Chapter 6 - Managing Human Resources

6.1 Describe the key components of the HRM process and what influences it

• Functions of HRM Process:• Recruit, select, train, motivate, keep; ensure that competent employees are identified

and selected• provide employees with up-to-date knowledge and skills to do with their jobs

• HRM and the Law - managers not biased in selection process • fair and equitable, non-discriminatory, safe and healthy, protect individual needs • FWA 2009, Disability Discrimination Act 1992, Sex Discrimination Act 1984, Equal

Opportunity for Women in the Workplace Act 1999

6.2 Discuss the tasks associated with identifying and selecting competent employees

• Employment Planning • process by which managers ensure they have the right numbers and kinds of people

in the right places at the right time • organisation’s missions and goals are translated into HR terms to ensure people able

to fulfil the needs associated with them • Stages:

1. Assess current and future HR needs • Human Resource Inventory - report reviewing status of the organisation’s

current human resources (name, education, training, skills, languages spoken, capabilities etc)

• Job Analysis - assessment of the skills, knowledge, attitudes needed to per-form job

• Job Description - written statement that describes role• Job Specification - written statement of the minimum qualifications a person

must possess to perform a given job successfully

2. Develop plan to meet needs • Future HR needs are determined by organisation’s strategic decision. Man-

agers can estimate future revenues and then predict number and mix of peo-ple needed (supply/demand)

• After managers assessed both current capabilities and future needs, can esti-mate where the demand for human resources meets supply

• Recruitment and Selection• Recruitment is locating, identifying and attracting capable applicants

• Sources:• Internal S: low cost, build employee morale, candidates familiar with organisa-

tion. L: limited supply, may not increase proportion of projected group employ-ees, diversity?

• Advertisements S: wide distribution, large pool. L: many unqualified candi-dates

• Employee referrals S: knowledge about organisation, strong candidates be-cause good referral. L: diversity?

• School Placement S: large, centralised body of candidates. L: limited to en-try-level position

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Chapter 6 - Managing Human Resources

• Temporary Help Services S: fill temporary needs L: short term, expensive

• Selection Process• screening job applicants to ensure that the most appropriate candidates are cho-

sen • Testing selection Devices:

• Reliability (consistency) - degree to which selection device measures same thing consistently)

• Validity (relevance) - proven relationship between selection device and some relevant criterion

• Performance-Simulation Tests• based on actual job behaviours (sampling)• S: one of the best was to determine how person will perform (better predic-

tor)• L: time consuming

• Interviews• most universal • S: can be reliable and valid if well structured and standardised, face-to-face • L: bias? type of questions, not good predictor of future performance

• Retaining New Employees - Realistic Job Preview (RJP)• providing only details of positive aspects of job may lead to satisfaction problems

later• include both positive and negative aspects about the job and company, will be better

able to cope with the frustrating elements of the job

6.3 Explain how employees are provided with needed skills and knowledge

• Orientation (Induction)• introducing new employee to job and organisation

• Employee Training • learning experience that seeks a relatively permanent change in employees by im-

proving ability to perform on the job -> changing skills, knowledge, attitudes, behav-iour (ongoing process)

• On the job• Job rotation - exposure to variety of tasks

• Mentoring - working with experienced member of organisation, provides support and encouragement

• Off the job• Lectures - convey specific technical, interpersonal, problem-solving skills

• Films - media to explicitly demonstrate technical skills

• Simulation exercises - learning a job by actually performing it

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Chapter 6 - Managing Human Resources

6.4 Explain how organisations provide a safe working environment

• Organisations have legal, moral and business obligation to provide safe and healthy working environments e.g. Work Health Safety Act 2010 (Cth)

• Safe and healthy workplace - identifying, eliminating, controlling hazards • Training programs • Workplace health and safety audits: equipment, handling practices • Consultation with employee groups, unions, consultants and government agencies • Effective monitoring of productivity, absenteeism, accident/injury rates and workers

compensation

6.5 Describe strategies for retaining competent, high-performing employees

• Performance Management System - system that establishes performance standards that are used to evaluate employee performance (quality). Methods:

• Written essay • Critical incidents• Graphic rating scales • 360-degree appraisal• MBO

• If employee’s performance not put to standard then: • Discipline - actions taken by manager to enforce an organisation’s standards and reg-

ulations • verbal and written warnings• suspension• termination

• Employee Counselling - process designed to help employees overcome perfor-mance-related problems

• Compensation • important for quality of employees, attracting and retaining them • Compensation administration - process of determining cost-effective pay structure

that will attract and retain employees, provide an incentive for them to work hard and ensure that pay levels will be perceived as fair

• Skill-based Pay - rewards employees for the job skills they demonstrate• Variable Pay - pay system where individual’s compensation is contingent on perfor-

mance• Employee benefits - non financial rewards designed to enrich employees e.g. close

location, retirement and health insurance premiums

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Chapter 6 - Managing Human Resources

6.6 Discuss contemporary issues in managing human resources

• Globalisation• competing global basis brings new challenges • International human resource management (IHRM). Address complexity that results

for HR

• Diversity• consider non-traditional recruitment methods • avoid discrimination in selection • increase diversity awareness with current staff • sensitivity training

• Downsizing• planned elimination of jobs in an organisation• Layoff-survivor sickness (survivor syndrome) - set of attitudes, perceptions and be-

haviours of employees who survive layoffs. People more stressed, aware that it ex-ists + counselling. Options:

• reduced workweeks, job sharing, transfers, redundancies, attrition (not replacing staff who retire or resign), firing

• managing downsizing• Communicate openly and honestly• Follow any laws regulating severance pay or benefits • Provide support/ counselling for surviving employees• Boost morale: offer individualised reassurance, communicate one-on-one

• Career Development • career - sequence of work positions held by a person during lifetime • idea of increased personal responsibility for career is called boundaryless career• Career planning - process of matching career goals and individual capabilities with

opportunities for achieving those goals

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