Introduction to HRM Functions

Introduction to
HRM
V.LALE TÜZÜNER, PROFESSOR
I.U. FACULTY OF BUSINESS ADMINISTRATION,
DEPARTMENT OF HUMAN RESOURCES MANAGEMENT

Today’s Menu
What is HRM?
What challenges make HRM important for business success?
What does it mean for HRM to be “strategic”?
HRM in a changing environment
Functions of HRM
TÜZÜNER V.L. PROFESSOR, 2

Managing people
The human resources of an organization and how they are managed represent
the competitive advantage of today’s and tomorrow’s organizations.
Extensive training and techniques (empowerment) resulted in performance
increases, rather than TQM practices or advanced technology…
Cost vs. human capital approches

Employee
Satisfaction
Customer
Satisfaction
Shareholder
satisfaction

Whose Duty Is HRM?
EVERY MANAGER IS AT THE SAME TIME IS A HUMAN RESOURCE
MANAGER…

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
Designing management systems to ensure that human talent is used
effectively and efficiently to accomplish organizational goals.
Is the process of acquiring, training, appraising, compensating
employees and of attending to their labor relations,health and safety
and fairness concerns.

Management Process
Planning Organizing Leading Controlling
Staffing Coordinating

HRM Aims To:
Find the right people and keep them
Help employees learn and develop
Create a positive work environment
Comply with all regulatory bodies

Why is HR Management Important
To All Managers ?
They do not want to :
◦ Hire the wrong person for the job
◦ Experience high turnover
◦ Find people not doing their best
◦ Waste time with useless interviews
◦ Have some employees think their salaries are unfair and
inequitable relative to others in the organization
◦ Allow a lack of training to undermine your department’s
effectiveness
◦ Commit any unfair labor practices

The HRM Process
Functions of the HRM Process
◦ Ensuring that competent employees are identified and selected.
◦ Providing employees with up-to-date knowledge and skills to do their
jobs.
◦ Ensuring that the organization retains competent and high-performing
employees who are capable of high performance.

The Human Resource Management
Process

Why Managers Need To Know
HRM?
People (human resources) are the essential resource of all organizations
These human resources create organizational innovations and
accomplishments
Organizational success depends upon careful attention to human
resources

Does HRM Matter?
Companies with happy workers have greater
annual return to shareholders than companies
that do not
Employee morale is related to customer
satisfaction
Companies with progressive HRM practices
significantly outperform companies that have less
progressive practices on financial indicators (ex.
sales and dividend growth)

HRM: Whose Responsibility ?
All managers are, in a sense HR managers.
Line vs. Staff Authority : Authority is the right to make decisions, to direct the work
of others and to give orders. Line managers are authorized to direct the work of
subordinates and in charge of accomplishing the organization’s basic goals. Staff
managers are authorized to assist and advise line managers in accomplishing these
basic goals.

HRM: Whose Responsibility ? (2)
Line Function : The HR manager directs the activities of the people in his/her
own department and in related service areas.
Staff Function: Assisting and advising line managers in HR related areas.
Functional Authority : is the authority given to specialists to make the final
decisions in specifies circumstances.

HR Cooperation with
Operating & Line Managers
There is a cooperation between line and operating managers,
supervisiors, executives, and HR staff.
If not HR efforts will not be succeed.
HR professionals and staff members design processes and systems that
the operating managers must help implement.
How HR Is Seen In organizations :
◦ Negative Views of HR: too administrative, too bureaucratic, too detail-
oriented, too costly, and not effective change agents.
◦ Positive, Contributing Views of HR: viewing the people and their talents as
an opportunity for creating greater organizational competitive advantage.
business contributor,

Typical Division of HR
Responsibilities
HR Unit
◦ Develops legal, effective
interviewing techniques
◦ Trains managers in conducting
selection interviews
◦ Conducts interviews and testing
◦ Sends top three applicants to
managers for final review
◦ Checks references
◦ Does final interviewing and
hiring for certain job
classifications
Managers
◦ Advise HR of job openings
◦ Decide whether to do own final
interviewing
◦ Receive interview training from
HR unit
◦ Do final interviewing and hiring
where appropriate
◦ Review reference information
◦ Provide feedback to HR unit on
hiring/rejection decisions
1–17
TÜZÜNER V.L. PROFESSOR,

HRM – Small Organization
A separate HR department:
◦ Emerges when HR activities become a burden
◦ Emerges as a small department or an individual reporting to a middle
manager
Duties typically include:
◦ Maintaining employee records
◦ Recruiting

HRM – Large Organization
HR department usually grows in impact and complexity
Specialists are added:
◦ Employment
◦ Compensation
◦ Training etc.
Head of HR department may become a “Vice President”

Traditional HR Function Model
Head of HR
Staffing
Training
Compensation
Employee
Relations
HR
Generalists

New HR Model
Sr. HR
Team
Administrative
Service Center
Center of
Excellence
Business
Partners
Transactions
Focus on
efficiency
Specialists
Expertise and
Design Consulting
Generalists with
responsibility to
line managers as
consultants and
planners

Environmental Challenges
Environmental challenges are the forces external to the firm. They
influence organizational performance but are largely beyond
management’s control.
Managers need to monitor the external environment constantly for
opportunities and threats.
Rapid Change: Change is a nearly constant variable in our Daily life.
People in order to survive they need to adapt to change quickly and
effectively. HR is at the heart of an effective response system.
◦ As the employees are spending more time at their offices, companies are
introducing Office as the home of employees . Companies are providing
«home at work» benefits.
◦ Rapid change and work overload can put employees under a great deal of
stress.

Work-Life Balance
◦ Employees have personal lives that they don’t leave behind when
they come to work.
◦ Organizations have become more attuned to their employees by
offering family-friendly benefits:
◦ On-site child care
◦ Summer day camps
◦ Flextime
◦ Job sharing
◦ Leave for personal matters
◦ Flexible job hours

Rise of the Internet: represents the single most important environmental
trend affecting organizations and their human resource practices. The
Internet is having pervasive impact on how organizations manage their
human resources :
◦ Necessitating greater written communication skills
◦ Dealing with informatiom overflow
◦ Breaking down labor market barriers
◦ Using online learning
◦ Enabing HR to focus on management

Environmental Challanges:
Legislation
Labor Union
◦ An organization that represents workers and seeks to protect their interests
through collective bargaining.
Collective Bargaining Agreement
◦ A contractual agreement between a firm and a union elected to represent a
bargaining unit of employees of the firm in bargaining for:
◦ Wage, hours, and working conditions.

Environmental Factors Affecting
HRM (cont’d)
Laws and Regulations
◦ Limit managerial discretion in hiring, promoting, and discharging employees.
◦ Turkish Labor Law numbered 4857.
◦ Collective Bargaining and Strike –Lockout numbered 2822.

Environmental Challenges:
Workforce Diversity
Workforce Diversity:
◦ Increasing number of women in the workforce
◦ More women, single mothers
◦ Racial composition
Shift toward knowledge workers
Educational attainment of workers
Employment of older workers
More part-time, contract and contingent workers

Environmental Challenges:
Globalization
Domestic- International Market- Competition -Manufacturing
Worldwide Company Culture: trying to build up a global company
identity to smooth over cultural differences between domestic
employees and those in international operations.
Worldwide Recruiting:
Industrial metamorphosis
Global Alliances
Virtual Workforce

Organizational Challenges
Are concerns or problems internal to a firm. Effective managers spot
organizational issues and deal with them before they became a major
problem.
Proactivity
Competitive Position: Cost, Quality, Distintictive Capabilities
Decentralization
Downsizing

Organizational Challenges
Downsizing
◦ The planned elimination of jobs in an organization
◦ Provide open and honest communication.
◦ Reassure survivors.
Managing Work Force Diversity
◦ Recruitment for diversity
◦ Selection without discrimination
◦ Orientation and training that is effective

Objectives of HRM: Organizational
Contribute to organizational effectiveness
Means of helping the organization to achieve its primary objectives
Provide level of service appropriate to the organization

Challenges: Technological Trends
Computerization
◦ Impacts virtually all aspects of work and life
◦ Process and provide large amounts of data at great speed to managers
◦ Flexibility e.g. telecommuting
Automation
◦ Potential benefits include speed, better customer service, predictability and
production quality
◦ Use robots for hazardous or boring jobs

Individual Challenges:
Employee
Human Resorces issues at the individual level address the decisions most pertinent to specific
employees.
These individual challenges almost always reflect what is happening in the larger organization.
There is a dual relation between organizational and individual challenges.
Matching people- organizations
Ethics and social responsibility
Productivity
Empowerment
Brain Drain
Job insecurity
Assist employees in achieving their personal goals
◦ Employee performance may decline or employees may leave the organization if personal objectives are
not considered

Good HRM is Necessary to Meet Competitive
Challenges
Globalization
◦ New Markets
◦ Expatriates
Meeting Stakeholders’ Needs
◦ Unions, Employees, Community, Shareholders, Customers
◦ Balanced Scorecard
◦ Quality
High-Performance Work Systems
◦ Teams, virtual teams, integrate technology and social systems
New Economy
◦ Development of e-business
◦ Value of knowledge
◦ Labor force skills don’t match job requirements
◦ Changes in employment relationship
◦ Demanding work but more flexibility

An HR Function That Creates
Value….
Knows the business basics
Communicates in management language
Proposes ideas and develop action plans
Helps management implement ideas
Follows-through
Gets out of the HR department - talk to customers

Groups of HRM Activities
Groups of
Activities
Planning
Human
Resources
Attracting
Human
Resources
Placing,
Developing &
Evaluating
Maintaining
High
Performance
Motivating
Employees

HRM Practices
Analysis and Design of Work (How do we provide
value?)
HR Planning (How to use the labor force?)
Recruitment (Find )
Selection (Choose )
Training & Development ( Teach )
Compensating Human Resources ( Pay)
Performance Management (Measure)
Employee Relations (Get along with them)

Human Resource Planning
Assessing Future
Human Resource
Needs
Assessing Current
Human Resources
Developing a
Program to Meet
Needs

Meeting Future Human
Resource Needs
Supply of Employees Demand for Employees
Factors Affecting Staffing
Strategic Goals
Forecast demand for products and services
Availability of knowledge, skills, and abilities

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.

Typical Division of HR Responsibilities
in HR Planning

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

Recruitment
Sources
Internal
Searches
Employee
Referrals
Employee
Leasing
Temp
Services
Employment
Agencies Advertisements
School
Placement

Strategic Recruiting
Stages

Tüzüner V.L. Professor, 7–46
Figure 7–3

Organizational Recruiting
Activities
Recruiting
Image
Recruiting
Presence
Training of
Recruiters
Effective
Recruiting

Strategic Recruiting Decisions
Recruiting
Source Choices:
Internal vs.
External
Organizational-
Based vs.
Outsourcing
Regular vs.
Flexible Staffing
Recruiting and
EEO/Diversity
Considerations
Strategic
Recruiting

Advantages and Disadvantages of
Internal and External Recruiting Sources

Internal Recruiting Methods

Internet Recruiting Methods
Job Boards
Professional/
Career Web Sites
Employer Web Sites
Internet
Recruiting
Methods

Internet Recruiting
Advantages
◦ Recruiting cost savings
◦ Recruiting time savings
◦ Expanded pool of applicants
◦ Morale building for current
employees
Disadvantages
◦ More unqualified applicants
◦ Additional work for HR staff
members
◦ Many applicants are not
seriously seeking employment
◦ Access limited or unavailable to
some applicants

External Recruiting
Employment Agencies
and Search Firms
College and
University
Recruiting
High Schools and
Technical Schools
Labor
Unions
External
Recruiting
Sources
Media Sources
and Job Fairs
Competitive
Sources

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

Selection and Placement
Selection
◦ The process of choosing individuals who have needed
qualities to fill jobs in an organization.
◦ Organizations need qualified employees to succeed
◦ “Good training will not make up for bad selection.”
◦ “Hire hard, manage easy.”

HR’s Role in Selection and
Placement
Reasons for centralizing selection
◦ Easier to have applicants in one place.
◦ Contact with outside applicants is easier.
◦ Managers can concentrate on operating responsibilities rather than the
selection process.
◦ Selection costs are lower with no duplicated efforts.

Typical Division of HR Responsibilities : Selection

HR Employment Functions
Receiving applications
Interviewing applicants
Administering tests to
applicants
Conducting background
investigations
Arranging physical
examinations
Placing and assigning new
employees
Coordinating follow-up of new
employees
Exit interviewing departing
employees
Maintaining employee
records and reports.

Placement
Placement
◦ Fitting a person to the right job.
Person-job fit
◦ Matching the knowledge, skills and abilities (KSAs) of people to the
characteristics of jobs (tasks, duties and responsibilities).
◦ Benefits of person-job fit
◦ Higher employee performance
◦ Lower turnover and absenteeism
KSAs = TDRs = Job Success?

Person-Organization Fit

Criteria, Predictors, and Job
Performance
Selection Criterion
◦ A characteristic that a person must have to do a job successfully
Validity
◦ The correlation between a predictor and job performance
Reliability
◦ The extent to which a predictor repeatedly produces the same results, over
time.

Job Performance, Selection Criteria, and Predictors

Combining Predictors
Multiple Hurdles
◦ Establishing a minimum cutoff (level of performance) for each predictor, and
requiring that each applicant must score at least the minimum on each
predictor to be considered for hiring.
Compensatory approach
◦ Scores on all predictor are added together, allowing a higher score on one
predictor to offset a lower score on another predictor.

The Selection Process
Legal Concerns in the Selection Process
◦ Equal employment opportunity (EEO) laws and regulations
◦ Job-related selection practices
◦ Protected-class status
◦ National Labor Relations Act and the NLRB
◦ Union activities affecting selection

Selection Process
Flow Chart
Figure 8–4

Limiting Who Becomes an Applicant
Figure 8–5

Applicant Job Interest
Realistic Job Preview
◦ The process through which a job applicant receives an accurate picture of
the organizational realities of the job.
◦ Prevents the development of unrealistic job expectations that cause
disenchantment, dissatisfaction, and turnover in new employees.

Pre-Employment Screening
Pre-screening interview
◦ Verify minimum qualifications
Electronic pre-screening
◦ Scanning resumes and applications
Electronic submission of applications

8
Applications
Purposes of Applications
◦ Record of applicant’s interest in the job
◦ Provides a profile of the applicant
◦ Basic record for applicants who are hired
◦ Research effectiveness of the selection process

Selection and Testing: Ability
Tests
Cognitive Ability Tests
◦ Measure an individual’s thinking, memory, reasoning, and verbal and
mathematical abilities.
Physical Ability Tests
◦ Measure strength, endurance, and muscular movement
Psychomotor Tests
◦ Measure dexterity, hand-eye coordination, arm-hand steadiness, and other
factors.

Selection and Testing: Ability
Tests
Work Sample Tests
◦ Require an applicant to perform a simulated task.
Assessment Centers
◦ A series of evaluation exercises and tests used for the selection and
development of managerial personnel.
◦ Multiple raters assess participants in multiple exercises and problems that
are job content-related to the jobs for which the individuals are being
screened.

Other Tests
Personality Tests
◦ Minnesota Multiphasic Personality Inventory (MMPI)
◦ Myers-Briggs
Honest and Integrity Testing
◦ Overt integrity tests
◦ Personality-oriented integrity tests
◦ Polygraphs (“lie detector”)
◦ Polygraph testing in pre-employment is prohibited (in most instances) by the Employee
Polygraph Protection Act.

Big Five Personality
Characteristics

Controversial and
Questionable Tests
Graphology (Handwriting Analysis)
◦ Analysis of the characteristics of an individual’s writing that purports to
reveal personality traits and suitability for employment.
Psychics
◦ Persons who are supposedly
able to determine a person’s
intellectual and emotional
suitability for employment

Testing Considerations and
Concerns
Proper Use of Tests in Selection
◦ Use for additional information, not disqualification
◦ Negative reactions by test takers to certain tests
◦ Costs of testing versus “bad hires”
Legal Concerns and Selection Testing
◦ Job-relatedness (validity) of selection processes
◦ Compliance with EEO and ADA laws and regulations

Selection Interviewing
EEO Concerns with Interviewing
◦ Identify objective job-related criteria to be sought in the interview
◦ Specify the decision-making criteria used
◦ Provide multiple levels of review for decisions
◦ Use structured interviews, asking the same questions of all those
interviewed

Types of Selection Interviews

8–79
Structured Interviews
Structured Interview
◦ Uses a set of standardized questions asked of all job applicants.
◦ Useful for initial screening and comparisons
◦ Benefits
◦ Obtains consistent information needed for selection decision
◦ Is more reliable and valid than other interview formats
◦ Meets EEO guidelines for the selection process

8–80
Structured Interviews (cont’d)
Behavioral interview
◦ Applicants are asked to give specific examples of how they have performed a
certain task or handled a problem in the past.
◦ Helps discover applicant’s suitability for current jobs based on past
behaviors.
◦ Assumes that applicants have had experience related to the problem.
Situational interview
◦ Applicants are asked how they would respond to a specific job situation
related to the content of the job they are seeking.

Less Structured Interviews
Nondirective Interview
◦ Applicants are queried using questions that are developed from the answers
to previous questions.
◦ Possibility of not obtaining needed information.
◦ Information obtained may not be not job-related or comparable to that
obtained from other applicants.
Stress Interviews
◦ An interview designed to create anxiety and put pressure on an applicant to
see how the person responds.

Who Does Interviews
Video
Interviewing
Individuals
Panel
Interviews
Team
Interviews
Interviews

Effective Interviewing
Conducting an Effective Interview
◦ Planning the interview
◦ Controlling the interview
◦ Using proper questioning techniques
Question types to avoid in interviews
◦ Yes/No questions
◦ Obvious questions
◦ Questions that rarely produce a true answer
◦ Leading questions
◦ Illegal questions
◦ Questions that are not job related

Common
Selection
Interview
Questions

Problems in the Interview
Problems in
the Interview
Halo
Effect
Snap
Judgments
Negative
Emphasis
Biases and
Stereotyping
Cultural
Noise

88
HR Cooperation with Line Managers:
Interviewing Example
HR Unit
◦ Develops legal, effective
interviewing techniques
◦ Trains managers in conducting
selection interviews
◦ Conducts interviews and testing
◦ Sends top three applicants to
managers for final review
◦ Checks references
◦ Does final interviewing and hiring
for certain job classifications
Managers
◦ Advise HR of job openings
◦ Decide whether to do own final
interviewing
◦ Receive interview training from
HR unit
◦ Do final interviewing and hiring
where appropriate
◦ Review reference information
◦ Provide feedback to HR unit on
hiring/rejection decisions

Background Investigation
Falsification of Background Information
◦ One-third of applications and resumes contain factual misstatements or
significant omissions.
Reference Checking Methods
◦ Telephoning the reference
◦ Preprinted reference forms
◦ Outsourcing reference checking
Legal Constraints
◦ Obtaining signed releases from applicants avoids problems with privacy
issues

Reference Checks
Potential employer seeks to verify information
Important to have well-constructed questions
Can you Outsource This?
How far can you dig?

Medical Examinations and
Inquires
Drug Testing
◦ Tests monitored to protect integrity of results.
Genetic Testing
◦ Tests for genetic links to workplace hazards
◦ Tests for genetic problems related to the workplace
◦ Tests to exclude workers for increased risks

Making the Job Offer
Offer Guidelines
◦ Formalize the offer with a letter to the applicant clearly stating the terms and
conditions of employment.
◦ Avoid vague, general statements and promises.
◦ Require return of a signed acceptance of the offer.

Reliability
Degree to which selection tool measures the same thing consistently
Can be a test or an interview
Same questions need to be asked.

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.

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

Your Hired
Now What?
Most Important Stage

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

The Nature of Training
Training
◦ A process whereby people acquire capabilities to aid in the achievement of
organizational goals.
◦ Employers spend $60 billion on training annually.
The Context of Training
◦ Organization Competitiveness and Training
◦ Training make organizations more competitive
◦ Training helps retain valuable employees
◦ Training is no longer the first casualty of a business downturn.

Organization Competitiveness and Training
◦ Training makes organizations more competitive
◦ Training helps retain valuable employees
◦ Training is no longer the first casualty of a business downturn.
Training as a Revenue Source
◦ Marketing training with or alongside products can contribute significantly to
a firm’s revenues.

(cont’d)
Integration of Job Performance, Training, and Learning
◦ Training is moving “closer to the job” to achieve “real time” learning.
◦ Training is using more real-world problems to increase employee learning.

Employee Training
What deficiencies, if any,
does job holder have in
terms of skills, knowledge,
abilities, and behaviours?
What behaviours are
necessary?
Is there a
need for
training?
What are
the strategic
goals of the
organization?
What tasks must
be completed
to achieve
goals?

Performance Consulting

Typical Division of HR Responsibilities: Training

Linking Business and Training Strategies

Basic Business Strategy
Concepts
Low-cost leader
◦ Attempting to increase market share by focusing on the low cost of the firm’s
products or services, compared to competitors.
Differentiation
◦ Trying to make the firm’s products or services competitively different from
others in the industry in terms of quality, service, technology, or perceived
distinctiveness.

Training Process

Sources of Training
Needs Assessment

Establishing Training
Objectives
Gap Analysis
◦ The distance between where an organization is with its employee
capabilities and where it needs to be.
Types of Training Objectives
◦ Knowledge: Impart cognitive information and details to trainees.
◦ Skill: Develop behavior changes in how job and tasks are performed.
◦ Attitude: Create interest and awareness of the training importance.

Elements of Training Design

Learning: The Focus of
Training
Learner Readiness
◦ Ability to learn
◦ Learners must possess basic skills (3Rs)
◦ Motivation to learn
◦ Learners must desire and value training
◦ Self-efficacy
◦ Learners must believe that
they can successfully learn
the training content

Learning Styles
Adult Learning Principles
Have need to know why they are learning something.
Have need to be self-directed.
Bring more work-related experiences into the process.
Employ a problem-solving approach in the experience.
Are motivated by both extrinsic and intrinsic factors.

Learning Practices
Active Practice
◦ The performance of job-related tasks and duties by trainees during training
Spaced Practice
◦ Several practice sessions spaced over a period of hours or days
Massed practice
◦ Performance of all the practice at once.

Learning: Behaviors
Behavior Modeling
◦ Copying someone else’s behavior by observing how another person deals
with a problem.
Reinforcement
◦ Law of effect states that people tend to repeat behaviors that are rewarded
and avoid behaviors that are punished.
Immediate Confirmation
◦ Reinforcement and feedback are most effective when given as soon as
possible after training.

Employee Training Methods
Traditional
Training Methods
◦ On-the-job
◦ Job rotation
◦ Mentoring and coaching
◦ Experiential exercises
◦ Workbooks/manuals
◦ Classroom lectures
Technology-Based
Training Methods
◦ CD-
ROM/DVD/Videotapes/
Audiotapes
◦ Videoconferencing/
teleconferencing/
Satellite TV
◦ E-learning or other
interactive modules.

Learning: Types of Training
Developmental and
Innovative Training
Required and
Regular Training
Job/Technical
Training
Interpersonal and
Problem-Solving
Training
Types of
Training

Course Types and Training Expenditures
.

Orientation
Transitioning a new employee into the organization.
◦ Work-unit orientation
◦ Familiarizes new employee with work-unit goals
◦ Clarifies how his or her job contributes to unit goals
◦ Introduces he or she to his or her coworkers
◦ Organization orientation
◦ Informs new employee about the organization’s objectives, history, philosophy, procedures, and
rules.
◦ Includes a tour of the entire facility

Orientation
Process to introduce new employees to organization
Familiarize new employee to job and work unit
Help employee to understand values, beliefs, and acceptable
behaviours
Familiarization to Organization and its Values
Improved Success On the Job
Minimizes Turnover

Orientation: Training for New
Employees
Achievements of
Effective Orientation
Co-Worker
Acceptance
Favorable
Impression
Provides
Information
Socialization
and
Integration
Performance
and
Productivity

Effective New Employee
Orientation
Prepare New Employee
Consider “buddy” mentors
Use an orientation checklist
Cover needed information
Present information effectively
Avoid information overload
Evaluation and follow-up

Training Delivery:
Considerations
Nature of training
Subject matter
Number of trainees
Individual vs. team
Self-paced vs. guided
Training resources
Costs
Geographic locations
Time allotted
Completion timeline

Tüzüner V.L. Professor,
Internal Training
Informal Training
◦ Training that occurs through interactions and feedback among employees.
On-the-Job Training (OJT)
◦ Problems with OJT
◦ Poorly-qualified or indifferent trainers
◦ Disruption of regular work
◦ Bad or incorrect habits are passed on

Stages of On-the-Job Training

External Training
Reasons for External Training
◦ May be less expensive to outsource training
◦ Insufficient time to develop training
◦ Lack of expertise
◦ Advantages of interacting with outsiders
E-Learning: Training Online

External Training: E-Learning
E-Learning: Training Online
◦ The using the Internet or an organizational intranet to conduct training
online.
Criteria for adopting e-learning:
◦ Sufficient top management support and funding
◦ Accepting the idea of decentralized and individualized training
◦ Current training methods not meeting needs
◦ Computer literacy and access to computers
◦ Time and travel cost concerns for trainees
◦ The number and self-motivation of trainees

Developing E-Learning
Figure 9–9

Advantages and Disadvantages of E-Learning

Training Methods
Distance
Training/Learning
Cooperative
Training
Instructor-Led
Classroom and
Conference
Training
Technology and
Training
Training
Methods

Levels of Training Evaluation

Balancing Costs and Benefits of Training

Training Evaluation (cont’d)
Cost-Benefit Analyses
◦ Comparison of costs and benefits associated with training
Return on Investment
Benchmarking Training

Evaluation Designs
Post-Measure
Pre-/Post-
Measure
Pre-/Post-
Measure with
Control Group
Evaluation
Design

Careers
Career
◦ The series of work-related positions a person occupies through life.
Organization-Centered Career Planning
◦ Focuses on jobs and on identifying career paths that provide for the logical
progression of people between jobs in the organization.
Individual-Centered Career Planning
◦ Focuses on individuals’ careers rather than in organizational needs.

Career Development
Career Defined
◦ The sequence of positions held by a person during his or her
lifetime.
Career Development
◦ Provides for information, assessment, and training
◦ Helps attract and retain highly talented people
Boundaryless Career
◦ A career in which individuals, not organizations, define career
progression and organizational loyalty

Organizational and Individual
Career Planning Perspectives

Career Management for
Individuals
Setting Career Goals
Self-Assessment Feedback on Reality
Career
Management

How People Choose Careers
Social
Background
Interests
Self-Image
Personality
Career Choice

General Career Periods

Career Transitions and HR
The Work
Supervisors Feedback
Time
Entry
Shock

Late Career/Retirement
Territoriality
Self-
Management
Need to
Belong
Pride in
Achievement
Retirement
Adjustment
Goals

Special Career Issues for
Organizations and Employees
Career Plateaus
◦ Employees who are “stuck” at a career level and lack opportunities for upward
mobility.
Technical and Professional Workers
◦ Dual-career ladders provide advancement pathways for specialists and
technical employees.
Dual-Career Couples
◦ Problems occur when one partner is promoted or transferred, causing the
other partner to have to relocate.

The “Portable” Career Path

Dual-Career Paths for Engineers

Developing Human Resources
Development
◦ Efforts to improve employees’ ability to handle a variety of a variety of
assignments.
Developing Needs Analyses
◦ Assessment Centers
◦ A collection of instruments and exercises designed to diagnose individuals’ development needs.
◦ Intent is to identify management potential in participants.

Development vs. Training
Figure 10–6

10–146
The HR Development
Process in an
Organization
Figure 10–7

The HR Development Process
Re-Development
Make or Buy?
Developing
Specific
Capabilities
Lifelong
Learning
HR Development

Other Development Issues
Psychological Testing
◦ Performance Appraisals
◦ Serve as a source of development information
◦ Results can be difficult to interpret.
Succession Planning
◦ The process of identifying a
longer-term plan for the orderly
replacement of key employees.

Succession Planning Process

Choosing a Development
Approach
Job-Site
Methods
Committee
Assignment/
Meetings
Job
Rotation
“Assistant to”
Positions
On-line
Development
Corporate
Universities Career
Development
Learning
Organization
Individual
Coaching

Possible Means Used in a Learning Organization

Choosing a Development
Approach (cont’d)
Sabbaticals and
Leaves of Absence
Classroom Courses
and Degrees
Human Relations
Training
Off-Site Methods
Outdoor Training Simulations
(Business Games)

Advantages and Disadvantages of Major Development Approaches

Managerial Lessons and Job Experience

Management Development
Managerial
Modeling
Management
Coaching
Mentoring
Executive
Education

Stages in Mentoring Relationships

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

Employee Performance
Management
Performance Management System
◦ A process establishing performance standards and appraising employee
performance in order to arrive at objective HR decisions and to provide
documentation in support of those decisions.

Identifying and Measuring
Employee Performance
Performance Management System
◦ Processes used to identify, encourage, measure, evaluate, improve, and reward
employee performance.
Performance
◦ What an employee does and does not do.
◦ Quantity of output • Quality of output
◦ Timeliness of output • Presence at work
◦ Cooperativeness
Job Criteria
◦ Important elements in a given job

Linkage Between
Strategy, Outcomes,
and Organizational
Results

Types of Performance
Information
Trait-based
Information
Behavior-based
Information
Results-based
Information
Job
Performance?

Potential Performance Criteria
Problems
Objectivity
Deficiency Contamination
Performance
Criteria

Performance Standards
Performance Standards
◦ Expected levels of performance
◦ Benchmarks
◦ Goals
◦ Targets
Characteristics of Well-defined Standards
◦ Realistic
◦ Measurable
◦ Clearly understood

Terms Defining Standards on One Company

Uses of Performance Appraisal
Performance Appraisal (PA)
◦ The process of evaluating how well employees perform their jobs when
compared to a set of standards, and then communicating the information to
employees.
◦ Informal Appraisal
◦ Day-to-day contacts, largely undocumented
◦ Systematic Appraisal
◦ Formal contact at regular time intervals, usually documented

(cont’d)
Performance
Appraisal
Giving Performance
Feedback
Administering Wages
and Salaries
Identifying Strengths
and Weaknesses

(cont’d)
Criticisms of Performance Appraisal
◦ Focus is too much on the individual and does little to develop employees.
◦ Employees and supervisors believe the appraisal process is seriously flawed.
◦ Appraisals are inconsistent, short-term oriented, subjective, and useful only
at the extremes of performance.

Conflicting Roles for Performance Appraisal

for Performance Appraisal

If Performance Falls Short
Train
Discipline
Coach
Out the Door

Who Conducts Appraisals
Supervisors who rate their subordinates
Employees who rate their supervisors
Team members who rate each other
Outside sources
Employees’ self-appraisal
Multisource (360° feedback) appraisal

Traditional Performance Appraisal:
Logic and Process

Employee Rating of Managers
Advantages
◦ Helps in identifying competent
managers
◦ Serves to make managers more
responsive to employees
◦ Can contribute to the career
development of managers
Disadvantages
◦ Negative reactions by managers
to employee ratings
◦ Subordinates’ fear of reprisals
may inhibit them from giving
realistic (negative) ratings
◦ Ratings are useful only for self-
improvement purposes

Team/Peer Ratings
Advantages
◦ Helps improve the
performance of lower-rated
individuals
◦ Peers have opportunity to
observe other peers.
◦ Peer appraisals focus on
individual contributions to
teamwork and team
performance.
Disadvantages
◦ Can negatively affect working
relationships.
◦ Can create difficulties for
managers in determining
individual performance.
◦ Organizational use of individual
performance appraisals can
hinder the development of
teamwork

Multisource Appraisal

Performance Appraisal Methods

Category Rating Methods
Graphic Rating Scale
◦ A scale that allows the rater to indicate an employee’s performance on a
continuum.
◦ Job criteria scales
◦ Behavioral scales
◦ Drawbacks
◦ Restrictions on the range of possible rater responses
◦ Differences in the interpretations of the meanings of scale items and scale ranges by raters
◦ Poorly designed scales that encourage rater errors
◦ Rating form deficiencies that limit the effectiveness of the appraisal

Category Rating Methods
(cont’d)
Checklists
◦ A performance appraisal tool that uses a list of statements or work behaviors
that are checked by raters.
◦ Can be quantified by applying weights to individual checklist items.
◦ Drawbacks
◦ Interpretation of item meanings by raters
◦ Weighting creates problems in appraisal interpretation
◦ Assignment of weights to items by persons other than the raters

Sample Performance Appraisal Form

Comparative Methods
Ranking
◦ Listing of all employees from highest to lowest in performance.
◦ Drawback
◦ Does not show size of differences in performance between employees
◦ Implies that lowest-ranked employees are unsatisfactory performers.
◦ Becomes an unwieldy process if the group to be ranked is large.

Comparative Methods (cont’d)
Forced Distribution
◦ Performance appraisal method in which ratings of employees are distributed
along a bell-shaped curve.
◦ Drawbacks
◦ Assumes a normal distribution of performance.
◦ Resistance by managers to placing individuals in the lowest or highest groups.
◦ Providing explanation for placement in a higher or lower grouping can be difficult.
◦ Is not readily applicable to small groups of employees.

Forced Distribution on a Bell-Shaped Curve
184

Narrative Methods
Critical Incident
◦ Manager keeps a written record of highly favorable and unfavorable
employee actions.
◦ Drawbacks
◦ Variations in how managers define a “critical incident”
◦ Time involved in documenting employee actions
◦ Most employee actions are not observed and may become different if observed
◦ Employee concerns about manager’s “black books”

Narrative Methods (cont’d)
Essay Method
◦ Manager writes a short essay describing an employee’s performance.
◦ Drawbacks
◦ Depends on the managers’ writing skills and their ability to express themselves.
Field Review
◦ Outside reviewer interviews the manager about the performance of each
employee and develops a rating for the employees from the interview notes.

Behavioral/Objective Methods
Behavioral Rating Approach
◦ Assesses employees’ behaviors instead of other characteristics
◦ Consists of a series of scales created by:
◦ Identifying important job dimensions
◦ Creating statements describing a range of desired and undesirable behaviors (anchors)
◦ Types of behavioral scales
◦ Behaviorally anchored rating scales (BARS)
◦ Behavioral observation scales (BOS)
◦ Behavioral expectation scales (BES)

Customer Service Skills (BOS)

Management by Objectives
Management by Objectives
◦ Specifying the performance goals that an individual and his or her manager
agree to try to attain within an appropriate length of time.
Key MBO Ideas
◦ Employee involvement creates higher levels of commitment and
performance.
◦ Encourages employees to work effectively toward achieving desired results.
◦ Performance measures should be measurable and should define results.

The MBO Process
Job Review and Agreement
Development of Performance Standards
Guided Objective Setting
Continuing Performance Discussions

Common Rater Errors
191

Feedback as a System
Action Based on
Evaluation
Data
Evaluation
of Data
Feedback
System

Appraisal Interview Hints

Rewarding Employees
•Why rewarding is so important for employees and employers?
•What type of questions would you ask yourself after you get an offer
from the company?
•What factors should you consider when determining the salary range
for a job?
•What is the best way to determine how much employees should be
paid?
•How much of that pay should be guaranteed, how much should be
based on incentives?

Why do we reward our employees?
What is the objective the reward sytem?
•To attract
•To motivate
•To retain
•The objective of rewarding, is to encourage desired employee
behaviours to ensure the success of human resource strategies.
•Designing and implementing an appropriate reward systems that
complements HR strategies and fits business competitive strategies.

MOTIVATION AND PAY
The model of motivation indicates that individuals choose to behave in
ways which will maximize their rewards.
The most obvious reward is pay, but there are many others, including
promotions, desirable work assignments, and recognition.

The linkage to motivation
Organizations use rewards to motivate people.
Rewards can motivate people to join the organization, and to perform
effectively once hired.

A Model of the Consequences of Pay Dissatisfaction

The Distinction b/w Rewards
and Compensation
Compensation: the monetary and non- monetary rewards employees
receive in Exchange for the work they do for an organization.
Rewards: the sum of all aspects of a compensation package (base pay,
incentives, benefits, perks, …) that signals to current and future
employees that they are receiving more than just base pay in Exchange
of their work.

Components of A Compensation Program

Direct Compensation
Compensation Type
Base Pay The basic monetary compensation that an
employee receives, usually as a wage or
salary.
Wages Payments calculated on the amount of time
worked.
Salary Consistent payments made each period
regardless of the number of hours worked in
the period.
Variable Pay Compensation linked to individual, team, or
organizational performance.
Benefit An indirect reward given to an employee or
group of employees as a part of
organizational membership.

Typical Division of HR Responsibilities: Compensation

Continuum of Compensation Philosophies

Compensation Approaches

Decisions About
Compensation Levels
Compensation Strategies
Above-Market Paying for higher qualified, more productive
workers.
Middle-Market Attempting to balance of employer costs and
need to attract and retain employees.
Below-Market Paying all that the firm can afford
Taking advantage of the abundant supply of
potential employees in a loose labor market.

Individual vs. Team Rewards
Distribute variable rewards at the team level
Make system simple and understandable.
Using Team-Based Reward Systems
Use skill-based pay for the base.
Use variable pay based on business entity performance
Maintain a high degree of employee involvement

List the basic factors
determining pay rates.
TÜZÜNER V.L.
PROFESSOR,
Chapter 6-207

Basic Factors in Determining Pay
Rates
Aligning total rewards with strategy
Equity and its impact on pay rates
Equity theory of motivation
Addressing equity issues
TÜZÜNER V.L.
PROFESSOR,
Chapter 6-208

Equity and its Impact on Pay
Rates
External Equity
Internal Equity
Individual Equity
Procedural Equity

Perceptions of Pay Fairness
Equity The perceived fairness between what a person
does (inputs) and what the person receives
(outcomes).
Procedural Justice The perceived fairness of the process and
procedures use to make decisions about
employees
Distributive Justice The perceived fairness in the distribution of
outcomes.
Pay Openness The degree of openness or secrecy that an
organization allows regarding its pay system.
External Equity The perception that the organization provides
employees with compensation that comparable
to the compensation of employees with similar
jobs in other organizations.

Equity Considerations in Compensation

Other Factors
Union influences on compensation decisions
Pay policies
Geography
TÜZÜNER V.L.
PROFESSOR,
Chapter 6-212

Reward Systems in general
•Rewards are viewed primarily as the paychecks employees collected
every week or month.
•Today, covers more broader area, covering wages, incentives, benfits
that produces employee behaviours the firm needs to support and
achieve its competitive strategy.
•Total rewards encompass the traditional pay, incentives and benefits
bur also things such as more challenging jobs, career development and
recognition programs.

Structure Of Reward

Types of employee rewards
Intrinsic versus extrinsic rewards
◦ Intrinsic rewards come form the job itself, such as pride in one’s work or
feelings of accomplishment.
◦ Extrinsic rewards come from a source outside of the job; they include
rewards offered by management, such as pay, promotions and benefits.

Financial versus nonfinancial rewards
◦ Financial rewards include wages, bonuses, pension plans and paid leaves.
◦ Non financial rewards emphasize making life on the job more attractive;
employees vary greatly on what types they find desirable.

Performance-based versus membership-based rewards
◦ Performance-based rewards, such as commissions are tied to specific job
performance criteria; it is unusual to find rewards that are truly
performance-based.

Performance-based versus membership-based rewards
◦ Membership-based rewards include those based on seniority and benefits
offered to all employees.

What is compensation
Administration?
The process of managing a compensation program so that the
organization can attract, motivate and retain competent employees
who perceive that the program is fair.

Compensation
Administration Process

Job evaluation
Job evaluation is the process which is used to determine the relative
value of various jobs in an organization. It is based on job analysis
information.

Job evaluation and the pay
structure
Job analysis information is used to determine the
relative values of jobs in an organization.
The ranking of jobs within an organization is only
one type of information considered in designing a
pay structure. The labor market, collective
bargaining, and individual differences in
performance are others.

Isolating job evaluation criteria
•Judgment is involved in defining what factors
should be used to compare jobs.
•Typical criteria are mental requirements; level of
supervision; complexity; physical demands.
•Typical jobs are grouped according to type and
compared only within their group; for example,
clerical jobs, sales jobs, professional jobs.

Methods of evaluation
Ordering method: A committee ranks whole jobs from highest(worth
highest pay) to lowest
Classification method: Jobs are placed in grades by comparing their
descriptions to the grade definitions.

Methods of evaluation
•Factor comparison method: A complex system
which requires the evaluators to compare jobs to
key jobs on each of several factors. Dollar values for
each factor are summed to determine overall pay
rate.
•Point method: Jobs are rated and allocated points
on several criteria, using clearly defined rating
scales. This is the most widely-used method.

A Point System Matrix

Establishing the pay s
structure
Wage surveys are used to gather factual data
on pay rates for other organizations with
which you are competing for employees.
Wage curves are drawn by plotting job
evaluation data (such as job points or grades)
against pay rates(actual or from survey data).
These graphs indicate

Establishing the pay structure
Wage curves are drawn by plotting job evaluation data (such as job
points or grades) against pay rates(actual or from survey data). These
graphs indicate whether the pay structure is logical, and can be used to
determine the pay rates for jobs without good external comparisons.

Establishing the pay structure
The wage structure designates pay ranges for groups pf jobs which are
similar in value to the organization and which are grouped by their
classifications, grades or points.

Pay Scattergram

Pay Structures (cont’d)
Pay Grades
◦ A grouping of individual jobs having approximately the same job worth.
Broadbanding
◦ The practice of using fewer pay grades having broader pay ranges that in
traditional systems.
◦ Benefits
◦ Encourages horizontal movement of employees
◦ Is consistent with trend towards flatter organizations
◦ Creates a more flexible organization
◦ Encourages competency development
◦ Emphasizes career development

Traditional Pay Structure vs. Broadbanding

Typical Pay Range Widths

Example of Pay
Grades and Pay
Ranges

Factors That Influence Compensation and
Benefits
Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994),
pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1

Pay: The Dominant
Organizational Reward
Organizations provide rewards to their employees in order :
◦ To motivate their performance
◦ To encourage their loyalty and retention.
Money does it motivate employees?
Money can explain behavior?
◦ the foundation of commerce
◦ Achievement and recognition
◦ Status and respect
◦ Freedom and control
◦ Power
◦ «wealth is like seawater, the more we drink the thirstier we become»

Pay: The Dominant
Organizational Reward
An Agency Theory Explanation
Is concerned with the diverse interests and goals that are held by a
Corporation’s stakeholders and the methods by which the enterprise’s
reward system is used to align these interests and goals.
The people who are in control of large corporations are seldom the
owners; rather they are agents who are responsible for representing the
interests of the owners.
Agency theory deals with
◦ Conflicting views of managers and owners at the use of the compensation
◦ Risk
◦ Time horizons differences

Effectiveness of Pay
If the pay system is well- designed it will affect individual, organizational
and group performance.
The more some people get, the more they seem to want
If the company reduces the pay, employee morale will suffer.
Compensation system - employee trust - toward the organization

Variable Pay: Incentives for
Performance
Variable Pay Systems Service Pay Systems
Some jobs contribute more to the
organization than others.
Time spent is the primary
measure of employee contribution
Some people perform better than
others.
Length of service is the primary
differentiating factor among
people.
Employees who perform better
should receive more
compensation.
Contributions are recognized
through different amounts of base
pay.
A portion of some employees’
total compensation should be
contingent on performance.
Apportioning rewards based on
individual performance is
considered to be divisive.

Types of Variable Pay Plans

Factors Affecting Variable Pay
Plans
Does the plan fit
the organization?
Are the right behaviors
encouraged by the plan?
Is the plan being
administered properly?
Variable Pay Plan
Success

Factors for Successful
Variable Pay Plans

Individual Incentives
Individualism
Stressed in
Organizational
Culture
Identification of
Individual
Performance
Independent
Work
Individual
Competitiveness
Desired
Individual
Incentive Pay
Plans

Piece-Rate Systems
Straight Piece-Rate Systems
◦ Wages are determined by multiplying the number of pieces produced by the
piece rate for one unit.
Differential Piece-Rate Systems
◦ Employees are paid one piece-rate for units produced up to a standard
output and a higher piece-rate wage for units produced over the standard.

Bonuses and Special Incentive
Programs
Bonus
◦ A one-time payment that does not become part of the employee’s base pay.
Awards
◦ Cash or merchandise used as an incentive reward.
Recognition Awards
◦ Recognition of individuals for their performance or service to customers in
areas targeted by the firm.
Service Awards
◦ Rewards to employees for lengthy service with an organization.

Sources of Bonuses

Different Bases for Sales Incentives, In Order of Use

Sales Compensation Plans
Salary Only
◦ All compensation is paid as a base wage with no incentives.
Commission
◦ Straight Commission
◦ Compensation is computed as a percentage of sales in units or dollars.
◦ Draw system make advance payments against future commissions to salesperson.
◦ Salary Plus Commission or Bonus
◦ Compensation is part salary for income stability and part commission for incentive.

Why Organizations Establish Team Pay Plans

Group/Team-Based Variable
Pay
Determining
Individual
Rewards
Timing of
Team Incentives
Deciding the
Allocation of
Rewards
Distributing
Team
Incentives

Conditions for Successful Team Incentives

Gainsharing
Gainsharing
◦ The sharing with employees of greater-than-expected gains in productivity.
◦ Alternatives for rewards distribution:
◦ A flat amount for all employees
◦ Same percentage of base salary for all employees
◦ Percentage of the gains by category of employees
◦ A percentage based on individual performance against measures

Profit Sharing
Profit Sharing
◦ A system to distribute a portion of the profits of the organization to
employees.
◦ Primary objectives:
◦ Improve productivity
◦ Recruit or retain employees
◦ Improve product/service quality
◦ Improve employee morale
◦ Drawbacks
◦ Disclosure of financial information
◦ Variability of profits from year to year
◦ Profit results not strongly tied to employee efforts

Profit-Sharing Plan Framework Choices

Employee Stock Ownership
Plans (ESOPs)
Employee Stock Ownership Plans
◦ A plan whereby employees gain stock ownership in the organization for
which they work.
ESOP Advantages
◦ Favorable tax treatment for ESOP earnings
◦ Employees motivated by ownership in the firm
ESOP Disadvantages
◦ Retirement benefit is tied to the firm’s performance
◦ Management tool to fend off hostile takeover attempts.

Executive Compensation Components

Common Executive Perks

Arguments in the
Executive Pay
Debate

Employee Benefits
Indirect financial rewards
Designed to enrich employees’ lives
Vary widely in scope
Costs range from 30% to 40% of payroll costs

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

Health, Safety, and Security
Health
◦ A general state of physical, mental, and emotional well-being.
Safety
◦ A condition in which the physical well-being of people is protected.
Security
◦ The protection of employees and organizational facilities.

Typical Division of Responsibilities:
Health, Safety, and Security

Approaches to Effective Safety Management

Other Safety Issues
Employee
Motivation
and Incentives
Safety Policies
and Discipline
Safety
Committees
Safety Training
and
Communications
Employee and
Workplace
Safety

Phases of Accident Investigation

Health
Smoking
at Work
Substance
Abuse
Emotional/
Mental Health
Concerns
Workplace
Air Quality
Workplace
Health Issues

Common Signs of Substance Abuse

Health Promotion Levels

Security
Top Eight Security Concerns at Work:
◦ Workplace violence
◦ Internet/intranet security
◦ Business interruption/disaster recovery
◦ Fraud/white collar crime
◦ Employee selection/screening concerns
◦ General employee theft
◦ Unethical business conduct
◦ Computer hardware/software theft

Profile of a Potentially Violent
Employee

Workplace Violence
Training in Detection
and Prevention
Domestic
Causes
Management
Responses
Workplace
Violence
Issues

Maintenance Function
The objective of this phase, is to put into place activities that will help to retain
productive employees.
◦ Communication: is more related with motivation.
◦ HRM must work to ensure that the working environment is safe and healthy.
◦ Employee Relations: with non- union workers
◦ Industrial Relations: with union workers

Labour Relations
Relationship between union and employer and the
government.
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

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