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

2. 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

3. 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

4. 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

5. 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

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

7. 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

8. 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

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

10. 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

11. © 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

12. © 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

13. © 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

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

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

16. © 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

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

18. © 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

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

20. © 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

21. 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

22. © 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

23. © 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

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

25. 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

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

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

28. 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

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

30. 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

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

32. 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

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

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