HRM Post MT Exam Review

Chapter 7: Training & Development

  • Training
  • Focuses on short-term performance improvement. It addresses immediate skill gaps or knowledge deficiencies to enhance current job performance.
  • Development
  • Aimed at long-term growth and preparing individuals for future responsibilities within the organization. It focuses on broadening skills, knowledge, abilities, and other attributes (KSAOs).
  • Orientation
  • Definition: Formal process to familiarize new employees with the organization, their roles, and work units.
  • Purpose: To provide understanding of what, how, and why certain tasks are performed within the organization.
  • Onboarding
  • Definition: Socialization process for new employees to integrate them into the organization's culture, norms, and expectations.
  • Purpose: Helps new hires quickly become accustomed to their roles and the organization's environment.
  • Strategic Model of Training
  • Phase 1: Needs Assessment
    • Organization Analysis: Assessing the organization's training needs and determining if training is appropriate.
    • Task Analysis: Identifying key tasks and the associated KSAOs that training should address.
    • Person Analysis: Identifying which individuals within the organization require training.
  • Phase 2: Training Design Requirements
    • Objective/Outcome: Clearly defined goals for the training program.
    • Trainee Readiness/Motivation: Ensuring participants are ready and motivated to learn.
    • Principles of Learning: Utilizing effective methods based on how people learn.
    • Delivery: Determining the most suitable method(s) for delivering the training.
  • Phase 3: Implementation
    • Various methods of training delivery, such as on-the-job training, simulations, e-learning, coaching, etc.
  • Phase 4: Evaluation
    • Reactions: Assessing participants' reactions to the training.
    • Learning: Measuring the extent to which participants have acquired new knowledge and skills.
    • Behavior (Transfer of training): Evaluating if participants apply their learning to their jobs.
    • Results (ROI): Assessing the overall impact of the training on organizational goals and performance.

Chapter 8: Performance Management

  • Rating Errors
    • Recency Error (Temporal Error): Placing undue emphasis on recent performance rather than considering overall performance.
    • Contrast Error: Comparing an employee's performance to that of others rather than evaluating it against established criteria.
    • Similar-to-me Error: Favoring employees who are similar to the evaluator in terms of background or characteristics.
    • Central Tendency Error: Rating all employees as average, avoiding extremes.
    • Leniency/Strictness Error: Consistently rating all employees either too high (leniency) or too low (strictness).
    • Forced Distribution: Requiring ratings to fit a predetermined distribution, regardless of actual performance.
  • Performance Management
    • Definition: Creating a work environment that enables employees to perform to their best abilities.
    • Performance Review (Appraisal/Evaluation): Assessing an employee's performance against job requirements and using this information for improvement.
    • Purposes: Administrative (e.g., promotions, compensation) and Developmental (identifying areas for improvement).
    • Establishing Performance Standards: Defining clear expectations for performance.
    • Strategic Relevance: Aligning performance with organizational goals.
    • Criterion Deficiency: When important aspects of performance are not assessed.
    • Criterion Contamination: When irrelevant factors influence performance evaluations.
    • Reliability: Consistency and accuracy of performance measurements.
  • Performance Review Methods
    • Trait-Based:
      • Essay: Narrative evaluation of employee traits and performance.
      • Forced Choice: Requires the evaluator to select statements that best describe the employee from a set of options.
      • Graphic Rating Scale: Rating employee traits or behaviors on a numerical scale.
      • Mixed-Standard Scale: Comparing employee performance to predetermined standards (better, equal, or worse than).
  • Behavioral-Based:
    • Critical Incidents: Documenting specific behaviors that illustrate exceptional or poor performance.
    • Behavioral Checklist: Evaluating employee behavior based on a list of predefined criteria.
    • Behavioral Anchored Rating Scale (BARS): Assessing employee performance based on specific behavioral examples representing various performance levels.
    • Behavioral Observation Scale: Measuring the frequency of specific behaviors over a period.
  • Result Measures
    • Productivity Measures: Quantitative assessments of employee output or efficiency.
    • Management by Objectives (MBO): Setting specific, measurable goals that align with organizational objectives.
    • Balanced Scorecard: Evaluating performance across multiple dimensions such as customer satisfaction, learning and growth, financial performance, and internal processes.

Chapter 9: Managing Compensation

  • Strategic Compensation
    • Definition: Aligning compensation practices with the organization's mission and objectives to attract, retain, and motivate employees effectively.
  • Total Rewards
    • Direct Compensation: Monetary rewards; salaries, wages, bonuses, commissions.
    • Indirect Compensation: Non-monetary benefits provided to employees, including healthcare, retirement plans, and other perks.
    • Nonfinancial Compensation: Intangible rewards such as career development opportunities, recognition, and work-life balance initiatives.
  • Equity Theory
    • Definition: The perception that the compensation received is equal to the value of the work performed, influencing employee satisfaction and motivation.
  • Expectancy Theory
    • Definition: The belief that employees will exert greater effort if they believe their effort will result in a reward they value.
  • Escalator Clauses
    • Definition: Clauses in collective agreements that provide for quarterly cost-of-living adjustments in wages, based on changes in the Consumer Price Index (CPI).
  • Real Wages
    • Definition: Wage increases that surpass the rise of the Consumer Price Index, ensuring employees' purchasing power increases over time.
  • Job Evaluation
    • Definition: Assessing the relative worth of jobs within an organization to establish appropriate compensation levels.
      • Job Ranking System: Ranking jobs based on their responsibilities, duties, and importance within the organization.
      • Job Classification System: Grouping jobs based on factors such as job responsibility, skill, knowledge, and ability.
      • Point System: Assigning points to various job factors to determine the value of each job.
      • Hays Profile: A method focusing on executive roles, evaluating factors such as knowledge, mental activity, and accountability.
  • Wage-Rate Compression
    • Definition: Occurs when new, less experienced employees earn as much or more than experienced, high-skilled employees, leading to issues of fairness & morale.
  • Pay Transparency
    • Definition: The practice of making employees aware of what other employees in the organization are earning, promoting transparency and fairness in compensation practices.

Chapter 10: Incentive Rewards

  • Group Incentive Plans
    • Team Incentive Plan: Rewards teams for achieving specific goals or targets collectively.
    • Gainsharing Plan: Shares cost savings or productivity gains with employees, typically based on predetermined performance measures.
  • Organization-Wide Plans
    • Profit Sharing: Distributes a portion of the organization's profits to employees.
    • Employee Stock Ownership: Provides employees with ownership stakes in the company through stock options or grants.
  • Incentive Pay
    • Definition: A compensation strategy that acknowledges performance variations among employees in the same job.
  • Variable Pay
    • Definition: Linking pay to individual, group, or organizational performance measures, offering flexibility in compensation structures.
  • Individual Incentive Plans
    • Straight Piecework: Employees receive a fixed payment for each unit of output produced.
    • Differential Piecework: Pay rate per unit increases with higher levels of output.
    • Bonus: One-time payment for achieving specific performance targets/outcomes.
    • Merit Pay: Permanent salary increases based on individual performance assessments.
    • Standard Hour Plan: Pays a fixed rate per hour above a predetermined standard output.
    • Spot Bonus: Immediate reward for exceptional performance or contributions.
    • Perks: Non-monetary benefits or privileges provided to employees as incentives.

Chapter 11: Employee Benefits

  • Flexible Benefit Plans
    • Definition: Allow employees to select the benefits that align with their individual needs and preferences.
    • Cafeteria Plans: Employees are provided with a set number of credits to allocate towards the benefits they require.
  • Legally Required Benefits
    • Canada Pension Plan (CPP): Provides contributors and their families with partial replacement of earnings in the case of retirement, disability, or death.
    • Employment Insurance (EI): Provides temporary financial assistance to unemployed workers who have lost their jobs through no fault of their own.
    • Workers' Compensation Insurance: Provides benefits to employees who suffer work-related injuries or illnesses.
    • Statutory Holidays, Vacation Days: Mandated paid time off for employees, typically based on government regulations.
    • Leaves of Absence and Sick Days: Legal entitlements for employees to take time off work due to various reasons, including illness or family emergencies.
    • Termination and Severance Pay: Legal requirements for employers to provide compensation to employees upon termination or layoff.
  • Discretionary Benefits
    • Healthcare: Medical, dental, and vision coverage provided to employees.
    • Time Off Above Minimum Requirements: Additional paid time off beyond legally mandated allowances.
    • Life Insurance: Provides a financial benefit to beneficiaries upon the death of the insured employee.
    • Severance Pay: Additional compensation provided to employees upon termination, typically based on years of service.
    • Employee Assistance Program (EAP): Offers counseling and support services to employees facing personal or work-related challenges.
    • Child/Elder Care Benefits: Assistance with childcare or eldercare expenses, such as subsidies or referral services

Chapter 12: Occupational Health & Safety

  • Occupational Injury
    • Definition: Physical harm resulting from a workplace accident, such as cuts, fractures, or sprains.
  • Occupational Illness
    • Definition: A condition or disorder caused by exposure to environmental factors in the workplace.
  • Responsibilities for Health & Safety at Work
    • Employers: Responsible for providing a safe working environment, including training, equipment, and hazard identification.
    • Managers: Ensuring that health and safety policies and procedures are implemented and followed within their areas of responsibility.
    • Employees: Obligated to follow safety protocols, report hazards, and participate in safety training.
    • Joint Health & Safety Committees: Formed to represent both employers and employees in identifying and addressing health and safety concerns in the workplace.
  • Workers' Compensation
    • Purpose: Provides financial assistance and support to employees who suffer work-related injuries or illnesses.
    • Goal: Facilitate the employee's return to work as soon as possible following an injury or illness.
  • Ergonomics
    • Definition: The science of designing jobs, equipment, and workplaces to fit the capabilities/limitations of workers, enhancing safety, comfort, & performance.
  • Stress and Job-Related Stress
    • Stress: The body's response to challenging or threatening situations.
    • Distress: Negative stress that can result in physical or psychological harm.
    • Eustress: Positive stress resulting from challenging or exciting situations.
    • Job-Related Stress: Arises from factors such as high demand, high effort, low control, and low reward in the workplace.

Chapter 13: Employee Rights & Discipline

  • Legal Frameworks
    • Common Law: Legal principles established through court decisions and judicial precedent.
    • Implied Contract: Agreements inferred from actions, behaviors, or circumstances rather than explicitly stated.
    • Statutory Regulation: Laws enacted by legislative bodies governing various aspects of employment.
  • Legal Entitlements
    • Human Rights: Protection against discrimination based on characteristics such as race, gender, religion, or disability.
    • Employment Equity: Promoting equal opportunities and fair treatment in the workplace.
    • Employment Standards: Regulations concerning wages, hours of work, overtime pay, and other minimum employment conditions.
  • Collective Bargaining and Labour Arbitration
    • Collective Bargaining Legislation: Laws governing the negotiation of employment terms and conditions between employers and unions.
    • Making Changes to the Employment Contract: Legal considerations and processes for modifying employment agreements.
  • Dismissals
    • Constructive Dismissal: When an employer makes fundamental changes to the employment contract without the employee's consent, leading to the employee's resignation.
    • Summary/Causal Dismissal: Immediate termination of employment due to serious misconduct or breach of contract.
    • Wrongful Dismissal: Unfair or unlawful termination of employment, often resulting in legal action.
  • Discipline
    • Progressive Discipline: Graduated disciplinary measures aimed at correcting employee behavior.
    • Nonpunitive Discipline: Focuses on coaching, mentoring, and problem-solving rather than punishment.
  • Personal Information Protection and Electronic Documents Act (PIPEDA)
    • Definition: Canadian legislation governing the collection, use, and disclosure of personal information by private sector organizations.
  • Dispute Resolution Procedures
    • Step-Review: Sequential review process for addressing employee grievances within the organization.
    • Peer-Review: Involves colleagues or peers in resolving workplace disputes or conflicts.
    • Open-Door Policy: Encourages employees to raise concerns or grievances directly with management.
    • Ombudsperson: Neutral third party appointed to investigate and resolve disputes impartially.
  • Third-Party Dispute Resolution
    • Mediation: Facilitated negotiation process involving a neutral mediator to help parties reach a mutually acceptable resolution.
    • Arbitration: Binding resolution of disputes by a neutral arbitrator, whose decision is legally enforceable.

Chapter 14: Labour Relations

  • Legislation
    • The Industrial Relations Disputes and Investigation Act (1948): Canadian legislation governing industrial relations and dispute resolution.
  • Union Terms
    • Union Shop: Provision in a collective agreement requiring employees to join the union as a condition of employment.
    • Union (Shop) Steward: Unpaid union official representing members' interests in dealings with management.
    • Business Agent: Paid labor official responsible for negotiating and administering the collective agreement and addressing union members' issues.
  • Types of Unions
    • Craft Unions: Represent skilled craft workers.
    • Industrial Unions: Represent all workers within an industry.
    • Employee Associations: Represent professional and white-collar employees in labor-management relations.
  • The Collective Agreement
    • Definition: Contract between an employer and a union outlining terms of employment.
  • Collective Bargaining Process
    • Definition: Negotiation process between employers and unions to reach a collective agreement.
  • Bargaining Power
    • Definition: Ability of labor and management to influence outcomes through economic, social, or political means.
    • Union Tactics: Strike, picketing, boycotts.
    • Employer Tactics: Lockouts, plant closures, hiring replacement workers.
  • Interest-Based Bargaining
    • Definition: Negotiation approach focusing on mutual interests rather than opposing positions.
  • Arbitration
    • Compulsory Binding Arbitration: Resolution of bargaining deadlocks by a neutral third party.
    • Final Offer Arbitration: Arbitrator selects one of the final offers submitted by either party.
    • Mediation: Facilitated negotiation process to assist parties in reaching an agreement.
    • Arbitrator: Neutral third party responsible for resolving disputes and issuing binding arbitration awards.

Chapter 15: International Human Resource Management

  • Types of International Corporations
    • International Corporation: Domestic firm expanding into overseas markets using existing capabilities.
    • Multidomestic Corporation: Firm with independent business units operating in multiple countries.
    • Global Corporation: Firm with integrated worldwide operations managed from a centralized home office.
    • Transnational Corporation: Balances local needs on a global scale using specialized operating units.
  • Types of International Employees
    • Expatriates (Home-Country Nationals): Employees from the home country on international assignments.
    • Host-Country Nationals: Employees from the country where the international assignment is located.
    • Third-Country Nationals: Employees from a country other than the home or host country.
  • Recruitment
    • Methods: Work permits, guest worker programs, apprenticeships.
  • Selection
    • Considerations: Formation of transnational teams, common reasons for expatriate assignment failure.
  • Training
    • Essential Training: Language skills, cultural awareness, career development, managing personal and family life abroad, repatriation assistance.
  • Compensation
    • Approaches: Home-based pay (based on home country standards), split pay (combination of home and host country pay), balance sheet approach (ensuring expatriates' purchasing power remains consistent across locations).