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Human Resource Management Int 2


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Human Resource Management Int 2

  1. 1. Human Resource Management Int 2Business Management
  2. 2. Role and Importance of Human Resource Management (HRM) <ul><li>The most valuable asset in any organisation is its workforce. </li></ul><ul><li>It is the human resources that generate wealth by providing services and producing goods. </li></ul><ul><li>Care must be taken over employees especially if they want to secure and retain staff. </li></ul>
  3. 3. Function of Human Resources <ul><li>HRP </li></ul><ul><li>Recruitment and Selection </li></ul><ul><li>Training and Development </li></ul><ul><li>Maintenance of Personnel Records </li></ul><ul><li>Legislation </li></ul><ul><li>Employee Relations </li></ul><ul><li>Grievance and Discipline </li></ul>
  4. 4. Motivation & Needs <ul><li>Maslow’s Hierarchy of Needs </li></ul><ul><li>Needs at top more important than at bottom </li></ul><ul><li>But lower needs have to be satisfied first </li></ul>
  5. 5. Factors of Motivation <ul><li>pay levels </li></ul><ul><li>job security </li></ul><ul><li>promotional prospects </li></ul><ul><li>Responsibility </li></ul><ul><li>working conditions </li></ul><ul><li>fringe benefits </li></ul><ul><li>participation in decision-making </li></ul><ul><li>working in a team </li></ul>
  6. 6. Motivation <ul><li>Financial Methods </li></ul><ul><li>Flat rate, piece rate, commission. PRP, profit sharing, share ownership </li></ul><ul><li>Non-Financial Methods </li></ul><ul><li>Empowerment, delegation, job enrichment, job enlargement, job rotation, quality circles </li></ul>
  7. 7. Steps in Recruitment <ul><li>Is there a vacancy in the organisation </li></ul><ul><li>What does the job involve </li></ul><ul><li>Where are we going to attract our applicants from? </li></ul><ul><li>Process of selection </li></ul>
  8. 8. Identify Job Vacancy <ul><li>Could occur due to: </li></ul><ul><li>An employee leaving organisation </li></ul><ul><li>An employee being promoted </li></ul><ul><li>A new post being created </li></ul>
  9. 9. Conduct Job Analysis <ul><li>This identifies: </li></ul><ul><li>Tasks to be performed </li></ul><ul><li>Skills needed (both physical & mental) </li></ul><ul><li>Duties & responsibilities (and accountability) </li></ul><ul><li>Environment job takes place (including any hazards) </li></ul><ul><li>Gives idea if a position is needed </li></ul>
  10. 10. Prepare Job Description <ul><li>This states: </li></ul><ul><li>Job title </li></ul><ul><li>Location </li></ul><ul><li>Tasks </li></ul><ul><li>Duties & Responsibilities </li></ul><ul><li>Hours </li></ul><ul><li>Holiday Entitlements </li></ul><ul><li>Qualifications required by applicant </li></ul>
  11. 11. Prepare Person Specification <ul><li>A description of the type of person suitable for post is drawn up. This includes: </li></ul><ul><li>Qualifications </li></ul><ul><li>Experience </li></ul><ul><li>Personal qualities </li></ul><ul><li>Hobbies & Interests </li></ul>
  12. 12. Advertising Post Internal and External <ul><li>Internal </li></ul><ul><li>Newsletters </li></ul><ul><li>Notice board </li></ul><ul><li>External </li></ul><ul><li>Newspaper Adverts </li></ul><ul><li>Internet </li></ul><ul><li>Job Centre </li></ul><ul><li>Recruitment Agency </li></ul><ul><li>Schools/Colleges/ Universities </li></ul>
  13. 13. Internal Recruitment <ul><li>Advantages </li></ul><ul><li>Applicant & ability familiar to organisation </li></ul><ul><li>Organisation may have invested in person through training </li></ul><ul><li>Individual aware of culture (no need for induction training) </li></ul><ul><li>Disadvantages </li></ul><ul><li>Limited skills pool </li></ul><ul><li>Own Job needed to be filled </li></ul><ul><li>Resentment from overlooked staff </li></ul>
  14. 14. External Recruitment <ul><li>Advantages </li></ul><ul><li>Can target specific sections of population </li></ul><ul><li>Wider job skills pool </li></ul><ul><li>No need to fill another post </li></ul><ul><li>Disadvantages </li></ul><ul><li>Expensive </li></ul><ul><li>Time taken can be long </li></ul><ul><li>Successful candidates may turn down job </li></ul>
  15. 15. First Steps in Selection <ul><li>When applications are received they </li></ul><ul><li>should be divided into 3 categories: </li></ul><ul><li>Seems suitable – invite to interview </li></ul><ul><li>Possibly suitable – invite for interview if not enough in Category 1 </li></ul><ul><li>Unsuitable – send polite letter of rejection </li></ul><ul><li>Then a shortlist is created </li></ul>
  16. 16. Application Forms <ul><li>Initial contact, checked against the Person Specification to select suitable candidates for vacancy </li></ul><ul><li>Usually in conjunction with CV </li></ul>
  17. 17. CV <ul><li>Curriculum Vitae or life history </li></ul><ul><li>Personal Details </li></ul><ul><li>Education </li></ul><ul><li>Qualifications </li></ul><ul><li>Work Experience </li></ul><ul><li>Hobbies/Interests </li></ul><ul><li>Additional Info </li></ul>
  18. 18. Interviews <ul><li>One-to-one interview </li></ul><ul><li>Successive interview </li></ul><ul><li>Panel interview </li></ul>
  19. 19. A ‘Good’ Interview <ul><li>An interviewer should: </li></ul><ul><li>Be open minded and unbiased </li></ul><ul><li>Be prepared </li></ul><ul><li>Welcome the interviewee </li></ul><ul><li>Control the interview </li></ul><ul><li>Supply the information </li></ul><ul><li>Close the interview </li></ul><ul><li>Follow-up </li></ul>
  20. 20. Tests <ul><li>Attainment tests </li></ul><ul><li>Aptitude tests </li></ul><ul><li>IQ tests </li></ul><ul><li>Psychometric tests </li></ul><ul><li>Medical tests </li></ul>
  21. 21. Assessment Centres <ul><li>Activities: </li></ul><ul><li>Team building </li></ul><ul><li>Role Play </li></ul><ul><li>Interviews </li></ul><ul><li>Qualities looked for: </li></ul><ul><li>Social skills, leadership qualities & personality </li></ul><ul><li>Intensive assessment held over one or two days </li></ul>
  22. 22. <ul><li>Selection Methods: </li></ul><ul><li>% used by business </li></ul><ul><li>Interviews 92 </li></ul><ul><li>References 74 </li></ul><ul><li>Assessment </li></ul><ul><li>Centres 14 </li></ul><ul><li>Aptitude Tests 11 </li></ul><ul><li>Graphology 3 </li></ul><ul><li>Validity at predicting work performance </li></ul><ul><li>(0 = no use; 1 = very helpful) </li></ul><ul><li>0.17 </li></ul><ul><li>0.13 </li></ul><ul><li>0.40 </li></ul><ul><li>0.54 </li></ul><ul><li>0.00 </li></ul>
  23. 23. <ul><li>Unstructured interviews typically have poor validity </li></ul><ul><li>Skill of the interviewer is critical </li></ul><ul><li>Structured interviews, based on job analyses, tend to be valid </li></ul><ul><li>May reduce adverse impact if used in conjunction with other tests </li></ul>Employment interviews <ul><li>Use of ability tests can result in high levels of adverse impact </li></ul><ul><li>can be costly to develop & administer </li></ul><ul><li>useful predictors of performance across a wide variety of jobs </li></ul><ul><li>Are usually easy and inexpensive to administer </li></ul>Mental Ability tests (IQ) Disadvantages Advantages Assessment
  24. 24. <ul><li>Reports are almost always positive </li></ul><ul><li>used to verify information previously provided by applicants </li></ul><ul><li>May encourage applicants to provide more accurate information </li></ul>Reference checks <ul><li>Can be expensive to develop & administer </li></ul><ul><li>Specialised training required for assessors; </li></ul><ul><li>Good predictors of performance, managerial potential, & leadership ability </li></ul><ul><li>Apply the whole-person approach to personnel assessment </li></ul>Assessment Centres Disadvantages Advantages Assessment
  25. 25. Reasons for Training and Development <ul><li>Improve staff performance </li></ul><ul><li>Improve productivity </li></ul><ul><li>Staff more flexible </li></ul><ul><li>Increase job satisfaction </li></ul><ul><li>Staff more motivated </li></ul><ul><li>Upgrade staff skills </li></ul><ul><li>Reduce injuries & accidents </li></ul>
  26. 26. Training <ul><li>Costs </li></ul><ul><li>Sending people on training costs </li></ul><ul><li>Paying trainers </li></ul><ul><li>Loss of output </li></ul><ul><li>Benefits </li></ul><ul><li>Flexibility </li></ul><ul><li>Upgrade skills </li></ul><ul><li>Employee satisfaction </li></ul><ul><li>Improved image for organisation </li></ul><ul><li>Motivation and productivity </li></ul>
  27. 27. Induction Training <ul><li>For new employees </li></ul><ul><li>Covers aspects of: </li></ul><ul><li>Company procedures </li></ul><ul><li>Meeting colleagues </li></ul><ul><li>Tasks of job </li></ul><ul><li>Health & safety </li></ul>
  28. 28. Training Methods <ul><li>On the job – training conducted at employee’s place of work </li></ul><ul><li>Off the job – training occurs outside of work e.g. university or college </li></ul>
  29. 29. Training Methods <ul><li>“ Sitting next to Nellie” – task demonstrated then trainee undertakes task </li></ul><ul><li>Coaching – trainee taken through step by step by trainer </li></ul><ul><li>Job Rotation – trainee learns tasks in different departments/jobs </li></ul><ul><li>Self-paced/distance learning – trainee receives resources and works on their own </li></ul>
  30. 30. Staff Development <ul><li>Set targets and have appraisals </li></ul><ul><li>Motivate Staff through: </li></ul><ul><li>Bonuses and financial rewards </li></ul><ul><li>Employee of Month </li></ul><ul><li>Team building/social events </li></ul>
  31. 31. Appraisal <ul><li>Assessment of staff performance usually held annually </li></ul><ul><li>Uses Appraisal form then interview </li></ul><ul><li>Job focus = Looks for success in meeting goals and targets </li></ul><ul><li>Person focus = looks for person’s skills and qualities </li></ul><ul><li>Problems: </li></ul><ul><li>Difficult to measure </li></ul><ul><li>Personality clashes </li></ul>
  32. 32. Reasons for Appraisal <ul><li>To identify future training needs </li></ul><ul><li>Consider individual’s development needs </li></ul><ul><li>Improve employee performance </li></ul><ul><li>Provide feedback on performance </li></ul><ul><li>Identify promotion hopefuls </li></ul>
  33. 33. Keeping Personnel Records <ul><li>Keeps personal info on every employee </li></ul><ul><li>Includes info on appraisals, training etc… </li></ul><ul><li>Conforms to the Data Protection Act </li></ul>
  34. 34. Uses of Records <ul><li>Key Fields: Unique identifiers like National Insurance Number (Glasgow City Council uses this) </li></ul><ul><li>Attendance </li></ul><ul><li>Discipline </li></ul><ul><li>Performance </li></ul><ul><li>Communicating (Correspondence) </li></ul><ul><li>Selection of staff (promotion, training, teams, specific jobs) </li></ul>
  35. 35. Employee Relations <ul><li>“ The formal relationship between employees and employers” </li></ul><ul><li>It refers mainly to the way employers deal with employees either as individuals or as part of a group. </li></ul><ul><li>Industrial relations is part of employee relations that involves dealings between employers and trade unions </li></ul>
  36. 36. Main areas covered by Employee Relations Policies: <ul><li>Trade Union recognition </li></ul><ul><li>Collective Bargaining </li></ul><ul><li>Employee relations procedures </li></ul><ul><li>The employment relationship </li></ul><ul><li>Participation and involvement </li></ul>
  37. 37. ACAS – Advisory, Conciliation & Arbitration Service <ul><li>Provides impartial information to people with problems at work </li></ul><ul><li>Prevents & resolves problems at work </li></ul><ul><li>Settles complaints about employee’s rights </li></ul><ul><li>Run workshops & seminars on latest employment issues & legislation </li></ul>
  38. 38. Employers Associations <ul><li>These are organisations that represent the views and interests of companies within one sector of industry </li></ul><ul><li>Newspaper Society, Engineering Employers’ Association are such examples </li></ul><ul><li>They provide a range of services: </li></ul><ul><li>They act as a pressure group </li></ul><ul><li>A collective market research organisation </li></ul><ul><li>A public relations voice for the industry </li></ul><ul><li>Can provide negotiating teams </li></ul>
  39. 39. Trade Unions <ul><li>Organisation representing workers re: pay negotiations, working conditions, dismissal, redundancy. NUM and EIS are examples of Unions </li></ul><ul><li>Collective bargaining is the basis of unions, whereby a group of workers stand a better chance to negotiate </li></ul><ul><li>Trade Unions are funded by annual subscriptions by its members </li></ul>
  40. 40. Trade Union Aims <ul><li>To improve pay of its members </li></ul><ul><li>Improve working conditions </li></ul><ul><li>Support training & development of members </li></ul><ul><li>Ensure members’ interests are considered by employers </li></ul>
  41. 41. CBI v TUC <ul><li>The Confederation of British Industry (CBI) and the Trade Unions Congress (TUC) are counterparts. </li></ul><ul><li>CBI represents the employers associations, whereas the TUC represents the different workers’ unions </li></ul>
  42. 42. Professional Associations <ul><li>These organisations represent ‘professional’ occupations such as the BMA (British Medical Association) for Doctors, for the Police – the Police Federation and even for footballers: the PFA </li></ul><ul><li>They sometimes perform similar roles to unions, and also are involved in maintaining standards, etiquette and codes of conduct </li></ul>
  43. 43. Works Councils <ul><li>They are set up by an organisation and contains the same amount of employees and employer representatives </li></ul><ul><li>Groups meet to discuss any proposed changes before they are implemented </li></ul><ul><li>Decisions reached by the council are usually accepted by the workforce as their representatives have been involved </li></ul>
  44. 44. Industrial Action <ul><li>Employee Action </li></ul><ul><li>Sit in </li></ul><ul><li>Overtime ban </li></ul><ul><li>Work to rule </li></ul><ul><li>Go slow </li></ul><ul><li>Strike </li></ul><ul><li>Employer Action </li></ul><ul><li>Withdrawal of overtime </li></ul><ul><li>Lock out </li></ul><ul><li>Closure </li></ul>
  45. 45. Sex Discrimination Act (1975) <ul><li>Illegal to discriminate against employee or job applicant on grounds of gender or marital status </li></ul>
  46. 46. Race Relations Act (1976) <ul><li>Illegal for employers to discriminate against employee or job applicant on grounds of ethnic background </li></ul>
  47. 47. Employment Rights Act (1996) <ul><li>Covers: </li></ul><ul><li>Unfair dismissal </li></ul><ul><li>Redundancy </li></ul><ul><li>Maternity leave </li></ul>
  48. 48. Equal Pay Act (1970) <ul><li>Pay conditions must be equal for employees of the opposite sex who are performing same work </li></ul>
  49. 49. Health & Safety at Work Act (1974) <ul><li>Covers: </li></ul><ul><li>Working conditions </li></ul><ul><li>Provision of safety equipment </li></ul><ul><li>Workplace hygiene </li></ul>
  50. 50. Office, Shops and Railway Act <ul><li>Covers: </li></ul><ul><li>Operating dangerous machinery </li></ul><ul><li>Seating & Storage space </li></ul><ul><li>Lighting </li></ul><ul><li>Fire </li></ul><ul><li>Temperature/ventilation </li></ul><ul><li>Premises, Toilets etc… </li></ul><ul><li>Not all workers like freedom and responsibility. Some like to be told what to do. </li></ul>