Question

In: Operations Management

PQ1 is in context to Company Tesla. PQ1: How can HR professionals demonstrate that they add...

PQ1 is in context to Company Tesla.
PQ1: How can HR professionals demonstrate that they add value to a company’s bottom line (productivity/profitability)?
PQ2: What are possible consequences of using poor or outdated recruitment and selection practices? List at least 6 such practices and how they can be eliminated and/or improved. Back your argument with strong justification.
PQ3: Discuss the impact that current socio-economic conditions are having on recruitment and selection practices. Visit the Statistics Canada website to determine the current socio-economic and demographic composition of the Canadian work force. Identify how these factors may have an impact on HR recruitment and selection. Illustrate with examples.
PQ4: Would the manager ever be justified in not hiring the following category of applicant? If so, what would those circumstances be?
Women
Visible Minority
Aboriginal
Disable
Also, what percentage of the workers in your organizations is represented by the above categories?
PQ5: There is considerable evidence showing that smokers are less productive than non-smokers. Costs to organizations, besides those related to medical care, health, and life insurance, include absenteeism and loss of on-the-job time. Estimates place time loss per day due to smoking at 35 minutes a day, or 18.2 lost days per year per employee who smokes. In addition, smokers are absent, on average, three more days per year than other employees. Estimates place the cost of smoking to an employer at around $4500 per smoker per year. These data suggest that it is in an employer’s best interests to hire only non-smokers or to fire smokers who cannot overcome their addiction. Would such policies, of hiring only non-smokers and firing smokers, be acceptable under human rights legislation in your province or territory? Are smokers a “protected” group under human rights legislation? How would you defend these policies to an investigator from a human rights commission?

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PQ1: How can HR professionals demonstrate that they add value to a company’s bottom line?

ANS: The bottom line is the bottom line. If businesses do not generate revenue, they go out of business. If non-profits do not garner donations, grants, or revenue, they cease to exist. The best way to impact the bottom line is to first identify what the organization's revenue and performance-related goals are and then design HR solutions that will help bring them to life. Here are a few examples of HR-related actions that could be taken to help an organization increase revenue, market share, and customer satisfaction.

  • Increasing revenue could come from selling more stuff or making a higher profit on what is currently being sold-or both.
  • Sales training programs for salespersons or business process improvement courses for operations staff are options for the first objective.
  • Changing the compensation structure, the size of sales territories, the location of sales people, allowing outside sales people to work from home or training sales people on their competitor's products so that they can position our products more effectively might all affect market share.
  • Increasing customer satisfaction could occur simply by giving managers an evaluation rubric to better judge the effectiveness of call center customer relations.

PQ2: What are possible consequences of using poor or outdated recruitment and selection practices?

ANS: People who aren't a good fit require more attention from their managers and are limited to specific abilities and you will keep losing money by wasting it on poor talent. Having an inadequate recruitment and selection system can cost your company money in more ways than one. Businesses rely on their employees to be successful, so hiring the right people is essential for achieving overall goals. There are numerous repercussions of ineffective real estate recruitment and selection. More than just losing profit from lack of productivity, having the wrong people in your employ negatively affects many aspects of daily business operations.

Revenue

A huge percentage of the position’s annual salary is often used for staff replacements. These costs may include job posting fees, on-site or off-site training expenses, and more. If you hire a person you didn’t realize was unsuited for a salesperson or account manager job, then the company may suffer great losses for sales not made or clients lost. This is especially dangerous for small companies and start-up businesses. Hiring the wrong person could be the most significant thing that brings you down.

Turnover

When you hire the wrong person for a position, it typically results in having to do the whole process over to quickly refill the new vacancy. This results in wasted time, money, and energy during the downtime, as well as additional recruiting and training expenses. Having an open position hurts the company in many ways: loss of productivity, frustration about repeated training, and inability to effectively progress with business initiatives.

Morale

A wrong hire resulting from an ineffective recruitment and selection process can also hurt the teamwork and productivity of good employees. This is less likely to happen for upper management employees, but lower-level workers may have to take up that person’s slack and they may feel overworked, frustrated, and underappreciated. Also, bad hires often instigate negative attitudes in the workplace. Additionally, since bad hires affect morale, good employees may leave the company, creating an even greater turnover problem.

Confidence

Good employees may lose faith in their management team when they notice consistently poor hiring decisions and managers may lose confidence in their own abilities if they cannot train or motivate the bad hire. Terminating such an employee may result in feelings of guilt and stress, especially if they were involved in the hiring process.

PQ3: Discuss the impact that current socio-economic conditions are having on recruitment and selection practices. Visit the Statistics Canada website to determine the current socio-economic and demographic composition of the Canadian work force. Identify how these factors may have an impact on HR recruitment and selection. Illustrate with examples.

ANS: Social/Economic Factors Affecting Recruitment and Selection

1. Global competition - Companies new to global hiring should be cognizant of the very real pitfalls for firms that enter this process ill-prepared. For example, the laws governing job status classifications vary between jurisdictions, as do statutory protections for workers. Failing to take this into account can lead to serious legal and financial difficulties. There are numerous other factors to consider. Here are some things businesses need to be aware of when recruiting globally:

  • The cost of global labor is rising. Businesses cannot assume going global will result in cost savings. For example, Russian engineers are often paid more than their Silicon Valley counterparts, according to the Society for Human Resource Management.
  • Expanding markets more prevalent. For decades, U.S. organizations dominated their competitors. But thanks to globalization, those days are gone. Companies in places such as China, India and Brazil that are now operating in the same space have successfully emerged.
  • Tapping global talent is important for growth. Staying globally competitive means having access to the widest pool of talent. This also means effectively recruiting and integrating these workers. Placing the right people in new markets is fundamental to any growth strategy.

2. Rapid advances in technology and Internet - There are however challenges arising with the use of technological advances in recruitment and selection process. For example, the exercise may be time consuming as many applicants need to be screened. Other shortcomings include poor results due to inadequate software and procedures, and difficulties in filtering of potential candidates, among others. Nonetheless, the latest advances in technology have significantly impacted on recruitment and selection process.

3. Changing work-force demographics- In response to a shortage of job applicants, recruiters have begun to target their appeals to specific demo-graphic groups.

In order to increase the recruitment of Older Baby Boomers:

  • Design and place ads so that they appeal to the older adult.
  • Direct organizational efforts toward retaining current employees.
  • Consider initiating specific activities, such as job fairs, that are oriented toward the older worker.
  • Offer alternative and flexible work arrangements.

In order to increase the recruitment of Generation Xers:

  • Emphasize the social values of public service.
  • Stress the existence of a climate where there can be a work-leisure balance and where employees are encouraged to have a life outside of work.
  • Make use of the Internet in recruiting.
  • Find methods of streamlining recruitment, selection, and hiring

In order to increase Minority recruitment:

  • Create the perception, and the reality, that the selection process is fair and nondiscriminatory.
  • Design and place ads so that they appeal to the minority applicant.
  • Consider initiating specific activities (e.g., job fairs, educational alliances) that are oriented toward minorities.
  • In describing affirmative action or diversity initiatives, emphasize the importance of individual merit and achievement.

4. Economic context- In times of economic prosperity organisations will plan to expand and capitalise on the market and this, in turn, will lead to speedier hires so that positions are filled to support the company growth. When the market is not doing so well it makes sense for businesses to take longer when considering new hires, whether they are an addition to a department or filling a vacancy. Companies deciding whether a permanent hire is feasible should consider interim managers, who are available at a fixed cost and do not require long term commitments. Interims are available to start in a matter of days and contract notice periods are typically very short, usually around one month compared to three-six months for a permanent hire equivalent.

PQ4: Would the manager ever be justified in not hiring the following category of applicant? If so, what would those circumstances be?

1. Women

2. Visible Minority

3. Aboriginal

4. Disable

ANS: Yes, the manager would be justifiable in only few categories for not hiring them.

Women: A woman who is seven months pregnant was denied a job as kitchen help in a restaurant. The human rights tribunal heard evidence that the job would be physically demanding. As the woman who cannot perform these kitchen duties, she would not know the extent of the physical requirements expected for this job.

Visible Minority: Workplace diversity is a big trending topic these days, for good reason. Conversations about diversity and inclusivity are long overdue. Though we live in an era where women, visible minorities, LGBTQ, people with disabilities, and other minority groups have a stronger voice than ever, there’s still a lot of room for progress. But change is happening. It’s up to all of us to do our part to move the needle and keep moving forward. Though there’s an element of corporate responsibility involved in ensuring workplaces are inclusive for all, there’s also a strong business case for diversity. As Canadians, we often think that we have no biases because we live or grew up in an environment where multiculturalism and inclusivity are often celebrated.

Aboriginal: As mandated by the Canadian Human Rights Act, the Human Rights Codes of each of the provinces and territories makes it is unlawful to discriminate against people because of their racial and/or ethnic background(s). It is important to note that it is not legal for potential employers to ask about your racial or ethnic status during an interview. You may choose to disclose this information, but it is not mandatory.

Disable: When a person, including a recreational alcohol or drug user, is perceived to have an addiction or dependency on drugs or alcohol. Drug and alcohol testing on the job may be justifiable in certain cases.

  • Is there an objective basis for believing that job performance would be impaired by drug or alcohol dependency? In other words, is there a rational connection between testing and job performance?
  • Is there an objective basis for believing that a specific employee’s unscheduled or recurring absences from work, or habitual lateness, or inappropriate or erratic behaviour at work are related to alcoholism or drug addiction/dependency?
  • Is there reason to believe that the degree, nature, scope and probability of risk resulting from alcohol or drug dependency will adversely affect the safety of other people?

PQ5: There is considerable evidence showing that smokers are less productive than non-smokers. Costs to organizations, besides those related to medical care, health, and life insurance, include absenteeism and loss of on-the-job time. Estimates place time loss per day due to smoking at 35 minutes a day, or 18.2 lost days per year per employee who smokes. In addition, smokers are absent, on average, three more days per year than other employees. Estimates place the cost of smoking to an employer at around $4500 per smoker per year. These data suggest that it is in an employer’s best interests to hire only non-smokers or to fire smokers who cannot overcome their addiction. Would such policies, of hiring only non-smokers and firing smokers, be acceptable under human rights legislation in your province or territory? Are smokers a “protected” group under human rights legislation? How would you defend these policies to an investigator from a human rights commission?

ANS: The Tobacco Reduction Act (Alberta) came into effect on January 1, 2008, amending the previously existing Smoke free Places Act. Here are a few key highlights of the act:

  • Smoking is currently prohibited in all public places and workplaces in the province. This includes all bars, bingo halls and casinos.
  • A public place is defined as all or any part of a building, structure or other enclosed area to which members of the public have access, including common areas of multi-unit residential facilities, group living facilities, outdoor bus and taxi shelters, licensed premises, restaurants, hotels and public vehicles.
  • A workplace is defined as all or any part of a building, structure or enclosed area in which employees perform the duties of their employment, including reception areas, corridors, lobbies, stairwells, elevators, escalators, eating areas, washrooms, lounges, storage areas, laundry rooms, enclosed parking garages and work vehicles.
  • A work vehicle is defined as a vehicle owned or leased by an employer and used by employees during their employment.

No, smokers do not come under the “protected” group in Alberta.

In my opinion, I would refuse to hire someone if they smoke because smoking is not covered by the Human Rights Act in Alberta. On the contrary there must be individual counselling which can help the smokers to quit smoking by the program uses education, self-monitoring and behavioral modification techniques, and includes visits from former tobacco users who share their stories with participants. Support for behavior change is built in with encouragement from group participants, educational sessions for a participant, an identified support person and concurrent support from the AlbertaQuits Helpline and website.

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