Managing Human Resources Chapter 7 © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Managing Human Resources Third management function after planning and organising Managing human resources is one of the key elements in the co-ordination and management of any organisation An organisation’s workforce represents one of its most valuable resources © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Historical Development of the HR Function Early 1900s- Welfarists, Taylorists Mid 1900s - Bureaucrats, Consensus negotiators 1970s- Centralised pay bargaining 1980s- The emergence of human resource management © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Activity Areas in Human Resource Management Human resource planning Recruitment Selection Pay and benefits Performance appraisal Training and development © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

1. Human Resource Planning It is important that sufficient numbers of the appropriate calibre of people are available to the organisation Employees must be planned for, much like any other resource HR planning is a process which affects every aspect of human resource management © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

The Human Resource Planning Process © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Stages in Human Resource Planning Process 1. Demand analysis- estimation of quality and quantity of HR needed to meet objectives of the organisation Its based on an understanding of the organisations strategy and its implications for the workforce Techniques used include - managerial estimates, statistics and work study © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Stages in Human Resource Planning Process 2. Supply Analysis - estimation of quality and quantity of available labour Internal and external labour market Planned and unplanned losses need to be considered External factors such as nature of competition for labour, education, population trends & government policies © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Supply analysis: the areas to be considered © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Stages in Human Resource Planning Process 3. Estimating Deficits \ Surpluses -comparison of the results will show a match, deficit or surplus 4. Prepare Action Plan - to cover recruitment, selection, training and development and promotions © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 2. Recruitment Recruitment is concerned with attracting a group of potential candidates to apply for a vacancy that the organisation has available The key choice in recruitment is whether to recruit internally or externally Two key stages identified in the recruitment process: (1) background stage and (2) actual recruitment stage © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 2. Recruitment Background stage - conducting a job analysis which comprises of a job description and a person specification Job description is a statement of the main tasks and responsibilities Person specification details the skills, qualifications, knowledge and experience the individual should have © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 2. Recruitment Actual recruitment stage – task of attracting a pool of potential candidates Internal - transfers, promotions or demotions External - schools, ITs, Universities, agencies, FAS colleges CV and standard application form © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Costs associated with different sources of recruitment © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Usual method of filling vacancies (N = 261) © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 3. Selection The selection process effectively begins when application forms have been received Selection Tools - 1. Interviews (one to one, panel and group) All have 3 objectives to gain information about candidate to see fit with job to ensure applicant has information about job to leave applicant with impression of fair treatment © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Common interviewing errors © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 Selection Tests 1. Intelligence- mental capacity, not a good indicator of job performance 2. Aptitude Tests - predict areas of special aptitude, not a good indicator of job performance 3. Proficiency Tests - tests of achievement 4. Personality Tests 5. Reference checking © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Selection methods most commonly used in Ireland © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 4. Pay and Benefits An organisation’s reward system is a powerful indicator of its philosophy and approach to workforce management Employee rewards are usually classified under two broad headings: 1. Intrinsic rewards - spring from the job itself and include autonomy, responsibility an challenge 2. Extrinsic rewards - more tangible in nature and include pay, job security and working conditions © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Key Factors Influencing Satisfaction with Rewards (Lawlor 1977) Depends on the amount received versus what individual feels s\he deserves Depends on comparisons with others Employees satisfaction with intrinsic and extrinsic rewards effects job satisfaction People differ in the rewards they desire and value Many extrinsic rewards satisfy because they lead to other rewards © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 Payment Systems Flat rate only - fixed hourly, weekly, monthly rate Flat rate + individual, group or company payment by results Merit Rating - employees get bonus payments based on a systematic assessment of their performance © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 Payment Systems Profit \ Gain Sharing - employees get a bonus related to improved company performance for example company shares Piecework - employees are paid for the work that they have completed © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Payment systems in Ireland © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

5. Performance Appraisal Assessing the work of employees is a key function of human resource management It can be seen as a periodic assessment of the performance of the individual’s future potential There are a number of different objectives in performance appraisal © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Objectives of performance appraisal in the Republic of Ireland © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 Appraisal techniques © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

6. Training and Development There is a clear distinction between the concepts Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning experiences Development is a broader concept referring to general growth of an individuals skilled and abilities through conscious and unconscious learning © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Historical overview of training in Ireland © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Training and Development Process Formulating a training plan Identifying training needs Planning and conducting the training Evaluating training and development activities © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Training and development methods used in Irish organisations © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

The Employee Relations Context- Trade Unions A trade union can be defined as a continuous association of wage earners with the objective of improving or maintaining conditions of employment. There are three main types of trade unions in Ireland: craft unions, general unions and white-collar unions © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Trade union objectives in Ireland © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

© Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006 Trade union structure © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006