Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–1 CHAPTER 11 HUMAN RESOURCE MANAGEMENT

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–2 LECTURE OUTLINE The HRM framework Establishing the employment relationship Maintaining the employment relationship HRIS, internet, intranets and extranets Terminating the employment relationship Contemporary issues in HRM

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–3 THE HRM FRAMEWORK HRM functions Identifying HR needs Attracting human resources Maintaining human resources Terminating the relationship

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–4 THE HRM FRAMEWORK The Harvard Map Stakeholder interests and situational factors: HR policy decisions about: Extent of employee influence (participation) Flow of human resources Reward systems Work systems Outcomes of HR decisions: Degree of employee commitment Competence of employees Cost effectiveness of HR policy choices Congruence between employee and employer goals

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–5 THE HRM FRAMEWORK Key assumptions underlying HRM Proactive approach, linked to strategic planning and cultural change View of people as capital for development, not as a cost Possibility of common interests and mutually beneficial relationships between stakeholders, rather than conflicts

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–6 THE HRM FRAMEWORK Evolution of Australian HRM - Stages s, Welfare and administration - hiring staff, keeping records s-1970s, Expanded welfare and administration - personnel functions 3 - Mid-1970s - late 1990s, HRM (expanded HRM functions: planning, IR, training and development, OH&S) present, Strategic HRM - a more strategic focus - devolution of traditional HRM to line managers

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–7 THE HRM FRAMEWORK Regulatory framework In Australia and 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

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–8 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Acquiring human resources Human resource planning Job analysis Recruitment Selection Interviews

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–9 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Human resource planning Determining future human resource needs in relation to an organisation’s business objectives or strategic plan.

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–10 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.

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–11 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Job Analysis – Outcomes:  Job descriptions and job specifications – Impacts upon:  Recruitment and selection  Performance appraisal  Remuneration  Training and development  Job design and redesign

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–12 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Recruitment The process of finding and attracting job candidates capable of effectively filling job vacancies.

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–13 RECRUITMENT THREE OBJECTIVES Maximising the pool of applicants at minimum cost Maximising the pool of applicants at minimum cost Attracting suitably qualified and skilled applicants Attracting suitably qualified and skilled applicants Ensuring compliance by the organisation with government regulations Ensuring compliance by the organisation with government regulations

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–14 RECRUITMENT INTERNAL RECRUITMENT ADVANTAGES DISADVANTAGES - Improves morale- ’Inbreeding’ - Better assessment- Nepotism - Motivates staff- Infighting - Maintains organisation- Induction/training knowledgecosts

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–15 RECRUITMENT EXTERNAL RECRUITMENT ADVANTAGES DISADVANTAGES - “Fresh blood”- Harder to assess - New knowledge and - Lowers internal experience morale - Gain competitor - Adjustment to different insight work culture

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–16 METHODS OF RECRUITMENT Advertisements Employee referrals Internal promotion Employment agencies E-recruitment Contractors Campus interviews Executive recruitment (‘head hunters’) Executive recruitment (‘head hunters’)

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–17 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

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–18 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 forms Written tests Employment tests Selection interviews Assessment centres

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–19 MAINTAINING THE RELATIONSHIP Reward management: Remuneration and benefits The financial payments and indirect benefits to employees for their work. Training The process of equipping people with skills and competencies. Development Broad preparation of employee for future opportunities through the acquisition of new knowledge, skills. Performance management/appraisal Judgmental assessment of employee performance

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–20 MAINTAING THE RELATIONSHIP Remuneration and benefits: Linked to job analysis Governed by regulatory framework Internal pay relativity External pay relativity

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–21 MAINTAING THE RELATIONSHIP Training and development: Choices: – Buy skills, build them, or a mixed approach Strategic rationales for training: – Proactive - long-term needs – Reactive - immediate problems – Enhancement of employee motivation, commitment and retention

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–22 MAINTAING THE RELATIONSHIP PERFORMANCE APPRAISALS MOULD EMPLOYEE BEHAVIOUR TO COMPANY NORMS IMPROVE QUALITY OF SALARY REVIEWS IMPROVE HR PLANNING, TRAINING AND SUCCESSION BUILD CONSISTENCY OF EMPLOYEE ACTIONS AND ORGANISATION GOALS PROVIDE RECORD FOR DISMISSAL, DEMOTION, GRIEVANCE, APPEAL

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–23 MAINTAING THE RELATIONSHIP Performance appraisal Performance appraisal 360 o feedback— non-hierarchical method 360 o feedback— non-hierarchical method

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–24 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 and systems within an organisation Extranets Closed networks of information systems between organisations

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–25 HRIS, INTERNETS, 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

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–26 THE FUTURE OF WORK Growth of call centres Teleworking Hot-desking Increased part-time, casual and temporary staff

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–27 FLEXIBILITY IN EMPLOYMENT Flexible organisations Downsizing Contracting out Strategic alliances with staffing agencies Flexible employees Self-employment Contracting Alternative work schedules Flexitime Compressed work week Job sharing

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–28 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

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–29 TERMINATING THE RELATIONSHIP Key aspects: Regulatory requirements Exit interviews Use of out-placement consultants Effect on HR and other functions of the organisation

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–30 CONTEMPORARY HRM ISSUES Managing diversity Ageing workforce Skills shortages Work-life balance (WLB) Outsourcing HRM Measuring HRM effectiveness

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–31 LECTURE SUMMARY Establishing, maintaining and terminating the employment relationship The regulatory and environmental context HR Planning: Job analysis, descriptions and specifications Recruitment and selection processes Maintaining the relationship - remuneration, training and development, performance appraisal

Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 11–32 LECTURE SUMMARY continued Impacts of information technology: HRIS and networks Flexible organisations, flexible workers. Call centres, teleworking, hot-desking Terminating the employment relationship - careful management needed Contemporary issues: diversity, ageing workforce, skill shortages, work-life balance, oursourcing, measuring HRM effectiveness Human resource flow or changes will affect other HRM and general management functions