comm 211 section 3 Flashcards
Benifits
- Direct Compensation: pay, based on critical job factors or performance
- Indirect Compensation: benefits and services extended as a condition of employment, not directly related to performance, approaching 25 to 40% of annual payroll expenses
- Objectives of benefits programs
- Improve employee work satisfaction
- Meet employee health and security requirements
- Attract and retain employees
- Help reduce fatigue and may enhance productivity e.g. rest breaks, vacations
- Discourage labor unrest
- Maintain a favorable competitive position
- Requirements for sound design
- Strategic Benefits Planning
- Allowing for Employee Involvement
- Benefits for a diverse workforce
- Providing for flexibility
- Communicating employee benefits information
- Benefits mandated by law and discretionary benefits
- Legally required
- CPP/QPP
- Employment Insurance
- Workers’ Compensation
- Holidays & Vacations
- 10 statutory holidays per year – employees entitled to regular wage if not working, 1.5X regular wage if working
- Minimum 3 weeks vacation per year after one year of employment – increases to 4 weeks after 10 years with same employer
- Unpaid meal break of at least 30 minutes every 5 consecutive hours of work
- Paid rest breaks not mandated
Voluntary:
* Life & Health Insurance
* Disability Insurance
* Insurance Benefits
* Life insurance—almost universal benefit
* Health-related insurance
* Disability Insurance - Salary continuation for short-term and long-term disability
* Employee Security Benefits
* Employment income security e.g. severance
* Retirement security i.e. defined benefits plans and defined contribution plans
* Salary Continuation
* Retirement Security
* Registered Pension Plans (RPP)
* Defined Benefits (DB) Plans
* Defined Contribution (DC) Plans
* Two problems administering pension plans:
* If employers go out of business – plan is left unfunded
* Some companies minimize their pension costs by having very long vesting periods
* Paid Time-Off Benefits
* Employee Services
* Educational assistance (e.g., tuition refund)
* Financial services (e.g., employee discount plans)
* Social services
* Employee Assistance Programs (EAPs)
* Relocation programs
* Caregiver programs
- Positives and negatives of remote work
- Potential Positives
- Satisfaction, Lower turnover, Work-life balance, Sustainability, Lower operational costs
Potential Negatives
* Isolation and mental health, Gender disparities, Presenteeism, Fewer feedback and development opportunities, Communication and culture challenges, Less likely to be promoted, Some research indicates lower productivity (but findings are mixed)
- Employee Relations & Discipline
- Good employee relations happen when there is:
- Employee involvement
- Employee Communication
- Employee Counselling
- Employee Discipline
- Employee rights
- What are the outcomes of positive employee relations?
- Improve productivity: Productivity is significantly impacted by ability and attitude
- Implementation of organizational strategies:
- Goals and strategies are communicated
- Employees provide commitment
- Reduce Employment costs
- Reduced absenteeism and turnover
- Provides recruitment advantage
- Help employees grow and develop
- Help employees achieve personal goals
- Improve morale, loyalty & productivity
- Three regimes of employment law
- The Common Law of Employment
- Employer Obligations
- To maintain a safe workplace
- To treat employees with decency, civility, respect, and dignity
- Employee Obligations
- To serve the employer with loyalty and fidelity
- To perform competently
- To advance the employer’s economic interests
- To avoid insubordination and insolence
- Both Parties
- To provide reasonable notice that they are terminating the contract
Statutory Regulations
Statutory Regulations in Labor Relations: Statutory regulations are laws that govern employment relationships and labor rights. They include:
* Labor Standards Acts (e.g., minimum wage, working hours, health and safety regulations).
* Employment Protection Laws (e.g., unfair dismissal, anti-discrimination laws).
* Health and Safety Laws (e.g., workplace safety regulations).
* Union Recognition and Labor Relations Laws (e.g., rights to unionize, collective bargaining).
* Employment Contracts: Laws dictating minimum terms in contracts (e.g., notice periods, severance).
These regulations protect workers’ rights and outline the responsibilities of both employers and unions.
- Collective Bargaining and Arbitration law
- Collective Bargaining:
- The process where unions negotiate with employers on wages, benefits, job conditions, etc.
- Legal Frameworks protect workers’ right to collective bargaining (e.g., National Labor Relations Act in the U.S. or Trade Union Act in the UK).
- Duty to Bargain in Good Faith: Both parties must negotiate sincerely.
- Union Recognition: Laws outline how unions are recognized and certified to represent workers.
- Arbitration:
- A neutral third party makes binding decisions to resolve disputes (e.g., when collective bargaining fails).
- Compulsory Arbitration: Some disputes, especially in essential services, may require arbitration by law.
- Voluntary Arbitration: Both parties agree to resolve disputes through arbitration.
- Arbitration Clauses in collective bargaining agreements specify how disputes will be handled.
- Standards for dismissing unionized and non-unionized employees
Wrongful Dismissal
* The termination of an employee without just cause or without giving the employee reasonable notice or pay in lieu of notice
* Non-union employer who does not have just cause for dismissing an employee may be sued for wrongful dismissal
*
Determining Just Cause for Dismissal
* Any act by an employee that could have serious negative effects on the organization
* Employer is responsible for proving just cause
*
Dismissing an Incompetent Employee
* Requirements in dismissing an incompetent employee include:
* Providing reasonable, objective standards of performance
* Showing that employee failed to meet standards
* Establishing that employee was given a clear warning including warning that dismissal could result if standards were not met
* Employee Misconduct
* e.g. theft, fraud, and dishonesty are most serious
- Employee rights: privacy and fair treatment
- Privacy
- Employers should collect only job-related information
- PIPEDA requirements
- Employee Monitoring: employees should not expect privacy rights in any material delivered or received through company-owned computers, networks, phones, etc.
- Employee Conduct Outside the Workplace: must establish a clear relationship between the misconduct and its negative effect on other employees or the organization.
- **pages 301-304
- Employer cannot consider age, race, gender etc. and has an obligation to make reasonable accommodation
- Right to work in a safe and harassment-free environment
- Approaches to discipline
- Employeee Discipline Preventive:
- Employee discipline is management action taken to encourage compliance with standards
- Preventive Discipline
- Action taken prior to any infraction to encourage employees to follow the rules
- HR is responsible for developing programs and communication
Employee Discipline: Corrective:
* Corrective Discipline follows a rule infraction (e.g., a warning, suspension without pay)
* The objectives of disciplinary action are:
* To reform the offender
* To deter others from similar actions
* To maintain consistent, effective group standards
*
Restrictions on Discipline:
* May be restricted by union contracts and government legislation
* Due process to ensure established rules and procedures are followed
* A useful guide for corrective discipline is the hot-stove rule:
* With warning
* Immediate
* Consistent
* Impersonal
*
Progressive Discipline
* Stronger penalties for repeated offences
* Verbal reprimand by supervisor
* Written reprimand; with a record in file
* 1-3 day suspension
* Suspension for 1 week+
* Discharge for cause
* It is essential that employers document discipline efforts
*
Positive Discipline
* Takes a problem-solving approach
* Employee accepts that a problem exists and takes responsibility
* 4 suggestions for positive disciplinary interviews:
* Focus on the conversation, not the disciplinary action
* Change the name of disciplinary steps (from reprimands and warnings to notice and conversation)
* Provide employees with the opportunity to clear their record
* Avoid unpaid suspensions
- OH&S
- Why do we have OHS regulations?
- Who are the stakeholders and what are their duties?
Occupational Health and Safety (OHS) regulations exist to protect workers’ health and safety, prevent accidents, ensure legal compliance, and promote a safe work environment. These regulations are designed to safeguard workers from hazards, improve productivity, and reduce financial losses due to workplace injuries or illnesses.
Key stakeholders in OHS include:
1. Employers: Responsible for providing a safe workplace, complying with regulations, offering training, and reporting incidents.
2. Workers: Must follow safety procedures, report hazards, and participate in safety programs.
3. OHS Officers/Inspectors: Monitor compliance, investigate accidents, and enforce safety standards.
4. Government Regulators: Set and enforce OHS laws and standards, monitor workplace safety.
5. Unions/Employee Representatives: Advocate for worker safety, participate in safety committees, and support workers’ rights.
6. Insurance Providers: Offer workers’ compensation and promote risk management to reduce accidents.
7. Contractors/Subcontractors: Ensure their workers adhere to safety regulations and have proper training and equipment.
Each stakeholder has distinct duties to ensure a safe and compliant work environment.
- Health Hazards and Issues in the workplace
- Workplace accidents and occupation-related illnesses:
- $8B annually in direct compensation
- More than $19B including indirect expenses
- Direct cost of injuries:
- Lost wages, medical treatment, rehabilitation, etc.
- Indirect costs:
- Lost production, recruiting, training, etc.
- On average, 2.5 employees die each day of the year from workplace accidents (925 each year)
Health Hazards
* Physical Agents: Exposure to Physical elements (e.g., Noise
* Biological Agents:
* Exposure to Natural organisms (e.g., Viruses
* Ergonomic Related
* Caused by the work environment (e.g., repetitive strain)
*
Younger Workers
* Growing emphasis on the health and safety of young workers
* 1 in 7 young workers is injured on the job
* One-fourth of all workplace injuries involve workers aged 15 – 29 years
* Among injured workers under 25, 50% of injuries occurred in first 6 months on the job, and 20% of injuries and fatalities were in the first month
* Most common types of injuries are electrocution and machine injuries
*
Federal and Provincial Safety Regulations
* Each province and federal jurisdiction has detailed legislation addressing health and safety
* 3 Fundamental Employee Rights
* The right to know about hazards in the workplace
* The right to participate in correcting hazards
* The right to refuse dangerous work
- Duties of Employers
- Provide a hazard free workplace.
- Comply with statutes and regulations.
- Inform employees about OH&S regulations.
- Keep records and summaries.
- Ensure supervisors and employees are familiar with hazards.
- Report any accidents that cause injury and death.
- Duties of Workers
- Comply with all applicable acts and legislation.
- Report hazardous conditions and defective equipment.
- Follow all employer OH&S rules, including the use of protective equipment.
- Duties of Supervisors
- Advise employees of potential workplace hazards.
- Ensure that workers use or wear safety equipment, devices and clothing.
- Provide written instruction where applicable.
- Take every reasonable precaution to guarantee the safety of workers.
- Duties of Joint Health and Safety Committees
- Provide a forum where management and labour can work together.
- One manager and one worker certified in safety.
- Involved in inspections, work refusals.
- Investigate accidents.
- Respond to worker concerns.
- Integrative model of workplace safety
Safety Climate
* Management commitment
* HRM Practices
* Safe ty Systems
* Supervisor Support
* Group Processes
* Work Pressure
* Deepwater Horizon Case
Individual Factors
* Conscientiousness
* Locus of Control
* Risk-Taking
* Job Attitudes
* These lead to:
Safety Performance
* Following procedures
* Using protective equipment
* Exercising rights / Whistleblowing
* Initiating Safety-Related Change
* That then leads to:
Safety Outcomes
* Accidents
* Injuries
- Stress in the Workplace (text material only)
Working Conditions
- . Workload
- Understaffing Hours of work/shift work/travel
- Physical environment (noise, air quality, etc.)
Type/Nature of Job
- Dealing with others (i.e., clients/co-workers)
- Level of responsibility/job demands
- Unpredictability/unexpected challenges and issues
Life Events
- Work–life balance Family/personal issues
- Unexpected life events/illness
Management Practices
- Unrealistic demands/pressure
- Conflicting roles
- Effort–reward imbalance
- Lack of support/appreciation
- Lack of autonomy
- Poor communication
- Unfair treatment
- Threatening work environment
Financial/Compensation
- Pay/benefits
- Job insecurity
- Union-Management Framework (Labour Relations)
This framework governs the relationship between workers (via unions) and employers. It includes collective bargaining, grievance procedures, workplace representation, and legal frameworks that regulate union activities and dispute resolution.
Why Do Workers Unionize?
Workers unionize to:
* Improve wages, benefits, and job security.
* Ensure better working conditions and protections against unfair treatment.
* Gain a collective voice and influence in workplace decisions.
* Advocate for broader social issues affecting workers
How Employees Become Unionized
- Initial Interest: Employees discuss unionization.
- Organizing Campaign: Union reps recruit members and educate workers.
- Authorization Cards: Workers sign cards to show support.
- Petition for Recognition: Union petitions for an official election.
- Union Election: Workers vote on unionization.
- Certification: The union is officially recognized if the majority votes for it.
- Collective Bargaining: The union negotiates terms of employment with management.
What Can Organizations Do to Avoid Collective Action?
Employers may:
* Improve communication and workplace conditions.
* Offer competitive wages and benefits.
* Engage employees in decision-making.
* Use conflict resolution strategies and legal means to contest unionization efforts
Dispute Resolution Processes
Methods to resolve disputes between workers and employers include:
* Grievance Procedures: Formal processes outlined in union contracts.
* Mediation: Neutral third-party facilitates negotiation.
* Arbitration: Neutral third-party makes a binding decision.
* Negotiation: Direct discussions between union and management.
* Alternative Dispute Resolution (ADR): Other informal conflict resolution methods.
Collective Bargaining Process
Steps in collective bargaining:
1. Preparation: Both sides gather data and set priorities.
2. Negotiation: Discussions between union and employer on terms.
3. Tentative Agreement: Both sides agree on key terms.
4. Ratification: Union members vote to approve the agreement.
5. Implementation: The contract is put into effect and monitored.
Standards for Dismissal / Termination in a union
Key standards include:
* Just Cause: Employers must have a valid reason for termination.
* Progressive Discipline: Employees may be given warnings before dismissal.
* Fair Process: Employees must have an opportunity to respond.
* Unions’ Role: Unions can challenge dismissals and negotiate procedures.
* Economic Termination: Layoffs due to economic reasons may be negotiated with unions.
- Probationary Period in union
Employees may be let go with fewer protections during probation.
- Strategic Human Resource Management
- Linked to the strategic needs of an organization - corporate, business, & functional levels
- HR strategies and tactics must be mutually consistent
- HR strategies need to be consistent with organizational priorities
A Model of Strategic HRM
Five Steps
- Organizational Mission, Goals, and Strategy Analysis
- Environmental Scan
- Analysis of Organizational Character and Culture
- Choice and Implementation of Human Resource Strategies
- Review, Education and Audit of Human Resource Strategies
Step 1: Organizational Mission, Goals, and Strategy Analysis
Mission statement
- Statement outlining the purpose, long-term objectives, and activities the organization will pursue and the course for the future
- The organization’s goals outline what specifically the organization seeks to achieve in a given time period, which impacts its HR practices
- The organization’s strategies determine the appropriate array of HR practices
- HR strategies enable the successful completion of the organization’s strategies
Step 2: Environmental Scan
Continuous monitoring of economic, technological, demographic, and cultural forces
The major forces:
1. Economic
2. Technological
3. Demographic
4. Cultural
5. Legal
Step 3: Analysis of Organizational
Structure and Culture
Human resource strategies should be formulated only after a careful look at the organization’s structure
* Employees, objectives, technology, size, age, unions, policies, successes, failures
Structure reflects the past and shapes the future
Each organization has a unique culture
* Core beliefs and assumptions that are widely shared by all organizational members
Step 4: Choice and Implementation of Human Resource Strategies
HR must continuously focus on the following activities:
1. Identifying opportunities, risks, and challenges
2. Making data-informed decisions aligned to strategy
3. Optimizing for high performance
Step 5: Review, Evaluation, and Audit of Human Resource Strategies
- HR Strategies should be examined periodically in consideration of changing factors (e.g., technology, environment)
- A holistic review of HR strategies with the intention of identifying and correcting deficiencies is called a human resource audit
- Human resource activities aimed at productivity improvement, succession planning, and cultural change are critical to competitive survival
Assessing the HR Function
q Compliance
q Client satisfaction
q Culture management
q Cost control
q Contribution
Generating Applicants
- Deciding whom to target
– Geography
– Applicant type - Choice of Recruitment Source
Internal Recruiting:
Advantages:
* Employee is familiar with the organization
* Employee is “known”, thereby increasing ability to predict success
* Improves employee morale & 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
Corporate Image and Applicant Attraction
- Organization’s reputation is an important concern to job applicants
- Corporate image predicts the likelihood of interest on the part of a job seeker
- Familiarity with the company
- Competitive compensation package
Maintaining Applicant Status
¬ Face-to-face Contact
¬ Signaling theory
¬ Ideal recruiter characteristics
¬ Knowledge about the job and firm
¬ Doesn’t oversell the employer
¬ Knows the candidate’s background
¬ Expresses interest in the candidate and builds rapport
¬ Positive attitude about company and role
¬ Good interpersonal skills, professional, and ethical
¬ Follows-up promptly
¬ Applicant Reactions to selection procedures
¬ Discrete
¬ Fair / just
¬ Job relevant
¬ Timely
¬ Need to balance rigour / difficulty with applicant reactions
¬ Realistic Job Previews
¬ Reduce voluntary turnover:
¬ Met expectations
¬ Ability to cope
¬ Air of honesty / commitment
¬ Self-selection
Influencing Job Choice
¬ Objective Factors (Job Attributes)
¬ Type of work, Pay, Benefits, Hours, Job Security, etc.
¬ Subjective Factors (Perceived Fit)
¬ Demands-Abilities vs. Needs-Supplies
¬ Supplementary vs. Complementary
¬ Critical Contact
¬ Consistent with Signaling Theory
¬ Recruiter characteristics, perceptions of selection process, etc. influence job choice
Why do Reliability and Validity matter?
- Increase the probability of hiring a high performer—in terms of both task and contextual performance
- Selection systems are legally defensible
- Ethical reasons—selection decisions are high stakes; they have a profound impact on the lives of applicants and others who work with them (for them)
What is Reliability?
- The degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures.
- The proportion of true score variance to error variance in the obtained score
Methods of Estimating Reliability
- Test – retest
- Internal Consistency
- Inter-rater Reliability
What is Validity?
- “the degree to which available evidence supports inferences made from scores on selection measures.”*
- Evidence that the test is measuring OR predicting what it’s supposed to be measuring or predicting
Types of Validity Evidence
- Criterion-related validity
- Concurrent validation studies
- Predictive validation studies
- Content validity
- Does assessment contain a representative sampling of the content domain of the job?
- Experts’ systematic judgment
- No statistical measure of content validity
- Differential Validity
- Test validation aimed at discovering the validity of a test for various subgroups
- Validity generalization
- The extent to which validity coefficients can be generalized across situations.
Steps in the Selection Process
Step 1: Preliminary Reception of Applicants
STEP 2
Applicant Screening
STEP 3
Administration of Employment Tests
STEP 4
Employment Interviews
STEP 5
Realistic Job Previews
STEP 6 Verification of References
Employment references
STEP 7
Contingent Assessments
STEP 8
Hiring Decision
Step 1: Preliminary Reception of Applicants
- Initial contact with applicants
- Walk-ins may receive preliminary interview
- Write-ins often receive letter or email of acknowledgment
- This step has disappeared in many organizations with the increasing use of Internet recruitment
STEP 2
Applicant Screening
- Goal: Remove from consideration applicants who do not meet qualifications
- Weighted application blanks (WAB)
- Ensure application is useful and meets legal requirements
- Biographical information blanks (BIB)
STEP 3
Administration of Employment Tests
Types of Tests
Ø Personality Tests
Ø Ability Tests; Knowledge Tests
Ø Performance Tests
Ø Situational Judgment Tests
Ø Assessment Centres
Ø Integrity Tests
Empirical approaches
Ø Predictive validity
Ø Concurrent validity
Rational approaches
Ø Content validity
Ø Construct validity
Ø Differential validity
Can do compared to will do
Can:
Knowledge
skills
abilities
Will:
personality
values
motivation
Personality Testing – The Big Five Traits
- Extraversion (sometimes called Surgency): The broad dimension of Extraversion encompasses such more specific traits as talkative, energetic, and assertive.
- Agreeableness: Includes traits like sympathetic, kind, and affectionate.
- Conscientiousness: Includes traits like organized, thorough, and planful.
- Neuroticism (sometimes reversed and called Emotional Stability): Includes traits like tense, moody, and anxious.
- Openness to Experience (sometimes called Intellect or Intellect/Imagination): Includes traits like having wide interests, and being imaginative and insightful.
what is Socially Desirable Responding
(Faking)
* Reducing Socially Desirable Responding:
* Bogus pipeline
* Social Desirability Scales:
Example: I never swear
* Forced Choice Response Scales
Ways to Address Concerns
* Forced Choice or Ipsative Scales
Ability and Aptitude
- Cognitive ability tests
Cognitive abilities - intelligence, general mental ability, or intellectual ability
- verbal, numerical, reasoning, memory, problem-solving, and information-processing abilities or skills
- also include general mental ability (GMA, or g),
which is predictive of performance across a wide variety of jobs
Assessment Centres
- Work Sample Tests and Simulations:
In-basket exercise
Leaderless group discussion
Role playing exercise
Presentations and business cases
Computer Simulations
- Interviews & Psychometric assessments
Integrity Tests
- Polygraph Testing
- Paper & Pencil / online assessments
STEP 4
Employment Interviews
- Employment Interviews
Ø Supervisors should have input into the final hiring decision
Ø Common (and expected) as part of the selection process; covered in more detail - 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
- Time consuming and expensive
Types of Interviews
- Interviews may be conducted on-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 if designed well
Types of Structured Interviews
- Behavioural Description Interviews
Based on principle that the best predictor of future behaviour is past behaviour(tell me…, describe a time…) - Situational Interviews
Focus on situations likely to arise on the job
Applicants asked what they would do
(what would you do in this situation…)
Stages in a Typical Interview
1: Interviewer preparation
2: Creation of rapport
3: Information exchange
4: termination of interview
5: evaluation of candidate
Interviewer Errors
- Halo effect
- Leading questions - often have yes/no answers
- Stereotypes
- Interviewer domination
- Contrast errors
Interview Don’ts
- Don’t ask questions that can be answered yes or no.
- Don’t put words in the applicant’s mouth or telegraph a desired answer.
- Don’t interrogate the applicant as if the person is a criminal.
- Don’t over-interpret nonverbal cues.
- Don’t monopolize the interview, nor let the applicant dominate the interview so you can’t ask all the questions. (80/20 rule)
- Don’t try to assess too many KSAs in the interview (use other selection methods if necessary).
Interview Dos
- Do have a standardized, structured interview plan.
- Do base interview questions on job analysis.
- Do focus on assessing personal relations, good citizenship, and job knowledge in interviews.
- Do ask open-ended questions.
- Do listen to the candidate and asking probing questions to encourage him or her to express thoughts fully.
- Do draw out the applicant’s opinions, feelings, and thought patterns by repeating the last statement as a question or paraphrasing.
- Do ask for examples.
- Do take brief notes or record the interview (with candidates permission).
STEP 5
Realistic Job Previews
Realistic Job Previews
Ø Shows the candidate the type of work, equipment & working conditions
Ø Highlights positive & negative
Ø Tends to reduce employee turnover
Ø Don’t do this so late in the process
STEP 6 Verification of References
Employment references
Ø Discuss applicant’s work history
Ø Former supervisors may not be candid, especially with negative information
Ø Reference letters
Ø Background checks
STEP 7
Contingent Assessments
Assessment of health, medical, and driving information
May be scheduled after the hiring decision
Drug tests are increasingly used but may be found to violate employee rights
STEP 8
Hiring Decision
Marks the end of the selection process
Ø Update HRIS
Ø Retain applications for future
Tradeoffs among predictors
Ø Subjective Approach
Ø Multiple Cutoff Approach
Ø Compensatory Approach
Evaluating the Selection Process
- 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
Training and devolop
Strategic Importance of Onboarding, Training, and Development
The onboarding, training, and development functions seek to socialize the new hire to the organization, match what the employee can do with job demands, and tap employee potential for future job roles, all while meeting the employee’s career objectives.
* Time-consuming and expensive efforts, but they:
* reduce turnover
* help employees become productive sooner
* and contribute to overall employee satisfaction
Onboarding
- The process of helping new hires adjust quickly and smoothly to the performance aspects of their new jobs and the social aspects of the organization
- Includes orientation, socialization, training and development activities
- Outcomes include:
Greater retention, faster time to productivity, reduced anxiety, increased motivation, and engagement
orientation
a course introducing a new situation or environment
Includes:
Organizational issues
HR related topics
Role expectations
Socialization
- The continuing process by which an employee begins to understand and accept the values, norms, and beliefs held by others in the organization
- Involves turning outsiders into insiders
- May have taken place even before employees join organization
The Training System
Employee benefits
* Skill improvement, self-development, self-confidence, sense of growth
* Organizational benefits
* Improved profitability, improved morale, lower costs, better corporate image
steps in the training system
- Conducting the Needs Assessment
* Organization Analysis
* An examination of the environment, strategies, and resources of the organization to determine where training emphasis should be placed.
* Task Analysis
* The process of determining what the content of a training program should be on the basis of a study of the tasks and duties involved in the job.
* Person Analysis
* A determination of the specific individuals who need training. - Training objectives:
Performance criteria
desired behavior
conditions - Learning objectives
= Learning principles: Participation, repitition, relevance, transference, feedback
= effective learning - program delivery
- evaluation
Evaluation of Training and Development
Criterion 1: Reaction
* Participant Reactions
* The simplest and most common approach to training evaluation is assessing trainees.
* Potential questions might include the following:
* What were your learning goals for this program?
* Did you achieve them?
* Did you like this program?
* Would you recommend it to others who have similar learning goals?
* What suggestions do you have for improving the program?
* Should the organization continue to offer it?
Criterion 2: Knowledge
* Checking to see whether they actually learned anything
* Testing knowledge and skills before beginning a training program gives a baseline standard on trainees that can be measured again after training to determine improvement.
Criterion 3: Behaviour
* Transfer of Training
* Effective application of principles learned to what is required on the job.
* Maximizing the Transfer of Training
* Feature identical elements
* Focus on general principles
* Establish a climate for transfer
* Give employees transfer strategies
Criterion 4: Results or Return on Investment (ROI)
* Utility of Training Programs
* Calculating the benefits derived from training:
* How much did quality improve because of the training program?
* How much has it contributed to profits?
* What reduction in turnover and wasted materials did the company get after training?
* How much has productivity increased and by how much have costs been reduced?
Employee Development
- Preparing the employee to assume greater responsibilities and authority, often in formal leadership positions
- Talent Management is the practice of preparing a pool of developed employees to meet future organizational challenges and opportunities
Developmental Strategies
Cognitive
* Altering thoughts and ideas – increase knowledge and expertise
* Includes lectures, seminars, academic education
Behavioural
* Change behaviour (e.g., management style)
* Includes role-playing, behaviour modelling, team building, mentoring
Environmental
* Provide the setting for employees to develop
* Includes job rotation, temporary assignments, employee exchange programs, internal consulting, diversity & inclusion training
Performance Appraisal vs. Performance Management
+ Performance Appraisal
A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.
+ Performance Management
The process of creating a work environment in which people can perform to the best of their abilities.
Uses of Performance Appraisal
-Job redesign
-Administrative decisions(pay raises, promotions)
-Feedback and performance improvement
-Employee development and career planning
-Criteria for test validation
-Training program objectives
Guidelines for Appraisals
+ Performance ratings must be job-related.
+ Employees must be given a written copy of their job standards in advance of appraisals.
+ Managers who conduct the appraisal must be able to observe the behaviour they are rating.
+ Supervisors must be trained to use the appraisal form correctly.
+ Appraisals should be discussed openly with employees and counseling or corrective guidance offered.
+ An appeals procedure should be established to enable employees to express disagreement with the appraisal.
Performance Management System Goals
+ Balanced Scorecard
Very popular approach
Combines the performance measures of the total organization—integrates financial goals with customer satisfaction, internal processes, organizational growth, learning, and innovation
Measuring Performance: Comparative Evaluation Methods
+ Comparative Evaluation Methods compare one employee’s performance with that of coworkers.
+ Ranking method: Employees ranked from best to worst
+ Forced distributions:
+ Employees sorted into categories
+ Usually a certain proportion must be put into each category
Measuring Performance: Noncomparative Evaluation Methods
Rating scale:
* Oldest and most widely used method
* Subjective (i.e. based on the rater’s opinion)
* Responses may be given numerical values
BARS & BOS:
* Descriptions of effective/ineffective performance—examples placed along a scale
* Job-related, practical, and standardized
Tests and observations:
* May include paper-and-pencil tests or an actual demonstration of skills
Management by objectives:
* Employee and supervisor jointly establish future performance goals
Measuring Performance: Rater Training
+ Raters are trained on the purpose of the performance appraisal process, its alignment with the organization’s strategy, and the forms themselves (e.g., rater handbook)
+ Rater error training was commonly included:
Halo effect
Error of central tendency
Leniency and strictness biases
Personal prejudice
Recency effect
Contrast errors
Human Resource Function Feedback
+ The performance management process also provides insight into effectiveness of HRM
+ If poor performance is widespread, many employees are excluded from promotions and transfers
+ Unacceptably high numbers of poor performance may indicate errors in the HRM function
e.g., selection process may be screening candidates poorly; job analysis information may be inaccurate
Legal Aspects of Performance Appraisal
+ A performance appraisal form is a legal document
+ Raters must use only performance criteria that are relevant to the job
+ Avoid non-relevant criteria
+ A reasonable time must be set for performance improvement
+ Well-documented performance shortcomings and use of feedback interviews have been viewed favourably in court and with arbitrators
Compensation
- Cash and non-cash rewards employee receive in exchange for their work
- Effective compensation management
- Employees more likely to be satisfied, motivated, and contribute to objectives
- Compensation perceived inappropriate
- Performance, motivation, and satisfaction may decline dramatically
- Turnover may occur
- Dissatisfaction with absolute or relative pay
Total Compensation
- Total compensation includes base wages, variable pay, perks and on-site amenities, status/recognition, and benefits
- Not all have monetary value
- Total reward approaches lead to:
- Easier recruitment of high-quality staff
- Lower turnover
- Higher employee performance
- Enhanced employer reputation
Objectives of Compensation
- Internal equity – pay related to relative worth of jobs
- External equity – paying workers relative to market
- Equity Theory
- An employee’s perception that compensation received is equal to the value of the work performed.
- A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve.
- Weaknesses: Who is the referent other? How do referent others change over time?
Organizational Justice Perceptions
- Distributive Justice
- “what people [are] concerned about [is] not the absolute level of outcomes per se but whether those outcomes [are] fair” (Colquitt et al., 2001, p. 426)
- Procedural Justice
- Procedures used to allocate rewards should be (a) applied consistently, (b) free from bias, (c) use accurate information, (d) have mechanism to correct flawed decisions, (e) ensure that opinions of all stakeholders taken into account (Colquitt et al., 2001)
Expectancy Theory and Pay
Expectancy Theory
A theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value.
Employees also must believe that good performance is valued by their
employer and will result in their receiving the expected reward
Motivating Potential =Expectancy x Instrumentality x Valence
Expectancy= If I increase my effort, I will improve my performance
Instrumentally= If I improve my performance, it will be recognized and valued
Valence= If my performance is recognized, I will receive a valuable reward
Temporal Motivation Theory
Motivating Potential =E x I x V/Impulsiveness x Delay
Impulsiveness= Will I work to attain something I value, even though it might take a long time to receive the reward? Can I delay gratification?
Delay= How long do I have to wait to get the reward?
Determining Direct Compensation (4 phases)
Phase 1: Establishing the Compensation Philosophy
* Job Size
* Performance
* Market
* Lead
* Match
* Lag
Phase 2 Job Analysis
* Understand the job and skills needed
* Job analysis information
o Job descriptions
o Job specifications
o Performance standards
Phase 3: Pricing Jobs
* Determine relative worth or value of jobs
* Three approaches:
o Job evaluation
o Market-pricing
o Skill-based
Pricing Jobs: Job Evaluation Methods
* Systematic procedures to determine the relative worth or value of jobs (internal equity)
* Job ranking
* Job grading
* Point System
- Phase 4: Matching Employees to Pay
- Establishing the pay level for each job
o Combines job evaluation rankings, survey wage rates, and other considerations (e.g. organization’s pay policy)
o Wage-trend line developed - Creating compensation structure
o Job classes and rate ranges
Job Ranking
- Job ranking is the simplest job evaluation method
- Jobs are subjectively ranked by importance in comparison to other jobs with higher ranked jobs paid more
- E.g., In retail sales, the regional manager job may be ranked 1, store manager job as 2, and sales assistant job as 3
- Rankings do not differentiate the relative importance of jobs
Job Grading
- Job Classification or Grading System
- A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.
- Successive grades require increasing amounts of job responsibility, skill, knowledge, ability, or other factors selected to compare jobs.
Point System
- Point System
- A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it.
- Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job.
- The Point Manual
- A handbook that contains a description of the compensable factors and the degrees to which these factors may exist within the jobs.
Pricing Jobs: Market-Based Pay Structures
- Market-pricing focuses on external competitiveness
- How much should organizations pay for jobs based on what their competitors are paying
- Wage and salary surveys
- Same labour market comparable jobs
- Matching the market, market leader, market lag
Pricing Jobs: Skill-Based Pay
- Pay is based on depth (gaining greater expertise in existing skills), breadth (increases in the employee’s range of skills), and self-management (gaining higher level management-type skills, such as budgeting, training, planning, and so forth)
The Wage Curve
- Wage Curve
A curve in a scattergram representing the relationship between relative worth of jobs and wage rates. - Pay Grades
Groups of jobs within a particular class that are paid the same rate. - Rate Ranges
A range of rates for each pay grade that may be the same for each grade or proportionately greater for each successive grade. - Red & Green Circle Rates
Payment rates above the maximum (red circle) or below the minimum (green circle) of the pay range
Pay Equity
- Equal pay for equal work (Equal Pay)
- Part of Canada Labour Code since 1971
- Employers must pay men and women the same wage or salary when they do the same work
- Equal pay for work of equal value (Pay Equity)
- Jobs of comparable worth to the organization should be paid equally
- Part of Canadian Human Rights Act since 1978
Pay Equity - Most legislation has dictated the use of an evaluation system that evaluates:
1. Skill (Complexity, Knowledge, Education, Experience)
2. Effort (Physical and Mental Demands)
3. Responsibility (Accountability, Supervision, Budget)
4. Working Conditions (Physical Environment, Concentrationx, Stress)
- Daniel Pink
- What are the problems with extrinsic rewards for problems that require creativity?
- What is the alternative?
Daniel Pink argues that extrinsic rewards (like money or prizes) can hinder creativity because they narrow focus, shift motivation toward external incentives, and reduce intrinsic drive. This is especially problematic for tasks requiring creative thinking, where intrinsic motivation (doing something for the enjoyment or satisfaction of it) is key. Instead of relying on extrinsic rewards, Pink suggests fostering intrinsic motivation by providing three key elements:
1. Autonomy: Giving people control over their work.
2. Mastery: Encouraging progress and skill development.
3. Purpose: Connecting the work to something meaningful.
These factors, according to Pink, lead to more creative, innovative, and sustainable motivation.
- Lincoln Electric
- Why does piecework work well for them?
- What else do they do to make the system work?
Piecework works well for Lincoln Electric because it directly ties workers’ pay to their output, motivating them to be more productive. The company’s skilled workforce benefits from this system, as higher productivity leads to higher pay. Additionally, the company’s strong culture of trust, job security, and autonomy helps workers thrive in a performance-driven environment.
Key Practices that Make It Work:
1. Incentive Programs: Profit-sharing and stock ownership align workers’ interests with the company’s success.
2. High Standards: The system rewards both quantity and quality, ensuring product excellence.
3. Training: Continuous skill development enhances worker productivity.
4. Job Security: Long-term employment fosters loyalty and motivation.
5. Collaborative Culture: Employee involvement in decision-making boosts engagement.
Together, these practices make the piecework system effective, ensuring both worker motivation and company success.
Individual Incentive plans
- Piecework: is an incentive system that compensates the worker for each unit of output. Daily or weekly pay is determined by multiplying the output in units times the piece rate per unit. For example, in agricultural labour, workers are often paid a specific amount per bushel of produce picked. Piecework does not always mean higher productivity, however. Group norms may have a more significant impact if peer pressure works against higher productivity. And in many jobs, it may be difficult to measure the person’s productive contribution (e.g., receptionist), or the employee may not be able to control the rate of output (e.g., an assembly-line worker).
- Commissions: Commission is commonly paid in sales jobs. The salesperson may be paid a percentage of the selling price or a flat amount for each unit sold. Organizations often tie commission rates to sales quotas. Salespeople meeting the highest quotas will be paid the highest commission rates, with those meeting lower targets paid lesser commission rates.
- Production Bonuses: are incentives paid to workers for exceeding a specified level of output. They are used in conjunction with a base wage rate or salary. Under one approach, the employee receives a predetermined salary or wage. Through extra effort that results in output above the standard, the base compensation is supplemented by a bonus, usually figured at a given rate for each unit of production over the standard
- Discretionary bonus plans: employees are paid base wages and then are paid a bonus at the discretion of management. When these bonuses are paid on the basis of performance, management will typically determine the size of the total bonus pool and then allocate amounts to individuals after a performance period. The top employees may receive bonus amounts commonly around 10 percent of their base salary. Employees who did not meet performance expectations will get no bonus. A related form of discretionary bonus is pay-at-risk. Employees can earn the additional amount or percentage of their wages that is pay-at-risk provided they meet specific targets.
- Spot awards: recognize special contributions as they occur. Employees may receive spot awards for a project or task, generally accomplished in a short period. These types of recognition awards can range from gift certificates and thank-you notes to paid time off to cash awards or salary increments unrelated to annual merit increases.
Group Incentive Plans:
- Team Results:
o Team Results Under team-based pay plans, employee bonuses and salary increases are based on a team’s overall results and typically shared equally. There can be a number of advantages in a team-based pay system. For example, in project teams, many jobs are interrelated; that is, they depend on each other for making progress. A team approach tends to foster group cohesion and organizational commitment. Communication in cohesive teams tends to be more open, and decision making can be more effective if a consensus approach is in the team’s interest. Team-based pay often includes rewards for developing better interpersonal skills to improve cooperation and incentives for crosstraining.
o There can also be disadvantages to team-based pay systems. If team cohesiveness is not strong, a “freeloader effect” may take place. As in any group, individual contributions to team goals vary. Some put in more effort; others, less. If these differences are significant and the high performers do not receive satisfaction for their input, they may cut back their contributions. - Production Incentive Plans: Production incentive plans allow groups of workers to receive bonuses for exceeding predetermined levels of output. They tend to be short-range and related to very specific production goals. A work team may be offered a bonus for exceeding predetermined production levels, or it may receive a per-unit incentive that results in a group piece rate
Enterprise Incentive Plans:
- Profit-Sharing Plans: A profit-sharing plan shares company profits with the workers. When the organization is profitable, the employer shares profits with all, or a participating group of, employees. The amounts paid are given to a trustee and invested for the benefit of all of the beneficiaries of the plan. Profitability, however, is not always related to employee performance: A recession or new competitors may impact whether or not the company makes money. Furthermore, it is often difficult for employees to perceive their efforts as making much difference
- Employee Stock Ownership Plans (ESOPs): Employee Stock Ownership Plans (ESOPs) offer companies a way to motivate and retain employees by giving them ownership through company stock, aligning their interests with the company’s success. They provide tax benefits and can aid in succession planning by allowing business owners to sell to employees. However, ESOPs also carry risks, such as financial exposure for employees if the company’s stock performs poorly, and the complexity and cost of administration. Companies may face cash flow pressures and liquidity challenges, particularly in private firms where employees can’t easily sell their shares. While they can foster a strong ownership culture, there is also the potential for employees to focus on short-term stock performance at the expense of long-term company health.
