The document outlines key aspects of human resource management including defining HRM, environmental factors affecting HRM, HRM activities, HR planning, recruitment, selection, pay and benefits, performance management, and training and development. It discusses defining HRM and its objectives of ensuring the business is appropriately staffed and high performance. Key HRM activities include HR alignment, planning, recruitment, selections, pay and benefits, and training. HR planning involves demand and supply analysis to determine deficits or surpluses. Recruitment methods include internal and external approaches while selection involves interviews, references checks, and tests.

1. Human Resource Management Lecturer: Olivia Edge

2. Lecture Outline Defining HRM Environmental Factors affecting HRM Activity Areas in HRM

3. Defining HRM

4. “ HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques ”(Storey, 2007)

5. Key Objectives of HRM Staff Objective Ensure business is appropriately staffed Performance Objective Ensure appropriate standards of performance are achieved through training, development Management control systems Change Management Effective management of change Structural, cultural adjustments

6. So, how does HRM contribute toward the attainment of competitive advantage? Take note of the 3 main issues discussed in class ? ? ?

7. HRM Activities HR Alignment Human Resource Planning Recruitment Selections Pay and Benefits Performance Management Training and Development

8. HR Alignment Overcoming Challenges

9. Key HR Challenges for Managers

10. Key HR Challenges: Environmental Rapid Change The Internet Revolution Workforce Diversity Globalization Legislation Evolving Work and Family Roles Skill Shortages Rise of the Service Sector Natural Disasters

11. Key HR Challenges: Organizational Competitive Position Decentralization Downsizing Organizational Restructuring Self-Managed Work Teams Organizational Culture Technology Internal and Data Security Outsourcing

12. Matching People and Organizations Ethics and Social Responsibility Productivity Empowerment Brain Drain Job Insecurity Key HR Challenges: Individual

13. HR Planning

14. Human Resource Planning HR Planning is an effort to anticipate the future demands of the organisation and match those demands with suitable personnel Stages of HR Planning Demand Analysis Through an understanding of the Org Strategy, the HR function must forecast the demand for personnel by Assessing future HR needs Assessing the quality and quantity of employee needed Supply Analysis An analysis of the supply both internally and externally of the labour currently available to determine if they can meet the org needs

15. Human Resource Planning contd . Estimating Deficits/Surplus This is the process of comparing the demands with the supply to establish if the supply meets the demands A deficit in supply could result in the org recruiting from overseas, automate activities, outsource activities Action Plan The action plan should detail how the HR function will align the demands of the org with the supply available to the org It should detail selection, recruitment, training etc. to ensure that the orgs requirements are met with competent staff

16. Strategic HR Policies: Benefits 1- Encouraging Proactive Behavior Communicating Company Goals Stimulating Critical Thinking and Ongoing Examination of Assumptions Identifying Gaps Between Current Situation and Future Vision Encouraging Line Managers’ Participation Identifying HR Constraints and Opportunities Creating Common Bonds

17. Strategic HR Policies: Challenges 1- Maintaining a Competitive Advantage Reinforcing Overall Business Strategy Avoiding Excessive Concentration on Day-to-Day Problems Develop HR Strategies Suited to Unique Organizational Features Coping with the Environment Securing Management Commitment Translating the Strategic Plan into Action Combining Intended and Emergent Strategies Accommodating Change

18. Strategic HR: Choices Work Flows Staffing Employee Separations Performance Appraisal Training and Career Development Compensation Employee Rights Employee and Labor Relations International Management 1-

19. Selecting HR Strategies To increase firm performance HR strategies should fit with other aspects of the organization 1-

20. HR Strategies: Fit with Organizational Strategies Corporate Strategies Evolutionary Steady State 1- Porter’s Business Unit Strategies Cost leadership Differentiation Focus Miles and Snow’s Business Strategies Defender Prospector

21. HR Strategies: Fit with Environment Degree of Uncertainty Magnitude of Change Complexity Volatility 1-

22. HR Strategies: Fit with Organizational Characteristics Production Process Firm’s Market Posture Firm’s Overall Managerial Philosophy Firm’s Organizational Structure Firm’s Organizational Culture 1-

23. HR Strategies: Fit with Org. Capabilities Distinctive Competencies Give firm competitive edge 1- HR Strategies should Help firm exploit its competencies Assist the firm to help use its HR skills

24. Recrutiment

25. Recruitment This refers to attracting candidates to the organisation with the view to taking up employment Recruitment can occur Internally or Externally There are 2 key stages in the recruitment process Background Stage This refers to analysis of the job description with the person specification in order to achieve a fit between the job and the candidate. job description (statement of the tasks &responsibilities of the role) with the person specification (details skills, competencies, qualifications, experience required from the candidate)

26. Job analysis: an overview MATCHING JOB DESCRIPTION Job title Place of work Reporting to whom? Subordinates? Purpose of position Key duties Objectives/targets PERSONAL SPECIFICATION Physical attributes Education/training General intelligence Special aptitudes Personal Interests Personality Background

27. Recruitment contd. 2. Recruitment Stage This refers to the process of attracting candidates by Internal Recruitment –transfers, promotions External Recruitment – media advertisements, agencies , colleges, FAS, Professional bodies Various methods can be used to attract candidates Internal Job Posting – posted within the company External Job Posting – posted to external sources e.g. Newspapers, Internet Job Pages, Colleges postings Employment Agencies – the use of specialist agencies to shortlist from a large pool of candidates. This can be expensive. Employee Referrals – this is when an employee refers a friend for a position

28. Selection

29. Selection The selection process effectively begins when application forms/CVs have been received This involves selecting the right candidate from the pool of candidates that have been shortlisted Interviews Reference Checks Selection Tests

30. Interviews Most commonly used selection technique e.g.1:1,group or panel The objective of the interview is to Gain info about the candidate to determine suitability Sell the role and the org to the candidate There are two main types of interviews Structured – set questions are asked of all candidates to compare performance Unstructured – the interviewer has a general set of questions but its at the interviewers discretion as to what is asked Common Interviewing Errors Inadequate preparation Premature Judgement Lack of Rapport Interviewer Dominance Structural Rigidity

31. Selection contd. Reference Checks Once interviewing has been completed candidates are placed on shortlist and references are checked Reference checks seek to validate the information supplied by the candidate They also gather additional details on how the employee reacted with other staff, management, customers etc. Selection Tests These can be used with interviews to reduce bias and increase correct selection Intelligence Tests – tests their mental capacity Aptitude Tests – test special aptitudes that may be necessary to performing the job Proficiency Tests – these test specific skills e.g. Typing, presentation skills, language skills

32. Pay and Benefits

33. Pay & Benefits An organisation’s reward system is a powerful indicator of its philosophy and approach to workforce management The primary function of pay and benefits are employee retention and motivation Rewards can be financial / non-financial Intrinsic rewards - spring from the job itself and include autonomy, responsibility an challenge Extrinsic rewards - more tangible in nature and include pay, job security and working conditions There are 3 parts to a compensation system Payments Benefits Rewards & Motivation

34. Pay & Benefits contd. Payment Flat rate only or Flat rate+ fixed hourly, weekly, monthly rate +/or bonus by results Merit Rating Receive bonus based on their performance Commission – individual earns a % of each sale they make Profit \ Gain Sharing – employees get a bonus related to improved company performance Piecework – employees are paid for each item they produce

35. Pay & Benefits contd. 2. Benefits There are 2 main types of benefits employees receive in addition to salary Benefits-in-kind – these are benefits that can’t be turned into cash but have a value e.g. Company car, preferential loans, health ins Other Benefits – vouchers, holidays, bus tickets, childcare subsidies, canteen subsidies, mobile phones, education Rewards & Motivation Employees are also motivated by non financial rewards Reward and Recognition Awards Grooming for Promotion e.g. Coaching, specialist training Greater responsibility More enriching work

36. Assessment & Appraisal

37. Performance Appraisal Assessing the work of employees is a key function of human resource management It can be seen as a periodic assessment of the performance of the individual Its concerned with Establishing performance objectives and standards Measuring performance against standards Providing timely feedback to the employee There are a number of different objectives in performance appraisal

38. Performance Appraisal contd. There are 2 main appraisal systems Graphic Rating Scales This is where various aspects of the employees performance are measured against a scale Scales are common to all employees thus making comparisons easy 360◦ Feedback This involves collecting feedback from a variety of people you work with in the org The strength of this review is that its viewed from many different perspectives This type of review encourages the employee to pay attention to all work relationships

39. Performance Appraisal contd. There are 2 main appraisal systems Graphic Rating Scales This is where various aspects of the employees performance are measured against a scale Scales are common to all employees thus making comparisons easy 360◦ Feedback This involves collecting feedback from a variety of people you work with in the org The strength of this review is that its viewed from many different perspectives This type of review encourages the employee to pay attention to all work relationships

40. Performance Appraisal contd. Effective Performance Appraisals Reviews the goals and standards of the employees responsibilities Summarises the employees overall performance with positive and negative feedback Discuss the causes of weak performance and provide the employee the opportunity to discuss this and adapt this through e.g. Training Agree a set of activities that the employee must focus on and agree a time to review progress End on a good note! Ineffective feedback When performance measures are not clear and then the employee is punished during review When is it not timely thus preventing the employee the opportunity to address it before it became problematic If it is not constructive and is used negatively against the employee

41. Training and Development

42. Training & Development A major aspect of HR is developing career path opportunities for employees through org development activities There is a clear distinction between the concepts of training and development Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning experiences Development is a broader concept referring to general growth of an individuals skilled and abilities through conscious and unconscious learning

43. Training & Development Methods On the job training Job rotation, coaching, mentoring, buddying Attending internal briefings and presentations Customer and supplier visits External formal, professional training courses Part time, sabbatical, fixed periods Secondment to another department, business unit

44. Summary and Conclusions There are many challenges in HRM Plan and Implement HR Strategic Policies and procedures should be congruent Select strategies that increase performance HR department and management are an important partnership 1-