1. VCE Business Management 3-4
Unit 4 Human Resource Management

2. The Human Resource Management Function
Management of people within the employer-employee relationship
Purpose is to achieve organizational strategic business objectives while satisfying employee individual needs

3. Historical Perspective
Until the mid 1970’s, HR was seen as administrative.
Looked after records, payroll, leave
Line managers and supervisors generally did recruiting, selecting, training
From the mid 1990’s, moved to a more professional approach
Increased emphasis on strategy
Senior management representation
Contemporary view
HR has equal status to other functional areas of business (I.e. finance, marketing)
HR ahs equal status to operational areas
A greater role in recruiting, selecting, training, compensation, motivation and appraisal

4. Role of HR Manager Interpret business strategy to HR needs
Develop HR strategies
Create policies which link to corporate strategic planning
Involved in long term planning
Management of employment cycle
New strategies and innovation in performance appraisal, skill development, remuneration
Advocate for employees with management
Strategies to motivate, increase job satisfaction, productivity
Act as a change agent
Support and educate line managers

5. HR Function Often referred to as Staff Managers
Don’t decide on work to be done day to day. Act as advisers and support network
Needs to consider internal and external environment influences
Need to set objectives which fit the overall business objectives and strategy
Note diagram on p. 190
Do 11.2 using three HR Ads handed out so far.
11.3

6. Measuring HRM Effectiveness
“Cannot manage what you do not measure”
Commitment
Turnover, loyalty
Competence
Skills, knowledge, abilities
Cost Effective
Absenteeism, health and safety, productivity
Congruence
Agreement between different stakeholders I.e. Union/Employer

7. Measuring HRM Effectiveness
Adaptability
Ready for change
Performance
Profitability, productivity
Job Satisfaction
Employee satisfaction
Employee Motivation
Do 11.4