© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 1 CHAPTER 11 HUMAN RESOURCE MANAGEMENT

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 2 LECTURE OUTLINE The HRM framework Establishing the employment relationship Maintaining the employment relationship HRIS, Internet, intranets & extranets Terminating the employment relationship

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 3 The HRM framework Those management functions concerned with attracting, maintaining and developing people in the employment relationship.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 4 The HRM framework HRM functions Identifying HR needs Attracting human resources Maintaining human resources Terminating the relationship

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 5 The HRM framework Principles of HRM Proactive approach, link to strategic planning & cultural change. View of people as capital, not cost. Possibility of mutually beneficial relationship between stakeholders.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 6 The HRM framework Regulatory framework Australia & New Zealand, long history of government support for union involvement. Since early 1990s, major shift toward enterprise or individual agreements. Increasing reliance on civil law processes. Growth of regulation relating to human rights, discrimination, EEO, OH&S, environmental matters.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 7 Establishing the employment relationship Human resource planning Job analysis Recruitment Selection Interviews

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 8 Establishing the employment relationship Human resource planning Determining future human resource needs in relation to an organisation’s business objectives or strategic plan.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 9 Establishing the employment relationship Job analysis The systematic collecting and recording of information about the purpose of a job, its major duties, the conditions under which it is performed, the required contacts with others and the knowledge, skills and abilities needed to perform it effectively.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 10 Establishing the employment relationship Job analysis –Outcomes: Job descriptions and job specifications. –Impacts upon: Recruitment & selection Performance appraisal Remuneration Training & development Job design & redesign.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 11 Establishing the employment relationship Job analysis-methods For existing jobs, interviews with employees. Interviews with supervisors. Observation. Combination, interviews & observation. Structured questionnaires. Employee journals/logbooks.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 12 Establishing the employment relationship Recruitment ‘ The process of finding and attracting job candidates capable of effectively filling job vacancies.’ (Wether & David, Schuler & Huber.)

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 13 Recruitment 3 Objectives Maximising the pool of applicants at minimum cost. Maximising the pool of applicants at minimum cost. Attracting suitably qualified & skilled applicants. Attracting suitably qualified & skilled applicants. Ensuring compliance by organisation with government Regulations. Ensuring compliance by organisation with government Regulations.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 14 Establishing the employment relationship Methods of recruitment Advertisements Employee referrals Internal promotion Employment agencies Internet job & career sites Internet job & career sites Contractors Campus interviews Executive recruitment (‘head hunters’) Executive recruitment (‘head hunters’)

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 15 Establishing the employment relationship Selection process: The decision-making system used to identify which job applicants are best suited to the vacant position. Key aspects: –Reliability –Validity –Selection devices.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 16 Establishing the employment relationship Key aspects of selection: Reliability The degree to which the decision making process will measure the same Consistently. Validity Whether the decision process actually measures what it sets out to measure. Selection devices Application form Written tests Selection interview Assessment centre

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 17 Maintaining the relationship Remuneration The financial payment to employees for their work. Training The process of equipping people with skills and competencies. Development Broad preparation employee for future opportunities through the acquisition of new knowledge, skills. Performance appraisal Judgemental assessment of employee performance.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 18 Maintaining the relationship Remuneration & benefits: Linked to job analysis Governed by regulatory framework Internal pay equity External pay equity

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 19 Maintaining the relationship Training & development: Choices: –Buy skills, build them, or a mixed approach. Strategic rationales for training: –Proactive –Reactive –Enhancement of employee motivation, commitment & retention.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 20 Maintaining the relationship PERFORMANCE APPRAISALS MOULD EMPLOYEE BEHAVIOUR TO COMPANY NORMS IMPROVE QUALITY OF SALARY REVIEWS IMPROVE HR PLANNING TRAINING & SUCCESSION BUILD CONSISTENCY OF EMPLOYEE ACTIONS & ORGANISATION GOALS PROVIDE RECORD FOR DISMISSAL, DEMOTION, GRIEVANCE, APPEAL

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 21 Maintaining the relationship Performance appraisal Performance appraisal 360 o feedback — non-hierarchical method 360 o feedback — non-hierarchical method

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 22 HRIS, Internet, Intranets & Extranets HRIS Human Resource Information System. Internet Global connection of computer servers through which users can access stored information from their PCs. Intranets Closed networks of information databases & systems within an organisation. Extranets Closed networks of information systems between organisations.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 23 HRIS, Internet, Intranets & Extranets Performance appraisal, including 360 O feedback Widespread electronic systems Enhanced distribution of HR policy, news, information Better internal communication Employee maintenance of own HR records Multi-site collaborative work teams, electronically linked

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 24 The future of work Fewer core employees Increased part-time, casual & temporary staff Tele-working Hot-desking Temporary agency work, short-term labour hires, on-call & contract workers Personnel supply firms Idea of employee as an independent contractor

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 25 The future of work Flexible employing organisations: Need for strategic, vs. cost reduction focus. Reliance on staffing agencies. Flexible employees: Self-employed. Use of staffing agency. Maintain skills base. ‘Portfolio’ worker.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 26 Terminating the relationship Retrenchment The forced termination of the employment relationship due to financial, technological or organisational circumstances. Redundancy A forced termination of the employment relationship resulting from the permanent deletion of specific positions. Dismissal The employer gives the required notice to terminate the employment relationship.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 27 Terminating the relationship Key aspects: Regulatory requirements. Exit interviews. Use of out-placement consultants. Effect on HR & other functions of the organisation.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 28 Lecture summary The HRM framework – Functions –Principles –Regulatory framework. Establishing the employment relationship – HR planning –Job analysis –Recruitment –Selection.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 29 Lecture summary Maintaining the relationship –Remuneration –Training & development –Performance appraisal. HRIS, Internet, intranets & extranets Terminating the employment relationship –Retrenchment –Redundancy –Dismissal.