COMM181 - HR Final Exam

Mod 1: Occupational Health and Safety (OHS)

Ontario Occupational Health and Safety Act OHSA (1979, amended 1990)

Goal

• to protect workers from health and safety hazards on the job

• it sets out duties for all workplace parties and rights for workers

  • Workplace Safety and Insurance Act (WSIA) - pt 2 deals with the prevention of occupational injury and disease

Coverage

• applies to almost every worker, supervisor, employer and workplace in Ontario, including workplace owners, constructors and suppliers of equipment or materials to workplaces covered by the Act

Enforcement

• a fine of up to $100,000 for an individual person and/or up to 12 months imprisonment;

• a fine of up to $1,500,000 for a corporation

Employee Rights

Under the Canada Labour Code, employees have the following three basic rights:

1. to know about anything that could affect health and safety in the workplace

2. to take part in making the workplace safe

3. to refuse work that is not safe

Employer Responsibilities

• report a workplace accident or injury

• provide first aid in the workplace

• prevent workplace injury

• create a company safety policy

• know your responsibilities

• establish a health and safety program

• control hazards

• learn from experience

• leadership and training

• establish a return-to-work program

• create a joint occupational health and safety committee or representative

Occupation Health and Safety

• the identification, evaluation, and control of hazards associated with the work environment

OHS: Potential Health Hazards

Potential health hazards:

1. physical agents

• noise, temperature, lighting, vibrations, and radiation

2. biological agents/biohazards

• exposure to natural organisms such as parasites, bacteria, insects, viruses, etc

3. chemical agents

• chemical compounds, other harmful toxic substances

4. ergonomically related injuries

• ergonomics: interaction of physical attributes of workers with their work environment (human-machine interface)

• problems include repetitive strain, stress, over-exertion, fatigue, back injuries, etc

5. psychosocial hazards

• related to characteristics of the job, work environment

OHS: Psychosocial Hazards and Workplace Stress

What is workplace stress?

• many different uses of the term “stress”

  • something we are exposed to; something we feel

General stress model distinguishes between:

• stressors

• stress

• strain

There is also:

• eustress

• distress

• burnout

General Stress Model: Stress, Stressors, Strain

Stressor

• environmental event

Stress

• an individual’s response to, or evaluation of, the stressor

Strain

• result of stress - psychological, physical, behavioural, organizational

Moderators

• factors that change the relationship between 2 variables

• influences whether stressor —> stress, and stress —> strain

Eustress, Distress, Burnout

Eustress (+)

• positive stress that accompanies achievement and exhilaration

Distress (-)

• harmful stress characterized by a loss of feeling of security and adequacy

Burnout (-)

• most severe stage of distress, manifesting itself in depression, frustration, and loss of productivity

OHS: Major Work-related Stressors

workload/work pace

• amount of work; speed required

role stressors

• role conflict - incompatible demands from 2 or more sources

• role ambiguity - unclear expectations

• inter-role conflict - ex// work-family conflict

work scheduling

• ex// night work, rotating shifts

career concerns

• job insecurity, over/under-promotion

job content and control

• inadequate skill use & discretion; little meaning

interpersonal relations

• conflict, aggression (coworkers, supervisors, subordinates)

OHS: Workplace Aggression (WA) and Violence

Definition of WA

• “behaviour that is enacted by an individual(s) within or outside an organization, intended to physically or psychologically harm a worker(s), and occurs in a work-related context”

Sources of WA

• coworkers, supervisors, subordinates, public

Types of WA

• violence: physical acts, may result in physical harm

• hostility: verbal abuse, cursing

• incivility: gossip, rumours, mean pranks

• work obstruction: interruptions, not providing resources

OHS: Types of Workplace Violence

Types of Workplace Violence

• based on assailant’s (aggressor’s) relationship with target

Type 1: no legitimate relationship

• enters workplace to commit criminal act (theft)

• 85% of workplace homicides (death, intentional or not) are a result of this

Type 2: legitimate relationship

• aggressive act committed during an interaction

  • ex// customer, client, patient

• accounts for about 60% of nonfatal (not causing death) assaults

Type 3: assailant is a current or former employee

• targets a coworker or supervisor

• related to both individual and organizational characteristics (discussed later)

Type 4: assailant has ongoing or previous relationship with an individual employee

• ex// domestic violence spilling into workplace

• 5% of workplace homicides

OHS: Workplace Violence - Individual Predictors

Workplace Violence

Individual Predictors

• trait anger

• predisposition toward revenge

• negative affectivity

• low self-control

• hostile attributional style

• past history with aggression

• alcohol consumption

OHS: Workplace Violence - Situational/Organizational Predictors

Workplace Violence

Situational/Organizational Predictors

• physical conditions

  • crowding, heat, noise, etc

• perceived injustice

• layoffs, downsizing

• strict/abusive supervision

• failure to address aggression/mistreatment

  • lack of a policy/enforcement

OHS: Workplace Aggression - job-related predictors of experiencing aggression

Workplace Aggression

Job-Related Predictors of Experiencing Aggression

• being responsible for the care of others

• exercising physical control over others

• interacting with frustrated individuals

• having contact with individuals under the influence of alcohol, illegal drugs, or medication

• supervising/disciplining others

• decisions that result in the denial of a service/request

• working alone

• working evenings or nights

• working in clients’ homes

• handling valuable guns, weapons, or dispensing drugs

OHS: Workplace Aggression - Potential Consequences of Aggression

Workplace Aggression

Potential Consequences of Aggression

• Physical

  • injury, death, somatic symptoms

• psychological

  • fear, anger, depression, anxiety

  • reduced job satisfaction, commitment

• behavioural

  • substance use, aggressive behaviour

  • reduced job performance, absenteeism, quitting

Under Pressure

• 62% of Americans are stressed about work (APA)

• each year, more than $275,000,000 worth of working days are lost in the US because of absenteeism resulting from stress

• ¼ Americans admits to have taken a “mental health day” to cope with stress

  • cost to employer = $602 per worker per year

• lady gaga, kanye west, selena gomez and mariah carey all reported to have been hospitalized as a result of stress and exhaustion

• eating 1.4 ounces of dark chocolate everyday for 2 weeks has been shown to reduce stress (study conducted by Nestle)

• stress balls, relaxation tapes, and other stress-fighting products and services account for $14B of spending in the US each year

• 1/3 of American children (8-17) worry about their family finances

  • other sources of stress are from homework and teasing

• kids cope with stress by listening to music (44%), eating (26%), and talking to their parents (22%)

• 2/3 of spoken curse words are a result of stress

• swearing accounts for 80 out of 15,000 typically spoken words per person, per day

• study of 42 female monkeys found those suffering from social stress held more abdominal fat, a precursor to heart disease

• In Sweden, stress and anxiety account for 41% of total sick pay

• workers can get up to 75% of their salary as sick pay for years

Mod 2: Orientation, Training & Development

• in class activity: scavenger hunt

Socialization vs Orientation

socialization

• process of employees adapting to organization

• long-term process, often informal

orientation

• program that informs new employees about their job and company

• short-term, often formal

socialization

define

• a process by which employees begin to adapt to the values, norms, and beliefs of the organization and its members

• involves learning the organization’s climate (shared perceptions) and learning to “fit in”

climate

• “members’ shared perceptions of the contingencies (possible future event/outcome) between behaviours that occur in the work environment and their consequences”

• learning what behaviours are expected, acceptable, and unacceptable

stages of socialization

1. anticipatory (pre-arrival)

• employees begin with certain expectations about the organization and the job

• based on company reputation, word of mouth, experiences during recruitment and selection

2. encounter

• employee has started new job

• Inconsistencies between expectations and realities emerge

• needs info re policies, procedures, etc.

benefits of an orientation program

• shows the organization values the employee

• reduces employee anxiety

• clarifies expectations (and improves performance)

3. change (settling in)

• inconsistencies start to get worked out

• employee begins to identify with the organization

• transition from being an “outsider” to feeling like an “insider”

• often involves taking on new attitudes, values, and behaviours to align with the organization’s

• misalignment = dissatisfaction and turnover

Realistic Job Preview (RJP) may be helpful

• information about job demands and working conditions; both positive and negative consequences

• ex// life insurance sales job: autonomy, high income potential, but also income uncertainty

Why is socialization important?

Sets the tone of employment relationship

• reduces anxiety for employees

  • will I fit in?

  • will I enjoy the job/coworkers?

• affects employee performance

  • clarifies expectations and how things are done

• affects other individual and organizational outcomes

  • lower commitment, absenteeism, turnover, lower productivity

Training vs Development

Both refer to the learning of job-related behaviour

• Training

  • focuses on job performance

  • emphasis on acquisition of specific KSAs needed for the present job

• Development

  • focuses on personal growth, longer-term development

  • emphasis on acquiring KSAs needed for future job or organizational needs

Training Process (5 steps)

Step 1: Needs Analysis (goals)

• organizational analysis

  • culture, values, mission, goals (ex// audit report writing)

• job/task analysis

  • KSA requirements

• person analysis

  • gaps between employee KSAs and KSAs required by jobs

  • ex// performance evaluations, self or supervisor identification

• what is the goal of training?

  • Organizational change vs achieving performance levels

Step 2: Develop Training Objectives

• must include:

1. the desired behaviour

2. the conditions to which it is to occur

3. performance criteria

• ex// by the end of this class, you will be able to list and define the 5 steps involved in the development of a training program, without referring to your notes

Step 3: Develop Program Content and Learning Principles

• issues to consider:

  • needs assessment

  • training objectives

  • audience

  • class size

  • time availability

  • cost

  • training format

  • learning principles

Step 4: Deliver Training

• Numerous methods to choose from:

  • off-the-job techniques

    • lectures

    • role playing (ex// x-cultural training)

    • case studies

    • simulations

    • computer-based training

    • virtual learning

  • on-the-job techniques (OJT)

    • ex// apprenticeship, job rotation

Step 5: Evaluating Training Effectiveness

• 5 criteria - Kirkpatrick’s 4 levels plus 1

1. Reaction

• Are participants satisfied with training?

2. Learning

• How much has been learned?

3. Attitude change (in addition to Kirkpatrick)

• Did training result in attitude change?

4. Behaviour change

• Did the learning transfer to the job?

5. Results criteria

• Was the training worth the cost to the company?

Training Process: Learning Principles

Learning Principles

Factors that contribute to effective learning:

1. participation

• participants are actively involved (liked prof eddy asking students questions in class)

2. repetition

• repeated review of material (students learning again at home after class)

3. relevance

• material is meaningful (or take philosophy 101)

4. transference

• application of training to actual job situations (ex// simulation exercise)

5. feedback

• information given to learners re their process (midterm, final)

Training Motivation and Success

Direction, intensity, persistence to learn

Affected by individual characteristics and situational characteristics

1. individual characteristics

• cognitive ability

• need for achievement (motivated to learn)

• conscientiousness (discipline to learn)

• locus of control, self-efficacy (belief in one’s capabilities)

• valence (belief regarding desirability of outcomes obtained from training)

• age, anxiety (negative relationship)

2. situational characteristics

• climate (work environment that influence use of training on the job)

• ex// adequate resources, cues to remind them of what they learned, opportunities to use skills, frequent feedback

source: colquitt, lepine, & noe, 2000

Strengths and Weaknesses in Training (relation between)

Training Evaluation

If possible use an evalution method that will allow you to draw conclusions about the training’s effectiveness

1. Reaction measures

• Important but don’t refer to effectiveness

2. Measure behaviour post-training

• Can’t determind whether change occurred

• Pre-test, Post-test design

Pre-test, Post-test Design

measure —> training —> measure

• Allows you to see if change has occurred:

  • ex// # of widgets produced before training = 10/minute

  • # of widgets produced after training = 16/minute

• But what if other employees who did not receive training average = 15 widgets/minute

Is training effective?

• should also use a control group

• employees who did not receive training

Control Group

Mod 3: Performance Management

Performance Appraisal: Purpose of Performance Appraisals

Purpose of Performance Appraisals

1. Administrative - to make employment decisions

• promotion, termination

• training - who to train, what training is required

• compensation - merit increases

• legal justification for any of these decisions

2. Feedback and development

• point out strengths and weaknesses

• Identify corrective action to address weaknesses

• motivation (recall Hackman & Oldham)

Performance Appraisal: The “Criterion Problem”

The “Criterion Problem”

• difficulties involved in determining what performance is and how to measure it

Ultimate Criterion

• ex// “what is happiness?”

• It is a “construct”, in other words (i.e.), conceptual in nature

• includes everything that ultimately defines success on the job

Operational Criterion

• the aspects of performance that are actually measured

Criterion Deficiency

• when performance standards fail to capture the full range of employees’ responsibilities

• ex// focus on sales but ignore customer service

Criterion Contamination

• when factors outside the employee’s control influence his/her performance

• ex// machine breakdowns, differences in sales regions

Performance Appraisal: Potential Performance Criteria

Potential Performance Criteria

1. Output

• units produced, items sold, $ sales, commissions earnings

2. Quality measures

• # errors, # errors detected, # complaints/grievances, # commendations, breakage

3. Lost time

• absences (unexcused), lateness/tardiness, turnover (withdrawal from training or job, transfers tue to inadequate performance)

4. Ratings

• performance appraisals by trainers, supervisors, peers, self

5. Others

• citizenship behaviours (volunteer)

• counterproductive behaviours (theft)

• safety records, accidents

Performance Appraisal: Measurement Considerations

Measurement Considerations

• Absolute judgments vs. relative judgments

Absolute

• compare employee to pre-established criteria/dimensions

• focused on definite goals for individuals

• ex// your weekly decisions sets

Relative

• compare employee to other employees’ rankings

• more competitive, and can lead to less effective teamwork and cooperation

• ex// your rankings at the end of Q2 and Q4

Performance Appraisal: Measurement Methods

Measurement Methods

• What do we want to measure: traits, outcomes, or behaviours?

Traits

• ex// loyalty, dependability, initiative

• problems: ambiguous, susceptible to bias, not legally defensible, focuses on the person rather than the performance

Outcomes

• ex// sales revenue, # calls answered, # of complaints

• problems: influenced by factors beyond employee control

Behaviours

• ex// work well with others

• focuses on what employees do (in other words, what they should start, stop, and continue doing)

• 2 common instrument types: BARS and BOS

Methods of Appraisal

• performance checklist: check in the box (ex// Mcdonalds)

• field review: “watch what you do” (ex// mystery shops - go undercover, military)

• graphic rating scale: list of performance characteristics rated by quality of performance (most popular and common)

• mixed standard scales: rate either as better, equal, or worse than statements describing behaviour

• forced-choice method: must rate one of 2 statements (+ve/-ve)

• narrative essay: unstructured and unstandardized to facilitate comparison (good for writing recommendations)

• critical incident method: recording (?) effective and ineffective behaviours (impractical)

• combination approaches: combination of any of the above

Behavioural Instrument: BARS

1. Behaviourally Anchored Rating Scales (BARS)

• format was developed due to lack of standardization (and reliability) across rates

• goal was to help rater rate

• performance standards are concrete:

1. Each standard consists of a number of specific, behavioural anchors on the rating form itself

2. The behaviour anchors cover the range of performance from excellent to poor

3. Anchors are worded in the form of expectations; see p. 370 text for example

Behavioural Instrument: BOS

2. Behavioural Observation Scales (BOS)

• Assess performance based on the frequency of use criterion

• ex// overcoming resistance to change

1. describes details of change to subordinates

2. listens to employee concerns

3. discusses with employees how changes will affect them

4. (ex// 1 = almost always never, 5 = almost alwaus)

Performance Appraisal: 360/Multi-Rater Feedback

360/Multi-Rater Feedback

Benefits

• More complete picture of job performance

1. Different stakeholders may observe different behaviours

2. Target may behave differently with different stakeholders

• Reduced bias because feedback comes from more than one person

• Feedback from peers and subordinates useful for developmental purposes

Limitations

• complex and time-consuming

• potential for conflicting opinions

• same behaviours may be seen as positive by one group and negative by another

• peer, subordinate, and self-ratings: not useful for administrative decisions (ex// raises)

• peer and subordinate evaluations may jeopardize co-worker relations

Discussion question: among the different raters, who do you think is the best rater for developmental (promotional opportunities)

Performance Appraisal: Factors Distorting Ratings

Factors Distorting Ratings

Individual Differences

• halo effect

  • tendency to provide similar ratings across different dimensions

• leniency/harshness effect

  • when ratings are restricted to the high/low part of the scale

• central tendency effect

  • when rater avoid extreme ratings and restricts to the middle of the scale

• similarity effect (“similar-to-me” effect)

  • tendency of rater to inflate ratings when they have something in common with the target

• recency effect

  • ratings are based largely on employees' most recent behaviour

• contrast effect

  • when employee’s ratings are biased upward/downward because of comparison with another person who was recently rated

• matthew effect

  • tendency of rater to use previous evaluations as anchor for subsequent evaluations

    • 1. employee receives same evaluation year in year out

    • 2. if they have done well, will continue doing well; vice versa

Politics Behind Performance Appraisals

Inflation

1. To maximize merit increase for subordinates

2. To avoid hanging out dirty laundry

3. to give the subordinate a break, hoping for improved performance

4. to avoid a written permanent record or poor performance as part of subordinates file (TD example)

5. to promote a subordinate “up and out” for poor performance or lack of fit

Deflation

1. To shock subordinate to higher performance

2. to teach a rebellious subordinate a lesson (who’s in charge)

3. to send a message that he/she should be leaving the organization

4. to build a strong documented record to speed up the termination process

What your boss is really saying

1. You are doing fine

• I have no idea what to tell you. There are things I could bring up, but I don’t have the guts to do it.

2. Some aspects of your performance need attention

• I’m really pissed at lots of stuff you do, but I’m trying to be even about it so you don’t get in my face and spoil my muffin

3. I’m very dissatisfied with certain things

• You’re about to be fired, but I’m giving you a chance to react in a positive way

4. I hope you take this the right way

• I am going to hurt you now and really enjoy it

5. You need to take more initiative

• I would like you to do more of my job for me so I can take a nap every afternoon

6. You don’t communicate as well as you should

• I don’t communicate as well as I should. You have to take the initiative with me.

7. Keep up the good work

• I have nothing more to say, and I want you to like me. Now, get out of here. Please.

Mod 4: Compensation & Benefits

Pick a Starting Salary

• Reaching the end of a job interview, the Human Resources Person asked the young MBA fresh out of MIT, “And what starting salary were you looking for?”

  • The candidate said, “In the neighbourhood of $125,000 a year, depending on the benefits package.”

• The HR person said, “Well, what would you say to a package of 5-weeks vacation, 14 paid holidays, full medical and dental, a company-matching retirement fund to 50% of salary, and a company car leased every 2 years - say, a red Corvette?”

  • The engineer sat up straight and said, “Wow!!! Are you kidding?”

• and the HR person said, “Certainly… but you started it”

Compensation: Questions

Questions about compensation

• How much should employees be paid?

• What is the right pay mix (in other words, base, bonus, benefits)?

• Should the compensation package include group performance?

• How much emphasis should be placed on keeping pay rates low?

• Do you always match market pay?

Discussion Question: How do you negotiate your starting salary?

What is compensation?

What is compensation?

• Financial returns employees receive as part of the employment relationship

• Creates a willingness among qualified persons to join and do the things needed by an organization

How do we get people to do what we need them to do?

• Extrinsic rewards

  • Factors that satisfy basic human needs for survival and security, as well as social needs for recognition

• Intrinsic rewards

  • Factors that satisfy higher order needs for self-esteem, achievement, growth and development

• Reward system

  • A mix of extrinsic and intrinsic rewards provided to organizational members

Goals of compensation

goals of compensation

effective compensation systems:

• attract potential employees to join

• retain existing employees

• motivate employees to higher productivity

Compensation: Equity Concerns

1. External equity

• alignment (& perceived fairness) of pay relative to the external marketplace

2. Internal equity

• alignment (& perceived fairness) of pay relative to the pay of others within the organization

Total compensation package (compensation mix)

1. base pay

• foundation pay for most employees

2. performance (variable) pay

• designed to reward performance (individual, team, organizational)

• ex// merit pay, incentive pay

3. indirect pay (benefits)

• non-cash items or services to satisfy employee needs

• ex// pensions, vacation, education reimbursement

total compensation = base + performance + indirect

cash compensation = based + performance —> (cash you “take-home”)

Types of compensation (base, performance, benefits)

Compensation: base, performance, benefits

• salary

• wages

• pay for time off

• stock options

• incentives

• health & dental care

• health spending accounts (HSA)

• merit pay

• protection programs

• employee services

• pension

• cost of living adjustment (COLA)

Methods for establishing base pay

1. job evaluation

• ranking jobs according to value to the firm

• points system (“compensable factors”)

2. market pricing

• minimum amount necessary to attract qualified individuals

3. pay for knowledge (skill-based or person-based pay)

• based on skills and competencies acquired

Compensable Factors

Compensable Factors

1. job inputs (KSAOs)

• knowledge (education)

• skills (computer, languages)

• abilities (cognitive, psychomotor)

• other attributes (experience)

2. job requirements (effort)

• mental and physical

3. job outputs (responsibility)

• accountability (ex// # of direct reports), work outcome (quality, mistakes)

4. job conditions

• indoors and outdoors, exposure to extremities, etc.

Factors affecting compensation

1. legislation

• minimum wage legislation

• pay equity (equal pay for work of equal value)

2. labour market constraints

• supply and demand of particular occupational groups

3. product/service market

• nature of product or service which organization competes in

• ex// top research scientists for pharmaceutical industry

4. financial constraints

• ability to pay

5. industry, union, sector

Compensation: Benefits (non-financial, indirect)

Reasons for providing benefits:

• improve employee satisfaction

• meet employee health and security requirements

• attract and motivate employees

• reduce turnover (ex// staff products)

• maintain favourable competitive advantage

• compliance with the law

Compensation: Benefits - Flexible benefit plans (cafeteria)

Flexible Benefit Plans (Cafeteria)

• individuals can choose the benefits that best suit them

• tailor to meet employee changing needs (new family, old age)

• cost control (allow employees to buy additional benefits)

• greater employee satisfaction (understand cost and benefits)

• poor choice on part of employee can result in lower satisfaction

• cost with administering a cafeteria plan

Compensation: government-mandated benefits

• Canada Pension Plan

• Employment Insurance (min. 19 to max. 50 weeks)

• Provincial Medical Plan

• Vacation and vacation pay in lieu (varies by province)

• Workers’ compensation (loss of income due to work injuries)

Compensation Strategies (Policy)

1. Lead

• paying above the average compensation levels in a given market

• to compete for talent, make up for inadequate working conditions, tight labour market, skilled workers

2. Match

• paying at average compensation levels in a given market

• no difficulty in filling position

3. Lag

• paying below average compensation levels in a given market

• financial constraints (ex// WestJet)

Secret Pay vs Open Pay

Secret Pay

• equity sensitivity (perception of fairness)

• knowledge of pay predicts pay satisfaction more than actual pay received

Open Pay

• open communication facilitating trust (perception of fairness)

• can be motivating for performance pay

Compensation: what will you do if you are not happy with your reward?

What will you do if you are not happy with your reward?

• increase effort/performance

• organizational withdrawal (find more rewarding job)

• acquire illicit rewards (stealing, counter-productive behaviour)

• demand higher pay (how?)

• demand reduced job duties

• reduce effort/performance (increased absenteeism)

• find less demanding job

Compensation Research

background

• a company (in Israel) had lost 2 large contracts

• In lieu of layoffs, company made temporary pay cuts of 15% in 2 manufacturing plants

research question

• would employees perceive the pay cut as unfair and seek to redress via theft?

• would the nature of the reason provided for the pay cut influence the degree of theft that would occur?

rationale given for paycut…

• In the 2 plants getting pay cut, the explanation for the pay cut varied:

1. Plant A: Adequate explanation

• rationale for cut, management showed remorse

2. Plant B: Inadequate explanation

• rationale was minimal, no remorse

3. Plant C: Control plant

• plant owned by the same company and no cut was necessary

Data collected every 2 weeks, for 30 weeks

• 10 weeks before, during and after pay cut (pre-post test)

• theft measured as shrinkage (% unaccounted for by known usage, ex// sales)

research findings

• increase theft during the underpayment period

  • moderated by the adequacy of explanation

  • less theft when decision is not biased, provided adequate explanation, management sensitive to employees

• conclusion

  • fairness re pay cuts has a significant influence on employees’ negative reactions toward pay cuts

It’s all about the money

• one day an employee sends a letter to his boss asking for an increase in his salary

  • Dear Bo,

    • In thi$ life, we all need $ome thing mo$t de$perately. I think you $hould be under$tanding of the need$ of u$ worker$ who have given $o much $upport including $weat and $ervice to your company. I am $ure you will gue what I mean and re$pond $oon.

    • Your$ $incerely, $asha

• The next day, the employee received this letter of reply:

  • Dear Sasha,

    • I kNOw you have been working very hard. NOwadays, NOthing much has changed. You must have NOticed that our company is NOt doing NOticeably well as yet. NOw the newspaper are saying the world`s leading ecoNOmists are NOt sure if the United States may remain in recession for aNOther year. I have NOthing more to add NOw. You kNOw what I mean.

    • Yours truly, Manager

In-class Exercise (Tug-of-War)

In your group (everyone with the same coloured sheet as yours), discuss the following questions:

1. How would you feel as the agent in your scenario?

2. What steps would you take to solve the dilemma?

3. What recommendations would you recommend to the organization to prevent other people from finding themselves in such a predicament?

• Now, find someone with a different coloured sheet as yours and discuss the same questions

Debrief:

1. Describe the feelings of the two different agents

2. What recommendations would you make to alleviate the conflicts between individual and team performance (Be sure to relate your answer to compensation systems)

3. Have you found yourselves in similar job situation?

Mod 5: International Human Resource Management (HRM)

International HRM: Human Resource Planning

domestic function

• projecting HR supply

• forecasting HR needs

• identifying the number and kinds of staffing to fill positions

international function

• preparation (identifying, selecting, preparing)

• repatriation

International Business Trends

• Globalization and trade blocks

Top Trading Partners: with Canada

1. US

2. China

3. UK (Post-Brexit)

4. Mexico

5. Japan

6. Germany

7. South Korea

• MNCs expansion to Eastern Europe, Asia, Africa

• 66% of MNEs confirmed use of expatriate assignments will continue (National Trade Council/Windham International)

What happens without trade?

• CGTN video (propaganda about China company)

  • Shows that everything in day-to-day life is made in China

• video of a boy showing how every product he owns and uses in his daily life is “Made in China”

Hofstede’s Dimensions

Hofstede’s Cultural Relativity

1. Power Distance

2. Individualism vs. Collectivism

3. Masculinity vs. Femininity

4. Uncertainty Avoidance

5. Long-Term Orientation (Confucian Dynamism)

Hofstede’s Dimensions - 1. Power Distance

• The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally

Power Distance at Work

• Hierarchy

• Centralization

• Salary range

• Participation

• Ideal boss

• Privilege & status symbol

ex// Low power distance: (fact check)

• Canada

• US

Hofstede’s Dimensions - 2. Individualism vs. Collectivism

• individualist societies

  • ties are loose, and everyone looks out for himself or herself

  • ex// Countries: US, Canada, Germany, France, Netherlands

• collectivist societies

  • people integrated into strong, cohesive groups; protection is exchanged for loyalty

  • ex// Indonesia, West Africa, People’s Republic of China (PRC), Hong Kong

(middle: Japan, Russia)

Individualism vs. Collectivism at Work

• Employee-employer relationship

• Hiring and promotion decisions

• Managerial focus

• Task vs. relationship priority

Hofstede’s Dimensions - 3. Masculinity vs. Femininity

• Masculine societies

  • Social gender roles are distinct (men focus on material success; women on quality of life)

• Feminine societies

  • Social gender roles overlap (both quality of life)

Masculinity vs. Femininity at Work

• Centrality of work

• Ways of managing & decision-making

• Femininity: equality, solidarity, quality of work life

• Masculinity: equity, compete, performance

• Conflict resolution

Hofstede’s Dimensions - 4. Uncertainty Avoidance

• The extent to which members of a culture feel threatened by uncertain or unknown situations

• NOT the same as risk avoidance

• Presence of rules

Uncertainty Avoidance at Work

• Necessity of rules

• Time orientation

• Precision & punctuality

• Interpretation of “What is different…”

• Appropriateness of emotional display

Hofstede’s Dimensions - 5. Long-Term (time) Orientation (Confucian Dynamism)

Long-term Orientation (Confucian Dynamism)

• The ‘newest’ dimension

• Emphasis on long-term vs. short-term orientation

• Truth vs. virtue: what one believes vs. what one does

Short-term orientation

• Social pressure to “keep up with the Joneses”

• Small savings

• Expect quick results

• Concern with possessing Truth

Long-term orientation

• Thrift: being sparing with resources

• Large savings

• Perseverance toward slow results

• Concern with respecting the demands of Virtue

Strategic International Staffing: Staffing Strategies

Staffing Strategies

• Parent Country Nationals (PCN)

  • initial expansion

  • foreign subsidiary management (senior levels)

• Host Country Nationals (HCN)

  • local requirements, technical/cultural expertise (lack)

  • Limited HQ experience, control issue

• Third Country National (TCN)

  • cross-culturally competent, proven track record

  • network and supply of TCNs

Expatriate Assignments

Expatriate Assignments

Types of Assignments

• business development/negotiations

• technical competence

• troubleshooter

• country head/manager

Importance

• foreign subsidiary management

• organizational learning (market, customers, culture)

• control (philosophy, processes, control)

• management development tool

Expatriate Failures

What is expatriate failure?

• inability of expatriate to perform effectively in a foreign country

• early departure, recall, incomplete/failed assignments

1980s (Tung 1981)

• 16-40% terminated pre-maturely

• 30-50% ineffective

1990s (Swaak 1995, Martinko & Douglas 1999)

• 25-40% failed

2000s (Harzing 2002, Harzing & Christensen 2004)

• 20-40%

Strategic Staffing: Why Expatriate Assignments Fail?

Why Expatriate Assignments Fail?

Top 7 Reasons

1. inability of spouse to adjust cross-culturally

2. inability of manager to adjust cross-culturally

3. other family-related problems

4. manager’s personality/emotional problems

5. manager’s inability to cope with responsibilities

6. manager’s lack of technical competence

7. manager’s lack of motivation to work overseas

Strategic Staffing: Financial and Emotional Cost of Expatriate Failure

Financial and Emotional Cost of Expatriate Failure

Cost of Expatriate Assignment

• typically 2-5X cost of expatriate salary for training, housing, cost of living allowance (COLA), schools, and taxes

• translates into USD 600K-1M for an executive with basic compensation of USD 200K (NTC/Windham Survey)

Intangible costs

• lost business opportunities

• damaged company reputation

• weakened relationships with foreign partner/government

• expatriates’ career (emotion, self-esteem)

Cost of Living Survey (Mercer)

Big McCurrency and the Cost of a Burger

Cross-Cultural Effectiveness

• general adjustment

  • general living in the host country

• interaction adjustment

  • ability to interact with HCNs (host country nationals)

• work adjustment

  • ability to carry out duties and perform in the host country

Strategic Staffing: Enhancing Expatriate Success

Enhancing Expatriate Success

Recruitment and Selection

• identifying candidates who are willing and able to go (Big 5)

• develop candidates

• local laws (ex// “Gaijin” in Japan)

Training

• language skills

• cross-cultural competency, sensitivity training

• assigning mentor

Compensation

• salary, goods & services, housing, taxes, education, shipping of personal effects

• home-based policy, host-based policy, currency

• COLA, isolation/hardship pay

Length of Assignment

• long enough to accomplish goal/attain proficiency but not “go local”

Malcolm in the Middle: In-class Exercise

1. What are the most important concerns for your family?

2. What information would you need to make a decision?

3. What can your employer do to make the transition easier: (1) to go alone, (2) with the whole family

4. What can the employer do to enhance the success of the your assignment abroad?

Mod 6: Employment Standards & Employee Relations/Rights

Employment Standards Act (2000)

Purpose

• provides the minimum standards for most employees working in Ontario

• sets out the rights and responsibilities of employees and employers in ON workplaces

Covers

• hours of work, rest

• wages

• overtime pay

• pregnancy/parental leave

• sick leave

• family/bereavement leave

• vacation

• public holidays

• termination and layoffs

• severance

• equal pay for equal work

Employment Standards Act (2000): More Details

minimum wage rates

• general: $17.60/hr (incl. liquour servers)

• students (<18): $16.60/hr