Chapter 9

Human Resource
Management

Robbins et al., Fundamentals of Management, 4th Canadian Edition FOM 9.1

©2005 Pearson Education Canada, Inc.
 Human Resource
Management

The integration of all processes,

programs, and systems in an
organization that ensure staff are
acquired and used in an effective
way
Robbins et al., Fundamentals of Management, 4th Canadian Edition FOM 9.2
©2005 Pearson Education Canada, Inc.
 Strategic Human Resource
Management (Exhibit 9-1)

HR planning
Recruitment
Selection
Organizational and
work design
Training and
development
Performance review
Compensation
Labour relations

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.3
 Strategic Importance of HRM
 Can establish an organization’s sustainable
competitive advantage
 Shortfall of 500 million workers
 Requires fundamental change in how
managers think about employees
 Partners and Investments
 Need to consider outsourcing certain HR
transactions
 But then what does the HR dept. do?

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.4
 Legal Environment of HRM
 Federal and provincial governments
influenced HRM through laws and regulations
 Huge increase in this since 1960’s
 Employers must ensure that managers
understand their obligations and comply
 Four primary areas of employment legislation
 Lets look at the Main One

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.5
 Human Rights Legislation
 Has the most impact on HR decisions
 Protects individuals and groups from
discrimination
 Protects employees from harassment--
both workplace and sexual
 Consider the time, (which translates to
money), that managers spend on HRL
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 9.6
 Other Employment Legislation
 Employment standards
 Basic or minimum employment conditions in an
organization
 Minimum wage, hours of work, OT pay
 Health and safety
 Healthy and Safe work Environment
 On the Job Injuries
 Labour relations
 Relationship between union and employer
 Not all organizations are covered by Labour
Relations
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 9.7
 Global Laws and HRM
 Laws and regulations are not the same
throughout the world
 Working Conditions, Pay, H&S
 Important for manage to know the
legislation in the country in which they
are working

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.8
 Human Resource Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 9.9
 HR Planning
 We have found the gap, how do we fill
this void?
 How much time should we spend on
identifying the right person?
 Lets follow the trail of what it takes to
hire a new team member in an
oganization.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.10
 Recruitment
 Process of locating,
identifying, and attracting
capable candidates
 Can be for current or
future needs
 Critical activity for some
corporations.
 What sources do we use
for recruitment

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.11
 School
Internal Placement Employee
Searches Referrals

Recruitment
Employee Temp
Leasing
Sources Services

Employment
Agencies Advertisements

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.12
 Selection
 Prediction exercise
 Thus, Not Perfect
 Decision-making
exercise
 Purpose is to hire the
person(s) best able to
meet the needs of the
organization
 Tied Back to Strategy

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.13
 Selection
 Are there ways that managers can
ensure that the decision achieves the
desired outcome? (time and time again)
 Yes, use HR Tools which are Reliable &
Valid

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.14
 Reliability
 Degree to which selection tool measures
the same thing consistently
 Can be a test or an interview
 Same questions need to be asked.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.15
 Validity
 Relationship between selection tool and
appropriate criterion
 What a selection technique measures and
how well it measures
 Must be proven and relevant to job
 Eg: keyboarding skills for data entry clerk.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.16
 The Effectiveness of
Interviews
 Prior knowledge about an applicant
 Attitude of the interviewer
 The order of the interview
 Negative information
 The first five minutes
 The content of the interview
 The validity of the interview
 Structured versus unstructured interviews
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 9.17
 Common Types of Interviews
 Non-directive
 Most Latitude
 Questions are open ended
 This can get you into trouble
 Behavioural Description
 As about a situation you have experienced.
 Structured
 Panel
 Situational
 Why is a Situational Analysis Good.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.18
 Interview Questions
 Lets come up with some interview
questions!

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.19
 Written Tests
 Intelligence
 General aptitude
 Ability
 Interest

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.20
 Reference Checks
 Potential employer seeks to verify
information
 Important to have well-constructed
questions
 Can you Outsource This?
 How far can you dig?

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.21
 Your Hired
 Now What?
 Most Important Stage

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.22
 Orientation
Process to introduce new employees to


organization
Familiarization to Organization and its Values
 Familiarize new employee to job and

work unit
Improved Success On the Job
 Help employee to understand values,

beliefs, and acceptable behaviours

Minimizes Turnover

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.23
 Training and Development
 Learning experience that seeks
relatively permanent change
 Involves changing skills, knowledge,
attitudes or behaviours
 Training tends to be done for current job
 Develop usually means acquiring skills
for future work
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 9.24
 Employee Training
What deficiencies, if any,
What are
does job holder have in
Is there a the strategic
terms of skills, knowledge,
need for goals of the
abilities, and behaviours?
training? organization?

What tasks must

be completed
What behaviours are
to achieve
necessary?
goals?

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.25
 Training
 Can you Train Someone out of a job?

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.26
 Performance Management
 Integration of management practices that
includes a formal review of employee
performance
 How often should this take place?
 Includes establishing performance standards
and reviewing the performance
 Means to ensure organizational goals are
being met

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.27
 Performance Review Methods

Written Critical
Essay Incidents

Graphic
BARS Multiperson
Rating Scales

360-Degree
MBO
Review

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.28
 If Performance Falls Short
 Train
 Discipline
 Coach
 Out the Door

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.29
 Compensation Management
 Process of determining
cost-effective pay
structure
 Designed to attract and
retain
 Provide an incentive to
work hard
 Structured to ensure
that pay levels are
perceived as fair

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.30
Factors That Influence Compensation
Employee’s
tenure and Company
performance profitability

Kind of job
Size of performed
company Level of
Compensation
and Kind of
Geographical Benefits business
location

Management Unionization
philosophy Labour- or
capital-intensive
Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary
Coulter, and Robin Stuart-Kotze, page 274. Copyright © 2003. Reprinted by permission
of Pearson Education Canada Inc. FOM 9.29
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc.
 Employee Benefits
 Indirect financial rewards
 Designed to enrich employees’ lives
 Vary widely in scope
 Costs range from 30% to 40% of payroll
costs

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.32
 Health and Safety
 Employers are responsible for ensuring
a healthy and safe work environment
 Employees are required for follow
instructions and any legal requirements
 Workplace violence is a growing
concern

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.33
 Labour Relations
 Relationship between union and employer
 Union functions as the voice of employees
 Collective bargaining is a process to
negotiate terms and conditions of
employment
 Bargaining produces a written document
called a collective agreement

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 9.34