competencies or skills  Factors: •  Job Characteristics  Job characteristics model (Hackman & Oldman, 1975)  Job design theory that purports that three psychological states of a jobholder result in improved work performance, internal motivation, and lower absenteeism and turnover. • Experiencing meaningfulness of work performed • Responsibility for work outcomes • Knowledge of the results of work performed  Employees must have desire for autonomy, variety, responsibility, and challenge of enriched jobs. When this is absent employees may resist job redesign which causes it to fail.  Cont’d  Skill variety: the degree to which a job entails a variety of diff activities that demand the use of a number of diff skills and talents by the jobholder.  Task identity: the degree to which the job requires completion of a whole and identifiable piece of work, that is, doing a job from the beginning to end with a visible outcome  Task Significance: the degree to which the job has a substantial impact on the lives or work of the other people, whether in the immediate organization or in the external environment.  Autonomy: the degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.  Feedback: the degree to which carrying out the work activities required by the job results in the individual being given direct and clear info about the effectiveness of his or her performance  Parker & Wall (1998). Job and work design  Workload  Physical context  Job security  Opportunity for skill acquisition  Social aspects(i.e., social contact, interaction, and support)  Demands(i.e., cognitive; costs associated with error, monitoring, home-work monitoring)  Role features(i.e., ambiguity, conflict, overload)  Peter Warr’s (1994) vitamin model of work well-being  Opportunity for control  Opportunity for skill use  Externally-generated goals (reasonable demands)  Variety  Environmental clarity  Availability of money  Physical security  Opportunity for interpersonal contact  Valued social position  Employee Empowerment:  Granting employee’s power to initiate change, thereby encouraging them to take charge of what they do.  Organizational conditions favouring empowerment:  Participation and autonomy  Innovation and acceptance of risk-taking  Access to info  Accountability for results  Cultural openness to change  Why are aspects of Job Design so motivating? Facilitate psychological meaning   Ergonomics- an interdisciplinary approach to designing equipment and systems that can be easily and efficiently used by human beings  Group techniques: to involve employees more fully in organization  Enhance collaboration and increase synergy  Can improve work processes, organizational decision making  Strengthens employee commitment to goals, increases employee acceptance of decisions, encourages cooperative approach to workplace tasks  Employee involvement groups- groups of employees who meet to resolve problems of offer suggestions for organizational improvement  Employee Teams- an employee contributions technique whereby work functions are structured for groups rather than for individuals and team members are given discretion in matters traditionally considered management prerogatives, such as process improvements, product or service development and individual work assignments  synergy occurs when the interaction and outcome of team members is greater than the sum of their individual efforts  Virtual Teams- a team with widely dispersed members linked together through computer and telecommunications technology  Meaningful Work:  Self-actualizing work(job enables one to fulfill ones potential and become a fully functioning person)  Social impact  Job enables one to fulfill life purpose, goals, and values  Feelings of personal accomplishment  Belief in achieving one’s highest career goals in one’s organization  Flexible Work Schedules:  Compressed week- shortening number of days in the work week by lengthening the number of hours worked per day  4day, 40h week referred to as 4/10 or 4/40  Benefits:  Recruitment and retention of employees  Coordinating employee work schedules with production schedules  Accommodating the leisure-time activities of employees while facilitating employee personal appointments  Improvements in employee job satisfaction and morale  Disadvantages:  Overtime payments required by provincial employment standards for employees  The additional stress on managers and employees, and long workdays can be exhausting  Flextime:  Working hours that permit employees the option of choosing daily starting and quitting times, provided that they work a set number of hours per day or week  All employees are required to be present during a designated “core period”  Flexible hours reduce absenteeism and tardiness  Employees can schedule their working hours for the time of day when they are most productive  Job Sharing: The arrangement whereby two part-time employees perform a job that otherwise would be held by one full-time employee.  Advantages: • Employees can be scheduled at peak times • Allows parents to work part time/ give time for personal needs so less likely to be absent • Reduces layoffs in hard economic times  Disadvantages: • Time to train second employee costs money • If job sharers cannot work together • Hard to supervise 2 employees for same job  Telecommuting- the use of personal computers, networks, and other communications technology to do work from home that is traditionally done in the workplace  Advantages: • Increased flexibility for employees • Ability to attract workers who might not otherwise be available • Lessened burden on working parents • Less time and money wasted on physical commuting • Increased productivity, lower overhead costs/reduced office space • Reduced absenteeism  Disadvantages: • Loss of creativity since employees not interacting on daily basis • Developing appropriate performance standards and evaluation system • Need to formulate an appropriate tech strategy to allocate equipment  Keys for successful telecommuting • Identify jobs best suited to distance work • Select responsible employees • Establish employee feedback procedures and performance review methods for evaluation • Establish formalized telecommuting procedures • Begin a formal training program • Keep telecommutes informed and “in the loop” • Recognize when telecommuting isn’t working Chapter 5: Expanding the talent pool; Recruitment and careers  Recruiting Talent Externally:  Labour market-area form which applicants are to be recruited  Tight market: high employment, few available workers  Loose market: low employment, many available workers  Factors determining the relevant labour market  Skills and knowledge required for a job  Level of compensation offered for a job  Reluctance of job seekers to relocate  Ease of commuting to workplace  Location of job (urban/rural)  External sources of Recruitment  Ads • Can reach a large audience • Selectivity threw advertising in certain magazines and journals • Preparing ad can be time consuming and can attract unqualified workers which causes hr to be burdened by eliminating them  Unsolicited applications and resumes • Brings both good and bad prospects but when employees apply on their own initiative they are usually be better workers  Internet recruiting • Most common; cheaper, faster, more effective • Employers can post job opportunities to site that consist of specific talent pools  Employee referrals • Usually good way to fill position cause employees will not recommend ppl who might not perform cause it looks bad on them • Ways to increase effectiveness of employee referral programs: ♦ Up the ante- provide incentive for good referrals for person who referred ♦ Pay for performance- pay referral bonus after 6 months of hire so employee encouraged to help new hire succeed ♦ Tailor the program- communication of skills required and reaffirmation of values/ethics sought in applicants so employees know what type of person organization is looking for ♦ Increase visibility- celebrate success; keep everyone thinking bout brining in good ppl ♦ Keep the data ♦ Rethink your taboos- in tight labour market good to broaden search to include former employees and relatives ♦ Widen the program- ask former employees for referrals ♦ Measure results • Disadvantages: ♦ Can cause corporate in breeding and systematic discrimination since employees & referrals tend to have similar backgrounds. ♦ Might seem like favoritism  Executive search firms • “Head-hunters” find candidates with qualifications that match their clients job opening • Sometimes they over sell candidates and make them look like superman • CEOS from outside firm usually see need for change but cant make it happen cause unfamiliar with firm/industry • CEOS from inside firm usually know company but often blind to the need for radical change • Best to find an insider with an outsiders mind set  Educational institutions • Brings applicants with formal training but little/no full-time work experience • Poor recruitment programs/recruiters may cause candidates to overlook position cause not enough info about it. As well as visiting to many schools and lack to use off campus placement office • To attract high demand graduates firms offer work-study programs, internships, low interest loans and scholarships  Labour unions • Provide applicants for blue collar jobs  Public employment agencies • Provinces maintain employment agency to administer employment insurance program • Ppl who unemployed must register here to receive EI cheques; now able to refer applicants with required skills who are available to work for employers • Job banks help facilitate movement of job applicants to diff geographic areas • Assist employers with employment testing, job analysis, evaluation programs and community wage surveys  Private employment agencies • Charging fees help them tailor services to the specific needs of their clients; common for them to specialize in certain field • Downside: if by commission recruiter might force applicants to choose job not suited for them; must take time to find knowledgeable professional recruiter  Temp agencies • Used for short term assignments for which managers can’t justify hiring a fulltime employee • Adds flexibility cause temps can be fired quickly with less cost.  Improving effectiveness of external recruitment  Calculate yield ratios- % of applicants from a recruitment source that make it to the next stage of the selection process • By calculating this it’s possible to find out which sources produce qualified applicants  Organizational recruiters- who does the recruiting in the firm? • Small firm- hr generalist • Big firm- hr department  Realistic job previews • Informing applicants about all aspects of the job, including desirable/undesirable facets • Benefits: ♦ Improved employee job satisfaction ♦ Reduced voluntary turnover ♦ Enhanced communication through honesty and openness ♦ Realistic job expectations  Cost of recruitment (per employee hired) • SC/H=AC+AF+RB+NC/H ♦ SC= source cost ♦ AC= ad costs, total monthly expenditure ♦ AF= agency fees, total for the month ♦ RB= referral bonuses, total paid ♦ NC=no cost hires, walk-ins, no profit agencies ♦ H= total hires  Recruiting Talent Internally  Advantages of a promotion-from-within policy:  Capitalize on past investments in current employees  Rewards past performance and encourages continued commitment to the organization  Signals to employees that similar efforts by them will lead to promotion  Decreased socialization costs  Accurate record of past performance  Limitations of a promotion-from-within policy:  Current employees may lack the knowledge, experience or skills needed for placement in the vacant/ new position  Hazards of inbreeding ideas and attitudes (employee cloning) increase when no outsiders are considered for hiring  No new blood, may also reflect indirect discrimination  The organization has exhausted its supply of viable internal candidates and must seek additional employees in the external job market  Methods for Identifying qualified Candidates  Job posting and bidding- posting vacancy notices and maintaining lists of employees looking for upgraded positions  Performance appraisal  9 box grid- a comparative diagram that includes appraisal and assessment data to allow managers to easily see an employee’s actual and potential performance  Inventory management talent- allow organization to rapidly screen workforce to find suitable candidate to fill position  Provide indication of employee’s skills, interests and experiences. Grooms replacements for management positions.  Assessment centre- process by which individuals are evaluated as they participate in a series of situations that resemble what they might be called on to handle on the job  In basket exercises- simulates a problem situation and participants forced to make decisions under pressure  Leaderless group discussions- discuss topic with no leader and are evaluated on initiative, leadership skills, ability to work effectively in group setting  Role playing- exercise involving preparing for engaging customer or a team leader  Behavioural interviews- interviewer asks participant a series of “what they would do in specific situations” questions Chapter 6: Employee Selection  Matching people and jobs  Selection- process of choosing individuals who have relevant qualifications to fill existing/projected job openings  Selection considerations  Person-job fit: job analysis identifies required individual competencies for job success • Managers can use selection methods to measure applicants knowledge, skills, abilities and other factors(KSAO)  Person-organization fit: degree to which individuals are matched to the culture and values of the organization • Concerns that this will create an overly unified workforce void of diversity   The Selection Process  Steps on selection process  Completion of application  Initial interview  Employment testing  Background investigation  Preliminary selection  Supervisor/ team interview  Hiring decision  Obtaining reliable and valid info  Reliability- degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures • Interrater reliability- agreement among 2 or more raters  Validity- degree to which a test or selection process measures a person’s attributes • Reason for validating a procedure ♦ Directly related to increase in employee productivity ♦ Employment equity regulations require selection procedures to be valid  Approaches to Validation  Criterion-related validity: extent to which a selection tool predicts, or correlates with important elements of work behaviour; i.e., comparing test performance with actual production records, supervisory records.  Concurrent validity: extent to which test scores match criterion data obtained at about the same time from current employees  Predictive Validity: extent to which applicants test scores match criterion data obtained from those applicants/employees after they have been on the job for some time  Cross validation- verifying the results obtained from a validation study by administering a test or test battery to a different sample(drawn from the same population  Validity Coefficient: a number rating from 0.00(complete absence of relationship) to 1.00 and to -1.00 indicating perfect positive/ negative relationship  Validity generalization- extent to which validity coefficients can be generalized across situations  Content Validity: extent to which a selection instrument adequately samples the knowledge and skills needed to perform a job  Used when limited sample of individuals; closer the content of the selection instrument is to actual work samples/behaviour the greater the content validity  Most direct and least complicated type of validity to assess  Construct validity: extent to which a selection tool measures a theoretical construct or trait, difficult to validate(intelligence, mechanical comprehension, and anxiety)  Measuring this requires showing that the psychological trait is related to satisfactory job performance and that the test accurately measures the psychological trait  Sources of info on job candidates  Application forms  Standardization- provides info on if applicant meets min requirements  Human rights  Interview format-provides basis for questions asked  Reference check  misrepresentation  Online applications- an internet based automated posting, application, and tracking process helps firms to more quickly fill positions by:  Attracting a broader and more diverse applicant pool  Collecting and mining resumes with keyword searches to identify qualified candidates  Conducting screening tests online  Reducing recruiting costs significance  Biographical info blanks (BIB)- reveals info bout person history that may have shaped his behaviour(family life, hobbies, club membership, sales experience, investments)  Background investigations- can reduce/prevent embezzlement, theft, workplace violence  Polygraph tests- prohibited for employment purposes under the employment standards act  Integrity/ honesty tests-  Graphology- a variety of systems of handwriting analysis. Used to draw inferences about personality traits, intelligence, energy level, creativity, self- image and ppl skills  Employment tests- an objective and standardized measure of a sample of behaviour that is used to gauge a person’s knowledge, skills, abilities and other characteristics in relation to other individuals  Classifications  Cognitive ability tests- measures mental capabilities such as general intelligence, verbal fluency, numerical/reasoning abilities. • Aptitude tests-measures persons capability to learn skills • Achievement tests-measures what person knows/ can do right now  Personality and interest inventories- measures disposition and temperament • Big five personality factors: ♦ Agreeableness-degree to which person is trusting, tolerant, honest flexible ♦ Conscientiousness- degree to which person is dependable, organized and perseveres in tasks ♦ Extroversion-degree to which person is sociable, active, and aggressive ♦ Neuroticism- how secure, calm, independent, and autonomous someone is ♦ Openness to experience- how intellectual, philosophical, insightful, creative, artistic and curious someone is  Physical ability tests- must be related to essential functions of the job; can cause discrimination lawsuits by women  Job knowledge tests- an achievement test that measures a person’s level of understanding about a particular job  Work sample test- requires the applicant to perform tasks that are actually a part of the work required on the job; competency based selection uses these tests  Interviews: why so popular  Practical when there are only small number of applicants  Serves other purposes such as public relations  Interviewers maintain great faith and confidence in their judgements  Problems of subjectivity and personal bias  Interviewing methods:  Nondirective interview- applicant determines course of discussion while interviewer refrains from influencing applicants remarks • Interviewer will only ask open ended questions to make applicant elaborate • Reliability/validity of interview is minimal cause Qs can’t be standardize and compared across candidates  Structured interview- an interview in which a set of standardized questions having an established set of answers is used; provides more consistent basis for evaluating candidates. More likely to predict on the job performance • Situational interview- an interview in which an applicant is given a hypothetical incident and asked how would respond • Behavioural description interview- applicant asked questions about what they actually did in situation • Panel interview- board of interviewers question and observe single candidate; reduces discrimination.  Selection Decision Models:  Clinical approach- interviewers personal judgement; biases and stereotypes frequently covered up by what appear to be rational decisions  Statistical approach: identifying most valid predictors and weighting them using statistical methods such as multiple regression  Compensatory model- permits a high score in one area to make up for a low score in another  Multiple cutoff model- requires an applicant to achieve a minimum level of proficiency on all selection dimensions  Multiple hurdle model-only applicants with sufficiently high scores at each selection stage go on to subsequent stages in the selection process • Useful when testing/training procedures are lengthy/expensive Chapt
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