Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-1 Australian Human Resources Management by Seward and Dein This is the textbook for your course. This textbook can be purchased from your campus bookshop. ISBN

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-2 CHAPTER 1 Human Resource Management: Past, Present and Future

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-3 Learning Outcomes  Define management  The relationship between HRM and management  Formal and informal organisation structures  The relationship between HRM and organisational structures  The role of management theories in HRM development (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-4 Learning Outcomes (cont.)  Key objectives of HRM  The evolution of HRM roles  Professionalism and HRM  The role of HRM as a business partner  Ethics and social responsibility in HRM

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-5 Human Resource Management HRM is concerned with the management of the employment relationship within an organisation for the purpose of enhancing the organisation’s objectives and goals.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-6 Purposes of HRM  HRM is concerned with the management of the employment relationship, not the management of people.  HRM is goal oriented.  The objectives of HRM should align with organisational objectives at a strategic level.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-7 Employment Relationship Phases  The acquisition phase  The maintenance phase  The termination phase  The research and development phase

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-8 The Acquisition Phase Occurs when an employee or contractor is recruited, undergoes a selection process and, having accepted an offer of employment, is inducted into the organisation.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-9 The Maintenance Phase During an employee’s term of employment, considerations relating to compensation, appraisal of performance and training and development are of primary importance in retention strategies.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-10 The Termination Phase The termination phase occurs when the contract of employment ends. Termination may involve dismissals, redundancies, resignations and pre- and post-retirement counselling.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-11 The Research and Development Phase  Involves analysis of past practices and the development of future organisational practices when managing the employment relationship.  Specific considerations during this phase may include recruitment, selection and retention strategies and management of the termination process.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-12 What is an Organisation? An organisation may be defined as a body consisting of two or more persons with specific goals and outcomes.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-13 Common Features of Organisations  Objectives  Formal and informal structures

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-14 What are objectives?  Objectives may be defined as goals or purposes.  They are set to provide a mechanism for achieving targets or goals.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-15 The Purpose of Objectives  For an organisation to exist, there need to be central goals. These goals are translated into objectives.  An organisation requires people to participate in a common effort to achieve objectives.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-16 Organisational Structures  A feature of all organisations is their structure.  Structure is necessary to enable organisations to develop connections between the work required to be completed and individual responsibilities.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-17 Formal Organisation Structures Formal organisation structures may be defined by:  organisation charts that show the main areas of authority and reporting relationships  procedures and practices manuals  job descriptions and policy statements

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-18 Informal Organisation Structures  Informal relationships develop spontaneously in an organisation as individuals interact with one another.  Employees communicate through both formal and informal structures.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-19 Social Hierarchy and Status Symbols  The social hierarchy is the interconnection of human relationships in society. This hierarchy is accompanied by a status system.  Symbols of status serve as important components of the system of rewards that are used to motivate employees within an organisation.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-20 Organisational Culture  The concept of culture includes beliefs, attitudes and values.  Within an organisation, culture may include the way employers treat their employees (for example, in times of family crisis); breaches of internal operating practices; or the general education and experiences of managers, and how these affect their views of leadership and career planning.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-21 What is Management?  Within each organisation, there are people who are commonly called managers or who are deemed to be part of the management structure.  Managers are people who achieve outcomes through other people.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-22 Staff Managers  These managers are people that provide advice within an organisation. Staff managers advise, counsel and assist line managers.  Staff managers advise on the most effective and efficient means of processing work to achieve organisational goals.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-23 Line Managers  Line managers are managers who direct work within an organisation. Line managers are responsible for the achievement of identified goals within the organisation.  This type of manager decides the work to be done and allocates and supervises that work to ensure its completion.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-24 Functions of Management  Planning  Organising  Leading  Controlling

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-25 Planning  Planning involves the general management activities of research and analysis of the world outside and within the organisation itself.  It includes forecasting, setting objectives, budgeting, scheduling, and establishing procedures and allocation of resources.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-26 Organising  Organising involves grouping activities into a logical design and assigning activities to specific positions and people.  It requires human resource managers to design organisational positions (jobs) using such techniques as job analysis and writing job descriptions.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-27 Leading  Leading involves establishing direction or guidance.  Human resource managers are directly involved by establishing policies, principles and procedures to recruit, induct and train employees on an ongoing basis.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-28 Controlling Control by human resource managers occurs at two levels:  establishment of performance standards  measurement of deviations from performance standards and taking corrective action to achieve required standards

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-29 HRM Responsibilities  Advice: staff selection, development and management of legal regulations  Service: recruitment and training  Execution: negotiation, advocacy and employee counselling  Coordination: succession planning, remuneration and compensation payments  Auditing: employee appraisal, position evaluations and salary administration

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-30 The Development of Management Theories  Throughout history, a variety of different management theories have emerged. A management theory is a set of principles on which an activity is based.  Management theories provide a useful framework for understanding the development and evolution of HRM.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-31 Approaches Used by Management Theorists  Scientific management: use of scientific methods to define the ‘one best way’ for a job to be done.  Administrative: theories on which tasks managers should perform and how they should perform them in order to be ‘good’ managers.  Behavioural: people (workers) and their behaviour were viewed as factors that could affect the way managers managed and structured the organisation. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-32 Approaches used by management theorists (cont.)  Systems approach: theories on how the interrelationship and interdependent parts of the organisation contribute to its overall success.  Contingency approach: situation variables and ‘if then’ outcomes.  Other theories: theories that do not yet stand on their own, generally because they are new and largely untested.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-33 Development of HRM in Australia  The formal management of HRM in Australia has a history of less than 100 years.  Thirty years ago, HRM as a separate and distinct organisational function was largely unknown.  Today, almost every organisation of significant size has a separate, identifiable human resources department. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-34 Development of HRM in Australia  Federal and state laws in Australia are designed to regulate the employment relationship.  Governments intervene by enacting legislation that restricts and regulates the behaviour of employees and employers within their contractual relationship.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-35 HRM in Australia today  Businesses today face increasing pressures due to globalisation, technology and a range of internal and external factors.  The challenge for HRM is to provide a business partnering service by assisting the organisation to achieve both strategic and operational goals and objectives.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-36 Factors in HRM Transformation Transformation in HRM is occurring today due to the following:  The HR function is becoming increasingly complex in terms of tasks and job role requirements due to international factors and technology.  Organisations today are undergoing major changes at a rapid pace. The HR function needs to be responsive to these changing needs.

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-37 Ethics and Social Responsibility  Ethics is the science of human moral behaviour.  Ethical theories attempt to bring order into thinking by advising people which of their conflicting ideas should be applied to what they do, and which should not. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-38 Ethics and Social Responsibility (cont.)  The dilemma that arises for organisations is that many decisions that are made in a business have competing consequences and are not easy to resolve in a fair or truthful manner.  Have you ever been in a situation where you were unable to divulge information that affected yourself and/or others?

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-39 Chapter 1 Summary  Human resource management is about the management of a relationship.  Contractual relationships exist between employer and employee and they need to be managed effectively.  The employment relationship has three phases: acquisition, maintenance and termination. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-40 Chapter 1 Summary (cont.)  All organisations have FORMAL and INFORMAL structures.  Some organisational structures are built on hierarchy, status and official titles, while others are reasonably flat and non-departmentalised. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-41 Chapter 1 Summary (cont.)  All forms of management have four essential elements: planning, leading, organising and controlling.  The development of management theory has included the scientific management stage, the behavioural stage and the contingency stage. (cont.)

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim Dein Slides prepared by Michelle Travers 1-42 Chapter 1 Summary (cont.)  The Australian Human Resources Institute (AHRI) represents professional human resource managers in Australia.  Ethics and corporate social responsibility are the concern of both the employer and employee. The need to apply sound ethical principles to decision making is a constant challenge for all organisational members.