Critical Success Factors

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Planning
Organizing
Critical Success Factors
Stakeholders
Marketing
Economic
Top Management
INTERNAL
Vision
Operations
Finance
EXTERNAL
Social
Political
Mission
Human Resources
Technological
Strategy
Middle Management
First-Line Management
Controlling
Directing
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Human Resources

• Set of activities directed at attracting,
  developing, and maintaining an effective
  workforce
• Strategic Importance
• Critical for organizational functioning
• Effectiveness of HR has substantial impact on
  bottom-line performance
• Inefficiencies due to poor hiring, firing,
  training
• Poor attraction, retention, motivation of good
  employees
• Legal issues/challenges can be embarrassing and
  expensive

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Legal Context

• Charter of Rights and Freedoms (contained in
  Constitution Act of 1982)
• Human Rights Legislation
• Canadian Human Rights Act
• Employment Equity Act
• Occupational Health and Safety Act
• WHMIS (Workplace Hazardous Materials Information
  System)
• FIPPA (Freedom of Information and Protection of
  Personal Privacy Act) PIPEDA (Personal
  Information Protection and Electronic Documents
  Act)

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Human Resources

• Responsibilities
• forecasting human resource needs/planning
• recruiting potential candidates
• selecting the best available
• training and developing
• encouraging high performance
• performance ability x motivation
• performance evaluation
• compensation
• union/management relations

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Human Resources
Organizational Goals Objectives Planning Job
Analysis Human Resource Planning Staffing Recruit
ment Selection
Employee Maintenance Compensation Benefits Health
Safety Labour Relations
Employee Development Induction/Orientation Trainin
g/Development Performance Appraisal Career
Planning
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Planning

• 1st need to do a Job Analysis (what job entails
  and critical skills needed)
• Job description -
• Job specification -

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• Forecasting/Planning - Steps
• project future demand
• project future supply
• determine net needs/gap
• develop plan...
• evaluate and make changes

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• Human Resource Plan
• Shortage Options
• use resources better
• decrease requirements
• change plans
• subcontract - outsourcing
• capital vs. people
• hire

• CHOICE

• Surplus Options
• -

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Recruitment

• Sources
• from within -
• employment agencies
• college recruitment
• trade union/professional association
• advertisements
• professional contacts
• unsolicited applications

• CHOICE
• KEY?

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Selection

• must 1st consider 3 factors in designing
  selection procedures
• 1. Human Rights Legislation
• 2. Validity - use measures that measure what they
  are supposed to
• degree to which method correctly predicts
  performance
• 3 types
• criterion validity
• content validity
• construct validity
• 3. Reliability - consistent over time

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• Validity
• criterion
• content
• construct
• the selection method (predictor) measures the
  extent to which a job candidate possesses the
  required ability, aptitude, and qualities
  (constructs) necessary for successful performance
  on the job (criterion)

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• Validation Process - Criterion Validity
• Predictive Concurrent
• administer the selection procedure to a group of
  people and correlate(compare) the
  results/predictor scores with performance/criterio
  n scores
• look for valid predictors
• difference is in who administered to and
  implications

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Reliability

• cant be valid unless it is reliable
• degree of consistency over time
• measure by administering same test to same people
  at two different times and comparing scores
• internal consistency - put different items on
  test that are supposed to measure same thing

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• Selection Methods
• use least costly methods first (application form,
  screening interview, second interview, reference
  check
• Application Forms
• -
• - questions cant violate Human Rights
  Legislation
• Weighted Application Blank - give weights to
  different answers based on predictive ability

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Selection - Interviews

• Pros
• see person and appraise directly
• Cons - poor predictor of success
• develop bias early - negatives more influential
• lack of training
• halo effect
• central tendency, leniency errors, strictness
  errors

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• Solution

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Testing

• performance (ability), intelligence, personality,
  interest
• 1. Ability/Aptitude
• - demonstration of skill, written test, job
  sample
• - intelligence tests could be biased
• - difficult to test for professional jobs
• - use Assessment Centres (observe behaviour)
• - better than interview and testing
• - costly

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• 2. Personality
• -
• 2 types
• 1. self-report
• 2. projective -
• 3. Interest Inventories
• - help predict if interest needed to stay exists
• - can be easily faked
• - used for placement and career counselling

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Training Development

• Training
• Orientation
• realistic job preview
• Skills training - necessary to perform to
  standard
• on-the-job
• off-the-job
• Development
• focuses on the future - acquire background and
  skills need to continue to be successful - take
  beyond standard
• more education than skills oriented

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Compensation

• three objectives
• External Equity
• Wage Survey establishes Base Rate
• adjust wrt economy, nature of company and
  industry, and nature of job
• Internal Equity
• Job Evaluation

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• Job Evaluation steps
• Job Analysis
• develop list of factors to rate jobs on
• factors that the organization feels are important
  to reward through pay differences
• rate jobs
• Point Method
• assign pay based on relative value
• Price the Pay Structure
• Factors - Point Method
• universal factors
• Skill, Effort, Responsibility, Job Conditions
• subfactors, degrees, point values, pay grades

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• Pricing the Pay Structure...

Trend Line



Pay Rates




Range











Pay Grades / Job Evaluation Points
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• Pay Equity legislation
• NOT Equal Pay for Equal Work
• prohibits paying different wages to employees who
  work for the same firm and who perform jobs that
  are different but of comparable worth to company
• ends wage discrimination in jobs where few men
  with which to make comparisons for equal pay

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Performance-based Compensation

• Merit Pay Plans
• Merit pay
• Skill- and Knowledge-based pay
• Incentive Compensation systems
• incentive pay plans

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Team Group Incentive Systems

• gainsharing
• group or division-based
• performance increases
• paid as earned, not added to base salary
• profit sharing
• organization-wide incentive

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Performance Evaluation

• Performance appraisal
• evaluating employee performance
• assessing effectiveness of recruitment and
  selection
• Process
• Gathering information
• Providing feedback

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Methods for Appraising Performance

• Ranking
• Simple ranking - rank members of work group
• Forced distribution forced grouping of
  employees
• Example 10 must be ranked poor
• Effect on motivation?
• Rating
• Easy to develop
• Critical incident method especially good or bad
  incidents
• Pro
• Con