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 organizations 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 1960s
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 Success On the Job
Improved
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
Employees
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