Solution Manual for Human Resource Management 6CE Sandra Steen, Raymond Andrew Noe, John R. Hollenbe

Instructor Manual for Human Resource Management 6CE Sandra Steen, Raymond Andrew Noe, John R. Hollenbeck, Barry Gerhart, Patrick M. Wright

Chapter 1-11

Chapter 1: Strategies, Trends, and Opportunities for HRM Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Define human resource management and explain how HRM contributes to organizational performance.

LO2: Describe how human resource management supports and shapes organizational strategy.

LO3: Summarize competencies, careers, and ethics in human resource management.

LO4: Describe trends in the labour force composition and how they affect human resource management.

LO5: Discuss how technological developments are impacting human resource management.

INTRODUCTION: Human Resources Take Centre Stage • According to David Windley, President of IQTalent Partners, a segment of Canada’s Caldwell Partners, this is an unsurpassed time to be working in human resources management.

• Technology is changing the way work gets done by automating many tasks carried out by humans.

• Organizations need people for their creativity and judgement.

• HR placed in a key role of providing talent, keeping talent, and bring out the best in talent.

HRM PRACTICES Human resource management (HRM) centres on the policies, practices, and systems that influence employees’ behaviour, attitudes, and performance.

Reference Figure 1.1 Important HR (people) practices include: • Analysis and design of work • Workforce planning (determining how many employees with specific knowledge and skills are needed) • Recruiting (attracting candidates) and Selection (choosing employees) Steen, HRM 6ce © McGraw Hill, 2023 IM 1-1

• Training, learning, and development (preparing employees how to perform their jobs and for the future) • Performance management (supporting performance) • Total rewards (rewarding employees) • Employee and labour relations (creating a positive work environment)

WHY ARE PEOPLE SO VALUABLE? Managers and economists traditionally have seen HRM as a necessary expense, rather than a source of value to their organizations • Human capital—an organization’s employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight • Organizations need resources that provide competitive advantage and human resources have these qualities: Valuable, rare, cannot be imitated, and have no good substitutes • Employee engagement refers to the degree to which employees are fully involved in their work and the strength of their commitment to their job and the organization.

IMPACT OF HRM HRM contributes to measures of an organization’s success such as quality, profitability, and customer experience. Reference Figure 1.2 Organizations need the kind of resources that will give them such an advantage. Human resources have these necessary qualities: • Human resources are valuable.

• Human resources are rare in the sense that a person with high levels of the needed skills and knowledge is not common.

• Human resources cannot be imitated.

• Human resources have no good substitutes.

THE IMPACT OF EMPLOYEE EXPERIENCE • Perceptions that employees have about their experiences at work in response to their interactions with the organization • Providing a positive employee experience is critical for keeping employees engaged and committed to the organization • Encompasses all the elements that influence an employee’s perception of the work environment and becomes an important focus for the employee’s entire journey—from first contact with a potential employer to retirement (and even beyond)

WHAT ARE THE RESPONSIBILITIES OF HR DEPARTMENTS? HR as a business within the organization with 3 product lines: Steen, HRM 6ce © McGraw Hill, 2023 IM 1-2

1. Strategic partner • Contributing to the company’s strategy • HR professionals must understand the business, industry, and competencies 2. Business partner services • Developing effective HR systems to meet organizational goals • HR people must understand the business to understand what the business needs 3. Administrative services and transactions • Handling administrative tasks e.g., processing tuition reimbursement applications and employee queries • Requires efficiency and commitment to quality • Requires expertise in the particular tasks

RESPONSIBILITIES OF HUMAN RESOURCES DEPARTMENTS Reference Table 1.1 1. Analysis and Design of Work • Job analysis involves the process of getting detailed information about jobs • Job design is the process of defining the way work will be performed and the tasks that a given job requires 2. Workforce Planning • Labour demand and supply • Identifying the number and types of employees the organization needs 3. Recruitment and Selection • Recruitment is the process through which the organization seeks applicants for potential employment • Selection is the process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals 4. Training, Learning, and Development • Training is a planned effort to enable employees to learn job-related knowledge, skills, and behaviour • Development involves acquiring knowledge, skills, and behaviours that improve employees’ ability to meet the challenges of new or existing jobs 5. Performance Management • Performance management is the process of ensuring that employees’ activities and outputs match the organization’s goals Steen, HRM 6ce © McGraw Hill, 2023 IM 1-3

6. Total Rewards • Planning pay and benefits involves many decisions including understanding legal requirements; administering pay and benefits requires systems and extensive record-keeping and reporting; and ensuring compliance with laws 7. Maintaining Positive Employee and Labour Relations • Provide for satisfying and engaging work environments and maintaining positive relations with employees and positive labour relations 8. Establishing and Administering Human Resource Policies • HR helps establish policies to provide for fair and consistent decisions 9. Managing and Using Human Resource Data • People (human capital) analytics—use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals 10. Ensuring Compliance with Federal/Provincial/Territorial Legislation

WHAT ARE THE RESPONSIBILITIES OF SUPERVISORS AND MANAGERS? Reference Figure 1.3 Many organizations have HR departments with specialists that develop effective HR practices, however implementing these practices resides with the organization’s supervisors and managers • Help define jobs e.g., what kind of work needs to be done • Forecast HR needs • Interview and select candidates • Train, coach, and develop employees—some or all parts of the job • Set goals, provide performance feedback, and appraise performance • Recommend pay increases and promotions • Communicate policies and comply with legal requirements • Provide motivational environment

FOCUS ON HR STRATEGY The strategic role for HRM has evolved gradually Environmental, Social, and Corporate Governance (ESG) Refer to Table 1.3 Steen, HRM 6ce © McGraw Hill, 2023 IM 1-4

• Sustainability—an organization’s ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community • Stakeholders— the parties with an interest in the company’s success (typically, shareholders, the community, customers, and employees) • ESG refers to a “collection of corporate performance evaluation criteria that assesses the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts.”

• HR professionals can support organizations to enhance ESG performance through policies, practices, and systems 1. Evidence-based HRM • Demonstrating that human resource practices have a positive influence on the company’s profits or key stakeholders • Relies on the use of HRM analytics to analyze data 2. Organization Agility and Change Management • Refers to the ability of a firm to sense and respond to the environment by intentionally changing 3. Productivity improvement • Companies need to enhance productivity to compete in a global economy • Productivity—the relationship between an organization’s outputs (products, information or services) and its inputs (e.g., people, facilities, equipment, data, and materials) 4. Mergers and acquisitions • HRM should have a significant role 5. Non-traditional employment and the gig economy • Non-traditional employment—use of independent contractors, freelancers, on-call workers, temporary workers, and contract workers • Companies that rely primarily on non-traditional employment to meet service and product demands are competing in the gig economy 6. Outsourcing • Outsourcing is the practice of having another company (a vendor third-party provider, or consultant) provide services 7. Expanding into global markets • Global expansion can present challenges for HRM – learning about the cultural differences that shape the expectations and behaviours of employees in other parts of the world • Offshoring—moving operations from the country where a company is headquartered to a country where pay rates are lower, but the necessary skills are available • Expatriates are employees who take assignments in other countries • Reference Figure 1.4 – Immigration addresses labour shortage Steen, HRM 6ce © McGraw Hill, 2023 IM 1-5

8. High performance work systems • An organization in which technology, organizational structure, people, and processes all work seamlessly to provide competitive advantage • High-performance work systems have the best possible fit between their social system (employees and how they interact) and technical system (equipment and processes) • Maintaining a high-performance work system may include development of training programs, recruitment of people with new skill sets, and establishment of rewards for behaviours such as teamwork, flexibility, and learning

HR FUNCTIONAL COMPETENCIES • With such varied responsibilities, human resources professionals need to bring together a large pool of competencies. The Human Resources Professionals Association’s (HRPA) Professional Competency Framework consists of nine functional areas, groupings, and underlying competencies as shown in Figure 1.5 • CPHR (Chartered Professional in Human Resources) is the designation that recognizes achievement and capability for HR professionals in all provinces and territories, except Ontario -- National Knowledge Exam (NKE) tests HR knowledge, professional experience (3+ years), bachelor’s degree, and membership in a professional HR Association is required -- CPHR Canada represents members in 9 provinces and 3 territories

CAREERS IN HUMAN RESOURCE MANAGEMENT • Some HRM positions are specialists e.g., recruiting, training, etc., however other positions are generalists who perform a full range of HRM functions • Reference Figure 1.7 for selected HRM positions and median salaries and bonuses. The salaries vary according to education and experience, as well as the type of industry in which the person works • HRPA (Ontario) works independently and has a tiered certification framework that includes an entry level designation—CHRP (Certified Human Resources Professional); professional designation—CHRL (Certified Human Resources Leader) and executive designation—CHRE (Certified Human Resources Executive) • Reference Table 1.4 for designations by province and territory including their relevant HR Professional Association.

• Developments are underway across Canada to move the HR profession from an unregulated profession to a self-regulated profession

ETHICS IN HRM • Ethics refers to the fundamental principles of right and wrong—ethical behaviour is consistent with those principles • CPHR Canada’s Code of Ethics requires duties to: Steen, HRM 6ce © McGraw Hill, 2023 IM 1-6

-- Public: Members have a duty to discharge all their Professional responsibilities honourably, competently, and with integrity -- Profession: Members have a duty to protect and promote the profession and to cooperate with their Association -- Clients & Employers: Members have a duty to act in the best interest of their clients and employers -- Individuals: Members must always act in a manner that advances the principles of health and safety, human rights, equity, dignity, and overall well-being in the workplace

HOW IS THE LABOUR FORCE CHANGING? • Aging of the workforce - Canada’s labour force is aging quickly and there is a widening gap between the number of younger people entering the labour force and the number of people preparing to exit the labour market • Multi-generational workforce - because employees are working longer, the workforce now has five generations, each one with unique characteristics as well as similarities • Diverse workforce - Immigration is an important force in population and labour force growth and diversity • Shift to knowledge workers - employees whose main contribution to the company is specialized knowledge such as knowledge of customers, a process, or a profession • Increasing levels of education – educational attainment of Canada’s labour force is increasing (more than 1 in 3 people have a university degree or higher)

TECHNOLOGICAL CHANGE IMPACTING HRM 1. Human Resources Information Systems (HRIS) • Computer systems used to acquire, store, analyse, retrieve, and distribute information related to an organization’s human resources i.e., supports decision making; provides data for evaluating programs 2. Analytics and AI in HRM • Evidence-based HRM has been called a “game changer for the future of HR” • Potential is great for HR analytics to help improve HR decisions • Artificial intelligence - technology that simulates human thinking. It works through queries that allow it to learn from data over time to identify trends and patterns (predictive capacity); Wearables are also being used for applications including training and performance support 3. Sharing of Human Resource Information • Use technology to help automate much of the work in managing employee records • Employee self-service - giving employees access to information and enrolment for training, benefits, and other programs • Mobile devices—increasingly being used to provide employees with anytime and anywhere access to HR processes and other work-related information Steen, HRM 6ce © McGraw Hill, 2023 IM 1-7

• Management self-service – giving managers the ability to go online to authorize pay increases, approve expenses, and transfer employees to new positions

Summary • Define human resource management and explain how HRM contributes to organizational performance • Describe how human resource management supports and shapes organizational strategy.

• Summarize competencies, careers, and ethics in human resource management.

• Describe trends in the labour force composition and how they affect human resource management.

• Discuss how technological developments are impacting human resource management.

Critical Thinking Questions 1.

Does the “people side of the business” interest you? Why or why not? (LO1) Answer: Student responses will vary about their interest in the “people side of the business”.

Look for demonstration of the students’ application and connection of concepts cover in this chapter such as HR careers, roles, and responsibilities.

2.

Consider a job that you have (or had). How would you rate your employee experience? What were the key moments that contributed to how you rated your employee experience? Which HR activities related to these key moments? (LO1) Answer: Student responses will vary. Look for demonstration of students’ understanding of the chapter concepts including connections to HR professionals, managers, and people process that shape employees’ perceptions about their experience at work (e.g., recruitment and selection, training and development, performance management, and total rewards).

3.

Why do all managers and supervisors need knowledge and skills related to human resource management? (LO1) Answer: Although many organizations have human resource departments, non-HR managers and supervisors must be familiar with the basics of HRM and their own role regarding managing human resources. Supervisors and managers typically have responsibilities related to all HR functions. Supervisors and managers help analyze work, interview job candidates, participate in selection decisions, provide training, conduct performance appraisals, and recommend pay Steen, HRM 6ce © McGraw Hill, 2023 IM 1-8

increases. On a day-by-day basis, supervisors represent the company to their employees, so they also play an important role in employee relations.

4.

How can evidenced-based HRM support and shape organizational strategy? (LO2) Answer: Evidence-based HRM can be used to demonstrate the impact HR practices have on business strategy and performance. HR analytics involves using quantitative and scientific methods to analyze data to understand the role of talent in executing the business strategy and achieving business goals. Information can be used to create insights and make people-related decisions that help drive organizational effectiveness, providing a competitive advantage.

5.

What should an HR department consider besides cost savings when evaluating the use of HR analytics? (LO2) Answer: HR should consider how the use of the information can help the organization perform better. Understanding how the data can be used to support organizational practices will help HR be viewed as a strategic partner. HR should not only focus on the present but also on the future company goals.

6.

To what extent do you think employers are responsible for the well-being of their employees? (LO3) Answer: Business decisions, including HRM decisions, need to be ethical, and many executives and others see treatment of employees as a top concern. Organizations depend on HR professionals to help them identify and carry out many of the responsibilities to provide satisfying and engaging work environments and maintaining positive relations with employees. To benefit from the full capacity and potential of their workforce, organizations need to pay attention to the workplace factors that support employee well-being.

7.

What competencies are important for success in human resource management? Which of these competencies are already your strengths? Which would you like to develop further? (LO3) Answer: The HRPA’s professional competency framework (Figure 1.4) and the supporting textbook descriptions provide a useful framework for a focused discussion. The student responses will vary as to which skills are their current strengths and which skills they would like to develop.

8.

How does being/becoming a self-regulated profession impact HR professionals? The general public? (LO3) Answer: In Ontario, Quebec, and Saskatchewan, HR Professionals have been granted the status of being a self-regulated profession. HR associations in these provinces are required to serve are regulatory Steen, HRM 6ce © McGraw Hill, 2023 IM 1-9

bodies for the profession. For example, Ontario is governed by the Registered Human Resources Professional Act, 2013. Being regulated means the HR association enters into an agreement with government to protect the public interest by ensuring HR professionals have and maintain the highest standards of professional practice and ethical conduct.

9.

How does each of the following labour force trends affect HRM? (LO4) a. Aging of the workforce b. Diversity c. Shift to knowledge workers d. Increasing levels of education of the workforce Answer: An organization’s internal labour force comes from its external labour market— individuals who are actively seeking employment. In Canada, this labour market is aging and becoming more diverse. a. Organizations will need to address issues such as career plateauing, retirement planning, retraining, and controlling health benefit costs as well as consider how to be flexible enough to meet the needs of older workers, who may wish to defer retirement, reduce work hours, or begin work again after an initial retirement. b. Organizations recruit from a diverse population which requires establishing bias-free HR systems and supporting employees to understand and appreciate cultural differences. In addition, organizations need to consider how to be authentically inclusive to engage the full potential of the workforce’s innovative and creative capacity. c. Organizations also need employees with skills in decision making, customer service, and teamwork, as well as technical skills. The competition for such talent is intense. d. Organizations will need to provide meaningful work and ongoing opportunities for learning and development to meet expectations of a workforce with higher levels of education.

10.

Which technological development in HR did you find most interesting or thought provoking? What are you still curious about? (LO5) Answer: Student responses will vary. Look for connection and understanding of concepts related to advances in technology that have impacted the way information is being used in HR. Concepts central to this discussion include: HRIS, cloud computing, analytics, artificial intelligence (assisted intelligence, augmented intelligence, and autonomous intelligence).

11.

How could developments in HR technology make a company a better place to work? (LO5)

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Answer: Technology is changing the way we play, shop, communicate, live, and work as well as the way HRM is practiced. Student responses will vary but should demonstrate connection to the three product lines of HR (administrative services and transactions; business partner services; and strategic partner) in the context of the various technologies discussed in the chapter e.g., social networking, artificial intelligence, robotics, etc. Alternatively, students can be encouraged to explore and examine how the various technologies discussed in the chapter could be applied to each of the HR functions to enhance efficiency and/or effectiveness.

CASE STUDY: EVIDENCE-BASED HRM QUANTIFYING THE EXPLOYEE EXPERIENCE Case Summary: This case discusses how IBM is using extensive research to understand, enhance, and measure employee experience and how enhanced employee experience translates to organizational profitability.

Answers to Questions: 1.

What is your reaction to IBM’s approach to “co-creating the employee experience” by bringing employees into the design process for HR programs?

IBM’s approach illustrates chapter concepts including evidence-based HRM, the use of big data, and how enhancing employee experience through effective HR practices results in quantifiable desired organizational outcomes, including increased profitability. It will be helpful to encourage students to consider how creating a positive employee experience connects to employee engagement and commitment. Bringing employees directly into the design process for HR programs is likely to strengthen employee engagement and commitment to the organization and HR practices. Students’ discussion about the value of personalizing employee experience and measuring employee experience using net promoter score is also likely to facilitate a stimulating conversation relatable to other disciplines as well e.g., marketing (customer experience).

2.

How could smaller organizations adapt IBM’s approach to evidence-based HRM to support strategy and decision making?

Responses will vary, but instructors should be sure to help students first understand that although HR responsibilities will vary among larger and smaller organizations, creating a positive employee experience is equally relevant to achieving desired and measurable organizational outcomes—even if the data available data for analysis is “small” rather than “big.”

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CASE STORY: EYE ON TECHNOLOGY AT MERK, ANALYTIC SKILLS HAVE A MEASURABLE IMPACT Case Summary: This case discusses how Merk implemented a people analytics platform to better serve the company’s strategic needs. The case explains how the People Analytics and Strategic Workforce Planning Group collected all key employee- and job-related data into a new analytics platform that provides future modelling scenarios and statical analysis capabilities to help improve and streamline human resources information.

Answers to Questions: 1.

What categories of competencies can you find described in this story? Suppose the HR department had brought in HR analytics experts whose other competencies (i.e., outside of critical evaluation) were just average. How would that staffing approach have affected the introduction and use of the data analytics platform at Merck?

Core competencies include HR expertise (the HR professionals are charged with understanding the business issues that managers can benefit from investigating), relationship management, consultation (they consulted with business managers), communication, and global and cultural effectiveness (to get the global company working on the same page).

If the experts did not have competencies in relationship management and consultation, they might not have gathered the right data or been able to use it effectively to make any positive change within the company.

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2.

When the stakes for employee performance are so high (for example, at a company like Merck that develops and manufactures life-saving and life-enhancing medicines), how might HR analytics provide insights valuable to understanding and predicting employee performance and retention?

Data could be analyzed to investigate any changes in employee performance and retention. HR can use this data to develop further insights and help make recommendations to support HR practices

RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 1: HRM Srategy See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

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Chapter 2: The Legal Context for HRM and Creating Safe and Healthy Workplaces Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Explain the legal framework for human resource management in Canada.

LO2: Discuss major areas of employment legislation with a focus on equity and fairness in the workplace.

LO3: Examine the overall context for workplace health and safety, including legislation, rights and duties, organizational requirements, and implications.

LO4: Describe current and emerging workplace health and safety issues, and types of workplace programs used to support an organization’s commitment to safe operations.

INTRODUCTION: L’Oreal Canada: EDGEplus Certificate for Equity and Inclusion • One of Canada’s first employer to recognized with EDGEplus Gender & Intersectional Equity certification for its commitment to “measure, accelerate, and progress on issues pertaining to gender identity, ethnic origins, LGBTQIA2S+, and working with disability status.”

THE LEGAL FRAMEWORK FOR HRM In Canada, the federal, provincial, and territorial governments have set some limits on how HRM can be practised • Requirements intended to foster fairness in hiring and employment practices and protect the health and safety of workers • Can gain competitive advantage over competitors by linking to business goals and going beyond just legal compliance Federal, provincial, and territorial employment-related laws tend to be similar, however, there are some differences among jurisdictions • Approximately 6% of Canadian workers are covered federally --e.g., Federal government departments, agencies, and most federal crown corporations; banks; air transportation; marine shipping, ferry, and port services; radio and television broadcasting; telecommunications; railways; many First Nation activities; grain elevators, feed, and seed mills; uranium mining and processing, etc.

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• Approximately 94% of employers/employees are covered by provincial/territorial legislation -- All other businesses e.g., retail and hospitality businesses; hospitals; health care providers; schools, colleges, and universities; and most manufacturers

VALUING DIVERSITY, EQUITY, INCLUSION, AND BELONGING • Canada is a diverse nation and becoming more so. Also, many Canadian companies have customers and operations in more than one country • A diverse workforce provides a competitive advantage that brings a wider pool of talent and greater insight into the needs and behaviours of diverse customers • Diversity—having people of different backgrounds and experience represented in the workplace.

Can be calculated and tracked • Equity – involves “achieving parity in policy, process, and outcomes” i.e., accounts for diversity • Inclusion—a sense of belonging and feeling respected, valued, and seen as individuals • Behaviour i.e., the “how” that creates the environment people experience

MOVING DEIB FORWARD WITH ALLIES AND ALLYSHIP • • • •

HR has a significant role in ensuring the employer’s policies, practices, and systems are inclusive Allies and allyship may hold the keys to moving DEIB forward in the workplace Allies -- “is any person who actively promotes and aspires to advance the culture of inclusion to create affirming and welcoming environments for everyone.”

Allyship promoting equity, fairness, and inclusion in the workplace through relationships and public acts of sponsorship and advocacy

DEIB MERTICS Outcomes Metrics: Create a baseline to measure progress and can signal potential indications of bias • How many people from the Employment Equity groups receive a job interview?

• How many are employed with the organization? What positions do they hold?

Process Metrics: • Identify problems with HR process such as recruitment, selection, performance management, and career development

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CREATING A CULTURE OF HEALTH & SAFETY • •

Organizations are increasingly taking a strategic approach to occupational health and safety Benefits of adopting a values-based commitment to safe operations --e.g., costs savings by reducing worker injuries, fatalities, occupational disease, and property damage; improved employee relations; reliability; and productivity

PROTECTING HUMAN RIGHTS AT WORK All jurisdictions have human rights legislation—purpose is to remove discrimination • Discrimination—treating someone differently, negatively, or adversely because of their race, age, religion, sex, or other prohibited ground • Direct discrimination—Policies or practices that clearly make a distinction on the basis of a prohibited ground i.e., race, national or ethnic origin, colour, religion or creed, age, sex, sexual orientation, etc.

• Indirect discrimination—Policies or practices that appear to be neutral but have an adverse effect on the basis of a prohibited ground -- e.g., a company with a policy of not employing part-time employees appears to have a policy that can be equally applied to all applicants and existing employees. However, the effect of this policy is not neutral—someone with family responsibilities would be denied employment or denied the opportunity to reduce their work hours

PROHIBITED GROUNDS OF DISCRIMINATION Prohibited grounds of discrimination in employment: Partial list • Race; Colour; National or ethnic origin; Religion or creed; Age; Sex (gender, pregnancy, gender identity, gender expression); Sexual orientation; Marital Status; Family Status; Disability (physical or mental); Pardoned conviction

HOW WOULD YOU KNOW? Often management depends on HR expertise to help in identifying how to comply with legal requirements • Differential treatment: —differing treatment of individuals where the differences are based on a prohibited ground • Bona fide occupational requirement (BFOR): -- Legal form of differential treatment/discrimination -- A necessary (not merely preferred) requirement for performing a job -- Employer has the responsibility to prove that a BFOR exists -- Mandatory retirement has become discriminatory unless a BFOR exists • The duty to accommodate: Steen, HRM 6ce © McGraw Hill, 2023 IM 1-16

-- An employer’s duty to consider how an employee’s characteristic e.g., disability can be accommodated—extends to the point of undue hardship -- May involve restructuring jobs, ensuring workplace facilities are accessible, modifying equipment, self-accommodation (e.g., service dog)

WHAT ABOUT HARASSMENT? Human rights legislation prohibits all forms of harassment • Harassment—a form of discrimination that involves any unwanted physical or verbal behaviour that offends or humiliates you • Sexual harassment—any conduct, comment, gesture, or contact of a sexual nature that is likely to cause offence or humiliation to any employee; or that might, on reasonable grounds, be perceived by that employee as placing a condition of a sexual nature on employment or on any opportunity for training or promotion. Media spotlight (#MeToo) has created a catalyst for examining organizational culture and practices --Quid pro quo harassment refers to conduct, comments, gestures or contact of a sexual nature that they perceived as placing a condition of a sexual nature on their employment -- Hostile (poisoned) work environment is more prevalent e.g., making sexual jokes, unwanted touching, questions, or discussion about sexual activities, spreading sexual rumours, leering, displaying, or circulating sexual pictures or cartoon, etc.

EMPLOYMENT EQUITY GROUPS • Women • Members of visible minorities—person other than an Aboriginal person who is non-white in colour/race, regardless of place of birth • Aboriginal peoples—an Aboriginal person is a North American Indian or a member of a First Nation, Métis, or Inuit • Persons with disabilities—person who has a long-term or recurring physical, mental, sensory, psychiatric, or learning impairment

WHAT OTHER PROTECTIONS? • Protection of Privacy --PIPEDA (Personal Information and Electronic Documents Act) is a federal law that sets out ground rules for how private sector organizations may collect, use or disclose personal information.

-- Establishes standards for privacy that have implications for HRM including responsibility to safeguard employee information • Employment/Labour Standards Federal, provincial, and territorial laws are in place to provide minimum standards for employees Steen, HRM 6ce © McGraw Hill, 2023 IM 1-17

-- e.g., Minimum wage, overtime pay, hours of work and work scheduling, general holidays, annual vacations, parental leave, etc.

•

Pay Equity Provides for equal pay for work of equal value i.e., men and women doing work of equal value must be paid the same Attempts to address the wage gap—the difference between the earnings of women working full-time versus the earnings of men working full-time

HOW ARE THE LAWS ENFORCED? 1. Human Rights Commissions The federal government, provinces, and territories have Human Rights Commissions to provide oversight and enforce laws Have the power to receive and address Human Rights complaints 2. Privacy Commissioners Ensures compliance with relevant legislation e.g., Office of the Privacy Commissioner of Canada; Office of the Privacy Commissioner of Alberta -- Establish guidelines for emerging issues e.g., “Guidelines for Social Media Background Checks” 3. Employment/Labour Standards Offices Officers hear complaints, conduct investigations, and make actionable rulings

WORKPLACE HEALTH & SAFETY Occupational Health & Safety Act - Each of the jurisdictions in Canada, federal, and each of the provinces and territories have their own occupational health and safety legislation.

WHMIS – Workplace Hazardous Materials Information System Canada’s national hazard communication program consisting of symbols and warnings—WHMIS 2015 incorporated the Globally Harmonized System of Classification and Labelling of Chemicals Safety data sheets (SDSs)--detailed hazard information concerning a controlled (hazardous) product Workplace Fatalities and Injuries Legislation has been successful in raising awareness, and workplace fatalities has generally trended lower since 2005, however, there were still 925 workplace fatalities in 2019 (Figure. 2.6). There has been a significant reduction in time-loss injuries in recent years. (Figure. 2.7)

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Increasingly organizations are approaching occupational health and safety with a values-based commitment to safe operations to protect people: • Internal Responsibility System Philosophy whereby employers and employees share responsibility for creating and maintaining safe and healthy work environments • Health and Safety Committee --A key feature of the internal responsibility system -- A committee jointly appointed by the employer and employees at large (or union) to address health and safety issues in a workplace • Employers, managers, and supervisors have a duty to provide a safe workplace—examples include: -- Establish and maintain a health and safety committee -- Take every reasonable precaution to ensure the workplace is safe -- Train employees about any potential hazards; how to deal with hazardous substances, and how to handle emergencies -- Supply personal protective equipment and ensure workers know how to use the equipment -- Immediately report all critical injuries -- Appoint competent supervisors who set standards and ensure safe working conditions are observed

EMPLOYEE RIGHTS AND RESPONSIBILITIES Three key employee rights and responsibilities: • The right to refuse—unsafe work • The right to participate—in workplace health and safety activities through a health and safety committee or as a representative • The right to know—or the right to be informed about actual and potential dangers in the workplace Employees also have responsibilities: • Working in compliance with OH&S acts and regulations • Using personal protective equipment and clothing as directed by the employer • Reporting workplace hazards and dangers • Working in a manner as required by the employer

ENFORCEMENT OF OCCUPATIONAL HEALTH & SAFETY REGULATIONS Enforcement responsibilities exist within the federal, provincial, and territorial governments Occupational Health and Safety Officers/Inspectors Bill C-45 (Westray Bill)—amendment to the Criminal Code (named after the Nova Scotia mining disaster) making organizations and anyone who directs the works of others criminally liable for safety offences (maximum conviction includes life imprisonment for failing to provide for workplace health and safety) Steen, HRM 6ce © McGraw Hill, 2023 IM 1-19

CURRENT WORKPLACE HEALTH & SAFETY ISSUES Psychological health and safety • Has more recently become a significant focus • Human rights legislation prohibits behaviours such as harassment • Workplace violence is a broad problem --Is a particular problem for certain occupational groups e.g., health care workers, correctional officers, social service employees, teachers, retail employees, EMS workers --includes threatening behaviour, verbal or written threats, verbal abuse, and physical attack Use of mobile devices • Distractions and hazards include driving and other sensitive-safety tasks Worker fatigue • According to a recent Canadian report, organizations are encouraged to think about the safety risks of fatigue e.g., annual injury rates for workers who got less than 5 hours of sleep were almost 4 times higher than workers who got 7.0–7.9 hours of sleep Legalization of cannabis for recreational use • Canada is the first G7 country to legalize and regulate recreational cannabis on a national scale Conference Board of Canada reports that workplace safety and impairment or intoxication at work are top concerns

HEALTH AND SAFETY TOOLS AND PRACTICES 1. Identifying and Communicating Job Hazards • Job hazard analysis technique --Safety promotion technique that breaks down a job into elements, then rates each element for its potential for harm or injury • Technic of operations review (TOR) --Method of promoting safety by determining which specific element of a job lead to a past accident • Various groups have risks -- New and younger workers vulnerable to injuries -- Shift workers (e.g., nurses) at greater risk for obesity and diabetes -- Experienced workers may become complacent 2. Reinforcing Safe Practices • Safety incentive program to reward workers for supporting safety goals • May focus on specific jobs or types of injuries 3. Employee Health & Wellness Programs • A set of communications, activities, and facilities designed to change health-related behaviours in ways that reduce health risks Steen, HRM 6ce © McGraw Hill, 2023 IM 1-20

• Aim at reducing health risks e.g., high blood pressure, smoking, obesity—by encouraging preventive measures such as exercise and good nutrition 4. Employee Assistance Programs (EAPs) • Confidential, short term, counselling service for employees with personal problems that affect their work performance—may overlap with health and wellness, and lifestyle-related programs 5. Promoting Safety Globally • Organizations need to ensure safety of their employees wherever they are located • Employees may interpret policies differently because of cultural differences • Laws, enforcement practices, and political climates vary from country to country—many countries have standards that are far less strict than Canada

Summary • Explain the legal framework for human resource management in Canada.

• Discuss major areas of employment legislation with a focus on equity and fairness in the workplace.

• Examine the overall context for workplace health and safety, including legislation, rights and duties, organizational requirements, and implications.

• Describe current and emerging workplace health and safety issues, and types of workplace programs used to support an organization’s commitment to safe operations.

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Critical Thinking Questions 1. Some people say that Millennials and Generation Z are more likely than other generations to “notice the absence of inclusion than when it exists.” Millennials and Generation Z have also been credited as seeing inclusion as “more about varying ideas and workstyles than it is about skin colour, religion, or ethnicity.” Do you agree or disagree with these statements? Why or why not? (LO1) Answer: The responses provided will vary. However, all responses should indicate understanding of the concepts. Organizations recognized as one of “Canada’s Best Diversity Employers” may be more likely to attract and retain a diverse workforce. The variety of responses given by students should lead to a lively discussion about the form valuing diversity may take in an inclusive organization.

2. On the basis of your knowledge of diverse religious practices and/or beliefs, what types of accommodations should an employer be prepared to provide to create a more inclusive workplace? (LO1) Answer: The students’ responses will vary, however should reflect an understanding of the diversity of religious practices that may require accommodation in the workplace. Some examples include allowing head coverings such as scarves and kippahs to be worn in the workplace; and providing modified breaks, a private area for prayer, and/or flexible hours to accommodate religious observance. Employers may also accommodate employees’ religious practices by providing additional leave such as unpaid leave. Encourage students to share their knowledge of diverse religious practices and how an employer could provide accommodation.

3. What is your reaction to the #MeToo movement? Do you think it has reduced the stigma of reporting sexual harassment? Why or why not? (LO1) Answer: Student answers will vary but should demonstrate connection to chapter concepts and information provided including data about the prevalence of sexual harassment and the relatively low percentage of reporting sexual harassment (See Figure 2.3).

4. Research minimum wages across various jurisdictions in Canada; for example, Alberta, New Brunswick, Saskatchewan, and Ontario. What are your observations and conclusions about minimum wages and employer responses to recent changes? (LO2) Answer: Students should be encouraged to explore current minimum wage rates as well as any announced upcoming changes to minimum wage for the various jurisdictions. Students should also be encouraged to looks for news articles that discuss employer comments and/or actions about minimum wage increases.

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5. Do you think that employers violate current or prospective employees’ privacy rights when they use social media sites such as LinkedIn, Instagram, or Twitter to conduct informal background checks on employees or job candidates? Why or why not? (LO2) Answer: The responses given should provide for in-depth discussion among the students about their expectations of privacy when using social media. Consider presenting this question as a debate in the class.

6. Have you ever experienced harassment at work or been injured on the job? What happened? What was the short- and long-term impact on you? (LO2) Answer: The responses provided by the students will vary contingent upon their experiences and perceptions. Instructors may engage students in a general discussion about the short- and longterm impacts of harassment or on the job injury.

7. What are jobs that you consider particularly hazardous? What types of hazards and hazardous activities might workers experience in these jobs? What is your advice to reduce or eliminate the hazards and hazardous activities identified? (LO3) Answer: Student answers will vary but should demonstrate connection to chapter concepts.

8. Why do you think young and new workers are more likely to be injured on the job? (LO3) Answer: Student responses will vary but are likely to reflect a variety of potential reasons including inexperience and/or lack of knowledge about hazards associated with the job, and greater willingness to follow a boss’s instructions without question. Responses may also reflect positive qualities of younger employees such as eagerness and enthusiasm to complete job requirements in the fastest way possible. Reference the “Did You Know” feature: Young and New Workers Have Higher Rates of Injury may serve as a helpful starting point for the discussion.

9. Do you think that fatigue is a form of impairment? Why or why not? What should organizations do about worker fatigue to protect all stakeholders; e.g., employees, customers, contractors, and the general public? (LO4) Answer: The student responses given for this question will vary. However, all answers provided should demonstrate the individual student’s understanding of the chapter concepts and data provided e.g., prevalence of fatigue and correlation of hours of sleep and annual injury rates.

10. For each of the following occupations, identify at least one possible hazard and at least one action employees could take to minimize the risk of any injury or illness related to that hazard. (LO4) 1.

Server in a restaurant 2.

Warehouse worker 3.

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4.

Employee in a personal care home

Answer: The student responses given for this question will vary. However, all answers provided should demonstrate the individual student’s understanding of the chapter concepts.

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CASE STUDY: EVIDENCE-BASED HRM SODEXO EXAMINES THE IMPACT OF GENDER-BALANCED LEADERSHIP ON PERFORMANCE Case Summary: This case examines research conducted by Sodexo, a global food services and facilities management company, about the organizational outcomes associated with gender-balanced leadership teams.

Answers to Questions: 1. What is your reaction to Sodexo’s goal that by 2025 at least 40 percent of senior global leaders will be women? What could go wrong? What must go right?

The student responses given for this question will vary. However, all answers provided should demonstrate the individual student’s understanding of the chapter concepts.

2. Why do you think Sodexo teams with gender-balanced leadership have achieve higher levels of performance than teams that do not have gender-balanced leadership?

Student answers will vary but should result in a thoughtful discussion that connects to chapter concepts.

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CASE STORY: EYE ON TECHNOLOGY SUNCOR ENERGY CEO: “I OWN THIS” Case Summary This case discusses how Suncor Energy implemented a new technology to help make the company safer.

Answers to Questions: 1. What technologies discussed in this chapter may be useful to making mine sites safer? Could any of these technologies create potential privacy issues?

The case provides information about a new technology that is used globally in mining that will detect and manage fatigue and avoid collisions. Students may be asked to debate potential privacy issues of using technology in this case.

2. Should employees be concerned when technologies that protect their safety result in a loss of privacy? In your opinion, do the benefits (of improved safety) outweigh the risks (of reduced privacy)?

Student answers will vary but should result in a thoughtful discussion that connects to chapter concepts. Students can debate to explore different viewpoints.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 2: Thinking Indigenously See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 3: Analyzing Work and Designing Jobs Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Summarize the elements of workflow analysis and how work relates to an organization’s structure.

LO2: Discuss the significance of job analysis and the elements of a job analysis.

LO3: Explain how to obtain information for a job analysis and the recent trends in job analysis.

LO4: Identify the different approaches to job design.

INTRODUCTION: Walmart Leading the Way Through Robot Technology • Walmart’s automated fulfillment systems has helped the company stay competitive • Collaborative robot technology (Cobot) has helped improve efficiency of work, adding new opportunities for workers • Some employee jobs now depend on higher-level skills, including how to use the computer interface

WORK FLOW IN ORGANIZATIONS Informed decisions about jobs take place in the context of the organization’s overall work flow • Work flow design—The process of analyzing the tasks necessary for the production of a product or service Steen, HRM 6ce © McGraw Hill, 2023 IM 1-27

• Job—a set of related duties • Position—the set of duties (job) performed by a particular person 1. Work Flow Analysis • Before designing work flow, the organization’s planners need to analyze what work needs to be done • Developing a Work Flow Activity Analysis (Refer to Figure 3.1) -- Outputs—products of any work unit including quality standards -- Work processes—activities that members of a work unit engage in to produce a given output.

This knowledge can guide staffing changes when work is automated, outsourced, or restructured -- Inputs—the final stage in work flow analysis is to identify the inputs used in the development of the work unit’s product e.g. raw inputs (materials and information); equipment, and human resources (knowledge, skills, and abilities and other characteristics)

2. Work Flow Design and an Organization’s Structure The organization’s structure brings together the people who must collaborate in order to produce the desired outputs efficiently: • Centralized—authority is concentrated in a few people at the top of the organization • Decentralized—authority is spread among many people

JOB ANALYSIS To achieve high-quality performance, organizations have to understand and match job requirements and people.

Job analysis is the process of getting detailed information about jobs. Analyzing jobs and understanding what is required to carry out a job provides essential knowledge for staffing, training, performance appraisal, and other HR activities

IMPORTANCE OF JOB ANALYSIS Job analysis is so important to HR managers that it has been called the building block of everything that HR does. Refer to Figure 3.2.

Almost every HRM program requires some type of information gleaned from job analysis: • Work redesign—often an organization seeks to redesign work to make it more efficient or to improve quality • Workforce planning—planners need information about the levels of skills required in various jobs • Talent acquisition—to identify the applicants most likely to be high performers, decision makers need to know what tasks, knowledge, skills, and abilities are required • Training, Learning, and Development—learning initiatives require knowledge of the tasks performed Steen, HRM 6ce © McGraw Hill, 2023 IM 1-28

• Performance management—job analysis helps in identifying the behaviours and results associated with effective performance • Career planning—matching an individual’s skills and aspirations with career opportunities requires knowing the skill requirements of various jobs • Job evaluation—to put value on jobs, it is necessary to get information about various jobs and compare them • Job analysis is also important from a legal standpoint—keeps focus on tasks and abilities to meet human rights and pay equity requirements

OUTCOMES OF JOB ANALYSIS 1. Job Description • List of the task, duties, and responsibilities (TDRs) that a job entails • Job Description for a Financial and Investment Analyst is shown in Figure 3.3 • When a new job is created, an organization needs to prepare a job description. Job descriptions should be reviewed periodically and updated when necessary.

2. Job Specification A list of the knowledge, skills, abilities, and other characteristics (KSAOs) that a jobholder must have to perform a particular job.

• Knowledge refers to factual or procedural information that is necessary for successfully performing a task • Skill is an individual’s level of proficiency at performing a particular task • Ability refers to a more general enduring capability that an individual possesses • Other characteristics could be personality traits such as persistence or motivation to achieve Job Description vs. Specification • A job description is a list of the tasks, duties, and responsibilities (TDRs) that a particular job entails and focuses on the activities involved in carrying out a job • In contrast, a job specification is a list of the KSAOs—characteristics of people. KSAOs are observable only when individuals are carrying out the TDRs of the job (and afterward through their work outcomes)

SOURCES OF JOB INFORMATION 1. Incumbents • People who currently hold the same position in the organization are logical sources of information because they are most acquainted with job details • May provide the most accurate estimates of the actual time spent performing job tasks • Drawback—incumbents may have an incentive to exaggerate what they do to appear more valuable to the organization Steen, HRM 6ce © McGraw Hill, 2023 IM 1-29

2. Observers • Information from incumbents should be supplemented with information from observers such as supervisors • Supervisors may be more accurate in reporting information about the importance of job duties 3. Government • The federal government provides information for analyzing jobs—National Occupational Classification (NOC) provides standardized sources of information about jobs in Canada’s labour market

JOB ANALYSIS METHODS 1. Position Analysis Questionnaire (PAQ) • One of the broadest and best-researched instruments for analyzing jobs • Contains 194 items that represent work behaviours, work conditions, and job characteristics that apply to a wide variety of jobs -- Information input—where/how a worker gets information to perform a job -- Mental processes—the reasoning, decision making, planning, and information processing activities involved in performing the job -- Work output—the physical activities, tools, and devices used -- Relationships with other persons—the relationships with other persons -- Job context—physical and social contexts where the work is performed -- Other characteristics—any other activities, etc. relevant to the job 2. Fleishman Job Analysis System • Provides a picture of the ability requirements required for performing the job being analyzed • Asks subject-matter experts, typically job incumbents, to evaluate a job in terms of the abilities required to perform the job • Survey is based on 52 categories of abilities, ranging from written comprehension to manual dexterity, stamina, originality, etc.

• The survey items are arranged into a 7-point scale for each ability activities, etc. relevant to the job 3. Analyzing Teamwork • Identify the best ways to handle interdependent jobs activities, etc. relevant to the job 4. Competency Models • Competency is an area of personal capability that enable employees to perform their work successfully Steen, HRM 6ce © McGraw Hill, 2023 IM 1-30

Trends in Job Analysis • Organizations appreciating the need to analyze jobs in the context of strategy, structure, and performance • Today’s workplace must be agile and adaptable—jobs may not be stable—need to change and evolve • Global competitive pressures and automation results in downsizing which changes the nature of jobs, not just their number • Analysis of work flows is becoming more relevant than traditional job analysis due to changes in the nature of work, project-based organizational structures, and the shift to an on-demand economy e.g. use of independent contractors

JOB DESIGN When an organization is growing or working to improve quality or efficiency, a review of work units/processes may require reviewing how jobs are designed Job Design • Process of defining the way work will be performed and the tasks that a job requires • Job redesign is a similar process that involves changing an existing job • To design jobs effectively a thorough understanding of the job (through job analysis) and its place in the larger work unit’s work flow process (through work flow analysis)

APPROACHES TO JOB DESIGN 1. Designing Efficient Jobs • Basis of classical industrial engineering—looks for the simplest way to structure work in order to maximize efficiency.

• Seeks the “one best way” to perform a job by performing time-and-motion studies. Benefits include lower costs and greater output per worker • A focus on efficiency alone can create jobs that are so simple and repetitive that workers get bored—may feel their work is meaningless • Most organizations combine industrial engineering with other approaches 2. Designing Jobs that Motivate • A pure focus on efficiency will not achieve human resource objectives • Job design should take into account factors that make jobs motivating to employees e.g., skill variety, task identity, task significance, autonomy, and feedback (Job Characteristics Model developed by Hackman and Oldham) Applications of the job characteristics approach: • Job enlargement—broadening the types of tasks performed • Job extension—enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks Steen, HRM 6ce © McGraw Hill, 2023 IM 1-31

• Job rotation—moving employees among several different jobs (common in production teams) • Job enrichment—engaging workers by adding more decision-making authority to their jobs (from the work of Frederick Herzberg) • Self-managing work teams—engage employees by designing work to be performed in teams with authority for an entire work process or segment • Flexible work arrangements --Flextime—scheduling policy in which full-time employees may choose starting and ending times within guidelines specified by the organization --Job sharing—work option in which two part-time employees carry out the tasks associated with a single position --Compressed workweek—schedule in which full-time workers complete their weekly hours in fewer than five days • Telework & remote work—broad term for a growing trend of doing one’s work away from a centrally-located office—also called telecommuting 3. Design for Physical Health & Well-Being • Ergonomics is the study of the interface between individual’s physiology and the characteristics of the physical work environment • Goal is to minimize physical strain on the worker by structuring the physical work environment around the way the human body works.

• Interventions focus on reducing physical demands, redesigning machines, and technology, and reducing repetitive strain injuries (RSIs) • Concerns about mobile devices, laptops, and touchscreens 4. Design for Mental Health & Well-Being • Cognitive ergonomics—recognizes that the mind has capabilities and limitations • In addition to hiring people with certain mental skills, design jobs in consideration of how the brain processes information—this provides valuable information to support employees’ mental health and well-being.

• Simplifying a job’s mental demands may include limiting the amount of information and memorization that the job requires, provide easy-to-understand gauges, and displays, as well as clear instructions. Often, employees try to simplify some of the mental demands of their own jobs e.g., creating checklists, charts, or other aids • In some cases, technology has increased demands—e.g., juggling information from several sources at once; distractions from devices • Recovery time may be significant e.g., 5 minutes after a 30 second pause to check social media

Summary • Summarize the elements of workflow analysis and how work relates to an organization’s structure.

• Discuss the significance of job analysis and the elements of a job analysis.

• Explain how to obtain information for a job analysis and the recent trends in job analysis.

• Identify the different approaches to job design.

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Critical Thinking Questions 11.

Assume you are the manager/owner of a local coffee house. What are the outputs of your work unit? What are the activities required to produce those outputs? What are the inputs? (LO1) Answer: Outputs of work include products, parts of products, and/or services. The expected responses from the students could include the variety of beverages and food offered at the restaurant as well as the services provided to the customers. Activities are the work processes that the members of a work unit engage in to produce the given output. The activities identified by the students could include: preparing food and beverages; and serving the individual customers, etc.

The inputs identified would include the materials, knowledge, equipment, and human skills needed to perform the work. The responses provided could include materials such as coffee, milk, pastries, the know-how to make the beverages and food, etc. The various student approaches and ideas given in response to this question should provide for lively discussion and in-depth thinking processes.

12.

Based on Question 1, consider the barista’s job at the local coffee house. What are the outputs, activities, and inputs for that job? (LO1) Answer: Student responses may vary. However, the responses provided should reflect understanding of the chapter material especially the outputs (in this case, high-quality beverages, positive customer experience); activities (such as explaining coffee beverage options and preparing them); and inputs (such as beverage supplies and the technical knowledge of operating the brewing equipment).

13.

Consider the “job” of university or college student. Perform a job analysis on this job. What tasks are required in the job? What knowledge, skills, abilities are necessary to perform those tasks?

Prepare a job description based on your analysis. (LO2) Steen, HRM 6ce © McGraw Hill, 2023 IM 1-33

Answer: The student responses to this question will vary. However, the responses provided should demonstrate understanding of the terms job analysis—the process of getting detailed information about jobs and job description—a list of the tasks, duties, and responsibilities that a job entails.

Some of the tasks identified by the students could include: taking notes, reading, typing, studying, etc. The knowledge, skills, abilities, and other characteristics necessary may include the ability to retain information, ability to study and learn new concepts, presentation skills, and having a curious mindset.

14.

Discuss how the following trends are changing the skill requirements for managerial jobs: (LO3) a. Increasing use of social media b. Increasing global competition c. Increased use of remote and hybrid work arrangements Answer: The responses provide by the students will vary contingent upon their personal viewpoints and understanding. The responses given should provide for in-depth discussion among the students. Some of the expected responses could include, respectively, (a) requires awareness and adaptability, (b) requires knowledge of various cultures and business practices, and (c) requires effective communication, collaboration, and feedback skills to help employees achieve high levels of performance and work-life balance.

15.

Suppose you have taken a job as a training and learning specialist in a financial institution that has created competency models for all its positions. How could the competency models help you implement training initiatives for employees? How could the competency models help you develop the financial institution’s employees? (LO3) Answer: Because competency models consider areas of personal capabilities that enable employees to perform their work successfully, they would allow the training and learning specialist to help employees develop particular skills for not only the job that they currently have, but for other jobs in the organization. This would contribute to the training and learning specialist’s success.

Competency models could provide a roadmap for employees to identify the types of competencies that they want to acquire and develop in order to successfully make lateral or upward career moves.

This could benefit everyone.

16.

Consider the job of a customer service representative for a telecommunications provider who handles calls from residential customers for billing inquiries and routine service requests. What measures can the employer take to design this job to make it efficient? What might be some drawbacks or challenges of designing this job for efficiency? (LO4) Answer: The responses provided will vary. However, all responses should indicate understanding of the concepts. The variety of responses given by the students should lead to a lively discussion on the subject matter.

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17.

How might the job in Question 6 be designed to make it more motivating? Would these considerations apply to the barista’s job in Question 2? (LO4) Answer: Responses provided will be contingent upon individual levels of understanding and viewpoints. However, responses should indicate that according to the Job Characteristics Model, jobs are more motivating if they have greater skill variety, task identity, task significance, autonomy, and feedback about performance effectiveness.

18.

What ergonomic considerations might apply to each of the following jobs? For each job, what kinds of costs would result from addressing ergonomics? What costs might result from failing to address ergonomics? (LO4) a. A computer programmer who works remotely from home three days each week b. UPS driver c. Registered nurse Answer: The individual responses will vary, but each response should demonstrate understanding of the concepts of ergonomics. The goal of ergonomics is to minimize physical strain on the worker by structuring the physical work environment around the way the human body works. Ergonomic design may involve modifying equipment to reduce the physical demands for performing certain jobs or redesigning the jobs themselves to reduce strain.

19.

What are the trade-offs between the different approaches to job design? Which approach do you think should be weighted more heavily when designing jobs? Why? (LO4) Answer: The available approaches emphasize different aspects of the job: the mechanics of doing a job efficiently, the job’s impact on motivation, and the job's impact on both the physical and mental health and well-being of the people performing the job. Although an efficiency focus is important, organizational success is also dependent upon skilled and talented workers that are more likely to be attracted to and stay with organizations that provide interesting and meaningful jobs and carefully consider their physical and mental well-being in carrying out job requirements. Responses to the weighting portion of the question will vary but are likely to reflect students’ work experiences.

20. Consider a job you hold now or have held recently. Would you want this job to be redesigned to place more emphasis on efficiency, motivation, physical health and well-being, or mental health and well-being? What changes would you want, and why? (Or why do you not want the job to be redesigned?) (LO4) Answer: The student responses given for this question will vary. However, all answers provided should demonstrate the individual student’s understanding of the chapter concepts.

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CASE STUDY: EVIDENCE-BASED HRM ANAYLTICS DRIVE SUCCESS AT UPS Case Summary: This vignette discusses UPS (United Parcel Service), which is famous for its brown-uniformed drivers behind the wheels of brown delivery trucks. The company is constantly looking at ways to become more efficient as a means to cost savings and reduce impact on the environment. Orion, is a system that uses analytics to gather, analyze, and apply data to reduce resources associated with every aspect of package handling at UPS.

Answers to Questions: 1. What benefits does UPS derive from using ORION to help it make drivers’ work more efficient?

The system leaves less up to chance and individual decision-making regarding routes and efficiency systems. Since the system can map out the most efficient routes, the drivers will no longer need to spend time determining routes, thus maximizing efficiency for UPS. 2. What challenges does the system pose for drivers and their managers?

Some drivers won’t like that a computer is scheduling their routes and that they have decreased flexibility in their work. The relationship between the drivers and managers may seem more like “big brother” and implies that managers don’t value drivers’ input and don’t trust them to do their job well. The key to successful implementation will be to explain the benefits of efficiency and that it is not about lack of trust while avoiding the perception that it minimizes autonomy and decisionmaking by the employee.

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CASE STORY: EYE ON TECHNOLOGY DATA LABELLING: THE REAL WORK BEHIND ARTIFICIAL INTELLIGENCE Case Summary: This case discusses the human work behind AI application known as data labelling. As described by the case, this work is often seen as boring, monotonous, and sometimes a toxic task. Concerns about employee boredom along with mental health issues are at the centre of this discussion.

Answers to Questions: 1. When it comes to the boring aspects of teaching an AI application its routine identification tasks, what can one do in the area of job design to enrich this work in order to make it more engaging?

Student responses should focus on the application of Job Characteristic Model concepts.

Opportunities for workers to have greater skill variety, task identify, task significance, autonomy, and feedback about performance should be considered. Student answers can also include discussions about job enlargement, extension, and rotation as other opportunities to engage employees.

2. When it comes to the toxic aspects of teaching an AI application how to identify graphic violence and/or pornography, how can an HR professional protect workers, and if necessary, redesign the work?

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recognize the potential impact to employee overall well-being. Chapter concepts about how to design jobs for mental health well-being can be applied in this case.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 3: Embracing the UNDRIP See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 4: Planning For and Recruiting Human Resources Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Discuss how to plan for the human resources needed to carry out the organization’s strategy.

LO2: Examine labour demand and supply, including methods organizations use to deal with a labour surplus or shortage.

LO3: Describe the importance of recruiting and various approaches to attract talent.

LO4: Compare and contrast recruitment sources.

LO5: Explain the recruiter’s role in the recruitment process, including limits and opportunities.

INTRODUCTION: Technology Shifts Amazon’s Recruitment • When the demand labour is intense, employers need to strategize how they can afford to meet their needs for talent • Amazon using technology to help recruit MBA candidates

WORKFORCE PLANNING: WHAT? WHY? & HOW? Trends and events that affect the economy create opportunities and problems in obtaining human resources • Workforce planning—identifying the numbers and types of employees the organization will require to meet its objectives • Organizations should carry out workforce planning to meet business objectives and gain an advantage over competitors—compares the present state of the organization with its goals for the future -- Organizations need a clear idea of the strengths and weaknesses of their existing internal labour force -- Organizations must also know what they want to be doing in the future i.e., size of the organization, products, and services to produce, etc.

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• Forecasting is the first step in workforce planning.

-- The HR professional attempts to determine the supply of and demand for various types of human resources -- The primary goal is to predict which areas of the organization will experience labour shortages or surpluses—can use statistical methods (capture historic demands in a company’s demand for labour) or subjective judgment (important source of ideas about the future because many important events in the labour market have no precedent)

THE PROCESS OF WORKFORCE PLANNING • Workforce planning compares the present state of the organization with its goals for the future, then identifies what changes it must make in its human resources to meet these goals • Reference Figure 4.1 Overview of the Workforce Planning Process -- Forecasting -- Goal setting and strategic planning -- Program implementation and evaluation

FORECASTING Forecasting labour demand—An organization forecasts demand for specific job categories or skill areas to answer the question: Will the need for people increase or decrease?

• Trend analysis—constructing and applying statistical models that predict labour demand for the next time period, given relatively objective statistics from the previous time period • Leading indicators—objective measures that predict future labour demand e.g., measures of the economy, actions of competitors, changes in technology, and trends in the composition of the workforce and population • Note: Statistical planning models are useful when there is a long stable history Forecasting labour supply—determining labour supply calls for a detailed analysis of how many people are currently in various job categories or have specific skills • The planner modifies the analysis to reflect anticipated changes expected in the near future as a result of retirements, promotions, transfers, voluntary turnover, and terminations • Transitional matrix—chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. Answers two questions: “Where did people who were in each job category go?” and “Where did people now in each job category come from?” (Table 4.1 is an example of a transitional matrix) • Besides looking at labour supply within the organization, the planner should examine trends in the external labour market Determining labour surplus or shortage—based on the forecasts for labour demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labour for each job category. Determining expected shortages and surpluses allows the organization to plan how to address these challenges Steen, HRM 6ce © McGraw Hill, 2023 IM 1-40

GOAL SETTING AND STRATEGIC PLANNING • The second step in workforce planning • The purpose of setting specific numerical goals is to focus attention on the problems and provide a basis for measuring the organization’s success in addressing labour shortages and surpluses • The goals should include a specific figure of what should happen with the job category/skill areas and creating a timetable • For each goal, the organization must choose one or more HR strategies

HR STRATEGIES FOR ADDRESSING A LABOUR SHORTAGE OR SURPLUS • Table 4.2 shows major options for reducing an expected labour surplus • Table 4.3 lists options for avoiding an expected labour shortage. Options differ widely in their speed of results, amount of suffering caused, and ability to change later • When choosing an HR strategy consider whether the needed employees will contribute directly to the organization’s success—benefit from hiring and retaining employees who provide a core competency.

REDUCING A SURPLUS 1. Downsizing—the planned elimination of large numbers of employees with the goal of enhancing the organization’s competitiveness. Four objectives include: reducing costs; replacing labour with technology; mergers and acquisitions; and moving to more economical locations • Much of the evidence suggests that downsizing hurts long-term organizational effectiveness • Why do so many downsizing efforts fail to meet expectations?

-- Initial cost savings but long-term effects are negative if not managed well -- Loss of talent -- Disrupts the social networks through which people are creative/flexible -- End up rehiring (often with people that were laid off) -- Survivors become self-absorbed and afraid to take risks -- Negative publicity associated with downsizing hurts the company’s image 2. Reducing hours—spreading burden more fairly by cutting work hours, usually with a corresponding reduction in pay 3. Early-retirement programs • Programs that encourage older workers to leave voluntarily by offering early-retirement incentives • Several forces are causing older workers to keep working including: Steen, HRM 6ce © McGraw Hill, 2023 IM 1-41

-- Improved health; decreased physical requirements of jobs; enjoyment of work -- Fears that pensions plans, CPP/OAS will not be adequate -- Elimination of mandatory retirement age • Phased-retirement programs—organization continues to benefit from the experience of older workers while reducing the numbers of hours

AVOIDING A SHORTAGE 1. Hiring Temporary Workers and Independent Contractors • Temporary employment is popular because it gives employers flexibility and often lowers costs— drawback is tension often exists between temporary and permanent employees 2. Outsourcing and Immigration • Outsourcing may reduce costs and improve efficiency, however quality, security, and/or customer service issues may arise • Immigration and employing foreign workers have increased dramatically in recent years 3. Overtime and Expanded Hours • Organizations facing a labour shortage may be reluctant to hire employees, even temporary ones, or to commit to an outsourcing arrangement--may choose to expand working hours and pay overtime to current employees

IMPLEMENTING AND EVALUATING THE WORKFORCE PLAN • The final stage of workforce planning involves implementing the strategies and evaluating the outcomes • The organization must hold some individual with the necessary authority and resources accountable for achieving the goals • Check whether the organization has avoided labour shortages or surpluses -- Evaluation should focus on measuring these numbers as well as which parts of the planning process contributed to success or failure

APPLYING WORKFORCE PLANNING TO EMPLOYMENT EQUITY • Many organizations have an HR strategy that includes employment equity to support diversity goals • Meeting employment equity goals requires that employers carry out an additional level of workforce planning. Employment equity programs forecast and monitor the proportion of employees who are members of the protected groups e.g., women and visible minorities -- Workforce utilization review—comparison of the proportion of employees who are in protected groups with the proportion that each group represents in the relevant labour market i.e., detect underutilization

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SUCCESSION PLANNING: A TYPE OF WORKFORCE PLANNING Succession planning is the process of identifying and tracking high-potential employees who will be able to fill top management positions or other key positions when they become vacant • Benefits -- Requires senior management to review the company’s leadership talent -- Provides a set of development experiences to ensure talent is ready -- Helps attract and retain talented employees • High-potential employees—employees the organization believes can succeed in higher-level business position e.g., general manager, director

RECRUITING HUMAN RESOURCES Recruiting is any activity carried on by the organization with the primary purpose of identifying and attracting potential employees. Recruiting creates a connection between workforce planning and the actual selection of new employees. Decisions are required in the following areas—these areas influence the nature of vacancies, the people who apply and their job choices: • Human resource policies --Affects the kinds of jobs offered • Recruitment sources --Affects who applies • Recruiter traits and behaviours --Influences recruitment outcomes

HUMAN RESOURCE POLICIES 1. Internal versus External Recruiting • Opportunities for advancement make a job more attractive to applicants and employees 2. Lead-the-Market Pay Strategies • Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to pay more than the current market wage for a job • May use bonuses, stock options, and other forms of pay besides wages and salaries 3. Employer Branding • Employer branding (also known as employment branding or recruitment branding) is a strategic approach of attaching a visual, emotional, or cultural brand to an organization. Employer branding uses marketing techniques to attract and retain employees in the effort to become an “employer of choice” e.g., “Canada’s Top 100 Employers • Employment brand is the impression the company makes on employees and job seekers—should be honest and paint a realistic picture of the company

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RECRUITMENT SOURCES Another critical element of an organization’s approach to talent acquisition is its decision about where to look for applicants—increasingly becoming a digital experience

INTERNAL SOURCES Employees who currently hold other positions in the organization Job posting --process of communicating information about a job vacancy through internal channels e.g. corporate intranet Advantages: • Generates applicants who are well-known to the organization • Applicants are relatively knowledgeable about the organization i.e., reduces likelihood of applicants having unrealistic expectations • Usually cheaper and faster than looking outside the organization • Enhanced employee morale

EXTERNAL SOURCES May have no internal recruits from which to draw e.g., for entry-level and specialized technical and professional positions Bring in new ideas or new ways of doing business and to attract a more diverse workforce 1. Direct Applicants and Referrals • Direct applicants—people who apply for a vacancy without prompting from the organization i.e., self-selection • Referrals—people who apply because someone in the organization prompted them to do so.

Some employers offer current employee’s financial incentives for referring applicants who are hired and perform acceptably on the job i.e., aided self-selection • Note: Sometimes referrals contribute to hiring practices that appear unfair e.g., nepotism— practice of hiring relatives. Also, referrals limit the likelihood of exposing the organization to fresh viewpoints because people tend to refer others who are like themselves • Passive job seekers—individuals who are not actively seeking a job represent a significant source of top talent 2. Digital Recruiting Strategies—generally involves posting information at company websites and social media platforms e.g., YouTube, LinkedIn, Instagram 3. Ads in Newspapers and Magazines—typically generate a less desirable group of applicants than direct applicants or referrals and do so at greater expense 4. Public Employment Agencies—clients include people looking for jobs and potential employers. Post job ads in Government of Canada’s Job Bank Steen, HRM 6ce © McGraw Hill, 2023 IM 1-44

5. Private Staffing Companies—provide assistance to employers in attracting quality temporary and permanent employees for a fee • Job seekers apply to the agency and are usually screened for suitability • Services are provided for a fee that is usually paid by the employer • Executive search firms (ESFs) provide a buffer and confidentiality between the employer and potential candidate 6. Universities and Colleges—on campus interviewing is the most important source of recruits for entrylevel professional and managerial vacancies • Cooperative education and internship programs give an organization early access to potential applicants and lets the organization assess their capabilities directly • Job fairs are another way to increase the employer’s presence on campus—provide one-on-one dialogue with potential recruits and/or provide detailed company information by displaying a QR (Quick Response) code

EVALUATING RECRUITMENT SOURCES Employers should monitor the quality of all recruitment sources: 1. Yield ratios --A ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next --A high yield ratio (large percentage) means the source is effective 2. Cost per hire --Divide the total cost of using a particular recruitment source by the number of people hired --A low cost per hire means that the recruitment source is efficient—it delivers qualified candidates at minimal cost

RECRUITER TRAITS AND BEHAVIOURS The third influence on recruitment outcomes is the recruiter i.e., characteristics and the way he or she behaves 1. Recruiter’s Functional Area & Traits • Organizations have to choose whether their recruiters are specialist in human resources or experts at particular jobs • Applicants tend to respond more positively to recruiters whom they perceive as warm and informative 2. Recruiter’s Realism • Important to provide the right kind of information—not too positive (or negative) • Realistic job previews—background information about a job’s positive and negative qualities.

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ENHANCING RECRUITER IMPACT Timely feedback-- applicants dislike delays Recruit in teams --e.g., include job incumbents and supervisors to enhance credibility

Summary • • • • •

Discuss how to plan for the human resources needed to carry out the organization’s strategy.

Examine labour demand and supply, including methods organizations use to deal with a labour surplus or shortage.

Describe the importance of recruiting and various approaches to attract talent.

Compare and contrast recruitment sources.

Explain the recruiter’s role in the recruitment process, including limits and opportunities.

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Critical Thinking Questions 21.

Assume you are the manager/owner of a local coffee house. What are the outputs of your work unit? What are the activities required to produce those outputs? What are the inputs? (LO1) Answer: Outputs of work include products, parts of products, and/or services. The expected responses from the students could include the variety of beverages and food offered at the restaurant as well as the services provided to the customers. Activities are the work processes that the members of a work unit engage in to produce the given output. The activities identified by the students could include: preparing food and beverages; and serving the individual customers, etc.

The inputs identified would include the materials, knowledge, equipment, and human skills needed to perform the work. The responses provided could include materials such as coffee, milk, pastries, the know-how to make the beverages and food, etc. The various student approaches and ideas given in response to this question should provide for lively discussion and in-depth thinking processes.

22.

Based on Question 1, consider the barista’s job at the local coffee house. What are the outputs, activities, and inputs for that job? (LO1) Answer: Student responses may vary. However, the responses provided should reflect understanding of the chapter material especially the outputs (in this case, high-quality beverages, positive customer experience); activities (such as explaining coffee beverage options and preparing them); and inputs (such as beverage supplies and the technical knowledge of operating the brewing equipment).

23.

Consider the “job” of university or college student. Perform a job analysis on this job. What tasks are required in the job? What knowledge, skills, abilities are necessary to perform those tasks?

Prepare a job description based on your analysis. (LO2) Answer: The student responses to this question will vary. However, the responses provided should demonstrate understanding of the terms job analysis—the process of getting detailed information about jobs and job description—a list of the tasks, duties, and responsibilities that a job entails.

Some of the tasks identified by the students could include: taking notes, reading, typing, studying, etc. The knowledge, skills, abilities, and other characteristics necessary may include the ability to retain information, ability to study and learn new concepts, presentation skills, and having a curious mindset.

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24.

Discuss how the following trends are changing the skill requirements for managerial jobs: (LO3) d. Increasing use of social media e. Increasing global competition f. Increased use of remote and hybrid work arrangements Answer: The responses provide by the students will vary contingent upon their personal viewpoints and understanding. The responses given should provide for in-depth discussion among the students. Some of the expected responses could include, respectively, (a) requires awareness and adaptability, (b) requires knowledge of various cultures and business practices, and (c) requires effective communication, collaboration, and feedback skills to help employees achieve high levels of performance and work-life balance.

25.

Suppose you have taken a job as a training and learning specialist in a financial institution that has created competency models for all its positions. How could the competency models help you implement training initiatives for employees? How could the competency models help you develop the financial institution’s employees? (LO3) Answer: Because competency models consider areas of personal capabilities that enable employees to perform their work successfully, they would allow the training and learning specialist to help employees develop particular skills for not only the job that they currently have, but for other jobs in the organization. This would contribute to the training and learning specialist’s success.

Competency models could provide a roadmap for employees to identify the types of competencies that they want to acquire and develop in order to successfully make lateral or upward career moves.

This could benefit everyone.

26.

Consider the job of a customer service representative for a telecommunications provider who handles calls from residential customers for billing inquiries and routine service requests. What measures can the employer take to design this job to make it efficient? What might be some drawbacks or challenges of designing this job for efficiency? (LO4) Answer: The responses provided will vary. However, all responses should indicate understanding of the concepts. The variety of responses given by the students should lead to a lively discussion on the subject matter.

27.

How might the job in Question 6 be designed to make it more motivating? Would these considerations apply to the barista’s job in Question 2? (LO4) Answer: Responses provided will be contingent upon individual levels of understanding and viewpoints. However, responses should indicate that according to the Job Characteristics Model, jobs are more motivating if they have greater skill variety, task identity, task significance, autonomy, and feedback about performance effectiveness.

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28.

What ergonomic considerations might apply to each of the following jobs? For each job, what kinds of costs would result from addressing ergonomics? What costs might result from failing to address ergonomics? (LO4) d. A computer programmer who works remotely from home three days each week e. UPS driver f. Registered nurse Answer: The individual responses will vary, but each response should demonstrate understanding of the concepts of ergonomics. The goal of ergonomics is to minimize physical strain on the worker by structuring the physical work environment around the way the human body works. Ergonomic design may involve modifying equipment to reduce the physical demands for performing certain jobs or redesigning the jobs themselves to reduce strain.

29.

What are the trade-offs between the different approaches to job design? Which approach do you think should be weighted more heavily when designing jobs? Why? (LO4) Answer: The available approaches emphasize different aspects of the job: the mechanics of doing a job efficiently, the job’s impact on motivation, and the job's impact on both the physical and mental health and well-being of the people performing the job. Although an efficiency focus is important, organizational success is also dependent upon skilled and talented workers that are more likely to be attracted to and stay with organizations that provide interesting and meaningful jobs and carefully consider their physical and mental well-being in carrying out job requirements. Responses to the weighting portion of the question will vary but are likely to reflect students’ work experiences.

30. Consider a job you hold now or have held recently. Would you want this job to be redesigned to place more emphasis on efficiency, motivation, physical health and well-being, or mental health and well-being? What changes would you want, and why? (Or why do you not want the job to be redesigned?) (LO4) Answer: The student responses given for this question will vary. However, all answers provided should demonstrate the individual student’s understanding of the chapter concepts.

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CASE STUDY: EVIDENCE-BASED HRM ANAYLTICS DRIVE SUCCESS AT UPS Case Summary: This vignette discusses UPS (United Parcel Service), which is famous for its brown-uniformed drivers behind the wheels of brown delivery trucks. The company is constantly looking at ways to become more efficient as a means to cost savings and reduce impact on the environment. Orion, is a system that uses analytics to gather, analyze, and apply data to reduce resources associated with every aspect of package handling at UPS.

Answers to Questions: 1. What benefits does UPS derive from using ORION to help it make drivers’ work more efficient?

The system leaves less up to chance and individual decision-making regarding routes and efficiency systems. Since the system can map out the most efficient routes, the drivers will no longer need to spend time determining routes, thus maximizing efficiency for UPS. 2. What challenges does the system pose for drivers and their managers?

Some drivers won’t like that a computer is scheduling their routes and that they have decreased flexibility in their work. The relationship between the drivers and managers may seem more like “big brother” and implies that managers don’t value drivers’ input and don’t trust them to do their job well. The key to successful implementation will be to explain the benefits of efficiency and that it is not about lack of trust while avoiding the perception that it minimizes autonomy and decisionmaking by the employee.

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CASE STORY: EYE ON TECHNOLOGY AI-POWERED TOOLS HELP WITH RECRUITMENT Case Summary: This case discusses common accessibility challenges with online recruitment websites/ portals. Most sites look accessible on the front end however, many people with disabilities experience difficulties using these sites. To help address these barriers, the Ontario Disability Employment Network (ODEN) partnered with an organization to offer an AI bot that helps scan an employer’s career portal and information back to the Job Abilities Canada site and offer job-matching services.

Answers to Questions: 1. What are some advantages of finding a candidate via the AI tool Abi compared with traditional job postings on the company’s website?

According to the case details, Abi does most of the work for employers. Abi crawls employers career sites and collects information about the jobs. It provides job seekers who identify as having a disability an opportunity to be easily linked to job opportunities. In addition to being easily linked to potential candidates, employers also have access to information and resources from the federal government and community partners about creating inclusive job postings and removing barriers to help ensure that the recruitment process is inclusive.

2. What else can recruiters do to include job seekers who have a disability and cultivate awareness within their organizations about the abilities of people with disabilities?

Student responses will vary. Student responses should include specific examples applying chapter concepts. Students should show an understanding of how evaluating recruitment efforts can support decision making on recruitment methods to reach a diverse population, including people with disabilities.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 4: Recognizing the Need for “Two-Eyed Seeing” See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 5: Selecting Employees Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Identify the elements and legal requirements of the selection process.

LO2: Define ways to measure the success of a section method.

LO3: Compare some of the common methods used for obtaining and verifying candidate information.

LO4: Describe the major types of employment tests, including how to conduct effective interviews.

LO5: Explain how employers carry out the process of making a selection decision.

INTRODUCTION: FAIRTEST: Video Games for Employment Selection • Video games are helping Kraft Heinz to assess candidates’ traits associated with emotional intelligence, risk taking, and memory.

• Results are being compared against the results of 250 top performing Kraft Heinz employees, to identify candidate who have similar traits.

• This new approach has helped diversify the hiring and attract candidates from more varied backgrounds.

SELECTION Through the process of selection, organizations make decisions about who will be chosen to fill job openings: • Begins with the candidates identified through recruitment and attempts to reduce their number to the individuals most likely to be the best performers.

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• Candidate experience—job seeker’s perceptions of and response to the employer’s talent acquisition process. Candidate experience is a critical determinant of the organization’s reputation and employer brand.

WHAT ARE THE STEPS IN THE SELECTION PROCESS? Reference Figure 5.1 Steps in the selection process include: • Screening applications and résumés • Testing and reviewing work samples • Interviewing candidates • Checking references and background • Making a selection decision

LEGAL STANDARDS FOR SELECTION • Human Rights and Privacy legislation have implications for selection.

• Interviews must be conducted in a way that candidates can be assessed without drawing out information that is not relevant to the job - cannot gather information about prohibited grounds of discrimination, even indirectly - e.g., asking when applicant attended high school (reveals age).

• Interview notes used to distinguish between candidates cannot include references to a prohibited ground of discrimination.

• Candidates must provide consent before background or reference checks.

• Table 5.1 provides examples of what to avoid asking/preferred approaches.

CRITERIA FOR EVALUATING SELECTION METHODS 1. Reliability • Extent to which a measurement generates consistent results i.e., is free from random error.

• Often uses correlation coefficients—statistics that measure the degree to which two sets of numbers are related.

• A reliable test would have a correlation close to 1.0 i.e., a perfect positive relationship—as one set of numbers goes up, so does the other.

• Answers whether you are measuring something accurately.

2. Validity Describes the extent to which performance on a measure, such as a test score, is related to what the measure is designed to assess, such as job performance i.e. Are you measuring something that matters?

• Criterion-related validity is the measure of validity based on showing a substantial correlation between test scores and job performance scores.

-- Figure 5.2 illustrates that intelligence is more valid than grade point average for predicting success in the job of a sales representative.

Two kinds of research to arrive at criterion-related validity (Reference Figure 5.3): Steen, HRM 6ce © McGraw Hill, 2023 IM 1-53

-- Predictive validation (best measure of validity) uses the test scores of all applicants and looks for a relationship between the scores and future performance of the applicants who were hired.

-- Concurrent validation administers a test to people who currently hold a job and compares scores to existing measures of job performance.

• Content validity refers to the consistency between the test items or problems and the kinds of situations or problems that occur on the job.

-- Does the applicant have the competencies to handle job-specific situations?

-- Expert judgment is used to decide that a test has content validity.

• Construct validity establishes that tests really do measure intelligence, leadership ability, or other construct and that mastery of the construct is associated with successful performance on the job.

3. Ability to Generalize • Valid in other contexts beyond the context in which the selection method was developed.

• Is a selection method that was valid in one context also valid in other contexts? e.g., cognitive ability tests are generalizable across many jobs.

4. Practical value • Selection methods should produce information that benefits the organization.

• Utility—extent to which the selection method provides economic value greater than its cost.

JOB APPLICATIONS AND RÉSUMÉS 1. Application Forms • Reference Figure 5.4 - Sample Application Form • Inexpensive way to gather basic data from many applicants • Several types of information are usually provided: -- Contact information (name, address, phone number, email address).

-- Work experience (companies worked for, job titles, and dates employed).

-- Educational background (high school, college, and/or university).

-- Applicant’s signature (to verify the information is true and complete).

2. Résumés • Usual way that applicants introduce themselves to a potential employer.

• Applicants control the content of the information and the way it is presented so the information is biased toward the applicant.

• Enables applicants to highlight accomplishments.

• Applicant tracking system (ATS) is a software application that streamlines the flow of information between job seekers, HR staff, and hiring managers. These systems provide capabilities including generating applicant confirmation letters, and pre-screening for education, etc.

3. References • References are not an unbiased source—applicants choose references who will say something positive.

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• Usually, the organization checks references after it has determined that the applicant is a finalist for the job.

• Legal issues may arise e.g., negligent hiring—a situation where an employer may be found liable for harm an employee causes if references and background checks were not performed properly at the time of hiring. Also claims of defamation or misrepresentation may result.

4. Background Checks • Way to verify that applicants are as they represent themselves to be.

• There is a growing use of background checks e.g., criminal record checks, education, and employment verifications; credit inquiries; driving abstracts.

EMPLOYMENT TESTS AND WORK SAMPLES Organizations use employment tests to gather objective data. There are two broad categories of employment tests: • Aptitude tests -- Assess how well a person can learn or acquire skills and abilities e.g., General Aptitude Test Battery (GATB).

• Achievement tests -- Measure a person’s existing knowledge and skills e.g., skills using software such as Excel.

-- Note: Before using a test, organizations should investigate its validity and reliability.

1. Physical Ability Tests • Physical strength and endurance play less of a role in the workplace than in the past due to the use of technology.

• However, many jobs require certain physical abilities or psychomotor abilities (e.g., hand-eye coordination).

• Tend to exclude women and people with disabilities so use can make the organization vulnerable to Human Rights complaints.

2. Cognitive Ability Tests • Sometimes called intelligence tests—designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability.

• These tests are especially valid for complex jobs and those requiring adaptability in changing circumstances.

3. Job Performance Tests and Work Samples • Many jobs require people that excel at performing specialized tasks e.g., operating a certain machine, handling calls from customers, or designing advertising materials. Organizations will test for these required skills.

• In-basket tests measure the ability to juggle a variety of demands e.g., as in a manager’s job.

• Candidates for jobs like graphic designers and writers may be asked to provide work samples.

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• Assessment centre—a wide variety of specific selection programs that use multiple selection methods to rate applicants or job incumbents on their management potential.

4. Personality Inventories • Employers many want to know about candidates’ personality traits e.g., “Big Five” traits: extroversion, adjustment, agreeableness, conscientiousness, and inquisitiveness (Table 5.3).

-- There are many personality tests commercially available.

-- Compared with intelligence tests, people are better at “faking”.

-- Traits such as agreeableness and conscientiousness are associated with effective teamwork.

5. Honesty Tests, Alcohol and Drug Tests • Honesty Tests (integrity tests) are often paper-and-pencil tests that ask direct questions about the candidate’s attitudes inside and outside work.

• Alcohol and drug tests -- Concerns about the use of both legal and illegal substances (e.g., alcohol, cannabis, prescription medications, and street drugs).

-- Need to adhere to all legal requirements as well as policies developed by Human Rights Commissions.

-- Drug or alcohol dependency is considered a disability that must be accommodated to the point of undue hardship.

6. Medical Examinations • Must be related to job requirements and should not be given until the candidate has received a conditional job offer.

• Used to establish employee’s physical condition at the time of hiring to assess whether the employee has suffered a work-related disability later on.

• Care must be taken to not discriminate against individuals with disabilities (who could perform the job with reasonable accommodations), women, older workers, etc. unless valid job requirements exist.

INTERVIEWS • Nondirective interview—the interviewer has great discretion in choosing questions to ask each candidate e.g., use of open-ended questions.

• Structured interview—consists of a pre-determined set of questions for the interviewer to ask each candidate—should be related to requirements and cover relevant knowledge, skills, and experiences.

-- Situational interview—structured interview in which the interviewer describes a situation likely to arise on the job, then asks candidates what they would do in that situation. May have high validity in predicting job performance.

-- Behavioural interview—structured interview in which the interviewer asks candidates to describe how they handled a type of situation in the past. Questions about candidates’ actual experiences tend to have the highest validity.

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• Usual set-up for either a non-directive or structured interview is for an HR professional or hiring supervisor to interview each candidate face-to-face.

-- Panel interview—several members of the organization meet to interview each candidate. This method is especially appropriate for organizations relying on teamwork and reduces the effect of individual personal biases.

• Digital interview—a technology-based interview in which interviewee digitally records their responses to digitally-provided interview questions—without live interactions between the interviewer and interviewee e.g., Hilton Hotels & Resorts and Air Canada.

ADVANTAGES AND DISADVANTAGES OF INTERVIEWING Advantages • Talking face-to-face can provide evidence of communication and interpersonal skills.

• Gain insight into candidate’ personality and interpersonal style.

• Provides a means to check the accuracy of applicant’s information.

Disadvantages • Can be unreliable and have validity concerns • Costly • Subjective • Greater risk of discrimination complaints Note: To avoid these pitfalls, keep the interview focused, structured, and standardized; avoid trying to measure abilities and skills (e.g., intelligence) that tests could measure better; use situational and behavioural interviews; train interviewers; and use more than one person to conduct interviews; consider using technology e.g., Skype to reduce costs.

SELECTION DECISIONS There is usually more than one qualified candidate—selection decision typically combines ranking based on objective criteria as well as subjective judgments about which candidate will likely be the highest performer.

Multiple-hurdle model • Process of arriving at a selection decision by eliminating some candidates at each stage of the selection process.

• Each stage of the selection process is considered a hurdle to get through to progress to the next stage.

Compensatory model • Process of arriving at a selection decision in which a very high score on one type of assessment can make up for a low score on another.

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• More expensive alternative.

Who Makes the Selection Decision?

• May be supervisor or manager, often alone.

• May be human resources professional using standardized, objective criteria.

• May be work team or other panel of decision makers.

Hiring algorithm—mathematical model that predicts which job candidates are most likely to be high performers after being hired.

Communicating the Decision • HR department is often responsible for notifying applicants.

• Offer should include job responsibilities, work schedule, rate of pay, starting date, and other relevant details.

• Accurate records of who was contacted, when, for which position, as well as the candidate’s reply.

• HR department and hiring supervisor should be in close communication about the job offer •

Summary • • • • •

Identify the elements and legal requirements of the selection process.

Define ways to measure the success of a section method.

Compare some of the common methods used for obtaining and verifying candidate information.

Describe the major types of employment tests, including how to conduct effective interviews.

Explain how employers carry out the process of making a selection decision.

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Critical Thinking Questions 1. What activities are involved in the selection process? Think of the last time you were hired for a job.

Which of those activities were used in selecting you? Should the organization that hired you have used other methods as well? What advice do you have to the organization about providing an excellent candidate experience? (LO1) Answer: There are several activities involved in the selection process. Selection typically begins with a review of candidates’ employment applications and résumés. The organization may administer tests to candidates who meet the basic requirements and qualified candidates undergo one or more interviews. Organizations check references and conduct background checks to verify the accuracy of information provided by candidates. A candidate is selected to fill each vacant position. Candidates who accept offers are placed in the positions for which they were selected.

The student responses provided regarding selection activities that they have experienced would vary. The individual responses should include such information as: completed an application, had an interview with the department supervisor, received a job offer from the organization, and accepted the job offer. The responses that relate to providing an excellent candidate experience will vary but should demonstrate reflection on practices likely to positively impact a job seeker’s perception of and response to the organization’s talent acquisition process.

2. Why should the selection process be designed to align with the organization’s job descriptions and specifications? (LO1) Answer: A job description identifies the tasks, duties, and responsibilities that a job entails, and a job specification identifies the knowledge, skills, abilities, and other characteristics required for successfully performing a job. The selection process should be set up in such a way as to assist the organization with identifying people who have the necessary competencies to successfully perform the tasks, duties, and responsibilities the job entails. Without the selection process being adapted to fit the organization’s job descriptions and specifications, individuals who are not the best fit may be erroneously hired.

3. Why does predictive validation provide better information than concurrent validation? Why is this type of validation more difficult? (LO2) Answer: Predictive validation is research that uses the test scores of all applicants and looks for a relationship between the scores and future performance of the applicants who were hired.

Concurrent validation is research that consists of administering a test to people who currently hold a job, then comparing their scores to existing measures of job performance. Predictive validation, more time-consuming and difficult, is considered the best measure of validity. Job applicants tend to be more motivated to do well on the tests, and their performance on the tests is not influenced by their firsthand experience with the job.

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One reason why this type of validation is considered more difficult is the process itself. Initially, the researcher administers the tests, waits a set period of time, and then measures the performance of the applicants who were hired.

4. Choose two of the selection methods identified in this chapter. Describe how you can compare them in terms of reliability, validity, ability to generalize, and utility. (LO2) Answer: Selection methods identified within the chapter material include employment applications and résumés, references and background checks, employment tests and work samples, and interviews. To compare the selection methods in the terms identified above, there must be understanding of those given terms. Reliability: the extent to which a test generates consistent results. Validity: the extent to which performance on a measure is related to what the measure is designed to assess. Generalizable: valid in other contexts beyond the context in which the selection method was developed. Utility: the extent to which something provides economic value greater than its cost. Legal: process is conducted in a way that avoids human rights and privacy complaints.

The students may choose any of the two selection methods identified within the chapter. They should make the requested comparisons between the two methods that were selected.

5. Suppose your organization needs to hire a marketing specialist, and you are reviewing LinkedIn profiles of candidates who have applied for the available position. What kinds of information will you want to review about the candidates’ work experience? What kinds of information will you want to consider about their education? How important are the candidates’ “Summary”? What methods would you use for verifying or exploring this information? Why would you use those methods? (LO3) Answer: The responses provided will vary. However, all responses should indicate understanding of the chapter concepts. Examples of suggested responses include: you would want to find out if the applicant has experience in the type of work for which there is a vacancy at the organization; you would want to see if there is any educational background to demonstrate higher understanding of the work that is to be performed in the job. To verify or explore the information provided, you would want to perform a thorough background check including securing transcripts from educational institutions, obtaining work references, and speaking with previous employers. These methods would be used to help ensure that the candidate is the best fit for the position available.

6. For each of the following jobs, select two kinds of tests you think would be most important to include in the selection process. Explain why you chose those tests. (LO4) a. City bus driver b. Pharmaceutical sale representative c. HR professional d. Barista

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Answer: The individual student responses will vary contingent upon individual opinion and understanding of the chapter concepts. However, some of the tests identified for each of the items identified above could be: (A) job performance and physical ability tests – to ensure the candidate has the required capabilities to operate a city bus safely; (B) personality tests and honesty tests – to ensure the communication skills and integrity of the individual meets the organization’s needs; (C) cognitive ability tests and personality tests – to ensure the candidate has the necessary cognitive ability and is able to work well with others; and (D) job performance tests and cognitive ability tests – to ensure the candidate has the necessary job knowledge and skills to perform the job.

7. Suppose you are an HR professional at a large retail chain. You want to improve the company’s hiring process by standardizing interviews, so that every time someone is interviewed for a particular job category, that applicant answers the same questions. You also want to make sure the questions asked are relevant to the job and comply with human rights legislation. Think of three questions to include in behavioural description interviews for each of the following jobs. For each question, state why you think it should be included. (LO5) a. Front-line salesperson at one of the company’s stores b. Store manager c. Accounts payable administrator at company headquarters Answer: The individual responses will vary, but each response should demonstrate understanding of the chapter concepts.

8. How can organizations improve the quality of their interviewing so that interviews provide valid information? (LO5) Answer: Interviews should be focused, structured, and standardized. Interviewers should identify job requirements and create a list of questions related to the requirements. Interviewers should be trained to recognize biases and conduct objective interviews. Panel interviews can reduce problems related to interviewer bias. Interviewers should put candidates at ease in a comfortable place that is free of distractions. Questions should ask for descriptions of relevant experience and job-related behaviours.

9. Recording a live (synchronous) video interview is becoming an increasingly popular means of getting multiple assessments of that individual from different perspectives. Could these live (synchronous) interviews also be useful in evaluating the interviewer(s)? What would you look for in an interviewer if you were evaluating one on video? (LO5) Answer: The student responses given for this question will vary. However, all responses should reflect student understanding of the chapter concepts. Instructors can encourage students to consider the criteria for evaluating selection methods – in particular, ensuring that the interviewer is applying concepts of reliability and validity within their interviewing. Answers should also identify that interviews must be focused, structured, and standardized.

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10. Suppose a manufacturer using artificial intelligence to support their hiring decisions, learns that employees who graduated from one Polytechnic/College/Institute of Technology take longer to get up to speed than employees who graduated from another Polytechnic/College/Institute of Technology. How might applying the data to hiring decisions increase the risk of discrimination?

How could the manufacturer use the information in a non-discriminatory way? Consider the Thinking Ethically feature in preparing your response. (LO5) Answer: While AI can help eliminate time-consuming selection duties such as reviewing resumes, it is not without subject to risk of discrimination in the process. If the organization does not have good data to start with, the selection process will not be as effective and as a result, may contribute to potential discrimination. Instructors are encouraged to promote student discussions about possible practices that can increase this risk of discrimination. Decision makers using AI to make hiring decisions need to be aware of the systems they are using and ensure the technology is accurately applying screening criteria to make hiring decisions.

However, the manufacturer can use the information in a non-discriminatory way. For example, it can use the information to identify candidates who are a good match for the job, by using accurate and up to date job descriptions and identifying keywords and phrases that apply to the position.

Instructors should direct students to the Thinking Ethically feature in the chapter for specific details.

11. Some organizations set up a selection process that is long and complex. In some people’s opinion, this kind of selection process not only is more valid but also has symbolic value. What can the use of a long, complex selection process symbolize to job seekers? How do you think this would affect the organization’s ability to attract top talent? (LO5) Answer: The student responses given for this question will vary. Suggested responses may include that a process of this type would indicate to the applicant that the organization takes the time to seek out the “best” qualified person available for the position. Such an approach may serve to attract the most conscientious and dedicated candidates available. However, others may suggest that a long process may result in the loss of qualified candidates who receive more timely job offers in the interim.

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CASE STUDY: EVIDENCE-BASED HRM ASSESSING THE IMPACT OF THE CANADIDATE EXPERIENCE Case Summary: The IBM Smarter Workforce Institute and Johnson & Johnson have analyzed data to provide insights about the quantifiable outcomes associated with creating a positive candidate experience.

Answers to Questions: 1. Is candidate experience a metric that should be used to assess an organization’s selection process?

Why or why not?

Student responses will vary but should reflect the value of creating a positive candidate experience.

For example, a positive candidate experience can result in more and potentially better applicants, hires, and referrals, and reduce the hiring costs and time to fill vacancies. However, news of negative candidate experience can be rapidly shared through social media and employer review sites like Glassdoor.

2. For each of the steps in the selection process (Figure 5.1), identify what job seekers would likely want in a positive candidate experience.

Students should be encouraged to share their experiences with each step in the selection process including positive practices or behaviours as well as opportunities to improve candidate experience.

3. How can candidate experience translate into business performance?

In addition to the benefits of a positive candidate experience discussed in Question 1, additional context provided in the chapter includes the discussion of findings such as: when job seekers have a highly positive “5 Star” candidate experience, they are 74 percent more likely to increase their business relationship with the potential employer—even when they are not hired or become a finalist for the job. However, when job seekers have a negative “1 Star” candidate experience, 46 percent will break off their business relationship with the potential employer.

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CASE STORY: EYE ON TECHNOLOGY UNILEVER USES AI TO IMPROVE SELECTION RESULTS Case Summary: This case describes how AI has helped improve the selection process at Unilever.

Answers to Questions: 3. What aspects of Unilever’s selection process do you think would contribute to cost savings?

The ability to standardize the beginning of the interview process, such as marketing positions, gamification of the skills assessment, and then matching them to the most relevant positions are all jobs that can be done more easily and more cost effectively with computerized systems. Next, using online interviewing allows for more effective use of time by existing Unilever employees, saving money at every point.

4. How did the introduction of artificial intelligence add to the utility of this process?

AI allowed the entire HR department and hiring process infinitely more efficient in the assessment and matching of the correct person to the correct job.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 5: Waniska! Wake Up! See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 6: Training, Learning, and Development Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Describe the purposes and activities associated with training and developing employees.

LO2: Discuss how to link training, learning, and development to organizational strategy and needs.

LO3: Explain how to assess the needs for training and employees’ readiness for learning.

LO4: Summarize how to plan, implement, and evaluate an effective training program.

LO5: Discuss the approaches organizations use for employee development.

LO6: Explore the steps and outcomes of the career management process.

INTRODUCTION: The Blanket Exercise - RCMP • Created by social justice group Kairos Canada, the Blanket Exercise, is an Indigenous-focused learning experience that is mandatory training for all RCMP cadets.

• Blankets are folded and moved symbolizing the loss of territory during eras and events over 500 years of Canadian history.

• Reconciliation tool based on a holistic approach.

• Creates a context for understanding critical issues including residential schools and missing and murdered Indigenous women.

TRAINING VS. DEVELOPMENT Reference Table 6.1 – Training vs. Development Training • Planned efforts by an organization to facilitate employees’ learning of job-related knowledge skills, abilities, and behaviours with the goal of applying these on the job.

• Informal learning is learner-initiated and involves action and doing.

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• Formal training refers to talent development programs, courses, and events developed and organized by an organization.

Employee Development • The combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

• HRM establishes a process for employee development that prepares employees to help the organization meet its goals.

TRAINING, LEARNING, & DEVELOPMENT LINKED TO STRATEGY Workplace training and employee development are key ingredients in the competitiveness of firms and ultimately of national competitiveness: • Recent survey of Canadian organizations identified top 3 strategic goals for learning and development: 1) Improving organizational performance; 2) Enhancing individual employee performance; 3) Developing organizational leaders.

• Continuous learning is a learning system that requires employees to understand the entire work system; acquire new skills, apply them on the job, and share what they have learned with other employees.

• Learning culture refers to organizational commitment to ongoing learning, and the processes of sharing, support, communication, and understanding that move the organization forward. In an increasingly competitive, complex, and global economy, organizations with strong learning cultures are more likely to be agile and resilient. Organizations with strong learning cultures tend to provide employees with more hours of learning than organizations with weak learning cultures.

FOCUS ON DIVERSITY, EQUITY, INCLUSION, & BELONGINGNESS Involves building a culture that is empathic, collaborative, self-aware, innovative, profitable, and values everyone.

• Diversity is a reality in both labour and customer markets. It is a social expectation and value.

• Inclusion results in an environment where employees share a sense of belonging, mutual respect – able to do their best work.

• DEIB education and training is focused on supporting positive attitudes about diversity and developing skills to foster inclusiveness. Impacts cognitive, affective, and behavioural outcomes.

EMPLOYEE ORIENTATION & ONBOARDING Orientation • Training designed to prepare employees to perform their jobs effectively, learn about the organization, and establish work relationships.

Onboarding • Aims to prepare and socialize new employees for full participation in the organization.

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•

Refer to Figure 6.1. A comprehensive onboarding process prepares employees in four areas: complying with policies and rules, clarifying job requirements, understanding the organization’s culture, and connecting with co-workers.

STAGES OF INSTRUCTIONAL DESIGN Reference Figure 6.2 Identifies the stages of an instructional design process. A complete instructional design process includes the following steps: • Assess needs for training - what the organization requires that its people know and be able to do • Ensure readiness for training.

• Plan the training program- objectives, trainers, and methods.

• Implementation - principles of learning; transfer of training.

• Evaluate results.

WHAT IS NEEDS ASSESSMENT? Reference Figure 6.3 The process of evaluating the organization, individual employees, and employees’ tasks to determine what kinds of training and learning, if any, are necessary.

• Conditions (pressure points) that may prompt an organization to conduct a needs assessment Examples include - legislation; poor performance; new technology; global business expansion.

• Outcome of the needs assessment: Set of decisions about how to address the issues that prompted the needs assessment— examples include: what trainees need to learn; who receives training; training vs. other options (e.g., perhaps job redesign would be more appropriate).

The three elements of a needs assessment: 1. Organization Analysis • Usually, the needs assessment begins with organization analysis.

• Process for determining the appropriateness of training by evaluating characteristics of the organization.

• Looks at training needs considering the organization’s strategy (e.g., growing, shrinking, expanding, focusing), resources available for training, and management’s support for training activities.

2. Person Analysis • A process for determining individuals’ needs and readiness for learning—critical when training is in response to a performance issue.

• Involves answering several questions: -- Do performance gaps result from a lack of knowledge, skill, or ability?

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-- Who needs training?

-- Are these employees ready i.e., willing, and able to learn?

3. Task Analysis • Process of identifying the tasks, knowledge, skills, and behaviours that training should emphasize.

Usually, task analysis is conducted along with person analysis.

-- The HR professional looks at the conditions in which tasks are performed e.g., the equipment and environment of the job, time constraints (e.g., deadlines), safety considerations, and performance standards.

READINESS FOR LEARNING Effective training requires not only a program that addresses real needs, but also considers employee readiness: 1. Employee Readiness Characteristics • Cognitive ability—includes ability to use written and spoken language, solve math problems, and use logic to solve problems. Many companies may need to provide literacy training before some employees will be ready to participate in job-related training.

• Highly motivated to learn—employees learn more from training programs when they are highly motivated to learn the content.

2. Work Environment • Situational constraints—limits on training effectiveness that arise from the situation or the conditions within the organization e.g., lack of money for training; lack of time for training; failure to provide proper tools and materials for learning (or applying the training).

• Social support—the ways the organization’s leaders and others encourage learning e.g., positive feedback and encouragement.

HOW TO PLAN & DESIGN THE TRAINING PROGRAM Planning begins with establishing objectives for the training program.

• Effective training objectives have three components: --Statement of what the employee is expected to do, the quality or level of performance that is acceptable, and the conditions under which the employee is to apply what they learned e.g., physical conditions.

--Performance standards that are measurable.

--Identification of resources needed to carry out the desired performance • The organization must avoid illegal discrimination—must not intentionally or unintentionally exclude anyone due to a prohibited ground of discrimination; must provide accommodations and ensure equal treatment.

• In-House or Contracted Out? --An organization can provide an effective training program even if the organization lacks expertise in training.

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--Request for Proposal (RFP) can be sent to several vendors. The RFP should identify the type of service needed, number of employees requiring training, dates for completion, proposal deadlines, etc.

CATEGORIES OF TRAINING METHODS Reference Table 6.2 1. Presentation methods: Learners receive information provided by others • Classroom instruction—typically involves an instructor leading a group.

• Distance learning—learners at different locations attend programs online.

• Audiovisual training—trainees work independently using material in workbooks or on the Internet.

2. Hands-on methods: Learners are actively involved in trying out skills • On-the-Job Training (OJT)—person with job experience and skill guides trainees in practising job skills at the workplace.

• Apprenticeship—work-study method that teaches job skills through a combination of on-the-job and classroom training.

• Internship—On-the-job learning sponsored by an educational institution as a component of an academic program.

• Co-operative education—Plan of higher education that incorporates paid work experience as an integral part of academic studies.

• Simulations—a training method that represents a real-life situation.

• Virtual reality—computer-based technology that provides an interactive, three-dimensional learning experience.

• E-learning (also referred to as computer-based training; online learning; web-based training)— instruction and delivery of training by computer (or mobile device) through the Internet or intranet.

• Gamification—applying principles of digital and computer games.

• Blended learning—combining technology methods, such as e-learning, simulations, or social media, with face-to-face instruction.

3. Group- or Team-building methods: Training methods designed to improve team or group effectiveness.

• Experiential programs-- Training programs in which participants learn concepts and apply them by simulating behaviours involved and analyzing the activity, connecting it with real-life situations.

• Adventure learning—Uses challenging, structured physical activities (vulnerable to privacy and human rights risks).

• Cross-training—team training in which team members understand and practise each other’s skills so that they are prepared to step in and take another member’s place.

• Coordination training—team training that teaches the team how to share information and make decisions to obtain the best team performance.

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• Action learning—training in which teams get an actual problem, work on solving it, commit to an action plan, and are accountable for carrying it out.

IMPLEMENTING AND EVALUATING THE TRAINING PROGRAM Reference Table 6.3 Learning permanently changes behaviour. Principles of learning include: • Communicate learning objectives clearly • Use distinctive, attention-getting messages -- Present information with visual images • Limit the content of training -- Group content into chunks; visual images; opportunities to repeat/practise • Guide trainees as they learn -- Use words (and pictures) to provide context and sequence of activities • Elaborate on the subject -- Relate new to previous material; practise in various contexts/settings • Provide memory cues -- Suggest memory aids; use familiar sounds/rhymes as memory cues • Transfer course content to the workplace -- Learning environment mirrors work environment; plan for application at work; use words to link to workplace • Provide feedback about performance -- Tell trainees how they are doing with using their new skill; show learners how they have met objectives

TRANSFER OF LEARNING • Transfer of learning—on-the-job use of knowledge, skills, and behaviours learned in training.

• Communities of practice—groups of employees who work together, learn from each other, and develop a common understanding of how to get work accomplished.

• Chatbots—automated personalized conversations between software and human users are transforming from personal productivity tools to workplace application including leveraging employee learning.

MEASURES OF TRAINING SUCCESS Reference Figure 6.5: • Trainee satisfaction • New knowledge and abilities • Transfer of training -- use of new skills and behaviour on the job • Return on investment • Performance improvements – individual and organizational Steen, HRM 6ce © McGraw Hill, 2023 IM 1-71

APPROACHES TO EMPLOYEE DEVELOPMENT Development for Careers—concept of career has changed.

• Traditional view: A career consists of a sequence of positions within an occupation or organization (like a set of stairs from entry to senior levels).

• Protean career: A new concept of a career—frequently changes based on changes in the person’s interests, abilities, and values in the work environment. Assumes that employees will take major responsibility for managing their careers—organizations can meet those needs through a system for career management or development planning.

Approaches to employee development fall into 4 broad categories: Reference Figure 6.6 1. Formal education • Offered either at the workplace or off-site.

• Includes workshops, courses offered by colleges or universities, MBA & EMBA programs, short courses from consultants, etc.

• Many colleges and universities offer professional development programs to meet specific needs of an organization.

2. Assessment • Collecting information and providing feedback to employees about their behaviour, communication style or skills—technical skills are not enough.

• MBTI—psychological test that identifies individuals’ preferences.

• Assessment centres—engage multiple evaluators to evaluate performance e.g., leaderless group discussions, interviews, in-baskets, and role plays.

• 360-degree feedback—performance measurement by the employee’s supervisor, peers, direct reports, and customers.

3. Job Experiences • The combination of relationships, problems, demands, tasks, and other features of an employee’s job.

• Most employee development occurs through job experiences.

• Various job assignments can provide for employee development: -- Job enlargement—adding challenges or new responsibilities to employees’ current jobs e.g. completing a special project.

-- Job rotation—moving employees through a series of job assignments in one or more functional areas.

-- Transfers—assignment of an employee to a position in a different part of the company, usually in a lateral move.

-- Downward move—assignment of an employee to a position with less responsibility and authority.

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-- Promotion—assignment to a position with greater challenges.

-- Externship—employee development through a full-time temporary position with another organization.

-- Sabbatical—a leave of absence from an organization to renew or develop skills.

4. Interpersonal Relationships • Employees can develop skills and increase their knowledge by interacting with a more experienced member of the organization.

• Mentor is an experienced, productive senior employee who helps develop a less experienced employee (a protégé or mentee).

-- Mentoring may be formal or informal. Most successful programs are voluntary; participants understand the details of the program; and managers are rewarded for employee development -- Are beneficial to both mentors and protégés or mentees.

• Coach is a peer or manager who works with an employee to provide a source of motivation, help develop their skills, and provide reinforcement and feedback. May play one or more of 3 roles: -- Working one-on-one with an employee e.g., giving feedback.

-- Helping employees learn for themselves.

-- Providing resources such as mentors, courses, or job experience.

CAREER MANAGEMENT SYSTEMS Employee development is most likely to meet the organization’s needs if it is part of a human resource system of career management.

1. Data-Gathering • Self-assessment—the use of information by employees to determine their career interests, values, aptitudes, and behavioural tendencies.

2. Feedback • Employees receive information about their competencies and where these assets fit into the organization’s plans.

• Some organizations develop and communicate career paths—the identified pattern or progression of jobs or roles within an organization.

3. Goal Setting • Setting short-and long-term career objectives.

4. Action Planning and Follow-up • Action plans may involve any of the development methods discussed.

• Development plan is often the outcome-- usually include descriptions of strengths and areas for development; career goals; and training, learning, and development for reaching each goal.

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HIGH-POTENTIAL EMPLOYEES Effective programs for developing high-potential employees have 3 stages: 1. Selection of high-potential employees • Select outstanding performers who have accomplishments such as completing elite academic programs or use results of tests e.g., assessment centre results.

2. Developmental experiences • Choose those who succeed in the developmental experiences.

3. Active involvement with senior leaders • Provides greater understanding of organizational culture.

Summary • • • • • •

Describe the purposes and activities associated with training and developing employees.

Discuss how to link training, learning, and development to organizational strategy and needs.

Explain how to assess the needs for training and employees’ readiness for learning.

Summarize how to plan, implement, and evaluate an effective training program.

Discuss the approaches organizations use for employee development.

Explore the steps and outcomes of the career management process.

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Critical Thinking Questions 1. What is your take on the role an employee should play in their own training, learning, and development? (LO1) Answer: Student responses will vary but they should demonstrate understanding of the chapter concepts. Suggested answers could include reference to informal learning and engaging in employee development opportunities.

2. What can companies do to encourage informal learning? (LO1) Answer: Student responses will vary but should demonstrate understanding that informal learning is initiated by the learner and requires the learner’s own intent to develop. Organizations can help also support informal learning by foster a learning culture. Evidence was provided in this chapter that organizations with a strong learning culture outperform organizations with a weak learning culture.

3. Who should be involved in onboarding of new employees? Is it appropriate to provide onboarding programs purely online? Why or why not? (LO2) Answer: Onboarding is a “process that focuses on transferring organizational, team, and role-specific knowledge” to new employees. The individuals involved with this process should include human resources, managers, supervisors, and peers working with the new employee on a daily basis.

Online onboarding, while effective in some instances, does not provide the interaction necessary to promote understanding of the internal workings of the organization and its culture. It does not provide a means for establishing work relationships.

Instructors should reference the following quote to promote a class discussion on this topic: According to the author, “When done well, onboarding can improve productivity and new hire retention. Research by Brandon Hall Group found that organizations that have a robust onboarding process improve productivity by over 70 percent and new hire retention by 82 percent.”

4. “Melinda!” bellowed Toran to the company’s HR specialist, “I’ve got a problem, and you’ve got to solve it. I can’t get people in this plant to work together as a team. As if I don’t have enough trouble with our competitors and our past-due accounts, now I have to put up with running a zoo. You’re responsible for seeing that the staff gets along. I want a training proposal on my desk by Monday.”

Assume you are Melinda. (LO3) a. Is training the solution to this problem? How can you determine the need for training? b. Summarize how you would conduct a needs assessment. c. How do Toran’s comments suggest readiness (or lack of readiness) for learning?

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a) Training consists of an organization’s planned efforts to help employees learn job-related knowledge, skills, abilities, and behaviours with the goal of applying these on the job. Training can benefit the organization when it is linked to organizational needs and when it motivates employees.

The growing reliance on teamwork creates a demand for the ability to solve problems in teams, an ability that often requires formal training. With training so essential in organizations, it is important to provide training that is effective.

To assist the organization with goal achievement, HR professionals approach training through instructional design. This is a process of systematically developing training to meet specified needs.

Instructional design should begin with a needs assessment, the process of evaluating the organization, individual employee, and employee’s tasks to determine what kinds of training, if any, are necessary. A variety of conditions may prompt an organization to conduct a needs assessment.

The outcome of the needs assessment is a set of decisions A variety about how to address the issues that prompted the needs assessment. These decisions do not necessarily include a training program, because some issues should be resolved through other methods than training. b) The students will most likely recommend conducting a needs assessment to determine if the indicated issues can be successfully addressed by training. The responses provided should indicate that a needs assessment provides answers to questions in the three broad areas of (1) Organization – What is the context in which the training will occur? (2) Person – Who needs training? and (3) Task – What subjects should the training cover? c) Readiness for training is a combination of employee characteristics and positive work environment that permit training. The responses to this question that are provided by the students should indicate that the underlying cause of the problems must be discovered before a viable solution can be created. of conditions may prompt an organization to conduct a needs assessment. The outcome of the needs assessment is a set of decisions 5. Many organizations turn to e-learning as a less expensive alternative to instructor-led classroom training. What are some other advantages of substituting e-learning for instructor-led classroom training? What are some disadvantages? Would you prefer a combination of approaches? Why or why not? (LO4) Answer: Advantages of e-learning include: the ability to deliver training to trainees anywhere in the world at any time, cost saving and efficiency in training administration, the use of self-directed, selfpaced instruction, the ability to monitor trainees’ performance, and controllable access to training.

Disadvantages include: relies on the self-direction and self-motivation of the individual being trained and lacks the face-to-face contact with the trainer.

6. Consider your current job or a job you recently held. What types of training did you receive for the job? What types of training would you like to receive? (LO4) Steen, HRM 6ce © McGraw Hill, 2023 IM 1-77

Answer: Student responses will vary but should identify specific training methods that were used in their work experience.

7. In an organization that wants to use work experiences as a method of employee development, what basic options are available? Which of these options would be most attractive to you as an employee?

Why? (LO5) Answer: Most employee development occurs through job experiences. Job experiences contribute to development through a combination of relationships, problems, demands, tasks, and other features of an employee’s job. Options that would be available to promote this form of employee development could include: job enlargement, job rotation, transfers, promotions, downward moves, and temporary assignments with other organizations. The individual students will select what option they would find the most attractive.

8. Some people feel that mentoring relationships should occur naturally, in situations where organizational leaders or people in your external network choose to play that role. What are some advantages of an organization setting up a formal mentoring program rather than relying on an informal process? (LO5) Answer: Advantages of establishing formal mentoring programs include: access to mentors for all employees, and the participants know what to expect and what is expected of them.

9. What are the manager’s roles in a career management system? Which role do you think is most difficult for the typical manager? Why might managers want to be involved in career management? (LO6) Answer: The manager plays an important role to support employees’ career management efforts.

For example, managers can be a valuable source of information about the organization’s career paths, a source of developmental feedback, and are able to provide critical job experiences and learning opportunities.

10. Would you want to know that you had been identified as a “high-potential” employee? Why or why not? (LO6) Answer: Student responses will vary but should include a discussion of the impact of knowing that you had been assessed as having high-potential and how this knowledge could affect your motivation, commitment to the organization, and relationships with managers and colleagues.

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CASE STUDY: EVIDENCE-BASED HRM TALENT DEVELOPMENT ELEVATES DIVERSITY AND INCLUSION AT SODEXO Case Summary: Sodexo, a leading global food, and facilities management company, employs 10,000 employees in Canada. Diversity and inclusion are core competencies at Sodexo and a critical part of its business and growth strategy. Sodexo’s commitment to diversity and inclusion is examined including quantifiable performance-based outcomes.

Answers to Questions: 1. What training, learning, and development methods does Sodexo use, according to the information provided?

According to information provided in the case, Sodexo provides a variety of training, learning, and development initiatives that reinforce the importance of diversity and inclusion as the cornerstone of culture and a fundamental component of overall growth strategy.

For example: • Ongoing classroom training as well as a one-day Spirit of Inclusion session • Learning labs focused on awareness and skill building • Mentoring • Customized learning sessions for specific work teams and/or roles

2. Suppose Sodexo Canada continues to grow and asks you to advise senior leadership on how to maintain its focus on providing employee training, learning, and development related to diversity and inclusion. Suggest two or three methods from the chapter and explain why you recommend each.

The responses provided will vary but should connect to specific methods described within the three categories of training methods: presentation methods; hands-on methods; and group- or teambuilding methods.

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CASE STORY: EYE ON TECHNOLOGY KPMG’s Gamified Learning App: Globerunner Case Summary: This case describes how KPMG introduced a gaming app for their employees as a fun way of engaging onboarding and learning.

Answers to Questions: 1. How does KPMG’s use of technology for training and learning support a continuous learning strategy? an evidenced-based approach?

Continuous learning refers to a learning system that requires employees to understand the entire work system; acquire new skills, apply them on the job, and share what they have learned with other employees. By using a gamified learning app, KPMG provides employees the opportunity to engage in training and learning delivery through digital devices anytime. The use of the technology helps reinforce the organization’s learning values.

An evidence-based approach refers to demonstrating that the technology has positive influence on the company’s profits or key stakeholders (employees, customers, community, shareholders).

According to the case details, an evaluation of the system conducted 12 months after the global launch, included more than one million user interactions with information about the firm’s service offerings and a 24 percent increase in awareness of the firm’s capabilities. This improvement indicated that the learning app had made a positive contribution to achieving the established learning and training objectives.

2. Are there any downsides of a “fun” app for learning or training? For example, would you be comfortable playing a training game in a professional work environment? What privacy issues need to be considered when using a digital tool that collects and analyzes user data?

Student responses will vary. Answers could include consideration for individual preferences about learning methods. The application of key chapter concepts should be demonstrated in the answers.

Students can identify various privacy issues and should be encouraged to consider as many perspectives as possible.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 6: Designing with a New Frame of Mind See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 7: Managing Employee Performance Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Identify the activities involved in performance management.

LO2: Describe the purposes and criteria associated with an effective performance management system.

LO3: Compare the major performance management methods and sources of information.

LO4: Explain how to minimize rating errors and effectively provide performance feedback.

LO5: Discuss some of the legal, ethical, and privacy issues that impact performance management.

INTRODUCTION: Improving Performance Management at Kronos • Kronos shifted their focus on managers’ leadership skills to help improve engagement.

• Four key measures included: open and honest communication, encouragement of employee development, employee empowerment, and holistic support of employees.

• Managers reported that they found the results helpful.

• Company reported improvements to management, employee retention and employee turnover.

PERFORMANCE MANAGEMENT Performance management - process through which managers ensure employees’ activities and outputs contribute to the organization’s goals.

• Requires: -- Knowing what activities and outputs are desired -- Observing whether they occur -- Providing feedback to help employees meet expectations • Tells top performers that they are valued • Encourages communication between managers and employees • Establishes uniform standards for evaluating employees • Helps organizations identify highest performers Steen, HRM 6ce © McGraw Hill, 2023 IM 1-81

• Answers employee questions: “What do you expect of me?” and “How am I doing to meet expectations?”

The Process of Performance Management Reference Figure 7.1 An effective approach to performance management moves beyond the traditional approach - which focuses primarily on performance appraisal: • Defining performance outcomes for company and developing employee goals, behaviour, and actions (steps 1 and 2) - the goals, behaviours, and actions should be measurable and become part of the employee’s job description.

• Organization support (step 3) includes providing employees with training, resources, and tools, as well as ongoing feedback.

• Evaluating performance (step 4) - include the formal performance appraisal(s).

• Identifying how to capitalize on strengths and address weaknesses, if any (step 5).

• Providing consequences for achieving (or failing to achieve) (step 6) - e.g., pay increases, bonuses, or action plans.

PURPOSES OF PERFORMANCE MANAGEMENT Three Key Purposes: 1. Strategic • Helps the organization achieve its business objectives.

• Links employees’ behaviour with the organization’s goals.

• Starts with defining what the organization expects from each employee and measures each employee’s performance relative to those expectations.

2. Administrative • Provides information for day-to-day decisions about salary, benefits, recognition, employee retention, termination, hiring, etc.

• Supports decisions e.g., hiring so managers may feel uncomfortable when the performance appraisal is negative 3. Developmental • Serves as the basis for developing employees’ knowledge and skills • Makes employees aware of their strengths and areas for improvement • Discussion can uncover sources of problems and identify areas to improve

CRITERIA FOR EFFECTIVE PERFORMANCE MANAGEMENT 1. Fit with strategy • Should aim at achieving employee behaviour and attitudes that support the organization’s strategy, goals, and culture.

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2. Validity • Refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

• Minimizes contamination - information that is gathered but irrelevant.

• Minimizes deficiency - information that is not gathered but is relevant.

• Reference Figure 7.2 3. Reliability • Consistency of the results that the performance measure will deliver • Interrater reliability - of results when more than one person measures performance • Test-retest reliability - consistency of results over time.

4. Acceptability • Must be acceptable to the people who use it.

5. Specific feedback • Performance measures should specifically tell employees what is expected of them and how they met those expectations - may also mean the performance measure can be defined in quantitative terms.

METHODS FOR MEASURING PERFORMANCE Reference Table 7.1 There are a wide variety of methods for measuring performance. Methods can be grouped into two broad categories: • Making comparisons - i.e., requires the rater to compare one individual’s performance with that of others (usually involves some form of ranking).

• Rating individuals - i.e., looks at each employee’s performance relative to a uniform set of standards (usually involves evaluations that rate individual attributes, behaviours, or results.

MAKING COMPARISONS 1. Simple ranking • Requires managers to rank employees in their group from the highest performer to the lowest performer.

• Raises questions about fairness i.e., stating performance as “highest” or “lowest” does not specifically define what is effective or ineffective about the person’s contribution.

2. Forced-distribution method • Assigns a certain percentage of employees to each category in a set of categories e.g., Exceptional (5%), Exceeds expectations (20%), Meets expectations (55%), Developmental (15%), Below expectations (5%).

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Canadian organizations previously reported having guidelines or recommendation to ensure a normal distribution of performance ratings (even though they did not formally use forced distribution method).

3. Paired-comparison method • Compares each employee with each other employee to establish rankings. One point is assigned to whichever employee is the highest performer and points are totalled to determine the topranking employee - i.e., for a group of 15, the manager must make 105 comparisons—timeconsuming process.

RATING INDIVIDUALS Involves looking at each employee’s performance relative to a uniform set of standards. Measurements may evaluate employees in terms of: 1. Attributes • Graphic rating scale is the most widely used method for rating attributes (Reference Table 7.2) -- Lists attributes and provides a rating scale for each e.g., ranging from 1 for poor to 5 for distinguished.

-- Concerns about reliability because managers make different judgments about what is “excellent teamwork” or “poor communication skills”.

2. Rating Behaviours • Critical-incident method requires managers to keep a record of specific examples of the employee behaving in ways that are effective or ineffective.

• Behaviourally anchored ratings scale (BARS) builds on the critical-incident approach -- Rates behaviour in terms of a scale showing specific statements of behaviour that describe different levels of performance (Reference Figure 7.4).

• Organizational behaviour modification (OBM) - plan for managing behaviour of employees with formal system of feedback and reinforcement (Reference Figure 7.5).

3. Measuring Results • Management by objectives (MBO) is a system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization’s overall goals - these goals become the standards for evaluating each employee’s performance.

-- Goals are specific, difficult, and objective -- Managers and employees work together to set the goals -- Managers give objective feedback to monitor progress toward goals -- MBO can have a very positive effect on organizational performance -- Reference Table 7.3 • Balanced scorecard is an organizational approach to performance management that integrates strategic perspectives including financial, customer, internal processes, and learning and growth.

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-- Widely adopted approach that recognizes the importance of other goals in addition to traditional financial targets e.g., includes customer and employee satisfaction.

SOURCES OF PERFORMANCE INFORMATION Many sources of performance information may be used. People who rate performance should understand job requirements and have opportunities to see the employee doing the job. Relying on one person poses problems so some organizations use a multi-rater or 360-degree performance appraisal that combines information from most or all possible sources: 1. Managers and Supervisors • The most-used source of performance information.

• Managers/supervisors usually have enough opportunity to observe their employees and have extensive knowledge of the job requirements.

2. Peers • For some jobs, peers (co-workers) may have the most opportunity to observe the employee in day-to-day activities and have expert knowledge of the job requirements.

3. Direct Reports • People reporting to the manager often have the best chance to see how well a manager treats employees.

• Because of power differences may prefer to provide feedback anonymously.

4. Self • Self-ratings are rarely used alone but they can contribute valuable information - usually used before the feedback session.

5. Customers and Clients • The customer or client may be the only person who directly observes the job performance of the employee so may be the best source of information.

• Crowdsourcing performance appraisals is a variation of 360-degree performance appraisal— gathers and uses data from various sources e.g., through the use of an online app.

ERRORS IN PERFORMANCE MEASUREMENT Research consistently reveals that humans have tremendous limitations in processing information.

Because we are so limited, we often use “heuristics,” or simplifying mechanisms, to make judgments, whether about investments or about people. These heuristics, which appear often in subjective measures of performance, cause unconscious bias, which can lead to rater errors and incorrect attributions or reasons we use to explain an employee’s performance.

• Unconscious bias - judgment outside our consciousness that affects decisions based on background, culture, and personal experience.

TYPES OF RATING ERRORS 1. Similar-to-me error • People who are similar to the rater (e.g., race, gender, background) receive higher ratings.

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2. Contrast error • Caused by comparing employee’s performance to co-workers rather than to an objective standard.

3. Errors in distribution • Leniency error - assigning inaccurately high ratings to all employees.

• Strictness error - giving low ratings to all employees i.e., holding them to unreasonably high standards.

• Central tendency - all employees receive average/ middle ratings regardless of performance.

4. Halo & Horns • Halo error - rater gives employee high ratings on all aspects because of an overall positive impression.

• Horns error - rater gives employee low ratings on all aspects because of an overall negative impression.

5. Recency emphasis • Occurs when an annual (or longer-term) rating is based only on most recent work performed.

WHAT CAN BE DONE TO REDUCE ERRORS? Usually, people make performance rating errors unintentionally, especially when the performance criteria are not specific.

• Rater error training - attempts to make managers aware of rating errors and helps them develop strategies for minimizing those errors.

• Rater accuracy training - attempts to emphasize the multidimensional nature of performance and to get raters to understand and use the same idea of high, medium, and low performance when making evaluations.

• Unconscious bias training - focus on helping employees become aware of unconscious bias and reducing its impact.

• Calibration meetings - meetings at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.

• Using data analytics and analysts - analysts using analytic software can find patterns in what employees do.

• Ratee training - to improve both rating accuracy and acceptance of the performance management system.

EFFECTIVE PERFORMANCE FEEDBACK • Feedback should be given frequently, not once a year - performance feedback should be a regular, expected activity; generational differences impact what is considered “timely” feedback.

• Create the right context for the discussion - managers should be well-prepared and free from distractions; approach feedback sessions with a mindset of curiosity, appreciation, and openness to creating dialogue.

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• Ask the employee to rate their performance before the session - e.g., ask employee to complete a self-assessment.

• Have on-going collaborative conversations - adopting a coaching culture.

• Provide balanced, accurate feedback that emphasizes behaviour and goal setting - include areas in which the employees’ performance met-exceeded-fell short of expectations, problem-solving approach for gaps.

PERFORMANCE IMPROVEMENT The most effective way to improve performance varies according to the employee’s ability and motivation: • Lack of ability - manager may offer training, detailed feedback, re-structure job.

• Lack of motivation - explore ways to demonstrate employee is valued.

• Lack of both - employee may not be a good fit for job or the organization.

Performance improvement plan - summary of performance gaps and includes an action plan mutually agreed to by the employee and manager with specific dates to review progress.

LEGAL, ETHICAL & PRIVACY ISSUES Legal Issues • Allegation performance management system discriminated against employees on the basis a protected ground e.g., age or sex.

• Unjust or constructive dismissal—usual claim is that the person was dismissed for reasons apart from what the employer states.

Ethical and Privacy Issues • Global positioning (GPS) systems; software that analyzes and tracks employee behaviour; wearables may track and provide wide range of information.

Summary • Identify the activities involved in performance management.

• Describe the purposes and criteria associated with an effective performance management system.

• Compare the major performance management methods and sources of information.

• Explain how to minimize rating errors and effectively provide performance feedback.

• Discuss some of the legal, ethical, and privacy issues that impact performance management.

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Critical Thinking Questions 1. What do you think is the most important step shown in the performance management process?

Explain your answer. (LO1) Answer: Student answers will vary but should connect directly to Figure 7.1 which provides steps in the performance management process.

2. Give two examples of an administrative decision that would be based on performance management information. Give two examples of developmental decisions based on this type of information. (LO2) Answer: Administrative purposes of performance management refer to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Suggested responses for the administrative decisions may include deciding the percentage of hourly wage to offer as a pay increment and deciding which benefits to offer employees in a flexible benefits plan.

Developmental purposes of performance management serve as a basis for developing employees’ knowledge and skills. Suggested responses for the developmental decisions may include requiring an employee to attain higher education for his or her job and sending the employee to another facility to learn the operation of a specific piece of equipment.

3. Consider how you might rate the performance of three instructors from whom you are currently taking a course. (If you are currently taking fewer than three courses, consider this one and two you recently completed.) (LO3) a. Would it be more difficult to rate the instructors' performance or to rank their performance?

Why? b. Prepare two items to use in rating the instructors—one each to rate them in terms of a behaviour and an outcome. c. Which measure in (b) do you think is most valid? Most reliable? Why? d. Many universities and colleges use surveys or questionnaires to gather data from students about their instructors’ performance. Would it be appropriate to use the data for administrative decisions? Developmental decisions? Other decisions? Why or why not?

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Answer: The responses provided to this question by the individual students will vary. However, all responses provided to this question should demonstrate a clear understanding of the chapter material and its concepts.

4. Do you think performance ratings are necessary? Why or why not? (LO3) Answer: Decreased focus on ratings and rankings is one of the ways that performance management has changed. Student answers will vary but students should be encouraged to reflect on whether performance management can achieve its strategic, administrative, and developmental purposes in the absence of ratings. Instructor can reference Table 7.1 which compares methods in terms of four criteria for effective performance management.

5. Explain what fairness has to do with performance management. (LO4) Answer: Student responses will vary but should relate to chapter content that provides connections to effective and objective performance processes that are free from bias.

6. Why might a manager unintentionally distort performance ratings or the reasons used to explain an employee’s performance? What would you recommend to minimize this problem? (LO4) Answer: Appraisal politics refer to evaluators purposefully distorting a rating to achieve personal or company goals. To minimize appraisal politics, it will be helpful to consider addressing the fundamental reasons why appraisal politics occur e.g., appraisal politics are most likely to occur when raters are accountable to the employee being rated, there are competing rating goals, or a direct link exists between performance appraisal and highly desirable rewards. Also, appraisal politics are likely to occur if top executives tolerate distortion or are complacent toward it.

7. Describe a time when you received performance feedback that resulted in you feeling valued. What aspects of effective performance feedback discussed in this chapter contributed to this positive feedback experience? (LO4) Answer: The students may provide a variety of responses. Responses should demonstrate an understanding of chapter concepts including recommendations provided e.g., feedback should be frequent; create the right context for the discussion; ask the employee to rate their performance in advance; have on-going collaborative conversations; and provide balanced accurate feedback that emphasizes behaviour and goal setting.

8. How can the use of artificial intelligence enhance the performance management process? What concerns or issues could arise? (LO5) Answer: The use of artificial intelligence can enhance the performance management process by enabling timely delivery of feedback from a few or many other people e.g., “crowdsourcing”—a technology-enabled variation of 360-degree performance feedback.

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Other applications of technology to performance management include the growing use of systems that track and monitor employees’ location and behaviours (e.g., wearables) in the effort to enhance performance and mitigate safety and other risks. Critics argue that employees are experiencing unwarranted surveillance that reduces productivity and motivation, demoralizes employees, and creates unnecessary stress.

9. Suppose you are an HR professional helping to improve the performance management system of a company that sells and services office equipment. The company operates a call centre that takes calls from customers who are having problems with their equipment. Call centre employees are supposed to verify that the problem is not one the customer can easily handle (for example, equipment that will not operate because it has come unplugged). Then if the problem is not resolved over the phone, the employees arrange for service technicians to visit the customer. The company can charge the customer only if a service technician visits, so performance management of the call centre employees focuses on productivity-—how quickly they can complete a call and move on to the next caller. To measure this performance efficiently and accurately, the company uses electronic monitoring. (LO5) a. How would you expect the employees to react to the electronic monitoring? How might the organization address the employees’ concerns? b. Besides productivity in terms of number of calls, what other performance measures should the performance management system include? c. How should the organization gather information about the other performance measures?

Answer: While electronic monitoring provides detailed, accurate information, employees may find it demoralizing, degrading, and stressful. Employees are more likely to accept electronic monitoring if the organization explains its purpose and links, it to help in improving performance.

Other performance measures that the performance management system should include may be rating the individual attributes of the employees as well as the behaviors those employees exhibit.

The organization may gather information about the other performance measures through research and practical application and experience with those measures.

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CASE STUDY: EVIDENCE-BASED HRM ENCOURAGING FREQUENT AND PRODUCTIVE PERFORMANCE CONVERSATIONS Case Summary: This case explores how multimedia and creativity software products company, Adobe Systems Inc., transformed their performance management system. Changes included abandoning annual ratings and introducing Check-In, a new system that emphasizes ongoing feedback. Discussion also focuses on the organizational results and outcomes that Adobe has reported.

Answers to Questions: 1. What steps should managers take to ensure that performance discussions are effective?

Student responses should reflect and connect to the recommendations provided in the chapter e.g., feedback should be frequent; create the right context for the discussion; ask the employee to rate their performance in advance; have on-going collaborative conversations; and provide balanced accurate feedback that emphasizes behaviour and goal setting.

2. What are the benefits and potential disadvantages of more frequent performance discussions between managers and employees?

Student responses will vary but should reflect chapter concepts.

3. Which purpose of performance management will be more difficult to achieve for companies like Adobe that decide to eliminate ranking or rating employee performance?

The administrative purpose of a performance management system refers to how organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Performance management ratings and rankings support these administrative decisions.

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performance management system to objectively support decision making related to employee retention, termination for poor performance, and hiring or layoffs.

CASE STORY: EYE ON TECHNOLOGY APPS MAKING GIVING AND RECEIVING FEEDBACK QUICK AND EASY Case Summary: This case describes how social media has accustomed individuals to receiving immediate feedback. As a result, waiting weeks or months for performance feedback is too long. Companies have adopted various apps such as Impraise, Reflektive, and Engagedly to help provide more immediate feedback to their employees. Some apps also provide dashboards that show progress toward goals and even tabulate data for formal performance appraisals.

Answers to Questions: 1. Would you expect co-workers’ feedback on an app to be mostly helpful or unhelpful? Why? Student responses will vary. Instructors will find that most students will express concerns with coworker feedback. While some may express the feedback as being helpful, as it comes form peers, most will be concerned over the validity of the feedback. Students may identify similar concerns raised in the case: many workers used the app in a dysfunctional way by encouraging peers to comment negatively on the same co-worker or to heap high praise on each other; also, some employees felt sabotaged by negative comments by unidentified colleagues. Therefore, caution is required to ensure a positive and constructive approach.

2. Would you expect managers’ feedback to be mostly helpful or unhelpful? Why? Student responses will vary. Instructors should encourage thoughtful discussion about the benefits of gaining more immediate feedback from manager through the apps. Students may express concerns about the lack of the in-depth conversations that may result from these apps. While the feedback is immediate, more detail and insight will be missing. Ideally, for feedback to be helpful, it should include a combination of both app based and in-person conversations.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 7: A Strengths-based Approach See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 8: Total Rewards Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Discuss how organizations implement a “total rewards” approach to compensating and rewarding employees.

LO2: Identify the kinds of decisions and influences involved in providing base pay to employees.

LO3: Describe how organizations recognize individual, team, and organizational performance with incentives.

LO4: Summarize the role of employee benefits and the types of benefits offered by employers.

LO5: Review the importance and context for effectively communicating the organization’s total rewards.

LO6: Examine the issues related to compensating and rewarding executives.

INTRODUCTION: Starbucks Expands Total Rewards • • • •

Starbucks offers Lifeworks to all it’s 24,000 Canadian employees.

Access critical support services including short term 24/7 counselling and financial advice.

Full time and part time employees are eligible for health and dental benefits.

Company sponsored retirement savings plans including Bean Stock (company stock at a discounted rate).

TOTAL REWARDS Total Rewards is a comprehensive approach to compensating and rewarding employees: • Creates a total value proposition for current and prospective employees - considers the total value they receive for contributing their time and energy to the company.

• Compensation, benefits, and the work experience have a major impact on employee attitudes and behaviours - total rewards influence what kinds of employees are attracted to (and remain with) the organization.

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• Top rewards activities and priorities include: maintaining competitive position; reviewing strategy and ensuring alignment with business objectives; retaining talent; connecting pay and performance; attracting talent; ensuring internal equity; communicating rewards to employees; and containing benefits costs.

TOTAL COMPENSATION Total compensation includes all types of financial rewards and tangible benefits, and services employees receive as part of their employment: • Direct compensation - financial rewards employees receive in exchange for their work.

• Indirect compensation - the benefits and services employees receive in exchange for their work.

DECISIONS ABOUT BASE PAY Human resources professionals develop the pay structure based on legal requirements, market forces, and the organization’s goals, such as attracting a high-quality workforce and meeting principles of fairness.

Pay structure consists of: • Job structure - the relative pay for different jobs within the organization i.e., establishes relative pay among different functions and different levels of responsibility e.g., difference in pay between an entry-level accountant, and an entry-level assembler.

• Pay level - the average amount (including wages, salaries, and bonuses) the organization pays for a particular job.

• Pay Structure - Together job structure and pay level establishes pay structure—helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talent. Establishing a pay structure simplifies the process of making decisions about individual employees’ pay by grouping employees with similar jobs.

LEGAL REQUIREMENTS 1. Human Rights legislation • Employers may not base differences in rewards on an employee’s age, sex/gender, race, or other protected grounds of discrimination. Any differences in pay must be tied to business considerations such as job responsibilities or performance.

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• Attempts to address the wage gap between female and male-dominated jobs to ensure that jobs of equal value within the organization receive similar rates of pay.

4. Pay Transparency legislation (provincially regulated employees in Ontario) • Must include salary information in advertised jobs; job candidates cannot be asked about pay; cannot discipline employees for discussing pay.

ECONOMIC INFLUENCES ON PAY 1. Product Markets • Organizations must keep costs low enough so that they can sell their products profitably.

• Includes organizations that offer competing goods and services—competing to serve the same customers.

• May respond to pressure to cut labour costs by reducing staff levels, freezing pay levels, postponing hiring decisions, or requiring employees to pay a greater share of benefits costs.

2. Labour Markets • Organizations must be able to attract workers in a competitive labour market.

• Organizations compete with other firms to hire the same skilled employees.

PAY LEVEL: DECIDING WHAT TO PAY • There is a range within which organizations can make decisions—when organizations have a broad range for decisions about pay, they can choose to pay at, above, or below the rate set by economic forces.

• An organization may gain an advantage by using higher pay as an investment in superior human resources i.e., an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce.

• Gathering information about market pay - organizations use: -- Benchmarking—a procedure in which an organization compares its own practices against those of successful competitors.

• Judging pay fairness—it is important to keep in mind employees’ perceptions about fairness (based on equity theory).

-- Employees compare their ratio of outcomes and inputs with others’ outcome/input ratios and make a judgement that the result is fair (or not). Employees share pay information on social media and sites like Glassdoor.

JOB STRUCTURE: RELATIVE VALUE OF JOBS Job evaluation is an administrative procedure for measuring the relative internal worth of the organization’s jobs: • Usually, the organization assembles and trains a job evaluation committee—usually includes an HR professional and perhaps an external consultant.

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• The committee identifies each job’s compensable factors—the characteristics of the job that the organization values and chooses to pay for e.g., skill, effort, responsibility, and working conditions.

• Provides the basis for decisions about relative internal worth—value of the job within the organization.

• The organization may limit its pay survey to jobs considered key jobs.

PAY STRUCTURE: PUTTING IT ALL TOGETHER Pay structure reflects the decisions about how much to pay (pay level) and the relative value of each job (job structure). Should reflect market forces, organizational goals, and the relative contribution of each job to achieving those goals.

• Pay Rates -- Pay may be stated as an hourly wage (rate of pay for each hour worked); piecework rate (a rate of pay for each unit produced); or a salary (rate of pay per month or year).

-- Pay policy line is a graphed line showing the mathematical relationship between job evaluation points and pay rate.

• Pay Grades -- Many organizations group jobs into pay grades—sets of jobs having similar worth or content, grouped together to establish rates of pay.

• Pay Ranges -- Usually, organizations want flexibility in setting pay for individual jobs.

-- A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade or band.

ALTERNATIVES TO JOB-BASED PAY •

Broadbanding may provide an organization with greater flexibility. By reducing the number of levels in the organization’s job structure, managers acquire more flexibility in making assignments and awarding pay increases.

-- Reduces opportunities to promote employees but provides administrative flexibility for employees to make lateral career moves.

• Competency-based pay systems are pay structures that set pay according to the employees’ levels of skill or knowledge and what they are capable of doing.

-- Encourages a climate of learning, however, it rewards employees for acquiring skills but does not provide a way to ensure that employees can use their skills i.e., organizations may be paying for skills that are not used.

INCENTIVE PAY Organizations have wide discretion in setting performance-related pay, called incentive pay or pay for performance.

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• Incentive pay can be tied to individual performance, profits, or other factors of success.

• Incentive pay plans must be well-designed if they are to motivate employees to contribute to the organization’s success.

PAY FOR INDIVIDUAL PERFORMANCE 1. Piecework Rates • Wage based on the amount produced—rewards above-average production volume.

2. Standard Hour Plan • Incentive plan that pays workers extra for work done in less than a pre-set “standard time”.

3. Merit Pay • A system of linking pay increases to ratings on performance appraisals.

4. Performance Bonuses • Unlike merit pay, are not rolled into base pay—the employee must re-earn them during each performance period.

5. Commissions • Pay calculated as a percentage of sales.

PAY FOR TEAM PERFORMANCE 1. Gainsharing • Team incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees.

2. Team Bonuses and Awards • Often used for smaller work groups to reward the members for attaining specific goals—usually measured in terms of physical output.

PAY FOR ORGANIZATIONAL PERFORMANCE 1. Profit Sharing • Incentive pay in which payments are a percentage of the organization’s profits and do not become part of the employees’ base salary.

• May encourage employees to think more like owners i.e., more likely to cooperate and less likely to focus on narrow self-interest.

2. Stock Ownership • Makes employees part owners of the organization • Stock Options - the right to buy a certain number of shares of stock at a specified price— traditionally granted to executives but in recent years, eligibility has been extended more widely in many organizations • Employee Stock Ownership Plan (ESOP) - an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust - most common form of employee ownership. e.g., WestJet’s Share Purchase program

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• Employees at almost every organization receive a package of employee benefits i.e., compensation in forms other than cash (indirect compensation).

• Benefits contribute to attracting, retaining, and motivating employees.

• Like other forms of compensation and rewards, benefits impose significant costs and are a major part of compensation packages.

-- Laws require employers to provide certain benefits e.g., CPP and EI. -- Tax laws can make benefits favourable—usually income tax exempt.

-- Creative benefits packages set employers apart when competing for talent.

BENEFITS REQUIRED BY LAW 1. Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) • A contributory mandatory plan that provides retirement pensions, disability benefits, and survivor benefits.

• Contributory plan--all costs of the plan are funded by employees, employers, and the plan’s own investments.

2. Employment Insurance (EI) • Federally mandated program to provide temporary financial assistance to unemployed workers— covers a variety of situations.

3. Workers’ Compensation Acts • Provincial programs that provide benefits to workers who suffer work-related injuries or illnesses—entirely funded by employers.

• Operates under a principle of no-fault liability.

OPTIONAL BENEFITS PROGRAMS 1. Paid Leave • Employment/labour standards legislation outlines minimum vacation entitlements and paid holidays.

• Many organizations offer additional days off, sick leave programs and other forms of paid and unpaid leave e.g., personal days, floating holidays, etc.

2. Group Insurance and Benefits • Medical Insurance typically covers medical expenses incurred over and above provincially funded medical coverage e.g., dental care, vision care, prescription drug coverage.

-- Health spending account - the employer sets aside a specific amount of money per employee to cover health-related costs.

-- Employee wellness program - a set of communications, activities, and facilities designed to change behaviours in ways that reduce risks - may include health as well as financial wellness.

• Employee Assistance Plan (EAP)--confidential counselling services for employees experiencing personal problems - usually extended to family.

• Life Insurance may be provided to employees or may be offered at low group rates.

• Disability Insurance provides protection again loss of income.

-- Short-term disability insurance - insurance that pays a percentage of a disabled employee’s salary for six months or less.

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-- Long-term disability insurance - insurance that pays a percentage of a disabled employee’s salary after an initial period and potentially for the rest of the employee’s life.

3. Retirement Plans • Phased retirement is of growing interest to many employees - provides for gradual transition into full retirement by reducing hours or job responsibility.

• Defined benefit plan - a pension plan that guarantees a specified level of retirement income based on years of service, age, and earnings, dominant type of plan in the public sector.

• Defined contribution plan - a retirement plan that specifies the contributions made by the employer as well as the employee; pension benefits are based upon the accumulated contributions and investment returns achieved; growing use in the private sector.

4. Family-Friendly Benefits & Services • Examples include child and/or elder care, maternity and parental leave top-ups, adoption assistance, etc.

• Value accrues to employees as well as employers in the form of increased productivity, enhanced commitment, and reduced stress.

5. Other Benefits • Many other types of benefits are provided by employers e.g., tuition reimbursement.

SELECTING EMPLOYEE BENEFITS • Organizations can address differences in employees’ needs and engage their employees by offering flexible benefits plans in place of a single benefits package for all employees.

• Flexible benefits plan - a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want.

-- Advantages - employees become more aware of the value of the benefits and can match needs to the company’s benefits increasing the value of the plan to the employees.

-- Disadvantages - higher administration costs especially during design and start-up and because employees can select the kinds of benefits they need and expect to use the most - costs to the organization increase.

COMMUNICATING TOTAL REWARDS TO EMPLOYEES Communication is often a “weak link.” A comprehensive communications strategy helps employees understand the total value the organization is investing in its approach to compensating and rewarding employees.

• Managers play a significant role in communication because they have daily interactions with employees - HR needs to prepare managers for this role.

• More employers are using technology to provide employees with tools and information related to communication and administration of rewards.

• Many options for communicating - employers should combine several media.

• Generational groups may have different preferences.

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EXECUTIVE COMPENSATION & REWARDS The media has drawn public attention to executive compensation and rewards—issue attracts attention because of the very high pay that top executives receive. Executive pay is relevant to pay structure in terms of equity theory (relative to the pay of “average worker”).

• Some justify high CEO pay due to comparison to other rare talent e.g., sports and entertainment.

• CEO pay is increasingly moving away from salary to incentives.

-- Base pay is a small portion of executive total rewards.

-- Short-term incentives include bonuses based on the year’s profits, return on investment or other measures related to the organization’s goals.

-- Long-term incentives include stock options and stock purchase plans.

-- Executive benefits and services may be significant e.g., company-provided homes, memberships, company cars, etc.

• Performance Measures for Executives -- Balanced scorecard approach is useful in designing executive pay.

Summary • Discuss how organizations implement a “total rewards” approach to compensating and rewarding employees.

• Identify the kinds of decisions and influences involved in providing base pay to employees.

• Describe how organizations recognize individual, team, and organizational performance with incentives.

• Summarize the role of employee benefits and the types of benefits offered by employers.

• Review the importance and context for effectively communicating the organization’s total rewards.

• Examine the issues related to compensating and rewarding executives.

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Critical Thinking Questions 1. Some individuals evaluate prospective employers’ job offers based only on direct pay considerations.

What additional factors should be considered when evaluating job offers from employers? (LO1) Answer: Other factors that an employee should consider include any plans that reward performance e.g., incentives and stock ownership, benefits and services extended as a condition of employment as well as elements such as the value placed on work-life balance and access to development and career opportunities.

2. What is your take on the recent legal developments discussed in this chapter, for example, pay transparency and the right to disconnect? What are the risks and rewards associated with these developments? (LO1) Answer: Student responses will vary. Students should support their opinions using chapter concepts and referencing key elements of the relevant legislation: Employment Standards Act, Pay Equity Legislation, and Right to Disconnect Legislation. The discussion about risks and rewards will vary based on students’ opinions and experiences. Instructors can reference “HR How-To” to encourage a further discussion about pay transparency.

3. Why might an organization choose to pay employees more than the market rate? Why might it choose to pay less? What are the consequences of paying more or less than the market rate? (LO2) Answer: Organizations may choose to pay more than the market rate to attract the most talented and desired candidates. They may pay less than the market rate due to financial difficulties or because the wage level is less in the working area. The consequences of paying more or less than the market rate are the possibilities of creating financial hardships for the organization and not being able to attract and retain top talent for the organization.

4. What are the advantages of establishing pay ranges rather than specific pay levels for each job? What are the drawbacks of this approach? (LO2) Answer: Pay ranges offer organizations some flexibility in setting pay for individual jobs. It allows organizations to pay the most valuable employees the highest amounts and to give rewards for performance. Also, it balances conflicting information from market surveys and job evaluation.

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However, the organization may find that a few employees are being paid at rates above or below the range for their jobs.

5. With some organizations and jobs, pay is primarily wages or salaries, and with others, incentive pay is more important. For each of the following jobs, state whether you think the pay should emphasize base pay (wages and salaries) or incentive pay (bonuses, profit sharing, and so on). Give a reason for each. (LO3) a. An accountant at a manufacturing company b. A salesperson for a software company c. A mechanic for a major airline d. A recruitment specialist for the federal government Answer: The responses provided by the students will vary contingent upon their personal viewpoints. However, all responses provided should adequately indicate the students’ understanding of base pay versus incentive pay. Base pay is the wage received by various employees for acceptable levels of performance. On the other hand, organizations select forms of incentive pay to energize, direct, or control employees’ behaviour. It is influential because the amount paid is linked to predefined behaviours or outcomes 6. Why do some organizations link incentive pay to the organization’s overall performance? Is it appropriate to use stock performance as an incentive for employees at all levels? Why or why not? (LO3) Answer: Organizational-level incentives can motivate employees to align their activities with the goals of the organization. It would only be appropriate to use stock performance as an incentive for employees at all levels if all employees have access to corporate stock ownership. However, it must be remembered that employees may develop a focus so much on stock price that they lose sight of other goals including ethical behaviour.

7. Why do employers provide benefits, rather than providing all employee compensation in the form of pay and letting employees buy the benefits they want? (LO4) Answer: Employers provide employee benefits for several reasons including: (1) legal requirements create mandatory obligations on employers to provide benefits, such as employment insurance, (2) employers desire to provide certain benefits to employees at rates that are less expensive than individual employees could secure them, such as group health insurance, (3) not all employees are motivated and energized by the same thing, such as money, and (4) employers wish to assemble creative benefits packages to provide them a competitive advantage in attracting and retaining talent.

8. Of the benefits discussed in this chapter, list the ones you consider essential—those benefits you would require in any job offer. Why are these benefits important to you? (LO4) Steen, HRM 6ce © McGraw Hill, 2023 IM 1-103

Answer: The responses provided by the students will vary contingent upon their personal viewpoints.

9. Why is it important to communicate information about total rewards? Suppose you work in the HR department of a company that has decided to add employee financial wellness counselling services to its total rewards. How would you recommend communicating this change? What information should your messages include? How would you know if your communication strategy was successful? (LO5) Answer: Benefits are a way to attract, retain, motivate, and energize employees. The employees should be well informed of the benefits offered so they can appreciate their value. Communication is critical since a great deal of money is spent on benefits, yet often employees neither understand the benefits nor their costs.

Most communication programs are in written form. Some alternative techniques include brochures, question and answer meetings, online total rewards statements, intranet pages, social media, etc.

The positive result may be an informed and satisfied work force with a lower turnover rate. The information included in messages to employees should describe the benefit, how to use it effectively, and its cost and why it is being offered to the employee in the first place.

10.

In a typical large corporation, the majority of the chief executive’s pay is tied to the company’s stock price. What are some benefits of this pay strategy? Some risks? How can organizations address the risks? (LO6) Answer: Students may acknowledge that chief executives are responsible for leading the organization and as a result, should think and act like owners. This logic may lead some students to defend that the executive compensation should be tied to the company’s stock price/ performance.

Further consideration may be given to ethics and concepts such as power, transparency, and accountability. However, some students may acknowledge risks associated with compensation that is heavily tied to performance pay plans. These risks include factors that may be out of the executives’ control. Organizations can address these risks by ensuring total compensation decisions are carefully established by individuals who have the acumen and insight.

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CASE STUDY: EVIDENCE-BASED HRM IMPROVING THE QUALITY AND REDUCING THE COST OF EMPLOYEE HEALTH BENEFITS Case Summary: This case scenario considers how organizations are using data and technology to improve the quality and reduce the cost of employee health benefits.

Answers to Questions: 1. As an employee, what would your reaction be to these initiatives? Explain.

Responses will vary, however students should be able to identify both employee and employer interests related to health benefits e.g., employees are likely to seek benefits that flexibly align with and support their current and future needs, while not invading unnecessarily on perceived privacy rights. Additionally, employers will place priority on reducing benefits costs.

2. Do you have ideas for other ways to use data to improve the cost effectiveness and quality of healthrelated employee benefits?

This is also likely to be a varied discussion, with students demonstrating the ability to consider evidence-based approaches to meet organizational and employee priorities associated with employee health benefits.

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CASE STORY: EYE ON TECHNOLOGY SOCIAL MEDIA MEASURES FOR A BALANCED SCORECARD Case Summary: This case explores the potential for adopting social media measures to performance-related pay systems at a major hotel chain. Since social media participation is still considered a new activity, organizations are still learning what to measure and reward. The key starting point involves establishing business goals and then considering how social media can support these goals.

Answers to Questions: 1. Suppose a hotel chain decided to add social media responsiveness to a balanced scorecard for its marketing and customer-service managers. What percentage of total compensation do you think should be based on this score? Why? Student recommendations will vary but they should connect the job responsibilities with the percentage. This would be done better by using a breakdown of time spent on social-media and the potential impact that is has on performance. Students should also identify whether the managers have direct impact on the outcome, if it is just simple answering, and whether this change would be perceived as fair and equitable.

To facilitate further discussion about the impact of performance-based pay systems may have, instructors may refer to “HR Oops! Incentivizing Stress”.

2. Many marketers have not yet shown results from the use of social media. Do you think linking rewards to social media results would correct this problem? Why or why not?

Student responses should build off their response from the first question. Exampling different socialmedia accounts and the role they play in the operations and successful customer servicing of business would help to provide a better link to rewards and pay.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 8: What is Family?

See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 9: Labour Relations Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Discuss the role of unions and the overall context for labour relations.

LO2: Identify the labour relations goals of management, unions, and society.

LO3: Summarize laws and regulations that affect labour relations.

LO4: Describe the union organizing process.

LO5: Explain how management and unions negotiate and administer collective agreements.

LO6: Describe more cooperative and collaborative approaches to labour relations.

INTRODUCTION: A Historic National Agreement • Uber Canada and UFCW Canada reached an agreement which provides Canadian drivers and delivery people with representation to resolve disputes without unionization.

• The agreement does not unionize the workers however, it provides them with representation.

• Jointly advocate for industry-wide legislative standards for workers in the app-based sector to help improve their working conditions (i.e., minimum wage guarantees, benefits fund etc.).

ROLE OF UNIONS & LABOUR RELATIONS Most workers act as individuals to select jobs and negotiate the terms of their work conditions. When workers believe their needs are not being met by management they may decide to act collectively and form and join a union.

• Unions - organizations formed for the purpose of representing their members and resolving conflicts with employers.

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• Labour relations - emphasizes skills that managers and union leaders can use to cultivate effective labour-management cooperation, minimize costly forms of conflict (such as strikes), and seek win-win solutions to disagreements.

Three levels of decisions: 1. Labour relations strategy -- Management - how the organization will work with unions or develop (or maintain) non-union operations.

-- Union - whether to resist changes.

2. Negotiating contracts -- Decisions about pay structure, job security, work rules, etc.

3. Administering collective agreements -- Day-to-day activities including issues and disagreements.

TYPES OF UNIONS & AFFILIATIONS • Craft union - labour union whose members all have a particular skill or occupation e.g., International Brotherhood of Electrical Workers (IBEW).

• Industrial union - members are linked by their work in an industry.

• Local union - basic unit - consists of unionized workers from a particular location, department etc. covered by a specific collective agreement.

-- Union steward - employee elected by union members to represent them in ensuring that the terms of the collective agreement are adhered to.

• Labour Congress - association that seeks to advance the shared interests of its member unions e.g., Canadian Labour Congress (CLC) has coverage affiliation of more than 3 million workers • Largest Unions in Canada: largest public sector union is Canadian Union of Public Employees (CUPE). United Food and Commercial Workers Canada (UFCW Canada) and Unifor, are two of Canada’s largest private sector unions.

UNIONISM IN CANADA Unionism in Canada had early ties to Britain and the first national labour organization was formed in 1873: • During the early 1900s labour activities escalated as workers demanded better wages, shorter workdays, and improved working conditions - the Winnipeg General Strike in 1919 was significant.

• Collective bargaining was first recognized in 1937.

• Legislation passed in 1967 provided collective bargaining for federal government employees • Unions were highly visible champions for workplace safety and maternity benefits during the 1960s & 1970s.

• Union membership in Canada peaked in 1994 (36.1% of workforce).

• Unionization is much higher in public sector (72%) vs. private sector (14.6%).

• Reference Figure 9.1 - Union Density.

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UNIONIZATION RATES • Union membership is most concentrated in Public Administration (75.5%); Least unionized is Professional, Scientific, and Technical Services (3.3%) - See Figure 9.2.

• Newfoundland and Labrador (38.5%) and Quebec (39.9%) have the highest rates of unionization; Alberta (25.8%) and Ontario (27.2%) have the lowest rates of unionization - See Figure 9.3.

OVERALL DECLINE IN UNION MEMBERSHIP • Changes in the structure of the economy - growth tending to align with service industries that have low levels of unionization.

• Management efforts to control costs - unionized workers tend to receive higher pay; global competition requires cost control.

• Human resource practices - adopting practices that increase employees’ commitment to their job and employer.

• Government regulations e.g., workplace safety and human rights—leaves fewer areas in which unions can show an advantage over what employers must already offer.

IMPACT OF UNIONS ON COMPANY PERFORMANCE Organizations are concerned whether unionization will hurt performance i.e., productivity, profits, and stock performance: 1. Decrease productivity?

• Due to work rules and limits on workloads set by union contracts.

• Production lost due to strikes or slowdowns.

2. Increase productivity?

• Reduce turnover by giving employees a route for resolving problems.

• Emphasis on seniority-based pay systems which encourage cooperation rather than competition.

• Reduce turnover by giving employees a route for resolving problems.

• In a unionized environment, an employer may experience more pressure to improve management practices and pay more attention to employee ideas.

GOALS OF EACH GROUP 1. Goals of Management • Increase the organization’s profits and/or increase productivity.

• Keep operations flexible to adjust activities to meet competitive challenges and customer demands - have discretion in making decisions.

2. Goals of Labour Unions • Obtaining pay, job security, and working conditions that satisfy members.

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• Give members a voice in decisions that affect them.

• The more members the greater the union’s power and financial resources.

3. Goals of Society • Overall societal goals include having neutral rules to ensure balance is maintained between the powers of unions and employers.

Reference Table 9.1 for Top Negotiation Issues

ADDITIONAL UNION GOALS AND PROVISIONS • Unlike management, which would prefer to make pay and promotion decisions based on performance differences, unions try to have any pay differences based on seniority.

• In addition to working to advance the interests of members, unions engage in social unionism— activities intended to influence social and economic policies of government e.g., Unifor’s Action Campaigns includes advocating for universal prescription drug coverage.

• Union financial security provisions: -- Rand Formula - provision that makes the payment of union dues mandatory even if the worker is not a member of the union.

-- Checkoff provision - a requirement that the employer, on behalf of the union, automatically deducts union dues from employees’ paycheques.

-- Closed shop - a person must be a union member before being hired.

-- Union shop - an employee is required to join the union within a certain amount of time after starting employment.

LAWS AND REGULATIONS AFFECTING LABOUR RELATIONS Responsibility for labour relations is primarily a provincial/territorial responsibility. A variety of labour statutes exist e.g., laws governing public sector employees and laws that apply to specific occupations determined to be essential e.g., law enforcement, firefighters, health care professionals.

The main features of labour legislation in Canada include: • Methods to certify a union.

• Requirement of the employer to recognize and accept the union.

• Responsibility to bargain in good faith with the intention of reaching an agreement.

• Requirement of the union to deduct union dues from employees.

• Minimum length of a collective agreement (at least one year).

• Regulation of strike and lockout activities.

• Creation of a labour relations board to interpret and enforce labour laws.

• Prohibition of unfair labour practices by management and labour.

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UNFAIR LABOUR PRACTICES Unfair labour practice—a prohibited conduct of an employer, union, or individual under the relevant labour legislation (Reference Table 9.2): 1. Unfair labour practices by management • Interfering in the formation of a union or contributing to it financially.

• Discriminating against an employee because the individual is or is not a member of a union.

• Discriminating against an employee because the individual chooses to exercise rights granted by labour relations law.

• Intimidating or coercing an employee to become or not become a member of a union.

2. Unfair labour practices by unions • Trying to compel an employer to bargain collectively with the union if the union is not the certified bargaining agent.

• Attempting, at the workplace and during work hours, to persuade an employee to become or not become a union member.

• Intimidating, coercing, or penalizing an individual because he or she has filed a complaint or testified in any proceeding pursuant to the relevant labour law.

• Engaging in, encouraging, or threatening illegal strikes.

• Failing to represent employees fairly.

Labour Relations Board (or similar structure) in each jurisdiction—a specialized tribunal with authority to interpret and enforce the labour laws in its jurisdiction.

WHAT IS THE UNION ORGANIZING PROCESS? • For an organizing drive to be successful, a union needs to convince a majority of workers they should receive better pay or working conditions and the union will help them do so.

• The organization process begins when union reps contact employees as part of an organizing campaign and invite them to sign an application for membership.

• By signing an application and paying a nominal fee in some jurisdictions, the employee indicates he or she wants union representation - the union will apply to the appropriate Labour Relations Board for certification.

• Decertifying a union - union members may also choose to vote out an existing union.

Decertification follows the same process as a representation election but in some jurisdictions can only be conducted during specified “open periods”.

COLLECTIVE BARGAINING Collective bargaining - negotiation between union representatives and management representatives to arrive at an agreement defining conditions of employment.

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agreement may involve a narrow group of employees in a craft union or a broad group in an industrial union.

Negotiation goes through various stages • Early stage - many more people are present as various interest groups voice their goals.

• Middle stage - each side must make a series of decisions.

• Final stage - pressure for an agreement increases.

TYPICAL PROVISIONS IN COLLECTIVE AGREEMENTS • Rights of parties - e.g., recognition of union security; management rights to test; employee rights/security.

• Organization of work - e.g., technological change; distribution of work.

• Labour relations - e.g., grievance procedures, job evaluation, use of joint committees.

• Education, training, and development - e.g., leave, tuition reimbursement, multi-skilling, apprenticeship programs.

• Conditions of work - e.g., work schedules; overtime pay; job security and termination; pay; leaves and vacations; benefits; provisions related to part-time workers (ratio of part-time to full-time; maximum hours of work).

WHAT HAPPENS WHEN BARGAINING BREAKS DOWN? • Strike is a collective decision by the union members not to work or to slow down until certain demands or conditions are met.

• Lockout is a closure of a place of employment or refusal of the employer to provide work to compel employees to agree to certain demands or conditions.

• Although most labour-management negotiations do not result in a strike or lockout, Figure 9.5 provides an historical perspective of work stoppages (1996-2021).

ALTERNATIVES TO STRIKES AND LOCKOUTS Most frequently used alternatives to strikes and lockouts rely on a neutral third party who is usually appointed by the Minister of Labour: • Mediation is the least formal and most widely used. A mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution.

• Conciliation is most often used for negotiations with government bodies. A third party reports the reasons for dispute, the views, and arguments of both sides, and possibly a recommended settlement, which the parties may decline.

• Arbitration is the most formal type of outside intervention. An arbitrator or arbitration board determines a binding settlement.

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Collective agreement administration goes on day by day and includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement: • Grievance procedure is outlined in Figure 9.6 • The process for resolving union-management conflicts over interpretation or violation of a collective agreement. The grievance may be settled during any of the four steps: -- Step 1: Employee (and union) steward discuss the problem with the supervisor -- Step 2: Putting the grievance (and management response) in writing -- Step 3: Union appeals the grievance to top management and senior labour relations staff -- Step 4: Union may decide to refer unresolved grievance to arbitration

LABOUR-MANAGEMENT COOPERATION Wider acceptance that greater cooperation is beneficial: • Employee involvement in decision-making and self-managing work teams—more likely to be effective with union support, however, unions have resisted such programs because of changing workplace relations • Effective day-to-day relationship between labour and management is critical to achieving cooperation • Joint-labour management committees have been growing in use e.g., pay; benefits; pension; business issues and updates; training; apprenticeships; job evaluation; job classification; job posting; operations; technology; hours of work; scheduling • Broadly defined jobs and sharing of financial gains and business information with employees

Summary • • • • • •

Discuss the role of unions and the overall context for labour relations.

Identify the labour relations goals of management, unions, and society.

Summarize laws and regulations that affect labour relations.

Describe the union organizing process.

Explain how management and unions negotiate and administer collective agreements.

Describe more cooperative and collaborative approaches to labour relations.

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Critical Thinking Questions 1. Why do employees join unions? Have you ever belonged to a union? If you did, do you think union membership benefited you? If you did not, do you think a union would have benefited you? Why or why not? (LO1) Answer: Employees typically join unions to ensure that they will have fair representation in disputes with management and to ensure they will have the opportunity for obtaining better pay and working conditions. Dissatisfaction with wages, benefits, working conditions, and supervisory methods may inspire employees to desire unionization.

Student responses to the balance of the questions presented in Question 1 will be contingent upon their own personal experiences and viewpoint.

2. How has union membership in Canada changed over the years? How does union membership in Canada compare with union membership in other countries? How might these patterns in union membership affect the HR decisions of a global company? (LO1) Answer: Union membership peaked in 1994 reaching 36.1 percent of employees, however, the rate of unionization has declined. The percentage of Canadian workers who belong to unions is lower than in some other countries. The HR department of a global company would have to be aware of the union contract and abide by its provisions. In other words, since these global organizations would experience more exposure to unions, they will have to be more in tune with how the union operates.

3. What are the implications of a union demonstrating commitment to pursuing social justice goals (social unionism)? Who benefits? (LO2)

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Answer: Unions often engage in social unionism beyond the workplace. Students are encouraged to explore and discuss various examples of social justice activities that unions have engaged in.

Students can be directed to various union websites to review the different activities that unions have taken on. The instructor can promote a discussion about these various and review the impact to society. Students should be encouraged to consider the benefits of these actions for the union, the workers, and for society.

4. Why do managers at most companies prefer that unions not represent their employees? Can unions provide benefits to an employer? Explain. (LO2) Answer: Some managers would prefer for their organizations not to unionize because they are skeptical of acquiring any organizational benefit from it. They may perceive the necessary dealings with unions, such as contract negotiations, as being time consuming and without benefit. Additionally, managers may find less flexibility, higher wage and benefit costs, and a negative impact on stock price and profitability.

On the other hand, having a unionized operation can offer the employer a more satisfied group of employees. Unions can have positive effects on productivity through reduced turnover and the need for less competition among the individual employees.

5. Can highly effective human resource management practices make unions unnecessary? Explain. (LO2) Answer: Students responses will vary. For example, students may point out that effective human resource management practices may provide many outcomes that employees seek in their employment relationship, however, this may still not completely replace the role of the union.

6. What legal responsibilities do employers have regarding unions? What are the legal requirements affecting unions? (LO3) Answer: Although some differences exist among jurisdictions, the main legal requirements include: • Requirement to recognize the union after it has been certified by the appropriate Labour Relations Board • Responsibility to bargain with the union with the intention to reach an agreement • Requirement to deduct union dues from employees • Not to engage in an illegal lockout • Not to engage in practices that are identified as unfair labour practices 7. “Management gets the kind of union it deserves.” Discuss. (LO3) Answer: Student responses may suggest that if management approaches the union in an adversarial way, they are likely to receive an adversarial response. For example, if management is unwilling to consider employee needs and expectations related to wages, benefits, employment security, training, etc. the union response is likely to be less cooperative and more adversarial. It would be helpful to also encourage students to review what employers can do to build cooperative Steen, HRM 6ce © McGraw Hill, 2023 IM 1-116

relationships e.g., treat employees with respect and fairness—in the effort to create a more collaborative relationship and response from the union(s) that represents the organization’s workers.

8. If the parties negotiating a collective agreement are unable to reach a settlement, what actions can resolve the situation? (LO4) Answer: Possible responses could include mediation, conciliation or utilizing arbitration methodology.

9. Why are most negotiations settled without a strike or lockout? Under what conditions might management choose to accept a strike? (LO4) Answer: In many cases, strikes are seen as not being in the best interests of either party. Management may choose to accept a strike when all other avenues, such as mediation or conciliation, have failed to resolve the labour-management conflict.

10.

What are the usual steps in a grievance procedure? What are the advantages of resolving a grievance in the first step? What skills would a supervisor need so grievances can be resolved in the first step? (LO5) Answer: There are four possible steps in a grievance procedure. These steps include: (1) the employee (and union steward) talk to the supervisor about the problem, (2) if no satisfaction is derived in step 1, the employee may put the grievance in writing (3) if the problem still remains unsolved and there is no evident contract violation, the union appeals the grievance to top management and labour relations staff, and (4) the union determines whether or not to refer the unresolved grievance to arbitration.

The advantages to resolving a grievance in the first step include a reduction in delays and an avoidance of arbitration costs. A supervisor should be “in tune” with employees and be aware of the provisions in the collective agreement. This awareness can assist the supervisor with a speedy resolution (or even prevention) of grievances.

11.

Can the presence of a union enhance employees’ experience at work? What advice would you provide to union leaders to make unionization more relevant to younger employees? (LO6) Answer: Responses will vary but students should be encouraged to consider the current negotiation issues provided in Table 9.1 as a starting point for determining relevant issues.

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CASE STUDY: EVIDENCE-BASED HRM RANDOM DRUG TESTING AT THE TORONTO TRANSIT COMMISSION (TTC) Case Summary: The Toronto Transit Commission (TTC) recently implemented random drug testing despite union opposition. Both unions and employers will seek relevant data to support their understanding of how best to define impairment and support workplace safety.

Answers to Questions: 1. What data and information do unions and employers need in order to develop effective collective agreement language related to worker impairment associated with drug and alcohol use/abuse?

Although responses will vary, students should be encouraged to consider how objective criteria about worker impairment could support the negotiation of collective agreement provisions. Review Table 9.3 to determine which typical provisions may be most relevant and whether it may be appropriate for the TTC and its union to consider establishing a joint committee on this topic to explore shared interests and the capacity for a cooperative and collaborative approach.

2. Once negotiated, what data and information do employers and unions need to assess whether collective agreement language related to drug use/abuse is supporting workplace health and safety?

Employers and unions will have a mutual interest in analyzing objective data to support strategies and decision-making. For example, sharing data arising from workplace testing and workplace safety outcomes will be helpful to support potential cooperative and collaborative approaches to provide for a safe workplace.

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CASE STORY: EYE ON TECHNOLOGY WORKER ORGANIZING AND COMPETING APPS AT WALMART Case Summary: This case describes the various developments of social media apps at Walmart. The initial app was introduced by an external group to collect personal information in effort to establish a labour organizing campaign. The subsequent app developments were initiated by Walmart to provide a central site for employee communication and scheduling. The app gave employees more control over their schedules without involving their manager. Because of this autonomy, Walmart believed that the app would help attract and retain employees, as well as assist in staying union-free.

Answers to Questions: 1. Why do you think Walmart developed its own app?

Social media and app provide many benefits for employers and their employees.

2. From a union’s perspective, what are some advantages of using social media and apps for its communications?

From a union’s perspective, using social media and apps for its communications is an effective way to efficiently share and exchange information. Social media and apps are commonly used tools for communication making it one of the fastest ways to send messages.

3. From a company’s perspective, what are the risks of encouraging employees’ use of social media and apps to communicate with one another?

Although apps make if easy to exchange and share information, there are some inherent risks in encouraging employees use social media and apps to communicate with one another. While student answers can vary on this topic, students should focus on understanding how technology is used in both personal and professional circles and how these lines can be blurred/ crossed/ or affected in Steen, HRM 6ce © McGraw Hill, 2023 IM 1-119

using social media as the main mechanism for communication. In addition, there is no guarantee that information is accurate, and it can cause miscommunication. Privacy breach is another concern that employers should consider.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 9: “Just Get Over It” See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 10: Managing Human Resources Globally Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Summarize how the growth in international business activity affects human resource management.

LO2: Identify the factors that most strongly influence HRM in global matters.

LO3: Discuss how international operations impact human resources practices including workforce planning, selection, training and development, performance management, total rewards, and labour relations.

LO4: Explain how employers manage and prepare employees for international assignments and for their return.

INTRODUCTION: Tim Hortons’ Global Growth • Tim Hortons’ global expansion has been significant.

• Since 2019, more than 400 locations have opened in China and there are plans to have at total of 2,750 locations by 2026.

• Tim Hortons also announced plans to launch 300 locations throughout India during the next ten years.

• Currently, Tim Hortons has over 5,100 locations across 13 countries (USA, Mexico, Spain, United Kingdom, Middle East, China, Thailand, and Philippines).

HRM IN A GLOBAL ENVIRONMENT • Align HRM processes and functions with global requirements.

• Adopt a global mindset including a thorough understanding of the global environment and the impact on managing people.

• HR needs to enhance its own capabilities to become a business partner.

• What is behind the trend toward expansion into global markets?

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-- Access to new markets with millions or billions of new customers; low labour costs; advances in telecommunications and information technology; trade agreements among nations.

GLOBAL TRADE ACTIVITIES • • • •

•

Global activities are encouraged by trade agreements.

Most countries in Western Europe belong to European Union (EU) and share common currency.

Canada, Mexico, and the United States have USMCA (United States-Mexico-Canada Agreement) which is a revision of the North America Free Trade Agreement (NAFTA).

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada and 10 other countries (Australia, New Zealand, Mexico, Brunei, Chile, Peru, Japan, Malaysia, Vietnam, and Singapore).

These trends and arrangements encourage international trade, they increase and change the demands on human resource management.

EMPLOYEES IN AN INTERNATIONAL WORKFORCE • Home country - country in which organization’s headquarters is located.

-- Home country nationals - employees are citizens of the home country.

• Host country - country (other than the home country) in which the organization operates a facility.

-- Host country nationals - employees who are citizens of the host country.

• Third country - country that is neither the home country nor the host country of an employer.

-- Third country nationals - employees who are neither citizens of the home country nor the host country.

LEVELS OF GLOBAL PARTICIPATION There are many ways for employers to do business globally. Figure 10.1 illustrates levels of global participation: • Domestic organization - most organizations begin by serving customers within their domestic marketplace i.e., home country and begin to enter global markets by exporting.

• International organization - an organization that sets up one or a few facilities in one or a few foreign countries.

• Multinational company - an organization that builds facilities in several different countries to minimize production and distribution costs.

• Global organization - an organization that chooses to locate a facility based on the ability to produce a product or service effectively, efficiently, and flexibly, using cultural differences as an advantage i.e., highest level of involvement in the global marketplace.

-- Requires a transnational HRM system - type of HRM system that makes decisions from a global perspective, includes managers from many countries, and is based on ideas contributed by people representing a variety of cultures.

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FACTORS AFFECTING HRM IN INTERNATIONAL MARKETS Whatever their level of global participation, organizations that operate in more than one country must recognize countries differ in terms of several factors: 1. Culture • The most important influence on international HRM - affects a country’s laws and what people value • Determines the appropriateness of various HRM practices 2. Education and Skills Levels • Countries differ in the degree to which their labour markets include people that have education and skills of value to employers • Educational opportunities vary from one country to another • Companies with foreign operations locate in countries where they can find suitable employees affects whether companies want to locate there 3. Economic System • HRM is influenced by a country’s economic system i.e., capitalist, or socialist as well as the degree the government intervenes e.g., taxes, price controls 4. Political-Legal System • A country’s government, laws, and regulations strongly impact HRM e.g., laws dictate HRM requirements related to compensation, selection, etc.

• Laws and regulations reflect the norms of culture e.g., employees in the EU are likely to have at least 4 weeks of paid vacation annually; Canada is a leader in eliminating discrimination in the workplace

WORKFORCE PLANNING IN A GLOBAL ECONOMY • Involved in decisions about the level of participation in a global economy e.g., exporter, international, multinational, or global company.

• Decisions about where and how many employees are needed for each international facility.

• Decisions about where to locate: -- Based on cost and availability of qualified workers.

-- Outsourcing considerations - often to lower-wage countries.

-- Flexibility to reduce the workforce - some countries have less flexibility than Canada to hire for peak periods then lay off workers if needs decline.

SELECTING EMPLOYEES IN A GLOBAL LABOUR MARKET Organizations fill many key international positions with home country employees and in many cases Canadian employers hire foreign nationals e.g., Canada’s Temporary Foreign Worker Program.

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Selection of employees for international assignments should reflect criteria associated with success: • Competency in the employee’s area of expertise • Ability to communicate verbally and nonverbally in the foreign country • Flexibility, tolerance of ambiguity, and sensitivity to cultural differences • Motivation to succeed and enjoyment of challenges • Willingness to learn about the foreign country’s culture, language, and customs • Support from family members

CULTURE SHOCK Disillusionment and discomfort that occur during the process of adjusting to a new culture and its norms, values, and perspectives.

Virtual expatriate - employees who manage an operation abroad without permanently locating to the country i.e., take frequent trips and use technologies to collaborate and stay in touch. The virtual expatriate will likely have a harder time building relationships.

TRAINING AND DEVELOPING A GLOBAL WORKFORCE Some special challenges related to training and development arise when an organization employs people in more than one country: • Training and development programs should be effective for all participating employees.

• When organizations hire employees to work in a foreign country or transfer them to another country, the employee needs to provide training in how to handle challenges of working there.

• Some training techniques, strategies, and media will be more effective - i.e., language and culture issues e.g., cultural dimensions influence expectations.

CROSS-CULTURAL PREPARATION Preparing employees to work across national and cultural boundaries: • Preparation for departure - language instruction; orientation to the country’s culture.

• The assignment itself - some combination of a formal program and mentoring relationship to provide ongoing further information about the country’s culture.

• Preparation for the return home - providing information about the employees’ community and home country workplace.

PERFORMANCE MANAGEMENT ACROSS NATIONAL BOUNDARIES • The general principles of performance management may apply in most countries, but specific methods may work in one country but not in another - need to consider legal requirements, local business practices, and national cultures.

• Differences may include which behaviours are rated, how and the extent to which performance is measured, who performs the rating, and how feedback is provided.

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-- e.g., Canadian employees are more used to receiving direct feedback than employees in many other countries. In Mexico, managers are expected to provide positive feedback before focusing the discussion on behaviours the employee needs to improve.

COMPENSATING AND REWARDING EMPLOYEES Decisions about pay structure, incentive pay, employee benefits, development and career opportunities and other characteristics of the work environment such as work-life balance decisions become more complex when an organization has an international workforce: • Pay structure - Market pay structures can differ substantially across countries in terms of both pay level and the relative worth of jobs • Incentive pay - international considerations need to be recognized e.g. employers are adding incentives to compensate employees working in high-risk parts of the world • Employee benefits and services - need to consider the laws of each country involved, as well as employees’ expectations and values e.g., pension plans are more widespread in parts of Western Europe than in Canada, the United States, or Japan; paid vacation tends to be more generous in Western Europe than in North America

BALANCE SHEET APPROACH TO COMPENSATION Most organizations use a balance sheet approach - adjusts the employee’s compensation so that it gives the employee the same standard of living as in the home country plus extra pay for any hardships of locating globally. Four components: 1. Base salary • Complex due to use of different currencies and shifting currency values.

• Often includes a salary premium as an incentive.

2. Tax equalization allowance • So that the worker neither gains nor loses with regard to tax liability.

3. Benefits and services • Relates to whether an employee can use the same benefits in the foreign country e.g., pension plan, and health benefits.

4. Allowance to make foreign assignment more attractive • Cost of living, relocation, housing, and education allowances, etc.

INTERNATIONAL LABOUR RELATIONS • Companies that operate across national boundaries will increasingly need to work with unions in more than one country.

• Day-to-day decisions - tend to be handled by each foreign subsidiary because of differences in laws, attitudes, economic systems, and negotiation styles.

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• Takes into account that negotiations between labour and management take place in a different social context, not just different economic and legal contexts e.g., cultural differences - different approach is required based on whether the process as primarily cooperative or competitive.

GLOBAL RELOCATION SUCCESS FACTORS • Changing business conditions and inability of the family to adjust are the top 2 reasons for assignment failure.

• Providing trailing partner career transition service may determine whether or not an international assignment is accepted.

• Cross-cultural training - what to expect in host country’s culture e.g., include details of how to behave in business settings - the ways employees behave in meetings, how employees expect managers to treat them.

• Career development activities e.g., how the foreign assignment fits into their career plans and what types of positions they can expect upon their return.

• International assignment letter - to clarify the rights and responsibilities of employee and employer.

HELPING EXPATRIATES RETURN AND MINIMIZING TURNOVER • Repatriation - the process of preparing expatriates to return home from a foreign assignment.

• Companies are increasingly discussing repatriation with employees at the time of the initial international placement.

• Culture shock takes place in reverse e.g., sometimes a decline in living standards is experienced.

• To help expatriates through the transition and ensure they stay with the company after their return include: -- Communication i.e., keep in contact with the employee.

-- Validation i.e., giving the expatriate recognition for global service.

Summary • Summarize how the growth in international business activity affects human resource management.

• Identify the factors that most strongly influence HRM in global matters.

• Discuss how international operations impact human resources practices including workforce planning, selection, training and development, performance management, total rewards, and labour relations.

• Explain how employers manage and prepare employees for international assignments and for their return.

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Critical Thinking Questions 1. Identify the home country, host country(ies), and third country(ies) in the following example: A global soft-drink company has headquarters in Halifax, Nova Scotia. It operates production facilities in Santa Cruz, Aruba, as well as Jakarta, Indonesia. The company has assigned a manager from Moncton, New Brunswick, to head the facility in Aruba and a manager from Hong Kong to manage the facility in Indonesia. (LO1) Answer: The home country is the country in which an organization’s headquarters is located. A host country is a country – other than the home country – in which an organization operates a facility. A third country is a country that is neither the home country nor the host country of an employer. In the example provided the home country is Canada the company has its headquarters there. The host countries are the Aruba and Indonesia as the organization operates facilities in both of those countries. Hong Kong is a third country as one of the managers came from there. The manager would be a home country national.

2. Think of the different levels of global participation. What companies that you are familiar with exhibit the different levels of participation? (LO1) Answer: Student answers will vary but should reflect chapter concepts that describe the differences between domestic organizations; international organizations; multinational companies; and global organizations.

3. What are some HRM challenges that arise when a Canadian company expands from domestic markets by exporting? What challenges arise when it changes from exporting to operating as an international company? When an international company becomes a global company? (LO1) Answer: HR challenges facing companies that expand into foreign markets by exporting include the need to be prepared to draw from a larger labour market that will include individuals with diverse backgrounds and education levels. As the organization continues to expand into the international marketplace, HR challenges become more intense. These challenges include deciding on choices for location and determining availability of suitable human resources. If the companies become global, there is an increased need for HRM practices that encourage flexibility and are based on an in-depth Steen, HRM 6ce © McGraw Hill, 2023 IM 1-127

knowledge of differences among countries. Global organizations must be able to recruit, develop, and retain employees who can get results across international boundaries.

4. In recent years, many Canadian companies have invested in Mexico and sent Canadian managers there in an attempt to transplant Canadian-style management. According to Hofstede, Canadian culture has low power distance, moderate uncertainty avoidance, short-term orientation, high individualism, moderate masculinity, and moderate-high indulgence. Mexico’s culture has high power distance, high uncertainty avoidance, short-term orientation, low individualism, moderate-high masculinity, and very high indulgence. In light of what you know about cultural differences, how well do you think Canadian managers can succeed using each of the following HRM practices? (Explain your reasons.) (LO2) a. Selection decisions based on extensive assessment of individual abilities b. Performance feedback and reviews based on individual performance c. Systems for gathering suggestions from workers d. Self-managing work teams e. Unlimited vacation time Answer: The responses provided by the individual students will vary, but all the responses should demonstrate comprehension of the chapter information.

5. Besides cultural differences, what other factors affect human resource management in an organization with global operations? (LO2) Answer: Some other factors affecting HRM in an international organization include: acquiring suitable human resources, selection of managers who can function in a variety of settings, and providing adequate rewards packages that take into account the different pay rates, tax systems, and costs of living.

6. Suppose you work in the HR department of a company that is expanding into a country where the law and culture make it difficult to lay off employees. How should your knowledge of that requirement affect workforce planning for the global operations? (LO3) Answer: While responses will vary, suggested answers may include: (1) development of extensive preparation for prevention of possible layoffs, (2) planning alternatives to layoffs, and (3) providing employees with job/position options.

7. Suppose an organization decides to implement project management and messaging tools to improve collaboration, knowledge sharing and asynchronous communications among its global workforce. It needs to train employees in several different countries to use these systems. List the possible cultural issues you can think of that the training program should take into account. (LO3) Answer: While the responses provided will vary, all answers given should stimulate a lively class discussion of the topic. Suggestions for possible cultural issues that should be taken into account may include: educational level, religious beliefs, and availability of all workers to receive the training.

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8. Think of a time when you successfully navigated another country’s cultural norms (e.g., for work or on a vacation). What factors made your experience a positive one? Did you face any major obstacles? Is there anything you would do differently next time? (LO4) Answer: Student answers should reflect the importance of culture to success and enjoyment of global travels and/or employment and connect to related chapter concepts.

9. What types of skills do you need to be able to manage in today’s global workforce? Where do you expect to get those skills? What education and/or experiences will you need? (LO4) Answer: Successful expatriates should possess abilities such as competency in the technical area of expertise, communication capability in the foreign language, flexibility, tolerance of ambiguity, sensitivity to cultural differences, willingness to learn about the country’s culture and customs, and motivation to succeed. Students’ answers related to expectations about where to get those skills and what types of classes and experience are needed will vary.

10.

In the past, a large share of expatriate managers from Canada have returned home before successfully completing their international assignments. Suggest some possible reasons for the high “failure” rate. What can HR departments do to increase the success of expatriates? (LO4) Answer: Answers to the last part of the question will vary but should reflect various relevant HRM practices associated with global relocation success factors e.g., providing trailing partner career transition support, providing cross-cultural training, supporting career development, and the use of an international assignment letter that clarifies the rights and duties of the employer and employee.

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CASE STUDY: EVIDENCE-BASED HRM MANUAL OR AUTOMATED WORK? THIS IS THE AMAZON QUESTION Case Summary: Amazon is one the world’s largest employers in the world. In this case study, students will learn about how the organization uses advance software and robotic technologies to support business practices.

An extensive network of software is used to monitor, evaluate, reward, and even reprimand employees. They are currently experimenting with robotic technologies that could potentially replace humans at some small facilities.

Answers to Questions: 1. Should Andy Jassy focus technological development on enabling its workforce or on replacing it?

Why? While the responses will vary, all answers given should stimulate a lively class discussion of the topic. Instructors can encourage students to debate between using technological development for enabling its workforce or on replacing it. Students should argue their positions using chapter concepts.

2. If a new technology came along that could replace the workforce and save the company 10 percent relative to its current labour costs, should it implement it? What if it was 50 percent? What if it was 75 percent? At what point do you think returns to shareholders outweigh the jobs of workers?

Student responses will vary based on their opinions about using technology to replace humans. This is controversial topic that can generate a class discussion and further debate (extending from the points mentioned from question #1).

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CASE STORY: EYE ON TECHNOLOGY FRESHII FACES “PERCY” CONTROVERSY Case Summary: This case describes the use of a virtual workers to process orders at the cash register at three Freshii locations in Ontario, Canada. Controversy arose when it was discovered that the virtual workers were working from a call centre in Nicaragua, earning $3.75 USD per hour (a fraction of Ontario’s minimum wage).

Answers to Questions: 1. What is your reaction to the outsourcing of jobs to countries that pay less? Is Freshii’s use of virtual workers any different than a company that outsources production of its products and services to a lower labour cost country? Why or why not?

A wide range of student reactions would be expected from this question. This is a great learning opportunity for students to engage with because it requires them to consider how to support their reactions with evidence-based information. Instructors can direct students to identify components within this chapter focusing on compensating and rewarding a global workforce.

Instructors can also promote a discussion about ethical concerns raised in this case about paying outsourced employees significantly less. Students may be asked to consider ethical decisions and profits, as well as HR’s role in supporting ethical decisions.

2. What is your advice to Freshii’s CEO and Chief People Officer?

Student answers will vary but should reflect on points raised on answers to question 1.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 10: Visions of Global Interactions See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

Chapter 11: Creating and Sustaining High-Performance Organizations Lecture Outline Prepared by: Nicole Vincic, Mohawk College

LEARNING OBJECTIVES LO1: Define high-performance work systems and identify the elements, outcomes, and conditions associated with such as system.

LO2: Explain how human resource management can contribute to high performance.

LO3: Summarize ways to measure the effectiveness and impact of human resource management.

LO4: Discuss the role of HRM technology in high-performance work systems.

LO5: Discuss the future for human resource professionals and the role of the chief human resources officer (CHRO).

INTRODUCTION: ADP’s High-Performance Culture • ADP systems help its clients achieve high performance by automating payroll and time reports makes employers more efficient and reliable.

• 96% of ADP employees rate their workplace positively and are proud to be a part of the company.

HIGH-PERFORMANCE WORK SYSTEMS • The challenge facing managers is how to make their organizations into high-performance work systems • This approach contrasts with traditional management practices.

• Decisions about technology, organizational structure, and human resources were treated as if they were unrelated e.g., an organization might acquire a new information system, add an office in another country, etc. without considering the impact on its people.

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• High-performance work system: The right combination of people, technology, and organizational structure to make full use of resources and opportunities in achieving the organization’s goals.

ELEMENTS OF A HIGH-PERFORMANCE WORK SYSTEM 1. Organizational structure • How the organization groups people into useful divisions, departments, and reporting relationships—promotes cooperation and continuous improvement.

2. Task design • Determines how necessary activities will be grouped—makes jobs efficient while encouraging high-quality results.

3. Right people • HRM has a key role in providing people who are well-suited and well-prepared for their jobs.

4. Reward systems • Encourage people to strive for objectives that support the organization’s overall goals—HRM plays an important role.

5. Information systems • Decisions about types of information to gather, sources of information, who should have access, and how they will make the information available.

OUTCOMES OF A HIGH-PERFORMANCE WORK SYSTEM Outcomes of high-performance work systems include (Figure 11.2): • Higher productivity and efficiency—contributes to higher profits.

• High product quality—contributes to customer satisfaction.

• Customer satisfaction—contributes to growth and higher sales.

• Low employee turnover and absenteeism—contributes to lower costs.

EMPLOYEE EXPERIENCE • The set of perceptions that employees have about their experiences at work in response to their interactions with the organization.

• Core element required for the HR function to be an agile and proactive contributor to the business.

HIGH-PERFORMANCE FACTORS LINKED TO POSITIVE EMPLOYEE EXPERIENCE 1. Empowerment • Providing employees responsibility and authority to make decisions regarding all aspects of product development or customer service.

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2. Teamwork • Work teams bring together various skills and experiences.

• Contribute to high performance when job satisfaction and engagement improve and provide for fuller use of employees’ ideas and expertise.

3. Knowledge Sharing • Learning organization - an organization that supports lifelong learning by enabling all employees to acquire and share knowledge.

• Continuous learning - each employee’s and each group’s ongoing efforts to gather and apply information to their decisions in a learning organization.

• Critical, systemic thinking - employees and teams are encouraged to think in new ways • Learning culture - learning is rewarded, promoted, and supported.

4. Meaningful Work • Another way organizations foster engagement is to match employees with on-the-job roles and projects that are connected to their values and create a sense of meaning and purpose.

5. Ethics • Establish fundamental principles for behaviour, such as honesty and fairness - to maintain longterm relationships with employees, customers, and the community.

• Promote ethical behaviour through channels to ask questions, a written code of ethics, training, performance management, and discipline policies.

6. Corporate Social Responsibility • An evolving concept integrating social, environmental, and economic concerns into an organization’s values, culture, decision making, strategy, and operations in a way that creates wealth and improves society.

7. Job Satisfaction • Job satisfaction - employees experience their jobs as fulfilling or allowing them to fulfil one’s important job values - based on perception.

8. Employee Engagement • The extent that an employee experiences full involvement in one’s work and commitment to one’s job and organization - tends to require job satisfaction.

• Associated with higher profitability, productivity, greater customer satisfaction, and higher business performance - employees with high engagement and a highly positive employee experience are likely to be passionate about their work.

• Disengaged and overwhelmed employees may experience job withdrawal - a set of behaviours with which employees try to avoid the work situation physically, mentally, or emotionally.

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HOW IS EMPLOYEE EXPERIENCE ASSESSED? • Usual way to assess satisfaction and engagement is with a survey.

• Job Descriptive Index (JDI) is a widely used measure of job satisfaction - emphasizes specific aspects of satisfaction e.g., pay, the work itself, supervision, co-workers, and promotions.

• Exit interview - a meeting of a departing employee with the employee’s supervisor and/or human resources specialist to discuss the employee’s reasons for leaving.

• Stay interview - a meeting with an employee to explore his or her thoughts and feelings about the job and to uncover issues in the effort to prevent that employee from becoming disgruntled.

• Net Promoter Score - was developed to assess client experience; however, its methodology is equally applicable to measuring and improving employee experience. NPS is calculated using a 0– 10 scale for the question: “How likely is it that you would recommend *organization+ to a friend or colleague?”

HRM’S CONTRIBUTION TO HIGH PERFORMANCE HRM plays a critical role in determining companies’ success in meeting the challenges of a rapidly changing, highly competitive environment: • Job Design - jobs must be designed appropriately - often employees are placed in work teams to collaborate, make decisions, and solve problems.

• Recruitment and Selection - aims to provide employees that will thrive in a high-performance organization e.g., have qualities such as creativity and ability to contribute to teamwork, empowerment, and knowledge sharing - requires more than technical skills.

• Training, Learning, and Development - may be required to teach specific skills employees need to perform their jobs. When work is performed by teams, those teams will benefit from team development activities.

• Performance Management - in a high-performance organization, employees know the organization’s goals and what they must do to help achieve those goals - recognizes the effect of situational constraints on performance e.g., economic conditions.

• Compensation and Rewards - gainsharing, profit sharing, etc. can be implemented to reinforce the impact of an effective performance management system.

• Managing Voluntary & Involuntary Turnover -- Involuntary turnover - initiated by an employer (often with employees who would prefer to stay) e.g., terminating an employee for under-performance or laying off employees during a downturn.

-- Voluntary turnover - initiated by employees (often when the organization would prefer to keep them) e.g., to go back to school, travel, take a job with another company, start a business Figure 11.8 shows how voluntary turnover has stabilized in recent years.

Costs associated with turnover -- Examples include recruiting, selecting, & training replacements, lost productivity, as well as loss of talented employees.

-- Involuntary turnover may result in costs of legal action and even the potential for workplace violence.

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-- Just cause for dismissal - serious violation of the employment relationship e.g., dishonesty or failure to comply with known policies or procedures or failure to meet performance requirements.

PRINCIPLES OF JUSTICE • Outcome fairness e.g., consistent outcomes, knowledge of outcomes, and outcomes in proportion to behaviours.

• Procedural justice e.g., consistent procedures, avoidance of bias, accurate information, way to correct mistakes, representation of all interests, ethical standards.

• Interactional justice e.g., explanation of decision, respectful treatment, consideration, empathy.

HANDLING EMPLOYEE DISCIPLINE APPROPRIATELY • Progressive discipline - a formal discipline process in which the consequences become more serious if the employee repeats the offence.

• Off-the-job behaviour is also a concern to employers.

• Creating a formal discipline process is a primary responsibility of the HR department (in consultation with supervisors and managers). HR professionals also have a role in carrying out progressive discipline.

• Typical responses to offences include verbal and then written warnings, temporary suspension, and finally termination - for very serious or dangerous offences, the organization may establish a stricter policy, even terminating an employee for the first offence.

EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENT • HRM Audit - formal review of the outcomes of HRM functions, based on identifying key HRM functions and the measures and metrics associated with organizational performance.

• People (human capital) analytics - enables companies to find ways to identify practices associated with greater effectiveness and efficiency.

HRM TECHNOLOGIES • E-HRM - providing HR-related information over the Internet. As Internet use has increasingly taken the form of social platforms, e-HRM has moved in this direction as well e.g., for learning and to access job search tools.

• Human Resource Information Systems -- Transaction processing - calculations involved in reviewing and documenting HRM decisions and practices.

-- Decision support systems - computer software systems designed to help managers solve problems by showing how results vary when assumptions or data are altered - usually include “what if?” feature.

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-- Expert systems - computer systems that support decision making by incorporating the decision rules used by people who have expertise.

• Predictive Analytics - the use of data to make predictions about actions or outcomes. In contrast to lagging indicators, leading indicators tend to rely on multiple data sources with a view to the future • Personalization - a number of companies are looking to better customize or personalize an employee’s experience with the organization e.g., enable employees to personalize their pay mix.

COMPETENCIES FOR HR PROFESSIONALS • Business competence - HR professionals must know the company’s business and understand its financial capacity.

• Professional-technical knowledge - HR professionals must be aware of state-of-the-art HRM practices in areas such as staffing, development, performance feedback, rewards, organizational design, and communication.

• Management of change processes - HR professionals must be skilled in diagnosing opportunities and problems, implementing organizational changes, and evaluating results.

• Integration competence - HR professionals must be able to integrate the three other competencies to increase the company’s value. This means that although specialist knowledge is necessary, a generalist perspective must be taken in making decisions.

CHIEF HUMAN RESOURCES OFFICER ROLES Chief human resources officers (CHROs) have accountability for leading the HR function as well as ensuring that HR systems and processes deliver value to the company. Roles of the CHRO (and time spent): • Leader of the HR function (22%) • Strategic advisor to the executive team (21%) • Talent architect (17%) • Counsellor/confidante/coach to executive team (17%) • Liaison to the board of directors (10%) • Workforce sensor (8%) • Representative of the firm (5%)

Summary • Define high-performance work systems and identify the elements, outcomes, and conditions associated with such as system.

• Explain how human resource management can contribute to high performance.

• Summarize ways to measure the effectiveness and impact of human resource management.

• Discuss the role of HRM technology in high-performance work systems.

• Discuss the future for human resource professionals and the role of the chief human resources officer (CHRO).

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Critical Thinking Questions 1. What is a high-performance work system? What are its elements? Which of these elements involve human resource management? (LO1) Answer: A high-performance work system is the right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals. The elements of a high-performance work system are organizational structure, task design, people, reward systems, and information systems. These elements must work together in a smoothly functioning system. All the elements identified involve and are influenced by human resource management.

2. Is Net Promoter Score an appropriate way to assess employee experience? Why or why not? (LO1) Answer: Student responses should connect to considering the various methods available to assess employee experience. Net promoter score offers a quantitative, visual approach. Students should be encouraged to reflect on whether additional data and information is required to inform HR and leadership decision-making.

3. As it has become clear that HRM can help create and maintain high-performance work systems, it appears that organizations will need at least two kinds of HR professionals. One kind focuses on identifying how HRM can contribute to high performance. The other develops expertise in particular HRM functions, such as how to administer a benefits program that complies with legal requirements.

Which aspect of HRM is more interesting to you? Why? (LO2) Answer: The responses provided by the students will vary contingent upon their personal viewpoints but should show an understanding of the differences in roles.

4. Summarize how each of the following HR functions can contribute to high performance. (LO2) a. Job design b. Recruitment and selection c. Training, learning, and development d. Performance management e. Compensation and rewards Steen, HRM 6ce © McGraw Hill, 2023 IM 1-139

Answer: a. Job design • A possible response would be that this places employees in work teams where employees collaborate to make decisions and solve problems. b. Recruitment and selection • A possible response would be that this aims at obtaining the kinds of employees who can thrive in a high-performance work setting. c. Training, learning, and development • A possible response would be that this focuses on preparing employees to strive forward in a high-performance atmosphere d. Performance management • A possible response would be that this reinforces the organization’s goals and what must be accomplished in order to meet those goals. e. Compensation and rewards • A possible response would be that this reinforces employee behaviours and results.

5. List forms of behaviour that can signal job withdrawal. Choose one of the behaviours you listed and describe how you would respond if an otherwise valuable employee whom you supervise engaged in this kind of behaviour? (LO2) Answer: Job withdrawal may take the form of behaviour change, physical job withdrawal, or psychological withdrawal. A wide variety of examples can be provided such as stress, anxiety, decrease in productivity, tardiness, absenteeism, and turnover. Student responses can vary about how they would respond if an employee they supervised engaged in this behaviour. However, students should identify the importance to address the sources of job dissatisfaction.

6. Why should HR departments measure their effectiveness? What are some ways they can go about measuring effectiveness? (LO3) Answer: Taking a customer-oriented approach, HRM can improve quality by defining the internal customers who use its services and determining whether it is meeting those customers’ needs. One way to do this is with an HRM audit, a formal review of the outcomes of HRM functions. The audit may look at any measure associated with the successful management of human resources. Audit information may come from the organization’s documents and surveys of customer satisfaction.

Another way to measure HRM effectiveness is the use of human capital analytics—type of assessment of HRM effectiveness that involves determining the impact of, or the financial cost and benefits of a program or practice.

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7. What is a real business (and human resource management) problem that could be solved with the use of predictive analytics? (LO4) Answer: Students should be able to identify that predictive analytics involves using data about past and present conditions and the relationships between factors to forecast what will happen in the future if a particular decision is made. Various business and human resources management problems can be identified in this answer.

8. How can HRM technology make a human resource department more productive? How can technology improve the quality of HRM decisions? (LO4) Answer: Technology can improve the efficiency of the human resource management functions and support knowledge sharing. HRM applications often involve transaction processing, decision support systems, and expert systems. These can improve the efficiency of routine tasks and the quality of decisions. Often, these applications are part of a human resource information system using relational databases. Organizations can use E-HRM to provide HR-related information including the use of various social-media applications e.g., YouTube access to instructional video and Facebook-style networking sites where employees can share project updates.

9. What types of specific skills (such as knowledge of financial accounting methods) do you think HR professionals will need in order to have the business, professional–technical, change management, and integrative competencies necessary in the future? How can these skills be developed? (LO5) Answer: a. Business competence • Knowledge of the organization’s line of business.

• Knowledge of financial account methods.

• Ability to calculate the costs and benefits of each alternative in terms of its return on investment.

• Ability to identifying the social and ethical issues attached to HRM practices. b. Professional–technical knowledge • Knowledge of current/ state-of-the-art HRM practices in areas such as staffing, development, performance feedback, rewards, organizational design, and communication.

• Knowledge of applicable laws and current technology systems.

• Ability to critically evaluate the new techniques and use only those that provide value. c. Management of change processes • Skill in diagnosing opportunities and problems.

• Leadership skills to implement organizational changes and evaluate results. d. Integration competence • Skill in integrating the three other competencies to increase the company’s value.

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• Ability to understand how all the functions within the HRM fit together to be effective and recognizing that changes in any one part of the HRM are likely to require changes in other HR areas.

Students can provide a variety of options for developing these skills. Some suggestions include: attending seminars/ workshops, reading, mentorship.

10.

Were any of the “Seven Roles” of the chief human resource officer (CHRO) surprising or unexpected? Explain your answer. (LO5) Answer: The answers provided should reflect a connection to the seven roles of the CHRO provided in Table 11.8.

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CASE STUDY: EVIDENCE-BASED HRM BELL CANADA’S MENTAL HEALTH INITIATIVE Case Summary: Bell Canada is known for their “Bell Let’s Talk” mental health awareness campaign. Their goal to bring awareness and support for mental health extended to their 52,000 employees. They offer variety of EAP support for their employees. This case describes this initiative along with a brief discussion about the return on the investment.

Answers to Questions: 1. What are some ways to measure the costs of mental health initiatives?

Some ways to measure the cost include calculating the actual cost of the programs and whether employees utilized them. The company can also calculate turnover rates and the costs associated with employees on disability leaves.

2. What are some ways to measure the benefits of mental health initiatives?

Some ways to measure the benefits include employee satisfaction surveys, turnover rates, and ROI.

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CASE STORY: EYE ON TECHNOLOGY DEERE & COMPANY (JOHN DEERE): USINING DATA TO ACCELERATE HR TRANSFORMATION Case Summary: This case discusses John Deere’s approach to use of data analytics to support the transformation of HR as a strategic collaborator in the business.

Answers to Questions: 1. On the basis of the information provided in the case, is John Deere a high-performance organization?

Why or why not?

Student responses will vary but should demonstrate application of chapter concepts including elements, outcomes, and conditions associated with a high-performance work system.

2. Why is it important for HR professionals to be able to “tell a story” to their internal customers based around analytics?

Answer: John Deere has explored the extent to which HR practitioners need expertise in analytics and concluded that not every practitioner needs to be an expert, however, every HR practitioner needs to be able to demonstrate their knowledge of the business through an applied approach to analytics. By being able to tell a story based around analytics, HR practitioners at John Deere, are able to collaborate with leadership and demonstrate key competencies associated with being able to bring a deliberate, business-oriented, evidence-based approach to people issues.

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RUNNING CASE: INDIGENIZING THE WORKPLACE Chapter 11: Keeping up Momentum See the “Indigenizing the Workplace Instructor’s Manual” on Connect.

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