Human resource management in Australia

Human resource management in Australia
Chapter 1

Introduction to human resource management (HRM)
Objectives Discuss the roles and activities of a company’s human resource function. Discuss the competitive challenges influencing Australian companies. Discuss how human resource practices affect a company’s balanced scorecard. Discuss what companies should do to be competitive in the global marketplace. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Introduction to human resource management (HRM)
Objectives (continued) Identify the characteristics of the workforce and how they influence human resource management practices. Discuss human resource practices that support high-performance work systems. Provide a brief description of human resource management practices. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Human resource management (HRM)
Refers to the policies, practices and systems that influence employees’ behaviour, attitudes and performance. Many companies refer to HRM as ‘people practices’. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 1.1 HRM practices Strategic human resource management
Job Analysis & Design Selection & Placement Performance Management Learning and development Compensation Recruitment Managing Diversity Company Performance HR Planning Industrial relations Measuring and Evaluating HR Information Systems Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The development of theoretical bases for HRM
Theoretical perspectives of HRM include: Behavioural view Resource-based view Politically-influenced view. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 1.2 The Harvard Analytical Framework for HRM
Source: M. Beer, B. Spector, P.R. Lawrence, D.Q. Mills & R.E. Walton, Managing human assets, Free Press, New York, 1984, p. 16. Stakeholder Interests Shareholders Management Employee groups Government Community Unions Situational Factors Workforce characteristics Business strategy and conditions Management philosophy Labour market Task technology Laws and societal values HRM Policy Choices Employee influence Human resource flow Reward systems Work systems HR Outcomes Commitment Competence Congruence Cost effectiveness Long-term Consequences Individual well-being Organisational effectiveness Societal well-being Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Features of the dominant approach to HRM
Focus on enterprise or firm. HRM is an investment in human capital. Reciprocal fit between organisational strategy and HR strategy. All managers are responsible for HRM. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 1.1 Most significant changes in HR (1990-95)
Source: C. Fisher & P.J. Dowling, ‘Support for an HR approach in Australia: the perspective of senior HR managers’, Asia Pacific Journal of Human Resources, 37 (1), 1999, p. 9. (*n=322; open-ended data; respondents may have answered more than one suggestion) n* % Integration & strategic focus of HR policies Employee relations Contribution of HR to company performance Worker participation and team work Quality issues Training Flexible work patterns Devolution of function Legislative changes Economic rationalism Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 1.2 Issues with greatest impact on HR (1995-2000)
% HR role in change & strategic planning Employee relations Contribution of HR to company performance Flexible work patterns Legislative changes Quality issues Internationalisation Training Worker participation and team work Technology Performance management Outsourcing Source: C. Fisher & P.J. Dowling, ‘Support for an HR approach in Australia: the perspective of senior HR managers’, Asia Pacific Journal of Human Resources, 37 (1) 1999, p. 9. (*n=322; open-ended data; respondents may have answered more than one suggestion) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Copyright  2003 McGraw-Hill Australia Pty Ltd.
PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Roles performed by HR professionals (Ulrich, 1997)
Administrative expert Employee champion Change agent Strategic business partner Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 1.3 HR roles and competencies
Analytical, fact-based decision making Leadership Conceptual ideas Visioning Compliance Regulation Administration Control Interpersonal team work Evaluation Benefits Audit Data management Industrial relations Legal Compensation Strategic management Organisational development Change management Diversity Counselling Employee development Figure 1.3 HR roles and competencies Source: The Conference Board, Inc., The Changing Human Resource Function, The Conference Board, New York, 1990, p. 11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 1.4 Competitive challenges influencing Australian challenges
Competing through high-performance work systems Australian Business Competitiveness Competing through globalisation Change employees’ and managers’ work roles Integrate technology and social systems Provide a return for shareholders Develop employees and create a positive work environment Expand into foreign markets Prepare employees for work in foreign locations Competing by meeting stakeholders’ needs Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The global challenge for HRM
Development of global markets Global competitiveness through HRM practices Preparing employees for international assignments Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The challenge of meeting stakeholders’ needs: Table 1.7 The balanced scorecard Perspective Questions answered Examples of critical indicators Customer Internal Innovation and learning Financial How do customers see us? What must we excel at? Can we continue to improve and create value? How do we look to shareholders? Time, quality, performance, service, cost Processes that influence customer satisfaction, availability of information on service and/or manufacturing processes Improve operating efficiency, launch new products, continuously improve, empower workforce Profitability, growth, shareholder value Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The challenge of meeting stakeholders’ needs: Figure 1.5 The Australian Business Excellence Model Source: Australian Quality Council Ltd., ‘Success stories’, Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The challenge of meeting stakeholders’ needs: characteristics of the Australian workforce Gender Ethnic diversity Structure of the economy Skill deficiencies Changes in the employment contract Changes in the place of work Employee values Legislation Ethical considerations Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The challenge of high-performance work systems (HPWS)
Change in employees’ work roles and skill requirements Increase in the use of teams to perform work Changes in the nature of managerial work Changes in company structure Increased availability of HR information bases Competitiveness in HPWS Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 1.6 Relationship between HR philosophy and practices
Human resource management system philosophy Guiding Principles Employee performance is valued Practice alternatives Mix of practices that are consistent with philosophy and are aligned with each other Mix of performance appraisals, incentive pay, promotions Practice processes Team-based incentive pay State-of-the-art, 360º performance appraisal Source: Based on B. Becker & B. Gerhart, ‘The impact of human resource management on organizational performance: progress and prospects’, Academy of Management Journal 39, 1996, p Used with permission. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

High-Performance Work System Challenge
Figure 1.7 Examples of how HR practices can help companies meet the competitive challenges Global Challenge HR Practices Continuous learning environment is created Discipline system is progressive Customer satisfaction and quality are evaluated in the performance management system Skills and values of a diverse work force are valued and used HR strategy is matched to business strategy Work is performed by teams Pay systems reward skills and accomplishments Selection system is job-related and legal Work attitudes of employees are monitored Stakeholder High-Performance Work System Challenge Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 1.8 Major dimensions of HRM practices contributing to company competitiveness Dimensions of HRM Practices Managing the human resources environment Building human resource systems Developing human resources Rewarding human resources Competitiveness Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Overview of HRM topics Part 1: Managing the Human Resources Environment Part 2: Building HRM Systems Part 3: Developing people Part 4: Rewarding people Part 5: Directions for HRM Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Overview of HRM topics HRM in Australia Strategic HRM Legal context for HRM Analysis and design of work HR planning and HR information systems Recruitment, selection and placement Industrial relations Managing diversity and work–life balance Performance management Employee learning Employee development and career management Managing compensation Performance-related pay Managing a global workforce Managing employee retention and turnover Evaluating and improving the HR function Part 1: Part 2: Part 3: Part 4: Part 5: Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Strategic human resource management
Chapter 2

Strategic human resource management (SHRM)
Objectives Describe the differences between strategy formulation and strategy implementation. List the components of the strategic management process. Discuss the role of the HR function in strategy formulation. Describe the linkages between HR and strategy formulation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Discuss the more popular typologies of generic strategies and the various HR practices associated with each. Describe the different HR issues and practices associated with various directional strategies. List the competencies the HR executive needs to become a strategic partner in the company. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Strategic management A process or approach to addressing the competitive challenges faced by an organisation. It can be thought of as managing the ‘pattern or plan that integrates an organisation’s major goals, policies and action sequences into a cohesive whole’ (Quinn, 1980). Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Generic strategies (Porter)
Cost Differentiation Focus Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Strategic types (Miles & Snow)
Defender Analyser Prospector Reactor Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

A pattern of planned human resource deployments and activities intended to enable an organisation to achieve its goals. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Components of the strategic management process
Strategy formulation The process of deciding on a strategic direction by defining a company’s mission and goals, its external opportunities and threats, and its internal strengths and weaknesses. Strategy implementation The process of devising structures and allocating resources to enact the strategy chosen by a company. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Linking HR and the strategic management process
Strategic choice The organisation’s strategy; the ways an organisation will attempt to fulfill its mission and achieve its long-term goals. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

A model of the strategic management process (see Figure 2.1 for more detail) Strategic choice External analysis Internal analysis HR needs HR capability HR actions Firm performance Strategy formulation Strategy implementation Strategy evaluation Emergent strategies Goals Mission HR practices Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 2.2 Linkages of strategic planning and HRM
Source: Adapted from K. Golden & V. Ramanujam, ‘Between a Dream and a Nightmare: On the Integration of the Human Resource Function and the Strategic Business Planning Process’, Human Resource Management 24, 1985, pp. 429–51. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 2.3 Strategy formulation Strategic choice External analysis Opportunities Threats Goals Mission Internal analysis Strengths Weaknesses HR Input Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Strategy formulation: four components
Mission: a statement of the organisation’s reason for being. Goals: What an organisation hopes to achieve in the medium- to long-term future. SWOT analysis (strengths, weaknesses, opportunities, threats), comprising: External analysis: Examining the organisation’s operating environment to identify strategic opportunities and threats. Internal analysis: The process of examining an organisation’s strengths and weaknesses. HR input: HR executives involved in strategy formulation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 2.4 Variables to be considered in strategy implementation
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Strategy implementation (see Figure 2.5 for more detail)
Strategic choice HR needs HR capability HR actions Firm performance Emergent strategies HR practices Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 2.5 Strategy implementation

Menu of HR practice options
Job analysis and design Recruitment and selection Employee learning and development Performance management Pay structure, incentives and benefits Industrial relations See Table 2.4 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Directional strategies
Concentration strategies Internal growth strategies External growth strategies Divestment or downsizing strategies Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The role of HR in providing strategic competitive advantage
Emergent strategies Enhancing firm competitiveness Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 2.6 HR competencies

Summary SHRM: to proactively provide a competitive advantage through the company’s human resources. The HR function needs to be integral to strategy formulation. HRM has an impact on strategy implementation. The strategic role of the HR function requires business, professional-technical, change management and integration competencies. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The legal context for human resource management
Chapter 3

Legal context for HRM Objectives Understand the legal context for HRM in Australia. Identify the major laws related to equal employment opportunity and the protection provided by each of these laws. Identify types of discrimination and how managers can prevent these. Identify behaviour that constitutes sexual harassment and strategies that can be used to prevent sexual harassment. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Legal context for HRM Objectives (continued) Identify the issues related to affirmative action. Discuss the legal issues involved with HR activities such as recruitment and selection. Discuss the HRM implications of privacy laws. Discuss the legal issues involved in termination of employment. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Sources of legal obligations for employers and employees in Australia
Common law Statutes Statutory agreements Awards Employment contracts Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Common law Law developed from court decisions or the judgments that guide the interpretation of legal obligations. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Statutes Acts and regulations of parliament (federal, state or territory) which legislate the minimum legal obligations and conditions that apply in the employment relationship. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Examples of legislation related to employment
Workplace Relations Act 1996 (Cwlth) Equal Opportunity for Women in the Workplace Act 1999 (Cwlth) Privacy Amendment (Private Sector) Act 2000 (Cwlth) Workplace Health and Safety Act 1999 (Qld) See Table 3.2 for more examples Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Statutory agreements Australian Workplace Agreements (AWAs) Agreements negotiated directly between an employer and employee(s), introduced under the Workplace Relations Act (WRA) 1996. Certified Agreements Agreements based on negotiations between an employer and employee or their union(s). These agreements are registered by an industrial tribunal. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Awards Written determinations created by federal or state industrial tribunals, specifying the minimum terms and conditions of employment, such as hours of work, minimum pay, and types of leave allowable. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employment contracts An agreement between employer and employee, which may be either formal/written or informal/verbal. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Equal employment opportunity (EEO)
Attempts to ensure that all individuals have an equal chance for employment, regardless of characteristics such as ethnic or national origin, religion, sex, or age. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Discrimination Acts involving a distinction, exclusion, restriction or preference between one individual or group and another, which has the purpose or effect of disadvantage to one. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Discrimination Direct discrimination: the direct and less favourable treatment of one individual or group with a certain attribute, in comparison with treatment of another individual or group (without that attribute). Indirect discrimination: practices that may appear on the surface to be fair but result in disadvantage to an individual or group. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Affirmative action (or positive discrimination)
Refers to the practice of providing favourable treatment to groups that have been disadvantaged in the past. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Sexual harassment Unwelcome sexual advances Hostile working environment When someone’s behaviour in the workplace creates an environment that makes it difficult for a person to work. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Privacy and surveillance legislation
Privacy Amendment (Private Sector) Act 2000 (Cwlth) See Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Termination of employment
Unfair dismissal Wrongful dismissal Unlawful termination Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Grounds for dismissal Dismissal on notice Summary dismissal Redundancy or retrenchment Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary HRM must operate within legal constraints. All managers need a good understanding of legal requirements and prohibitions. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Occupational health and safety (OH&S)
The physical, physiological and psychosocial conditions of an organisation’s workforce, related to aspects of work and the work context. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives Discuss the legal issues involved with occupational health and safety. Discuss the strategic HRM issues related to occupational health and safety. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

There are at least 2,900 work-related deaths in Australia each year. In : 392 compensated fatalities in Australia 368 of these were males 117,464 new workers’ compensation cases reported 3579 were managers/administrators (lowest) 43,210 were labourers and related workers (highest) average cost per case = $6,492 Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

OH&S legislation National Occupational Health and Safety Commission Act 1985 (Cwlth) State and territory legislation Duty of care principle Common requirements in Acts: promotion of OH&S in the workplace provision of safe work systems prevention of industrial injuries and disease protection of public health and safety in relation to work activities rehabilitation and maximum recovery from incapacity of injured workers. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Safety climate The attitudes, beliefs, perceptions and values shared by employers and employees in relation to safety. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Safety climate Includes factors such as: Practices and procedures Communication of OH&S issues at the workplace Importance of OH&S in training and performance appraisal Management attitudes about OH&S Safety of equipment and facilities Management actions in response to OH&S issues Employee understanding of OH&S policies and procedures Employee participation in activities related to OH&S. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Steps in OH&S management and safety awareness programs
OH&S data collection Evaluation of severity, risk and costs of OH&S hazards and implementation of OH&S programs Implementation of an assessment and feedback system Monitoring and evaluation of OH&S programs against stated goals and objectives Implementation of safer and healthier working conditions and practices, to promote OHS in the future Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

OH&S and other HRM activities
Job design Health promotion, training and development programs Diversity management Employee health promotion programs Compensation management Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary OH&S strategies and practices can contribute to the competitive advantage of the organisation. Components of an OH&S program should be integrated with the overall strategies and practices of the organisation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Analysis and design of work
Chapter 4

Analysis and design of work
Objectives Analyse a work-flow process, identifying the output, activities and inputs in the production of a product or service. Understand the importance of job analysis in strategic and human resource management. Choose the right job analysis technique for a variety of human resource activities. Identify the tasks performed and the skills required in a given job. Understand the different approaches to job design. Comprehend the trade-offs among the various approaches to designing jobs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job analysis and job design
The process of getting detailed information about jobs. Job design The process of defining the way work will be performed and the tasks that will be required in a given job. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Work-flow analysis The process of analysing the tasks necessary for the production of a product or service, prior to allocating and assigning these tasks to a particular job category or person. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 4.1 Developing a work-unit activity analysis

Organisational structure
The relatively stable and formal network of vertical and horizontal interconnections among jobs that constitute the organisation. Centralisation The degree to which decision-making authority resides at the top of the organisational chart. Departmentation The degree to which work units are grouped according to functional similarity or similarity of work flow. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 4.2 The functional structure
Source: Adapted from J.A. Wagner & J.R. Hollenbeck, Organizational Behavior: Securing Competitive Advantage, 3rd edn, Prentice-Hall, Englewood Cliffs, NJ, Reprinted with permission. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 4.3 The divisional structure: product structure
Source: Adapted from J.A. Wagner & J. R. Hollenbeck, Organizational Behavior: Securing Competitive Advantage, 3rd edn, Prentice-Hall, Englewood Cliffs, NJ, Reprinted with permission. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 4.4 The divisional structure: geographic structure
Source: Adapted from J.A. Wagner & R. Hollenbeck, Organizational Behavior: Securing Competitive Advantage, 3rd edn, Prentice-Hall, Englewood Cliffs, NJ, Reprinted with permission. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 4.5 The divisional structure: client structure
Source: Adapted from J.A. Wagner & J.R. Hollenbeck, Organizational Behavior: Securing Competitive Advantage, 3rd edn, Prentice-Hal. Reprinted with permission. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job analysis and other HRM activities
Work redesign HR planning Selection Employee learning and development Performance management Career planning Job evaluation Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job analysis information
Job description Tasks, duties and responsibilities (TDRs) Job specification Knowledge, skills and abilities (KSAOs) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job analysis methods Position Analysis Questionnaire (PAQ) Task Analysis Inventory Fleishman Job Analysis System (FJAS) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job design approaches Motivational Mechanistic Biological Perceptual-motor Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 4.5 Summary of outcomes from the job design approaches
Job design approach Positive outcomes Negative outcomes Motivational Mechanistic Biological Perceptual-motor Higher job satisfaction Higher motivation Greater job involvement Higher job performance Lower absenteeism Decreased training time Higher utilisation levels Lower likelihood of error Less chance of mental overload and stress Less physical effort Less physical fatigue Fewer health complaints Fewer medical incidents Lower likelihood of accidents Increased training time Lower utilisation levels Greater likelihood of error Greater chance of mental overload and stress Lower job satisfaction Lower motivation Higher absenteeism Higher financial costs because of changes to equipment or job environment Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Effective implementation of organisational strategy relies on attention to work-flow analysis, job analysis and job design. Managers need to understand the entire work-flow process in their work unit. Managers need clear, detailed information about jobs, obtained via job analysis. Desirable work outcomes for employees include motivation, satisfaction, safety, health and achievement. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Human resource planning and human resource information systems
Chapter 5

Human resource planning (HRP)
Objectives Discuss how to align a company’s strategic direction with its human resource planning. Determine the labour demand of workers in various job categories. Discuss the advantages and disadvantages of various ways of eliminating a labour surplus and avoiding a labour shortage. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Human resource planning (HRP)
The process through which organisational goals are translated into human resource goals, concerning with staffing levels and allocation. Human resource planning involves forecasting human resource needs for an organisation, and planning the necessary steps to meet these needs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 5.1 Overview of the HRP process

Forecasting The attempt to determine the supply of and demand for various types of human resources, in order to predict future labour shortages or surpluses in areas within the organisation. Determining labour demand Determining labour supply transitional matrices Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Goal setting and strategic planning
Reducing an expected labour surplus, e.g. Downsizing Early retirement programs or Avoiding an expected labour shortage, e.g. Employing temporary workers Outsourcing Overtime and expanding worker hours Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Downsizing The planned elimination of large numbers of personnel designed to enhance organisational effectiveness. Workforce reduction Organisational redesign Systemic change Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Major reasons for downsizing
Cost reduction Introduction of new technology Mergers and acquisitions leading to reduced need for bureaucracy Globalisation and changing location of business Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Major reasons for the failure of downsizing
Initial cost savings but long-term negative effects Loss of people who are ‘irreplaceable assets’ ‘Survivor syndrome’: loss of motivation, self-absorption, risk-aversion ‘Survivors’ seek new employment Reputational damage Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Program implementation and evaluation
Accountability Authority and resources available to accomplish the stated goals Regular progress reports on implementation Evaluation of results Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Formal HRP is more likely in organisations that:
Are larger Have greater overall business planning sophistication Have top management support for human resource planning Have more involvement of human resource managers in the business planning process Have greater integration across human resource activities. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

A strategic approach to HRP includes:
Top management and HR managers desire proactive involvement of HRM in the achievement of organisational goals Integration of employee needs and wishes for career development with organisational goals Coordination across HRM activities in light of organisational strategies and goals Adherence to principles of equal opportunity Focus on planning at the organisational level, not only at industry or regional level. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary: HRP When managed well, human resource planning can enhance the success of the organisation, while minimising difficulties resulting from poorly anticipated labour surpluses or shortages. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Human resource information systems (HRIS)
Objectives Discuss the types of technology that can improve the efficiency and effectiveness of HR. Discuss human resource information systems and their various applications to HR activities. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Human resource information systems (HRIS)
A system used to acquire, store, manipulate, analyse, retrieve and distribute information related to a company’s human resources. May lead to ‘e-HRM’ or ‘virtual HRM’? Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Factors leading to use of more sophisticated HRIS
Development of increasingly complex and comprehensive IT systems Economic pressures in 1980s and 1990s Increasing demands by government for organisations to collect employee data Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

HRIS are used for three broad functions:
Transaction processing, reporting and tracking Decision support systems Expert systems Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Technology: advantages or disadvantages?
Employees gain complete control over their training and benefits enrolments (self-service) A paperless employment office can be created Streamlining the HR department’s work Technology can provide knowledge-based decision support Employees and managers select the type of media they want to use to send and receive information Work can be completed at any time, any place, day or night Closer monitoring of employees’ work Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

HR technologies Interactive voice technology Internet Networks and client-server architecture Relational databases Imaging CD-ROM and laser disc Expert systems Groupware Intranets Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

HRIS: examples of applications for HRM
HR planning Succession planning Workforce profile analysis Workforce dynamics analysis Staffing Applicant recruiting and tracking Employee database development Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

HRIS: examples of applications for HRM (continued)
Performance management Learning and career development Compensation and benefits Payroll Job evaluation Salary surveys Salary planning International compensation Benefits management Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary: HRIS Increasingly, organisations will depend on more sophisticated HRIS in order to support human resource activities. Key drivers will be: Increasing globalisation of business Development of more flexible, non-traditional organisation structures Development of information technology. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Recruitment, selection and placement
Chapter 6

Recruitment and selection
Objectives Describe the various recruitment policies adopted by organisations to make job vacancies more attractive. List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and the methods for evaluating them. Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Recruitment and selection
Objectives (continued) Establish the basic scientific properties of personnel selection methods, including reliability, validity, and generalisability. Discuss how the particular characteristics of a job, organisation, or applicant affect the utility of any test. List the common methods used in selecting human resources. Describe the degree to which each of the common methods used in selecting human resources meets the standards of reliability, validity, generalisability, utility and legality. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Recruitment Any practice or activity carried on by the organisation with the primary purpose of identifying and attracting potential employees. Human resource policies Organisational decisions that affect the practices and systems which, in turn, influence employees’ behavior, attitudes and performance. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 6.1 Overview of the individual job choice - organisational recruitment process Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Vacancy characteristics
Internal vs. external recruiting Lead-the-market pay strategies Image advertising Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Recruitment sources Internal vs. external Direct applicants and referrals Advertisements Public employment agencies Private employment agencies Universities E-cruitment Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Evaluating the quality of a recruitment source: Table 6
Evaluating the quality of a recruitment source: Table 6.1 Hypothetical yield ratios for four recruitment sources Recruitment source University Employee referrals Newspaper advertisement Executive search firms Resumés generated Interview offers accepted Yield ratio Applicants judged acceptable Accept employment offers Yield ratios Cumulative yield ratio Cost Cost per hire 200 175 87% 100 57% 90 90% 90/200 45% $30 000 $333 50 45 40 89% 35 88% 35/50 70% $15 000 $428 500 400 80% 12% 25 50% 25/500 5% $20 000 $800 20 100% 19 95% 15 79% 15/20 75% $90 000 $6000 Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Recruiter traits and behaviours
Functional area Traits Realism Realistic job preview Enhancing recruiter impact Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Selection The process by which a company decides who will or will not be allowed into the organisation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Selection method standards
Reliability The consistency of a performance measure; the degree to which a performance measure is free from random error. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Validity The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. Criterion-related validation predictive validation concurrent validation Content validation content-validation ratio: CVR = - N/2 N/2 ne Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Generalisability The degree to which the validity of a selection method, established in one context, extends to other contexts. Utility The degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in real organisations. Legality Whether a selection method is legally compliant. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 6.6 Concurrent and predictive validation designs

Types of selection methods
Interviews References and biographical data Physical ability tests Cognitive ability tests Personality inventories Work samples Honesty tests and drug tests Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Types of selection methods
Interviews Structured Standardised Focused Situational interview items experience-based future-oriented Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Evaluating selection methods
Selection methods can be evaluated according to the five standards: reliability, validity, generalisability, utility and legality. See Table 6.8 for more detail. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Recruiting creates an applicant pool from which the organisation can draw for new recruits. Selection methods should conform to five critical standards: reliability, validity, generalisability, utility and legality. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Industrial relations Chapter 7

Industrial relations (IR)
Objectives Discuss the role of HRM and the pursuit of a neo-liberal IR agenda in bringing about the gradual decentralisation of Australian IR. Describe the emergence of workplace bargaining and changes to dispute resolution which have led to a move away from industrial tribunals. Discuss the changing nature of employment relationships, including the emergence of individual agreements, non-standard employment contracts, contracting out and privatisation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Explain the reasons for declining membership of Australian unions. Discuss the growth of employer prerogative, brought about through policies such as employment flexibility. Discuss the industrial relations challenges for the HR professional of the future. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employees and their unions, employers and their associations, and governments and industrial tribunals are all actors involved in regulation of the employment relationship. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Decentralisation of industrial relations
Lowering of the centre of industrial relations activity from the Australian Industrial Relations Commission (AIRC) to the level of the individual workplace. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Enterprise bargaining
Direct negotiations between an employer (or enterprise) and employees (or their representatives). Enterprise agreements Agreements negotiated between an employer and employees. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Workplace Relations Act (WRA) 1996
The WRA provides for four forms of employment regulation: Awards Collective union agreements Collective non-union agreements Individual agreements Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 7.2 Changes in dispute resolving mechanisms between 1990 and 1995 Table shows the changes in workplaces with 20 or more employees. Source: Compiled from A. Morehead, M. Steele, M. Alexander, K. Stephen & L. Duffin, Changes at Work: The 1995 Australian Workplace Industrial Relations Survey. Longman: Sydney, 1997. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 7.3 Parties involved in workplace dispute resolution clauses
Source: B. van Gramberg, ‘Avenues for the Growth of Private Alternative Dispute Resolution in Australian Workplaces’, in I. McAndrew & A. Geare (eds.) Proceedings of the 16th Conference of the Association of Industrial Relations Academics of Australia and New Zealand, Queenstown New Zealand, 6-8 February 2002, 2002, pp Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The changing nature of employment
Emergence of non-standard forms of employment Casualisation of the workforce Outsourcing and contracting Australian workplace agreements (AWAs) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Declining unionisation rates in Australia
August 2001: 24.5% unionisation Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Factors in the decline of unionisation
Legislative changes Decentralisation of IR Introduction of HRM practices Downsizing of the public service Restructuring of industry Increased participation of women in workforce Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Union responses to the decline of unionisation
‘Damage control’ Recruitment of new members ACTU campaign: Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Growth of employer prerogative
Example: Mudginberri dispute in 1985 Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

IR challenges for the future
Decentralisation, deregulation, neo-liberalism HR challenge: strong analytical skills Flexible work practices HR challenge: strategic decisions about appropriate forms of employment contracts Non-unionised environment Extent of engagement with unions Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

IR challenges for the future
Unitarist management policies HR challenge: manage employee recruitment and retention Market-based IR HR challenges: targeting and developing employees with relevant skills skill formation managing employee turnover employment contract management mentoring and coaching of a diverse and highly skilled workforce Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Since the 1980s, there have been three inter-related developments in Australian IR: Decentralisation Deregulation Neo-liberal policies The changing IR context creates an array of new challenges for HR professionals. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing diversity and work-life balance
Chapter 8

Objectives Describe the differences between diversity management and equal employment opportunity (EEO). Discuss the role of managing diversity in organisational performance. Identify the initiatives that can be used to manage diversity. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Identify the challenges facing the development and implementation of initiatives designed to manage diversity. Describe the key features of the work-life balance program. Identify the cost and benefits of implementing policies that assist employees to manage their work and non-work lives. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing diversity The process of creating an environment that allows all employees to contribute to organisational goals and experience personal growth. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Equal employment opportunity (EEO)
The government’s attempt to ensure that all individuals have an equal opportunity for employment, regardless of characteristics such as race, religion, sex, or national origin. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 8.1 Model of diversity management
Source: Adapted from R. Kramar ‘Equity and diversity’, in J. Teicher & P. Holland (eds), Employee Relations Management, AddisonWesley Longman, Melbourne, in press. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Diversity management and improving organisational performance
Business case Competitive advantage Managing change Ideological reasons Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Initiatives to manage diversity
Strategic initiatives Managerial initiatives Operational initiatives Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Challenges associated with managing diversity
Concept of diversity Implementation of techniques to manage diversity Diversity enlargement Diversity sensitivity through training Cultural audits Advisory panels Demonstrating improvements Building a business case Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Challenges associated with managing diversity (continued)
Managing contradictory evidence Inexperience with the process Communication and decision-making Attitudinal issues Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Work-life balance An employee’s ability to access employment opportunities and earn adequate income while at the same time attending to the caring responsibilities of family life. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Work-life balance programs
Key features of a work-life balance program Promotes a work environment that encourages employees to achieve work-life balance. Ensures leave arrangements that enable employees to have flexibility to handle family, personal and community matters. Recognises the impact of the needs of other family members and dependents on the work-life balance of the employee. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Work-life balance programs
Allows flexibility in the career choices and options of employees. Acknowledges the interaction between work, family and other life interests and enables tensions around this conflict to be discussed and managed. Recognises that different employees will have different needs associated with maintaining their work-life balance. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

‘Family-friendly’ programs
The most widely used policies in Australia are: Flexible hours Part-time work Job sharing Telecommuting or working from home Sick leave used for family commitments Employee assistance programs Relocation services Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Cost and benefits of work-life balance programs
Improved employee morale and job satisfaction Increased attraction and retention of desirable staff Improved customer service and satisfaction Increased employee commitment to the organisation Increased productivity. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Cost and benefits of work-life balance programs
Costs Discomfort associated with changing the organisation’s culture Employees and managers need to learn additional communication and decision-making skills Possible increased conflict between groups Time involved in researching and writing revised human resource policies. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Directions in diversity management
The primary focus has been on two aspects of diversity Race Sex family status Initiatives aim to: Attract and retain women Facilitate work-life balance Manage cultural diversity. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Important influences on the future of diversity management
Changing nature of the workforce Changing employment relationships Pressure to ‘add value’ Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Increasing attention will be paid to managing workforce diversity and different employment relationships. Managers will need to understand diversity and its impact on the policies used to manage the similarities and differences in their organisation. Managers will need to demonstrate the value of diversity management initiatives to the organisation, and be able to build a business case for the initiatives. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Performance management
Chapter 9

Objectives Identify the major determinants of individual performance. Discuss the three general purposes of performance management. Identify the five criteria for effective performance management systems. Discuss the approaches to performance management, the specific techniques used in each approach, and the way these approaches compare with the criteria for effective performance management systems. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Choose the most effective approach to performance measurement for a given situation. Discuss the advantages and disadvantages of the different sources of performance information. Choose the most effective source(s) for performance information for any situation. Distinguish types of rating errors and explain how to minimise each in a performance evaluation. Identify the characteristics of a performance measurement system that follows legal guidelines. Conduct an effective performance feedback session. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The means through which managers ensure that employees’ activities and outputs are congruent with the organisation’s goals. Performance appraisal The process through which an organisation gets information on how well an employee is doing his or her job. Performance feedback The process of providing employees with information regarding their performance effectiveness. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 9.1 Model of performance management

Performance planning and evaluation (PPE)
Any system that seeks to tie the formal performance appraisal process to the company’s strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Purposes of performance management
Strategic Developmental Administrative Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Performance measures criteria
Strategic congruence The extent to which the performance management system elicits job performance that is consistent with the organisation’s strategy, goals, and culture. e.g.. the balanced score-card Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Validity The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 9.2 Contamination and deficiency of a job performance measure

Reliability The consistency of a performance measure; the degree to which a performance measure is free from random error. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Acceptability The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it. procedural fairness interpersonal fairness outcome fairness Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Specificity The extent to which a performance measure gives detailed guidance to employees about what is expected of them, and how they can meet these expectations. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Approaches to measuring performance
Comparative approach Ranking Forced distribution Paired comparison Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Attribute approach Graphic rating scales Mixed standard scales Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Behavioural approach Critical incidents Behaviourally anchored rating scales (BARS) Behavioural observation scales (BOS) Organisational behaviour modification (OBM) Assessment centres Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Results approach Management by objectives (MBO) Productivity measurement and evaluation system (ProMES) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Quality approach Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Means-based approach Competency models of assessment Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Sources of performance information
Managers Peers Subordinates Self Customers Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Rater errors in performance measurement
Similar to me Contrast Distributional errors Halo and horn errors Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Reducing rater errors Rater error training Rater accuracy training Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Performance appraisal politics
A situation in which evaluators deliberately distort a rating to achieve personal or company goals. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

To minimise appraisal politics
Ensure procedural, interpersonal and outcome fairness Train raters Ensure top management support for appraisal system Customise performance objectives and criteria Recognise employee accomplishments Ensure constraints do not drive process Ensure consistency of processes Develop a climate of openness Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Performance feedback The process of providing employees with information regarding their performance effectiveness. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Characteristics of effective performance feedback process
Frequent feedback Feedback context Self-ratings Participation in sessions Recognise performance through praise Focus on solving problems Focus feedback on behaviour or results Minimise criticism Set goals and dates for review Manage marginal performers Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing the performance of teams
Senior management Provide clear support Demonstrate links to organisational vision and strategy Reward teamwork Allow time for team-building Ensure team roles and goals are clear Organisational climate of trust Participation in decision-making Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Legal issues for performance appraisal
Documentation for legal protection Do not condone poor performance by inaction Employer’s duty to the poor performer Adequate warning before dismissal Equal employment opportunity (EEO) Termination Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Technology and performance management
Electronic databases for performance information Electronic monitoring of employees Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Measuring and managing performance is a challenging enterprise, and one of the keys to gaining competitive advantage. Performance management systems serve strategic, administrative and developmental purposes. A performance measurement system should be evaluated against the five criteria. Performance management approaches have different strengths and weaknesses. Performance management system must be legally compliant. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee learning Chapter 10

Employee learning Objectives Discuss how training can help companies gain a competitive advantage. Explain how to conduct a needs assessment. Explain how to evaluate employees’ readiness for training. Discuss the strengths and weaknesses of presentation, hands-on and group-building training methods. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee learning Objectives (continued) Explain the potential advantages of new technologies for training. Design a training session to maximise learning. Explain how to choose an appropriate evaluation design. Discuss socialisation and orientation processes. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee learning (also learning, or training)
A planned effort by a company to facilitate employees’ learning of job-related competencies. Competencies include knowledge, skills or behaviours that are critical for successful job performance. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Why is training important?
Increases employees’ knowledge of foreign competitors and cultures. Provides the skills required to work with new technology. Helps employees understand how to work effectively in teams. Ensures that the company’s culture emphasises innovation, creativity and learning. Ensures employment security by providing new ways for employees to contribute to the company. Prepares employees to accept each other and work more effectively together, particularly in a diverse workforce. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Intellectual capital Training should be viewed as a way to create intellectual capital. Intellectual capital includes basic skills, advanced skills, an understanding of the customer or manufacturing system, and self-motivated creativity. Intellectual capital is created through a process of combining the knowledge and experience of different parties and exchange between the parties. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

High-leverage training strategy
Is linked to strategic business goals and objectives. Uses an instructional design process to ensure that training is effective. Compares or benchmarks the company’s training programs against training programs in other companies. Is a characteristic of a ‘learning organisation’. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Learning organisations
Employees continuously attempt to learn new things and apply what they have learned to improve product or service quality. An organisation that has an enhanced capacity to learn, adapt and change. In a learning organisation, training is seen as one part of a system designed to create intellectual capital. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Components of instructional design
Conducting needs assessment Ensuring employees’ readiness for training Creating a learning environment Ensuring transfer of training Selecting training methods Evaluating training programs See Table 10.2 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 10.1 The needs assessment process

Organisational analysis
Organisational analysis involves considering the context in which training will occur. Three factors need to be considered before choosing training as the solution to any pressure point: Support of managers and peers for training activities Company strategy Training resources available. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Person analysis Person analysis helps to identify who needs training. Person analysis involves: Determining whether performance deficiencies result from a lack of knowledge, skill or ability (a training issue) or from a motivational or work-design problem Identifying who needs training Determining employee’s readiness for training. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Person analysis Factors that influence employee performance and learning: Personal characteristics Input Output Consequences Feedback Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Task analysis Identifying the important tasks and knowledge, skills and behaviours that need to be emphasised in training, in order for employees to complete their tasks. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Task analysis Four steps: Select the job to be analysed. Develop a preliminary list of tasks performed on the job. Validate or confirm the preliminary list of tasks. Once the tasks are confirmed, identify the knowledge, skills or abilities necessary to successfully perform each task. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Readiness for training
Employees have the personal characteristics (ability, attitudes, beliefs, and motivation) necessary to learn program content and apply it on the job. The work environment will facilitate learning and will not interfere with performance. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

How can managers ensure employee readiness for training?
Ensure employees’ self-efficacy. Understand the benefits of training. Be aware of training needs, career interests and goals. Understand work environment characteristics. Ensure employees’ basic skills levels. Also consider input, output, consequences and feedback. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Creating a learning environment
Employees need to: Know why they should learn Use their own experiences as a basis for learning Have opportunities to practise Receive feedback Learn by observing and interacting with others Undergo a well coordinated and arranged training program. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 10.3 Transfer of training

Selecting training methods
Presentation methods Classroom instruction Distance learning Audiovisual techniques Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Hands-on methods On-the-job training (OJT) Self-directed learning Apprenticeship Simulations Business games and case studies Behaviour modelling Interactive video E-learning Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Group-building methods Adventure learning Team training Action learning Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Evaluating training programs
Training outcomes: Cognitive outcomes Skill-based outcomes Affective outcomes Results Return on investment (ROI) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Reasons for evaluating training
To identify the program’s strengths and weaknesses. To assess whether the content, organisation and administration of the program contribute to learning and the use of training content on the job. To identify which trainees benefited most or least from the program. To gather data to assist in marketing programs. To determine the financial benefits and costs of the program. To compare the costs and benefits of training versus non-training investments. To compare the costs and benefits of different training programs, so as to choose the best program. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Evaluation designs Pre-test/post-test with comparison group Pre-test/post-test Post-test only Time series Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Socialisation and orientation
Organisational socialisation: The process by which new employees are transformed into effective members of a company. Three phases: Anticipatory socialisation Encounter Settling in Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Orientation programs (see Table 10.9 for more detail)
Content of orientation programs Company-level information Department-level information Miscellaneous Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 10.10 Characteristics of effective orientation programs
Employees are encouraged to ask questions. Program includes information on both technical and social aspects of the job. Orientation is the responsibility of the new employee’s manager. Debasement and embarrassment of new employees is avoided. Formal and informal interactions with managers and peers occur. Programs involve relocation assistance. Employees are provided with information about the company’s products, services and customers. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Many companies are using new technology to give employees control of their learning and career development. A systematic approach to training has been presented. The key to successful training is to choose a method that will best accomplish the training objectives. Training can contribute to effectiveness through establishing a link with the company’s strategic direction, and demonstrating return on investment. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee development and career management
Chapter 11

Objectives Discuss current trends in using formal education for development. Relate how assessment of personality type, work behaviours and job performance can be used for employee development. Develop successful mentoring programs. Explain how job experiences can be used for skill development. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Explain how to help managers to coach employees. Discuss the steps in the development planning process. Discuss what companies are doing for management development issues, including succession planning, and helping dysfunctional managers. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee development The acquisition of knowledge, skills and behaviours that improve an employee’s ability to meet changes in job requirements and in client and customer demands. Development refers to formal education, job experiences, relationships, and assessment of personality and abilities that help employees prepare for the future. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 11.1 Comparison between training and development
Focus Use of work experiences Goal Participation Current Low Preparation for current job Required Future High Preparation for changes Voluntary Training Development Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Careers Career The pattern of work-related experiences that span the course of a person’s life. Protean career A career that is frequently changing, due to changes in the person’s interests, abilities and values, as well as changes in the work environment. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Careers: key concepts Psychological contract The expectations that employers and employees have of each other. Psychological success The feeling of pride and accomplishment that comes from achieving life goals. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Approaches to employee development
Formal education Assessment Job experiences Interpersonal relationships Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Formal education programs
Employee development programs, including short courses offered by consultants or universities, executive MBA programs and university programs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Assessment Collecting information and providing feedback to employees about their behaviour, communication style, or skills. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Assessment Myers-Briggs Type Indicator (MBTI) A psychological test, used for team building and leadership development, that identifies employees’ preferences for energy, information gathering, decision making and life-style. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Assessment Assessment centres Employ a process in which multiple raters evaluate employees’ performance on a number of exercises. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Assessment Benchmarks© An instrument designed to measure the factors that are important to success. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Assessment Performance appraisals 360 feedback systems a performance appraisal process for managers that includes evaluations from a wide range of people who interact with the manager. the process includes self-evaluations, as well as evaluations from the manager’s boss, subordinates, peers and customers. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job experiences The relationships, problems, demands, tasks and other features that employees face in their jobs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job experiences Job enlargement Job rotation Transfers Promotions Downward moves Temporary assignments Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Interpersonal relationships
Mentoring Mentor: an experienced, productive senior employee who helps develop a less-experienced employee. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Interpersonal relationships
Coaching Coach: a peer or manager who works with an employee to motivate him/her and help him/her develop skills, and who provides reinforcement and feedback. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Career management systems
A system aimed at retaining and motivating employees through identifying and meeting their development needs (also called a development planning system). Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 11.2 Steps and responsibilities in the career management process Self-assessment Reality check Goal setting Action planning Employee responsibility Company responsibility Identify opportunities and what needs to improve Provide assessment information to identify strengths, weaknesses, interests and values Identify what needs are realistic to develop Communicate performance evaluation; where employee fits in long-range plans of the company Identify goal and method to determine goal progress Ensure goal is specific, challenging, and attainable; commit to help employee reach the goal Identify steps and timetable to reach goal Identify resources employee needs to reach goal, including courses, work experiences, relationships Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Useful websites Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Succession planning The identification and tracking of high-potential employees capable of filling higher-level managerial positions. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Development for managers with dysfunctional behaviours
Analysis and diagnosis Coaching Behaviour modelling Support Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Most companies use various development methods: formal education, assessment, job experiences and interpersonal relationships. Employees should have a development plan to identify: Type of development needed Goals of development The best approach for development Whether development goals have been reached. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing compensation
Chapter 12

Objectives List the major decision areas and concepts in employee compensation management. Describe the major administrative tools used to manage employee compensation. Explain the importance of competitive labour-market and product-market forces in compensation decisions. Discuss the significance of process issues, such as communication, in compensation management. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives Describe new developments in the design of pay structures. Explain the reasons for the controversy over executive pay. Describe the regulatory framework for pay in Australia. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Compensation: key terms
Pay structure The relative pay of different jobs (job structure) How much they are paid (pay level) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Equity theory People evaluate the fairness of their situations by comparing them with those of other people. Outputsp Inputsp <, >, or = Outputso Inputso Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job evaluation An administrative procedure used to measure job worth. Job evaluation is used to design job structures. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job evaluation Key concepts: Distributive justice (also distributive fairness). The perception that rewards are distributed in relation to contribution. Procedural justice (also procedural fairness). A concept of justice focusing on the methods used to determine the outcomes received. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Market pressures Product-market competition Labour-market competition Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Market pay surveys Key questions to address: Which employers should be included in the survey? Which jobs are included in the survey? If multiple surveys are used, how are all the rates of pay weighted and combined? Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Issues in market pay surveys
Award restructuring (structural efficiency principle) Key jobs and non-key jobs Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Developing a job structure

Developing a pay structure
Pay-policy line A mathematical expression that describes the relationship between a job’s pay and its job evaluation points. Pay grade Jobs of similar worth or content grouped together for pay administration purposes. Range spread the distance between the minimum and maximum amounts in a pay grade. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Table 12.7 Sample pay grade structure
3 4 5 Minimum Maximum Midpoint Job evaluation points range Fortnightly pay rate range 100 150 200 250 300 350 $1740 $2648 $3555 $4463 $5370 $2175 $3310 $4444 $5579 $6713 $2610 $3971 $5333 $6694 $8056 Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Monitoring compensation costs
Compa-ratio An index of the correlation between actual and intended pay. Grade compa-ratio = Actual average pay for grade Pay midpoint for grade Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Important processes in compensation
Participation Communication Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Current challenges in compensation
Problems with job-based pay structures Responses to these problems: Delayering and banding Paying the person: skill-based pay Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Comparing the competitiveness of the Australian labour force
Average hourly labour costs (cash and benefits) Instability of country differences in labour costs Skill levels Productivity Non-labour factors Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Executive pay in Australia
Accountability and relationship to organisational performance Governance Design and structure Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 12.5 A comparison of CEO pay and stock-market-based indicators
Source: P.J. Holland, P.J. Dowling & P.A. Innes, CEO compensation in Australia: Is there a relationship between principles, policies and practices?, Asia Pacific Journal of Human Resources, 39(3), 2001, p. 50. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Government regulation of compensation
Minimum wage Wage laws Wage determination Restructuring and efficiency principle Award restructuring Enterprise bargaining principle Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Equity theory suggests that social comparisons are an important influence on how employees evaluate their pay. Pay benchmarking surveys and job evaluation are two administrative tools widely used in managing the pay-level and job-structure components of the pay structure, which influence employee social comparisons. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary (continued) The nature of pay structures is undergoing a fundamental change in many organisations. How a new program is designed, decided on, implemented and communicated is perhaps just as important as its core characteristics. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Performance-related pay
Chapter 13

Performance-related pay
Objectives Describe three theories that explain the dynamics of performance-related pay. Identify a number of performance-related pay programs. List the major factors to consider in matching the pay strategy to the organisation’s strategy. Describe the way the rewards of managers and executives can be tied to company performance. Explain the importance of process issues, such as communication, in compensation management. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Three theories to explain the effects of compensation
Reinforcement theory Expectancy theory Agency theory Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Performance-related pay programs
Merit pay Incentive pay Profit-sharing Ownership Gainsharing Skill-based See Table 13.1 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Programs differ according to four design features: Payment method Frequency of payout Ways of measuring performance Choice of which employees are covered Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Programs differ according to potential consequences for: Performance motivation of employees Attraction of employees Organisation culture Costs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Three contingencies may influence whether each program fits the situation: Organisation structure Management style Type of work Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Merit pay programs Annual pay increases are usually linked to performance appraisal ratings. Merit increase grid A grid that combines an employee’s performance rating with his/her position in a pay range, to determine the size and frequency of his/her pay increases. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Criticisms of traditional merit pay programs
It is unfair to rate individual performance. The individual focus of merit pay discourages team work. Exclusive reliance on supervisor for performance ratings may restrict accuracy. If merit increases are too small, they will not motivate workers. Merit pay may lead to an ‘entitlement mentality’. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Individual incentive programs
Individual incentives reward individual performance, but differ from merit pay. Incentives are not rolled into base pay. They must be continuously earned. Performance is usually measured as physical output, rather than by subjective ratings. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Profit sharing and ownership programs
A group compensation plan in which payments are based on a measure of organisation performance (profits) and do not become part of the employees’ base salary. Ownership Stock option. An employee ownership plan that gives employees the opportunity to buy the company’s stock at a previously fixed price. Employee stock ownership plan (ESOP). An employee ownership plan that provides employers certain tax and financial advantages when stock is granted to employees. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Gainsharing, group incentives and team awards
A form of group compensation based on group or plant performance (rather than organisation-wide profits) that does not become part of the employee’s base salary. E.g. the Scanlon plan Group incentives Tend to measure performance in terms of physical output. Team awards Use a broader range of performance measures (e.g. cost savings, meeting deadlines). Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Balanced scorecard A means of performance measurement that gives managers a chance to look at their company from the perspectives of internal and external customers, employees and shareholders. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managerial and executive pay
How can executive pay be linked to organisation performance? Less emphasis on base salary and more emphasis on outcome-oriented contracts. Greater reliance on short-term bonuses and long-term incentive programs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 13.3 Fixed annual reward, short- and long-term incentive (as a percentage of total annual reward) Source: G. O’Neill, ‘Lies, damned lies, statistics … and CEO pay’, H R Monthly, February 2000, p.31. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Process and context issues
Employee participation in decision making Communication Pay and process Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Performance-related pay programs vary as to whether they link pay to individual, group or organisation performance. A balance of individual, group and organisation objectives may be sought. An effective pay strategy can have a substantial, positive impact on an organisation’s success. The importance of pay means that employees care a great deal about the fairness of the pay process. Pay programs must be explained and administered in such a way that employees understand their underlying rationale and believe it is fair. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing a global workforce
Chapter 14

Objectives Discuss the meaning of international HRM (IHRM). Have an understanding of the dimensions of international HR activities. Be aware of the impact of internationalisation on the activities and policies of HRM. Understand the variables that moderate differences between domestic and international HRM. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Understand the complexity of operating in different countries and employing different national categories of employees. Understand the role of strategic HRM in multinational enterprises. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Three approaches to IHRM
Cross-cultural management approach Examines human behaviour within organisations from an international perspective. Comparative HRM Seeks to describe, compare and analyse HRM systems in various countries. HRM in multinational enterprises (MNEs) Explores the implications of the process of internationalisation on HRM activities and policies. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 14.1 Model of IHRM Source: Adapted from P.V. Morgan, ‘International human resource management: Fact or fiction?’, Personnel Administrator, 31(9), 1986, p.44. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Types of employees in an MNE
Parent-country nationals (PCNs) Employees who were born and live in a parent country. A parent (or home) country: the country in which a company’s corporate headquarters is located. Host-country nationals (HCNs) Employees born and raised in a host country. Host country: a country in which the MNE seeks to locate or has already located a facility. Third-country nationals (TCNs) Employees born in a country other than a parent or host country. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Types of international work
Expatriates An employee sent by his/her company in one country to work in a different country. Global team project Bringing together employees from different locations to complete a specific team project. Short-term assignments Sending employees on assignments, such as a three-month assignment, to a foreign location. Virtual assignment. Assignments requiring employees in different locations to use information technology to communicate on job projects and tasks. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Factors which differentiate international from domestic HRM
More HR activities The need for a broader perspective More involvement in employees' personal lives Changes in emphasis with variable mix of expatriates and locals in workforce Risk exposure More external influences Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 14.2 Variables that moderate differences between domestic and international HRM Source: P.J. Dowling, University of Canberra. Used with permission. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The cultural environment: key terms
Culture A distinct way of life, shared by members of a group or society, with common values, attitudes and behaviours that are transmitted over time in a gradual, yet dynamic, process. Culture shock A phenomenon experienced by people who move across cultures. They experience a shock reaction (or psychological disorientation) when exposed to new cultural experiences, because they misunderstand or do not recognise important cues. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The cultural environment: the emic-etic distinction
Culture-specific aspects of concepts or behaviour. Etic: Culture-common aspects of concepts or behaviour. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The cultural environment: the convergence hypothesis
The hypothesis that management practices around the world would converge, based on two assumptions: That the principles of sound management would hold, regardless of national environment. That the universality of sound management practices would lead to societies becoming more and more alike in the future. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

The cultural environment: the divergence hypothesis
In opposition to the convergence hypothesis, the notion that societies and management practices around the world will remain, or become more, dissimilar. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Industry type Multi-domestic industry: An industry in which competition in each country is essentially independent of competition in other countries. Global industry: An industry in which a firm’s competitive position in one country is significantly influenced by its position in other countries. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Extent of MNE reliance on domestic market
The ‘top ten’ MNEs on the UNCTAD ‘index of transnationality’ Nestlé (Switzerland) Thomson (Canada) Holderbank Financière (Switzerland) [now Holcim] Seagram (Canada) Solvay (Belgium) Asea Brown Boveri (Sweden/Switzerland) Electrolux (Sweden) Unilever (Britain/Netherlands) Philips (Netherlands) Roche (Switzerland) Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Attitudes of senior management to international operations
Ethnocentrism The assumption that one’s own cultural approach is superior to any other. An ethnocentric approach to international staffing typically results in all key management positions being held by PCNs. Also, international HRM activities are typically developed and administered by PCNs. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 14.3 Framework of strategic HRM in multinational enterprises
Source: Adapted from H. De Cieri & P.J. Dowling, ‘Strategic human resource management in multinational enterprises: theoretical and empirical developments’, in P.M. Wright, L.D. Dyer, J.W. Boudreau & G.T. Milkovich (eds.), Research in Personnel and Human Resources Management in the Twenty-First Century, supplement 4. JAI Press, Stamford CT, 1999, p.318. Strategic HRM HR function strategy HR practices External factors Industry characteristics Country/regional characteristics Inter-organisational networks Internal organisational factors MNE structure - Structure of international operations - Intra-organisational networks - Mechanisms of coordination - International entry mode MNE strategy - Corporate-level strategy - Business-level strategy Organisational life-cycle stage Experience in managing international operations Headquarters international orientation MNE concerns & goals Competitiveness Efficiency Balance of global integration & local responsiveness Flexibility Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Three main approaches have been applied to the study of international HRM. Several variables moderate differences between domestic and international HRM. Strategic HRM research examines the relationships between internal organisational characteristics, HRM strategy and practices, and firm performance or competitive advantage. The evidence is inconclusive and important questions remain about the nature of these relationships. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing employee retention and turnover
Chapter 15

Objectives Distinguish between involuntary and voluntary turnover, and discuss how each of these forms of turnover can be leveraged for competitive advantage. List the major elements that contribute to perceptions of justice and how to apply these in organisational contexts involving discipline and dismissal. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Objectives (continued) Specify the relationship between job satisfaction and various forms of job withdrawal, and identify the major sources of job satisfaction in work contexts. Design a survey feedback intervention program and use this to promote retention of key organisational personnel. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Necessary conditions for linkage between employees and organisational performance: When employees possess knowledge and skills the managers lack. When employees are motivated to apply this skill and knowledge through discretionary effort. When the firm’s business or production strategy can only be achieved when employees contribute such discretionary effort. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee turnover Involuntary turnover Turnover initiated by the organisation (often among people who would prefer to stay). Voluntary turnover Turnover initiated by employees. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing involuntary turnover: principles of justice
Outcome fairness Procedural fairness Interpersonal (or interactional) fairness Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing involuntary turnover: six determinants of procedural justice
Consistency Bias suppression Information accuracy Correctability Representativeness Ethicality See Table 15.1 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing involuntary turnover: four determinants of interactional justice Explanation Social sensitivity Consideration Empathy See Table 15.2 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing involuntary turnover: employee assistance programs (EAPs)
Employer programs that attempt to ameliorate problems encountered by employees who are drug or alcohol dependent, or psychologically troubled. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing involuntary turnover: outplacement counselling
Aims to help employees deal with the psychological issues associated with job loss and help them to find new employment. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing voluntary turnover: job withdrawal
A set of behaviors enacted by dissatisfied individuals in order to avoid the work situation. Three categories: Behavior change Physical job withdrawal Psychological job withdrawal The key driving force is job dissatisfaction. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Job satisfaction A pleasurable feeling that results from the perception that one’s job fulfills or allows for the fulfillment of one’s important job values. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Managing voluntary turnover: Figure An overall model of the job dissatisfaction–job withdrawal process Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Sources of job dissatisfaction and strategies for employee retention
Personal disposition Interventions include: selection processes health maintenance and stress management programs organisational culture change employee assistance programs (EAPs). Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Tasks Task complexity Physical strain and exertion Task meaningfulness Interventions include: job enrichment work teams job rotation job customisation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Roles Role ambiguity Role conflict Role overload Interventions include: the role analysis technique. see Figure 15.3 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Supervisors and coworkers Strategies include: organisational culture of shared values social support clarification of goals and paths. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

HRM activities and strategies for employee retention
Selection and orientation programs ‘Employee-organisation fit’ is important. Strategies include: involvement of new employees in social activities involvement of employees’ families in social activities involvement of senior managers in orientation of new employees use of ‘mentors’ to assist new employees accountability of line managers for orientation of new employees. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Employee development and career management Strategies include: career counselling provision of supportive resources changing the image and perception of long-term (managerial) careers in the organisation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Pay and benefits Strategies include: higher pay levels fair pay structure bonuses and/or incentives non-financial rewards social ties and teams. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Measuring and monitoring job satisfaction
Workers’ self-reports Job Descriptive Index Employee research annual surveys of employee attitudes and opinions exit interviews exit surveys Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary Employee retention and turnover have become important strategic and HRM issues in many organisations. Organisations can strategically manage the separation process so that involuntary turnover is implemented in a manner that minimises or prevents negative outcomes, and voluntary turnover among high performers is kept to a minimum. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary (continued) Voluntary turnover can be minimised by a range of employee retention strategies and interventions, measuring and monitoring employee levels of satisfaction with critical facets of job and organisation, and addressing any problems identified by such surveys. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Evaluating and improving the human resource function
Chapter 16

Evaluating and improving the HR function
Objectives Explain the approaches to evaluating the effectiveness of HR practices. Discuss the issues related to measuring and evaluating the HR function. Discuss how outsourcing HR activities may improve service delivery efficiency and effectiveness. Relate how process reengineering is used to review and redesign HR practices. Consider future directions for the HR function. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

A strategic approach to measuring HR effectiveness
HR professionals need to adopt a system of metrics, or measurements, for human performance that will enable effective decisions to be made regarding the function and value creation in organisations. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Effective measurement of the HR function provides benefits
Marketing the HR function Accountability Move from subjective and intuitive measures to objective measures Elevate the HR function to an equal footing with other functions A guide for evaluating the HR function’s contribution to strategy implementation A valid and systematic justification for resource allocation Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Triple bottom line The combination of economic, social and environmental performance indicators for an organisation. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Categories of HR activities
Transactional activities The day-to-day transactions such as pay administration, maintaining human resource information systems, and employee services. Traditional activities Include performance management, learning, recruiting, selection, compensation and industrial relations. Transformational activities Include knowledge management, management development, cultural change, and strategic redirection and renewal. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 16.1 Categories of HR activities
Source: Adapted from P. Wright, G. McMahan, S. Snell, & B. Gerhart, ‘Strategic HRM: Building Human Capital and Organizational Capability’, Technical report. Cornell University, Ithaca, NY, 1998. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Adding value to the firm using the HR function
Increase efforts in traditional and transformational HR activities by: Developing a strategy for the HR function Assessing the current effectiveness of the HR function Redesigning, reengineering, or outsourcing HR processes to improve efficiency and effectiveness. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Approaches for evaluating HR effectiveness
Audit approach Type of assessment of HR effectiveness that involves review of customer satisfaction or key indicators (e.g. turnover rate, average days to fill a position) related to an HR activity (e.g. staffing). See Table 16.1 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Approaches for evaluating HR effectiveness
Analytic approach Type of assessment of HR effectiveness that involves determining the impact of, or the financial costs and benefits of, a program or practice. Types of cost-benefit analyses: human resource accounting utility analysis Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 16.4 Improving HR effectiveness

Figure 16.5 Old and new structures for the HR organisation
Source: Adapted from P. Wright, G. McMahan, S. Snell & B. Gerhart, ‘Strategic HRM: Building Human Capital and Organizational Capability’, Technical report, Cornell University, Ithaca, NY, 1998. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Outsourcing An organisation’s use of an outside organisation for a broad set of services. Reasons for outsourcing: Efficiency Effectiveness See Table 16.7 for more detail Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Reengineering Review and redesign of work processes to make them more efficient and improve the quality of the end product or service. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Figure 16.6 The reengineering process

Summary The roles required of the HR function have changed as people have become recognised as a true source of competitive advantage. Strategic management of the HR function will determine whether HR will transform itself to a true strategic partner or simply disappear. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Summary (continued) The HR function must deliver transactional, traditional and transformational services and activities to the firm, and it must be both efficient and effective. Restructuring, reengineering and outsourcing may be appropriate in some circumstances, but require careful planning, attention to detail in implementation, and ongoing evaluation. Multiple performance outcomes for the HR function should be considered, including financial terms and social terms. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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