Chapter 4 The Human resource management function VCE Business Management Unit 4

© Cambridge University Press 2012 The importance of human resource management to business success Human resource management (HRM) is the ongoing management of people within the employer–employee relationship. It involves getting the right people in the right place at the right time.

© Cambridge University Press 2012 The importance of human resource management to business success (cont.) The HRM function must manage the organisation’s most costly and valuable asset: its employees.

© Cambridge University Press 2012 The importance of human resource management to business success (cont.) HRM has progressed from an administrative role to its current strategic role with representation at senior management levels.

© Cambridge University Press 2012 The role of a human resource manager The role of an HR manager is to translate business strategy into action. Initially, HRM objectives must be established. Pressures from the organisation’s external and internal environments influence these objectives.

© Cambridge University Press 2012 The role of a human resource manager (cont.) Strategies are then developed from related HRM activities created. Performance indicators (PIs) are used to measure the outcomes to assess how effectively the objectives have been achieved.

© Cambridge University Press 2012 The role of a human resource manager (cont.) In addition, HR managers are involved in: strategic planning, relating to forecasting demand and supply of labour and succession planning

© Cambridge University Press 2012 The role of a human resource manager (cont.) management of the employment cycle, which covers the three phases of establishment, maintenance and termination innovative strategies relating to appraisal, skill development, remuneration and flexible work practices

© Cambridge University Press 2012 The role of a human resource manager (cont.) acting as an advocate for employees when negotiating with management designing and implementing strategies to increase employee motivation, job satisfaction, productivity, employee relations and customer service

© Cambridge University Press 2012 The role of a human resource manager (cont.) acting as a change agent and providing support and education for supervisors, team leaders and line managers responsible for implementing HR policies and practices.

© Cambridge University Press 2012 The role of a human resource manager (cont.) HR managers are referred to as staff managers, providing specialist advice or assistance to line or functional managers.

© Cambridge University Press 2012 Measuring HRM effectiveness Effectiveness of HRM outcomes can be evaluated against the following: commitment and competence of employees level of cost effectiveness

© Cambridge University Press 2012 Measuring HRM effectiveness (cont.) congruence (harmony) adaptability to change performance related to productivity level of job satisfaction and employee motivation

© Cambridge University Press 2012 Employee expectations Employees have expectations from their work, such as: being paid a fair wage keeping regular work hours gaining job satisfaction through an interesting, challenging and secure job receiving assistance when needed and positive feedback

© Cambridge University Press 2012 Employee expectations (cont.) leave being available for personal or family reasons flexible working arrangements, working within a professional and safe environment an opportunity for skill development and promotion.

© Cambridge University Press 2012 Employer expectations Employers have expectations from employees, such as: working towards achieving organisational objectives acting professionally and gaining job satisfaction

© Cambridge University Press 2012 Employer expectations (cont.) work being completed and on time; providing good customer service; punctuality; not sabotaging business activities; being committed, courteous and respectful; and working cooperatively and productively.

© Cambridge University Press 2012 Motivation Motivation for individuals is the drive to achieve a personal goal.

© Cambridge University Press 2012 Motivation (cont.) For an organisation, an individual’s motivation needs to be harnessed to assist them to achieve personal goals, while working towards organisational goals.

© Cambridge University Press 2012 Motivation (cont.) It is the function of human resource managers to support and advise line managers on ways to motivate their staff.

© Cambridge University Press 2012 Theories of motivation A variety of management theories discuss approaches to motivation. Abraham Maslow’s five-stage hierarchy of needs – physiological, safety, social, self-esteem and self actualisation is based on importance of the needs.

© Cambridge University Press 2012 Theories of motivation (cont.) It should be recognised that an individual would progress through the stages. Each stage must be substantially satisfied before moving to the next stage, which would act as a motivator. HR managers need to understand the relationship between the levels of needs and what HR activities relate to each level.

© Cambridge University Press 2012 Theories of motivation (cont.) Frederick Herzberg’s two-factor theory identifies higher order (motivating) and lower order (hygiene) needs.

© Cambridge University Press 2012 Theories of motivation (cont.) Motivators relate to job content (e.g. recognition and responsibility) and are seen as intrinsic in nature. Hygiene factors relate to the work environment (e.g. working conditions and salary) and the absence of these can lead to job dissatisfaction.

© Cambridge University Press 2012 Theories of motivation (cont.) Edwin Locke’s goal-setting theory states that the setting of goals leads to increased effort, tasks focus and persistence.

© Cambridge University Press 2012 Theories of motivation (cont.) Goals set must be specific, measurable, achievable, relevant and time-bound. Employees must receive feedback. This theory links to the organisational approach to goal setting by using the Management by Objectives approach.

© Cambridge University Press 2012 Human resource management It is the role of human resource management to put motivational theories into practice.

© Cambridge University Press 2012 Motivational theories for job satisfaction and performance Commonly used motivators are established by: establishing a comprehensive reward system designing jobs to allow for enlargement and enrichment

© Cambridge University Press 2012 Motivational theories for job satisfaction and performance (cont.) creation of teams quality circles and worker empowerment flexible work practices and a positive organisational environment and corporate culture.