+ All Categories
Home > Documents > Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and...

Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and...

Date post: 06-Feb-2018
Category:
Upload: lytuyen
View: 217 times
Download: 0 times
Share this document with a friend
16
Toronto Fourth Canadian Edition Management of Human Resources: The Essentials Gary Dessler Florida International University Nita Chhinzer University of Guelph Nina D. Cole Ryerson University
Transcript
Page 1: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

Toronto

Fourth

Canadian

Edition

Management of Human Resources: The Essentials

Gary DesslerFlorida International University

Nita ChhinzerUniversity of Guelph

Nina D. ColeRyerson University

A01_DESS4905_04_SE_FM.indd 1 12/31/13 11:46 AM

Page 2: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

Acquisitions Editor: Deana SigutMarketing Manager: Leigh-Anne GrahamDevelopmental Editor: Charlotte Morrison-ReedMedia Editor: Imee SalumbidesMedia Producer: Olga AvdyeyevaProgram Manager: Karen TownsendProject Manager: Jessica HellenProduction Services: GEX Publishing ServicesPhoto Permissions Research: Q2a/Bill Smith/ Rebecca O’MalleyText Permissions Research: Samantha Bingenheimer, Electronic

Publishing Services Inc.Cover and Interior Designer: Anthony LeungCover Image: GettyImages

Credits and acknowledgments of material borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within the text and on pp. 347–366.

Original edition, entitled Human Resource Management, published by Pearson Education, Inc., Upper Saddle River, New Jersey, USA. Copyright © 2013, 2011, 2008, 2005, 2003 by Pearson Education, Inc. This edition is authorized for sale only in Canada.

If you purchased this book outside the United States or Canada, you should be aware that it has been imported without the approval of the publisher or author.

Copyright © 2015, 2011, 2007, 2004 Pearson Canada Inc. All rights reserved. Manufactured in the United States of America. This publication is protected by copyright and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Canada Inc., Permissions Department, 26 Prince Andrew Place, Don Mills, Ontario, M3C 2T8, or fax your request to 416-447-3126, or submit a request to Permissions Requests at www.pearsoncanada.ca.

10 9 8 7 6 5 4 3 2 1 [TBC]

Library and Archives Canada Cataloguing in Publication

Dessler, Gary, 1942-, author Management of human resources: the essentials / Gary Dessler, Florida International University, Nita Chhinzer, University of Guelph, Nina D. Cole, Ryerson University. -- Fourth Canadian edition.

Revision of: Management of human resources / Gary Dessler, Carolin  Rekar Munro, Nina D. Cole. -- 3rd Canadian ed. -- Toronto:  Pearson Prentice Hall, 2010.

Includes bibliographical references and index.ISBN 978-0-13-211490-5 (pbk.)

1. Personnel management--Textbooks. 2. Personnel management-- Canada--Textbooks. I. Cole, Nina D. (Nina Dawn), author II. Chhinzer, Nita, author  III. Title.

HF5549.M3132 2014 658.3 C2013-908455-X

ISBN 978-0-13-211490-5

DedicationTo my mother

—G.D.

I would like to dedicate this book to those students who consistently demonstrate the ability to integrate,

analyse and transfer knowledge, both within the classroom and outside of it.

Your excellence keeps me inspired. —N.N.C.

To Peggy Martin —N.D.C.

A01_DESS4905_04_SE_FM.indd 2 12/31/13 11:46 AM

UHellJe
Cross-Out
UHellJe
Inserted Text
WC
Page 3: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

iii

Preface ix

Part 1 Human Resources Management in Perspective 1Chapter 1 The Strategic Role of Human Resources Management 1

Chapter 2 The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces 23

Part 2 Meeting Human Resources Requirements 48Chapter 3 Designing and Analyzing Jobs 48

Chapter 4 Human Resources Planning and Recruitment 75

Chapter 5 Selection 114

Part 3 Developing Effective Human Resources 144Chapter 6 Orientation and Training 144

Chapter 7 Performance Management 171

Part 4 Total Rewards 198Chapter 8 Strategic Pay Plans 198

Chapter 9 Employee Benefits and Services 231

Part 5 Building Effective Employee–Employer Relationships 257Chapter 10 Occupational Health and Safety 257

Chapter 11 Managing Employee Separations: Foundations of Employee Engagement, Communication, and Turnover Management 285

Chapter 12 Labour Relations 303

Part 6 Global Issues in Human Resources Management 327Chapter 13 Managing Human Resources in a Global Business 327

Notes 347

Glossary 000

Name and Organization Index 000

Subject Index 000

Credits 000

Brief Contents

A01_DESS4905_04_SE_FM.indd 3 12/31/13 11:46 AM

Page 4: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

A01_DESS4905_04_SE_FM.indd 4 12/31/13 11:46 AM

Page 5: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

Preface ix

Part One Human Resources Management in Perspective 1

Chapter 1 The Strategic Role of Human Resources Management 1The Strategic Role of Human Resources Management 2

A Brief History of HRM 3

Strategic HR The HR Role Continues to Evolve 8

Growing Professionalism in HRM 9

Environmental Influences on HRM 12

Chapter 2 The Changing Legal Emphasis: Compliance and Impact on Canadian Workplaces 23The Legal Framework for Employment Law in Canada 24

Legislation Protecting the General Population 27

Global HRM UK Court Awards $1.7 Million to Bullied Employee 34

Legislation Specific to the Workplace 39

Part tWO Meeting Human Resources Requirements 48

Chapter 3 Designing and Analyzing Jobs 48Fundamentals of Job Analysis 49

Step 1: Review Relevant Organizational Information 51

Step 2: Select Jobs to Be Analyzed 54

Step 3: Collecting Job Analysis Information 59

Step 4: Verifying Information 64

Step 5: Writing Job Descriptions and Job Specifications 65

Entrepreneurs and HR A Practical Approach to Job Analysis and Job Descriptions 67

Step 6: Communication and Preparations for Revisions 71

Chapter 4 Human Resources Planning and Recruitment 75The Strategic Importance of Human Resources Planning 76

Forecasting the Availability of Candidates (Supply) 79

Entrepreneurs and HR Succession Planning and Family Businesses 82

Strategic HR Pumping Up People Supply 83

Forecasting Future Human Resources Needs (Demand) 84

Planning and Implementing HR Programs to Balance Supply and Demand 88

Recruitment 93

The Recruitment Process 94

Developing and Using Application Forms 95

Recruiting from within the Organization 96

Recruiting from Outside the Organization 98

Table of Contents

v

A01_DESS4905_04_SE_FM.indd 5 12/31/13 11:46 AM

Page 6: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

vi Contents

Recruiting a More Diverse Workforce 107

Strategic HR Attracting the Younger Generation 108

Workforce Diversity The Disconnect in Recruiting People with Disabilities 109

Chapter 5 Selection 114The Strategic Importance of Employee Selection 115

Workforce Diversity Principles for Assessment Accommodations 119

Step 1: Preliminary Applicant Screening 119

Step 2: Selection Testing 120

Step 3: The Selection Interview 128

Step 4: Background Investigation/Reference Checking 134

Step 5: Supervisory Interview and Realistic Job Preview 136

Step 6: Hiring Decision and Candidate Notification 137

Appendix 5.1 A Guide to Screening and Selection in Employment 141

Part tHree Developing Effective Human Resources 144

Chapter 6 Orientation and Training 144Become a Learning Organization 145

Orienting Employees 146

Strategic HR Onboarding: The First Step in Motivation and Retention 147

The Training Process 152

The Five-Step Training Process 154

Career Planning and Development 161

Workforce Diversity Career Development for Older Workers 162

Managing Internal Employee Movement 166

Chapter 7 Performance Management 171The Strategic Importance of Performance Management 172

The Performance Management Process 172

Step 1: Defining Performance Expectations 173

Global HRM Performance Appraisal Criteria in China 174

Step 2: Providing Ongoing Coaching and Feedback 175

Step 3: Performance Appraisal and Evaluation Discussion 175

Step 4: Determine Performance Rewards/Consequences 180

Step 5: Career Development Discussion 181

Performance Appraisal Problems and Solutions 181

Workforce Diversity Watch for Cultural Biases in Assessing Employees 184

Strategic HR Jaguar Land Rover Formal Appraisal Discussion Training 191

Legal and Ethical Issues in Performance Management 193

The Future of Performance Management 194

A01_DESS4905_04_SE_FM.indd 6 12/31/13 11:46 AM

Page 7: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

viiContents

Part FOUr Total Rewards 198

Chapter 8 Strategic Pay Plans 198The Strategic Importance of Total Employment Rewards 199

Strategic HR Rewards Program Effectiveness at the World’s Most Admired Companies 200

Basic Considerations in Determining Pay Rates 201

Pay Equity 202

Establishing Pay Rates 203

Pay for Knowledge 212

Developing Effective Incentive Plans 213

Money and Motivation 215

Types of Incentive Plans 216

Strategic HR Rewards That Work 217

Organization-Wide Incentive Plans 225

Chapter 9 Employee Benefits and Services 231The Strategic Role of Employee Benefits 232

Government-Mandated Benefits 233

Voluntary Employer-Sponsored Benefits 238

Global HRM Defined Benefit Pension Problems and Solutions around the World 246

Employee Services 248

Flexible Benefits Programs 252

Benefits Administration 253

Part FIVe Building Effective Employee–Employer Relationships 257

Chapter 10 Occupational Health and Safety 257Strategic Importance of Occupational Health and Safety 258

Basic Facts about Occupational Health and Safety Legislation 258

What Causes Accidents? 262

Workforce Diversity Guiding Young Workers in Health and Safety 267

How to Prevent Accidents 267

Strategic HR Top Management Commitment to Safety at Steelcase Canada Pays Off 269

Entrepreneurs and HR Small Business Safety Calculator 270

Occupational Health and Safety Challenges in Canada 271

Employee Wellness Programs 281

A01_DESS4905_04_SE_FM.indd 7 12/31/13 11:46 AM

Page 8: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

viii

Chapter 11 Managing Employee Separations: Foundations of Employee Engagement, Communication, and Turnover Management 285The Importance of Managing Employee Separations 286

Managing Turnover 286

Employee Engagement and Fairness in Employee Separations 296

Chapter 12 Labour Relations 303Introduction to Labour Relations 304

Workforce Diversity Collective Agreement Puts Aboriginals First 306

Strategic HR UFCW Forms a “Super Local” 307

The Labour Relations Process 308

Strategic HR NHL Lockout Timeline (2012–2013 season) 319

The Impact of Unionization on HRM 324

Part SIX Global Issues in Human Resources Management 327

Chapter 13 Managing Human Resources in a Global Business 327The Globalization of Business and Strategic HR 328

How Intercountry Differences Affect HRM 328

Workforce Diversity Mummy Crew in Monster Trucks 329

Global Relocation 331

Considerations in Global HRM 334

Repatriation 338

Managing Global Workers within Canada 339

Global HRM Successful Integration of Immigrants in Canada 343

Notes 347

Glossary 000

Name and Organization Index 000

Subject Index 000

Credits 000

Contents

A01_DESS4905_04_SE_FM.indd 8 12/31/13 11:46 AM

Page 9: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

ix

Management of Human Resources: The Essentials, Fourth Canadian Edition, brings both human resources and non–human resources students into the cur-rent and comprehensive discussion on the ways in which human resources are among the most important assets in organizations today. Human resources refers to the employees in a company, more specifically, the knowledge, skills, assets, and competencies they bring to work to help the organization achieve its objec-tives. These resources continue to provide a source of competitive advantage for organizations in a hyper-competitive, global environment.

The strategic importance of human resources management (HRM) activities is emphasized throughout the book, using recent examples from the Canadian employment landscape. Knowledge of HRM is important for supervisors and managers in every field and for employees at every level—not just those working in HR departments or aspiring to do so in the future.

The Canadian fourth edition provides extensive coverage of all HRM topics, such as job analysis, HR planning, recruitment, selection, orientation and train-ing, career development, compensation and benefits, performance appraisal, health and safety, and labour relations. Practical applications are highlighted with Tips for the Front Line and Hints to Ensure Legal Compliance icons in the margins. Research Insights are also highlighted, and Ethical Dilemmas are presented for discussion.

Preface

KEY FEATURES OF THE CANADIAN FOURTH  EDITION

Comprehensive Introductory Chapter. The first chapter provides a comprehensive overview of the strategic importance of HR, highlighting the evolution of HR over the years, the advances in measuring HRM’s contribution to the bottom line, and HRM’s critical role in strategy implementation.

Legal Emphasis. Chapter 2 provides a clear understanding of the often overlap-ping areas of legislation that affect the employment relationship. This includes a discussion of key legal cases, potential outcomes and remedies to violations, as well as a discussion about employer rights related to employment.

Significant Discussion of Managing Decline. Chapter 11 focuses on the impact and management of turnover (quits, layoffs, termination, etc.). This includes a focus on legal, psychological, and communication issues.

More Coverage on the Impact of Globalization on HR. Further discussion on the impact of globalization on HR was added throughout with a focus on both Canadian organizations’ interactions on a global scale and the impact of immigrants on the Canadian labour force. Specific sections, such as perfor-mance management (in addition to performance appraisal), the impact of immigration on the labour force, and employability skills, are introduced.

Integrated Chapters. Rather than approaching topics as isolated silos, the book highlights areas of overlap in order to present HRM as an integrated set of topics.

A01_DESS4905_04_SE_FM.indd 9 12/31/13 11:46 AM

Page 10: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

x Preface

Required Professional Capabilities (RPCs). The required professional capabilities to be discussed are listed at the beginning of each chapter and indicated in the margins throughout the text. These RPCs are set out by the Canadian Council of Human Resources Associations for students preparing to write the National Knowledge Exam.

HR by the Numbers. This new element added in multiple places throughout each chapter focuses on the impact of HR practices and policies. The format of these sections is more magazine style and visually enticing for the students.

119Chapter 5 Selection

Initial applicant screening is generally performed by members of the HR department. Application forms and résumés are reviewed, and those can-didates not meeting the essential selection criteria are eliminated first. Then, the remaining applica-tions are examined and those candidates who most closely match the remaining job specifications are identified and given further consideration.

The use of technology is becoming increasingly popular to help HR professionals improve the ini-tial screening process. Almost all large firms or firms with high turnover use technological appli-cations to help screen large numbers of candidates and generate short lists of individuals who will move on to the next step in the selection process.

Principles for Assessment Accommodations When assessing persons with disabilities, those respon-sible for assessment should be guided by four princi-ples to determine accommodations: Principle 1: Provide all applicants with an equal opportu-nity to fully demonstrate their qualifications.

A disability may hinder a person from fully dem-onstrating his or her qualifications using a particular assessment instrument. Therefore, adjustments need to be made to either the administration procedures or the assessment instrument itself, so that the person is in a position to fully demonstrate his or her qualifications. Principle 2: Determine assessment accommodations on a case-by-case basis.

Three key elements must be considered when deter-mining appropriate accommodations: the nature and the extent of the individual’s functional limitation, the type of assessment instrument being used, and the nature and level of the qualification being assessed. Principle 3: Do not alter the nature or level of the qualifica-tion being assessed.

For example, although providing additional time to complete a test could be appropriate when the

qualification “knowledge of the organization’s man-date and its business” is assessed, providing addi-tional time could be inappropriate for a test assessing the qualification “verify information rapidly and accurately.” In the latter case, the obtained result may not be representative of the applicant’s true abil-ity to do the task rapidly. Principle 4: Base assessment accommodations on complete information.

To make appropriate decisions when determin-ing assessment accommodations, there is a need to rely on complete information on the three elements mentioned earlier, justifying the case-by-case approach.

Source: Guide for Assessing Persons with Disabilities, www.psc-cfp.gc.ca/plcy-pltq/guides/assessment-evaluation/apwd-eph/pdf/apwd-eph-eng.pdf (pp. 10–12), Public Service Commission of Canada, Policy Development Directorate, July 2007. Reproduced with the permission of the Minister of Public Works and Government Services Canada, 2012.

WORKFORCE DIVERSITY

© p

eshk

ova

/ fot

olia

More and more HR professionals are improving the initial screening process with the use of technology.

STEP 1: PRELIMINARY APPLICANT SCREENING

Highlighted Themes• Workforce Diversity. The Workforce Diversity boxes describe some of the issues and challenges involved in manag-ing the diverse workforce found in Canadian organizations. The broad range of types of diversity addressed include genera-tional/age, ethnic, gender, racial, and religious.

• Strategic HR. These boxes provide examples that illustrate the ways in which organizations are using effective HRM poli-cies and practices to achieve their strategic goals.

147Chapter 6 Orientation and Training

can lead to reductions in turnover, increased morale, fewer instances of corrective discipline, and fewer employee grievances. It can also reduce the number of work-place injuries, particularly for young workers. 4 The bottom-line implications of successful orientation can be dramatic, as described in the Strategic HR box .

Purpose of Orientation Programs Employee orientation (onboarding) provides new employees with basic back-ground information about the employer and specific information that they need to perform their jobs satisfactorily. At the Law Society of Upper Canada, any

employee orientation (onboarding) A procedure for providing new employees with basic background information about the firm and the job.

Onboarding: The First Step in Motivation and Retention

Professor Jerry Newman is one of the authors of a best-selling book on compensation. He worked undercover as a crew member in seven fast-food restaurants during a 14-month period to research total rewards. One of his findings was that the onboarding (also known as employee orientation) process played a significant role in long-term perceptions of management’s leadership abilities and the quality of non-monetary rewards.

In the best restaurant he worked for, he walked in and asked a counter worker for an application. She handed it to him, suggested that he fill out the application in

the lobby, and in one simple gesture, created a positive first impression by asking, “Would you like a soda?” Although it may seem trivial, it was one of the few times anyone went to any lengths, however minor, to satisfy the needs of a future employee.

The first days and weeks of employment are crucial in the turnover reduction process as reality begins to converge with or diverge from an employee’s needs and aspirations. Making good first impressions goes a long way toward shaping a future view of non-monetary rewards.

In recent years, the fast-food industry has made concerted efforts to reduce turnover. Many chains have cut turnover in half during the past five years. Why? Because when they start to analyze costs, the results of successful onboarding are dramatic.

Assume a typical store does $1 million in sales and profits are 10 percent ($100 000). A typical turnover, according to most brands, costs between $1 500 and $2 000. If turnover is 150 percent and the typical store has 40 employees, then 60 employees turn over dur-ing the course of the year. Taking the midpoint of the replacement cost, 60 employees at $1 750 each equals $105 000. With profits at $100 000, the turnover costs eat up a store’s profitability. This is why fast food has made reducing turnover a high priority. And the cost of turnover in, say, high-tech industries is much higher than $1 500 or $2 000. It quickly becomes apparent that reducing turnover, partially accomplished through a positive and successful onboarding experience, can have very positive payoffs.

Source: Contents © 2009. Reprinted with permission from WorldatWork. Content is licensed for use by purchaser only. No part of this article may be reproduced, excerpted or redistributed in any form without express written permission from WorldatWork. Photo: http://mgt.buffalo.edu/faculty/academic/resources/faculty/jmnewman

STRATEGIC HR

Part 4 Total Rewards202

their employees. Further, these laws are constantly changing and require continual monitoring to ensure compliance. Employment Standards Acts and Human Rights Acts must also be taken into consideration , as discussed in Chapter 2 . Pay equity is a major compensation issue and stems from the per-ceptions of equity discussion above. In addition, workers’ compensation laws also apply.

PAY EQUITY The purpose of pay equity legislation is to redress systemic gender discrimination in compensation for work performed by employees in female-dominated job classes. Pay equity requires that equal wages be paid for jobs of equal value or “worth” to the employer, as determined by gender-neutral (i.e., free of any bias

based on gender) job evaluation techniques. Although such factors as differences in hours worked, experience levels, education levels, and level of unionization contrib-ute to the wage gap, systemic discrimination is also pres-ent. 8 The HR by the Numbers box highlights the impact of using different perspectives to identify how meaning-ful differences in pay can be overall.

Instances of pay inequity continue to occur, even in large, structured organizations. Several internal assess-ments of pay equity at the University of British Columbia established that on average, compensation of full-time female professors was $14 000 less than that of their male counterparts. After adjusting for confounding fac-tors (such as specialization, tenure, etc.), a $3 000 gap in pay still existed. As a result, in 2013, the university gave all 880 tenure-tracked and tenured female faculty members a 2 percent increase in base salary in order to achieve pay equity. The increase was made retroactive to January 1, 2010 at a cost of $2 million to the univer-sity. A similar situation occurred at Western University in 2006, resulting in individual adjustments to female faculty members’ salaries to compensate for the $2 200 post-confounding factor difference in pay between men and women. These cases highlight how the struggle for income parity between genders is far from over, and a challenge in even the most structured organizations. 9

In addition, each jurisdiction has its own workers’ compensation laws . The objective of these laws is to pro-vide a prompt, sure, and reasonable income to victims of work-related accidents and illnesses. The Employment Insurance Act is aimed at protecting Canadian workers from total economic destitution in the event of employ-ment termination that is beyond their control. Employers and employees both contribute to the benefits provided

by this act. This act also provides up to 45 weeks of compensation for workers unemployed through no fault of their own (depending on the unemployment

pay equity Providing equal pay to male-dominated job classes and female-dominated job classes of equal value to the employer.

Estimated per-woman lifetime-difference

financial loss (depending on education) due to pay inequities

71 percent of the way through the calendar year,

marking the day women in Canada start working for free, according to the Equal Pay Coalition

Canada’s rank among Organization for Economic Co-operation and

Development (OECD) countries

Young women graduating from university earn less than male

graduates

Cents women earn for each dollar a man earns in Ontario

Young women graduating from high school earn less than male

high school graduates

Have We Achieved Pay ◀Equity Yet?

$0.7–2 m

16%

17th

71

27%

Sept. 17

HR

by the Num

bers

Association of Workers’ Compensation Boards of Canada www.awcbc.org

A01_DESS4905_04_SE_FM.indd 10 12/31/13 11:46 AM

Page 11: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

xiPreface

• Entrepreneurs and HR. Suggestions, examples, and practi-cal hints are provided to assist those in smaller businesses who have limited time and resources to implement effective HRM policies and procedures.

• Global HRM. In recognition of the increasing impact of globalization, topics highlighted in the Global HRM boxes include cultural issues in retirement plans, employment con-tracts in Europe, and the importance of personal relationships for business success in China.

Part 3 Developing Effective Human Resources174

performance. Contextual performance reflects an individual’s indirect contribu-tion to the organization in terms of improving the organizational, social, and psychological behaviours that contribute to organizational effectiveness, beyond those specified for the job. This includes extra-role behaviours and contextual factors like “demonstrates a positive attitude” and “pitches in to help others when needed,” which have surfaced as contextual performance expectations. 9 These goals may be informally known, but not formally defined, which can become problematic in performance management. For the legitimacy of the performance management system to be maintained, employees also need to be aware of which behaviours are expected and which are discretionary.

Ultimately, the performance management process cannot be separated from performance measurement. Performance expectations need to be developed in a legally defensible (correlated with job activities), clear, and measurable way. In addition, they must be com-municated and supported as such by the organization. Aligned with the sales associate example, a “personal selling” activity can be measured in terms of how many dollars of sales the associate is to generate personally. “Keeping customers away from executives” can be mea-sured with a standard of no more than 10 customer

complaints per year being the sales associate’s target. In general, employees should always know ahead of time how and on what basis they will be appraised. It is important to note that expectations cannot discriminate directly or indirectly against anyone on protected grounds (gender, age, disability, and so on).

In global companies, performance appraisal criteria may need to be modi-fied to be consistent with cultural norms and values. An interesting study found that some criteria are acceptable in many cultures, as discussed in the Global HRM box .

contextual performance An individual’s indirect contribution to the organization in terms of improving the organizational, social, and psychological behaviours that contribute to  organizational effectiveness, beyond those specified for the job.

© a

ndre

wgen

n / f

otol

ia

Hints TO ENSURE LEGAL COMPLIANCE

Performance Appraisal Criteria in China In the West, where individuals have an inalienable right to choose their own lifestyles and moralities, performance criteria cannot be based on personal character, but instead need to focus on more objective criteria, such as job com-petence, abilities, and achievements. In China, however, the attitudes and moral character of a person are regarded as highly relevant to performance. Chinese culture tends to ascribe achievement more to effort (that is, diligence, which reflects one’s morality) than to ability (which, con-ceived as an inborn trait, requires no moral effort). These deeply rooted Confucian values in China thus lead to an emphasis on appraisals that are based upon personal attitudes and moral characteristics that appear to reflect traditional Chinese values, such as hard work, and loyalty and respect toward senior staff. Some specific examples are accepting overtime work; being punctual, careful, helpful, loyal, and respectful toward senior staff; as well as being persistent, adaptable, dedicated, and hard working.

Research found three performance appraisal factors that were very acceptable to Chinese employees: work dedication, work efficiency, and teamwork. Work dedi-cation behaviours, such as punctuality, loyalty, working hard, and dedication toward one’s work, exist in both Eastern and Western cultures. Employee efficiency has long been considered important to good job per-formance, as it is considered to be a means to achieve organizational goals. Chinese employees appear to rec-ognize this managerial objective since they were willing to be evaluated on criteria that assess the efficiency of their work. Teamwork is a behavioural manifestation of the group orientation in Eastern cultures.

Source: Robert J. Taormina and Jennifer H. Gao (2009). Identifying Acceptable Performance Appraisal Criteria: An International Perspective. Asia Pacific Journal of Human Resources 47 (1), pp. 102–125. Copyright © 2009, Australian Human Resources Institute. Used with permission from John Wiley and Sons.

GLOBAL HRM

Part 2 Meeting Human Resources Requirements82

and leaving the organization. These proportions (probabilities) are used to forecast human resources supply.

Succession Planning and Family Businesses In the second quarter of 2010, small businesses cre-ated 35 549 jobs, while large firms created only 728 jobs. During that period, small businesses in the construction sector alone accounted for 23 014 new jobs, while those in the healthcare and social assis-tance sectors introduced 9 755 new jobs.

Multigenerational family-controlled businesses often struggle with succession planning. Only one-third of family-owned businesses survive the transition to the second generation. And of these, only one-third survive the transition to the third generation. 5

There are many reasons for these failures.

1. Determining who will inherit the business and how ownership will be determined among children can

be a source of immense stress for family business owners. Therefore, many choose to ignore the issue of succession planning altogether.

2. Second, a family business is a great source of pride for the business owner and is often their single largest asset. The concept of retirement or walking away can be incomprehensible to those who built the business.

3. There may not be a qualified or interested successor within the family.

While these are difficult issues to deal with, family businesses must begin to take an informed and strate-gic approach to these issues.

ENTREPRENEURS and HR

In the example provided, there were 35 employees in the foreperson occupa-tion in 2013. Out of these, 82 percent (28 employees) are expected to remain in that position next year (based on past levels of activity). The organization can anticipate that 8 percent of the foreperson population (which would be 3 out of the 35 employees in 2013) would be promotable to the role of plant manager. In addition, the past trends show that 10 percent of employees at this level are lost to turnover (representing 4 employees who are expected to leave the orga-nization before the start of next year). In addition, out of the 110 team leaders (the level below), 11 percent (12 employees) would be eligible for promotion to a foreperson position. Therefore, next year’s projected supply of forepersons would be the 28 from this year who are projected to stay in that role plus the 12 team leaders who are projected to be eligible for promotion over the year, for a total supply of 40 forepersons.

To complement such quantitative data, the skills and capabilities of current employees must be assessed and skills inventories prepared. From this informa-tion, replacement charts or summaries and succession plans can be developed.

Forecasting the Supply of External Candidates Some jobs cannot be filled with internal candidates because no current employ-ees are qualified (such as those holding entry-level jobs) or they are jobs that experience significant growth. In these situations, the firm looks for external candidates. Employer growth is primarily responsible for the number of entry-level openings. A key factor in determining the number of positions that must be filled externally is the effectiveness of the organization’s training, development,

Additional FeaturesLearning Outcomes. Specific learning goals are defined on each chapter-

opening page.Key Terms. Key terms appear in boldface within the text, are defined in the

margins, and are listed at the end of each chapter.Current Examples. Numerous real-world examples of HRM policies, p rocedures,

and practices at a wide variety of organizations, ranging from small service providers to huge global corporations, can be found throughout the text.

Full-Colour Figures, Tables, and Photographs. Throughout each chapter, key con-cepts and applications are illustrated with strong, full-colour v isual  materials.

Web Links. Helpful internet sites are provided throughout the text and are featured in the margins.

End-of-Chapter Summaries. At the end of each chapter, the summary reviews key points related to each of the learning outcomes.

End-of-Chapter Review and Discussion Questions. Each chapter contains a set of review and discussion questions.

Critical Thinking Questions. Each chapter contains end-of-chapter questions designed to provoke critical thinking and stimulate discussion.

Experiential Exercises. Each chapter includes a number of individual and group-based experiential exercises that provide learners with the opportunity to apply the text material and develop some hands-on skills.

A01_DESS4905_04_SE_FM.indd 11 12/31/13 11:46 AM

Page 12: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

xii Preface

Student SupplementsCourseSmart for Students. CourseSmart goes beyond traditional expectations—providing instant, online access to the textbooks and course materials you need at an average savings of 60 percent. With instant access from any computer and the ability to search your text, you’ll find the content you need quickly, no matter where you are. And with online tools like highlighting and note-taking, you can save time and study efficiently. See all the benefits at www.coursesmart.com/students.

MyManagementLab (www.mymanagementlab.com) delivers proven results in helping individual students succeed. It provides engaging experiences that personalize, stimulate, and measure learning for each student. Students and instructors can make use of the following online resources:

• Study Plan: MyManagementLab offers chapter pre-tests that generate personalized Study Plans showing students exactly which topics require additional practice. The Study Plan links to multiple learning aids, such as student PowerPoint slides, the eText, and glossary flashcards. After students work through the learning aids, they can take a post-test to measure their improvement and demonstrate their mastery of the topics.

• Audio Glossary Flashcards: This study tool provides a targeted review of the Key Terms in each chapter. The Audio Glossary Flashcards allow learners to select and listen to the specific terms and chapters that they would like to study. The cards can also be sorted by Key Term or by definition to give students greater flexibility when studying.

• Pearson eText: MyManagementLab also includes an eText version of Management of Human Resources: The Essentials, including a complete Glossary and Index. This dynamic, online version of the text is integrated throughout MyManagementLab to create an enriched, interactive learning experience for students. Users can create notes, highlight text in different colours, create bookmarks, zoom, and click hyperlinked words and phrases to view definitions and go directly to weblinks. The Pearson eText allows for quick navigation to key parts of the eText using a table of contents and provides full-text search.

Instructors and students can also access Chapter Quizzes, Case Assessments, Annotated Text Figures, and many additional study tools designed to engage learners and improve student understanding.

A01_DESS4905_04_SE_FM.indd 12 12/31/13 11:46 AM

Page 13: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

xiiiPreface

Instructor SupplementsThe following instructor supplements are available for download from a password- protected section of Pearson Canada’s online catalogue (vig. pearsoned.ca). Navigate to your book’s catalogue page to view a list of the supplements that are available. See your local sales representative for details and access.

• Instructor’s Manual with CBC Video Guide. This comprehensive guide contains a detailed lecture outline of each chapter, descriptions of the discussion boxes, answers to review and critical thinking questions, answers to the case ques-tions, hints regarding the experiential exercises, and helpful video case notes.

• Running Case. The running case has been moved out of the print edition of each chapter and added to the instructor’s manual. This running case illustrates the types of HRM challenges confronted by small-business owners and front-line supervisors. It is accompanied by critical thinking questions, which provide an opportunity to discuss and apply the text material. This provides an ongoing case to integrate ideas in chapters effectively.

• Case Incidents. Case incidents have also been moved from the print edition and now can be found in the instructor’s manual for each chapter. These cases present current HRM issues in a real-life setting and are followed by questions designed to encourage discussion and promote the use of problem-solving skills.

• Test Item File. This comprehensive test bank contains more than 1 500  multiple-choice, true-or-false, and short-essay questions in Microsoft Word® format.

• PowerPoint® Lecture Slides. This practical set of PowerPoint lecture slides outlines key concepts discussed in the text, and includes selected tables and figures from the text.

• Clicker PowerPoint® Slides. This set of Clicker-ready slides is suitable for use with any Personal Response System.

Pearson Canada/CBC Video Library. Pearson Canada and the CBC have worked together to provide six video segments from the CBC series The National. Designed specifically to complement the text, this case collection is an excellent tool for bringing students in contact with the world outside the classroom. These programs have extremely high production quality and have been chosen to relate directly to chapter content.

MyTest. MyTest from Pearson Canada is a powerful assessment generation program that helps instructors easily create and print quizzes, tests, and exams, as well as homework or practice handouts. Questions and tests can all be authored online, allowing instructors ultimate flexibility and the ability to efficiently manage assessments at any time, from anywhere. MyTest for Management of Human Resources: The Essentials, Fourth Canadian Edition, includes more than 1 500 multiple-choice, true-or-false, and short-essay questions.

A01_DESS4905_04_SE_FM.indd 13 12/31/13 11:46 AM

Page 14: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

xiv Preface

CourseSmart. CourseSmart goes beyond traditional expectations—providing instant, online access to the textbooks and course materials you need at a lower cost for students. And even as students save money, you can save time and hassle with a digital eTextbook that allows you to search for the most relevant content at the very moment you need it. Whether it’s evaluating textbooks or creating lecture notes to help students with difficult concepts, CourseSmart can make life a little easier. See how when you visit www.coursesmart.com/instructors.

Technology Specialists. Pearson’s technology specialists work with faculty and campus course designers to ensure that Pearson technology products, assessment tools, and online course materials are tailored to meet your specific needs. This highly qualified team is dedicated to helping schools take full advantage of a wide range of educational resources by assisting in the integration of a variety of instructional materials and media formats. Your local Pearson Canada sales representative can provide you with more details on this service program.

Other Resources• HRManagement Simulation. A great online simulation is available for

students. Access code cards can be packaged with the text for an additional charge. Please see www.interpretive.com/rd6/index.php?pg=hrm&sid=1 and contact your Pearson representative for more details.

• Pearson Custom Publishing (www.pearsonlearningsolutions.com/higher-education/). Pearson Custom Publishing can provide you and your stu-dents with texts, cases, and articles to enhance your course. Choose material from Darden, Ivey, Harvard Business School Publishing, NACRA, and Thunderbird to create your own custom casebook. Contact your Pearson sales representative for more details.

A01_DESS4905_04_SE_FM.indd 14 12/31/13 11:46 AM

Page 15: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

xv

ACKNOWLEDGMENTSThe manuscript was reviewed at various stages of its development by a number of peers across Canada, and we want to thank those who shared their insights and constructive criticism.

Anna Bortolon, Conestoga College

Jason Foster, Athabasca University

Richard McFadden, Georgian College

Kate Rowbotham, Queen’s University

Spring Tompkins, St. Lawrence College

Amy Lynn Tucker, Thompson Rivers University

At Pearson Canada, we are very grateful to Deana Sigut, Acquisitions Editor; Leigh-Anne Graham, Senior Marketing Manager; Charlotte Morrison-Reed, Developmental Editor; Jessica Hellen, Project Manager; and all the other people behind the scenes who have helped make this edition possible.

A special note of thanks is extended to research assistants Mark Berger and Kayla Dynan.

Gary DesslerFlorida International University

Nita N. ChhinzerUniversity of Guelph

Nina D. ColeRyerson University

Preface

A01_DESS4905_04_SE_FM.indd 15 12/31/13 11:46 AM

Page 16: Management of Fourth Human Resources: · PDF fileChapter 4 Human Resources Planning and Recruitment 75 5r e Cpht a Selection 114. ... Planning and Implementing HR Programs to Balance

xvi

Dr. Nita N. ChhinzerDr. Nita N. Chhinzer is an Assistant Professor of Human Resources at the Department of Business, University of Guelph. Her research is concentrated on Strategic Human Resources Management, with a strong focus on downsizing practices, procedures, and ethics. Her program of research includes s ecuring a stronger understanding of downsizing activity in the Canadian context, with an aim to affect public policy and legislation regarding layoffs. She has gained international recognition with conference participation including Athens, Greece; Paris, France; Dubai, UAE; and many North American speaking engagements. From May 2012–2017, Dr. Chhinzer is the recipient of the presti-gious Fellowship in Leadership, HRM and Work.

Dr. Nina D. ColeDr. Nina Cole has over 30 years of experience in human resources management as a practitioner, consultant, researcher, and professor. She worked in busi-ness for 12 years as an HR management consultant and an HR manager with federal industries. Since 1990, she has worked as an academic, teaching and c onducting research in human resources management and organizational behaviour. Dr. Cole is currently an Associate Professor at the Ted Rogers School of Management at Ryerson University in Toronto. She has been an active member of the Administrative Sciences Association of Canada, the Human Resources Professionals Association, and numerous other academic, industry, and community groups for many years.

About the Canadian Authors

A01_DESS4905_04_SE_FM.indd 16 12/31/13 11:46 AM


Recommended