Chapter 8 Part 1

Question 1

Human resource management

Answer 1

Attracts, develops, and retains employees who can perform the activities needed to meet organizational objectives.
- Three main objectives:
1. Provide qualified, well-trained employees for the organization
2. Maximize employee effectiveness in the organization
3. Satisfying individual employee needs through monetary compensation, benefits, opportunities to advance, and job satisfaction.

Question 2

HRM Core Responsibilities

Answer 2

1. Planning for Staffing needs
2. Employee recruitment and selection
3. Employee training
4. Employee performance evaluation
5. Employee compensation and benefits
6. Employee separation

Question 3

HR Planning Process

Answer 3

• Planning current and future human resource needs, as related to the company’s strategic plans
• Prepare and human resource inventory of the company’s employees:
  1. Education, experience, training and specialized skills
  2. Expected turnover rates, retirements.
• Prepare a job analysis to identify both the job duties and requirements

Question 4

Recruitment, Selection and Hiring

Answer 4

1. Identify Job Requirements
   - Job description, Job specifications
2. Develop sources of candidates
   - Internal or external, solicit applications
3. Review applications
   - Select interview candidates
4. Interviews
   - Screening, follow-up
   - check references (sometimes after selection)
5. Select candidate and make offer

Question 5

Selecting and Hiring employees

Answer 5

• The selection stage occurs when an employer assesses each applicant to decide who will be offered a position.
• Companies must follow federal/provincial employment laws.
  1. Employers cannot discriminate against job applicants, or treat them unfairly, because of race, religion, colour, sex, national origin etc.
  2. Interview process should be designed to avoid discrimination
  3. Some employers require employment tests, but they must be related to the job requirements.
  4. Selection should be based only an applicant’s job suitability.

Question 6

Orientation

Answer 6

• Companies provide information about expectations and performance through orientation
• Orientation information may include:
  1. Company policies regarding rights and benefits
  2. Company norms and behaviours
  3. Employee manual with code of ethics and code of conduct
  4. Online resources and support
  5. Beginning of transmitting corporate culture

Question 7

Training programs

Answer 7

1. On-the-job training- prepares employees for job duties by having them perform tasks under the guidance of experienced employees
2. Classroom and computer-based training- involves instruction such as lectures, conferences, workshops, or seminars, live or online
3. Vestibule and Simulation training- work like conditions in a classroom or exact situations simulated
4. Management development- on the job and classroom training designed to improve the skills and broaden the knowledge of managers

Question 8

Performance Appraisals

Answer 8

Evaluation of and feedback on an employee’s job performance
- Can include assessments of everything from attendance to goals met
- Used to make decisions about compensation, promotion, additional training needs, transfers, or even termination

Question 9

Performance Appraisals

Answer 9

• Effective performance reviews:
  1. Take place several times a year
  2. Are linked to organizational goals
  3. Are based on objective measures
  4. Take place in the form of a two-way conversation
• Some firms conduct peer reviews or a 360-degree performance review, feedback from co-workers, supervisors, team members, subordinates, and sometimes customers

Question 10

Compensation

Answer 10

What employees receive for their work, paid in cash, benefits, discounts, vacations etc
- One of HR’s responsibilities is help employees understand what they are receiving

Question 10

Wage

Answer 10

Pay based on an hourly rate or the amount of work accomplished

Question 11

Salary

Answer 11

Pay calculated on a periodic basis, such as weekly or monthly

Question 12

Benefits

Answer 12

non-cash, insurance, health care, perks

Question 13

Five Factors Influencing compensation

Answer 13

1. Competitive companies
2. Government minimums or regulations
3. Local cost of living
4. Company profits (or lack of)
5. Productivity of Employee

Question 14

Employee Benefits

Answer 14

• Can be a significant cost as part of total employee compensation
• Some “benefits” required by law (payroll taxes)
  1. Canada pension plan (matching contributions)
  2. Employment insurance
  3. Workers’ compensation
• Some benefits can be given to employees without creating income that is taxable (but deductible for firm)

Question 15

Employee Benefits

Answer 15

Additional compensation such as:
- Extra vacation time
- Retirement savings plans or pension
- Profit-sharing
- Extended health insurance and gym memberships
- Life insurance, disability insurance
- Child and elder care
- Tuition reimbursement (or in part) by the company

Question 16

Flexible Benefits

Answer 16

• With flexible benefit plans, employees are provided a range of options to choose from within a dollar amount
  1. Medical, dental, vision, life, and disability insurance
• Progressive companies also offer flexible time off policies instead of establishing a set number of holidays, vacation days, sick days, and personal days
  1. Belief that valuable employees will be productive, and more loyal because of the freedom

Question 17

Various forms of incentive compensation

Answer 17

• Annual incentive plan- Rewards usually tied to expected results identified at the beginning of the performance cycle
• Discretionary Bonus plan- Management determines the size of the bonus pool and the amounts to be allocated to individuals after a performance period.
• Profit-sharing plan- Employees share in the organization’s profits based on a predetermined, defined formula for allocating profit shares among participants
• Gain-sharing plans- Incentive programs that share the results of productivity gains with employees as a group
• Team/small-group incentives- Incentive program that focuses on the performance of a small group, usually a work team.
• Retention bonus- A payment or reward outside of regular salary that is offered as an incentive to keep a key person, prevent turnover
• Project Bonus- a form on additional compensation paid to an employee or a department for successful completing a project within a certain time frame

Question 18

Flexible Work

Answer 18

• Allow employees to adjust their working hours/place for work
  1. Flextime allows employees to set their own work hours within constraints specified by the firm
  2. Compressed workweek allows employees to work the regular number of weekly hours in fewer than the typical five days
  3. Job sharing program allows two or more employees to work at home instead of at the workplace
  4. Remote work program allows employees to work at home instead of at the workplace
  5. Hybrid positions combine work at home with regular days in the office or work place

Question 19

Employee Separation

Answer 19

• Voluntary turnover: Employees may leave firms to start their own businesses, take jobs with other firms, or retire
  1. Some firms ask employees to participate in exit interviews to find out why they decided to leave
• Involuntary turnover: Employers may terminate employees because of poor job performance, unethical behaviour, or the need for downsizing
  1. Employers must carefully document reasons when terminating employees
  2. Human resource managers must be educated in employment law so the termination is handled properly

Question 20

Downsizing

Answer 20

The process of reducing the number of employees within a firm by eliminating jobs
- Trying to maintain or increase productivity
- Downsizing has negative effects:
1. Anxiety, health problems, and lost productivity among remaining workers
2. Remaining employees might look for other work
3. Expensive severance packages paid to laid-off workers
4. A spiral effect on the local economy

Question 21

Outsourcing

Answer 21

• Using outside vendors to product goods or fulfill services and functions that were previously handled in-house or in-country
• Save expenses and remain flexible, companies will try to outsource functions that are not part of their core business
• What is not a core competency is a candidate to outsource because it is not a competitive advantage
• May reduce investment in some fixed assets
• Downside is possible quality concerns, loss of control

Question 22

Labour-union

Answer 22

A group of workers who organize themselves to work toward common goals in the areas of wages, hours, and working conditions
- found at local, national, and international levels
- Workers originally formed unions to protect themselves from intolerable work conditions and unfair treatment
- Historically, employees turned to unions for assistance in gaining rights and benefits
- Many of the benefits they fought for are now part of normal labour standards

Question 23

Collective bargaining

Answer 23

The process of negotiation between management and union representatives
- Issues involved can include:
1. Wages, work hours, benefits
2. Employee’s termination and layoffs
3. Employee rights and seniority
4. Union activities and responsibilities
5. Grievance handling and arbitration

Question 24

Settling Labour- Management Disputes

Answer 24

Most labour-management contract negotiations result in a signed agreement without a work stoppage
- Outside assistance may be needed for negotiations or for grievances

Question 25

Mediation

Answer 25

Process of settling labour-management disputes through an impartial third party

Question 26

Arbitration

Answer 26

Adds a third party who renders a legally blinding decision

Question 27

Labour relations board

Answer 27

A type of judicial organization responsible for overseeing workers’ groups that apply to become a union and activities that occur during a labour dispute

Question 28

Union tactics

Answer 28

• Strike: A temporary work stoppage by employees until a dispute has been settled or a contract signed
• Picketing: Workers march in public protest against their employer, to bring attention to dispute
• Boycott: An organized attempt to keep the public from purchasing the goods and services of the firm

Question 29

Management Tactics

Answer 29

• Lockout: A management “strike” to put pressure on union members by closing the firm, workers will then picket