Download - Human Resource Management v4
Human Resource Management
Higher Business Management
Today…
Role and Importance of HRMFunctions of HRMHRM RemitChanging Patterns of EmploymentReasons for Sub-contractingHuman Resource PlanningThe Shamrock OrganisationLabour TurnoverManpower Planning
Role and Importance of Human Resource
Management (HRM)
The most valuable asset in any organisation is its workforce.It is the human resources that generate wealth by providing services and producing goods.Care must be taken over employees especially if they want to secure and retain staff.
Function of Human Resources
HRPRecruitment and SelectionTraining and DevelopmentMaintenance of Personnel RecordsLegislationEmployee RelationsGrievance and Discipline
HRM Remit
To promote a policy of continuous learning and staff developmentTo recruit, develop and retain people with the appropriate skills and attitudes required for present and future jobsTo manage employee relations To design, implement and manage remuneration, reward and appraisal schemesTo maintain and improve physical and mental well being of the workforceTo take account of all legislation relevant to HRM
Changing Patterns of Employment
Decline in full-time, permanent workDecline in heavy engineeringIncrease in service sector employment (call centre, IT)Increase in women working (suited to new areas of employment)
Changing Patterns of Employment
TeleworkingFlexitimePart-timeJob SharingFixed ContractsSub-contracts
Reasons for Sub-Contracting
More skilled workforceExpertiseEconomies of scaleCan concentrate on what you’re good atSaves money in equipment/training
Human Resource Planning
Changing goals of a businessChanges in MarketChanges in Technology
CompetitionPopulation ChangesTrade UnionsGovernment Legislation
Factors affecting HRP:
Labour Turnover
Costs of High Labour Turnover:
Costs of advertising, interviewing & training new employeeLoss of production while place is being filledLow morale amongst other employees
Manpower Planning
If firm’s labour supply > demand:
RedundancyRetrainingEarly retirement‘Natural wastage’
If firm’s labour supply < demand:
• Additional advertising
• Retraining programmes
• Increase pay & other incentives
Recap…
Role and Importance of HRMFunctions of HRMHRM RemitChanging Patterns of EmploymentReasons for Sub-contractingHuman Resource PlanningThe Shamrock OrganisationLabour TurnoverManpower Planning
Today…
Motivation and NeedsMaslowHerzbergFactors of MotivationEmpowerment
Motivation & Needs
Maslow’s Hierarchy of Needs
Needs at top more important than at bottomBut lower needs have to be satisfied first
Herzberg’s Two Factor Theory
Frederick Herzberg believed there were two factors that affected people at work:Hygiene Factors – ones with potential to cause dissatisfaction at work (salary, working conditions, status, over-supervision)Motivator Factors – aspects of a job that can lead to positive job satisfaction (achievement; recognition; meaningful, interesting work; psychological growth and learning)
Factors of Motivationpay levelsjob securitypromotional prospectsResponsibilityworking conditionsfringe benefitsparticipation in decision-makingworking in a team
Motivation
Financial MethodsFlat rate, piece rate, commission. PRP, profit sharing, share ownership
Non-Financial MethodsEmpowerment, delegation, job enrichment, job enlargement, job rotation, quality circles
Empowerment…
…providing the means by which subordinates can exercise power over their working lives.
It offers more responsibility and independence, different from delegation because there is more freedom to decide what to do and how to do it.
Empowerment Benefits to firm
Improved productivityIncreased staff motivationSpeedier decision makingFresh ideas can improve quality of decisions madeOrganisation may become more competitiveFaster communication as there are fewer levels in the organisationImproved management/employee relations
Empowerment benefits to employee
May feel valuedGreater chance of promotionImproved payImproved skillsEmployees may be given extra trainingImproved motivation
Criticisms of Empowerment
Is it more work for less money?
Not all workers like freedom and responsibility. Some like to be told what to do.
Recap…
Motivation and NeedsMaslowHerzbergFactors of MotivationEmpowerment
Today… Recruitment Stages
1. Identify a Job Vacancy2. Conduct a Job Analysis3. Prepare a Job Description4. Prepare a Person Specification5. Advertise the job vacancy
Internally or Externally
Identify Job Vacancy
Could occur due to:
An employee leaving organisationAn employee being promotedA new post being created
Conduct Job Analysis
This identifies:Tasks to be performedSkills neededDuties & responsibilities
Gives idea of ideal candidate
Prepare Job Description
This states:Job titleLocationTasksDuties & ResponsibilitiesHoursHoliday Entitlements
Prepare Person Specification
A description of the type of person suitable for post is drawn up. This includes:QualificationsExperiencePersonal qualitiesHobbies & Interests
Advertising PostInternal and External
Internal
NewslettersNotice board
External
Newspaper AdvertsInternetJob CentreRecruitment AgencySchools/Colleges/ Universities
Internal Recruitment
AdvantagesApplicant & ability familiar to organisationOrganisation may have invested in person through trainingIndividual aware of culture (no need for induction training)
DisadvantagesLimited skills poolOwn Job needed to be filledResentment from overlooked staff
External Recruitment
AdvantagesCan target specific sections of populationWider job skills poolNo need to fill another post
DisadvantagesExpensiveTime taken can be longSuccessful candidates may turn down job
Recap… Recruitment Stages
1. Identify a Job Vacancy2. Conduct a Job Analysis3. Prepare a Job Description4. Prepare a Person Specification5. Advertise the job vacancy
Internally or Externally
Today… Selection Methods
InterviewsApplication FormsCVs and ReferencesTestsAssessment Centres
Interviews
One-to-one interviewSuccessive interviewPanel interview
Application Forms
Initial contact, checked against the Person Specification to select suitable candidates for vacancyUsually in conjunction with CV
CV
Curriculum Vitae or life historyPersonal DetailsEducationQualificationsWork ExperienceHobbies/InterestsAdditional Info
Tests
Attainment testsAptitude testsIQ testsPsychometric testsMedical tests
Assessment Centres
Activities:Team buildingRole PlayInterviews
Qualities looked for:Social skills, leadership qualities & personality
Intensive assessment held over one or two days
Selection Methods:
% used by business
Interviews 92
References74
Assessment
Centres 14
Aptitude Tests 11
Graphology 3
Validity at predicting work performance(0 = no use; 1 = very helpful)
0.17
0.13
0.40
0.54
0.00
Assessment Advantages Disadvantages
Mental Ability tests (IQ)
useful predictors of performance across a wide variety of jobsAre usually easy
and inexpensive to administer
Use of ability tests can result in high levels of adverse impactcan be costly to
develop & administer
Employment interviews
Structured interviews, based on job analyses, tend to be validMay reduce
adverse impact if used in conjunction with other tests
Unstructured interviews typically have poor validitySkill of the
interviewer is critical
Assessment Advantages Disadvantages
Assessment Centres
Good predictors of performance, managerial potential, & leadership abilityApply the whole-person
approach to personnel assessment
Can be expensive to develop & administerSpecialised
training required for assessors;
Reference checks
used to verify information previously provided by applicantsMay encourage
applicants to provide more accurate information
Reports are almost always positive
Recap… Selection Methods
InterviewsApplication FormsCVs and ReferencesTestsAssessment Centres
Today…
Reasons for Training and Development
Training costs and benefits
Induction Training
Training Methods
Reasons for Training and Development
Improve staff performanceImprove productivityStaff more flexibleIncrease job satisfactionStaff more motivatedUpgrade staff skillsReduce injuries & accidents
Training
Costs
Sending people on training costsPaying trainersLoss of output
Benefits
FlexibilityUpgrade skillsEmployee satisfaction
Induction Training
For new employees
Covers aspects of:Company proceduresMeeting colleaguesTasks of jobHealth & safety
Training Methods
On the job – training conducted at employee’s place of work
Off the job – training occurs outside of work e.g. university or college
Training Methods“Sitting next to Nellie” – task demonstrated then trainee undertakes task
Coaching – trainee taken through step by step by trainer
Job Rotation – trainee learns tasks in different departments/jobs
Self-paced/distance learning – trainee receives resources and works on their own
Recap…
Reasons for Training and Development
Training costs and benefits
Induction Training
Training Methods
Today…
Staff DevelopmentAppraisalReasons for AppraisalKeeping Staff RecordsUse of Records
Staff DevelopmentSet targets and have appraisals
Motivate Staff through:Bonuses and financial rewardsEmployee of MonthTeam building/social events
AppraisalAssessment of staff performanceUses Appraisal form then interview
Job focus = Looks for success in meeting goals and targets Person focus = looks for person’s skills and qualities
Problems:Difficult to measurePersonality clashes
Reasons for Appraisal
To identify future training needsConsider individual’s development needsImprove employee performanceProvide feedback on performanceIdentify promotion hopefuls
Keeping Personnel Records
Keeps personal info on every employee
Includes info on appraisals, training etc…
Conforms to the Data Protection Act
Uses of RecordsKey Fields: Unique identifiers like National Insurance Number (Glasgow City Council uses this)
AttendanceDisciplinePerformanceCommunicating (Correspondence)Selection of staff (promotion, training, teams, specific jobs)
Recap…
Staff DevelopmentAppraisalReasons for AppraisalKeeping Staff RecordsUse of Records
Today…
Employee RelationsTrade UnionsTrade Union AimsCollective BargainingGrievanceDiscipline
Employee Relations
“The formal relationship between employees and employers”
Trade Unions
Organisation representing workers re: pay negotiations, working conditions, dismissal, redundancy
Collective bargaining is the basis of unions, whereby a group of workers stand a better chance to negotiate
Trade Unions are funded by annual subscriptions by its members
Trade Union Aims
To improve pay of its membersImprove working conditionsSupport training & development of membersEnsure members’ interests are considered by employers
Collective Bargaining
Begins with a change in existing contractsEmployers make offer to employee repsReps tell members & counter-claim occursNegotiations beginEventually a compromise is usually reached
Grievance
Grievance is a complaint by employee against employer
Can be taken up by:Industrial tribunalACASTrade Union
Discipline
Discipline procedures are taken against employee by employersEmployees must be aware of rulesverbal & written warnings given for breaking rulesSuspensions can follow then dismissal
Recap…
Employee RelationsTrade UnionsTrade Union AimsCollective BargainingGrievanceDiscipline
Today…
ACASNegotiationConsultationArbitrationWorks CouncilsIndustrial Action
ACAS – Advisory, Conciliation & Arbitration Service
Provides impartial information to people with problems at workPrevents & resolves problems at workSettles complaints about employee’s rightsRun workshops & seminars on latest employment issues & legislation
Processes
Negotiation
Consultation
Arbitration
Negotiation
Its purpose is to reach an agreement, but needs some middle ground between the two positions held.Success of the firm should benefit both employee as employers, so it is in their best interests to come to a settlement.Employers and employees discuss matters that are important to both of them in order to come to an agreement. It also involves compromise.
Consultation
Informing employees of new rules and regulations that are being brought in is consultation.The changes may have been forced upon the firm by the Government, therefore no agreement is necessary and employees views are not needed to be taken into account.Final decision lies with the organisation.
Arbitration
When no agreement occurs, then a third party, an independent arbitrator such as ACAS is called in.Arbitrators are neutral and unbiased and will listen to both sides and offer a fair and practical solution.Binding arbitration is when both sides agree to go with the decision of the third party.
Works’ Councils
They are set up by an organisation and contains the same amount of employees and employer representativesGroups meet to discuss any proposed changes before they are implemented.Decisions reached by the council are usually accepted by the workforce as their representatives have been involved.
Industrial ActionEmployee Action
Sit inOvertime banWork to ruleGo slowStrike
Employer Action
Withdrawal of overtimeLock outClosure
Recap…
ACASNegotiationConsultationArbitrationWorks CouncilsIndustrial Action
Today… Legislation
Sex Discrimination Act 1975Race Relations Act 1976Employment Rights Act 1996Equal Pay Act 1970Office, Shops and Railway Premises Act 1963Health and Safety at Work Act 1974
Sex Discrimination Act (1975)
Illegal to discriminate against employee or job applicant on grounds of gender or marital status
Race Relations Act (1976)
Illegal for employers to discriminate against employee or job applicant on grounds of ethnic background
Employment Rights Act (1996)
Covers:
Unfair dismissal
Redundancy
Maternity leave
Equal Pay Act (1970)
Pay conditions must be equal for employees of the opposite sex who are performing same work
Health & Safety at Work Act (1974)
Covers:
Working conditionsProvision of safety equipmentWorkplace hygiene
Office, Shops and Railway Act
Covers:Operating dangerous machinerySeating & Storage spaceLightingFireTemperature/ventilationPremises, Toilets etc…
Not all workers like freedom and responsibility. Some like to be told what to do.
What are the main objectives of HRM?
Describe Maslow’s hierarchy of needs and describe how they are
satisfied through employment
Describe 3 strategies that could be employed to
increase employee motivation
Describe how the structure of the workforce
has changed in recent years
Describe the growing importance of women at
work, and identify the issues that HRM are
having to face
What problems have been presented to firms who have reduced their core
workforce?
Describe the importance of good Human Resource
Planning
Describe the 5 main roles that the HRM department
plays within the organisation
Identify the first 3 stages in the recruitment process
Describe the advantages and disadvantages for
both internal and external recruitment
Explain what procedures are involved in the selection process
Identify and describe the different methods of
training available to the organisation
Describe the benefits of a staff development policy
Identify the main institutions involved in
employee relations
Describe the stages in the employee relations
process
Identify two methods for the successful
management of employee relations
What should a contract of employment include?
What information should be contained in personnel
records?
Identify the major pieces of legislation of concern to
HRM departments