Human Resource Management

HIGHER NATIONALDIPLOMA
IN BUSINESS
Unit 3:
Human Resource Management
By: Oguchi Martins Egbujor 1

The Aim of HRM
The aim of this unit is to equip students with the
understanding, skills and techniques of
identifying, acquiring and retaining the right
workforce that is effective, productive and
competitive in meeting an organisation
objectives.

LO1
Explain the purpose and scope of Human
Resource Management in terms of resourcing an
organisation with talent and skills appropriate to
fulfil business objectives

Human Resource Management is the process
of anticipating and identifying the human
requirements of an organisation to meets its
current and future corporate objectives.

Human Resource Management (HRM) is the
formal systems devised for the management
of people within an organization. The
responsibilities of a human resource manager
fall into three major areas:
 Staffing
 Employee compensation and benefits
 Defining and designing work.

The concepts of ‘best practice’ and
‘best fit
The concept of best practice is based on the
assumption that there is a set of best HRM
practices that are universal in the sense that
they are best in any situation, and that adopting
them will lead to superior organizational
performance. This concept of universality is
criticized because it takes no account of the
local context.

The Concept of Best Fit
The concept of best fit emphasizes that HR
strategies should be congruent (agreement,
Harmony or identical) with the context and
circumstances of the organization. Best fit can
be perceived in terms of vertical integration or
alignment between the organization’s business
and HR strategies.
• It is generally accepted that best fit is more
important than best practice.

Vertical Integration
Backward Integration
• This is a business strategy
whereby an organisation
acquires its suppliers to
ensure steady flow of
materials to meet the needs
of the organisation in order
to control input for greater
productivity.
Forward Integration
• This is a business strategy
whereby an organisation
acquires the distribution
channel in order to control
its manufacturing,
wholesale and retail outlets
so as to meet it objectives
of maximising output.

Hard and Soft Model of HRM
Two of the most widely adopted models of human
resource management are the hard and soft versions.
These are based on opposing views of human nature and
managerial control strategies. The hard model is based on
notions of tight strategic control, and an economic model
of man according to Theory X, while the soft model is
based on control through commitment and Theory Y. We
argue that because these assumptions are so divergent,
they cannot both properly be incorporated within a single
model of human resource management.
(Storey, 1989)

Soft and Hard Model
The tenets of the soft, commitment model,
while the reality experienced by employees is
more concerned with strategic control, similar to
the hard model.

P1
Explain the purpose and functions of HRM,
applicable to workforce planning and resourcing
an organisation

The Purpose of HRM
The purpose of HRM is to maximize the productivity
of an organization by optimizing the effectiveness
of its employees. Essentially therefore, the basic
mission of human resource management will
always be to acquire, develop, and retain talent;
align the workforce with the business; and be an
excellent contributor to the business
(Edward L. Gubman)
Journal of Business Strategy

The Function of HRM
The major function of human resource
management is to maximise the skills,
experience and knowledge of the workforce to
achieve organisational objectives. This will also
include the enhancement of human potentials
to meet corporate objectives.

Workforce Planning
Workforce Planning is a system with the process
of identifying and analysing an organisation’s
current and future objectives, and identifying
and acquiring the right skills to meet them
productively and profitably.

Human Resource Planning
HR Planning is the process by which an
organisation ensures that it has the right
number and kind of people, at the right place, at
the right time, capable of effectively and
efficiently completing those tasks that will help
the organisation achieve its overall objectives.
(Decenzo and Robbins, 2010)

Succession Planning
Succession Planning is a process of identifying,
motivating and developing employees with
the required talents to be future leaders of an
organisation. The planning is usually for
medium and long terms in accordance with
the organisational needs. Succession planning
is relevant to a “learning organisation” that
pays particular attention to employee
development.

Functions and Scope of HRM
• Liaising with management to align human
requirement to its objectives
• Staffing
• Retention
• Induction, Training and development
• Motivating and Rewarding
• Discipline
• Appraisal
• Employee welfare, etc.

Legislations
• Data Protection Act 1998
• Employment Act 2008
• National Minimum Wage Act 1998
• Employment Relations 2004
• Sex Discrimination Act 1995/97
• Equality Act 2010
• Disability Discrimination Act 1995/2005
• DBS
• Working Time (Amendment) Regulations 2003
• Freedom of Information Act 2000

P2
Explain the strengths and weaknesses of
different approaches to recruitment and
selection

Recruitment
Recruitment is the process of attracting the right
candidates to the right job and at the right time.
This involves following the job market trend, and
analysing the human resource needs of the
organisation and attracting suitable candidates
to meet the objectives.

Selection
Selection is the process of identifying and
choosing the right candidate with the right skills
at the right time to meet the organisational
objectives. The right candidate must be suitable
to the needs of the organisation

Recruitment and Selection
Approaches
• Identify and analysing job vacancies
• Prepare for Job Analysis
• Advertising the vacancy (the right channel)
• Managing Responses (CVs and Applications)
• Shortlisting the Suitable Candidates
• Arranging and Conducting Interviews
• Selecting the right candidates

Job Analysis
Job Analysis is the Process of studying and
collecting information relating to the operations
and responsibilities of a specific job. The
immediate products of job analysis are job
description and job specification.

Job Analysis
Job Description
• Job Title
• Pay
• Location
• Summary
• Duties
• Machinery and Materials
• Supervision
• Working Conditions
• Hazards
Person Specification
• Education/Qualification
• Experience
• Training
• Skills
• Physical demand
• Initiative
• Responsibilities
• Communication skills
• Attitude
• Emotional Characteristics

Job Analysis Video
https://www.youtube.com/watch?v=D2_U_vsfr
6I

Sources of Recruitment
Internal
• Current employees
• Former employee
• Database of applicants
• Referrals from employees
• Internal job vacancy
External
• Advertisement
• Job Centre Plus
• Employment Agencies
• Referrals from friends
• College recruitment
• Company’s website

Selection Approaches
• Application
• CV matching
• Shortlisting
• Aptitude tests/or Psychometric tests
• Telephone surveys
• E-Assessment
• Interviews
• Group selection techniques-panel, tasks, role
play, presentation, observation, etc.
• Assessment centres/or Assessment Agencies

Recruitment and Selection
Different Approaches
Strengths
• Organisational image
• Advertising widely
• Experience HRM
• Shortlisting the best
candidate
• Targeting the right
candidates
• Ability to ask the right
question at interviews
Weaknesses
• Advertising is expensive
• Using wrong channel of
communication
• CV and Applications forms
may be written by
professional
• Stereotyping
• Inexperience HRM analysing
the job wrongly

M1
Assess how the functions of HRM can provide
talent and skills appropriate to fulfil business
objectives

Process
• Aligning business objectives and HR strategy
• Analysing labour market trend/environment
• Attracting the best candidates
• Motivating workforce
• Training workforce
• Retaining workforce
• Rewarding workforce

Demand Forecast
Demand Forecast is a system with the process of
analysing the direction and the objectives of an
organisation, and establishing the skills, talent
and the required number of people to meet the
current and future needs.

Supply Forecast
• Supply forecast is to determine whether the
HR department will be able to procure the
required skills and number of workforce
needed at any particular point in time to
achieve business objectives:
• Internal Sources of Supply
• External Sources of Supply
• Current Employees

Labour Market Trend
HR will be focusing on the behaviour of labour
market and what is driving the behaviour. The
should also look at what is obtainable within
their industry regarding the development of
skills and knowledge:
• PESTLE
• SWOT

HRM Goals
Staffing
Strategic HR
Planning
Recruitment
Selection
Motivation
Motivation
theories & job
Design
Performance
appraisal
Rewards &
compensations
Employees
Benefits
Maintenance
Health & safety
Communications
Employee
relations
Training and
development
Orientation
Employee training
Employee
Development
Career Development

M2
Evaluate the strengths and weaknesses of
different approaches to recruitment and
selection

Evaluate Approaches
• Draw on varied information
• Strengths and weaknesses
• Advantages and disadvantages
• The relevance or importance
• Make supported judgements

D1
• Critically evaluate the strengths and
weaknesses of different approaches to
recruitment and selection, supported by
specific examples

Critically Evaluate Approaches
• Make clear strengths and weaknesses
• Reflect P1, P2, M1 and M2
• Intelligent argument (pros and cons)
• Definite and Precise account
• Give examples
• Support your judgement
• Conclude possible outcomes
• Use variety of information

Employee Induction
Employee induction is the process used within
an organisation to welcome new employees and
to prepare them for their new role. Induction
training includes the development of theoretical
and practical skills, and also meet interaction
needs that exist among the new employees

Onboarding
• This is a process of acclimatising and
integrating new employees into the
organisational system. Onboarding ensures
that new hires feel welcome and prepared in
their new positions, in turn giving them the
confidence and resources to make an impact
within the organization, and ultimately
allowing the company to continue carrying out
its mission.

The 10 Commandments of
Onboarding
Thou shalt not bear false witness against thy
employee. Few things are more disappointing
than the realization that the job you thought
you were hired to do is sorely different than
what you're actually doing
• http://employer.careerbuilder.com/jobposter/
small-
business/article.aspx?articleid=atl_0192onboa
rdingtips_s

Socialisation
Socialization is the on-going process of learning
the social culture of the organization and how to
get along with others in the organization
O’Nell et al. (2001)

Onboarding and Socialisation
• Starting a new job can be stressful
• Newcomers are in an unfamiliar work
environment surrounded by people they do
not know
• New employee must establish relationships
and learn new behaviors, facts, procedures,
expectations, and values

Socialisation and Reorientation
• New employees can also expect surprises
• not anticipating the emotional impact of
greater responsibility
• underestimating the difficulty of adjusting to a
new work schedule
• New employees may also need to “unlearn”
things that helped them succeed in previous
settings

LO2
Evaluate the effectiveness of the key
elements of Human Resource
Management in an organisation

P3
Explain the benefits of different HRM practices
within an organisation for both the employer
and employee.

HRM Practices
• Articulation of Vision, Mission and Values
(VMV)
• Drawing up HRM Plan
• Manpower Planning
• Performance Management System
• Training and Development
• Service Quality Enhancement

Good HRM Practice
• Managing people effectively for
performance through an open Performance
Management System (PMS) that will call for
individual objectives tied to departmental
objectives, regular coaching, and developing
staff on the job

Good HRM Practices
• Enhancing staff's competencies to perform
better through effectively training people to
achieve departmental objectives and results
• Delivering quality service through training
and engaging staff in developing a service
culture in addition to business process re-
engineering and work streamlining.

Key Elements of HRM
• Workforce Planning
• Recruitment and retention
• Health and Safety
• Organisational Culture
• Motivation and reward
• Performance Appraisal
• Employee relation, Complaint, Discipline

Types of training
• On-the-job Training
• Job rotation
• Job Mentoring
• Shadowing
• Coaching

Types of Training
http://study.com/academy/lesson/methods-for-
training-employees-mentoring-on-the-job-job-
rotation.html

P4
Evaluate the effectiveness of different HRM
practices in terms of raising organisational profit
and productivity

Reward Management
• Extrinsic and Intrinsic Reward
• Motivational Theory and Reward
• Job Design
• Flexible Organisation
• Flexible Working Practice
• Performance and Reward
• Payment and Reward System

Organisational Flexibility
• Numerical Flexibility
• Structural Flexibility
• Functional Flexibility
• http://study.com/academy/lesson/bureaucrati
c-organizations-mechanic-organic-
bureacracies.html

Numerical Flexibility
Is the policy of ensuring that the appropriate amount of
labour is employed for the needs of the organization.
This involves putting people on a variety of contracts to
ensure that fluctuations in the demand for employees
across the working day, week, or year are matched with
the appropriate supply of labour. The most common
forms of numerical flexibility are: (a) part-time working,
(b) temporary/fixed-term contracts, and (c)
subcontracting.

Flexibility HRM Practices
• Benchmarking
• Best Practice
• Business Environment
• Business Process Reengineering
• Centralization
• Change Strategy
• Competitive Advantage
• Comprehensiveness

HRM Flexibility Practices
• De-layering
• Division of Labour
• Divisional Structure
• Downsizing
• Soft HRM
• Soft Planning
• Strategic HRM
• Talent Management

Structural Flexibility
Flexible business structures are those structures
that develop within an organization in response
to existing employee relations and the way that
employees interact with one another
throughout the daily course of business. Flexible
structures are informal by nature; they generally
result from workers discovering ways to carry
out business that are more efficient than those
mandated by the formal organizational structure

Functional Flexibility
This is the ability of an organization to move employees
to other duties or responsibilities within the company.
Functional flexibility reflects an organization's ability to
adapt to changing conditions and requirements, and is
affected by issues such as training, management, and
outsourcing
http://www.businessdictionary.com/definition/functio
nal-flexibility.html

Organisational Flexibility
• Hierarchical Structure
• Flat Structure
• Functional Units
• Communication channel
• Style of Management
• Motivation
• Learning Organisation
• Productivity

Motivational Theories
• Maslow Hierarchy of Needs
• Herzberg Two Factor Theory
• Mayo Human relation Theory
• McGregor Theory X Theory Y

Motivation and Reward system
Extrinsic and Intrinsic Reward
• http://study.com/academy/lesson/extrinsic-
rewards-for-students-definition-examples-
quiz.html
Maslow and Herzberg Motivation Theories
• https://www.youtube.com/watch?v=rbqn_P2
aKNo
• https://www.youtube.com/watch?v=3Ub8R5c
6tkE

Employee Performance
Performance monitoring is a system of appraisal
that is carried out periodically to rate an
employee’s excellence in matters pertaining to
his or her present job and his or her potential
for a better job.
• (Edwin B, 1980)

Performance Monitoring
• SWOT Analysis
• MBO (Management by Objectives)
• Appraisal (Staff and Work)
• 360 Degree Feedback process
• Mentoring
• Benchmarking
• Actual Versus Target (League Table)
• Job Review

M3
Explore the different methods used in HRM
practices, providing specific examples to support
evaluation within an organisational context

HR Methods
• standard administrative
times
• work standards
determination
• the scenario
• extrapolation
• the correlation
coefficient
• jobs analysis
• workday tasks analysis
• instantaneous
observation
• time recording
• workday shooting
• ▪ physical and/or value
work productivity

HR Methods

D2
Critically evaluate HRM practices and application
within an organisational context, using a range
of specific examples.

LO3
Analyse internal and external factors
that affect Human Resource
Management decision-making,
including employment legislation

Factors Affecting HR Decision
Making
• Employee Relation and the Law
• Purpose of Employment Law
• Data Protection
• Health & Safety
• Dismissal and Employment Contract
• Equality
• Ethical and Social Responsibility

Trade Union and the
Workplace Representation
• The Role of trade Union (local/national)
• Collective agreements
• Discipline
• Grievance
• Redundancy
• Best Practice

P5
P5 Analyse the importance of
employee relations in respect to
influencing HRM decision making.

Employee Relations
• Employment Relations Act 2004
• Employee Engagement
• Trade Union affiliation
• Involving Employee
• Employee Representation
• Employee welfare
• Discipline
• Grievances

P6
P6 Identify the key elements of
employment legislation and the
impact it has upon HRM decision
making.

Employment Law
• Data Protection Act 1998
• Employment Act 2008
• National Minimum Wage Act 1998
• Employment Relations 2004
• Sex Discrimination Act 1995/97
• Equality Act 2010
• Disability Discrimination Act 1995/2005
• DBS
• Working Time (Amendment) Regulations 2003
• Freedom of Information Act 2000

M4
M4 Evaluate the key aspects of
employee relations management and
employment legislation that affect
HRM decision-making in an
organisational context

D3
LO3 & 4 D3 Critically evaluate
employee relations and the
application of HRM practices that
inform and influence decision-
making in an organisational context.

Employee Relations and the
Best Practice
• Employee Relations
• Employee Engagement
• Trade Union Employee Welfare
• Motivation, training and Reward
• Recognition
• Working practice
• Job Design and best fit

LO4
Apply Human Resource
Management practices in a work-
related context

Work-Based HRM Practices
• Job and Person Specification
• Recruitment and Selection
• Design and Place Job Advertisement
• Shortlisting and Processing Applications
• Interviewing Preparation and Best Practtice
• Selection Best Practice
• Technology
• Social Networking

P7
P7 Illustrate the application of HRM
practices in a work-related context,
using specific examples.

Work-Based HR Application
• Aligning business objectives with HR Plan
• Environmental analysis
• Workforce Planning
• Identify, Attracting and Recruitment
• Selection of Best Candidates
• Induction and Onboarding
• Motivation, Rewarding and Retention

M5
M5 Provide a rationale for the
application of specific HRM practices
in a work related context.

Human Resource Management

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