Strategic Human Resource Management Chapters 4-6

Chapter 4: Legal Requirements and Managing Diversity GOVERNMENT IMPACT Federal and provincial laws regulate the employee- employer relationship Responsibility of HR specialists: - Stay abreast of laws, interpretations, and rulings - Develop and administer programs to ensure compliance - Pursue traditional roles of obtaining, maintaining, and retaining an optimal workforce THE CHARTER OF RIGHTS AND FREEDOMS The Canadian Charter of Rights and Freedoms is contained in the Constitution Act of 1982 Most far-reaching legal challenge for HR managers Charter provides fundamental rights to every Canadian HUMAN RIGHTS LEGISLATION Federal Law- applies to employers under federal jurisdiction (Passed by Parliament and enforced by federal HRC/T) Provincial Law- applies to employers under provincial jurisdiction (Passed by provincial governments and enforced by provincial HRC/T) Direct Discrimination- on grounds specified in the human rights legislation- is illegal Systematic (indirect or unintentional) discrimination- company policy, practice, or action that is not openly or intentionally discriminatory, but has a discriminatory impact or effect (e.g. minimum height and weight requirements) Bona Fide Occupational Qualification (BFOQ)- legal form of discrimination; justified business reason for discriminating against a member of a protected class Duty to Accommodate- requirement that an employer must accommodate the employee to the point of “undue hardship” Prohibited Grounds of Discrimination - Race and colour - National or ethnic origin - Religion - Age - Sex and sexual orientation - Marital and family status - Disability Harassment- treating an employee in a disparate manner because of that person’s sex, race, religion, age, or other protective classification Sexual Harassment- unsolicited or unwelcome sex or gender-based conduct that has adverse employment consequences for the complainant Enforcement CHRC is responsible for enforcement of the CHRA Canadian provinces and territories generally have their own human rights laws and human rights commissions with similar discrimination criteria, regulations, and procedures EMPLOYMENT EQUITY - Women - Persons with a disability - Aboriginal people - Visible minorities Employment Equity Act (1987)- Abella Commission on Equality in Employment was appointed. Employment Equity Act was passed by the federal government in1987. Employers with 100+ employees under federal jurisdiction to develop annual plans setting out goals and timetables Employment Equity Amendment (1996)- as of 1996, employers are responsible for providing reasonable accommodation. Examples include: providing a sign language interpreter for a job interview with a deaf applicant and altering or grooming codes to allow Aboriginal people to wear braids Functional Impact of Employment Equity - Human resource plans - Job descriptions - Recruiting - Selection - Training and development - Performance appraisal - Compensation program Major steps: Employment Equity Programs - Exhibit Commitment; Appoint Director - Publicize Commitment - Survey the Workforce - Develop Goals and Timetables - Design Specific Programs - Establish Controls PAY EQUITY Equal pay for work of equal value- federally, and in most provinces, laws exist that make it illegal to pay women less than men if their jobs are of equal value Recent cases include: - Federal government settled in 1999 at a cost of over $3.5 billion - 2001 Supreme Court of Canada ruling involving Canada Post is expected to cost $250 million Reverse Discrimination- usually arises when an employer seeks to hire or promote a member of a protected group over an equally (or better) qualified candidate who is not a member of a protected group - Places HR departments in difficult position - CHRA declares Employment Equity Programs non-discriminatory if they fulfill the spirit of the law Principles of Natural Justice- minimum standards of fairness and implied obligations for decision-making Right: - To a fair hearing - To a bias-free proceeding - To present the opposing argument - Of legal representation - To timely notice of a hearing - To a timely process Other Legal Challenges - Canadian Labour Code (1972) - Dismissal - Hours of work and overtime regulations - Minimum wages - Occupational health and safety - Weekly rest day - WHMIS Strategic Implications - Ensure all rules and policies consider legal aspects - Employment equity requirements - Good corporate citizen - Training - Sexual harassment and unjust dismissal DIVERSITY Diversity Management- a diverse workforce requires managers with new leadership styles who understand employees’ varying needs and creatively respond by offering flexible management policies and practices ORGANIZATIONAL BARRIERS Old Boy’s Network- informal relationships among male managers and executives Glass Ceiling- invisible but real obstructions to career advancement of women and visible minorities Stereotyping- using a few observable characteristics to assign someone to a social category Workplace Diversity- includes important human characteristics that influence an employee’s values, perceptions of self and others, behaviours, and interpretations of events DIMENSIONS OF DIVERSITY Core - Age - Sex/ Gender - Race - Religion - Ethnicity and Culture - Sexual Orientation - Mental and Physical Disabilities Secondary - Education - Past Work Experiences - Family Status - Income - First Language - Recreational Interests - Geographic Location - Family Background Strategic Importance - Changing Workforce - Importance of Human Capital - Diversity as a Competitive Advantage - Paradigm Shift - Increasing Role of Work Teams TRADITIONAL NEW - Success linked to standardization Diversity is a cost Rules/ policies shaped by senior executives Emphasis on “masculine” values Change to suite the organization’s culture - Success linked to individual contribution Diversity is a competitive advantage Rules to satisfy customers and employees “Feminine” values are important to success Modify culture to meet employees’ needs Steps in Managing Diversity - Identify Ideal Future State - Analyze Present Systems & Procedures - Change Systems, Procedures, and Practices - Evaluate Results and Follow-up CURRENT INDUSTRY PRACTICES Diversity Training Programs- awareness training; skill-building training; content vs. process training Mentoring Programs- senior manager provides guidance (formal or informal) Alternative Work Arrangements- non-traditional work arrangements; provide more flexibility to employees Apprenticeships- a form of on-the-job training; learn from an experienced person Support Groups- provide emotional support to new employee who shares a common attribute with the group Communication Standards- formal internal protocols; eliminate biases in communication Chapter 5: Recruitment Recruitment- the process of finding and attracting capable individuals to apply for employment and to accept a job offer if/ when one is made to them. Includes both intentional and unintentional actions. Recruiters are specialists within the HR department of large organizations. The Recruitment Process - Identify job openings - Identify job requirements - Determine recruitment methods - Obtain applications Strategic Importance of Recruitment Recruitment decisions have profound implications for strategic success. Competitive advantage from human capital Benefits of diversity management Focusing on employee development Investing resources into recruitment INTERNAL RECRUITING Advantages - Employee is familiar with the organization - Employee is “known”, thereby increasing ability to predict success - Improves employee moral and motivation Weaknesses - Internal competition can reduce cooperation - No “new blood” so can prevent creative solutions - Poor morale (possible turnover) of employees not promoted EXTERNAL RECRUITING Advantages - Able to acquire skills and knowledge that may not be available within - Newer ideas and novel ways of solving problems may emerge Weaknesses - Newcomers may not fit in - Newcomers take longer to learn about the organization - Usually more expensive - Lowered morale and motivation of current employees CONSTRAINTS ON RECRUITMENT - Organizational Policies - Human resource plans - Diversity management - Recruiter habits - Environmental conditions - Job requirements - Costs - Inducements CONSTRAINTS: ORGANIZATIONAL POLICIES Promote-from-within Policies- gives present employees the first opportunity Compensation Policies- must adhere to stated pay ranges Employment Status Policies- e.g. limitations against hiring part-time International Hiring Policies- foreign jobs may need to be staffed with locals APPLYING FOR A JOB Submit a resume- a one-two page summary of the applicant’s education, work experience, personal contact information, work goals, and related skills Application form- designates the information the recruiters would like to have for each applicant; may make education credentials and employment gaps more apparent (Name & address; work history; employment status; memberships, awards & hobbies; education & skills; references; signature line) RECRUITMENT METHODS - Walk-ins and Write-ins - Employee Referrals - Advertising - The Internet - HRSDC - Private Employment Agencies - Professional Search Firms - Education Institutions - Professional & Labour Organizations - Armed Forces - Temporary Help Agencies - Departing Employees - Open House and Job Fairs NON-TRADITIONAL RECRUITMENT METHODS - Applicant Tracking Systems - Contingent Contract/ Leased Workers - Partnerships with Social Agencies - Direct Mail Solicitations - Recruitment Abroad CHOOSING RECRUITMENT SOURCES How does a recruiter choose which methods to use? - How many recruits are needed? - What is the skill level required? - What sources are available? - What has worked in the past? - How much is the budget? - Are there labour agreements that specify recruitment options? EVALUATING RECRUITMENT Cost per Hire- the dollar cost per person hired Quality of Hires and Cost- quality of people hired from various sources Offers-to-Applicants Ratio- ratio between the number of job offers and total applicants for each recruitment method Time Lapsed per Hire- time taken to fill a position Chapter 6: Selection Selection Process- a series of specific steps used to decide which recruits should be hired; begins when recruits apply for employment and ends with the hiring decision. Steps involve matching the employment needs of the organization and the applicant STRATEGIC SIGNIFICANCE OF SELECTION - Successful execution of an organization’s strategy depends on the caliber of its employees - An organization’s selection decisions must reflect job requirements - Selection strategy must be well integrated with organizational priorities - Selection strategy must recognize organizational constraints - Selection strategy should recognize labour market realities- selection ratio - Selection practices must be ethical STEPS IN THE SELECTION PROCESS Preliminary Reception Initial contact with applicants Walk-ins may receive preliminary interview Write-ins often receive letter of acknowledgement This step has disappeared in many organizations with the increasing use of Internet recruitment Screening Remove from consideration applicants who do not meet qualifications Weighted application blank Ensure application is useful and meets legal requirements Biographical information blanks (biodata) Employment Tests Reliability- means that the test yields consistent results Validity- test measures what it is purported to measure. Empirical approaches- predictive validity; concurrent validity Rational approaches- content validity; construct validity Types of tests: personality tests; ability tests; knowledge tests; performance tests; situational judgment tests; assessment centers; computer-interactive tests; integrity tests Employment Interview(s) Supervisors should have input into the final hiring decision Realistic Job Previews Shows the candidate the type of work, equipment and working conditions Highlights positive and negative Tends to reduce employee turnover Verification of References Discuss applicant’s work history Former supervisors may not be candid, especially with negative information Reference letters Background checks Medical Evaluation Assessment of health and accident information May be scheduled after the hiring decision Drug tests are increasingly used but may be found to violate employee rights Hiring Decision Marks the end of the selection process- update HRIS; retain applications fur future Tradeoffs among predictors Applicants who are hired should be contacted immediately EMPLOYMENT INTERVIEWS Formal, in-depth conversation conducted to evaluate the applicant’s acceptability Most widely used selection technique - Allows a personal impression - Opportunity to sell a job to a candidate - Opportunity to answer candidate’s questions - Effective public relations tool - Popular due to flexibility and creates two-way exchange - Flaw relates to varying reliability and validity Types of Interviews Interviews may be conducted one-to-one, panel, or group interview Unstructured Interviews- few if any planned questions; lacks the reliability of a structured interview Structured Interviews- pre-determined set of questions; may improve reliability and validity over traditional unstructured interviews Types of Structured Interviews Behavioural Description Interviews- based on principle that the best predictor of future behaviour is past behaviour Situational Interviews- focus on situations likely to arise on the job; applicants asked what they would do Stress-Producing Interviews- may involve high levels of stress to learn how the applicant handles stress Other Types of Interviews Computer-Assisted Interviewing- interviews that use computers to electronically profile job candidates and screen new hires; may increase reliability by making the interviews uniform; some HR managers are uncomfortable with the resulting in-depth electronic profiling EMPLOYMENT INTERVIEW-STAGES 1. Interviewer preparation- develop specific questions/ answers 2. Creation of rapport- interviewer is responsible for establishing rapport 3. Information exchange- heart of the interview 4. Termination (i.e. draw the session to a close) 5. Evaluation (i.e. use of a checklist) INTERVIEWER ERRORS Halo Effect Leading questions Stereotypes Interviewer domination Contrast errors INTERVIEWEE ERRORS May be trying to cover job-related weaknesses or nervousness Examples include: - Playing games e.g. Acting nonchalant - Talking too much - Boasting - Not listening - Being unprepared EVALUATING THE SELECTION Quality and productivity of the workforce - Are supervisors/ peers satisfied with hires? - Are training costs increasing? - Are managers spending too much time managing new hires? - Are grievances, absences, and turnover too high? Costs incurred are at a level appropriate to the organization