Schwind 11E IM Ch04 - Lecture Notes PDF

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Chapter 4 Legal Requirements and Managing DiversityLEGAL REQUIREMENTS ANDMANAGING DIVERSITYCHAPTER OBJECTIVESAfter studying this chapter, you should be able to: Explain the impact of government on human resource management. List the major provisions of the Canadian Human Rights Act. Define harassmen...

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Chapter 4 Legal Requirements and Managing Diversity

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LEGAL REQUIREMENTS AND MANAGING DIVERSITY

CHAPTER OBJECTIVES After studying this chapter, you should be able to: Explain the impact of government on human resource management. List the major provisions of the Canadian Human Rights Act. Define harassment and explain what is meant by the term sexual harassment. Outline an Employment Equity Program. Explain the effect of human rights legislation on the role of human resource specialists. Define diversity management and discuss the strategic importance of managing diversity. Discuss the various steps in managing diversity.

POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.)

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LECTURE OUTLINE (with PowerPoint slides) GOVERNMENT IMPACT Meeting Legal Requirements Slide 1 Government Impact Slide 2

Governments present many challenges to human resource departments. Federal and provincial laws regulate the employee-employer relationship and challenge the methods human resource departments use. Governments create special regulatory bodies such as commissions and boards, to enforce compliance with the law and aid in its interpretation. • Responsibilities of human resource specialists: -- Stay abreast of laws, interpretations and rulings -- Develop and administer programs to ensure compliance -- Pursue their traditional roles of obtaining, maintaining, and retaining an optimal workforce THE CHARTER OF RIGHTS AND FREEDOMS

The Charter of Rights and Freedoms Slide 3

The Canadian Charter of Rights and Freedoms is contained in the Constitution Act of 1982 and is probably the most far-reaching legal challenge for human resource managers. The Charter provides fundamental rights to every Canadian. HUMAN RIGHTS LEGISLATION

Human Rights Legislation Slide 4

Human rights legislation is a family of federal and provincial acts that have a common objective to provide equal employment opportunities for members of protected groups. The two layers of employment laws:  Federal law -- Passed by Parliament and enforced by the federal Human Rights Commission / Tribunal (applies to employers under federal jurisdiction)  Provincial law -- Passed by provincial governments and enforced by provincial human rights commissions / tribunals (applies to employers under provincial jurisdiction)

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Direct vs. Indirect Discrimination Slide 5

DISCRIMINATION • Discrimination is defined as “a showing of partiality or prejudice in treatment; specific action or policies directed against the welfare of minority groups” (Source: Webster’s New World Dictionary of the American Language)  Discrimination is not defined in the Charter of Rights and Freedoms  Direct discrimination on grounds specified in the human rights legislation is illegal  Systemic (indirect or unintentional) discrimination -- Any company policy, practice, or action that is not openly or intentionally discriminatory, but that has an indirectly discriminatory impact or effect -- Examples include minimum height and weight requirements; internal hiring policies, limited accessibility of buildings or facilities HUMAN RIGHTS LEGISLATION 

Human Rights Legislation Slide 6 

Bona fide occupation qualification (BFOQ) -- Legal form of discrimination -- Justified business reason for discriminating against a member of a protected class Duty to accommodate -- Requirement that an employer must accommodate the employee to the point of “undue hardship”

PROHIBITED GROUNDS OF DISCRIMINATION Prohibited Grounds of Discrimination Slide 7

1. Race and Colour -- Discrimination on basis of race and colour may be intentional or unintentional, subtle or very open 2. National or Ethnic Origins -- It is illegal for human resource decisions to be influenced by the national or ethnic origins of applicants 3. Religion -- A person’s religious beliefs and practices should not affect employment decisions -- An employer must accommodate an employee’s religious practices unless those practices present undue hardship 4. Age -- For the most part, mandatory retirement has been abolished in Canadian jurisdictions 5. Sex/Sexual Orientation -- It is illegal to discriminate against job applicants and current 4-3

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employees because of their sex -- It is unlawful to have separate policies for men and women -- In 2000, Parliament passed legislation treating same-sex partners the same as legally married and common-law couples for all purposes of federal law 6. Gender Identity -- Gender identity or gender identity and expression recognized as ground for discrimination in a number of provinces 7. Marital/Family Status -- Discrimination based on marital status is illegal, e.g., denying a woman a job because her husband is already employed by the same company -- Nepotism is a form of discrimination based on family status, i.e., having a policy of hiring employees’ children for summer jobs 8. Disability -- With practical exceptions (e.g. a blind person cannot be a truck driver) a person should not be denied employment solely for the reason of being disabled and employers have an obligation to reasonably accommodate a disabled employee to the point of undue hardship -- Drug-dependency or alcoholism may be interpreted as disabilities 9. Pardoned convicts -- The Canadian Human Rights Act prohibits discrimination against a convicted person if a pardon has been issued for the offence Harassment Slide 8

HARASSMENT Harassment occurs when a member of an organization treats an employee is a disparate manner because of that person’s sex, race, religion, age, or other protective classification.  Examples of harassment -- Verbal abuse or threats -- Unwelcome remarks, jokes, taunting -- Practical jokes that cause awkwardness -- Leering or other gestures -- Condescension or paternalism that undermines self-respect  Sexual harassment -- Unsolicited or unwelcome sex-or gender-based conduct that has adverse employment consequences for the complainant -- Men may also be subjected to sexual harassment  Reasonable person—it will be assumed that harassing behaviour has taken place if a “reasonable person” ought to have known that such behaviour was unwelcome

Enforcement

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Slide 9

Employment Equity Slide 10

ENFORCEMENT Responsibility for enforcement of the Canadian Human Rights Act lies with the Canadian Human Rights Commission (CHRC)  Deals with complaints -- May also act on its own if an infraction is perceived  Provincial Human Rights Laws and Human Rights Commissions -- Canadian provinces and territories generally have their own human rights laws and human rights commissions with similar discrimination criteria, regulations, and procedures. BC abolished its commission, but retained its Human Rights Tribunal. Nunavut has a human rights tribunal and Ontario has both a commission and a tribunal. EMPLOYMENT EQUITY Four Designated Groups:  Women  Aboriginal people  Persons with a disability 

Employment Equity Act (1987) Slide 11

Employment Equity Amendment (1996) Slide 12

Functional Impact of Employment Equity Slide 13

Visible minorities

The Abella Commission on Equality in Employment was appointed to determine the most effective, efficient, and equitable methods of promoting employment opportunities for four designated groups • Employment Equity Act was passed by the federal government in August 1987 -- Employers with 100 employees or more under federal jurisdiction are required to develop annual plans setting out goals and timetables -- As of 1996, employers are responsible for providing “reasonable accommodation,” e.g., providing a sign-language interpreter for a job interview with a deaf applicant, altering dress or grooming codes to allow Aboriginal people to wear braids, etc. Functional Impact of Employment Equity • Human resource plans -- Must reflect the organization’s employment equity goals  Job descriptions -- Must not contain unneeded requirements  Recruiting -- Must ensure that all types of applicants are sought  Selection -- Screening devices must be job-relevant and non-discriminatory 

Training and development -- Must be made available for all workers, without discrimination

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Major Steps: Employee Equity Programs Slide 14

Performance appraisal -- Must be free of biases that discriminate Compensation programs -- Must be based on skills, performance, and/or seniority

EMPLOYMENT EQUITY PROGRAMS Developed by employers to undo past employment discrimination or to ensure equal employment opportunity in the future. Major Steps in Employment Equity Programs • Exhibit employer commitment -- Total support from top officials is required, e.g., raises, bonuses, and promotions dependent upon each manager’s compliance • Appoint a director -- Some member of the organization should be responsible e.g. vice president of human resources with an HR specialist responsible for day-to-day implementation • Publicize commitment -- Publicized externally and internally  Survey the workforce -- To compare the composition of the employer’s workforce with the composition of the workforce in the labour market  Develop goals and timetables -- Goals and timetables to eliminate underutilization and concentration should be established  Design specific programs -- Human resource specialists design remedial, active, and preventive programs  Establish controls -- Benchmarks are required to evaluate and reward success PAY EQUITY

Pay Equity Slide 15

Women aged 25-54 earn about 85% as much per hour compared to male employees • Equal pay for work of equal value -- A number of provinces have laws that make it illegal to pay women less than men if their jobs are of equal value -- At the federal level, the Canadian Human Rights Act prohibits discrimination based on sex, making it illegal to pay women less than men if their jobs are of equal value • Recent cases -- Federal government settled in 1999 at a cost of $3.5 billion -- A 2011 Supreme Court of Canada decision involving Canada Post employees cost the employer approximately $250 million.

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Reverse Discrimination Slide 16

Principle of Natural Justice Slide 17

Other Legal Challenges Slide 18

REVERSE DISCRIMINATION This allegation usually arises when an employer seeks to hire or promote a member of a protected group over an equally (or better) qualified candidate who is not a member of a protected group • Places Human Resource departments in a difficult position • Canadian Human Rights Act declares Employment Equity Programs non-discriminatory if they fulfil the spirit of the law PRINCIPLE OF NATURAL JUSTICE • Minimum standards of fairness and implied obligations for decisionmaking: -- The right to a fair hearing -- The right to a bias-free proceeding -- The right to present the opposing argument -- The right of legal representation -- The right to timely notice of a hearing -- The right to a timely process OTHER LEGAL CHALLENGES Other relevant issues include:  Canadian Labour Code (1971) -- Regulates union certification and other aspects (Chapter 14) -- Provincial equivalents are the Employment (or Labour) Standards Acts  Dismissal -- Save for a few exceptions, a non-union employer can terminate the employment relationship as long as reasonable notice or compensation in lieu of notice is given.  Hours of work and overtime regulations -- Canada Labour Code sets the standards  Minimum wages -- Set by provincial and federal boards (Chapter 9)  Occupational health and safety -- Regulation of occupational health and safety issues (Chapter 12)  Weekly rest day -- Canada Labour Code specifies at least one full day of rest during the week is to be provided (preferably Sunday)  Workplace Hazardous Material Information System (WHMIS) -- Regulates the handling and labelling of dangerous material (Chapter 12)

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Strategic Implications Slide 19

STRATEGIC IMPLICATIONS OF LEGAL CHALLENGES  Ensure all rules and policies consider legal aspects o -- Human Resources is responsible to ensure that all policies and rules take legal aspects into account  Employment equity requirements -- Ensure that all long-range strategic plans follow employment equity requirements -- Required to do business with the federal government  Good corporate citizen -- Project external equity to be attractive to job applicants  Training -- To ensure managers and supervisors are familiar with the laws  Sexual harassment and unjust dismissal -- Prominent issues DIVERSITY MANAGEMENT

Diversity Management Slide 20

Organizational Barriers Slide 21

A diverse workforce requires managers with new leadership styles who understand employees’ varying needs and creatively respond by offering flexible management policies and practices • A combination of factors including government policies, demographic and labour forces changes, increasing global operations, technological revolution have fundamentally changed the way Canadian organizations work and who they employ  A variety of organizational barriers exist: -- Old boy’s network is the set of informal relationships that develop among male mangers and executives that provide increased opportunities for men -- Glass ceiling is the invisible but real obstruction to career advancement of women and visible minorities, resulting in frustration, career dissatisfaction, and increased turnover -- Stereotyping is the process of using a few observable characteristics to assign someone to a pre-conceived social category

Workplace Diversity Slide 22

MEANING OF DIVERSITY MANAGEMENT Workplace diversity includes important human characteristics that influence an employee’s values, perceptions of self and others, behaviours, and interpretations of events

Dimensions of Diversity

Dimensions of Diversity Include: • Core dimensions of diversity -- Exert considerable impact on our early socialization and have a sustained life-long impact

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-- Includes age, ethnicity and culture, sex/gender, race, religion, sexual orientation, and capabilities -- Example: An individual’s age impacts how (s)he is perceived by others, the individual’s ability to learn, perform tasks; also impacts the individual’s perceptions and behaviours Secondary dimensions of diversity -- Are less visible and more variable in their impact on individual behaviour -- Includes education, status, language, income levels, etc.

STRATEGIC IMPORTANCE OF DIVERSITY MANAGEMENT Strategic Importance Slide 24

Several factors make diversity management strategically important  Changing Workforce -- Canadian labour market is undergoing a transformation -- Today’s workforce is considerably more diverse than in the past  Importance of Human Capital -- Knowledge workers may be the key to success or failure -- Most valuable parts of the organization’s operation may be reflected by the human tasks performed, e.g., sensing, decision-making  Diversity as a Competitive Advantage -- Proactive organizations recognize that competitive strength often depends on focusing on employees and their clients -- A firm’s customers are no longer a homogeneous group due to globalization and changing domestic markets -- Effective managers recognize the value of tapping people’s differences and pooling their insights and experience  Increasing Role of Work Teams -- Teams play a dominant role in modern organizations -- Effective handling of diversity can lead to added creativity, problem-solving, and intra-organizational communication

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Steps in Managing Diversity Slide 25

STEPS IN DIVERSITY MANAGEMENT Diversity management efforts require four key steps: 1. Identify Ideal Future State • Begins with identification of current workforce composition i.e. age, gender, ethnicity, education, and disability (may also include language, race, parental status, marital status, etc.)  Surveys, focus groups, and employee interviews are then conducted to identify present and ideal future states at work e.g. may reveal employees are experiencing difficulties in balancing work and family responsibilities 2. Analyze Present Systems and Procedures • Examine current policies, systems, practices, rules and procedures to determine their validity and fairness for a diverse workforce e.g. work assignments, recruitment and hiring, orientation, etc. 3. Change Systems, Procedures, and Practices  Senior Management Commitment -- One of the most important elements of ensuring the success of diversity efforts -- Must be viewed as integral part of the firm’s business philosophy -- Link diversity initiatives to business goals and performance criteria to create manager accountability

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Establishment of a Diversity Committee -- To oversee diversity efforts, implement process, and serve as a communication link -- Should represent all employee groups, i.e., occupational groups, geographic locations, age, etc.  Education and Retraining -- Training in the importance of diversity needs to be provided to all employees at all levels in the organization -- Variety of training and employee development techniques may need to be used to sensitize workers to varying cultural values and norms  Wide Communication of Changes -- Information, changes in internal systems and procedures must be communicated to all employees 4. Evaluate Results and Follow-up  Monitor progress on a systematic basis and communicate quantitative (e.g. , number of hires, promotions, absenteeism, turnover, grievances, etc.) and qualitative (e.g. , work climate feedback) indices 

Current Industry Practices Slide 26

CURRENT INDUSTRY PRACTICES The choice of specific mechanisms should be made after consideration of the organization’s unique challenges and constraints 

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Diversity Training Programs -- Managers and supervisors need new skills to manage and motivate a diverse workforce -- Awareness training focuses on creating an understanding of the need for managing and valuing diversity and to increase selfawareness of diversity related issues, e.g., stereotyping, crosscultural sensitivity -- Skill building training educates employees on specific cultural differences and how to respond to these differences in the workplace -- Content training relates to providing specific information about a culture -- Process training involves understanding how to utilize behaviours for effectiveness in diverse workplaces, e.g., management style, interpersonal communications, etc. Mentoring Programs -- Programs encouraging members of disadvantaged groups (e.g., women) to work with a senior manger who acts like a frien...