Managing Human Resources and Labour Relations

To ensure the best hire, managers use various selection methods, such as application forms, behavior-based interviews, reference checks, and specialized tests (like assessment centers or video assessments).

Exam Tip: Remember that recruitment is about attracting candidates, whereas selection is about filtering and choosing them.

Developing Employee Capabilities

Hiring is only the beginning. To remain competitive, organizations must invest in training and development.

Training Methods

Training can be categorized by where it takes place:

• On-the-job training: Employees learn new skills while actually performing their work tasks. This often includes systematic job rotations or transfers to provide a broader view of the company.
• Off-the-job training: Training occurs away from the immediate workspace. An example is vestibule training, which uses simulations (like flight simulators for pilots) to mimic the real environment.

Advanced Development

As employees grow, organizations focus on management development training, which might include lectures, networking, or mentoring. A modern trend is reverse mentoring, where younger employees help train senior leaders in areas like new technology or social media. Additionally, team building programs are used to increase cooperation through group-based exercises.

Evaluating Performance

To ensure employees are meeting organizational standards, managers conduct a performance appraisal—a formal evaluation of an employee's work. This evaluation can come from supervisors, self-evaluations, or even customer feedback.

Once the appraisal is complete, performance feedback must be provided to help the employee improve. There are several methods used to conduct these appraisals:

• Ranking Methods: These involve comparing employees against one another. Examples include the Simple Ranking Method or the Forced Distribution Method.
• Rating Methods: These evaluate an individual against a set of standards. Common tools include the Graphic Rating Scale or the Critical Incident Method, which highlights specific good or bad performances to guide improvement.

Compensation, Benefits, and the Legal Context

A major part of HRM is managing compensation and benefits. Basic compensation includes wages and salaries. To motivate staff, companies may use performance-based compensation, such as individual incentives (bonuses, piece-rate plans) or team incentives (profit-sharing). Beyond pay, benefits—such as paid time off, wellness programs, or mandated protection plans like the Canada Pension Plan—are essential for attracting and keeping workers.

All these activities must exist within a strict legal context. In Canada, laws like the Canadian Human Rights Act and the Employment Equity Act protect against discrimination and promote equity for women, Indigenous Peoples, racialized groups, and people with disabilities. Managers must also ensure a safe workplace free from sexual harassment and adhere to health and safety regulations.

Working with Organized Labour

Finally, HRM involves managing relationships with labour unions—groups of workers who join together to achieve job-related goals. The primary way unions and management interact is through collective bargaining, a negotiation process to determine terms like pay, hours, and working conditions.

When negotiations reach an impasse (a deadlock), different tactics may be used:

• Union Tactics: Strikes, picketing, or boycotts.
• Management Tactics: Lockouts or hiring "scabs" (strike-breakers).

To resolve these conflicts, neutral third parties may step in through conciliation (clarifying issues), mediation (suggesting a resolution), or arbitration (imposing a legally binding solution).