The objectives of this chapter: Define human resources management and explain its significance; summarize the processes of recruiting and selecting human resources for a company; discuss how workers are trained and their performance appraised; identify the types of turnover companies may experience, and explain why turnover is an important issue;...
Chapter Eleven Managing Human Resources © 2003 McGrawHill Ryerson Limited Temporary Staffing 11-1 • Is a $50 billion a year business • Sends more than 2.5 million people to work each day as temps • Is used by one in five corporations for at least 10% of its workforce © 2003 McGrawHill Ryerson Limited Source: Katherine Mieszkowski, “Don’t Wanna Be You (Temp) Slave!,” Fast Company, September 1998, p. 40 Processes of Job Analysis Job analysis The determination through observation and study, of pertinent information about a job, including specific tasks and necessary abilities, knowledge, and skills Job description The formal, written description of a specific job, such as the job title, tasks to be performed, and mental skills required, duties, and responsibilities 11-2 physical Job specification © 2003 McGrawHill Ryerson Limited The written description of the qualifications necessary for a specific job, such as education, experience, personal characteristics, and physical characteristics Recruiting New Employees Recruiting Pool 11-3 Internal Sources External Sources Current Employees “Head Hunters” Universities & Colleges Classifieds © 2003 McGrawHill Ryerson Limited The Selection Process 11-4 Application Interview © 2003 McGrawHill Ryerson Limited Testing Reference Checking Job? Skills Lacked by Job Applicants 11-5 Foreign language Technology © 2003 McGrawHill Ryerson Limited 43% 15% Source: “Footnotes,” Business Week, May 25, 1998, p. 8 Education Pays Average salary by education level in 1995 11-6 $42,054 $22,846 $19,377 University Degree © 2003 McGrawHill Ryerson Limited High School Less than Grade 9 Source: Statistics Canada Legislation Regulating Hiring and Compensation Practices 11-7 • Employment Equity Act (1987). The Federal enacted a law governing the hiring practices of federally regulated organizations • Human Rights Acts (various). Each province has its own variation of the law to govern the rights and freedoms of all people, regardless of their race, religion, sexual orientation, age, gender, etc © 2003 McGrawHill Ryerson Limited Paycheck Gender Gap 11-8 Women make just 71 cents for every $1 men make © 2003 McGrawHill Ryerson Limited , Source: The Daily Statistics Canada, May 12, 1998, page 5, 1995 Census Turnover 11-9 • Promotion • Transfer • Separation – resign – retire – terminate (layoff, downsize) © 2003 McGrawHill Ryerson Limited Different Compensation Plans 11-10b Salary Financial award calculated on a weekly, monthly, or annual basis Bonus An addition to regular compensation for exceptional performance or in appreciation for good work Profit sharing Distribution of percentage of company profit to employees; sometimes distribution is in the form of company stock © 2003 McGrawHill Ryerson Limited Valued Benefits for Families What executives most say are valuable benefits to offer employees with dependentcare needs: 92% Flexible hours 11-11 Family/medical leave Resource/referral 81% Employee assistance program 78% Parttime/job sharing 86% 72% Dependent care account 64% Telecommuting 64% © 2003 McGrawHill Ryerson Limited Source: USA Today, September 16, 1998, B1 Contract Issues 11-12a Wages Security Form of pay Magnitude of pay Determinants of pay Costofliving adjustments Shift differential adjustments Determination of methods of promotion, transfers Job protection Protection of the union as bargaining agent Benefits Insurance (health and life) Retirement Profit sharing (ESOPs) © 2003 McGrawHill Ryerson Limited Contract Issues 11-12b Hours of Work Other Issues Overtime Vacation Sick time Holidays Maternity/paternity leave Breaks (lunch and coffee) Rest periods Grievance procedures Union activities and responsibilities Management activities and responsibilities Strikes Working conditions © 2003 McGrawHill Ryerson Limited The Collective Bargaining Process 11-13 Union prepares list of demands and concessions: Pay raises Overtime rates Benefits Security Seniority Management prepares list of demands and concessions: Scheduling Hiring and firing Pay cuts Production standards Discipline Negotiation teams establish rules and schedule meetings Negotiation and compromise Ratification of contract Rejection of contract Union represents workers at that work facility Union tactics: Strikes, Boycotts, Picketing Management tactics: Lockouts, Strikebreakers Renegotiation of contract © 2003 McGrawHill Ryerson Limited Pressure Tactics of Labour and Management 11-14 Labour • Strikes • Picketing • Boycott Management Lockout Strikebreakers/hiring replacements â2003McGrawưHillRyersonLimited TheNumberofMajor LabourDisputesare Declining 11-15 # of Strikes or Lockouts 1989 1999 620 413 © 2003 McGrawHill Ryerson Limited # of Workers Involved 480,000 159,000 Source: Statistics Canada, Perspectives on Labour and Income, Catalogue No. 75001, Autumn 2001 Characteristics of Diversity Secondary 11-16 Characteristics • Education • Work Background • Income • Marital Status • ParentalStatus MilitaryExperience ReligiousBeliefs GeographicLocation â2003McGrawưHillRyersonLimited PrimaryCharacteristics Sexual Orientation Age Gender Race Ethnicity Abilities Boss Gender Preference 11-17 Depends or doesn’t matter 63% Preference among currently employed adults for a male or female boss: Male 23% Female 12% Not sure 2% © 2003 McGrawHill Ryerson Limited Source: USA Today, November 11, 1998, p. B1 Solve the Dilemma 11-18 a What did Medallion’s HRM department do right in dealing with the employees who were laid off? b What are some of the potential problems that must be dealt with after an organization experiences a major trauma such as massive layoffs? c What can Medallion do to make the team approach work more smoothly? What role do you think diversity training should play? © 2003 McGrawHill Ryerson Limited Explore Your Career Options 11-19 What are some of the factors you consider most important in deciding which job to accept after graduation? Is your decision about your university or college major most influenced by salary, hiring potential in particular areas, or quality of life issues? © 2003 McGrawHill Ryerson Limited Additional Discussion Questions and Exercises 11-20a Where do most firms recruit qualified applicants? Why has the use of physical examinations in the selection process become controversial for business? Employee Assistance Programs (EAPs) add to company costs. Why should a firm bother with Employee Assistance Programs ? Bring a copy of a local newspaper “Help Wanted” section to class. What qualifications (job specifications) do the ads request of applicants? © 2003 McGrawHill Ryerson Limited Additional Discussion Questions and Exercises 11-20b Bring a copy of a performance appraisal form to class. Copies may be secured from companies, or examples may be presented in textbooks. Is the performance appraisal based on objective or subjective information? Is the performance appraisal based on preset objectives for the individual employee? © 2003 McGrawHill Ryerson Limited Chapter 11 Quiz 11-21a Which of the following positions is most likely to be compensated through commissions? a counter worker at a fastfood restaurant b bricklayer c automobile salesperson d secretary Which of the following is not an example of a benefit? a bonuses b retirement plans c health insurance d credit union membership © 2003 McGrawHill Ryerson Limited Chapter 11 Quiz 11-21b Which of the following brings in a neutral third party to settle the dispute in which the decision made by the third party is legally binding and enforceable? a boycott b conciliation c mediation d arbitration Which of the following is NOT a benefit of workforce diversity? a more productive use of company's human resources b reduced conflict among employees of different ethnicities c increased conflict among employees of different ethnicities d increased innovation and creativity © 2003 McGrawHill Ryerson Limited ... What are some of the potential problems that must be dealt with after an organization experiences a major trauma such as massive layoffs? c What can Medallion do to make the team approach work more smoothly? What role do you think ... © 2003 McGrawHill Ryerson Limited Different Compensation Plans 1 1-1 0b Salary Financial award calculated on a weekly, monthly, or annual basis Bonus An addition to regular compensation for exceptional performance or in ... Legislation Regulating Hiring and Compensation Practices 1 1-7 • Employment Equity Act (1987). The Federal enacted a law governing the hiring practices of federally regulated organizations • Human Rights Acts (various). Each province has