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Business 310. Road Map Fall 2012. Bus 310 First Night. Introductions Course Overview Course Format Expectations Marking Reading and question for next class. First Night Handouts. In-class quizz Course Outline Alignment with CHRP requirements Sign-up sheet . First Night - Our Roadmap.

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business 310

Business 310

Road Map Fall 2012

Business 310

bus 310 first night
Bus 310 First Night
  • Introductions
  • Course Overview
  • Course Format
  • Expectations
  • Marking
  • Reading and question for next class

Business 310

first night handouts
First Night Handouts
  • In-class quizz
  • Course Outline
  • Alignment with CHRP requirements
  • Sign-up sheet

Business 310

first night our roadmap
First Night - Our Roadmap
  • Introduction and Overview
    • Ch 1
  • Understand your organization and people
    • Ch 2 and Ch 3
  • Formulate your reward and compensation strategy
    • Ch 4, Ch 5 and Ch 12
  • Determine your compensation values
    • Evaluating Jobs Ch 7, and Ch 8,
  • Evaluating your market
    • Ch 9
  • Constraints and Legal Frameworks
    • Ch 6

Business 310

sept 12
Sept 12
  • In-class quiz
  • Reward Model
  • Goals of a Compensation System
  • Case Analysis

Business 310

sept 12 the business case
Sept 12-The Business Case
  • Defining the symptoms
  • Defining the business issue
  • Defining the behaviours we want to change
  • Describing the perfect world
  • Defining three options
  • Considering the pros and cons
  • Recommending action

Business 310

sept 12 framework
Sept 12 Framework
  • Hand-in (Domain Task Environment)
  • Exam date :___________
  • Domain Task Environment
  • Management Strategies
  • Framework Part 1 (Structural)
  • Sept 28 Using the organization you have chosen for your first assignment, describe the control systems in place

Business 310

sept 19 framework
Sept 19-Framework

Contextual

Variables

Structural

Variables

Managerial Strategy

Domain / Task

Business 310

sept 19 environment
Sept 19 Environment

Stable – industry and products are predictable

e.g . Grocery , Retail

Dynamic – change creates uncertainty – new products, competitors and rapidly evolving technology

e.g. Financial investment ,

Mobile phones

Simple - single product line or related products or technologies

e.g. Dial- a- Geek

Kelly Services, Schools

Complex – many different and unrelated products or technologies

e.g. Hospital, Provincial Government

AND

Business 310

sept 19 corporate strategy
Sept 19 Corporate Strategy

Miles and Snow

Defender –dominating a narrow product or service

e.g. Sears, Camosun,

Prospector – identifying and exploiting new opportunities

e.g. Google, Apple

Analyzer – maintain a base of products or services and exploit new opportunities

e.g. Telus, Shaw

Michael Porter

Low-cost – common product promoted on price

e.g. Walmart, Tim Hortons

Differentiator – unique product or service

e.g. Starbucks,

OR

Business 310

sep 19 contextual variables
Sep 19 Contextual Variables

Corporate Strategy

Organization

Size

Domain

Task

Technology

Work Force

Business 310

sept 19 technology
Sept 19 Technology

Perrow

Routine

Craft

Engineering

Non-routine

Thompson

Long –linked

Mediating

Intensive

Woodward

Small batch

Large batch

Process

OR

OR

Business 310

sept 26 structural variables
Sept 26 -Structural Variables

Job Design

Coordination and Departmentation

Decision Making and Leadership

ENVIRONMENT

Communication

And Information

Control Systems

Reward Systems

Business 310

oct 3 maslow s hierarchy
Oct 3- Maslow’s Hierarchy

Survival

Safety /Security

Social

Self Esteem

Self-Actualization

Business 310

oct 3 behaviour
Oct 3 - Behaviour
  • Undesirable Consequences
  • Reward Dissatisfaction
    • Relative Deprivation
    • Organizational Justice
      • Distributive Justice
      • Procedural Justice

Business 310

oct 3 behaviour1
Oct 3- Behaviour
  • Organizational Justice
    • Consistent
    • Free of Bias
    • Flexible
    • Accurate
    • Ethical
    • Representative

Business 310

oct 5 behaviour
Oct 5- Behaviour
  • Relative Deprivation
    • Discrepancy between outcome wanted and outcome received
    • Others receive more than they do
    • Past experience suggests they should receive more
    • Future expectations for receiving more are low
    • Believe they entitled to more
    • Absolve themselves of personal responsibility

Business 310

oct 3 behaviour2
Oct 3- Behaviour
  • Reward Dissatisfaction
    • Increase Rewards
      • Demand higher pay
      • Find another job
      • Increase effort
      • Acquire illicit rewards
      • Demand improved job duties
    • Decrease Contribution
      • Reduce job duties
      • Reduce performance
      • Increase absenteeism
      • Find less demanding job

Business 310

oct 3 behaviour3
Oct 3- Behaviour
  • Membership Behaviour
    • Affective commitment (good)
    • Continuance commitment (not so good)
    • Job security (Maslow)
    • Salience
      • The amount of need deprivation
      • The importance of the need

Business 310

oct 5 behaviour1
Oct 5- Behaviour
  • Task Behaviour
    • Expectancy Theory
    • Reinforcement Theory
  • Citizenship Behaviour
    • Organizational Identification
      • Integration of goals and values
      • Belongingness
      • Trust (e.g. procedural justice)

Business 310

oct 5 behaviour2
Oct 5- Behaviour
  • Membership
    • Salience
    • Need (Maslow)

Business 310

oct 10 rewards
OCT 10 Rewards

EXTRINSIC

INTRINSIC

  • BASE
  • Wage
  • Salary
  • Minimum
  • Market
  • Pay for Knowledge

PERFORMANCE

INDIRECT

Business 310

oct 10 base pay
Oct 10 Base Pay

MINIMUM WAGE as of Oct 1, 2012

Ontario $10.25

Quebec $9.50

New Brunswick $9.00

Nova Scotia $9.65

Newfoundland $10.00

PEI $9.00

Washington State $US 8.55

  • Alberta $8.80
  • BC $10.25
  • Saskatchewan $9.25
  • Manitoba $9.50
  • NWT $9.00
  • Nunavut $10.00
  • Yukon $8.93

Business 310

oct 10 base pay1
Oct 10- Base Pay
  • Wage
    • pay for time provided
    • Usually quoted on hourly basis
    • Usually refers to included (unionized) workers
  • Salary
    • Pay for services provided or outcomes
    • Usually quoted on annual basis
    • Usually refers to excluded management workers

Business 310

oct 10 pros cons of base pay
Oct 10 Pros / Cons of Base Pay
  • Pros
    • Simple
    • Predictable
    • Attributable
    • Controllable
    • Preferred by many potential EE’s
  • Cons
    • Fixed cost
    • Not a motivator
    • Does not contribute to citizenship behaviour
    • Not self correcting

Business 310

oct 10 step progression
Oct 10 Step Progression

JOB RATE

Business 310

oct 12 courts example
Oct 12 - Courts Example
  • ASSISTANT – have already been introduced to government standards of office administration, ministry structure, financial processes and records management
  • CLERK – demonstrates a basic knowledge (LEVEL B) of all components of the court registry; informs clients of appropriate forms, court contacts and procedural steps; ADMINISTRATOR – demonstrates knowledge (Level C) of two components of the court registry, responds to exceptions and client queries for a minimum of three years, leads administrative projects improving services and systems of the court
  • LEAD ADMINISTRATOR – demonstrates seasoned knowledge (Level D) of two or more components exceptions and precedents acquired over five years; advises, directs and develops Clerks and Assistants.
  • SENIOR ADMINISTRATOR – demonstrates seasoned knowledge of three or more components, exceptions, and precedents acquired over seven years; recruits, develops and assigns work to Court Staff
  • Each level of knowledge is complemented by formal training in leadership skills and knowledge and supported by sufficient time in position to demonstrate competency.

Business 310

pay ranges
Pay Ranges

Business 310

oct 10 sample exam question
Oct 10 - Sample Exam Question
  • Managers within large companies usually have little control over extrinsic rewards. What are intrinsic rewards and give two examples of what managers can do to enhance intrinsic rewards for their employees? (3 marks)

Business 310

oct 17 rewards
Oct 17- Rewards

EXTRINSIC

INTRINSIC

  • Performance
  • Commission
  • Piece Rate
  • Bonus
  • Gain sharing
  • Profit sharing

Base

INDIRECT

Business 310

oct 17 variable compensation
Oct 17 Variable Compensation:
  • Stock Bonus
  • Stock Purchase
  • Stock Option
  • Long Term Incentives
  • Non-Monetary
  • Piece Rates
  • Commission
  • Merit Raise
  • Merit Bonus
  • Profit Sharing
  • Gain Sharing
  • Goal Sharing

Business 310

oct 17 incentives
Oct 17 - Incentives
  • Individual
    • Low interdependence
    • Results attributable to one
    • Output focused (Results oriented)
    • Builds personal ownership
  • Group
    • High interdependence
    • Results attributable to more than one
    • Build collective ownership

Business 310

oct 17 piece rate
Oct 17 – Piece Rate
  • Workers control their own production
  • Interdependence between workers is low
  • Each unit of production can easily be measured and priced
  • Tasks do not change frequently
  • Increased productivity will not cause lay-offs
  • Monitoring quality is easy

Business 310

oct 17 designing performance pay
Oct 17 Designing Performance Pay
  • Underlying concepts
    • Reward the behaviour and it shall be repeated (reinforcement)
    • share the projected wealth (Expectancy should translate into reality )
    • Bonus must be predictable
    • Windfalls are not part of the game

Business 310

oct 17 incentive categories
Oct 17 - Incentive Categories
  • Increased Sales
  • Increased Productivity
  • Reduced Costs
    • Reduced Absenteeism
    • Suggestions leading to Improvement
  • Increased Operating Profit
  • Increased Net Profit

Business 310

oct 17 targeted incentives
Oct 17 - Targeted Incentives
  • Attendance
    • Attribution theory eliminating the intrinsic reward with a less salient financial reward
    • Resolving attendance through dealing with the root problem
  • Suggestion Programs
    • Token or Commission?
    • Individual or Group?

Business 310

oct 17 piece rate1
Oct 17 Piece Rate
  • Minimum wage is $8.00
  • Target average wage is $12.50/hour and eight hour day
  • Tight piece rate to cut and sew a finished tie is 48 minutes
  • What is my piece rate incentive?
  • What is minimum rate of productivity acceptable from an employee?

Business 310

oct 17 linking pay to performance
Oct 17 - Linking Pay to Performance

Does individual performance vary?

Can individual control it?

Can performance be measured?

Will pay be linked to performance?

Is this the only way?

Are there risks to be managed?

Does it fit our management strategy?

Business 310

risk of bonus payout
Risk of Bonus Payout

Employee Risk

Employer Risk

Employee risk of not earning a bonus increases as they lose control of the results and more and more people are involved in the outcome

Employer risk of paying a bonus not resulting in bottom line profits decreases the closer the bonus is tied to that bottom line result

Business 310

oct 17 designing a reward system
Oct 17- Designing a Reward System
  • Define the behaviour
  • Determine employee attributes and qualifications
  • Identify the salient needs
  • Develop rewards
  • Ensure a positive valence
  • Link rewards to behaviour
  • Confirm employee perception of fairness
  • Provide the right conditions
  • DWYSYWGTD

Business 310

oct 31 indirect rewards
Oct 31- INDIRECT REWARDS

EXTRINSIC

INTRINSIC

  • INDIRECT
  • Mandatory
  • Retirement
  • Health
  • Time not Worked
  • Employee Services
  • Miscellaneous

BASE

PERFORMANCE

Business 310

oct 31 non monetary rewards
Oct 31 Non-Monetary Rewards
  • Social reinforcers
  • Merchandise Awards
  • Travel Awards
  • Symbolic Awards
  • Time

Business 310

oct 31 why offer benefits
Oct 31 Why Offer Benefits?
  • Cost Assurance
  • Income Protection
  • Competitive Demand

Business 310

oct 31 mandatory benefits
Oct 31 MANDATORY BENEFITS
  • Canada Pension Plan
  • Employment Insurance
  • Workers Compensation
  • Severance (in BC)

Business 310

oct 31 canada pension plan
Oct 31 - Canada Pension Plan
  • Canada Pension Plan
    • 4.95% / 4.95%
    • $46,500 maximum income
    • Age 60 or 65
    • Pension, Survivor Benefit, Disability Benefit

Business 310

oct 31 cpp
Oct 31 - CPP

1. Retirement Pension (approx 25% of annual insurable income

As little as one valid contribution to the Plan creates entitlement to a Canada Pension Plan Retirement Pension available as early as age 60.

2. Survivor Benefits, which include:

Lump Sum Death Benefit to the estate of the contributor. Where there is no will or estate, it may be payable to the person(s) responsible for funeral costs, the survivor or the next of kin in that order;

Monthly Survivor's Benefit to the eligible spouse or common-law partner even if the survivor remarries;

Monthly benefit for children under age 18 or between 18 and 25 and in full-time attendance at a recognized institution.

3. Disability Benefits, which include:

Monthly Disability Benefit to eligible contributors;

Monthly Contributor's Child's Benefits to children under age 18 or between ages 18 and 25 and in full-time attendance at a recognized institution

Business 310

oct 31 employment insurance
Oct 31 - Employment Insurance
  • 1942 - EI fully in place
  • 1971 – Legislation amended to extended to shortage of work sickness and pregnancy.
  • 1984 - Legislation extended to pay benefits to adoptive parents
  • 1987 - paternity benefits in special circumstances were introduced
  • 1990 - Parental benefits replaced adoption and paternity benefits
  • 1997 – Change from insured weeks to insured hours
  • 2000 – Definition of spouse changed to include same sex

Business 310

oct 31 ei premiums
Oct 31 - EI Premiums
  • Employee Rate as of 01/01/2009 = 1.73% of insurable earnings.
  • Employer Portion = 2.42%
  • Annual maximum insurable earnings = $41,100
  • Maximum annual premium for the year = $731.79.

Business 310

oct 31 worksafe bc
Oct 31 - WORKSAFE BC
  • Benefit for Employer – cost certainty
  • Benefit for Employee – no fault insurance and income protection
  • Premium determined by industry sector accident history

Business 310

oct 31 defined benefit plan
Oct 31 - Defined Benefit Plan
  • Employee contribution matched in some proportion and invested by the company to generate a pay-out at time of retirement
  • Formula driven: (yrs of service) X (fixed %) X (salary at time of retirement)(35 yrs) X (1.5%*) X (50,000) = $26,250
  • Employer – investment gains/losses /life expectancy
  • Employee – income certainty

Business 310

oct 31 defined contribution
Oct 31 - Defined Contribution
  • Employee contribution matched by employer and invested in third party fund
  • Retirement income determined by value of fund at time of retirement
  • Employer - cost certainty
  • Employee - portability

Business 310

oct 31 cost controls
Oct 31 - Cost Controls
  • Don’t offer it
  • Maximum benefit
  • Eligibility limits
  • Employee premium
  • Deductibles
  • Time frames
  • Education
  • Incentives / Penalties

Business 310

oct 31 case analysis
Oct 31 - Case Analysis:
  • Identify the symptoms
  • Define the business issue(s)
  • Define the HR issue(s)
  • Define the Compensation issue(s)
  • Describe the perfect world (goal or vision)
  • Identify your options
  • Analyze the pros and cons
  • Present your conclusions

Business 310

henderson printing
Henderson Printing

Business 310

nov 7 job description
Nov 7 - Job Description
  • Header
  • Summary
  • Specific Responsibilities/Outputs/Outcomes
  • Dimensions
  • Organization Chart
  • Education/Certifications

Business 310

nov 7 compensable factors
Nov 7 - Compensable Factors
  • Skill
  • Effort
  • Responsibility
  • Working Conditions

Business 310

nov 7 specific responsibilities
Nov 7 - Specific Responsibilities
  • This position …
  • Achieves an output or outcome …
  • For clients or stakeholders …
  • By doing or taking the following actions

Business 310

nov 7 ex specific responsibilities
Nov 7 Ex. Specific Responsibilities:
  • Meet the research needs of learners, Faculty and staff by coordinating schedules, work assignments, and providing alternative solutions to more complex questions as staff provide advice and guidance face to face or online, asynchronously or in real time;
  • Coordinate Bankruptcy application processes by assisting clients with application procedures, developing application information packages for clients and staff; opening and monitoring case files, preparing application files for court hearings and processing Orders resulting from hearing proceedings

Business 310

nov 7 example summaries
Nov 7 - Example Summaries
  • The Supervisor - Probate, Adoption and Bankruptcy assesses and processes Probate, Bankruptcy and Adoption applications, advises applicants and their agents of the proper administrative steps to process their applications, develops standardized administrative practices for Registry staff, and recommends related content as Policies and legislation change
  • The Librarian increases the ability of learners, faculty and staff to effectively research, extract and attribute sources of information by coordinating the design and delivery of instruction for research skills. The Librarian also coordinates Access Services (staff recording, releasing and retrieving print and digital materials and managing access to print materials held in reserve collections.

Business 310

nov 7 job evaluation methods
Nov 7 - Job Evaluation Methods
  • Whole Job Methods
    • Ranking or Paired Comparison
    • Classification /Grading
  • Job Factor Methods
    • Factor Comparison (statistical)
    • Point Factor

Business 310

nov 7 what you need
Nov 7 - What You Need:
  • Job description for subject position
  • Organization chart
  • Job Evaluation Plan
  • Benchmark job descriptions
  • Knowledgeable Committee

Business 310

nov 14 pitfalls of job evaluation design
Nov 14 - Pitfalls of Job Evaluation Design
  • Inconsistent Construct Design
    • Ambiguous Factor Definitions (pg 290)
    • Inconsistent Factor Definitions (pg 290)
    • Inconsistent Degree Statements (pg 291)
    • Factor Overlaps (pg 291)
  • Hierarchical Grounding

Business 310

nov 14 pitfalls of job evaluation
Nov 14 Pitfalls of Job Evaluation
  • Gender Bias
  • Different Job Families
  • Stereotyping
  • Ignoring factors common to female dominated jobs
  • Insufficient range of degrees (pg 294)

Business 310

nov 14 point factor job evaluation
Nov 14 Point Factor Job Evaluation
  • Pay Equity
  • Factor Construction
  • Weighting
  • Benchmarks
  • Committees

Business 310

nov 21 the market
Nov 21 – The Market
  • Geographical Area
  • Industry Competitors
  • Define what you are comparing
    • (Apples to Apples)

Business 310

nov 21 market pricing
Nov 21 - Market Pricing
  • What is the market?
  • What is the job?
  • Where is the equity?

Business 310

nov 23 surveying the market
Nov 23 - Surveying the Market
  • Informal means
    • Tracking external candidates’ actual pay
    • Immediate contacts
    • Internet
    • Newspaper or Internet job postings
  • Formal
    • Association or Industry Survey
    • Government survey
    • Consultant survey
    • Your own survey

Business 310

nov 23 the market
Nov 23 - The Market

The National Occupational Classification (NOC)

  • Nationally accepted reference on occupations in Canada
  • 30,000 job titles into 520 occupational groups
  • Used to compile, analyze and communicate information about occupations
  • Partnership with Statistics Canada according to 5-year Census cycles.

Business 310

nov 21 noc accounting related clerks
Nov 21NOC – Accounting & Related Clerks

Accounts receivable

Invoice

Deposit

Tax

Freight-rate

  • Costing
  • Ledger
  • Audit
  • Accounts payable

Business 310

nov 21 noc titles
Nov 21- NOC Titles

1212 Supervisors, Finance, Insurance Clerks

1431 Accounting and Related Clerks

senior accounting clerk

accounting assistant

accounting clerk

accounting machine operator

accounting and auditing clerk

cost accounting clerk

revenue accounting clerk

  • accounting supervisor
  • supervisor, bookkeepers and accounting clerks
  • supervisor, financial accounting
  • head, accounting section
  • accounting clerks supervisor1231 Bookkeepers
  • accounting bookkeeper
  • accounting technician

Business 310

nov 23 limitations
Nov 23 - Limitations
  • Questionable quality of job matches
  • May omit important information
  • Cannot surmise the compensation strategies of individual competitors
  • Data may not align with all positions of the organization

Business 310

nov 21 designing the survey
Nov 21- Designing the Survey
  • Define the job (benchmarks)
  • Determine the market or frame of reference
  • Prepare your survey tool (pg 320)
    • Face to face
    • Telephone
    • Paper or electronic
  • Collect your data
  • Analyze your findings
  • Report out

Business 310

nov 21 market stats
Nov 21- Market Stats
  • Mean
  • Average
  • Median
  • Quartiles

Business 310

nov 21 terms
Nov 21- Terms
  • Aging the data
  • Compa-ratio
  • Quartile
  • Mean
  • Simple average
  • Weighted mean or weighted average

Business 310

nov 21 terms1
Nov 21- Terms
  • Benchmark
  • Compression
  • Red circling
  • Reliability
  • Validity

Business 310

nov 21 quartiles
Nov 21- Quartiles
  • Example 1
    • Data Set: 6, 47, 49, 15, 42, 41, 7, 39, 43, 40, 36
    • Ordered data set: 6, 7, 15, 36, 39, 40, 41, 42, 43, 47, 49
    • Q1= 15 Q2= 40 Q3 = 43
  • Example 2
    • Ordered data set: 7, 15, 36, 39, 40, 41
    • Q1= 15 Q2= 37.5 Q3 = 40
  • Example 3
    • Ordered data set: 1, 2, 3, 4
    • Q1= 1.5 Q2= 2.5 Q3 = 3.5

Business 310

nov 21 quartiles1
Nov 21- Quartiles
  • First quartile = lower quartile= cuts off lowest 25% of data = 25th percentile
  • Second quartile = median = cuts data set in half = 50th percentile
  • Third quartile = upper quartile = cuts off highest 25% o data or lowest 75% = 75th percentile

Business 310

nov 21 implementing your survey findings
Nov 21 - Implementing your Survey findings
  • PEST Analysis
    • Political
    • Economic
    • Social
    • Technological
  • Internal Equity
  • Proximity factor
  • Communication Plan

Business 310

nov 28 constraints
Nov 28 - Constraints
  • Product / Service
  • Financial Constraints
  • Labour Market
  • Management Strategy in place

Business 310

nov 28 constraints1
Nov 28 - Constraints
  • Employment Standards Act
  • Labour Relations Act
  • Canada Labour Code
  • Workers Compensation Act
  • BC Human Rights Code
  • Tax Act

Business 310

nov 28 employment standards act
Nov 28 - Employment Standards Act
  • Pay Days - at least semi monthly and within 8 days of the end of he pay period
  • Clothing - special clothing must be supplied, cleaned and maintained by the ER
  • Meal Breaks – 30 minutes unpaid unless required to work or be available to work
  • 40 hour week - 8 hour day or an average determined over 1, 2, 3 or 4 weeks

Business 310

nov 28 employment standards act1
Nov 28 - Employment Standards Act
  • Vacation – 4% during the first 12 months and 6% after the fifth anniversary
  • Overtime – 1.5 X after 8 hours and 2X after 12 hours
  • Statutory Holiday Pay – 1.5X plus day off or pay in lieu
  • Family Leave – up to 5 days unpaid
  • Termination - one week's notice after 3 consecutive months of employment;
  • (ii)  2 weeks' notice after 12 consecutive months of employment;
  • (iii)  3 weeks' notice after 3 consecutive years of employment, plus one additional week for each additional year of employment, to a maximum of 8 weeks' notice

Business 310

nov 28 labour relations act
Nov 28 – Labour Relations Act
  • 18 If a collective agreement is not in force and a trade union is not certified as bargaining agent for a unit appropriate for collective bargaining, a trade union claiming to have as members in good standing not less than 45% of the employees in that unit may at any time, subject to the regulations, apply to the board to be certified for the unit.
  • 24 (1) If the board receives an application for certification under this Part and the board is satisfied that on the date the board receives the application at least 45% of the employees in the unit are members in good standing of the trade union, the board must order that a representation vote be taken among the employees in that unit.

Business 310

nov 28 bc human rights code
Nov 28 - BC Human Rights Code
  • Discrimination in wages
  • 12  (1) An employer must not discriminate between employees by employing an employee of one sex for work at a rate of pay that is less than the rate of pay at which an employee of the other sex is employed by that employer for similar or substantially similar work.
  • (2) For the purposes of subsection (1), the concept of skill, effort and responsibility must, subject to factors in respect of pay rates such as seniority systems, merit systems and systems that measure earnings by quantity or quality of production, be used to determine what is similar or substantially similar work.

Business 310

dec 5 summary
Dec 5 - Summary
  • Course Highlights
  • Chapter Review
  • Return Assignment 2

Business 310