HRM 200 Exam
Incentives for Operations Employees - Standard Hour Plan
- A plan by which a worker is paid a basic hourly rate plus an ext rat percentage of his or her base rate for production exceeding the standard per hour or per day - Similar to piecework payment but is based on a percentage premium
Incentives for Operations Employees - Team or Group Incentives
- A plan in which a production standard is set for a specific work group and its members are paid incentives if the group exceeds the production standard
Requirement for Reasonable Accommodation
- Adjustment of employment policies/practices so that no individual is: - Denied benefits - Disadvantaged in employment - Prevented from carrying out a job - Based on prohibited grounds in human rights legislation - E.g. work station redesign for wheelchair
Variable Pay
- Any plan that ties pay to productivity or profitability
Preserving Dignity in the Retirement Process
- By 2025, more than 20 perfect of the Canadian population will be over 65, and the labour force will shrink dramatically - For many years, the trend has been toward earlier retirement - the average retirement age dropped from 5 in 1979 to 61 in 2005 - At any age, retirement for most employees is bittersweet - Pre-retirement counselling refers to counselling provided to employees some months (or even years) before retirement
Five Components of Total Rewards
- Compensation - Benefits - Work-life programs - Performance and recognition - Development and career opportunities
Legal Framework for Employment Law in Canada
- Constitutional law - Legislated Acts of Parliament - Regulations - Common Law - Contract Law
Recruiting Within and Organization: Disadvantages
- Discontent of unsuccessful candidates - Time consuming to post and interview all candidates if one is already preferred - Employee dissatisfaction with insider as new boss - Possibility of "Inbreeding"
Basic Facts about OHS Legislaton: Responsibilities and Rights of Employers and Employees
- Due Diligence - employers are responsible for taking every reasonable precaution to ensure the health and safety of their workers - Specific duties of the employer include: - Filing government accident report - Maintaining records - Ensuring that safety rules are enforced - Posting safety notices and legislative information - Employees are responsible for taking reasonable care to protect their own health and safety and in most cases that of their co-workers - Specific requirements include wearing protective clothing and equipment and reporting any contravention of the law or regulations - Employees have three basic rights: the right to know about workplace safety hazards, the right to participate in the OHS process, the right to refuse unsafe work
External Environmental Influences
- Economic conditions - Unemployment levels - Productivity levels - Growth of the service sector - Decline of resource (primary) and manufacturing (secondary) sectors - Value of the Canadian dollar - Diversity of local economy - Labour market issues - Labour union movement - Use of contingent and part-time employees for non-standard jobs - Talent pool - Availability of people - Type of KSAO's available - Workforce demographics - Government Ensure policies and practices comply with new and changing laws covering - Human rights - Employment standards - Labour relations - Occupational health & safety - Workers' compensation - Technology - Twitter - Facebook - videoconferencing - Questions raised concerning data control, accuracy, right to privacy, and ethics - Organizations are monitoring employee email, voice mail, telephone conversations, computer usage, and behaviour (using video surveillance) - Globalization - Firms extend business operations abroad - Emergence of one world economy - Increased international competition - Multinational corporations: conduct business around the world, seek cheap skilled labour - HR professionals must become familiar with employment legislation in other countries and manage ethical dilemmas when labour standards are lower than those in Canada
Outcomes of Engagement
- Employees highest productivity - Best ideas - Genuine commitment to the success of the organization - Improvements in service quality, customer satisfaction, and long-term financial results - Serves the individual, fulfilling a basic human need to be connected to worthwhile endeavours and make a significant contribution - Engagement is good for the company and good for the employee
Recruiting Within the Organization: Advantages
- Employees see that competence is rewarded thus enhancing commitment, morale, and performance - Insiders may be more committed to company goals and less likely to leave - Managers are provided with a longer-term perspective when making business decisions - Firm is likely to have a more accurate assessment of person's skills and performance level - Inside candidates require less orientation
Government-Sponsored Benefits
- Employment Insurance (EI) - A federal program that provides income benefits if a person is unable to work through no fault of their own - Canada/Quebec Pension Plan (C/QPP) - Retirement income - Survivor or death benefits - Disability benefits - Workers' Compensation - Provides income and medical benefits to victims of work related accidents or illnesses and/or their dependants, regardless of fault - Vacations and holidays - Minimum amount of paid factions that must be provided to employees, usually two weeks per year - Leaves of absence - Unpaid - Specified in employment standards legislation - Maternity/parental leave - Parental/adoption leave - Bereavement leave - Compassionate care leave - Pay on termination of employment - Specified in employment standards legislation - Pay in lieu of notice - Severance pay - Pay for mass layoffs
Employment/Labour Standards Legislation
- Establish minimum employee entitlements pertaining to: - Wages, paid holiday, vacation - Maternity, parenting leaves - Bereavement - Termination notice - Overtime pay - Set limit on max working hours permitted per day or week - Principle of equal pay for equal work
Strategic Importance of Effective Employee Relations
- For competitive advantage, employees must be motivated and engaged in pursuing organizational goals - Ensure employees are treated ethically, fairly and legally Distributive Justice - Fairness of a decision outcome Procedural Justice - Fairness of the process used to make a decision Interactional Justice - Fairness in interpersonal interactions by treating others with dignity and respect
Recruiting Outside the Organization: Advantages
- Generation of a larger pool of qualified candidates - Availability of a more diverse applicant pool, which can assist in meeting employment equality goals and timetables - Acquisition of skills or knowledge not currently available within the organization and/or new ideas and creative problem-solving techniques - Elimination of employee rivalry and competition for transfers and promotions - Potential cost savings resulting from hiring individuals who already have the skills, rather than providing extensive training - Larger, more diverse pool of qualified candidates
Strategic Importance of Technology in HRM
- HR technology is any technology that is used to attract, hire, retain, and maintain talent, support workforce admin, and optimize workforce management - Can be used in different types of human resource info systems, used by various stakeholders and accessed in different ways - A strong strategic relationship between HR and technology will enable HR to achieve three key objectives: - Strategic alignment with business objectives - Business intelligence - providing users with relevant data - Effectiveness and efficiency - changing how HR work is performed by reducing lead times, costs and service levels
Types of Incentive Plans
- Incentives for operations employees - Incentives for senior managers and executives - Incentives for salespeople - Incentives for other managers and professional employees - Organization wide incentives
JHSC is responsible for
- Inspecting the workplace in order to identify potential health and safety hazards - Evaluating the hazards - Implementing solutions - Investigating employee complaints - Investigating accidents - Promoting measure to protect health and safety - Disseminating information about health and safety laws and regulations
Methods of Collecting Job Analysis Information - Qualitative
- Interviews - Questionnaires - Observation - Participant diary/log
Strategic Importance of Occupational Health and Safety
- Investment in disability management and proactive wellness programs create measurable bottom-line returns - According to the Association of Workers' Compensation Boards of Canada, in 2007 there were 1055 deaths and 317 524 injuries resulting from accidents at work - On April 28 each year, a day of mourning is observed for Canadian workers killed or injured on the job - Workplace accidents can be prevented
Three Work- Related Accident Factors
- Job (some inherently dangerous) - Work Schedule (fatigue) - Psychological Climate (stress)
Recruiting Within the Organization: Requirements
- Job posting - Human resources records - Skills inventories
OHS Legislation
- Laws intended to protect the health and safety of workers by minimizing work-relating accidents and illnesses Purpose: - These laws fall into three categories: general health and safety rules, rules for specific industries, rules related to specific hazards
Basic Considerations in Determining Pay Rates
- Legal considerations in compensation - Union influences on compensation decisions - Compensation policies - Equity and its impact on pay rates
Human Resource Management
- Managing people in organizations to drive successful organizational performance and achievement of organization's strategic goals - Managing human capital: Knowledge, education, training, skills, expertise
Forecasting Availability of Internal and External Candidates (Supply)
- Markov Analysis - Skills Inventories - Management Inventories - Replacement Charts - Replacement Summaries - Successions Planning
Incentives for other Managers and Professionals
- Merit Pay (merit raise) - Any salary increase awarded to an employee based on his or her individual performance
Employee Services
- Personal Services - Credit unions - Counselling services - Employee Assistance Programs - Other (social and recreational) - Job related services - Subsidized childcare - Eldercare - Subsidized employee transport.. - Food services - Education subsidies - Family-friendsly benefits - Executive perquisites (perks) - Management loans - Salary guarantees - Financial Counselling - Outplacement assistance - Company cars - Concierge service
Methods of Collecting Job Analysis Information - Quantitative
- Position Analysis Questionnaire - Functional Job Analysis - National Occupation Classification (NOC)
Point Method Steps
- Preliminary steps - Determine factor weights and degrees - Assign points for each degree of each sub-factor - Evaluate the jobs
Basic Facts About OHS Legislation: Joint Health and Safety Committees (JHSC)
- Provides a non adversarial atmosphere where management and labour can work together to ensure a safe and healthy workplace - Committees are usually require to consist of between 2 and 12 members, at least half of whom must represent workers - In small workplaces, one health and safety representative may be required
Incentives for Salespeople
- Salary plan - Commission plan - Combination plan - Sales compensation in e-commerce era
Management by Objectives (MBO)
- Set the organization's goals - Set the departmental goals - Discuss departmental goals - Define expected results (Individuals goals) - Performance reviews: measure the results - Provide feedback
Incentives for Senior Managers and Executives
- Short term incentives - annual bonus - Long term incentives - stock options, share units, relating strategy to executive compensation
HRM Responsibilities: Strategic
- Strategy: the companies plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage - Increasingly, the HR department is being viewed as an equal partner in strategic planning process - HR specialists are expected to be change agents
Occupational Health Issues and Challenges
- Substance abuse - Job stress - Repetitive strain injuries - Workplace toxins - Workplace smoking - Influenza pandemic - Violence at work
Effective Employee Communication
- Suggestion programs - Employee opinion surveys - Communication from management
Who should do appraising?
- Supervisors - Peers - Committees - Self - Subordinate - 360-degree appraisal (all of the above)
Types of Tests Used in Selection
- Tests of cognitive abilities - Motor/physical abilities - Personality and interests - Achievement tests - Work sampling - Management assessment centres - Situational testing - Micro-assessments - Physical examination and substance abuse testing
Types of Validity
- The accuracy with which a predictor measures what it is intended to measure Differential Validity: - Confirmation that the selection tool is accurately predicts the performance of all possible employee subgroups, including white males, women, visible minorities, persons with disabilities and aboriginal people Criterion-Related Validity: - Extent to which a selection tool predicts or significantly correlates with important elements of work behaviour Content Validity: - Extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to perform the job Construct Validity: - Extent to which a selection tool measures a theoretical construct or trait deemed necessary to perform the job successfully
Employer Branding
- The image or impression of an organization as an employer based on the benefits of being employed by the organization - Branding includes experiences a candidate goes through while interacting with a company throughout the recruitment process Employer branding involved three steps: 1) Define the target audience, where to find them, and what they want from an employer 2) Develop the employee value proposition - the specific reasons why the organization is a unique place to work and a more attractive employer for the target audience compared to other organizations 3) Communicate the brand by incorporating the value proposition into all recruitment efforts
Selection
- The process of choosing among individuals who have been recruited to fill existing or projected job openings Important because: - Quality of human resources determine organizational performance - High cost of inappropriate selection decisions - Significant legal implications
The Impact of Technology on the Role of HR
- The traditional HR role has changed in three major ways as a result of the technologically enabled environment: 1. Decreased transactional activities 2. Increased client/customer focus 3. Increased delivery of strategic services
Measuring the Value of HR: Metrics
- The use of metrics, or statistics, to measure the results of HR, is quite common Balanced Scorecard: A measurement system that translates organization's strategy into a comprehensive set of performance measures
Benefits Administration
- Use of software - Outsourcing - Benefits communication
Pay Equity
- Wage gap: average pay for males is 30% higher than average pay for females - Pay equity intended to eliminate systemic pay discrimination by providing equal pay to male-dominated job classes and female-dominated job classes of equal value to the employer - Must ensure no gender bias in job evaluation
Employment Equity Designated Groups
- Women - Visible minorities - People with disabilities - Aboriginals
Avoiding Wrongful Dismissal Suits
1. Use employment contracts with a termination clause and with wording clearly permitting the company to dismiss without cause during probationary period 2. Document all disciplinary action 3. Do not allege just cause for dismissal unless it can be proven 4. Time the termination so that it does not conflict with special occasions, such as birthdays or holidays 5. Use termination letters in all cases, clearly stating the settlement offer 6. Schedule the termination interview in a private location at a time of day that will allow the employee to clear out belongings with a minimal amount of contact with other employees 7. Include two members of management in the termination meeting
Job Description
A list of duties, responsibilities, reporting relationships, and working conditions of a job - one product of a job analysis - Job identification - Job summary - Relationships - Duties and relationships - Authority - Performance standards/indicators - Working conditions and physical environment
Job Specification
A list of the "human requirements," that is, the requisite knowledge, skills, and abilities, needed to perform the job - another product of a job analysis
Employee Engagement
A positive, fulfilling, work-related state of mind characterized by vigour, dedication, and absorption
Discipline
A process intended to correct an employee's behaviour because a rule or procedure has been violate
Recruiter
A specialist in recruitment, whose job is to find and attract capable candidates
Behaviourally Anchored Rating Scales
An appraisal method that aims to combine the benefits of narratives, critical incidents, and qualified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance - Generate critical incidents - Develop performance dimensions - Reallocate incidents - Scale the incidents - Develop the final instrument Advantages - More accurate measure - Clearer standards - Assists feedback - Independent dimensions - Consistency Disadvantages - Time consuming
Wrongful Dismissal
An employee dismissal that does not comply with the law or does not comply with a written or implied contractual arrangement
Appraisal Interviews
An interview in which the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths 3 basic types of appraisal interviews include: 1. Satisfactory (promotable) - make development plans 2. Satisfactory (not promotable) - maintain performance 3. Unsatisfactory (correctable) - plan correction
Permissible Discrimination
Bona Fide Occupational Requirement - Justifiable reason for discrimination - Based on business necessity for safe and efficient operations - Intrinsically required by job tasks (e.g. muse have sight to drive a truck)
Job Evaluation Methods
Classification/grading method - Classification/grading method categorizes jobs into groups - Classes contain similar jobs - Grades contain dissimilar jobs of equal difficulty - Grade/group description is a written description of the level of compensable factors required b y jobs in each grade Point method - Identify compensable factors - Determine the degree to which each factor is present in each job
Position
Collection of tasks/responsibilities performed by one person
Competency-Based Pay
Competencies - Individual knowledge, skills and behaviours that are critical to successful individual or corporate performance - Pay for range, depth and types of knowledge that employees are capable of using, rather than current job duties
Discrimination
Distinction, exclusion or preference based on prohibited ground which nullifies or impairs a person's rights to full and equal recognition and exercise of human rights and freedoms
Strategic Role of Employee Benefits
Employee Benefits - Indirect financial payments given to employees - May include supplementary health and life insurance, vacation, pension, education plans and discounts on company products
Job Stress: Sources
Environmental Factors: - High demand job - High levels of mental and physical effort Personal Factors: - Type A personalities - Patience - Tolerance for ambiguity - Self-esteem - Health and exercise - Work and sleep patterns - Non-job-related problems like divorce, depression, work/family time conflict
Forecasting Future HR Needs (Demand)
Forecasting based on: - Projected turnover - Quality and nature of employees relative to needs - Decisions regarding product quality and new markets - Plans for technological and administrative changes to increase productivity and reduce headcount - Financial resources available Quantitative Approaches: - Trend analysis - Ratio analysis - Scatter plot - Regression analysis Qualitative Approaches: - Nominal Group Techniques - Delphi Techniques - Managerial Judgement
Job
Group of related activities/duties for one or more employees
HRIS
Human Resources Information System
Strategic Importance of Human Resources Planning
Human Resources Planning (HRP) - The process of forecasting future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives shortages/surpluses Key steps in the HRP process include: - Forecasting demand for labour - Analyzing the labour supply - Planning and implementing HR programs to balance supply and demand
Types of Discrimination Prohibited
Intentional - Direct - Differential/unequal treatment - Indirectly - Based on association Unintentional - Apparently neutral policies have adverse impact on protected groups
Dismissal
Involuntary termination of an employee's employment
The Nature of Job Analysis
Job Analysis - Procedure for determining tasks, duties, and responsibilities of each job and the human attributes (knowledge, skills, abilities) required to perform it
Job Design Considerations
Job Specialization (Industrial Engineering) - Work simplification - Industrial engineering Behavioural Aspects - Job enlargement, job rotation, job enrichment, team based job design Ergonomic Aspects - Physical needs of workers Increasing Job Flexibility - Cognitively complex, more team-based, more dependent on social skills and technological competence, time pressured, mobile, and less dependent on geography
Ensuring that the Appraisal Interview Leads to Improved Performance
Legal experts suggest following these seven steps: - Let the employee know that his or her performance is unacceptable and explain your minimum expectations - Ensure that your expectations are reasonable - Let employees know that warnings play a significant role in the process of establishing just cause - Ensure that you take prompt corrective measures when required - Avoid sending mixed messages, such as a warning letter together with a "satisfactory" performance review - Provide the employee with reasonable among of time to improve performance - Be prepared to provide employees with support to facilitate improvement
Sexual Harassment
Offensive or humiliating behaviour that is related to a person's sex, as well as behaviour of a sexual nature that creates an intimidating, unwelcome, hostile, or offensive work environment or that could reasonably be thought to put sexual conditions on a person's job or employment opportunities - Sexual coercion - Sexual annoyance
Internal Environmental Influences
Organizational Culture - Core values, beliefs, and assumptions that are widely shared by members of an organization - Often conveyed through an organization's mission statement Organizational Climate - Prevailing atmosphere that exists and impacts employees - Friendly or unfriendly, open or secretive, rigid or flexible, innovative or stagnant - Influenced by leadership, HR policies, organization communication Empowerment - Providing workers with the skills and authority to make decisions that would traditionally be made by managers
Pay for Knowledge
Pay for knowledge program should include: - Competencies and skills - New and different competencies - On-the-job training
Performance Management Process
Performance Management Process 1. Defining performance expectations 2. Providing ongoing feedback and coaching 3. Conducting performance appraisal and evaluation discussions 4. Determining performance rewards/consequences such as promotions, salary, increases and bonuses 5. Conducting development and career opportunities discussions
Incentives for Operations Employees - Piecework Plans
Piecework - A system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day Straight Piecework Plan - A set payment for each piece produced or processed in a factory or shop Guaranteed Piecework Plan - The minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour
Job Design
Process of systematically organizing work into tasks required to perform a job
Career Planning and Development
Process through which an employee becomes aware of personal career-related attributes and the lifelong series of activities that contribute to his or her career fulfillment
Organization Wide Incentive Plans
Profit Sharing Plans - A plan whereby most or all employees share in the companies profits Employee Share Purchase/Stock Ownership Plan - A trust is established to hold shares of company stock purchased for or issued to employees - The trust distributes the stock to employees on retirement, separation from service, or as otherwise prescribed by the plan Scanlon Plan - An incentive plan developed in 1937 by Joseph Scanlon and designed to encourage cooperation, involvement, and sharing of benefits Gainsharing Plan - An incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains
Brief History of HRM
Scientific Management - Process of "scientifically" analyzing manufacturing processes to reduce costs and compensating employees based on their performance levels Human Relations Movement - Belief that the attitudes and feelings of workers are important and deserve more attention (concern for people) Human Resources Movement - Focus on concern for people and productivity
Establishing Pay Rates
Stage 1: Job evaluation - Job evaluation - Benchmark job - Compensable factor Stage 2: Conduct a wage/salary survey - Wage/Salary Survey Stage 3: Combine job evaluation and salary survey information to determine pay for jobs - Wage curve - Pay ranges - Broadbanding - Red Circle Pay Rate
Steps in HRP
Step 1: Forecasting future HR needs (demand) Step 2: Forecasting availability of internal and external candidates (supply) Step 3: Planning and implementing HR programs to balance supply and demand
Steps in Job Analysis
Step 1: Identify what the information will be used for Step 2:Review relevant background information Step 3: Select representative positions/jobs to be analyzed Step 4: Analyze the jobs Step 5: Review analysis with incumbent/supervisor Step 6: Develop job description/job specification
Steps in the Selection Process
Step 1: Preliminary Applicant Screening Step 2: Selection Testing Step 3: The Selection Interview Step 4: Background Investigation/Reference Checking Step 5: Supervisory Interview and Realistic Job Preview Step 6: Hiring Decision and Candidate Notification
The Training Process
Step 1: Training Needs Analysis - Determine what training is required Step 2: Instructional Design - Prepare curriculum - Ensure training materials support learning objectives Step 3: Validation - An often-overlooked step in the training process Step 4: Implementation - Once the program has been validated, it is ready to be implemented by professional trainers Step 5: Evaluation of Training - Reaction - Learning - Behaviour - Results
Employment Equity Program Implementation Steps
Step 6: Monitoring, Evaluation, Revising Step 5: Implementation Step 4: Plan Development Step 3: Employment Systems Review Step 2: Data Collection and Analysis Step 1: Senior Management Commitment and Support
The Importance of Environmental Scanning
The external environmental factors most frequently monitored include: - Economic conditions - Market and competitive trends - New or revised laws - Social concerns related to health care, childcare, and educational priorities - Technological changes - Demographic trends
Recruitment
The process of searching out and attracting qualified job applicants, which begins with the identification of a position that requires staffing and is completed when resumes and/or completed application forms are received from an adequate number of applicants
Strategic Importance of Recruitment
The quality of an organization's human resources begins with a strategic perspective in management of recruitment
Burnout
The total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal Avoiding Burnout: - Break patterns - Get away from it all periodically - Reassess goals - Think about work - Reduce stress
HRM Responsibilities: Operational
These services include: - Analyzing jobs - Planning future workforce requirements - Selecting employees - Orienting and training employees - Managing compensation and reward plans - Communicating with employees (including counselling and disciplining)
What causes accidents?
Three basic causes of accidents - Chance occurrences (beyond control) - Unsafe conditions - Unsafe actions (by employees)
AIDA Principles
To achieve optimum results from an advertisement, the following four-point guide, called AIDA, should be kept in mind as the ad is being constructed: The ad should - Attract attention - Develop interest - Create a desire - Instigate action
Forecasting the Supply of External (Outside) Candidates
To project supply of outside candidates, employers assess: - General economic conditions - National labour market conditions - Local labour market conditions - Occupational market conditions
Harassment Policies
To reduce liability, employers should: - Establish sound harassment policies - Communicate such policies policies to all employees - Enforce policies in a fair and consistent manner - Take an active role in maintaining a working environment that is free of harassment
Strategic Importance of Total Rewards
Total Rewards - An integrated package of all rewards (monetary and non-monetray, extrinsic and intrinsic) gained by employees arising from their employment - Aligned with business strategy
Harassment
Unwelcome behaviour that demeans, humiliates, or embarrasses a person and that a reasonable person should have known would be unwelcome
Insubordination
Wilful disregard or disobedience of the boss's authority or legitimate orders