Human Resource Management


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Human Resource Management

  1. 1. Higher Business Management Unit 2 Learning Outcome 4 Human Resource Management
  2. 2. The Role of People in Organisations <ul><li>People are probably the most valuable “resource” that an organisation possesses. </li></ul><ul><li>In the same way that machinery must be maintained, staff have to be looked after in such a way that they can produce their best effort. </li></ul><ul><li>This involves their welfare , training , safety and motivation . Also would deal with recruitment, disciplining, compliance with legislation. </li></ul><ul><li>A happy workforce is likely to be an efficient workforce. </li></ul>
  3. 3. Changing Patterns of Employment <ul><li>movement away from primary and secondary industries to tertiary sector - more employed in the of provision services </li></ul><ul><li>full-time employment has stayed fairly static </li></ul><ul><li>Increase in part-time and short-term contracts </li></ul><ul><li>Increase in home working and tele-working </li></ul><ul><li>Greater flexibility of the workforce </li></ul><ul><li>Many more women in employment </li></ul><ul><li>Increase in self-employment </li></ul>primary secondary tertiary
  4. 4. The Modern Workforce <ul><li>The Core Workers </li></ul><ul><li>Essential workers - managers, skilled workers - permanent and well-paid </li></ul><ul><li>The Contractual Fringe </li></ul><ul><li>Sub-contractors - suppliers of components or services - cheaper (no pensions, holidays etc) </li></ul><ul><li>The Flexible Labour Force </li></ul><ul><li>Part-time, temporary - help core workers at peak times - low rates of pay </li></ul>
  5. 5. The New Employment Pattern <ul><li>Advantages </li></ul><ul><li>Core employees can focus on core activities only </li></ul><ul><li>Saves on salaries and space </li></ul><ul><li>No need to pay for pensions, holidays or redundancy </li></ul><ul><li>Reduced NI contributions </li></ul><ul><li>Allows flexibility and can respond quickly to change </li></ul><ul><li>Disadvantages </li></ul><ul><li>Frequent recruitment and selection </li></ul><ul><li>Occasional staff shortages </li></ul><ul><li>Less commitment from staff </li></ul><ul><li>Increased need for training due to high staff turnover </li></ul><ul><li>Lack of continuity of staff - customers may become unhappy </li></ul>
  6. 6. TASK <ul><li>Discuss the way in which employment patterns have changed over the last 20 years (6) </li></ul>
  7. 7. Human Resource Management (HRM) refers to that part of an organisation’s activities designed to attract , train , develop and maintain an effective workforce
  8. 8. HRM Functions within the Organisation Executive - experts in the HRM area - policies developed in line with legal requirements Audit - policies properly implemented Facilitator - training of staff to respond to HRM issues Consultancy - advice and guidance to managers on HRM problems Service - providing up-to-date information on legislation
  9. 9. HRM – DM LEVELS <ul><li>TACTICAL </li></ul><ul><li>Human Resource planning </li></ul><ul><li>Recruitment of specialised staff </li></ul><ul><li>Staff training and development </li></ul><ul><li>Promoting effective industrial relations </li></ul><ul><li>OPERATIONAL </li></ul><ul><li>Identifying training needs </li></ul><ul><li>Encourage staff to accept training </li></ul><ul><li>Arrange the training </li></ul><ul><li>Deal with day-to-day issues such as absenteeism, grievances, welfare, etc </li></ul><ul><li>STRATEGIC </li></ul><ul><li>Formulate personnel policies for the organisation as a whole </li></ul><ul><li>Devise guidelines for implementation of policies </li></ul><ul><li>Working towards corporate goals - defining corporate culture </li></ul>
  10. 11. Hr planning <ul><li>HR Planning is the method by which a business forecasts how many and what type of employees it needs now and in the future . </li></ul><ul><li>Forecasting employee demand involves </li></ul><ul><ul><li>using past information </li></ul></ul><ul><ul><li>analysing current employment trends </li></ul></ul><ul><ul><li>estimating future staffing </li></ul></ul><ul><ul><li>forecasting future supply of workers with appropriate skills </li></ul></ul><ul><ul><li>estimating workers’ productivity </li></ul></ul><ul><ul><li>employing work study </li></ul></ul><ul><ul><li>calculating staff turnover </li></ul></ul><ul><ul><li>using business and management knowledge </li></ul></ul>
  11. 12. . Employees can be grouped under 4 headings <ul><li>New staff – induction/contract of employment </li></ul><ul><li>Potential staff – advertising, recruitment, selection, </li></ul><ul><li>Existing staff – appraisal, continuing professional development </li></ul><ul><li>Departing staff – retirement packages/grievance </li></ul>
  13. 14. Possible areas of influence <ul><li>Political – changes in legislation, eg working week, paternity leave, minimum wage, retirement age </li></ul><ul><li>Economic – boom or recession in the UK/world economy, number of unemployed </li></ul><ul><li>Social – number of women working, type of working patterns demanded, holidays, retirement age </li></ul><ul><li>Technological – robots, computer aided design, remote working. </li></ul>
  14. 15. HR RECORDS <ul><li>PERSONAL HISTORY – most of this will be taken from the application form and then added to. </li></ul><ul><li>EMPLOYMENT HISTORY – terms and conditions of employment, details of sick days, latecoming, disciplining, grievances </li></ul><ul><li>APPRAISAL INFORMATION – results of appraisal, training requested and undertaken </li></ul>
  15. 16. An organisation has a problem with high staff absenteeism and decides to analyse the problem to see if a specific pattern emerges. (2001 case study) <ul><li>In what way might the absenteeism records be broken down to see if a pattern emerges (2) </li></ul><ul><li>If the firm can identify a particular pattern of absenteeism what measures might be taken to rectify the problem. (4) </li></ul><ul><li>Why is a high staff turnover of concern to an organisation? (4) </li></ul>
  16. 17. Recruitment and Selection Terminology <ul><li>Recruitment </li></ul><ul><li>Job analysis </li></ul><ul><li>Job description/specification </li></ul><ul><li>Person specification </li></ul><ul><li>Internal/external recruitment </li></ul><ul><li>Application forms/CVs </li></ul><ul><li>Selection </li></ul><ul><li>Leeting </li></ul><ul><li>Interviews </li></ul><ul><li>Psychological tests </li></ul><ul><li>Testing </li></ul>
  17. 18. Job Analysis <ul><li>This is a study undertaken to identify the main features of a job </li></ul><ul><ul><li>physical requirements and tasks </li></ul></ul><ul><ul><li>skill requirements and tasks </li></ul></ul><ul><ul><li>mental requirements and tasks </li></ul></ul><ul><ul><li>areas of responsibility </li></ul></ul><ul><ul><li>areas of accountability </li></ul></ul><ul><ul><li>physical environment </li></ul></ul><ul><ul><li>hazards specific to job </li></ul></ul>
  18. 19. Job Description <ul><li>Detailed description of exactly what job entails. This will normally be given to anyone who applies for the job. </li></ul><ul><ul><li>job title </li></ul></ul><ul><ul><li>relationship with other jobs in organisation </li></ul></ul><ul><ul><li>purpose of job </li></ul></ul><ul><ul><li>main duties and responsibilities </li></ul></ul><ul><ul><li>authority </li></ul></ul><ul><ul><ul><li>over others </li></ul></ul></ul><ul><ul><ul><li>in decision making </li></ul></ul></ul><ul><ul><li>resources </li></ul></ul><ul><ul><ul><li>financial, human, equipment, work area </li></ul></ul></ul><ul><ul><li>location </li></ul></ul>
  19. 20. Person Specification <ul><li>Details the type of person needed for the job. Includes essential and desirable attributes </li></ul><ul><ul><li>physical make-up </li></ul></ul><ul><ul><li>Qualifications necessary </li></ul></ul><ul><ul><li>attainments </li></ul></ul><ul><ul><li>general intelligence </li></ul></ul><ul><ul><li>special aptitudes </li></ul></ul><ul><ul><li>interests </li></ul></ul><ul><ul><li>disposition </li></ul></ul><ul><ul><li>circumstances </li></ul></ul>
  20. 21. INTERNAL RECRUITMENT <ul><li>Firms may choose to fill positions with employees who already work for the organisation by advertising internally </li></ul><ul><li>The benefits of this are </li></ul><ul><ul><li>the applicant is already known </li></ul></ul><ul><ul><li>the firm may have already invested time and money in training this employee and can benefit from this investment </li></ul></ul><ul><ul><li>applicant is already aware of the culture </li></ul></ul><ul><ul><li>promotion from within is good for morale </li></ul></ul><ul><ul><li>cheaper than external recruitment in terms of money and time </li></ul></ul>
  21. 22. EXTERNAL RECRUITMENT <ul><li>Recruiting outwith the organisation, by advertising job in </li></ul><ul><ul><li>local newspapers </li></ul></ul><ul><ul><li>national newspapers </li></ul></ul><ul><ul><li>specialist publications, eg TES </li></ul></ul><ul><ul><li>internet, eg S! or firm’s own website </li></ul></ul><ul><ul><li>recruitment agencies </li></ul></ul><ul><ul><li>headhunting </li></ul></ul><ul><li>Points to consider </li></ul><ul><ul><li>wider pool of applicants </li></ul></ul><ul><ul><li>new ‘blood’ </li></ul></ul><ul><ul><li>costly in time and money </li></ul></ul><ul><ul><li>unknown quantity </li></ul></ul><ul><ul><li>demotivating for existing staff? </li></ul></ul><ul><ul><li>resentment from unsuccessful internal candidates? </li></ul></ul>
  22. 23. TASK <ul><li>Justify the need to carry out a job analysis when a vacancy arises. (2) </li></ul><ul><li>Compare a job description to a person specification. (3) </li></ul><ul><li>Justify the reasons why a company may always look to fill a vacancy with an existing employee. (4) </li></ul><ul><li>Explain the possible negative effects of this policy? (3) </li></ul><ul><li>Describe an effective recruitment procedure for an </li></ul><ul><li>organisation. (4) </li></ul>
  23. 24. SELECTION <ul><li>It is important to select the most appropriate candidate for the job. </li></ul><ul><li>Selection methods may involve: </li></ul><ul><ul><li>Weeding out using CVs or application forms </li></ul></ul><ul><ul><li>Interviewing </li></ul></ul><ul><ul><li>Testing – IQ, psychological, aptitude </li></ul></ul>
  24. 25. INTERVIEWING <ul><li>Interviews are useful for assessing the personal qualities of a candidate </li></ul><ul><li>Interviews are less useful for assessing the technical ability of candidates </li></ul><ul><li>Interviews may be one-to-one , panel or group </li></ul><ul><li>Poor interviews are a result of </li></ul><ul><ul><li>Lack of training in interview technique </li></ul></ul><ul><ul><li>Poor preparation </li></ul></ul><ul><li>It is possible that interviewers may </li></ul><ul><li>get a false impression of a candidate </li></ul><ul><li>and may wish to back up an interview </li></ul><ul><li>by testing candidates </li></ul>
  25. 26. The good interview <ul><li>Be open minded and unbiased </li></ul><ul><li>Be prepared – read CVs, application forms, think about suitable questions </li></ul><ul><li>Welcome the interviewee </li></ul><ul><li>Control the interview </li></ul><ul><li>Supply information </li></ul><ul><li>Close interview </li></ul><ul><li>Follow-up </li></ul>
  26. 27. Interviewing and technology <ul><li>Using video conferencing can be a cheaper solution than paying travel costs for a number of applicants. </li></ul><ul><li>Telephone interviews are even cheaper and may be the only interview for jobs in call centres. </li></ul>
  27. 28. TESTING <ul><li>Aptitude test – giving candidates a problem or task to solve </li></ul><ul><li>Attainment test – a speed test for word processing operators </li></ul><ul><li>Intelligence test – may be on numeracy, literacy and general knowledge </li></ul><ul><li>Personality test – sometimes called psychometric testing </li></ul><ul><li>Selection exercises – outward bound courses, team interviews, social situations </li></ul>
  28. 29. TASK <ul><li>Describe a selection process which an organisation may use to ensure the best applicants are appointed to work. 2006 Sec 2 Q1(c) (5 marks) </li></ul><ul><li>Discuss the different forms of testing that an organisation could use to select the best candidate. </li></ul><ul><li>2007 Sec 2 Q2 (d) (6 marks) </li></ul>
  29. 30. Training and Development Terminology <ul><li>Flexibility of staff (multi-skilling) </li></ul><ul><li>Coping with change </li></ul><ul><li>Job satisfaction </li></ul><ul><li>Staff motivation </li></ul><ul><li>Induction training </li></ul><ul><li>On and off-the-job training </li></ul><ul><li>Retraining </li></ul><ul><li>Skills upgrading </li></ul><ul><li>Appraisal </li></ul><ul><li>Target Setting </li></ul>
  30. 31. TRAINING <ul><li>INDUCTION </li></ul><ul><ul><li>Given to new staff to introduce them to the organisation </li></ul></ul><ul><li>ON-THE-JOB </li></ul><ul><ul><li>Takes place whilst employee is doing their job, eg, ‘work shadowing’ ‘sitting next to Nellie’ </li></ul></ul><ul><li>OFF-THE JOB </li></ul><ul><ul><li>Attending training course, gaining qualifications, day release. Can be ‘in house’ or at college, etc </li></ul></ul><ul><li>STAFF DEVELOPMENT </li></ul><ul><ul><li>Based on plan agreed at appraisal. Eg, to prepare employee for promotion </li></ul></ul>
  31. 32. Quick Task <ul><li>Outline advantages and disadvantages to the </li></ul><ul><li>organisation of: </li></ul><ul><ul><li>Induction training </li></ul></ul><ul><ul><li>On the job training </li></ul></ul><ul><ul><li>Off the job training </li></ul></ul>
  32. 33. The costs and benefits of staff training <ul><li>Benefits </li></ul><ul><li>Staff become more competent </li></ul><ul><li>Motivation increases </li></ul><ul><li>Long term Productivity increases </li></ul><ul><li>Reduced waste </li></ul><ul><li>Organisation’s image is improved </li></ul><ul><li>Changes become easier to introduce </li></ul><ul><li>Fewer accidents </li></ul><ul><li>Costs </li></ul><ul><li>Trained staff may leave to go to other organisations </li></ul><ul><li>Financial costs of paying for training </li></ul><ul><li>Work time is lost when staff are being trained </li></ul><ul><li>Quality of training must be high if training is to have a positive effect </li></ul><ul><li>Staff may request a pay rise after training </li></ul>
  33. 34. TASK <ul><li>What are the costs and benefits of staff training to an organisation. (6) </li></ul><ul><li>Describe the term induction training. (1) </li></ul><ul><li>(2007 Sec 1 Q6 (i)) </li></ul><ul><li>Outline the benefits of induction training (4) </li></ul><ul><li>(2007 Sec 1 Q6 (ii)) </li></ul><ul><li>Organisations can use both on the job and off the job training for employees. </li></ul><ul><li>Describe each of these types of training (2) </li></ul>
  34. 35. APPRAISAL <ul><li>a method of evaluating the performance of employees and assessing their usefulness to the business </li></ul><ul><li>may be INFORMAL or FORMAL </li></ul><ul><li>normally carried out by an employee’s line manager however other forms exists </li></ul><ul><ul><li>self </li></ul></ul><ul><ul><li>peer </li></ul></ul><ul><ul><li>subordinate </li></ul></ul>
  35. 36. INFORMAL APPRAISAL <ul><li>based on ‘feelings’ of management </li></ul><ul><li>result of working together on daily basis </li></ul><ul><li>little discussion between manager and employee </li></ul><ul><li>opinions based on factors of which employee is unaware </li></ul>
  36. 37. FORMAL APPRAISAL <ul><li>based on evidence collected in a formal way </li></ul><ul><li>involves an appraisal interview </li></ul><ul><li>used to: </li></ul><ul><ul><li>evaluate performance </li></ul></ul><ul><ul><li>identify employees ready for promotion </li></ul></ul><ul><ul><li>increase motivation </li></ul></ul><ul><ul><li>identify training needs </li></ul></ul><ul><ul><li>identify strengths and weaknesses </li></ul></ul><ul><ul><li>set future performance targets </li></ul></ul><ul><ul><li>assess the recruitment and selection process </li></ul></ul><ul><ul><li>improve communications </li></ul></ul><ul><ul><li>award salary increases </li></ul></ul><ul><ul><li>plan future staffing </li></ul></ul>
  37. 38. TARGET SETTING <ul><li>Appraisal is used for target setting for such things as: </li></ul><ul><ul><li>attendance at work </li></ul></ul><ul><ul><li>quality and relevance of work </li></ul></ul><ul><ul><li>membership of committees </li></ul></ul><ul><ul><li>communication abilities </li></ul></ul><ul><ul><li>level of output achieved </li></ul></ul><ul><ul><li>training to be undertaken </li></ul></ul><ul><ul><li>relationships with staff </li></ul></ul>
  38. 39. Task – 2003 Case Study <ul><li>Explain how an organisation might assess the effectiveness of any training programme? (2) </li></ul><ul><li>Justify why training should be a continuous process for any organisation? (4) </li></ul><ul><li>Appraisal is the name given to a meeting held between employee and employer to review performance and discuss progress. Discuss the role of appraisal and its ability to motivate staff. </li></ul><ul><li>(2008 CS Q8) (4) </li></ul>