CH-1-4 The Strategic Role Of Human Resources Management – Management of Human Resources: The Essentials : Chapter Notes

This Document Contains Chapters 1 to 4 PART ONE: HUMAN RESOURCES MANAGEMENT IN PERSPECTIVE CHAPTER 1 THE STRATEGIC ROLE OF HUMAN RESOURCES MANAGEMENT LEARNING OUTCOMES DEFINE human resources management and ANALYZE the strategic significance of human resources management. DESCRIBE the four phases in the evolution of HRM, and EXPLAIN how HRM has changed over recent years to include a higher-level advisory role. EXPLAIN how HRM has taken on the characteristics of a profession. DISCUSS the internal and external environmental factors affecting human resources management policies and practices and EXPLAIN their impact. REQUIRED PROFESSIONAL CAPABILITIES Monitors expenditures and timelines Provides support and expertise to managers and supervisors with respect to managing people Stays current with professional knowledge Fosters and promotes advancement of the profession Understands and adheres to the Canadian Council of Human Resources Association’s code of ethics and applicable provincial/territorial associations’ codes Keeps current with emerging HR trends Advises on the status of dependent and independent contractors and determinants of employee status Contributes to improvements in the organization’s structures and work processes Gathers, analyzes, and reports relevant business and industry information (including global trends) to influence the development of strategic business HR plans CHAPTER SUMMARY This chapter focuses on the strategic role of HRM and HR professionals in today’s business context. Strategic HRM links the management of people to strategic goals and objectives to improve business performance. Two major stages in the historical evolution of management thinking that led to strategic HRM, scientific management and the human resources movement are discussed. Seven specific roles of HR professionals illustrate the new partnership between HRM and organizational managers and executives. Two specific areas of HR activity, operational and strategic, show how HRM has gone beyond its traditional administrative role. The chapter concludes with a look at numerous professional designations that help to ensure that HR professionals understand and can deal with the large number of external factors that impact HRM, including economic factors, labour market issues, technology, government, globalization, and environmental concerns. LECTURE OUTLINE The Strategic Role of Human Resources Management Just as organizations require financial capital to operate successfully, they must also acquire, grow and effectively use the human capital of workers (knowledge, education, training, skills, and expertise). HRM involves formulating and implementing HR systems (e.g. recruitment, performance appraisal, and compensation) that are aligned with organizational strategy (see Figure 1.1, p. 2). This ensures that necessary competencies and behaviours will be available to meet strategic goals. Research has shown that strategically aligned systems of HR practices are related to better organizational performance and competitive advantage. The resource based view of the firm suggests that HR practices contribute to the development of embedded knowledge of a firm’s culture, history, processes, and context, which are non-imitable (hard to copy by competitors). Three specific HR practices (profit sharing, results-oriented performance appraisal, and employment security) are strongly related to accounting measures of firm performance, such as return on assets and return on equity. A more extensive set of practices, known collectively as high-performance HR practices, have a positive relationship with turnover, productivity, and corporate financial performance (gross rate of return on capital). Teaching Tip: This is a critical section for getting buy-in from students in quantitative disciplines/fields (e.g. economics, finance, accounting, and engineering) who may see HR more trivial and less important than their other courses. Have students guess how much of a difference effective HR makes, then share the statistics and graphs from empirical research. The citations for footnoted studies are found in the Notes section of the text (beginning on page 492). If using this text for an MBA class you can assign one or more articles as class preparation. A Brief History of HRM While many students and employees still perceive HRM to be a clerical department, HRM has changed dramatically over the past 100 years, taking on an increasingly strategic role. This has changed the demands on, and expectations of those working in the HR department. Today’s strategic view of HRM evolved through three major stages. Scientific Management: Concern for Production (late 1800s – early 1900s) During this period, led by Frederick W. Taylor, operational productivity was the main objective and HRM practices such as simplified tasks and performance-base pay supported this focus. However, the dictatorial approach ignored the feelings and possible contributions of workers, which resulted in the subsequent development of the more comprehensive Human Resources Movement. The Human Resources Movement: Concern for People and Productivity (early 1900s – today) In Phase 1 (early 1900s) HRM, known as “personnel” was primarily responsible for hiring, firing, payroll and benefits. In Phase 2 (1920s – 1950s), HRM took on additional roles and responsibilities, such as labour relations, legal compliance, and human relations (orientation, performance appraisal, and employee relations). In Phase 3 (1960s – 1980s) the role of personnel departments expanded dramatically as workplace legislation expanded, covering areas such as human rights, wages and benefits, working conditions, health and safety. Also during Phase 3 technological advances stimulated outsourcing of many traditional HR activities (employee counselling, payroll, pension and benefits administration, recruitment, management development, and training) to external vendors. References to “Personnel” gave way to “Human Resources Management”, representing a shift in emphasis from maintenance and administration to corporate contribution, proactive management, and initiation of change. In Phase 4 (current phase) the role of HR departments is focused on helping the organization achieve its strategic objectives in partnership with line managers. The HR responsibilities of non-HR roles have become more explicit (see Figure 1.2, p. 4); HR professionals now operate in more of an in-house consultant/subject matter expert. As the field has changed over time, the expectations of an HR Professional have also changed over time. According to a 2011 study, five critical pieces of knowledge for today’s HR professionals are business acumen, employment law and legislation, talent management, broad HR knowledge, and employee labour-relations knowledge. These areas of knowledge are reflected in the seven new roles associated with HR competency (see Figure 1.3, p. 5). The focus of much of today’s HR activity is on fostering employee engagement, acting as a change agent, and engaging in environmental scanning to identify external opportunities and threats and assess these against the organization’s strengths and weaknesses as a key partner in strategy formulation. This is in sharp contrast to earlier days when organizational strategy was formulated without HR input. Measuring the Value of HR: Metrics A key difference between the traditional and current role of HR professionals is the requirement to be able to measure the value and impact of the organization’s human capital and HRM practices. Metrics (statistics) that HR professionals need to understand and use cover both quantity (e.g. # of candidates interviewed for a vacancy) and quality (e.g. # of first choice candidates accepting an offer to hire). HR measures are also an important part of the balanced scorecard system of organizational outcomes that contains measures of financial, customer and operations performance. Teaching Tip: Avoid using the word “history” as this tends to make most students immediately tune out. Make students aware of outdated perceptions of those who work in HR by having them describe a day in the life of an HR person as preparation for class, or as a short in-class exercise. Have students look up HR job postings on www.monster.ca or www.workopolis.com. Growing Professionalism in HRM Every profession (e.g. doctors, lawyers, engineers) shares several characteristics (common body of knowledge, benchmarked performance standards, representative professional association, external perception as profession, code of ethics, on-going skill development maintenance and socially responsible use of professional competence. In Canada, HR practitioners are increasingly professionals, both in performance and qualifications. Although operating locally, provincial HR associations are tied into a global network of HR associations through their affiliation with the Canadian Council of Human Resources Associations, which in turn is affiliated with the World Federation of People Management Associations. Public sector and quasi-public sector HR professionals have their own Canadian chapter of the International Personnel Management Association. HR professionals can also belong to a number of other Canadian and international associations. Broad and specialized certification requirements, managed and administered by provincial associations, leads to professional designations that signal validation of professional Teaching Tip: Have students explore HR association websites and compare them to websites for other professions. Assign students to read one or more portions of the Canadian HR reporter and bring recent cases, issues, articles to class or submit as a reflection exercise. Environmental Influences on HRM As mentioned in the preceding section, the new role of HR professionals involves environmental scanning, looking outside the organization in addition to the more traditional internal focus. This is because HR professionals need to understand both external and internal environmental influences that could impact on strategy formulation and/or implementation. These influences can help organizations to attract and retain highly qualified workers or make it extremely challenging to ensure that the available human capital can successfully contribute to organizational performance and sustain competitive advantage. External Environmental Influences are outside the direct control of the organization. i. Economic Conditions (unemployment, productivity, primary/secondary/tertiary sector growth/decline) affect demand for products and services, therefore demand and supply of workers. ii. Labour Market Issues (workforce diversity, generational differences (Table 1.2, p. 13), and growth in non-standard/contingent work) affect not only the characteristics of workers but also change traditional employment patterns and relationships. Traditionalist, Baby Boomers, Generation X and Generation Y workers are working with and for each other, and increasingly workers are not traditional employees of the organization, but are working on a contingent/non-standard basis. Technology can enable workers to work almost anywhere and provide tools for management of a dispersed workforce. Technological changes however have brought increased concerns about employee privacy and the line between work and personal time. Government laws affecting the workplace continue to proliferate and are not standard across Canada. Companies with employees in multiple jurisdictions need to have a good grasp of the complexity of the legal landscape. Globalization has brought an increase in business conducted outside of the home country, increasing the need to manage human resources in many different countries. In addition to legal differences there are also societal and cultural differences that have to be accommodated in HR practice. Environmental Concerns have led to sustainability being a key means of retaining human capital as a growing number of workers want to work for a socially responsible organization. Teaching Tip: One way to tackle this material is to have students first identify how each of these influences would affect the organization, then dig down to identify the specific impact on HRM. b. Internal Environmental Influences are within the control of the organization Organizational Culture, defined as core, widely shared values, beliefs, assumptions, serves a number of purposes (communication, direction and norms, attitudes, identify, orderliness, consistency, loyalty and commitment). HR is involved in sharing stories, myths, symbols and creating ceremonies and rituals that reinforce the desired culture. Organizational Climate (prevailing atmosphere) should, but does not always, work in harmony with the organizational culture. Management’s leadership style, HR policies and practices and organizational communication send more obvious signals about whether the organization is friendly/unfriendly, open/secretive, rigid/flexible, innovative/stagnant. Management Practices such as flatter organizational structures, cross-functional teams and improved communication have led to increased employee empowerment. Teaching Tip: One way to address the often difficult concept of organizational culture is to have students explore what some of the shared values in the particular class are. DISCUSSION BOXES STRATEGIC HR: The HR Role Continues to Evolve (p. 8) Five major changes will drive continued change in the HRM department and profession well into the 2020s. These five are: changing technology that has refocused the role of HR professionals on strategic activities; new rules for financial accountability and legislative compliance, more focus on succession planning for CEOs and other executive positions, selective development of top talent, and C-suite participation by HR leaders. Teaching Tip: Get students to discuss the reaction of other executives to having HR as part of the top management team. Consider assigning the article “Why We Hate HR” (Hammond, Fast Company, 2007), because leaders of other functional areas of business may also be unaware of changes in HRM and the increasing certification of HR professionals. ETHICAL DILEMMAS Can or should an employee real information that was disclosed in confidence about a troubled co-worker, and if so, under what circumstances? (p.12) Troubled can mean many things and the response to this question revolves around what is meant by the term troubled. If the employee had confided to another employee about a personal matter that he or she is dealing with and can resolve, then it would be appropriate for the employee to maintain this information in confidence. If however, troubled refers to a situation that may cause hard to the employee or to others, the person who has received such information would have an ethical obligation to real that information in order to get assistance for the person in order to prevent him or her from harming himself or herself. In the case of a situation where the trouble of the individual has the potential to cause harm to others, the employer has the obligation to act so that the workplace remains, safe, healthy and free from harassment for all employees. In order to ensure that this is the case, the employee should reveal information disclosed in confidence in order to prevent harm to others The maintenance department supervisor has just come to you, the HR manager, voicing concern about the safety of two of her reporting employees whom she recently discovered are functionally illiterate. What are your responsibilities to these employees, if any? (p. 15) Functional illiteracy means that someone cannot read, write, calculate, or solve problems at a level required for independent functioning or the performance of routine technical tasks. This means that the supervisor must keep in mind, at all times, the fact that these employees may not be able to read hazard warnings, operating instructions, etc., putting themselves and possibly other workers in danger. You cannot assume that they will act in unsafe ways, but the firm has a legal obligation to take every possible precaution to protect the health and safety of all of its employees. This might mean providing verbal instructions, using graphical signs and symbols, and/or supervising them more closely. Firing these employees or moving them to a lower-risk job (without consultation) increases the risk of a lawsuit or a union grievance (if unionized workplace). To ensure that all future workers meet functional literacy standards recruitment and selection processes should be reviewed and modified. In the process, caution must be exercised to ensure that there is no violation of their privacy rights, and that the dignity and respect of these individuals are not undermined. If the functional illiteracy of one or both of these individuals is associated with a learning disability, human rights protection may also come into play. Firms have a legal obligation to accommodate individuals with a disability (physical or mental) to the point of undue hardship. While not required to do so, the firm’s code of ethics may suggest that this matter be addressed in a more comprehensive way and thus choose to offer an on-site literacy program, If the company has not checked for functional literacy as part of its selection processes, there may be other workers who are also functionally illiterate. Although such programs are aimed at refreshing and improving basic reading, writing, math, and problem-solving skills, they also improve listening, oral communication, teamwork, leadership, and computer skills, among other things. KEY TERMS balanced scorecard A measurement system that translates an organization's strategy into a comprehensive set of performance measures. (p. 9) certification Recognition for having met certain professional standards. (p. 11) change agents Specialists who lead the organization and its employees through organizational change. (p. 7) contingent/nonstandard workers Workers who do not have regular full-time employment status. (p. 15) employee engagement The emotional and intellectual involvement of employees in their work, such as intensity, focus, and involvement in his or her job and organization. (p. 6) empowerment Providing workers with the skills and authority to make decisions that would traditionally be made by managers. (p. 19) environmental scanning Identifying and analyzing external opportunities and threats that may be crucial to the organization’s success. (p. 7) Generation X Individuals born between 1965 and 1980. (p. 15) Generation Y Individuals born since 1980. (p. 15) globalization The emergence of a single global market for most products and services. (p. 17) human capital The knowledge, education, training, skills, and expertise of a firm's workforce. (p. 2) human resources management (HRM) The management of people in organizations to drive successful organizational performance and achievement of the organization’s strategic goals. (p. 2) human resources movement A management philosophy focusing on concern for people and productivity. (p. 3) metrics Statistics used to measure activities and results. (p. 8) organizational climate The prevailing atmosphere that exists in an organization and its impact on employees. (p. 19) organizational culture The core values, beliefs, and assumptions that are widely shared by members of an organization. (p. 19) outsourcing The practice of contracting with outside vendors to handle specified business functions on a permanent basis. (p. 4) primary sector Jobs in agriculture, fishing and trapping, forestry, and mining. (p. 13) productivity The ratio of an organization's outputs (goods and services) to its inputs (people, capital, energy, and materials) (p. 113 scientific management The process of “scientifically” analyzing manufacturing processes, reducing production costs, and compensating employees based on their performance levels. (p. 3) secondary sector Jobs in manufacturing and construction. (p. 13) social responsibility The implied, enforced or felt obligation of managers, acting in their official capacities, to serve or protect the interests of groups other than themselves. (p. 12) strategy The company’s plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. (p. 7) tertiary or service sector Job in public administration, personal and business services, finance, trade, public utilities, and transportation/ communications. (p. 13) Traditionalists Individualists born between 1946 and 1964 (p. 15) CHAPTER 2 THE CHANGING LEGAL EMPHASIS: COMPLIANCE AND IMPACT ON CANADIAN WORKPLACES LEARNING OUTCOMES EXPLAIN how employment-related issues are governed in Canada. DISCUSS at least five prohibited grounds for discrimination under human rights legislation and DESCRIBE the requirements for reasonable accommodation. DESCRIBE behaviour that could constitute harassment and EXPLAIN the employers’ responsibilities regarding harassment. DESCRIBE the role of minimums established in employment standards legislation and the enforcement process. REQUIRED PROFESSIONAL CAPABILITIES Identifies and masters legislation and jurisprudence relevant to HR functions Ensures that the organization’s HR policies and practices align with human rights legislation Promotes a productive culture in the organization that values diversity, trust, and respect for individuals and their contributions Assesses requests for HR information in light of corporate policy, freedom of information legislation, evidentiary privileges, and contractual or other releases Contributes to the development of information security measures issues CHAPTER SUMMARY This chapter focuses on the legal environment in Canada. It discusses the multiple overlapping pieces of legislation that attempt to balance employee and employer rights when it comes to human rights and freedoms, employment equity, employment standards, and privacy. The chapter differentiates between organizations that are under federal jurisdiction versus provincial jurisdiction. It discusses the requirement to take steps to protect employees from harassment and discrimination, in order to reduce legal liability. Specific exceptions that allow discrimination on prohibited grounds, based on bona fide occupational requirements, are covered, but so is the requirement to offer reasonable accommodation. The chapter identifies the minimum terms and conditions contained in employment standards legislation and the complaint-based process for violations. Finally, in keeping with the continued growth of technology tools, the chapter discusses how the Personal Information Protection and Electronic Documents Act (PIPEDA) is used to oversee the collection, use, and disclosure of employees’ personal information. LECTURE OUTLINE The Legal Framework for Employment Law in Canada Both HR professionals and front line managers/supervisors need up-to-date knowledge of the multiple layers of employment legislation and regulation that affect Canadian workplaces in order to reduce legal liability and protect against expensive lawsuits. Figure 2.2 (p. 25) lists several key pieces of legislation that attempt to balance the rights of employers and employees including the Charter of Rights and Freedoms; human rights legislation; employment standards legislation; occupational health and safety laws; collective bargaining agreements; and employment contracts. The judicial system and special regulatory bodies, such as human rights commissions/tribunals, provide forums for resolving differences between employers and employees. Legislation Protecting the General Population Workplace practices are measured against general Canadian legislation that makes it illegal to discriminate, even unintentionally against members of various groups on prohibited grounds. The Charter of Rights and Freedoms – Far-reaching federal law, enacted in 1982, applies to the actions of all levels of government and to agencies under their jurisdiction. The Charter provides fundamental rights and freedoms to every Canadian, including the equality rights found in Section 15, that provide the basis for more specific human rights legislation. Human Rights Legislation – Prohibits intentional and unintentional discrimination on prohibited grounds in employment situations and the delivery of goods and services. Human rights legislation takes its cue from Section 15 of the Charter, but differs in that it applies to every person residing in Canada and is jurisdiction specific; i.e. legislation can vary from province to province/territory (see Figure 2.3, p. 29). Human rights legislation cannot be superseded by employment contracts. Discrimination Defined – Because discrimination nullifies or impairs human rights, both intentional (direct or indirect) and unintentional discrimination are illegal. Forms of intentional discrimination include differential or unequal treatment or discrimination because of association (friendship or other relationship with a member of a protected group). Unintentional/constructive discrimination, also known as systemic discrimination is often harder to detect as it is embedded in policies and practices that appear neutral Permissible Discrimination via Bona Fide Occupational Requirements– A bona fide occupational requirement (BFOR) is a justifiable reason for discrimination due to business necessity, especially a health and safety issue. Discrimination via a BFOR is permitted when reasonable accommodation through adjustment of employment policies or practices is not feasible. The three criteria for assessing the legality of a BFOR, as established by the Meiorin case (Supreme Court of Canada, 1999) are: The discriminatory policy/procedure was based on a legitimate, work-related purpose Decision makers/agents believed the requirement was necessary for the role It was impossible to accommodate employees who could not meet the requirement without undue hardship on the employer. Human Rights Case Examples - The three most common types of complaints heard by human rights commissions/tribunals relate to discrimination and/or failure to accommodate based on: Disability (roughly 50%) - see Figure 2.5(p. 33) for duty to accommodate disabilities Gender, including pregnancy and harassment (roughly 20%) - see Figure 2.6 (p. 35) for examples of harassment Race or ethnicity (roughly 15%) Other human rights cases have involved complaints in regards to religion, sexual orientation, age and family status. Sound anti-harassment policies (see p. 36) when communicated to all employees and enforced fairly and consistently, can help to create a harassment free workplace. Legislative systems in Canada allow for multiple opportunities for appeal; if HR and managers take a proactive approach to ensuring that all programs and policies are legally defensible, then the risk of becoming involved in lengthy and expensive human rights proceedings can be mitigated. Enforcement – Responsibility for enforcement of the human rights acts and providing a speedy and accessible mediation process for dispute resolution falls on the human rights commission/tribunal in each jurisdiction. These regulatory bodies are also responsible for bearing the costs of human rights complaints brought forward, to ensure financial resources are not an obstacle for potential complainants. Employers have a duty to investigate all claims of discrimination, starting with selection of a workplace investigator (see Figure 2.7, p. 38) Three other obligations of employers’ include showing awareness of discrimination/harassment issues prior to the complaint taking prompt action after the complaint is filed demonstrating reasonable resolution and communication in regards to the complaint. Two forms of remedies if discrimination is found by the commission/tribunal are systemic and restitutional (see Figure 2.8, p. 39). III. Employment Equity Legislation The Charter of Rights and Freedoms also permits proactive programs that go beyond human rights legislation, in order to remedy pervasive discrimination against four identifiable groups, and for whom the complaint-based reactive process was insufficient in changing patterns of discrimination over time. Employment equity programs are not affirmative action (quotas); their goal is to achieve a balanced representation of designated group members in the organization at all levels. The Plight of the Four Designated Groups Women – issues include occupational segregation, glass ceiling (see Figure 2.8, p. 45) and equal pay for equal work Aboriginals – concentrated in low-skill, low paid jobs; unemployment rate is significantly higher and income significantly lower than non-Aboriginals People with Disabilities – employment opportunities are lower than non-disabled and employment income lags that of non-disabled Visible minorities – not to be confused with immigrant; visible minorities are defined as all non-Caucasian/non-white persons, other than Aboriginals. Key issue is underemployment relative to their knowledge, skills, and abilities. Employment/Labour Standards Legislation Employment (labour) standards legislation covers all employers and most employees in Canada, both unionized and non-unionized. Employment standards acts set minimum terms and conditions, which can be exceeded by employers, but which cannot be waived by employers or employees. In the case of an employment contract/collective bargaining agreement that exceeds the ESA, the principle of greater benefit will apply i.e. employers cannot revert back to the ESA. Enforcement - Complaints of violation of the ESA by employees against employers must be submitted to the Ministry of Labour within pre-set time limits; fines and restitution up to maximum limits. Employees cannot sue in civil court if they file a claim with the Ministry. Teaching Tip: Students often find the multiple jurisdictions in Canada involved in HR to be quite confusing, it is often helpful if they know of differing regulations in different provinces regarding other aspects of life, such as drinking age as an analogy. Respecting Employee Privacy The Privacy Commissioner of Canada and the provincial Information and Privacy Commissioners seek to balance employees’ rights to privacy with employers’ rights to monitor employee activity and protect company resources. New legislation and guidelines continue to clarify what is and isn’t acceptable. The Personal Information Protection and Electronic Documents Act (PIPEDA) – governs collection, use, and disclosure of personal information. Employees must give consent for collection, use and dissemination of personal information. Video Surveillance – Companies must be able to show that reasonable alternatives to surveillance were not available. Teaching Tips; Break up the material and shift to active learning by incorporating mini discussions based on a combination of the Discussion Boxes, Ethical Dilemmas, and Critical Thinking Questions for this chapter and using provincial human rights websites to look at current trends and cases. Ask students to bring in/share related news stories and/or experiences. Many students know someone who has experienced discrimination, despite legislation. DISCUSSION BOXES GLOBAL HRM: U.K. Court Awards $1.7 Million to Bullied Employee (p. 34) A woman who was subjected to bullying at work which the organization’s managers ignored and which caused her much personal distress was awarded the equivalent of over a million dollars in damages by a British court. Once again the courts held the employer liable for the actions of its employees against other employees. This case added to the precedent that verbal abuse and ostracism are workplace harassment. ETHICAL DILEMMAS Your company president tells you not to hire any gay or lesbian employees to work as part of his office staff because it would make him uncomfortable. What would you do? (p. 37) What you cannot do is follow this order because it is illegal to discriminate on the basis of sexual orientation. You need to educate the President on the law and the potential consequences of violating the law. Depending on your position you can address the President directly or obtain assistance from senior HR people. Is it ethical to use video surveillance of employees? Do you think employees need to be told of surveillance tools if they are used? (p. 44) It is ethical if it is a business necessity and there is no other reasonable means available; such is the case with casinos. However, Canadian courts have typically decided that video surveillance is not reasonable in most workplaces and that other means of control could have been used. Employees must be made aware of how they are being monitored, and must give consent if there is any possibility that personal and private information might be collected as a result of monitoring. KEY TERMS Charter of Rights and Freedoms Federal law enacted in 1982 that guarantees fundamental freedoms to all Canadians. (p. 27) differential or unequal treatment Treating an individual differently in any aspect of terms and conditions of employment based on any of the prohibited grounds. (p. 28) discrimination As used in the context of human rights in employment, a distinction, exclusion, or preference, based on one of the prohibited grounds, that has the effect of nullifying or impairing the right of a person to full and equal recognition and exercise of his or her human rights and freedoms. (p. 28) discrimination because of association Denial of rights because of friendship or other relationship with a protected group member. (p. 29) employment equity program A detailed plan designed to identify and correct existing discrimination, redress past discrimination, and achieve a balanced representation of designated group members in the organization. (p. 40) employment (labour) standards legislation Laws present in every Canadian jurisdiction that establishes minimum employee entitlements and a limit on the maximum number of hours of work permitted per day and/or per week. (p.42) equal pay for equal work An employer cannot pay male and female employees differently if they are performing the same or substantially similar work. (p. 41) equality rights Section 15 of the Charter of Rights and Freedoms, which guarantees the right to equal protection and equal benefit of the law without discrimination. (p. 27) glass ceiling An invisible barrier, caused by attitudinal or organizational bias, which limits the advancement opportunities of qualified designated group members. (p. 40) harassment Unwelcome behaviour that demeans, humiliates, or embarrasses a person, and which a reasonable person should have known would be unwelcome. (p. 34) human rights legislation Jurisdictions’ specific legislation that prohibits intentional and unintentional discrimination in employment situations and in the delivery of goods and services (p. 28) KSAs Knowledge, skills, and abilities. (p.42) occupational segregation The existence of certain occupations that have traditionally been male-dominated and others that have been female-dominated. (p. 40) reasonable accommodation The adjustment of employment policies and practices that an employer may be expected to make so that no individual is denied benefits, disadvantaged in employment, or prevented from carrying out the essential components of a job because of grounds prohibited in human rights legislation. (p. 31) regulations Legally binding rules established by the special regulatory bodies created to enforce compliance with the law and aid in its interpretation. (p. 26) restitutional remedies Monetary compensation for the complainant to put him or her back to the position he or she would be in if the discrimination had not occurred (this includes compensation for injury to dignity and self-respect), and may include an apology letter. (p.39) sexual annoyance Sexually-related conduct that is hostile, intimidating, or offensive to the employee, but has no direct link to tangible job benefits or loss thereof. (p. 36) sexual coercion Harassment of a sexual nature that results in some direct consequence to the worker's employment status or some gain in or loss of tangible job benefits. (p. 35) 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. (p. 35) systemic remedies Forward looking solutions to discrimination that require respondents to take positive steps to ensure compliance with legislation, both in respect to the current complaint and any future practices. (p. 39) underemployment Being employed in a job that does not fully utilize one’s knowledge, skills, and abilities (KSAs). (p. 42) undue hardship The point to which employers are expected to accommodate under human rights legislative requirements. (p. 31) unintentional/constructive/systemic discrimination Discrimination that is embedded in policies and practices that appear neutral on the surface, and are implemented impartially, but have adverse impact on specific groups of people for reasons that are not job related or required for the safe and efficient operation of the business. (p. 30) PART TWO: MEETING HUMAN RESOURCES REQUIREMENTS CHAPTER 3 DESIGNING AND ANALYZING JOBS LEARNING OUTCOMES EXPLAIN the steps in job analysis and the difference between a job and a position. DESCRIBE the evolution of job design and how organizational structure influences job design. EXPLAIN the three reasons why competency-based job analysis has become more common. DESCRIBE and evaluate multiple methods of collecting job analysis information. EXPLAIN the difference between a job description and a job specification. REQUIRED PROFESSIONAL CAPABILITIES Provides the information necessary for the organization to effectively manage its people practices Identifies the data required to support HR planning CHAPTER SUMMARY Job analysis is the procedure for determining the tasks, duties, and responsibilities of each job, and the human attribute (in terms of knowledge, skills, and abilities) required to perform it. The process of organizing work into the tasks required to perform a specific job is known as job design. The specific collection of tasks and responsibilities held by just one person is known as a “position”. There are six steps involved in the job analysis process: collection of background information; selection of representative jobs/positions; data collection; data review, development of job descriptions and job specifications, communication and on-going review. Relevant information is obtained from incumbents, supervisors and other credible sources using one or more primary or secondary techniques. Competency-based job analysis, which focuses more on required behaviours rather than task requirements, has become more common for three reasons: flexible jobs; strategic HR focus, better support for performance management processes. LECTURE OUTLINE I. FUNDAMENTALS OF JOB ANALYSIS A job is a group of relations activities and duties held by a single employee or a number of incumbents, whereas a position the collection of tasks and responsibilities performed by one person. The procedure for determining the tasks, duties, and responsibilities of each job, and the human attributes (in terms of knowledge, skills, and abilities) required to perform it is known as job analysis. Job analysis is a fundamental component of HRM and a cornerstone that is critical to other organizational activities related to labour and work processes. 1. Seven Uses of Job Analysis Information The information gathered, evaluated and summarized through job analysis, results in job descriptions (what the jobs entails) and job specifications (human requirements), which, in turn, act as the basis for a number of inter-related HRM activities (see fig. 3.1 p. 49) Human Resource Planning – future staffing needs, external versus internal recruitment Recruitment and Selection – bona fide occupational requirements, legally compliant activities Compensation- job evaluation, relative value of jobs, pay differences, overtime and maximum hours pay Performance Management – legally defensible performance criteria, realistic and achievable performance standards Labour Relations – union approval, job classification, collective bargaining, negotiation of changes to job descriptions Training, Development, and Career Management – identification of current and future KSA gaps Restructuring – identification of unnecessary requirements, areas of conflict/dissatisfaction, health and safety concerns 2. Six Steps in Job Analysis A disciplined process aids in ensuring higher rather than lower quality job descriptions and job specifications, whether jobs are being analysed on a continuous basis or on an ad hoc (as needed) basis. In order, the six steps are: Relevant organization information is reviewed. Jobs are selected to be analysed. Using one or more job analysis techniques, data are collection on job activities. The information collection is then verified and modified, if required. Job descriptions and job specifications are developed based on the verified information. The information is then communication and updated on an as-needed basis STEP 1: REVIEW RELEVANT BACKGROUND INFORMATION Step 1 includes the review of relevant background information, such as organization charts, process charts, and existing job descriptions. Organization charts (see Fig. 3.2, p. 52) reflect an organization’s structure (the formal relationship among jobs in an organization), by showing how jobs are grouped into departments and/or divisions. Structure reflects choices as to managerial span of control, narrow versus broad employee responsibility, and centralized versus decentralized decision-making. An organization’s structure should fit its strategic goals; three possible structures are bureaucratic, flat, and matrix (see Figure 3.3, p. 53). While the tendency is often to focus immediately on the micro-level details of the job, a strategic HR approach requires that job analysts understand where the job fits in the larger organization, and how the structure and distribution of work can provide strategic advantage over competitors, facilitate achievement of strategic goals in an efficient and effective manner, and produce a motivated and engaged workforce. In contrast to the macro-level review, process charts show the flow of inputs to and outputs from the job under study (see Fig. 4.4, p. 93), and help to identify interdependencies between jobs and between jobs and external organizations. STEP 2: SELECT JOBS TO BE ANALYZED The next step involves the selection of representative positions and/or jobs to be analyzed. Analyzing representative jobs avoids the need to analyze every single position and job. At the same time jobs are chosen for analysis, job design also becomes a consideration. Job design is the process of systematically organizing work into tasks that are required to perform a specific job. Effective job design reflects fit with an organization’s strategy and structure, and takes into account human and technological factors. Over time the notion of a “job” as a set of well-defined and clearly delineated responsibilities has been eroded by a set of external challenges that require firms to be more responsive, flexible and competitive. 1. The Evolution of Jobs and Job Design The notion of “job” arose out of the efficiency demands of the Industrial Revolution, scientific management and industrial engineering, in which job design was tightly focused on work simplification. However, by the mid-1900s the “dehumanizing aspects of highly repetitive and specialized jobs led to a shift to a broadening of the activities employees engaged in. Three specific methods for redesigning jobs are job enlargement (horizontal loading), job rotation, and job enrichment (vertical loading); although not every employee wants additional responsibilities and challenges. By the late twentieth century, job designers also consider physiological and health and safety issues in addition to psychological needs. The field of ergonomics aims to adapt the entire job system – work, environment, machines, equipment, and processes – to match human characteristics. 2. Competency-Based Job Analysis In high-performance work environments, employers need workers to seamlessly move from job to job and exercise self-control, rather than be closely supervised. In order to enable more flexible behaviour, employers are shifting toward newer approaches for describing jobs, such as competency-based analysis. Competency-based job analysis means describing the job in terms of the measurable, observable, behavioural competencies (knowledge, skills, or behaviours) that an employee must exhibit in order to do the job well. Three reasons to use competency analysis are: Traditional job descriptions with lists of specific duties breed an “it’s not my job attitude” rather than learning and self-motivation Competencies provide a tighter linkage to the organization’s strategy Performance management processes are more transparent; competencies clearly identify the basis for training, performance appraisal, and rewards. Examples of competencies When describing jobs from a competency perspective, managers often cluster specific competencies into clusters (e.g. general or core competencies; leadership competencies; and technical/task/functional competencies).General competencies include reading, writing, mathematical reasoning, whereas leadership competencies focus on strategic thinking and teaching others. While general and leadership competencies may appear across many different jobs, technical/task/functional competencies are more specific to a particular type of job or occupation e.g. engineer, accountant, produce manager. Comparing traditional versus competency-based job analysis Competency-based duties and responsibilities are already appearing in otherwise traditional job descriptions (e.g. conducts marketing surveys on current and new-product concepts). However, more specific duties and responsibilities resist being written from a competency perspective because they are not as readily observable or measurable e.g. oversees (e.g. oversees copywriting, design, layout, and production). For this reason, job descriptions will probably continue to reflect a combination of the competency-based and traditional approaches. 3. Team-Based Job Designs A logical outgrowth of job enrichment has been the increasing use of team-based job designs, in flat and matrix structure organizations. Teams are responsible for a whole and meaningful piece of work. Team members are empowered to decide how to accomplish the work and are crosstrained to facilitate job rotation. Team-based job designs can break down barriers of time and space, through the formation of virtual teams composed of members in different locations who collaborate through technology. II. IV: STEP 3: COLLECTING JOB ANALYSIS INFORMATION Various qualitative and quantitative techniques are used to collect information about the duties, responsibilities, and requirements of the job; several techniques are often used in combination. Collecting data involves a joint effort by an HR specialist (an HR manger, job analyst, or consultant), the incumbent (someone who currently works in this job), and the job-holder’s supervisor. After the data is collected, the HR specialist develops the job description and job specification, which is then reviewed by the supervisor and incumbent. 1. The Interview Interviewing incumbents, supervisors and other subject matter experts is the most widely used method of determining duties and responsibilities of a job. The three types of job analysis interviews are individual, group, and supervisory. Interview Guidelines Identify knowledgeable and objective employees Build rapport with chosen individuals Use a structured guide/checklist Rank activities in terms of importance and frequency of occurrence Have the interviewee and immediate supervisor review the data 2. Questionnaire There are two major questions around the use of questionnaires; first, how structured should they be (see Table 3.1 p 61) and what questions to ask, and second, who should complete the questionnaire. Two popular pre-developed structured job analysis questionnaires are the Position Analysis Questionnaire (PAQ) and the Functional Job Analysis (FJA) questionnaire. The PAQ contains 194 items) and provides a quantitative score and profile of how the job rates on six basic dimensions (information input, mental processes, work output, relationships with others, job context, and other job characteristics). The PAQ is often used for classifying jobs in order to compare jobs and determine appropriate pay levels. The FJA is not quite as complex; the items rate a job on responsibilities for data, people and things on a scale from simple to complex. The FJS facilitates development of performance standards and also training requirements. 3. Observations Observation means watching employees perform their work and recording the frequency of behaviours or the nature of performance. It can be done in an unstructured or structured format. Observation is particularly beneficial when jobs consist mainly of observable physical activities, less useful for jobs with substantial mental activity. However, observation can influence/change physical behaviour so data needs to be validated through another method (e.g. interview) 4. Participant Diary/Log Employees can be asked to keep a diary/log, which are daily listings of every activity in which they engage along with the time each activity takes. Diaries/logs provide rich detail and keeping track of time helps to prevent exaggeration/inflation of tasks. 5. The National Occupational Classification For standardized jobs, HR specialists and managers/supervisors can turn to the National Occupational Classification (NOC), which is a reference tool produced from systematic fieldbased research by Human Resource and Skills Development Canada. The NOC facilitates the writing of job descriptions and specifications because it contains comprehensive standardized descriptions of about 40 000 occupations and the requirements for each (see Fig. 3.5, p. 63). An occupation is a collection of jobs that share some or all of a set of main duties; jobs may have different titles but similar content. Occupations are classified into Major, Minor, and Unit Groups. Major groups (2 digit identifier) are the broadest classification. Minor groups (3 digit identifier) subdivide the main classification, and Unit Groups subdivide the minor group classification, proving the most specific profile of an actual occupation. Example: Health Occupations (31), Physicians, Dentists, and Veterinarians (311), Dentists (3113) Companies who use the NOC should be prepared to: Adjust information based on their organizational strategy and structure Update information as required Verify the information (see Step 4 in the text and Lecture Outline) 6. Using Multiple Sources of Job Analysis Information Each source (incumbent, supervisor, subject matter expert) and each method/approach (interview, questionnaire, observation, diary/log, NOC) has its drawbacks. Therefore, a prudent approach is to collect data from several sources and possibly using more than one method. Teaching Tip: Ethical Dilemma, p. 64 is a good fit for probing into the pros and cons of multiple sources in terms of perceived competence, reactions from original respondent, use of technology in job analysis STEP 4: VERIFYING INFORMATION Errors and/or omissions can occur in the process of collecting job analysis data; verification with workers and supervisors can help to catch and rectify factual errors and ensure completeness. Later on, respondents may have recalled details that are not in the information they originally provided. Taking time for verification can increase both reliability and validity, and increases the chances that respondents will be truthful the first time round, knowing their answers will be verified. STEP 5: WRITING JOB DESCRIPTIONS AND JOB SPECIFICATIONS 1. Job Descriptions A job description is a list of the duties, responsibilities, reporting relationship, and working conditions of a job – one product of job analysis. The job description answers the questions about what the jobholder does, how they do it and under what conditions the job is performed. There isn’t agreement on a single standard format, but most job descriptions include the following types of information: Content of a job description: Job identification – job/position title, department, location, to whom the job reports Job summary – major functions and activities Relationships - internal and external linkages, includes subordinates if appropriate Duties and responsibilities – more detailed list of duties & responsibilities, avoid “cop-out” clauses such as “other duties as assigned” Authority – decision-making authority, direct supervision, budgetary limitations Performance standards/indicators – accuracy, timeliness, quantity, quality, time spent Working conditions and physical environment – noise level, temperature, lighting, degree of privacy, frequency of interruptions, hours of work, amount of travel, and job/workplace hazards Special note: Job descriptions and human rights legislation Job descriptions are not legally required but are highly advisable. Job descriptions distinguish between essential versus non-essential tasks. This distinction is important because discrimination and/or failure to provide reasonable accommodation, for reasons related to prohibited grounds, applies only to essential tasks. The process of preparing a job description provides an opportunity to assess whether there are any existing biases in terms of duties and responsibilities e.g. manual lifting when technology-aided lifting could work just as well 2. Job Specifications The job specification is the other major product of job analysis, and clarifies what type of person can fulfil the duties and responsibilities identified in the job description, in terms of required human traits and experience. Identifying human requirements can be accomplished through a judgemental approach (educated guesses by job incumbents, supervisors, and HR managers) or statistical analysis (quantitative relationship between some human trait or skill and some criterion of job effectiveness). The latter is more legally defensible, especially for traits such as personality. The Personality-Related Position Requirements Form (PPRF) identifies which of the basic personality dimensions (agreeableness, conscientiousness, emotional stability) relate to the job under study. Teaching Tip: Have students identify 2 or 3 occupations where a higher level of each personality trait would be desirable and conversely 2 or 3 occupations where a lower level of each trait would be ideal. To ensure compliance with human rights legislation, keep a few pointers in mind when preparing job specifications. All listed qualifications must be bona fide occupational requirements (BFORs) based on the current job duties and responsibilities. Unjustifiably high educational or lengthy experience requirements can lead to systemic discrimination. The qualifications of the current incumbent should not be confused with the minimum requirements, since s/he may be under-qualified or overqualified. Identifying the actual physical and mental demands is critical for entry-level jobs (e.g. finger dexterity). A physical demands analysis identifies senses used (e.g. smell, touch, taste, hearing, sight) and the type, frequency, and amount of physical effort (see Fig. 3.6, p. 69-70). Mental and emotional demands are often ignored, but should be included so that candidates can be tested on these characteristics (e.g. working in high-pressure environment) Teaching Tip: Discuss the trend towards “credentialization” (asking for more education than is really necessary for the job); Why is this is occurring and who is disadvantaged by this trend? a. Completing the job specification form Whether using a statistical analysis or a judgemental approach, a job specification form should be completed once the required human characteristics have been determined. b. Writing competency-based job descriptions The process for writing competency-based job descriptions and job specifications is similar to the traditional job analysis process STEP 6: COMMUNICATION AND PREPARATION FOR REVISIONS Information provided from the job analysis must be communicated to all relevant stakeholders (e.g. employees, line mangers, recruiters, and compensation specialists). However, job descriptions and job specifications need ongoing revision and communication, because significant organizational changes like restructuring, new product development, technological changes, and competition require modifications to the way work is done. Job analysis needs to be structured enough to allow for modifications as required while still providing current and future employees with an understanding of what they are expected to do. Three approaches to updating are: a) regularly update the data (proactive); b) develop systems to collect data on an ongoing basis; and c) adjust job analysis activities in a reactive manner after a significant organizational change is initiated. DISCUSSION BOXES ENTREPRENEURS & HR: A Practical approach to Job Analysis and Job Descriptions (p. 67) Small business owners need a streamlined approach to job analysis, because many lack an HR manager and don’t have access to a job analyst. The NOC can help to fill this gap if small businesses use the following process: develop an organization chart; use a short job analysis questionnaire to get basic information on each job; obtain a copy of the NOC and choose suitable (matching/related) job titles and job descriptions; use the information obtained internally to modify the standardized job description obtained from the NOC. ETHICAL DILEMMAS If a job analyst is on the other side of the world from an employee who completed a webbased job analysis questionnaire, should another method of job analysis also be used to confirm the accuracy of the information? (p.64) If the company is global it is likely that there are similar jobs in both the home country and elsewhere, so the job analyst will not be completely unfamiliar with the job being analyzed. However, because there might be employee bias in the questionnaire, it might be wise to use another method (e.g. interviews, diaries and logs, or group interviews) to verify the information. The analyst can also arrange for a similar job to be analyzed in their country to see if there are any material differences in how the job is designed in different countries. Technology can facilitate review and verification between employees and analysts who are in different countries. Teaching Tip: Have students identify ways to establish rapport and build trust between the job analyst, the employee and their supervisor, using technology (e.g. Skype). In view of the fact that job descriptions are not required by law, and that some organizations have found that they are no longer relevant, would abolishing job descriptions raise any moral or legal concerns? (p. 65) A key advantage of having job descriptions is that they help to clarify employer expectations – for both the supervisor and employee. Leaving employees in the dark about expectations that will be used in other HR practices is not illegal but might be viewed as immoral. Failure to have job descriptions could result in overlap in job duties and/or that some duties are not assigned to anyone. Having an accurate description of each job sometimes leads to the identification of unnecessary requirements, areas of conflict or dissatisfaction, and/or health and safety concerns that can be eliminated through job redesign. Such redesign may increase morale and productivity, and ensure compliance with human rights and occupational health and safety legislation. Job descriptions and specifications are also the basis for a legally-defensible compensation system and for effective training, development, and career management programs (p. 50). While job descriptions are not legally required, they are highly advisable. When assessing suitability for employment, training program enrolment, and transfers or promotions, and when appraising performance, the only criteria examined should be the KSAs required for the essential duties of the job. Having a job description also makes it easier to identify accommodation requirements, as required by human rights legislation. Some supervisors and/or small-business owners are reluctant to introduce job descriptions, fearing that employees will refuse to perform tasks that are not specifically listed therein. However, in addition to the issues identified above, another important reason for preparing such descriptions relates to the fact that in some firms without them, employees might be expected to perform tasks that are clearly not job related. Preventing such abuse is one of the reasons why a “copy-out clause” such as “other duties, as assigned” should be avoided when job descriptions are prepared. As explained in the text, while duties and responsibilities should be described in sufficient detail so that training requirements and performance appraisal criteria can be identified, and the qualifications outlined in the job specification can be justified, it is generally possible to make it clear that the incumbent may be asked to perform additional related duties, without resorting to such a “cop-out clause.” If not, including a statement such as: “The duties and responsibilities outlined above are representative, but not all-inclusive” may meet the firm’s need for flexibility without sacrificing the quality and usefulness of the job description. Are personality traits really part of the KSAs and bona fide occupational requirements/essential duties of a job? (p. 68) Yes, they can be because KSAs capture the qualifications required to perform the job duties and responsibilities. For instance, sales positions tend to require higher, rather than lower, levels of extraversion. The Personality-Related Position Requirements Form can be used to collect data to show the relationship between extraversion, sales behaviours and sales performance. Similarly in other occupations other personality traits, such as emotional stability, can be verified as being BFOR’s. KEY TERMS competencies Demonstrable characteristics of a person that enable performance on the job. (p. 57) competency-based job analysis Describing a job in terms of the measurable, observable behavioural competencies an employee must exhibit to do a job well. (p. 57) diary/log Daily listings made by employees of every activity in which they engage, along with the time each activity takes. (p. 62) ergonomics An interdisciplinary approach that seeks to integrate and accommodate the physical needs of workers into the design of jobs. It aims to adapt the entire job system – the work, environment, machines, equipment, and processes – to match human characteristics. (p. 56) Functional Job Analysis (FJA) A quantitative method for classifying jobs based on types and amounts of responsibility for data, people, and things. Performance standards and training requirements are also identified. (p. 61) industrial engineering A field of study concerned with analyzing work methods; making work cycles more efficient by modifying, combining, rearranging, or eliminating tasks; and establishing time standards. (p. 55) job A group of related activities and duties, held by a single employee or a number of incumbents. (p. 49) job analysis The procedure for determining the tasks, duties, and responsibilities of each job, and the human attributes (in terms of knowledge, skills, and abilities) required to perform it. (p. 49) job description A list of the duties, responsibilities, reporting relationships, and working conditions of a job – one product of job analysis. (p. 65) job design The process of systematically organizing work into tasks that are required to perform a specific job. (p. 54) job enlargement (horizontal loading) A technique to relieve monotony and boredom that involves assigning workers additional tasks at the same level of responsibility to increase the number of activities they have to perform. (p. 56) job enrichment (vertical loading) Any effort that makes an employee's job more rewarding or satisfying by adding more meaningful tasks and duties. (p. 56) job rotation Another technique to relieve monotony and employee boredom that involves systematically moving employees from one job to another. (p. 56) job specification A list of the "human requirements", that is, the requisite knowledge, skills, and abilities (KSAs) needed to perform the job - another product of job analysis. (p. 68) National Occupational Classification (NOC) A reference tool for writing job descriptions and job specifications. Compiled by the federal government, it contains comprehensive, standardized descriptions of about 40 000 occupations and the requirements for each. (p. 64) occupation A collection of jobs that share some or all of a set of main duties. (p. 64) organization chart A "snapshot" of the firm, depicting the organization's structure in chart form at a particular point in time. (p. 51) organizational structure The formal relationships among jobs in an organization. (p. 51) physical demands analysis Identification of the senses used, and type, frequency, and amount of physical effort involved in a job. (p. 68) position The collection of tasks and responsibilities performed by one person. (p. 49) Position Analysis Questionnaire (PAQ) A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs. (p. 61) process chart A diagram showing the flow of inputs to and outputs from the job under study. (p. 52) team A small group of people with complementary skills who work toward common goals for which they hold joint responsibility and accountability. (p. 59) team-based job designs Job designs that focus on giving a team, rather than an individual, a whole and meaningful piece of work to do, and empowering team members to decide among themselves how to accomplish the work. (p. 59) work simplification An approach to job design that involves assigning most of the administrative aspects of work (such as planning and organizing) to supervisors and managers, while giving lower-level employees narrowly defined tasks to perform according to methods established and specified by management. (p. 55) CHAPTER 4 HUMAN RESOURCES PLANNING AND RECRUITMENT LEARNING OUTCOMES DEFINE human resources planning (HRP) and DISCUSS its strategic importance. DISCUSS briefly the four strategies used to forecast internal human resources supply and four types of market conditions assessed when forecasting external human resources supply DESCRIBE four quantitative and two qualitative techniques used to forecast human resources demand. EXPLAIN how organizations deal labour surpluses and labour shortages. DEFINE recruitment, and DISCUSS the increasing use of employer branding. ANALYZE the role of job posting, human resources records, and skills inventories in recruiting from within. IDENTIFY at least 10 methods used for external recruitment. DISCUSS strategies for recruiting a more diverse workforce. REQUIRED PROFESSIONAL CAPABILITIES Researches, analyzes, and reports on potential people issues affecting the organization Identifies the organization’s staffing needs Develops, implements, and monitors processes for attracting qualified candidates Identifies the potential sources of internal and external qualified candidates Evaluates the relevance of alternatives to recruitment (developing, outsourcing, contingent workers, agencies, and so on) CHAPTER SUMMARY Human resources planning (HRP) is a process that ensures the organization has the required number and type of employees to meet its strategic goals. Using quantitative and qualitative techniques to forecast labour supply and demand is a critical element of the strategic planning process. Techniques for forecasting future HR demand are trend analysis, ratio analysis, scatter plots, regression analysis, nominal group technique, and the Delphi technique. Four techniques for forecasting internal labour supply are skills and management inventories, replacement charts and summaries, succession planning and Markov analysis. Forecasting external HR supply requires assessment of general economic conditions, labour market conditions, and occupational labour conditions. HR planners need to work with various levels of management to make decisions about how to manage labour surpluses and shortages. A range of internal and external options are available; organizations must choose solutions that fit organizational timelines and company culture. Recruitment is the process of searching out and attracting qualified job applicants. Talent shortages mean employers are relying more on employer branding in order to be seen as an employer of choice. The recruitment process has four steps: identification of job openings; review of job descriptions and job specifications; choices of recruiting source(s) and method(s); and generation of a pool of qualified candidates. Internal recruitment takes place through job postings and review of human resources records, especially skill inventories. There are a wide range of external recruitment methods from traditional print ads to an ever increasing number of online forums. Increasingly both recruitment and application are being carried out through online channels. Two emerging issues in recruitment are recruitment of non-permanent (contingent) workers and recruitment of a demographically diverse workforce. LECTURE OUTLINE I. THE STRATEGIC IMPORTANCE OF HUMAN RESOURCES PLANNING Human Resources Planning (HRP) is the process of reviewing human resources requirements to ensure that the organization has the required number of employees, with the necessary skills, to meet its goals. HRP is a proactive process, which both anticipates and influences an organization's future by systematically forecasting the demand for and supply of employees under changing conditions, and developing plans and activities to satisfy these needs. Four key steps in the HRP process are: forecasting labour supply, forecasting labour demand, gap analysis, and solutions analysis (see Fig. 4.1 p. 77). Lack of or inadequate human resources planning can result in significant costs, lead to labour mismatches across departments, reduce morale and increase turnover. The greatest concern is failure to accomplish short-term operational or long-range strategic plans. 1. The Relationship between HRP and Strategic Planning An HR plan must align with the overall goals of the organization, the organization’s short and long-term plans, and with the plans of the other functional areas of the business (e.g. marketing, finance, operations). Strategic decisions to expand, redirect, diverge, divest, partner, or merge must be accommodated through HR planning. 2. The Importance of Environmental Scanning Environment scanning is a critical component of proactive HRP and strategic planning processes. Environment scanning involves an assessment of external factors influencing the organization’s ability to find and secure talent from the external labour market including economic conditions (e.g. unemployment rate), competitive trends (e.g. compensation policies), legislative changes (e.g. minimum wage laws), social concerns (e.g. healthcare, childcare), technological developments (e.g. automation), and demographic trends. Failure to scan the environment on an ongoing basis can increase the risk of having a labour shortage or a labour surplus, whether in terms of number or type of workers. 3. Steps in Human Resources Planning Four key steps in the HRP process are: forecasting labour supply; forecasting labour demand; gap analysis; and solutions analysis Before embarking on an HR planning exercise, current HR levels must be assessed by integrating macro level information (organizational structure, business units, career paths) with micro level information (number of employees at each level, existing skill sets, demographic and job-related information). 4. Recruitment is a critical HR function because the quality of human resources depends to a great extent upon the quality of its recruits. Organizations with superior recruiting practices outperform those with less effective recruiting program, because they have the right employees to implement organizational strategy. II. FORECASTING THE AVAILABILITY OF CANDIDATES (SUPPLY) There are two sources of labour supply, internal (existing employees) and external (unemployed and those employed elsewhere). 1. Forecasting the Supply of Internal Candidates Before considering external recruitment management must determine how many candidates for projected openings will likely come from within the firm using one or more of the following approaches. Confidentiality is essential when using replacement charts, replacement summaries, or succession plans. Skills inventories and management inventories – organizational records of education, experience, skills, qualifications, interests, responsibilities, and prior training Replacement charts and replacement summaries – visual representations and lists of potential replacements Succession plans – career development plans for filling vacancies in senior or key jobs; requires balancing top management needs with potential career aspirations of available candidates Teaching Tip: consider using Ethical Dilemma (p. 80) to illustrate the balancing issue and/or the Entrepreneurs and HR Discussion Box (p. 82) on succession planning in family businesses. Markov analysis – development of a probability matrix based on past employee movements (see Fig. 4.2, p. 81) 2. Forecasting the Supply of External Candidates When a sufficient number of current employees are not available or suitably qualified to fill vacancies the firm must look for external candidates. To project the supply of outside candidates employers assess general economic conditions, labour market conditions, and occupational market conditions. General economic conditions – impact of natural fluctuations in economic activity e.g. interest rates, wage rates, inflation rate, unemployment rate Labour market conditions – demographic characteristics of available workers (e.g. education levels, age, gender, marital status, and so on). Occupational market conditions – availability of potential candidates in specific occupations (e.g. engineers, accountants, and so on). Some sectors have significant shortages, while others are experiencing a labour surplus. Teaching Tip: Have students bring in recent news stories about occupational market conditions, such as the surplus of teachers in Ontario and the shortage of skilled trade workers across Canada. Alternatively, have students download population profiles of the various regions of Canada to develop an understanding of the potential changes to the labour force due to the age profile of our population. III. FORECASTING FUTURE HUMAN RESOURCES NEEDS (DEMAND) A key component of HRP is forecasting the number and type of people needed to meet organizational objectives beginning with forecasting demand for the company’s products and/or services. Sales forecasts are translated into production volume forecasts, which determine staffing levels. Other factors that are considered are projected turnover, quality and nature of employees, product and market decisions, planned technological and administrative changes, and the organization’s financial resources. Large organizations with highly trained specialists tend to use quantitative techniques; however qualitative techniques also have their advantages. 1. Quantitative Approaches Trend analysis – initial estimate based on employment levels over last 3 – 5 years Ratio analysis - uses ratio between casual factor (e.g. sales) and # of employees required The scatter plot – graphical method of identifying relationships between causal factors and staffing levels (see Fig. 4.3, p. 86) Regression analysis – statistical technique involving use of a mathematical formula to determine the relationship between and organization’s employment level (dependent variable) and some measurable factor of output (independent variable) 2. Qualitative Approaches Qualitative approaches rely solely on expert judgements which can be used by themselves or to modify forecasts from quantitative approaches. See pages 87 – 88 for steps involved in each approach. Nominal group technique – face-to-face meeting of a group of experts who generate, clarify and engage in both open discussion and private assessment of ideas. Delphi technique – useful for long-range forecasting; often involves outside experts as well as company employees but ideas are exchanged without face-to-face interaction 3. Gap Analysis: Summarizing Human Resources Requirements The end result of the forecasting process is an estimate of short-term and long-range HR requirements. A staffing table is often used to illustrate short-term plans. IV. PLANNING AND IMPLENTING HR PROGRAMS TO BALANCE SUPPLY AND DEMAND Once the supply and demand of human resources have been estimated, program planning and implementation begins. Specific strategies must be formulated to deal with the three possible labour supply and demand scenarios – equilibrium, surplus, or shortage (see Fig. 4.4, p. 89). Labour Equilibrium – rare, no new action, maintain existing transfer and recruitment plans Labour Surplus – internal labour supply exceeds human resource demand. Solutions include one or a combination of: hiring freeze, attrition, early retirement buyout programs, job sharing, work sharing, reduced work week, layoff, termination or leave of absence. Easing the pain of labour surplus management Research has shown that layoffs and downsizing do not always result in improved financial performance, due in part to survivor syndrome; those who remain experience a range of re negative emotions which tend to be associated with stress symptoms and reduced performance. To assist employees who are laid off or terminated through no fault of their own, organizations provide supplemental unemployment benefits (SUBs), severance packages, and/or outplacement assistance. Executives tend to be protected by golden parachute clauses in their contracts. Teaching Tip: Consider using the ethical dilemma on page 90 to discuss whether survivors should be “just happy they still have a job”. Labour Shortage – A labour shortage exists when the internal supply of human resources cannot meet the organization’s needs. Internal solutions to a labour shortage – besides the initial response of overtime, transfers and promotions can be used, although these then create new vacancies. External solutions to a labour shortage – recruitment of new hires is a permanent solution, however, organizations often turn first to temporary employees or outsourcing of work to a third party organization. Teaching Tip: Share news stories about organizations where excessive overtime has become the norm and contrast this with the position of labour unions in regards to overtime. RECRUITMENT Recruitment is the process of searching for and locating an adequate number of qualified job candidates, from whom the organization may select the most appropriate to staff its job requirements. The process begins when the need to fill a position is identified and ends with the receipt of résumés and/or completed application forms. Authority for recruiting is generally delegated to HR staff; in large organizations HR specialists known as recruiters find and attract qualified candidates on a continual basis. 1. Employer Branding Employer Branding is the image or impression of an organization as an employer of choice, based on the perceived benefits of being employed by the organization; branding is particularly important during the recruiting process. Employer branding involves three steps: (See Table 4.1 p.94) Define the target audience, where to find them, and what they want from an employer. Develop the employee value proposition – the specific reasons why the organization is a unique place to work and more attractive than other organizations. Communicate the brand by incorporating the value proposition into all recruitment efforts. I. THE RECRUITMENT PROCESS There are four steps in the recruitment process (see Fig. 4.5 p. 95) Identify job openings. Specify job requirements Select methods of recruitment Generate pool of qualified candidates Recruiters must be aware of several constraints on the recruitment process such as: Promote-from-within Policies – positions must be posted internally first (especially in unionized environments); recruiters cannot begin to seek external candidates until the period is over, even if he or she is aware that there are no suitable internal candidates. Compensation Policies – pay structure and benefits package influence the attractiveness of the job to potential applicants; recruiters rarely have the authority to exceed established pay ranges, pay above midpoint, or offer non-standard benefits Employment Equity Plan – specify the organization's goals and timetables pertaining to the hiring of designated group members; recruiters often need to use non-traditional (outreach) strategies to increase the number of qualified candidates from the designated groups (women, visible minorities, disabled, aboriginals) Inducements of Competitors – monetary and non-monetary inducements offered by the competition may lure qualified candidates away; recruiters must try to meet the prevailing standards or use alternative inducements while ensuring they do not make promises they cannot keep or the firm can be charged with negligent misrepresentation. Labour Shortages – The emerging skills shortage makes recruiting more difficult; recruiters need to be ready to make substantial changes in recruitment practices. Teaching Tip: Students very often find it difficult to distinguish between recruitment and selection. To help with this have students review job postings and ads to determine what position the employer is trying to fill and how the employer is trying to attract a candidate to their organization. II. DEVELOPING AND USING APPLICATION FORMS For most employers completion of an application form is the last step in the recruitment process and provides efficient means of collecting verifiable historical data in a standardized format, even if a detailed résumé has already been submitted. Standardized application forms are requested from candidate because: Candidate comparison is facilitated as information is collected in a uniform manner The information is what the organization specifically requests The application for, if done on site, provides an example of the candidate’s own work Authorization for reference check is generally given on an application form Applicants are asked to acknowledge that their information is true and accurate Applicants may have the option of stating if they are a member of a designated group One type of application form that can be used to predict performance is a biographical information blank (BIB), also known as biodata form. Essentially, it is a more detailed version of an application form, focusing on biographical data found to be predictive of job success. Questions relating to age, gender, race or other grounds prohibited under human rights legislation cannot be used. Increasingly application forms are provided and completed online to reduce risk of lost applications, increase exposure level of the job, reduce likelihood of biases, and allow candidates to complete their application 24/7. The downside is that online applications tend to dramatically increase the volume of applications, although HRIS can be used to automatically code and pre-screen candidates. Teaching Tip: Have students discuss their experiences with online application forms in terms of necessity, ease of use, and their perception of organization based on the online application process. III. RECRUITING FROM WITHIN THE ORGANIZATION Current employees are generally the largest source of recruits. Advantages of internal recruitment are: employees see reward for competence; enhances commitment, morale, and performance. insiders may be more committed to company’s 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 the person’s skills inside candidates require less orientation than outsiders. Disadvantages of internal recruitment are: unsuccessful employees may become discontented, especially if feedback is not provided managers may be required to post all job openings and interview all inside candidates, wasting considerable time and creating false hopes on the part of those employees not genuinely being considered. employees may not accept a boss appointed from within their own ranks newly chosen leaders may have difficulty adjusting to no longer being “one of the gang.” increases the possibility of “inbreeding.”; tendency to make decisions “by the book” and to maintain the status quo, even when a new and innovative direction is needed. 1. Internal Recruitment Methods Recruiting from within can be accomplished by using job posting, human resources records, and skills inventories. Job Posting is a process of notifying current employees about vacant positions via, the company’s intranet. Content of job postings includes job title, duties, qualifications, hours of work, pay range, posting date, and closing date As illustrated in Figure 4.6 (p. 98), there are advantages and disadvantages to using job postings. Human Resources Records – Human resources records are often consulted to ensure that qualified individuals are notified, in person, of vacant positions. An examination of employee files may uncover: employees who are working in jobs below their education or skill levels; people who already have the requisite KSAs; or persons with the potential to move into the vacant position if given some additional training. Skills Inventories – Skills inventories are an even better reference tool. Whether computerized or manual, referring to such inventories ensures that qualified internal candidates are identified and considered for transfer or promotion when opportunities arise. Teaching Tip: Some low tech job posting methods may seem out of date in a smartphone enabled world. Have students discuss the use of smartphone technology (mobile apps) for job postings but also why low tech methods are also necessary or useful even today. 2. Limitations of Recruiting from Within Besides the disadvantages previously identified, there are a few other limitations in regards to internal recruiting. One is an insufficient number of qualified internal candidates, especially for non-entry level and specialized positions. It may be quicker to bring in an external candidate if a job is vacated unexpectedly or if the organization wants to acquire new knowledge/expertise, gain new ideas, and revitalize the department or organization IV. RECRUITING FROM OUTSIDE THE ORGANIZATION In contrast to internal recruitment, the advantages of external recruitment include: Generation of a larger pool of qualified candidates, impacts quality of the selection decision. Availability of a more diverse applicant pool, which can assist in meeting employment equity 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 rivalry and competition caused by employees jockeying for transfers and promotions, which can hinder interpersonal and interdepartmental cooperation. Potential cost savings resulting from hiring individuals who already have the skills, rather than providing extensive training. 1. Planning External Recruitment Several factors should be considered including type of job, and effectiveness of the external recruitment method. Effectiveness can be measured using yield ratios (see Fig.4.7, p. 99) and time-lapse data (time from initiation of recruitment activity to first day of work by successful candidate). 2. External Recruitment Methods Organizations use many methods for external recruiting. Studies have found that traditional networking (employee referrals, former employees, concentrated job fairs at educational institutions, professional and trade associations, labour organizations, and military personnel ) followed by online job boards (traditional, corporate websites, government initiated boards) tend to be the most successful ways to find a job (see Fig. 4.8, p. 100). Each method has its advantages and disadvantages. Employee referrals – low cost, but can result in systemic discrimination, inbreeding, and problems associated with nepotism (hiring or not hiring of relatives) Former employees – may be interested in rejoining “boomerangs”’, know the organization, organization knows them Educational institutions – good for jobs needing education but not as much experience; process can start via co-op, field placement and internship opportunities; schools have career centres to promote opportunities and help prepare students to interact with recruiters Open houses and job fairs – attracts large number of applicants, allows face-to-face promotion of organization and pre-screening, can also be done online Professional and trade associations – actively engaged in trying to place their members, have newsletters, magazines, websites and sometimes online, searchable databases; may attract active job seekers as well as those who had not considered a job change (passive job seekers) Labour organizations – have union hiring halls (physical and virtual); maintain roster of available members; fill requests from recruiters Teaching tip: Many students may be unaware of professional organizations and labour unions as a recruitment mechanism. Asking groups of student how they would go about recruiting candidates with very specific, and credentialed, skill sets can get students to think of these types of organizations Military personnel – Canadian Forces Liaison Council CFLC) responsible for promoting hiring of reservists by civilian employers. REAP program provides access to more than 300 military units at no charge Online recruiting – used by majority of companies and job seekers; provides large audience for postings; provides access to online job seeker databases. Types include internet job boards (e.g. Workopolis and Monster.ca) and corporate websites. Downside is sheer volume of applications and number of unqualified applicants who have to be screened. Agency Recruiters Human Resources and Skills Development Canada (HRSDC) – runs “Job Bank” largest, web-based network of job posting available to Canadian employers at no charge; helps unemployed find work and firms hire unemployed workers through government programs and tools such as “Job Match” Executive search firms –fee-based service used to fill critical positions (middle to seniorlevel professional and managerial); often specialize in particular type of talent, know and understand market, have many contacts, adept at contacting currently employed candidates “headhunting”; expensive but worth the money, highly dependent on accurate and complete information, can sometimes engage in game playing; CPC designation signifies education, testing and recruiter commitment to best practices Private employment agencies – assist with fee-based searches for clerical staff, functional specialists, and technical employees; solicit job seekers through job boards, advertising, walk-ins and write-ins; useful when hiring firm does not have HR department, has been unsuccessful in past recruiting, job needs to be filled quickly, need to attract larger number of designated group members, desire to reach out to currently employed Cold calls: - walk-ins (go in person without referral or invitation) and write-ins (submit unsolicited résumés); inexpensive, documents can be scanned and stored Online networking sites (social media) – e.g. Facebook and other social media, firms create company profiles, virtual recruitment booths, low cost access to large number of job seekers Teaching Tip: Organizations are increasingly using social media not just to find but also to prescreen candidates and are requiring candidates to provide social media passwords. Use the Ethical Dilemma on p. 105 to discuss all of the ways organizations can use social media to find out about you and what is and isn’t acceptable to students. Would students even consider finding a job through Facebook, let alone being pre-screened? Print advertising – still very common method (e.g. newspapers local and national, technical journals, billboards); decide on want ad or blind ad; use four-point AIDA guide (Attract attention, develop Interest, create Desire, instigate Action) Teaching Tip: Students are often heavily focused on online as their default communication media. Discuss what demographic would be recruited through non electronic communication and for what skill set would more traditional communication be more successful as a recruiting medium. 3. Recruiting Non-permanent Staff In recent years, many companies have increased their use of contingent workers (term, seasonal, casual, contract) to attain labour flexibility and acquire employees with special skills on an as needed basis. Two common sources are: Temporary help agencies e.g. Kelly Services, Office Overload; workers remain employees of the agency and are reassigned as needed; benefits include – lower cost, immediate substitution/replacement, tend to be highly motivated Contract workers – develop work relationships directly with the employer for a specific type of work or period of time, often professionals with specialized skills, many prefer self-employment, others have been downsized and are unable to find full-time permanent employment Teaching Tip: Given that a number of contract workers would prefer permanent employment, see what students have to say in regards to the Ethical Dilemma on p. 107. V. RECRUTING A MORE DIVERSE WORKFORCE Attracting Older Workers – tend to have high job satisfaction, loyal and committed to organization, strong work ethic, good people skills, willingness to work in variety of roles; recruiters need to deal with stereotypes of older workers held by other employees, ensure HR policies do not discourage recruitment of older workers, develop flexible work arrangements, redesign jobs as necessary, and specifically target mature workers Attracting Younger Employees – bring energy, enthusiasm and physical strength, often mirror customer base; want to work independently and have work-life balance; recruiters need to promote variety of experiences available, social responsibility, diversity, and creativity Teaching Tip: Consider using Strategic HR Discussion Box “Attracting the Younger Generation”, (p. 108) and have students critique job ads that are supposedly aimed at them. Recruiting Designated Group Members – an employers’ commitment to diversity through recruitment that targets designated group members is often the first sign of their commitment to diversity and quality; recruiters should consider linkages with organizations and agencies, advertising in alternative publications, and participating in government programs Teaching Tip: The Workforce Diversity Discussion Box (p. 109) illustrates a major challenge associated with recruiting the disabled. You can also use this as a launching pad for a more indepth discussion of other issues that face disabled job seekers DISCUSSION BOXES STRATEGIC HR: Pumping Up People Supply (p. 83) Burnaby, B.C.–based Sorin Group Canada makes intricate aortic pericardial heart valves that require highly specialized skills in engineering and production. There is a very small talent pool of biomedical engineers, quality assurance and production technicians available in Canada. While they do hire and train Canadian engineers and scientists on medical devices they have to rely on new immigrants with relevant education and experience from other countries in order to hire a sufficient number of qualified workers. and provide extensive training, including both English-language training and subsidies for foreign-trained engineers seeking a Canadian engineering degree. Teaching Tip: Have students discuss the reasons why Canadian high school students do not pursue science careers when evidence clearly shows that this is a domain of plentiful job opportunities. STRATEGIC HR: Attracting the Younger Generation (p. 108) This box highlights how to attract and retain Generation Y. They are looking for quality of friendships, feeling they can make a contribution on the job, and a feeling of safety. The Gen Ys also say that the top three ways to get their generation to join an organization are salary, casual work environment, and growth/development opportunities such as mentoring and training. Ads intended to attract them need to advertise the culture of the organization as it relates to the values of this generation. WORKFORCE DIVERSITY: The Disconnect in Recruiting People with Disabilities (p. 109) Employers want to hire people with disabilities, and qualified candidates are available, but bringing employers and jobseekers together requires improved coordination. This box describes the need for a new employment strategy that relies on partnerships to connect employers with vacancies, qualified candidates who happen to be disabled, and the service providers who help disabled individuals to enter the workforce. ETHICAL DILEMMAS You were recently asked to identify one employee you manage as a top performer to align with a new company program offering top performers intensive management skills training. The employees you identified for this role is unaware of the program. This morning, she confided in your that she just applied for graduate school and will find out if she has been accepted five month from now, with the intent to start the program one month after that. Would you change the identification of who was the top performer in our team based on this information? Why or why not? (p. 80) If you let the employee know that you were considering putting forward their name for this program then they may feel pressure to stay, depending on their relationship with you. They may also misinterpret this as a guarantee of a future career, which is outside of your authority. If they pass up graduate studies and are not successful in management training then they may blame you for giving them false hope. Furthermore, they may deliberately or inadvertently let other employees know that they were chosen over them and cause a decline in job satisfaction by those who were not considered. If you do not tell them about the opportunity then you will never know if they are considering graduate study because they don’t perceive any advancement opportunities with your organization i.e. they would love to stay but want a new challenge. You could be penalizing your organization by letting a top performer get away if the next person in line is not as qualified as this person. One solution may be to check with HR and find out if you can tell this employee about the program, without telling them that they are being considered, and see what their level of interest would be in being considered for it. It would then be their decision to defer their graduate studies or pursue graduate studies on a part-time basis while remaining with your organization. How much time, effort, and money should firms devote to helping ”surviving” employees deal with downsizing? With mergers and acquisitions? (p. 91) Based on results of numerous studies, it seems that there are high costs associated with failing to devote sufficient time, effort, and money to helping surviving employees deal with downsizing or mergers and acquisitions. Survivor syndrome involves a range of emotions that can include feelings of betrayal or violation, guilt, and detachment. Remaining employees, anxious about the next round of terminations or additional changes, often suffer stress symptoms, including depression, proneness to errors, and reduced performance. It is thus recommended that supervisors provide abundant, honest communication; provide assistance to those being affected; treat those being laid off or terminated, and survivors, with dignity and respect; allow remaining employees to grieve and deal with repressed feelings and emotions; increase their accessibility; help survivors recapture their sense of control and self-esteem; use ceremonies, such as special meetings or small-group sessions, to provide people with a chance to acknowledge the changes and their reactions to them; and reshape the systems to lessen dependency-creating processes. Failing to devote sufficient time, money, and energy to cultural adaptation following a merger or acquisition can result in a collision of cultures, which has high human costs, as well as a negative impact on the bottom line. Suppose a manager has already made up his or her mind about who will be selected for an internal position. But an internal job posting and subsequent interviews have shown another equally qualified candidate. Who should be offered the position? (p. 97) This is not an uncommon situation as managers tend to have existing relationships with subordinates or employees in other areas of the company, and sometimes even guarantee or lead people to believe they have the job even before the selection process has even begun. On one hand interviewing people to whom you are not going to offer the job may be perceived as a waste of their time and the money they spent in coming for the interview. However, the other side of the coin is that it is unethical and often illegal not to offer equal employment opportunity by shortcutting hiring processes. Whether they get the job or not, all candidates should feel that they were treated fairly, especially if they are members of one of the four designated groups. In the case where candidates appear to be equally qualified the manager can take the risk of going with their preferred candidate or can extend the selection process by reviewing the job description and job specification to identify other valid predictors on which each candidate can be assessed. S/he can also ask a third party, possibly someone from HR to review each file and see if their assessment shows that one is superior, even a little to another. Hopefully they have not guaranteed their preferred candidate the job in advance or they will find themselves in a very difficult situation if a more qualified candidate is found. Ethically and legally, the candidate who is most qualified, based on an objective set of valid predictors, should be the chosen one. Is it ethical to use personal information on social networking sites to assess job candidates? (p. 105) Many companies do this but it shouldn’t be the only way information is gathered. Job applicants and employees have a right to privacy when it comes to even job related information– this is why written consent must be made before checking references. Using social media has taken reference/background checking into a whole new domain and using personal information from Facebook, Twitter etc. increases the risk of bringing information that is not a valid predictor of job performance into the selection decision. Most people using social networking sites nowadays are aware that these sites will be checked and “clean up” their profiles before beginning a job search. However, companies are actually asking candidates to provide social media passwords – if you don’t then you are automatically out of the running, which is also unethical. A group of US senators is calling for a taskforce to investigate how employers are using social media in recruitment and selection. Teaching Tip: This is actually a selection question, so you may choose to assign this as preparation for the next chapter. Is it ethical to keep extending the contracts of contract workers, rather than hiring them as permanent employees, in order to avoid the cost of employee benefits? (p. 107) It is not ethical to take advantage of long-term workers who are basically doing the same work as someone who is a permanent employee, just to save money. On the other hand, managers do have a duty to shareholders and lenders to maintain profitability. If the work is truly variable, then extending contracts because the future is uncertain is a prudent tactic. Where it is evident that there will be a continued need for the specific skills and knowledge of a particular contract worker bringing that person on as a permanent employee can lead to higher levels of commitment and performance that offset the additional cost. If the only reason is to simply avoid paying benefits then the employer should be aware that this might affect their organization’s reputation and make it more difficult to attract and keep candidates in the future. If the reason is to avoid taxes by treating the worker as an independent contractor, then the employer should be aware that the courts are cracking down on this practice. If the employer provides tools/equipment and dictates how the work is to be done then the person is deemed to be an employee and the organization may be fined and have to pay retroactive benefits or make other restitution. KEY TERMS attrition The normal separation of employees from an organization due to resignation, retirement, or death. (p. 90) biographical information blank (BIB) A detailed job application form requesting biographical data found to be predictive of success on the job, pertaining to background, experiences, and preferences. Responses are scored. (p. 96) blind ad A recruitment ad in which the identity and address of the employer are omitted. (p. 106) contract workers Employees who develop work relationships directly with the employer for a specific type of work or period of time. (p. 107) Delphi technique A judgmental forecasting method used to arrive at a group decision, typically involving outside experts as well as organizational employees. Ideas are exchanged without face-to-face interaction, and feedback is provided and used to fine-tune independent judgments until a consensus is reached. (p. 88) early retirement buyout programs Strategies used to accelerate attrition that involve offering attractive buyout packages or the opportunity to retire on full pension with an attractive benefits package. (p. 90) employer branding The image or impression of an organization as an employer based on the benefits of being employed by the organization (p. 94) environment scanning An assessment of external factors influencing the organization’s ability to find and secure talent from the external labour market including economic, competitive, legislative, social, technological, and demographic trends. (p. 77) hiring freeze A common initial response to an employee surplus. Openings are filled by reassigning current employees, and no outsiders are hired. (p. 90) human capital theory The accumulation of firm specific knowledge and experience involving a joint investment by both the employee and employer; therefore , both parties benefit from maintaining a long term relationship (p 96) human resources planning (HRP) The process of reviewing human resources requirements to ensure that the organization has the required number of employees, with the necessary skills, to meet its goals. (p. 76) job posting The process of notifying current employees about vacant positions. (p. 97) job sharing A strategy that involves dividing duties of a single position between two or more employees. (p. 90) layoff The temporary or permanent withdrawal of employment to workers for economic or business reasons. (p. 90) leave of absence Allows those who may be interested in taking time away from work for a variety of reasons (e.g. personal, educational, etc.) to have a set period of time away from their position without pay, but with a guarantee that their job will be available upon their return. (p. 91) management inventories Records summarizing the qualifications, interests, and skills of management employees, along with the number and types of employees supervised, duties of such employees, total budget managed, previous managerial duties and responsibilities, and managerial training received. (p. 79) Markov analysis A method of forecasting internal labour supply that involves tracking the pattern of employee movements through various jobs and developing a transitional probability matrix. (p. 81) nepotism A preference for hiring relatives of current employees. (p. 101) nominal group technique A decision-making technique that involves a group of experts meeting face to face. Steps include independent idea generation, clarification and open discussion, and private assessment. (p. 97) promotion Movement of an employee from one job to another that is higher in pay, responsibility, or organizational level, usually based on merit, seniority, or a combination of both. (p. 92) ratio analysis A forecasting technique for determining future staff needs by using ratios between some causal factor (such as sales volume) and number of employees needed. (p. 85) recruiter A specialist in recruitment, whose job it is to find and attract capable candidates. (p. 93) 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 résumés or completed application forms are received from an adequate number of applicants. (p. 93) reduced workweek Employees work fewer hours and receive less pay. (p. 90) regression analysis A statistical technique involving the use of a mathematical formula to project future demands based on an established relationship between an organization's employment level (dependent variable) and some measurable factor of output (independent variable). (p. 86) replacement charts Visual representations of who will replace whom in the event of a job opening. Likely internal candidates are listed, along with their age, present performance rating, and promotability status. (p. 80) replacement summaries Lists of likely replacements for each position and their relative strengths and weaknesses, as well as information about current position, performance, promotability, age, and experience. (p. 80) scatter plot A graphical method used to help identify the relationship between two variables. (p. 85) severance package A lump-sum payment, continuation of benefits for a specified period of time, and other benefits that are provided to employees who are being terminated. (p. 91) skills inventories Manual or computerized records summarizing employees' education, experience, interests, skills, and so on., which are used to identify internal candidates eligible for transfer or promotion. (p. 79) staffing table A pictorial representation of all jobs within the organization, along with the number of current incumbents and future employment requirements (monthly or yearly) for each. (p. 88) succession planning The process of ensuring a suitable supply of successors for current and future senior or key jobs, so that the careers of individuals can be effectively planned and managed. (p. 80) supplemental unemployment benefits (SUBS) A top-up of EI benefits to bring income levels closer to what an employee would receive if on the job. (p. 91) survivor syndrome A range of negative emotions experienced by employees remaining after a major restructuring initiative, which can include feelings of betrayal or violation, guilt and detachment, and result in stress symptoms, including depression, proneness to errors, and reduced productivity. (p. 91) termination Permanent separation from the organization for any reason. (p. 91) transfer Movement of an employee from one job to another that is relatively equal in pay, responsibility, or organizational level. (p. 92) trend analysis Study of a firm's past employment levels over a period of years to predict future needs. (p. 85) want ad A recruitment ad describing the job and its specifications, the compensation package, and the hiring employer. The address to which applications and/or résumés should be submitted is also provided. (p. 106) work sharing Employees work three or four days a week and receive EI benefits on their nonwork day(s). (p. 90) yield ratio The percentage of applicants that proceed to the next stage of the selection process. (p. 99) Instructor Manual for Management of Human Resources: The Essentials Nina D. Cole, Gary Dessler, Nita Chhinzer 9780132114905, 9780133807332, 9780134305066