Human Resource Management: A Case Study Approach The Context of HRM Your title and name Your university‘s name Title course Your University logo

Your University logo 2 Key characteristics of organisations Organisational environment The system and PEST models Use of the system and PEST models to monitor change in an organisation’s environment Main case study Lecture outline

Your University logo 3 To identify the key characteristics of organisations To describe and analyse the key environmental factors that influence the HRM process within organisations To discuss the ways in which organisations can monitor envronmental influences Learning objectives

Your University logo 4 To identify sources of information to help gain understanding of employment markets Learning objectives cont’d

Your University logo 5 Three major elements common to all organisations –Ownership type –Orientation –Size Ownership type –Public –Charitable/Independent –Private Ownership type influences the purpose and financing of the organisation Characteristics of organisations

Your University logo 6 The public sector covers central government, local government, universities, schools and hospitals Mostly funded by tax to service society Charities/the independent sector are non-government and non-profit-making Funded by donation for particular needs Characteristics of organisations cont’d

Your University logo 7 The private sector is owned and financed by individuals, partners or shareholders The aim is commercial: to make a profit Three main types –Sole traders –Partnerships –Limited companies (Public Limited Companies quoted on the Stock Exchange, and Limited Companies which are not) Characteristics of organisations cont’d

Your University logo 8 Organisational orientation is split between production or service A product is a physical, tangible item A service is intangible and consumed at the point of delivery Orientation can also be considered by reference to activities –Primary: eg agriculture, mining –Secondary: eg manufacturing, production –Tertiary: eg services, finance, health Characteristics of organisations cont’d

Your University logo 9 Organisational size –Small/micro: with less than 10 employees –Small to medium: with less than 250 employees –Large: with more than 250 Characteristics of organisations cont’d

Your University logo 10 A systems model Describing and analysing the HRM context TRANSFORMATION Feedback from the environment The Organisation Inputs to other systems Outputs Throughput Efficiency Effectiveness Economy Inputs Outputs from other systems

Your University logo 11 The PEST Model Describing and analysing the HRM context HRM context Economic Technological Political Social/cultural

Your University logo 12 Prioritising external influences Dimension 1 – Degree of diversity Dimension 2 – Degree of complexity Dimension 3 – Degree of routine Dimension 4 – Degree of hostility HomogeneousDiversified Complex Simple RoutineNon-routine Hostile Supportive

Your University logo 13 To consider how organisations monitor changes in the environment, focus will be given to the impacts on labour markets Labour markets influence the supply and demand of human resources The employment market can be described as an economic exchange between the employer and employee Supply is represented by the economically active workforce Demand is represented by the availability of jobs (in turn driven by the demand for the product or service of the organisation) Monitoring environmental influences

Your University logo 14 The composition of the labour supply influences the method of sourcing and salaries to be paid The age structure of a population also affects labour supply HR managers have to ensure that supply meets demand for qualified staff via effective HRM activities such as: –Recruitment, induction, appraisal, promotion, training, reward, retirement, and redundancy Implications of changing employment markets

Your University logo 15 One of HR’s roles is to plan and predict the supply and demand of labour using a variety of sources: –surveys, applications, newspapers and periodicals Organisations may also benchmark to allow them to learn and adopt better HR practices Implications of changing employment markets

Your University logo 16 Organisations can be differentiated by type, shape, size, ownership and objective HR managers can use the system or PEST model to describe an organisation Environmental factors can be prioritised for importance and impact A key influence for HR managers is the employment market Labour supply influences sourcing and salaries HR managers can use various data sources to get information about employment markets Benchmarking can be used as a tool to assess HR best practice Lecture summary

Your University logo 17 Questions to answer: 1.What would be the potential impact of this development on Atif and his colleagues, both as HR specialists and as employees? 2.What sources of information were Atif and his colleagues using, and what other sources could they have used? 3.Why did the development described come as a surprise? Case study:

Your University logo 18 Questions to answer: 4.What range of responses to this development should be recommended to the director? 5.What long-term strategy would you recommend? Case study:

Question session Your title and name Your university‘s name Your contact details Your University logo