This Document Contains Chapters 3 to 4 3 HUMAN RESOURCE PLANNING NOTE TO INSTRUCTORS: Role-Play 2: Preparing for Job Analysis, meant to appear at the end of this chapter, is available under “Role-Plays” in the Instructor Resources section of CONNECT. CHAPTER OBJECTIVES After studying this chapter, you should be able to: Explain the importance of human resource plans for strategic success. Describe the Human Resource Planning Process Discuss methods for estimating an organization’s demand for human resources. Explain the various methods of estimating a firm’s supply of human resources. Identify solutions to shortages or surpluses of human resources. Discuss the major contents of a Human Resources Information System (HRIS). Explain how HRIS has contributed to enhancing HR service delivery POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) LECTURE OUTLINE (with PowerPoint® slides) Human Resource Planning Slide 1 Human Resource Planning Slide 2 Human resource planning Slide 3 Human resource planning process Slide 4 Causes of Demand for Human Resources Slide 5 RELATIONSHIP OF HUMAN RESOURCE PLANNING TO STRATEGIC PLANNING Human Resource planning systematically forecasts an organization’s future demand for and supply of employees, and then matches supply with demand. The human resource department will then contribute to the success of the organization’s strategic plan in several ways: • Proper staffing is critical for strategic success -- An organization needs to be staffed with the right numbers and types of people to provide for long-term success • Different Strategies Require Varying Human Resource Plans -- e.g., growth or expansion strategy usually requires aggressive hiring, training, and /or promotions; a reduction strategy often requires layoffs, early retirements, etc. • Human Resource Planning Facilitates Proactive Responses -- Human resource planning (employment planning) facilitates better recruitment, selection and training strategies to meet equal employment commitments • Successful Tactical Plans Require Appropriate Human Resource Plans -- Firm’s strategic plan is executed through many short-range, tactical (operational) plans -- The overall organizational strategy defines the human resource objectives which are accomplished through appropriate human resource plans -- Employment planning is more common in large organizations • Human resource planning can vary from capturing basic information to a more sophisticated approach -- Level 1—no formal planning -- Level 2—minimal HRP planning, focus on headcount -- Level 3—long term forecasts, needs are projected 3-6 years doesn’t integrate people planning with long term planning -- Levels 4 &5—HRP is a core strategic process, long range planning of 3-6 years, sophisticated HRIS systems -- See Figure 3.2—five levels of planning activity on page 88 THE HUMAN RESOURCE PLANNING PROCESS See Figure 3.3 on page 88 As seen in Figure 3.3, human resource planning is a process with a specific order of activities helping managers to focus on the issues that are most important so they can plan effectively to ensure organizational objectives are met. • There are 5 steps: -- Forecast demand for resources -- Assess supply of resources -- Develop HR objectives -- Design and implement programs to balance demand and supply -- Establish program evaluation THE DEMAND FOR HUMAN RESOURCES 1. External Challenges • Economic developments—developments in the environment • Social-Political-Legal Challenges—implications may be unclear • Technological challenges—can impact supply and demand • Competitors—actions of competitors influence employment levels 2. Organizational Decisions • Strategic Plan—commits the organization to objectives such as growth rates, markets, new products which determine the numbers and types of employees needed Forecasting Human Resource Needs Slide 6 Trend Projection Forecasts Slide 7 Other Forecasting Methods Slide 8 The Supply of Human Resources Slide 9 The supply of HR Slide 10 Matching Supply and Demand Slide 11 Managing Oversupply Slide 12 Managing oversupply Slide 13 Managing oversupply Slide 14 Managing oversupply Slide 15 • Budgets—increases or cuts are the most significant influence on human resource needs in the short-run • Sales and Production Forecasts—provide rapid notice of short-run changes in human resource demand • New Ventures—result in new human resource demands • Organizational and Job Design—changes in structure, automation, computerization and job redesign impact human resource needs 3. Workforce Factors • The demand for human resources is modified by employee action such as retirements, resignations, terminations, deaths, and leaves of absence FORECASTING HUMAN RESOURCE NEEDS 1. Expert Forecasts rely on those who are knowledgeable to estimate future human resource needs • Informal and instant forecast -- Manager believes workload justifies another employee • Formal expert surveys -- Planners survey managers who are the experts, about their department’s future employment needs -- May use questionnaires or focused discussions e.g. nominal group techniques (the group’s ideas are discussed and ranked through a voting process) • Delphi technique -- Solicits estimates from a group of experts, usually managers using repeated surveys until convergence in opinions occurs 2. Trend Projection Forecasts • Extrapolation -- Extending past rates of change into the future • Indexation -- A method of estimating future employment needs by matching employment growth with an index, e.g., ration of production employees to sales 3. Other Forecasting Methods • Budget and Planning Analysis -- Organizations that need human resource planning generally have detailed budgets and long-range plans • New-Venture Analysis -- Requires planners to estimate human resource needs by making comparisons with firms that already perform similar operations • Computer-based Simulation Models -- More sophisticated forecasting approaches involving computers and computer models that simultaneously use extrapolation, indexation, survey results and estimates of workforce changes LISTING HUMAN RESOURCE REQUIREMENTS • Staffing table is a list of anticipated employment openings for each type of job THE SUPPLY OF HUMAN RESOURCES There are two sources of supply: internal and external 1. Internal Supply Estimates • Skills Inventories -- Summaries of each non-managerial worker’s skills and abilities • Management Inventories -- Comprehensive reports of available management capabilities • Replacement Charts -- Visual representation of who will replace whom • Replacement Summaries -- Lists of likely replacements for each job and their relative strengths and weaknesses • Transition Matrices and Markov Analysis -- Transition matrix describes the probabilities of how quickly a job position turns over and what an incumbent may do, over a forecast period of time, from that job situation (i.e., stay, move to another position within the organization or accept a job in another organization -- Markov analysis is a forecast of a firm’s future human resource supplies, using transitional probability matrices reflecting historical or expected movements of employees across jobs 2. External Supply Estimates Not every future opening can be met with present employees. When estimating external supplies the following factors must be examined: • Labour Market Analysis -- The study of the firm’s labour market to evaluate the present or future availability of different types of workers e.g. unemployment rate • Community Attitudes -- Affects nature of the labour market e.g. anti-business or non-growth attitudes may cause employees to re-locate • Demographic Trends -- A long-term development that affects the availability of external supply -- Human Resources and Social Development Canada (HRSDC) publishes short- and long-term labour force projections; The Canadian Occupational Projection System (COPS) provides detailed projections of the Canadian economy; Job Futures identifies work trends and job prospects -- Statistics Canada also publishes reports of labour force conditions STRATEGIES TO MATCH SUPPLY AND DEMAND FOR HUMAN RESOURCES Human resource planners face three outcomes: 1. Surplus (Oversupply) • Available supply of human resources exceeds the firm’s demands 2. Equal • Rare situation where supply and demand for is equal 3. Shortage • Available supply of human resources cannot meet the firm’s needs MANAGING OVERSUPPLY When the internal supply of workers exceeds the firm’s demand, a surplus exists. There are various strategies that HR can consider. These strategies can be grouped as follows: • Headcount reduction • Attrition • Work arrangements Attrition strategies • Hiring Freeze -- Most employers respond to a surplus with a hiring freeze -- Attrition (voluntary departures) slowly reduce the surplus • Early and Phased Retirement Offers -- Early retirement is a form of attrition and is used to encourage long-service workers to retire before their normal retirement age -- Phased retirement is a gradual phase into retirement Alternate work arrangement strategies • Job Sharing -- Available work is spread among all workers in a group to reduce the extent of layoffs • Use of Part-time Workers -- Eliminating full-time positions and replacing them with part-time positions, thus reducing the total work hours -- Increases flexibility for employers by matching the workforce with peak demands; also benefits employers as part-time employees are often not provided benefits • Internal Transfers • Organizations may attempt to find new internal jobs for surplus employees • Loaning or Flexforce -- May be used by seasonal companies instead of laying off employees, they are loaned to other organizations for special projects, etc. Headcount reduction strategies • Layoffs -- Temporary withdrawal of employment to workers for economic or business reasons -- Unpleasant for both workers and management, however may be required when attrition is not enough to reduce employment levels • Leave without Pay -- Used to temporarily reduce the number of employees on payroll e.g. to attend college or university, or pursue other interests • Termination -- Permanent separation from the organization for any reason -- Severance pay to employees who are being permanently separated -- Outplacement to help employees find jobs with other employers Overcoming Employee Shortages Slide 16 Alternative Arrangements in Staffing Slide 17 Alterative arrangements in staffing Slide 18 Alternative arrangements in staffing Slide 19 Alternative arrangements Slide 20 Human Resource Information Systems Slide 21 HRIS Factors for Consideration Slide 22 Components of an HRIS systems Slide 23 Security considerations of an HRIS system Slide 24 HRIS – an important tool for strategic HRM Slide 25 STRATEGIES TO OVERCOME SHORTAGE OF EMPLOYEES See Figure 3-16 on page 106 There are several options to choose from depending the sense of urgency, economic conditions and productivity gains. The staffing options to consider are: • Hire employees • Source alternative service providers • Develop employees internally • Consider existing work arrangements Work Arrangements • Overtime -- Asking employees to work beyond the normal hours -- Unwanted consequences include fatigue, increased stress and accidents -- Flexible schedules -- Flexible time and location – telecommuting, virtual organization -- Flexible policies – e.g. flexible retirements Hire employees • Part-time Workers -- Increasingly popular strategy for meeting human resource needs • Full-time Employees -- Where internal transfer or promotion is not feasible, hiring full-time employees may be required--results in additional fixed costs Source service providers • 3rd party e.g.Temporary Employment Agencies -- Temps work for a temporary employment agency and are assigned to employers that contact the agency for help -- Independent contractor-a freelancer (self employed) -- Outsource- contracting tasks to outside agencies or persons -- Crowdsource- it is an action taken by a company that takes a function once performed by employees and outsources it to an undefined network for people in the form of an open call ( via the internet) Develop employees internally • Float and Transfer -- Movement of an employee from one job to another that is relatively equal in pay, responsibility and organizational level • Promotions -- Movement of an employee from one job to another that is higher in pay, responsibility, and/or organizational level HUMAN RESOURCE INFORMATION SYSTEMS A Human Resource Information System (HRIS) is a system used to collect, record, store, analyze, and retrieve data concerning an organization’s human resources • The larger the organization and the more dynamic an organization’s environment, the greater the need for a sophisticated HRIS • Information varies from one organization to the next, however key elements include wage and salary data; benefits; training and development records and costs; employee information; organizational data; grievances, demographics of the workforce, productivity data, etc. • Not all HRIS systems are the same. There are many different systems to choose depending on organizational requirements. Key considerations are: -- Size -- What information needs to be captured -- The volume of information transmitted -- The firms objectives -- Managerial decision needs -- The importance of reporting capabilities -- Technical capabilities of the firms hardware -- Available resources Components of an HRIS systems -- Benefits -- Payroll -- Union related information -- Performance appraisal -- Training -- Recruitment -- Health and Safety -- See Figure 3-15 & 3-16 on page 114. Security is an important aspect of an HRIS system -- Access to HRIS Information i.e., determining who should have access and who should have the right to change input data -- Security i.e., concerns about unauthorized disclosure of information, viruses, etc. HRIS – AN IMPORTANT TOOL FOR STRATEGIC HRM • Increased efficiency—enhanced service delivery • Increased effectiveness—helping stakeholders make better decisions • Increased contribution to organizational sustainability- talent management • Increased visibility—enhanced HR competencies ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. What are the key steps in human resource planning in organizations? Which of your actions, if any will be different if you were planning human resources for a smaller firm (that employees fewer than 50 persons) than for a larger firm (which as 500 employees)? Figure 3-2, p. 95, summarizes the key concepts discussed in this chapter. 2. What are staffing tables and replacement charts? Of what use is it to a human resource manager? Staffing tables indicate short-range staffing needs by types of jobs. It helps recruiters and others in the organization approach staffing in a more logical, proactive manner by detailing specific employment needs. (See Figure 3-7, p. 102.) Replacement charts are a visual representation of who will replace whom in the event of a job opening. (See Figure 3-9, p. 105.) 3. Discuss any three techniques for estimating the demand for human resources. Provide examples where relevant. The forecasting techniques for estimating future HR needs are expert systems, trend analysis and other methods, which include budget & planning analysis, new venture analysis and computer models. (See Figure 3-4, p. 98.) 4. What are some popular approaches to match supply and demand of human resources? Briefly discuss two approaches (each) for situations when demand exceeds and is less than supply of human resources highlighting their advantages and limitations. When demand exceeds the supply of human resources a shortage of employees exists. Options to deal with a surplus include: • Overtime • Part-time Workers • Temporary Employment Agencies • Internal Temporary Pools • Employee Leasing • Transfers • Contract Workers • Promotions • Full-time Employees See pp. 114-119 for a discussion of advantages and disadvantages. When the demand is less than the supply of human resources a surplus exists. Options to deal with a surplus include: • Hiring Freeze • Early and Phased Retirement Offers • Job Sharing • Use of Part-time Workers • Internal Transfers • Layoffs • Leave without Pay • Loaning or Flexforce • Termination See pp. 110-114 for a detailed discussion of pros and cons. 5. “Alternate work arrangements are useful approaches for both the employer and the employee.” Discuss. Alternate work arrangements can provide employers with greater flexibility as well as to reduce costs. They can also meet the employee’s needs for flexibility and help them better balance work-family demands. For a detailed discussion of the pros and cons of specific alternate work arrangements see pp. 120-23. 6. What are some of the security considerations organization must understand when implementing an HRIS? Provide an example of one way that security profiles are set up? • Who can access the files • Who can view the files • Who can change the information • Who can merely view the information • Profiles can be set up using “roles” e.g. HR manager can view certain types of information but cannot edit the information See discussion on pp. 1115-116 the text. ANSWERS TO CRITICAL THINKING QUESTIONS 1. Suppose human resource planners estimate that several technological innovations indicate that your firm will need 25 percent fewer employees in three years. What actions would you take today? First, you want to estimate the annual attrition rate. If the departure rate is high enough, an employment freeze might reduce employment levels sufficiently to avoid any other drastic actions. (Imbalance in staffing levels during the three years might be handled through overtime payments, retraining, or occasional hiring.) If attrition is not sufficient to lower employment levels, outplacement efforts and requests for voluntary resignations or early retirements might avoid layoffs and terminations. 2. Suppose you managed a restaurant in a winter resort area. During the summer it is profitable to keep the business open, but you needed only one-half the cooks, table servers, and bartenders. What actions would you take in April when the peak tourist season ended? Voluntary resignations could be solicited. Otherwise, a reduction in the work force will have to take place through layoffs and terminations. Since overstaffing is an annually recurring problem, the firm might want to recruit workers who seek the summers off. Perhaps parents who want to be home during the summer while their children are out of school or farmers who may have less work to do during winter months might be recruited in the future. 3. If your company locates its research and development offices in downtown Windsor, Ontario, the city is willing to forego city property taxes on the building for 10 years. The city is willing to make this concession to reduce its high unemployment rate. Calgary, Alberta, your company's other choice, has a low unemployment rate and is not offering any tax breaks. Based on these considerations, which city would you recommend and why? There is no right answer to this question. It requires a consideration of the trade-off between taxes saved and the ease of recruiting and retaining capable workers. However, Windsor's high unemployment rate is probably among unskilled or semiskilled workers, few of whom would be employed in research and development work. 4. Assume you are the human resource manager in a Canadian university employing approximately 300 faculty members. Since these faculty members constitute a “valuable” resource for your organization, you decide to install an accounting procedure for changes in the value of this asset. How will you go about it? What problems do you anticipate in the process? Changes in the “value” of the human assets can be calculated using “cost” or “value” models. Some of the “cost” based calculations are: • cost of special training programs for the faculty members • travel and other costs for workshops, training programs, conferences, etc., which faculty attended • recruiting and hiring costs for new faculty • research stipends and grants given to faculty, etc. • changes in salaries, etc. • costs of reduced quality in teaching, research, and/or university services on account of a temporary transfer/change in job of a faculty member (i.e., opportunity costs of faculty members doing same activity rather than their normal duties) Some of the “value”-based calculations can be: • the surplus salaries that faculty members can earn by moving into other schools (i.e., sum of the “market value” of all faculty less their current salaries) • income generated by each faculty to the university • (An example of income from student fees alone is: Assume a professor teaches five courses each year. The total number of students in the five classes is, say, 300; if the fee per course is, say, $500, then the total income generated is: 500 x 300, or $150,000.) • research and other grants secured by faculty members Clearly both “cost” and “value” models involve some degree of subjectivity in calculation. Also, it is hard to defend that tuition income is reflective of the “value”' of faculty, as the quality of the instructor has often very little to do with student enrollment. 5. For a high-tech organization, where the job specifications and customer needs continually change, which of the forecasting techniques discussed in the text are likely to be relevant? Why? Complex statistical methods are probably not useful for this purpose. More likely some type of expert approach may be more appropriate, like the expert forecast, the nominal group technique, or the Delphi technique (see discussion on p. 110). 6. Some fire departments and hospital staff are using the 3-day, 36-hour schedule. Do you see any negative aspects with this schedule? A potential drawback could include scheduling problems. In addition, the long hours could become boring or monotonous. The longer work days may also result in increased stress and fatigue which could increase the risk of errors and/or safety concerns such as accidents. 7. Assume you work for a firm that employs 30 managerial and 70 clerical/sales employees. As a cost-cutting strategy, your firm is forced to terminate the service of ten percent of your managers and five percent of your clerical staff. What specific actions will you take to help the departing employees? A popular service offered to departing employees is outplacement (also called career management), usually provided by consultants specializing in this field. It assists the terminated employees in finding new jobs by providing training in resume writing and interviewing skills. The company may also provide office space, secretarial services, copying machines, fax machines, long-distance phone calls, counselling, and general job hunting skills. (See the discussion on p. 114 of the text.) ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. INCIDENT 3.1: ZEBRA LTD Incident Comments This is a typical example of a mid size IT company who is highly innovative and has suddenly experienced a significant market demand for its new product/service. The human resource requirements become increasingly more important to address. This case highlights the importance of proactive planning. 1. What staffing options does he have available? Determine what the advantages may be for each option Refer to figure 3-13 for the various options available. The obvious answer might be to hire however a discussion as to developing internally is an important consideration and discussing the budgetary differences between hiring and contracting out work. 2. What specific skills would he need? How would he go about finding out the information? Refer to chapter 2 on job analysis. Students should consider meeting with managers to discuss the skills needed and conducting a job analysis. Also consider the internal supply and the importance of having a skills inventory and whether the organization utilizes these tools. 3. Where should he go to find these skills? Can some skills sets be sourced locally or will the organization need to go nationally? Depending on the skill set and level (senior /executive/ or technical/professional) students will need to consider the availability both internally and externally. Can link this answer to the chapter on recruitment and discuss the market regarding hot skills and availability. 4. Assuming the organization is going to hire contract employees, what advice would you give the managers with respect to managing this group? Review figure 3-14 – five key tests to determine contractor/employee status INCIDENT 3.2: WHAT DOES THE WEATHER HAVE TO DO WITH HRP? EL NINO IMPACTS? Incident Comments Global warming is top of mind in the media and of significant concern for environmental scientists. This mini case heightens the awareness of the HR student as to the resource issues of such a major environmental shift and addresses the need to utilize effective forecasting tools. 1. What industries do you think would be most affected by this? Encourage the students to think about the industries that provide products and services such as clothing for inclement weather in both the retail and manufacturing sectors for example. Travel destinations and vacation packages would be another area that would be affected. Also as the polar ice cap melts the water levels can rise and that would impact the scientific community and those firms that offer environmental services. Students can be encouraged to do some research on this topic and bring this information to class. 2. Identify some specific jobs that would be in demand. Review Figure 3-5 Techniques for estimating Future human resource needs. Students can compare the expert to trend forecasts to decide which might be more applicable in this case. 3. Identify some specific jobs that might be compromised and where there may be an oversupply if these trends continue. If the students do not know of these jobs they can reference the NOC for information as to the industry and jobs/job titles. In addition some internet research can elicit relevant information. CASE STUDY: MAPLE LEAF SHOES LTD. – A HUMAN RESOURCE PLANNING EXERCISE Answers to Discussion Questions 1. Prepare a human resource plan for the Juvenile Division for the year 2008. The last five years' productivity ratios are (production divided by number of employees): 2007 0.786 2008 0.779 2009 0.779 2010 0.789 2011 0.744 A 25% improvement in productivity is expected to lead to: 0.744 multiplied by 1.25 = 0.93 Overall number of workers needed in the division = 98 divided by .93 or = 105 persons. To find out the distribution across the four operations, one has to look at 2009-2010 figures (Table 1). The proportion of employees in each operation in 2010 were: Cutting 26 out of 136= 19.2% Shaping 40 out of 136= 29.4% Assembling 33 out of 136= 24.2% Finishing 37 out of 136= 27.2% In the normal course of events, this will mean the following distribution of workers (out of 105 total in 2012): Cutting = 20; Shaping = 31; Assembling = 25 and Finishing = 29. The 25% increase in productivity is achieved largely by automation. In 2012, automated processes will produce 33% of total production. This means that approximately 9 fewer persons (33% of 26= 8.58 rounded off to the next higher number) will be needed. Hence, 17 cutters will be required in the next year. The remaining 88 (105 minus 17) will have to be distributed among shaping, assembling, and finishing in the ratio of 29.4: 24.2: 27.2 (or approximately equal proportion since their productivity is supposed to be improving equally). So, the workforce in 2012 in the four operations will be: (total will still be 105). Cutting (A) = 17; Shaping (B) = 32; Assembling (C) = 26; Finishing (D) = 30. Based on Table 1, the following movement patterns among operations can be calculated: Proportion of workers who move from/to divisions or exit A = cutting B = shaping C = assembling D = finishing From To To A B C D Exit A .81 .12 .04 0 .04 B .00 .80 .10 .05 .05 C .00 .06 .79 .15 .00 D .00 .00 .00 1.00 .00 If the same patterns continue, the 125 persons in the division in 2011 will be re-distributed in the following fashion by 2012 (assuming the same pattern as 2009-2010 holds true): Total employees of 125 were distributed as below: A= 19.2% of 125 = 24 B= 29.4% of 125 = 37 C= 24.2% of 125 = 30 D= 27.2% of 125 = 34 Their movements will be as follows From To 34 A B C D Exit Total A 19 3 1 0 1 24 B 0 30 3 2 2 37 C 0 2 24 4 0 30 D 0 0 0 34 0 24 In summary: Division Needed Available Shortage Col 1 Col 2 Existing or excess Transfers (Col 1 Minus Total of Col 2) total o col A 17 19 0 -2 B 32 30 3+2 -3 C 26 24 1+3 -2 D 30 34 0 -4 Note that 6 persons (or 5% of 125) are going to retire. We don't know which operation they work for. Based on that, 5 persons (namely 11 above minus 6 who retire) will have to laid off. A number of women workers might like to job share. Hence, the actual number of workers who may have to be laid off will be smaller. Other Activities: (a) 50% of clerical staff (total = 15) have to be laid off as well. (b) 6 new sales staff (1 supervisor + 2 assistants each for two locations) must be newly hired or transferred from elsewhere. (c) 4 managerial positions must be eliminated. In summary, 5 operators, 7 clerks, and 2 supervisors have to be laid off; 6 new sales positions have to be filled. Rather than laying off the staff, it will be desirable to retrain and transfer them to other positions. 2. What other suggestions and comments would you make to the management if you were in Reynolds’ position? The report should reflect an understanding of the human element in HR planning. Before deleting positions and laying off employees, the HR manager should consider the people and the group implications of such decisions. For example, is it possible to transfer the workers and managers to other locations and operations? The firm seems to have a concentration of women in low-paying, boring jobs such as cutting and shaping. Why aren't more women in complex and/or supervisory positions? Is there a long-term plan to help these lower-level employees to move into supervisory or managerial positions? Has the firm prepared its staff for future growth? How is the firm preparing itself for future automation? Is there consultation with the union and employee groups on this matter? How does the firm prepare for increasing diversity that is bound to emerge in the future? What are the implications of locating plants abroad. CASE STUDY: CANADIAN PACIFIC AND INTERNATIONAL BANK – PLANNING SUPPLY AND DEMAND FOR A CALL CENTRE AT CPIB Answers to Discussion Questions 1. Comparing the forecasted HR supply and demand, conduct a needs assessment. What levels have a labour surplus and what levels have a labour shortage? How many employees would the company need to meet the demands for the next year? Ask the students to review page 100-101. 1. Markov Matrix -- outline of employee movements A B C D Shift Mgr Dept Super Team Leader Cust serv rep Exit Totals A Shift Mgr 0.70 0.05 0.00 0.00 0.25 100% n= 6 4 0 0 0 2 6 B Dept Supervisor 0.13 0.82 0.03 0.00 0.02 100% n= 18 2 15 1 0 0 18 C Team Leader 0.05 0.10 0.72 0.05 0.08 100% n= 105 5 11 76 5 8 105 D Cust service rep 0.00 0.00 0.22 0.54 0.24 100% n= 590 0 0 130 318 142 590 Total employees n= 719 11 26 207 323 152 719 2. Potentially problematic predicted workforce trends: A. the number of CS reps will decline from 590 to 323- a significant shortfall B. the number of employees in all senior positions will increase- the increase will have to be compared to projected needs. 3. Markov Matrix – outline of employee movements after including a 3% retirement factor in the exit projections. A B C D Exit incl Shift Mgr supervisor TL CSR 3% retiremt Totals Change A Shift Mgr 0.67 0.05 0.00 0.00 0.28 100% n= 6 4 0 0 0 2 6 0 B Dept Supervisor 0.13 0.78 0.06 0.00 0.06 100% n= 18 2 14 1 0 1 18 1 C Team Leader 0.05 0.10 0.69 0.05 0.11 100% n= 105 5 11 72 5 12 105 4 D Cust service rep 0.00 0.00 0.22 0.51 0.27 100% n= 590 0 0 130 301 159 590 17 Total employees n= 719 11 25 203 306 174 719 22 Potentially problematic workforce trends – after including a 3% retirement rate. A. The number of CSR will decline from 590 to 306- an even larger shortfall than projected before. B. Shift managers will increase from 6 to 11 C. Team leaders will increase from 105 to 203 D. Dept supervisors will increase from 18 to 25 E. CSR will decrease from 590 to 306 To determine if the increase in senior staff is a problem, projected senior staff increases will have to be compared to projected requirements (see Q5 below) 1. Assuming a direct relationship between employees needed and call centre activity, the projected increase in activity would lead to the following employee requirements current projected increase % increase Markov Matrix projections Position Over/under customers 5,200,000 6.700,000 1.500,000 29% manager 6 8 2 29 11 3 supervisor 18 23 5 29 25 2 TL 105 135 30 29 203 68 CSR 590 760 170 29 306 [454] Total 719 926 207 29 545 [381] Conclusions: 1. There will be a very large shortfall of CSR. The projections after accounting for a 3% retirement rate shows a shortfall of 454 CSRs. 2. There will be excesses in all senior positions. The excess employees by position are projected to be: Needed Projected excess Shift manager 8 11 3 Dept Supervisor 23 25 2 Team leader 135 203 68 166 239 73 3. Part of the shortfall of CSR could be reduced by not promoting as many CSR’s as planned to higher positions. Reducing promotions at all levels would also reduce the excess levels of senior employees. 44 LEGAL REQUIREMENTS AND MANAGING DIVERSITY CHAPTER OBJECTIVES After studying this chapter, you should be able to: Explain the impact of government on human resource management. List the major provisions of the Canadian Human Rights Act. Explain the effect of human rights legislation on the role of human resource specialists. Define harassment and explain what is meant by the term sexual harassment. Outline an Employment Equity Program. Define diversity management and discuss the strategic importance of managing diversity. Discuss the various steps in managing diversity. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) LECTURE OUTLINE (with PowerPoint® slides) Meeting Legal Requirements Slide 1 Government Impact Slide 2 The Charter of Rights and Freedoms Slide 3 Human Rights Legislation Slide 4 GOVERNMENT IMPACT Governments present many challenges to human resource departments. Federal and provincial laws regulate the employee-employer relationship and challenge the methods human resource departments use. Governments create special regulatory bodies such as commissions and boards, to enforce compliance with the law and aid in its interpretation. • Responsibilities of human resource specialists: -- Stay abreast of laws, interpretations and rulings -- Develop and administer programs to ensure compliance -- Pursue their traditional roles of obtaining, maintaining, and retaining an optimal workforce THE CHARTER OF RIGHTS AND FREEDOMS The Canadian Charter of Rights and Freedoms is contained in the Constitution Act of 1982 and is probably the most far-reaching legal challenge for human resource managers. The Charter provides fundamental rights to every Canadian. HUMAN RIGHTS LEGISLATION Human rights legislation is a family of federal and provincial acts that have a common objective to provide equal employment opportunities for members of protected groups. The two layers of employment laws: • Federal law -- Passed by Parliament and enforced by the federal Human Rights Commission / Tribunal (applies to employers under federal jurisdiction) • Provincial law -- Passed by provincial governments and enforced by provincial human rights commissions / tribunals (applies to employers under provincial jurisdiction) Direct vs. Indirect Discrimination Slide 5 Human Rights Legislation Slide 6 Prohibited Grounds of Discrimination Slide 7 Harassment Slide 8 Enforcement Slide 9 Employment Equity Slide 10 Employment Equity Act (1987) Slide 11 Employment Equity Amendment (1996) Slide 12 Functional Impact of Employment Equity Slide 13 Major Steps: Employee Equity Programs Slide 14 Pay Equity Slide 15 DISCRIMINATION • Discrimination is defined as “a showing of partiality or prejudice in treatment; specific action or policies directed against the welfare of minority groups” (Source: Webster’s New World Dictionary of the American Language) • Discrimination is not defined in the Charter of Rights and Freedoms • Direct discrimination on grounds specified in the human rights legislation is illegal • Systemic (indirect or unintentional) discrimination -- Any company policy, practice, or action that is not openly or intentionally discriminatory, but that has an indirectly discriminatory impact or effect -- Examples include minimum height and weight requirements; internal hiring policies, limited accessibility of buildings or facilities HUMAN RIGHTS LEGISLATION • Bona fide occupation qualification (BFOQ) -- Legal form of discrimination -- Justified business reason for discriminating against a member of a protected class • Duty to accommodate -- Requirement that an employer must accommodate the employee to the point of “undue hardship” PROHIBITED GROUNDS OF DISCRIMINATION 1. Race and Colour -- Discrimination that is intentional or unintentional, subtle or very open 2. National or Ethnic Origins -- It is illegal for human resource decisions to be influenced by the national or ethnic origins of applicants 3. Religion -- A person’s religious beliefs and practices should not affect employment decisions -- An employer must accommodate an employee’s religious practices unless those practices present undue hardship 4. Age -- For the most part, mandatory retirement has been abolished in Canadian jurisdictions 5. Sex/Sexual Orientation -- It is illegal to discriminate against job applicants and current employees because of their sex -- It is unlawful to have separate policies for men and women -- In 2000, Parliament passed legislation treating same-sex partners the same as legally married and common-law couples for all purposes of federal law 6. Marital/Family Status -- Discrimination based on marital status is illegal, e.g., denying a woman a job because her husband is already employed by the same company -- Nepotism is a form of discrimination based on family status, i.e., having a policy of hiring employees’ children for summer jobs 7. Disability -- With practical exceptions (e.g. a blind person cannot be a truck driver) a person should not be denied employment solely for the reason of being disabled and employers have an obligation to reasonably accommodate a disabled employee to the point of undue hardship -- Drug-dependency or alcoholism may be interpreted as disabilities 8. Pardoned convicts -- The Canadian Human Rights Act prohibits discrimination against a convicted person if a pardon has been issued for the offence HARASSMENT Harassment occurs when a member of an organization treats an employee is a disparate manner because of that person’s sex, race, religion, age, or other protective classification. • Examples of harassment -- Verbal abuse or threats -- Unwelcome remarks, jokes, taunting -- Practical jokes that cause awkwardness -- Leering or other gestures -- Condescension or paternalism that undermines self-respect • Sexual harassment -- Unsolicited or unwelcome sex-or gender-based conduct that has adverse employment consequences for the complainant -- Men may also be subjected to sexual harassment • Reasonable person—it will be assumed that harassing behaviour has taken place if a “reasonable person” ought to have known that such behaviour was unwelcome ENFORCEMENT Responsibility for enforcement of the Canadian Human Rights Act lies with the Canadian Human Rights Commission (CHRC) • Deals with complaints -- May also act on its own if an infraction is perceived • Provincial Human Rights Laws and Human Rights Commissions -- Canadian provinces and territories generally have their own human rights laws and human rights commissions with similar discrimination criteria, regulations, and procedures. BC abolished its commission, but retained its Human Rights Tribunal. Nunavut has a human rights tribunal and Ontario has both a commission and a tribunal. EMPLOYMENT EQUITY Four Designated Groups: • Women • Aboriginal people • Persons with a disability • Visible minorities The Abella Commission on Equality in Employment was appointed to determine the most effective, efficient, and equitable methods of promoting employment opportunities for four designated groups • Employment Equity Act was passed by the federal government in August 1987 -- Employers with 100 employees or more under federal jurisdiction are required to develop annual plans setting out goals and timetables -- As of 1996, employers are responsible for providing “reasonable accommodation,” e.g., providing a sign-language interpreter for a job interview with a deaf applicant, altering dress or grooming codes to allow Aboriginal people to wear braids, etc. Functional Impact of Employment Equity • Human resource plans -- Must reflect the organization’s employment equity goals • Job descriptions -- Must not contain unneeded requirements • Recruiting -- Must ensure that all types of applicants are sought • Selection -- Screening devices must be job-relevant and non-discriminatory • Training and development -- Must be made available for all workers, without discrimination • Performance appraisal -- Must be free of biases that discriminate • Compensation programs -- Must be based on skills, performance, and/or seniority EMPLOYMENT EQUITY PROGRAMS Developed by employers to undo past employment discrimination or to ensure equal employment opportunity in the future. Major Steps in Employment Equity Programs • Exhibit commitment -- Total support from top officials is required, e.g., raises, bonuses, and promotions dependent upon each manager’s compliance • Appoint a director -- Some member of the organization should be responsible e.g. vice president of human resources with an HR specialist responsible for day-to-day implementation • Publicize commitment -- Publicized externally and internally • Survey the workforce -- To compare the composition of the employer’s workforce with the composition of the workforce in the labour market • Develop goals and timetables -- Goals and timetables to eliminate underutilization and concentration should be established • Design specific programs -- Human resource specialists design remedial, active, and preventive programs • Establish controls -- Benchmarks are required to evaluate and reward success PAY EQUITY Women aged 25-54 earn about 85% as much per hour compared to male employees • Equal pay for work of equal value -- A number of provinces have laws that make it illegal to pay women less than men if their jobs are of equal value -- At the federal level, the Canadian Human Rights Act prohibits discrimination based on sex, making it illegal to pay women less than men if their jobs are of equal value • Recent cases -- Federal government settled in 1999 at a cost of $3.5 billion -- A 2011 Supreme Court of Canada decision involving Canada Post employees is expected to cost the employer $250 million. Reverse Discrimination Slide 16 Principle of Natural Justice Slide 17 Other Legal Challenges Slide 18 Strategic Implications Slide 19 Diversity Management Slide 20 Organizational Barriers Slide 21 Workplace Diversity Slide 22 Dimensions of Diversity Slide 23 REVERSE DISCRIMINATION This charge usually arises when an employer seeks to hire or promote a member of a protected group over an equally (or better) qualified candidate who is not a member of a protected group • Places Human Resource departments in a difficult position • Canadian Human Rights Act declares Employment Equity Programs non-discriminatory if they fulfil the spirit of the law PRINCIPLE OF NATURAL JUSTICE • Minimum standards of fairness and implied obligations for decision-making: -- The right to a fair hearing -- The right to a bias-free proceeding -- The right to present the opposing argument -- The right of legal representation -- The right to timely notice of a hearing -- The right to a timely process OTHER LEGAL CHALLENGES Other relevant issues include: • Canadian Labour Code (1971) -- Regulates union certification and other aspects (Chapter 14) -- Provincial equivalents are the Employment (or Labour) Standards Acts • Dismissal -- An employee or employee can terminate an employment relationship as long as reasonable notice is given. Immediate dismissal can occur if the employee is provided severance pay • Hours of work and overtime regulations -- Canada Labour Code sets the standards • Minimum wages -- Set by provincial and federal boards (Chapter 9) • Occupational health and safety -- Regulation of occupational health and safety issues (Chapter 12) • Weekly rest day -- Canada Labour Code specifies at least one full day of rest during the week is to be provided (preferably Sunday) • Workplace Hazardous Material Information System (WHMIS) -- Regulates the handling and labelling of dangerous material (Chapter 12) STRATEGIC IMPLICATIONS OF LEGAL CHALLENGES • Ensure all rules and policies consider legal aspects o -- Human Resources is responsible to ensure that all policies and rules take legal aspects into account • Employment equity requirements -- Ensure that all long-range strategic plans follow employment equity requirements -- Required to do business with the federal government • Good corporate citizen -- Project external equity to be attractive to job applicants • Training -- To ensure managers and supervisors are familiar with the laws • Sexual harassment and unjust dismissal -- Prominent issues DIVERSITY MANAGEMENT A diverse workforce requires managers with new leadership styles who understand employees’ varying needs and creatively respond by offering flexible management policies and practices • A combination of factors including government policies, demographic and labour forces changes, increasing global operations, technological revolution have fundamentally changed the way Canadian organizations work and who they employ • A variety of organizational barriers exist: -- Old boy’s network is the set of informal relationships that develop among male mangers and executives that provide increased opportunities for men -- Glass ceiling is the invisible but real obstructions to career advancement of women and visible minorities, resulting in frustration, career dissatisfaction, and increased turnover -- Stereotyping is the process of using a few observable characteristics to assign someone to a pre-conceived social category MEANING OF DIVERSITY MANAGEMENT Workplace diversity includes important human characteristics that influence an employee’s values, perceptions of self and others, behaviours, and interpretations of events Dimensions of Diversity Include: • Core dimensions of diversity -- Exert considerable impact on our early socialization and have a sustained life-long impact Strategic Importance Slide 24 -- Includes age, ethnicity and culture, sex/gender, race, religion, sexual orientation, and capabilities -- Example: An individual’s age impacts how (s)he is perceived by others, the individual’s ability to learn, perform tasks; also impacts the individual’s perceptions and behaviours • Secondary dimensions of diversity -- Are less visible and more variable in their impact on individual behaviour -- Includes education, status, language, income levels, etc. STRATEGIC IMPORTANCE OF DIVERSITY MANAGEMENT Several factors make diversity management strategically important • Changing Workforce -- Canadian labour market is undergoing a transformation -- Today’s workforce is considerably more diverse than in the past • Importance of Human Capital -- Knowledge workers may be the key to success or failure -- Most valuable parts of the organization’s operation may be reflected by the human tasks performed, e.g., sensing, decision-making • Diversity as a Competitive Advantage -- Proactive organizations recognize that competitive strength often depends on focusing on employees and their clients -- A firm’s customers are no longer a homogeneous group due to globalization and changing domestic markets -- Effective managers recognize the value of tapping people’s differences and pooling their insights and experience • Paradigm Shift -- Paradigm is a shared mindset that reflects a fundamental way of thinking and understanding the world around us -- Paradigm shifts require organizations to make fundamental changes in thinking, operating and managing people -- See next slide “Traditional versus New Paradigms” • Increasing Role of Work Teams -- Teams play a dominant role in modern organizations -- Effective handling of diversity can lead to added creativity, problem-solving, and intra-organizational communication Traditional versus New Paradigms Slide 25 Steps in Managing Diversity Slide 26 Traditional versus New Paradigms • Traditional -- Organizational success is linked to standardization -- Diversity is a cost -- Rules and policies are to be shaped by senior executives -- Emphasis on “masculine” values of competitiveness, aggressiveness, and individuality -- Change employee behaviours and attitudes to suit the organization’s culture • New -- Success is linked to individual’s contribution -- Diversity is a competitive advantage -- Rules and policies are to best shaped to satisfy the customer and the employee -- Recognition that “feminine” values of openness, flexibility, and relationship orientation are important to organizational success -- Modify organizational culture to suit the needs of employees STEPS IN DIVERSITY MANAGEMENT Diversity management efforts require four key steps: 1. Identify Ideal Future State • Begins with identification of current workforce composition i.e. age, gender, ethnicity, education, and disability (may also include language, race, parental status, marital status, etc.) • Surveys, focus groups, and employee interviews are then conducted to identify present and ideal future states at work e.g. may reveal employees are experiencing difficulties in balancing work and family responsibilities 2. Analyze Present Systems and Procedures • Examine current policies, systems, practices, rules and procedures to determine their validity and fairness for a diverse workforce e.g. work assignments, recruitment and hiring, orientation, etc. 3. Change Systems, Procedures, and Practices • Senior Management Commitment -- One of the most important elements of ensuring the success of diversity efforts -- Must be viewed as integral part of the firm’s business philosophy -- Link diversity initiatives to business goals and performance criteria to create manager accountability Current Industry Practices Slide 27 Current Industry Practices (cont’d) Slide 28 • Establishment of a Diversity Committee -- To oversee diversity efforts, implement process, and serve as a communication link -- Should represent all employee groups, i.e., occupational groups, geographic locations, age, etc. • Education and Retraining -- Training in the importance of diversity needs to be provided to all employees at all levels in the organization -- Variety of training and employee development techniques may need to be used to sensitize workers to varying cultural values and norms • Wide Communication of Changes -- Information, changes in internal systems and procedures must be communicated to all employees 4. Evaluate Results and Follow-up • Monitor progress on a systematic basis and communicate quantitative (e.g. number of hires, promotions, absenteeism, turnover, grievances, etc.) and qualitative (e.g. work climate feedback) indices CURRENT INDUSTRY PRACTICES The choice of specific mechanisms should be made after consideration of the organization’s unique challenges and constraints • Diversity Training Programs -- Managers and supervisors need new skills to manage and motivate a diverse workforce -- Awareness training focuses on creating an understanding of the need for managing and valuing diversity and to increase self-awareness of diversity related issues, e.g., stereotyping, cross-cultural sensitivity -- Skill building training educates employees on specific cultural differences and how to respond to these differences in the workplace -- Content training relates to providing specific information about a culture -- Process training involves understanding how to utilize behaviours for effectiveness in diverse workplaces, e.g., management style, interpersonal communications, etc. • Mentoring Programs -- Programs encouraging members of disadvantaged groups (e.g., women) to work with a senior manger who acts like a friend and guide in achieving career success -- May be formal or informal • Alternate Work Arrangements -- Non-traditional work arrangements, e.g., flex-time, telecommuting -- Provides more flexibility to employees while meeting organizational goals, e.g., balancing work and family issues • Apprenticeships -- A form of on-the-job training in which young people learn a trade from an experienced person • Support Groups -- Provide emotional support to a new employee who shares a common attribute with the group • Communication Standards -- Formal protocols for internal messages and communication to avoid offending members of ethnic, age, or other groups, e.g., chairperson vs. chairman ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. Suppose during your first job interview after graduation you are asked, "Why should a company have an Employment Equity Program?" How would you respond? Although each person has a different idea of why employment equity programs are needed, a minimum answer should mention the need for legal compliance in a proactive manner and the need to meet the organization's social responsibility. More fundamentally, organizations should undertake whatever steps they can to ensure equal employment opportunity to all people. Other reasons may include the need to be in compliance with conciliation agreements, court orders, or rules for government contractors. 2. List the major prohibitions of the Canadian Human Rights Act. Figure 4-2, pp. 133-134, lists the prohibitions of the Canadian Human Rights Act and the prohibitions of all provincial human rights laws. 3. Since a human resource department is not a legal department, what role does it play in the area of equal employment law? The human resource department is responsible for keeping the organization in compliance with the various human rights laws. To do this, it usually develops and monitors a detailed employment equity program. When charges do arise, it is the human resource department's responsibility to provide the legal department with the necessary employee relations records and other information for the legal department to defend the case. 4. Suppose you are told that your first duty as a human resource specialist is to construct an Employment Equity Program. What would you do? What types of information would you seek? Figure 4-4, p. 147, outlines the major steps to follow to develop and implement an employment equity program. The information needed includes records about the concentration and underutilization of each protected class of workers employed by the firm. To make this determination, information about the distribution of protected classes in the firm's labour market is needed. 5. What conditions would have to be met before you could bring suit against an employer who discriminated against you because of your sex? There have to be reasonable grounds to believe that an act of discrimination has occurred. The wrongdoer can be sued in court only after a conciliation effort by an appropriate human rights commission (federal or provincial) has failed and the verdict of a human rights tribunal has not been accepted. 6. A job candidate answers "yes" to the question of whether she a smoker. She is well-qualified, but you decide not to hire her. Does she have a legal recourse? No. The human rights legislation does not mention personal habits like smoking among the prohibited causes for discrimination. It means that an employee cannot appeal to a human rights commission if he or she challenges an employer on this ground. 7. Why is management of diversity important for an organization today? Changing demographics, labour force changes, changing values, technological revolution, globalization of business, immigration policies, all have fundamentally changed the way Canadian organizations work and whom they employ (see discussion on pp. 430-432). 8. What are the steps in implementing a diversity management program? Figure 4-7, p. 157, describes the four steps in managing diversity (see also discussion on pp. 157-163). . ANSWERS TO CRITICAL THINKING QUESTIONS 1. If you are a supervisor in a bank and an employee demands to be allowed to miss Fridays for religious reasons, what would you do? Under what circumstances would you have to let the employee have time off? Under what circumstances could you prohibit it? Since most firms have policies on such issues, the supervisor would be well-advised to check first with the human resource department. Although the supervisor's assessment of the situation would be a valuable input to the human resource department's considerations, policy considerations might override what the supervisor thinks is best. If the supervisor and the human resource department believe the employee's absence would not materially affect services or if they believe they could maintain services and accommodate this employee's religious preferences, the employee's request should be granted. However, if services would be affected significantly and no other reasonable accommodation can be made, the employee could be denied the demand. 2. You have a job opening for a warehouse helper, a position that requires sometimes heavy lifting, up to 50 kg. A woman applies for the job and claims that she is able to do the work. She looks rather petite and you are afraid that she may hurt herself. When you deny her the job she threatens to complain to the Human Rights Commission. What do you do? Of course, we know that looks are deceiving. The first step would be to ask for a demonstration of her capabilities, a kind of performance test. If she performs well, there is no legal reason to deny her the job. To be on the safe side, the HR manager can ask for a doctor's certificate that the applicant it capable of lifting 50 kg with no negative consequences to her health. 3. Choose an organization that you are familiar with. Are any of its rules, practices, or policies likely to be found undesirable by its female, minority, or older employees? Why? Answers will vary. Students will reflect on their personal experiences. 4. If 40 percent of your employees are women, but if women account for only 2 percent of the executive cadre and 6 percent of the managerial cadre, what steps would you take to improve the status of women in your organization? It would require a diversity management approach as discussed on pp. 157-163. In addition, the employment equity opportunity discussion on pp. 147-148 is also relevant. ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. INCIDENT 4.1: METROPOLITAN HOSPITAL’S EMPLOYMENT EQUITY NEEDS Incident Comments This incident points out the conflicts that can arise between line managers and human resource staff specialists. The issue is particularly sensitive after an employment equity plan is developed because the human resource department often strongly believes the first promotion or two can alert others in the organization as to how serious the Employment Equity Program will be taken. 1. What weight would you give to (a) Kate's seniority and experience? (b) Roy's superior training? (c) the recommendation of the records manager? (d) the new Employment Equity Program? Kate's seniority and experience imply that she has the necessary skills to perform the job if promoted. Although Roy's education is superior, Kate's experience may be as valuable, if not more so. The recommendation of the records manager should be considered carefully, since whoever is promoted will work for her. Moreover, since the records manager is responsible for the new supervisor's performance, her wishes should receive a significant weight in the final decision. However, at some point, the needs of the Employment Equity Program for the hospital should be considered. (In practice, more Employment Equity Programs are established so that management has the flexibility in any one promotion decision to select the best-qualified employee and focus on achieving the program’s goals with subsequent promotions.) 2. What are the implications for the Employment Equity Program if Roy gets the job? What are the implications for employees presently taking job-related courses if Kate gets the promotion? The most significant implication for the Employment Equity Program is how the employees in the hospital view Roy's promotion. Some may see his promotion as meaning the best-qualified still get promoted. Others may view his promotion as confirmation that management of the hospital is going to remain largely a male "club." If Roy gets the promotion, those who are trying to better themselves through job-related training may feel that training is a good stepping stone to promotion, and that people in the hospital are not promoted simply on the basis of seniority. 3. What decision would you make if you were the human resource manager? More important than the decision reached by students is the justification for their decision. One solution some organizations make is to postpone any decision until several promotions can be announced simultaneously. In this manner, women and men are promoted, which shows that the firm is serious about promoting women. However, by promoting some qualified men, it shows the work force that men are not being excluded from consideration because of the Employment Equity Program. EXERCISE 4-1: CARVER JEWELLERY COMPANY 1. Identify which job classes at Carver exhibit underutilization. There is an underutilization of females, blacks, and Native peoples in the executive, management, and salaried/commission jobs. 2. Identify which job classes at Carver exhibit concentration. In the hourly paid jobs there is a considerable concentration of females. A slight concentration of blacks and Native peoples exists in this hourly classification. CASE STUDY: MAPLE LEAF SHOES LTD. – LEGAL CHALLENGES Answers to Discussion Questions 1. Is there a case of sexual harassment in this situation or is it only fun? Rosetta can make a good case for sexual harassment, since she obviously feels uncomfortable and cannot get any help from the supervisor. The Supreme Court decision in Robicheau vs the Department of Defense makes it clear that it is the responsibility of the employer to make sure that the job environment is free of harassment. If Rosetta would complain to the Human Rights Commission, there would certainly be an investigation and, given the circumstances, the investigator would probably find in favour of her, compelling management to take action. Since she quit, she could even sue the company for "constructive dismissal" for making her work environment unbearable. 2. If you were Eva, what would — and could — you do? What are the options? What is the probability of success of each option? Since she is a third party and not directly involved in the case, she would have to rely on Rosetta's testimony. However, Eva could initiate an investigation by the Human Rights Commission, with a high probability of success. She could also complain to the union, who could file a grievance on behalf of Rosetta, again with a good chance of succeeding. Another option, less confrontational, would be to see the HR manager and explain the situation to her, pointing out the potential consequences for the company if a complaint with the Human Rights Commission were launched. This too should be a successful approach, assuming that the HR manager perceives the seriousness of the situation. 3. What are Al's responsibilities in this instance? Did he carry them out well? Why or why not? Al is clearly responsible for the situation in the finishing section, but he does not seem to be aware of his negligence. There is little doubt that an arbitrator or a judge would find him (actually, the company) liable for letting things get out of hand and for not stepping in after Rosetta complained to him. If he had taken his responsibility seriously, he would have admonished or reprimanded the culprits. He also could have called the work group together and told them about the legal situation. He also could have initiated sexual harassment information sessions, perhaps with a representative from the Human Rights Commission as the trainer or speaker (all HRCs have information officers, who are available free of charge for such requests). CASE STUDY: CANADIAN PACIFIC AND INTERNATIONAL BANK: PLANNING FOR DIVERSITY AT HBI Answers to Discussion Questions 1. From the data provided, what conclusions can you form about the status of male and female employees (managerial and other) at HBI? Table 1 shows that the higher the position level, the smaller the percentages of female workers. There is no female at the top management level at HBI. For both females and males, the percentages with university education increases with level. Within each level, the female workers have a higher percentage with 5 or more years of experience than their male counterparts. Table 2 shows that females have more experience than males in the administration and marketing division; however, females have significantly less experience than their male counterparts in the operations division. Across all 3 divisions, females have higher leadership ratings and higher percentages with university education than their male counterparts. This suggests that the female middle managers are able to do the jobs at least as well, if not better than the male managers, even in the operations division where females have fewer years of experience. 2. What suggestions do you have for Dickoff to diversify the workforce (managerial and other) at HBI? HBI should adopt the 4 step process in diversity management (p. 433), especially in increasing the percentages of females in middle and top managerial positions. Resistance to the diversity program should be managed through diversity training that would emphasize the benefits to HBI of having more female managers. Solution Manual for Canadian Human Resource Management: A Strategic Approach Hermann F. Schwind, Hari Das, Terry H. Wagar, Neil Fassina, Julie Bulmash 9780071051552, 9781259066665
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