1. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1 Human resource management in Australia Chapter 1

2. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-2 Introduction to human resource management (HRM)  Objectives ÙDiscuss the roles and activities of a company’s human resource function. ÙDiscuss the competitive challenges influencing Australian companies. ÙDiscuss how human resource practices affect a company’s balanced scorecard. ÙDiscuss what companies should do to be competitive in the global marketplace.

3. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-3 Introduction to human resource management (HRM)  Objectives (continued) ÙIdentify the characteristics of the workforce and how they influence human resource management practices. ÙDiscuss human resource practices that support high-performance work systems. ÙProvide a brief description of human resource management practices.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-4 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’.

5. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-5 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 Figure 1.1 HRM practices

6. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-6 The development of theoretical bases for HRM  Theoretical perspectives of HRM include: ÙBehavioural view ÙResource-based view ÙPolitically-influenced view.

7. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-7 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 Unions 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 Figure 1.2 The Harvard Analytical Framework for HRM

8. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-8 Features of the dominant approach to HRM ÙFocus on enterprise or firm. ÙHRM is an investment in human capital. ÙReciprocal fit between organisational strategy and HR strategy. ÙAll managers are responsible for HRM.

9. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-9 Integration & strategic focus of HR policies12037.3 Employee relations11836.7 Contribution of HR to company performance 7724.0 Worker participation and team work 6219.3 Quality issues 5316.5 Training 4112.7 Flexible work patterns 4112.7 Devolution of function 4012.4 Legislative changes 3410.6 Economic rationalism 3310.3 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* % Table 1.1 Most significant changes in HR (1990-95)

10. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-10 Table 1.2 Issues with greatest impact on HR (1995-2000) HR role in change & strategic planning 9028.0 Employee relations6420.0 Contribution of HR to company performance6219.3 Flexible work patterns3912.1 Legislative changes30 9.3 Quality issues28 8.7 Internationalisation27 8.4 Training25 7.8 Worker participation and team work24 7.5 Technology21 6.5 Performance management19 5.9 Outsourcing15 4.7 % n* 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)

11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-11

12. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-12 Roles performed by HR professionals (Ulrich, 1997)  Administrative expert  Employee champion  Change agent  Strategic business partner

13. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-13 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 Source: The Conference Board, Inc., The Changing Human Resource Function, The Conference Board, New York, 1990, p. 11. Figure 1.3 HR roles and competencies

14. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-14 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 Figure 1.4 Competitive challenges influencing Australian challenges

15. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-15 The global challenge for HRM  Development of global markets  Global competitiveness through HRM practices  Preparing employees for international assignments

16. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-16 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 The challenge of meeting stakeholders’ needs: Table 1.7 The balanced scorecard

17. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-17 Source: Australian Quality Council Ltd., ‘Success stories’, www.aqc.org.au The challenge of meeting stakeholders’ needs: Figure 1.5 The Australian Business Excellence Model

18. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-18 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

19. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-19 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

20. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-20 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. 786. Used with permission. Figure 1.6 Relationship between HR philosophy and practices

21. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-21 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 Challenge High-Performance Work System Challenge Figure 1.7 Examples of how HR practices can help companies meet the competitive challenges

22. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-22 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

23. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-23 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

24. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1-24 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: