Business

Essentials
Ebert, Griffin, Starke,
Dracopoulos

8th Canadian Edition

1 Copyright © 2017 Pearson Canada Inc.

CHAPTER 8

Managing Human
Resources and
Labour Relations
Learning Objectives
 Define human resource management, discuss its
strategic significance, and explain how managers
plan for human resources.

 Identify the issues involved in staffing a company,

including internal and external recruiting and
selection.

 Discuss different ways in which organizations go

about developing the capabilities of employees and
managers.

 Discuss the importance of wages and salaries,

incentives, and benefit programs in attracting and
keeping skilled workers.

 Describe some of the key legal issues involved in

hiring, compensating, and managing workers in
today’s workplace.

3 Copyright © 2017 Pearson Canada Inc. 3

Learning Objectives

 Discuss workforce diversity, the management of

knowledge workers, and the use of contingent and
temporary workers as important changes in the
contemporary workplace.

 Trace the evolution of, and discuss trends in

unionism in Canada.

 Describe the major laws governing unionism.

 Identify the steps in the collective bargaining
process.

4 Copyright © 2017 Pearson Canada Inc. 4

 Foundations of Human Resource Management
(LO 8-1)

Human Resource Planning

Job Analysis
detailed study of the duties of a specific job and the required
qualifications

Job Description Job Specification

duties of the job skills, abilities, and credentials
working conditions needed to do the job
tools and materials needed

5 Copyright © 2017 Pearson Canada Inc.

 Foundations of Human Resource Management
(LO 8-1)

• Forecasting HR demand and supply

Internal Supply

External Supply

Replacement Charts

Skills Inventories

6 Copyright © 2017 Pearson Canada Inc.

 Staffing the Organization
(LO 8-2)

• Recruiting Human Resources

• process of attracting qualified people to apply for jobs

Internal
Recruiting

External
Recruiting

Internships

7 Copyright © 2017 Pearson Canada Inc.

 Staffing the Organization
(LO 8-2)

• Selecting Human Resources

• gather information that predicts job success and hire best candidate

Other
Application Interviews Techniques Tests
Forms Behaviour-Based Physical Exam
Assessment center
Video assessment
Reference Checks

Validation

8 Copyright © 2017 Pearson Canada Inc.

 Developing Human Resources
(LO 8-3)

company
policies and personnel nature of the
programs job

Orientation:
introduce new employees
to the company

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 Developing Human Resources
(LO 8-3)

Training and Development

• On-the-job training
• employees gain new skills while performing them at work

• Systematic job rotations and transfers

• employees are rotated or transferred from one job to another,
building a more comprehensive view of the organization or job
unit

10 Copyright © 2017 Pearson Canada Inc.

 Developing Human Resources
(LO 8-3)
• Off-the-job training: train workers away from the workplace
• vestibule training: simulates the actual working environment
• flight simulators for pilots

• Management Development Training

Mentoring &
Lecture or
Networking Reverse
Discussion
Mentoring

• Team Building and Group-Based Training

• programs developed to increase cooperation
• outdoor training exercises

11 Copyright © 2017 Pearson Canada Inc.

 Evaluating Employee Performance
(LO 8-3)

• Performance Appraisal
• formal evaluation of
employees
• Supervisors
• Self-evaluation
• Customer feedback

• Performance Feedback
• needed to help improve
performance
• often difficult to give negative
feedback

12 Copyright © 2017 Pearson Canada Inc.

 Evaluating Employee Performance
(LO 8-3)

Supervisor

Co-
360
Co-
workers Degree workers
Feedback

Subordinates

Gather information from all sources.

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 Providing Compensation and Benefits
(LO 8-4)

• Basic Compensation

Wages Salaries

• Determining Basic Compensation

Pay Surveys Job Evaluation

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 Providing Compensation and Benefits
(LO 8-4)

Performance-Based Compensation

Incentive programs

• Individual Incentives
• piece-rate plan
• bonus
• pay-for-performance
• pay-for-knowledge

• Team and Group Incentives

• profit-sharing
• gainsharing

15 Copyright © 2017 Pearson Canada Inc.

 Providing Compensation and Benefits
(LO 8-4)

Benefits: non-financial rewards

• mandated protection plans (e.g. Canada

Pension Plan)
• optional protection plans
• paid time off
• other types of benefits
• wellness programs
• cafeteria-style benefits plan

16 Copyright © 2017 Pearson Canada Inc.

 The Legal Context of HRM
(LO 8-5)

• Equal Employment Opportunity

• people from unfair or inappropriate discrimination

• Anti-discrimination laws
• Canadian Human Rights Act of 1977

• Bona fide occupational requirement

• allows an individual to be chosen over another due to job
characteristics

8-17
17 Copyright © 2017 Pearson Canada Inc.
 The Legal Context of HRM
(LO 8-5)

• Employment Equity Act

• federal legislation that designates four groups as employment
disadvantaged

Visible
Women
minorities

Aboriginal People with

people disabilities

18 Copyright © 2017 Pearson Canada Inc.

 The Legal Context of HRM
(LO 8-5)

Comparable worth

• equal wages should be paid for

work of equal value
• jobs must be classified based on
the qualifications
• jobs with similar requirements
must be paid the same

Critics argue that such approaches

ignore the supply-and-demand
aspects of labour

19 Copyright © 2017 Pearson Canada Inc.

 The Legal Context of HRM
(LO 8-5)

• Sexual Harassment
• requests for sexual favours, unwelcome sexual advances, or
verbal or physical contact of a sexual nature

Quid pro quo Hostile work

harassment environment

20 Copyright © 2017 Pearson Canada Inc.

 The Legal Context of HRM
(LO 8-5)

• reduce absenteeism and labour

turnover
Health
and • raise productivity

Safety • boost morale

Programs
• make the workplace safer and
healthier

21 Copyright © 2017 Pearson Canada Inc.

 The Legal Context of HRM
(LO 8-5)

Retirement

Regular retirement Average retirement Those employees

age is 65 years, but age dropped from staying past 65 are
not mandatory in most 65 in 2009, to 62 usually the most
provinces today. productive ones

22 Copyright © 2017 Pearson Canada Inc.

 New Challenges in the Changing Workplace
(LO 8-6)

• Managing Workforce Diversity

• everyone in the workforce must be treated equitably regardless
of gender, race, ethnicity etc.
• diversity provides new perspectives and opportunities

23 Copyright © 2017 Pearson Canada Inc.

 New Challenges in the Changing Workplace
(LO 8-6)

• Managing Knowledge Workers

• employees who are experts in specific fields (technology,
engineering, science), pose a special management challenge in
training and retention due to high demand

24 Copyright © 2017 Pearson Canada Inc.

 New Challenges in the Changing Workplace
(LO 8-6)

• Managing Contingent Workers

• non-permanent or part-time workers

• hiring of contingent workers is on the rise

• contingent hiring at top levels is increasing

• Management issues
• fairness and cost issues
• understanding and planning strategies

25 Copyright © 2017 Pearson Canada Inc.

 Dealing With Organized Labour
(LO 8-7)

• Labour Unions
• groups of individuals working
together to achieve job-related
goals

• Collective Bargaining
• the process by which union leaders
and management negotiate terms
and conditions of employment
• pay
• working hours
• job security
• benefits
• working conditions

26 Copyright © 2017 Pearson Canada Inc.

 Dealing With Organized Labour
(LO 8-7)

• Unionism Today

• difficulties in attracting
new members

• diversity in the workforce

consists of non-traditional
members of a union

• employers are engaging

in more anti-union
activities, including more
employee-friendly
workplaces

27 Copyright © 2017 Pearson Canada Inc.

 Dealing With Organized Labour
(LO 8-7)

Union–Management Relations

• The decline in “smokestack” industries (manufacturing),

deregulation and evolving technology has changed the
relationship.
• Unions must cooperate with employers to ensure survival of unions and
companies
• Unions today emphasize
• job security
• gaining or maintaining benefits

28 Copyright © 2017 Pearson Canada Inc.

 The Legal Environment for Unions in Canada
(LO 8-8)

Federal Legislation

The Canadian Labour Code

• Labour legislation for firms operating under federal parliamentary

authority
• fair-employment practices
• safety of employees
• standard hours, wages, vacations and holidays
• industrial-relations regulations

*labour codes vary across provinces but the substance is the same

29 Copyright © 2017 Pearson Canada Inc.

 The Legal Environment for Unions in Canada
(LO 8-8)

Union Organizing Strategy

• Determine and seek

government approval
Certifying • Establish a bargaining unit
a Union • Legislators order certification
vote
* Employees may decide on a
decertification vote to terminate
union’s right to represent them

30 Copyright © 2017 Pearson Canada Inc.

 The Legal Environment for Unions in Canada
(LO 8-8)
Level of Union Security

• Closed Shop
• an employer can hire only union members.

• Union Shop
• an employer can hire non-unionized workers, but they must join the
union within a certain period.

• Agency Shop
• all employees must pay dues, but they are not required to join the
union.

• Open Shop
• an employer may hire union or non-union workers.

31 Copyright © 2017 Pearson Canada Inc.

 Collective Bargaining
(LO 8-9)

Collective bargaining begins

(union-management)

bargaining zone is established

(reasonable range of options)

A ratification vote is taken to accept or

reject a tentative agreement

32 Copyright © 2017 Pearson Canada Inc.

 Collective Bargaining
(LO 8-9)

Contract Issues
• Compensation
• wages, cost-of-living-adjustment
(COLA), wage re-opener clause

• Benefits
• insurance, retirement benefits,
pensions, working conditions, etc.

• Job Security

• Other Issues
• working hours, overtime policies,

grievance procedures, etc.

33 Copyright © 2017 Pearson Canada Inc.

 Collective Bargaining
(LO 8-9)

• When Bargaining Fails

• impasse: management and
labour unable to agree on a
contract

• Union Tactics

strike picket

boycott slowdown

34 Copyright © 2017 Pearson Canada Inc.

 Collective Bargaining
(LO 8-9)
Management Tactics

Lockout of workers
• employees are not
permitted on the premises
to do their jobs

Close down the business

Contract jobs out to non-

union workers

Hire strike-breakers
(“scabs”)

35 Copyright © 2017 Pearson Canada Inc.

 Collective Bargaining
(LO 8-9)

• neutral third party helps the two sides

Conciliation clarify the issues

• neutral third-party hears arguments

and makes a suggested resolution
Mediation • has no legal authority to enforce the
recommendation

• appoint a third-party to devise and

impose a solution
Arbitration • has legal authority to do so
• may be voluntary or compulsory

36 Copyright © 2017 Pearson Canada Inc.

 QUICK-CHECK QUESTIONS
1) ___________ is a system where new employees (usually much younger)
can help train more experienced workers in areas like social media and
technology applications.

A) EQ Internships
B) Reverse mentoring
C) Apprenticeship
D) Reverse Job Analysis

Answer:
B) Reverse mentoring

37 Copyright © 2017 Pearson Canada Inc.

 QUICK-CHECK QUESTIONS
2) The ____________ highlights an employee’s particularly good and bad
performances to help guide the employee toward continued positive
efforts or to indicate the required areas of improvement.

A) critical incident method

B) 360-degree feedback method
C) simple graphic rating method
D) graphic rating scale method

Answer:
A) critical incident method

38 Copyright © 2017 Pearson Canada Inc.

 QUICK-CHECK QUESTIONS
3) One of the newer forms of performance appraisals is called the
___________ because it encourages feedback from managers,
subordinates and co-workers.

A) Environment Review
B) Emotional Intelligence Inventory (EQ-i)
C) 360-degree feedback
D) Cognitive Aspect Assessment

Answer:
C) 360-degree feedback

39 Copyright © 2017 Pearson Canada Inc.

 QUICK-CHECK QUESTIONS
4) Blue Skies Airlines will not employ visually impaired applicants when
selecting pilots. This is permitted, without appearing discriminatory,
because of ___________________.

A) the bona fide occupational requirement

B) the Human Rights Act
C) duty to accommodate
D) the Employment Equity Act

Answer:
A) the bona fide occupational requirement

40 Copyright © 2017 Pearson Canada Inc.

 QUICK-CHECK QUESTIONS
5) ___________ is the use of a neutral third party to encourage labour and
management to continue negotiating in good faith, in an effort to settle
a dispute and reach a mutually acceptable agreement.

A) Arbitration
B) Mediation
C) Grievance Option
D) Strike Mandate

Answer:
B) Mediation

41 Copyright © 2017 Pearson Canada Inc.