unit 4 area of study 1: the human resource management function
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Unit 4 Area of Study 1: The Human Resource Management Function. Chapter 10: Management of the employment cycle. The Employment Cycle. The stages an employee progresses through from the time they are employed until they leave the organisation - PowerPoint PPT PresentationTRANSCRIPT
Unit 4 Area of Study 1: The Human Resource Management FunctionChapter 10: Management of the employment cycle
The Employment Cycle The stages an employee progresses
through from the time they are employed until they leave the organisation
Pattern repeats itself as new employees are hired to replace those leaving
Three phases of the employment cycle
Establishment Phase
Maintenance Phase
Termination Phase
1. HR Planning2. Job analysis and job
design3. Recruitment4. Selection5. Employment
Arrangements6. Remuneration
1. Induction2. Training and
development3. Performance
Management4. Recognition and
rewards
1. Voluntary Methods2. Involuntary Methods3. Unfair Dismissal4. Termination
Management5. Outplacement6. Transition Services
The Establishment Phase
Human Resource Planning Planning for future personnel needs, taking
into account both internal activities and factors in the external environment
Awareness of factors from internal and external environment include: Structural changes in the labour market –
decline in manufacturing industries Work patterns are changing – flexible working
hours and a move away from traditional working week
(continued on next slide)
Length of working life is changing – later entry into employment, attitudes to retirement
Change in skills and education expectations – more people seeking tertiary qualifications
Labour shortage within the next decade due to the ageing of Australia’s working population
Increasing demand for work-life balance Generational change – difference need to be
acknowledged and worked around Change in strategic direction of organisations –
downsizing operations
HR Management must plan to assist the organisation to: Meet current employment requirements in all
phases of the employment cycle Cater for future needs by determining how
many employees will be required and what specific skills they must have
Ensure that the required human resources will be available to achieve the organisations strategic plan
Be in a position to assist the organisation to respond to external factors
Activity 10.1
Job Analysis Job analysis: systematic process of
gathering information relating to a job being performed. Finding out all the information about a job.
Job design: creating a new job or altering an existing position.
Job description: written statement of tasks performed, how and why they are done (job title, summary, responsibilities, duties, key performance indicators)
Job specification: the person’s experience, qualifications, skills, abilities, knowledge, remuneration and special requirements of the person
Methods used to conduct a job analysis: 1. Interviewing the present job holder –
can be time consuming 2. Questionnaires – allows for information
on a large number of jobs to be collected in a short period of time
3. Observation – job holder could be watched
4. Supervisory reports – details provided by supervision to give perception of what the job entails
5. Log books and daily work diaries – completed by the job holder
Activity 10.2
Recruitment The process of finding the best qualified
pool of applicants Process begins with:
Identifying human resource requirements Determining where the qualified pool of
applicants can be found (recruitment sources)
Choosing a specific means of attracting employees to the organisation (recruitment methods)
Identifying human resource requirements Ensure that people recruited and
selected have the unique skills and attributes required by the organisation
Determine whether the focus is on technical skills and formal qualifications or personality and the potential for personal and career development
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages Disadvantages
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to position
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to positionIncentive for employees to gain career progression
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to positionIncentive for employees to gain career progressionMotivator and morale booster
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to positionIncentive for employees to gain career progressionMotivator and morale booster
Organisation knows applicant, applicant knows organisation
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to position
Employees may be promoted beyond competency level
Incentive for employees to gain career progressionMotivator and morale booster
Organisation knows applicant, applicant knows organisation
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to position
Employees may be promoted beyond competency level
Incentive for employees to gain career progression
No new ideas introduced, could stifle creativity
Motivator and morale booster
Organisation knows applicant, applicant knows organisation
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to position
Employees may be promoted beyond competency level
Incentive for employees to gain career progression
No new ideas introduced, could stifle creativity
Motivator and morale booster Infighting and negative impact for unsuccessful applicants
Organisation knows applicant, applicant knows organisation
Recruitment Sources Internal Recruitment: positions
advertised within the organisation to allow employees career advancement by transferring or being promoted
Advantages DisadvantagesQuicker adjustment to position
Employees may be promoted beyond competency level
Incentive for employees to gain career progression
No new ideas introduced, could stifle creativity
Motivator and morale booster Infighting and negative impact for unsuccessful applicants
Organisation knows applicant, applicant knows organisation
Any poor work habits will remain
External Recruitment: Locating candidates from outside of the organisation
Advantages Disadvantages
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants
New insights, skills and abilities bought to organisation
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants
New insights, skills and abilities bought to organisationCosts can be lower as do not have to fill two positions
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants
New insights, skills and abilities bought to organisationCosts can be lower as do not have to fill two positionsNew approach to work, issues and problems
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants Attracting/selection of new
employee is time consuming and difficult
New insights, skills and abilities bought to organisationCosts can be lower as do not have to fill two positionsNew approach to work, issues and problems
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants Attracting/selection of new
employee is time consuming and difficult
New insights, skills and abilities bought to organisation
Induction takes longer
Costs can be lower as do not have to fill two positionsNew approach to work, issues and problems
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants Attracting/selection of new
employee is time consuming and difficult
New insights, skills and abilities bought to organisation
Induction takes longer
Costs can be lower as do not have to fill two positions
Limits career advancement of existing employees
New approach to work, issues and problems
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants Attracting/selection of new
employee is time consuming and difficult
New insights, skills and abilities bought to organisation
Induction takes longer
Costs can be lower as do not have to fill two positions
Limits career advancement of existing employees
New approach to work, issues and problems
Greater element of risk as new employee is an ‘unknown’ person
External Recruitment: Locating candidates from outside of the organisation
Advantages DisadvantagesLarger pool of applicants Attracting/selection of new
employee is time consuming and difficult
New insights, skills and abilities bought to organisation
Induction takes longer
Costs can be lower as do not have to fill two positions
Limits career advancement of existing employees
New approach to work, issues and problems
Greater element of risk as new employee is an ‘unknown’ personCostly form of recruitment
Recruitment Methods Newspapers – large, well-known employment
sections in certain editions of local and national newspapers
Internet sites – those seeking jobs can enter specific details of the position they want
Business websites – often used in conjunction with other methods
Recruitment agencies – time is money so an organisation may outsource the initial stages of recruitment who screens out non-suitable applicants
Word of mouth – ‘head hunting’ is actively pursuing one person wanted for a position and offering them an attractive package to leave organisation for which they currently work
Activity 10.3
Activity 10.5
Selection Selection is the
process undertaken by an organisation to decide whether to make a job offer to a candidate
The following are strategies used to select the best candidate
Selection Criteria
A list of what the organisation is looking for in the applicants for new positions
Include: Qualifications or
experience Skills Personal qualities
Receipt of application
Application: the letter or communication used in expressing interest in a job or advertised vacancy
Application form: basic source of employment information covering qualifications, experience and other job-related data
Initial screening Eliminates
applicants who do not possess the skills and expertise required for the position
Shortlist of applicants to be created for interviewing
Interviews 1. Planning the
interview 2. Create the interview
environment 3. Opening the interview 4. Questioning 5. Understand the legal
requirements 6. Listen and observe 7. Sell the job and the
organisation 8. Close the interview 9. Evaluate the
applicants
Testing Provides a scientific
component to recruitment
Aptitude test: test of special abilities that are required for a specific job
Personality or temperament questionnaire
Motivational questionnaire
Competency testing Physical examination
Background investigation
Reference checks provide important opportunities to learn more about candidates
Wise to check academic qualifications
Police check can be undertaken
Advising applicants of outcome
Position needs to be officially offered to the successful applicant
Remaining unsuccessful short-listed applicants need to be advised of their non-success
Employment Arrangements Permanent full-time basis – continuing contract of
employment, working 38 hours per week, entitled to salary or wages, leave entitlements and superannuation as well as long service leave
Permanent part-time basis – continuing contract working fewer hours than full-time, same entitlements made on a pro-rata basis
Casual basis – short-term, irregular or seasonal work. Usually paid on an hourly basis and no employement benefits such as leave
Fixed-term basis – either full-time or part-time for project work or to replace employees absent on long service or parental leave
Types of remuneration Wages – worked out on an hourly basis, overtime paid if an
employee exceeds ordinary hours. Penalty rates may be paid for Sundays and public holidays.
Salary – annual figure usually paid on a monthly or fortnightly basis. Overtime not paid to salaried employees.
Packages – use for senior positions, include a salary component, performance-based pay, company car, share options and other fringe benefits
Benefits – can be categorised as dependent care assistance programs (family care, maternity/paternity leave, alternative work arrangements) or benefit plans (additional superannuation, travel insurance, life insurance, medical benefits)
Maintenance Phase
Induction Induction: all the activities undertaken
by the organisation to introduce a new employee to the organisation
Aim is to familiarise the new employee with their workplace so that they can perform to their maximum ability as soon as possible
Induction Procedures New employee
introduced to colleagues and organisational structure and day-to-day practices
Often a buddy or mentor is assigned to the new employee to show the new person the ropes
Policies and procedures of the organisation should be explained to the new staff member. Can be a formal induction process.
Even mundane matters should be covered
Benefits of Induction
For the organisation: recruitment process costly
and a good induction program can help the employee feel motivated and ensure morale is high.
Allows them to be productive almost straight away
For the employee: Will be put at ease with a
well-conducted induction program
Feel a sense of purpose and achievement, increasing their feelings of self-esteem
Training and Development Training: process of developing workplace skills
needed to do a job May be necessary right at the start of
employment. HR Manager conducts a training needs analysis:
Who needs to be trained? Should training be done at the organisation or
outside? If internally should training be provided by
someone in-house or by an external provider? How is the training going to be evaluated? Will follow-up training be required at a later date?
Development: activities an employee undertakes to help prepare them to take on more responsibility in the future (e.g. promotions and long term opportunities)
Training is often skill based (e.g. learning how to operate a new piece of machinery) whereas development focuses more on increasing the knowledge base of employees.
Benefits of training and development: Improved employee performance and therefore
profitability Reduced absenteeism and reduced staff turnover Increased efficiency in how things are done
(processes) Increased job satisfaction, morale and motivation
among employees
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages Disadvantages
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages DisadvantagesRecognition is immediate and not linked to normal remuneration
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages DisadvantagesRecognition is immediate and not linked to normal remunerationReward boosts recognition from colleagues
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages DisadvantagesRecognition is immediate and not linked to normal remunerationReward boosts recognition from colleaguesWinning the reward is more valuable than the monetary value of the reward
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages DisadvantagesRecognition is immediate and not linked to normal remuneration
Colleagues may perceive favouritism has taken place
Reward boosts recognition from colleaguesWinning the reward is more valuable than the monetary value of the reward
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages DisadvantagesRecognition is immediate and not linked to normal remuneration
Colleagues may perceive favouritism has taken place
Reward boosts recognition from colleagues
Costly in terms of administration and time
Winning the reward is more valuable than the monetary value of the reward
Recognition and Rewards Recognition programs may acknowledge
achievement by giving financial and/or non-financial rewards
Rewards may be given for: Achieving a target Being the best compared with others
Advantages DisadvantagesRecognition is immediate and not linked to normal remuneration
Colleagues may perceive favouritism has taken place
Reward boosts recognition from colleagues
Costly in terms of administration and time
Winning the reward is more valuable than the monetary value of the reward
Loss of motivation if employee feels they will never receive a reward
Performance Management Performance management: the various
methods of achieving the maximum performance levels that are possible from employees
Effective performance management ensures that: Jobs are well designed in the first place Skilled employees are hired to do the job Employees are trained properly Employees are appropriately rewarded for good
performance
Performance appraisal: evaluations of an employee’s work over a period of time
Involves: Assessing how well an employee is doing their job Providing feedback to the employee about job
performance Agreeing on new objectives and establishing a plan to
improve future performance Purpose of appraisal is to:
Identify what objectives are the most important to accomplish
Establish how objectives are measured so that performance can be monitor
Make individual employees accountable for their performance
Help improve an employee’s performance Identify training needs
Performance appraisal outcomes Remuneration and rewards Training and development Counselling Job promotion Job rotation/transfer Termination
Termination Phase
Outcomes
Voluntary
Resignation Retirement
Involuntary
Retrenchment Dismissal
Voluntary Termination Methods Resignation: An employee chooses to leave
an organisation – often this is because they have another job to go to
An exit interview is recommended as it helps to highlight if there are any organisational problems causing the resignation
Retirement: The situation where an employee has decided that they are at the end of their working life.
Has traditionally ben at the age of 65 for men and 60 for women but is not compulsory in Australia
Involuntary Termination Methods Redundancy: when there is no longer a
position for one or more employees. Redundancy packages are offered which is usually an amount of money based on the number of employment at that organisation
Retrenchment: Employees are ‘let go’ based on the financial needs of the organisation (e.g. downsizing)
Dismissal: Situation where an employee is fired due to a serious breach of their employment contract or fail to perform the job adequately (have been put ‘on notice’ and fail to improve their performance)
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employee
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employeeReduction in costs, e.g. wages and overheads
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employeeReduction in costs, e.g. wages and overheadsChange in organisation’s structure
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employee
Loss of talent
Reduction in costs, e.g. wages and overheadsChange in organisation’s structure
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employee
Loss of talent
Reduction in costs, e.g. wages and overheads
Decline in morale
Change in organisation’s structure
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employee
Loss of talent
Reduction in costs, e.g. wages and overheads
Decline in morale
Change in organisation’s structure
Breakdown of effective teams
Effects on an organisation from involuntary employee departure.Positive NegativeCutting of a non-productive employee
Loss of talent
Reduction in costs, e.g. wages and overheads
Decline in morale
Change in organisation’s structure
Breakdown of effective teamsIncreased pressure on performance of remaining staff
Unfair Dismissal An employee can apply to Fair Work
Australia if they believe their employment was terminated for an unlawful or discriminatory reason
Employees who work for a business that employs 15 or more staff may complain about unfair dismissal as of 2009
Termination Management HR Manager must ensure that an employee who is
leaving is given certain entitlements It is also their job to see that the transition from
employment to termination is conducted appropriately and within the law
In the case of redundancy the HR manager should: Have explored the possibility of redeploying or
relocating the employee Give the employee reasonable notice of the expected
redundancy Provide reasonable redundancy benefits Provide additional services Ensure the process of choosing who is to be made
redundant is fair and unbiased
Outplacement Services Services provided to assist employees who have
been retrenched to gain new work 60% of LSOs in Australia not provide outplacement
consultants to assist employees making the transition Involves:
Counselling to counteract negative feelings associated with retrenchment
Skill development in how to look for employment opportunities
Assistance in writing resumes, interview techniques Cost is borne by the former employer and is seen as
rewarding the employee for loyal service Shows remaining staff that organisation cares about
its people
Transition Services Provided to employees who are retiring
and need assistance to organise their finances, lifestyle planning and volunteering activities
Employees often find it hard to completely cut themselves off from the business world