Managing Human Resource Systems

Chapter 13 Managing Human Resource Systems What Would You Do? Albian Sands Energy Inc.  $86 billion will be invested in 63 projects between 1996 and 2010  Tremendous shortage of skilled and unskilled workers  Highly competitive environment for workers  Over the next year 600 employees must be hired  How do you hire and retain a qualified workforce? Learning Objectives: Determining Human Resource Needs After reading the next two sections, you should be able to: 1. describe the basic steps involved in human resource planning 2. explain how different employment laws affect human resource practice The Human Resource Management Process Determining human resource needs  human resource planning Attracting qualified employees   recruiting selecting Developing qualified employees   training performance appraisal Keeping qualified employees   compensation employee separation Human Resource Planning  Forecasting Demand and Supply  Human Resource Information Systems Forecasting Demand and Supply Workforce forecasts   internal external Forecasting methods    direct managerial input best guess statistical/historical ratios Workforce Forecasting: Internal Factors        New positions New equipment and technology Eliminated positions Terminations Retirements Resignations Turnover       Transfers Deaths Promotions Organization’s mission Productivity of current employees skills/education of current employees Workforce Forecasting: External Factors     Demographics of labour supply Geographic population shifts Shift from manufacturing- to service- to informationbased economy General economic conditions       Unemployment rate Labour unions Availability of applicants Technological advances Strength and number of competitors Growth in particular businesses and markets Human Resource Information Systems (HRIS) Computerized employee information systems Uses    transaction processing employee self-service decision support systems Common Data Categories in Human Resource Information Systems       Personal data Company employment history Work history Educational data Performance appraisal Promotion data Employment Legislation    Federal and provincial employment laws Employment discrimination Sexual harassment Major Federal Employment Laws Canada Labour Code — Part III  minimum wage, parental leave, hours of work, vacation entitlements Canada Labour Code — Part II  occupational health and safety Canada Labour Code — Part I  guarantees the right to form and join unions Canadian Human Rights Act  prohibits discrimination on the basis of race, origin, gender, religion etc. Employment Discrimination   Hiring, promotion, and other employment decision must be based on bona fide occupational requirements Measures of selection must have   reliability validity Sexual Harassment A form of discrimination in which unwelcome sexual advances, request for sexual favours, or other verbal or physical conduct of a sexual nature occur Two types:   quid pro quo hostile work environment Common Managerial Mistakes Regarding Sexual Harassment Managers sometimes assume:    that the victim and harasser must be of the opposite sex and only women can be victims that harassment can only occur between co-workers or between supervisors and subordinates that only victims can file complaints Learning Objectives: Finding Qualified Workers After reading the next two sections, you should be able to: 3. explain how companies use recruiting to find qualified job applicants 4. describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers Recruiting    Job analysis and recruiting Internal recruiting External recruiting Job Analysis and Recruiting Job analysis  a purposeful, systematic process for collecting information on work-related aspects of a job Job description  a written description of the basic tasks, duties, and responsibilities required of a job incumbent Job specifications  a written summary of the qualifications required for a job Internal Recruiting A pool of qualified applicants who already work for the company.     Improves employee commitment, morale, and motivation Reduces recruitment time and costs Job posting Career paths External Recruiting Developing a pool of qualified applicants from outside the company.        Advertising Employee referrals Walk-ins Outside organizations Employment services Special events Internet job sites Selection     Application forms and resumes References and background checks Selection tests Interviews Topics to Avoid on Application Forms and During Selection       Name changes Addresses outside Canada Age Marital status Children Birthplace       Military service outside Canada Mother tongue Race Religion Criminal record Sexual orientation References and Background Checks References  Sources such as previous employers or coworkers who can provide job-related information about job candidates Background checks  Procedures used to verify truthfulness and accuracy of information provide by job applicants as well as gather information not provided by applicant Selection Tests       Specific ability tests Cognitive ability tests Biographical data Personality tests Work sample tests Assessment centres Interviews  Unstructured   Structured   free flow of questions interviewer uses standard set of prepared questions Semi-structured  combination of structured and unstructured questions Guidelines for Conducting Effective Structured Interviews Planning the interview Conducting the interview After the interview What Really Works Cognitive Ability Tests Work Sample Tests What Really Works Assessment Centres Structured Interviews What Really Works Cognitive Ability + Work Sample Tests Cognitive Ability + Integrity Tests Cognitive Ability + Structured Interviews Learning Objectives: Developing Qualified Workers After reading the next two sections, you should be able to: 5. describe how to determine training needs and select the appropriate training methods 6. Discuss how to use performance appraisal to give meaningful performance feedback Training    Determining training needs Training methods Evaluating training Training Methods and Objectives  Impart information or knowledge   Develop analytical and problem-solving skills   Films, videos, lecture, planned readings Case studies, coaching and mentoring, group discussions Practise, learn or change job behaviour  OJT, role playing, simulations and games, vestibule training Evaluating Training     Reactions Learning Behaviour Results Performance Appraisal Accurately measuring job performance Sharing performance feedback Accurately Measuring Job Performance      Objective performance measures Subjective performance measures Trait rating scales Behavioural observation scales Rater training Sharing Performance Feedback What to discuss in a performance appraisal feedback session 1. Overall progress — accomplishments and shortcomings 2. Problems encountered 3. Opportunities to improve performance 4. Long-range plans, opportunities 5. Discussion of plans and goals for coming year Learning Objectives: Keeping Qualified Workers After reading the next two sections, you should be able to: 7. describe basic compensation strategies and how they affect human resource practice 8. discuss the four kinds of employee separations: termination, downsizing, retirements, and turnover Compensation Decisions and Employment Benefits Pay-level decisions  job evaluation Pay-variability decisions  piecework, commission, profit sharing, employee stock ownership plans, stock options Pay-structure decisions  hierarchical and compressed Employment benefits  cafeteria benefit plans Employee Separations      Involuntary/voluntary Terminating employees Downsizing Retirement Employee turnover Terminating Employees   Termination is often not well managed Minimize problems by:   not making firing the first option firing should be for “just cause”    termination at will wrongful dismissal deal with employee morale among “survivors” after a firing Downsizing   The planned elimination of jobs Should be used only as a last resort   doesn’t always lead to better company performance Offering outplacement services can help employees make adjustments Retirement Early retirement incentive programs  Offer financial benefits to encourage employees to retire  Are difficult to predict which or how many employees will use the program  May cause the company to lose valuable employees Employee Turnover   Loss of employees who voluntarily choose to leave the company Functional turnover   the loss of poor-performing employees Dysfunctional turnover  the loss of high-performing employees What Really Happened? Recruitment at Albian Sands Energy Inc.  Took a long-term view  Participated in stay-school programs  Recruited across Canada  Developed a rewards package to retain workers  In 2001 received 17,000 résumés and hired 382 people