CHAPTER 11 HUMAN RESOURCE MANAGEMENT Copyright 2005 Mc

CHAPTER 11 HUMAN RESOURCE MANAGEMENT Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 1

THE HRM FRAMEWORK Human Resource Management includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals. These activities are made up of 1. Recruitment & selection. 2. Training and development. 3. Performance appraisal and feedback. 4. Pay and benefits. 5. Labor relations. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 2

THE HRM FRAMEWORK HRM functions: Identifying HR needs Attracting human resources Maintaining human resources Terminating the relationship Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 3

ESTABLISHING THE EMPLOYMENT RELATIONSHIP • Acquiring human resources • Job analysis • Recruitment • Selection • Interviews Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 4

ESTABLISHING THE EMPLOYMENT RELATIONSHIP Human resource planning: Determining future human resource needs in relation to an organisation’s business objectives or strategic plan. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 5

ESTABLISHING THE EMPLOYMENT RELATIONSHIP Job analysis: Determines the tasks, duties and responsibilities of the job. A job analysis should be done for each job in the organization. Job analysis can be done by Observe current workers. Questionnaires filled out by worker and managers. Current trends are toward flexible jobs where duties are not easily defined in advance. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 6

ESTABLISHING THE EMPLOYMENT RELATIONSHIP Job Analysis: Outcomes: • Job descriptions and job specifications Impacts upon: • • • Recruitment & selection Performance appraisal Remuneration Training & development Job design & redesign Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 7

ESTABLISHING THE EMPLOYMENT RELATIONSHIP Recruitment: The process of finding and attracting job candidates capable of effectively filling job vacancies. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 8

RECRUITMENT THREE OBJECTIVES Ensuring compliance by organisation with government regulations Maximising the pool of applicants at minimum cost Attracting suitably qualified & skilled applicants Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 9

– • • • External recruiting: Managers look outside the firm for people who have not worked at the firm before. Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet. External recruitment is difficult since many new jobs have specific skill needs. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 10

Internal Recruiting: • Positions filled within the firm. • Internal recruiting has several benefits: • Workers know the firm’s culture, may not have new ideas. • Managers likely already know the candidates. • Internal advancement can motivate employees. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 11

METHODS OF RECRUITMENT Internal promotion Executive recruitment (‘head hunters’) Advertisements Campus interviews Employee referrals Contractors Employment agencies Internet job & career sites Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 12

Selection process: The decision-making system used to identify which job applicants are best suited to the vacant position. Background Information References Interviews Selection Performance tests Paper tests Physical Ability tests Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 13

§ – – Selection tools must be reliable and valid: Reliability: the degree to which the tool measures the same thing each time it is used. Scores should be close for the same person taking the same test over time Validity: Does the test measure what it is supposed to measure? Example: does a physical ability test really predict the job performance of a firefighter? Managers have an ethical and legal duty to develop good selection tools. Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 14

MAINTAINING THE RELATIONSHIP • Remuneration/benefits: The financial payment to employees for their work. • Training: The process of equipping people with skills and competencies. • Development: Broad preparation of employee for future opportunities through the acquisition of new knowledge, skills. • Performance management/appraisal: Judgmental assessment of employee performance Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 15

MAINTAING THE RELATIONSHIP Training & development: Choices: • Buy skills, build them, or a mixed approach Strategic rationales for training: • Proactive • Reactive • Enhancement of employee motivation, commitment & retention Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 16

MAINTAING THE RELATIONSHIP PERFORMANCE APPRAISALS MOULD EMPLOYEE BEHAVIOUR TO COMPANY NORMS IMPROVE QUALITY OF SALARY REVIEWS BUILD CONSISTENCY OF EMPLOYEE ACTIONS & ORGANISATION GOALS IMPROVE HR PLANNING, TRAINING & SUCCESSION PROVIDE RECORD FOR DISMISSAL, DEMOTION, GRIEVANCE, APPEAL Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 17

MAINTAING THE RELATIONSHIP Performance appraisal 360 o feedback— non-hierarchical method Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 18

HRIS, INTERNET, INTRANETS & EXTRANETS • HRIS: Human Resource Information System • Internet: Global connection of computer servers through which users can access stored information from their PCs • Intranets: Closed networks of information databases & systems within an organisation • Extranets: Closed networks of information systems between organisations Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 19

HRIS, INTERNETS, INTRANETS & EXTRANETS Better internal communication Widespread electronic systems Employee maintenance of own HR records Enhanced distribution of HR policy, news, information Multi-site collaborative work teams, electronically linked Performance appraisal, including 360 O feedback Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 20

TERMINATING THE RELATIONSHIP • Retrenchment: The forced termination of the employment relationship due to financial, technological or organisational circumstances • Redundancy: A forced termination of the employment relationship resulting from the permanent deletion of specific positions • Dismissal: The employer gives the required notice to terminate the employment relationship Copyright 2005 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4 e by Bartol, Tein, Matthews, Martin 10– 21