1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–1 CHAPTER 10 HUMAN RESOURCE MANAGEMENT

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–2 LECTURE OUTLINE The HRM framework Establishing the employment relationship Maintaining the employment relationship

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–3 LECTURE OUTLINE HRIS, Internet, intranets & extranets The future of work Terminating the employment relationship Corporate responsibility

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–4 THE HRM FRAMEWORK Management’s critical task: To align formal structure with HR systems so as to drive an organisation’s objectives.

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–5 THE HRM FRAMEWORK The Harvard map HR decisions regarding: Extent of employee commitment Flow of human resources Reward systems Work systems Outcomes of HR decisions: Degree of employee commitment Competence of employees Cost effectiveness Congruence between employee & employer goals

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–6 THE HRM FRAMEWORK Theories of HRM Proactive approach, link to strategic planning & cultural change View of people as capital, not cost Possibility of mutually beneficial relationship between stakeholders

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–7 THE HRM FRAMEWORK Those management functions concerned with attracting, maintaining and developing people in the employment relationship.

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–8 THE HRM FRAMEWORK HRM functions Identifying HR needs Attracting human resources Maintaining human resources Terminating the relationship

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–9 THE HRM FRAMEWORK Regulatory framework Australia & New Zealand, long history of government support for union involvement Since early 1990s, major shift toward enterprise or individual agreements Increasing reliance on civil law processes Growth of regulation relating to human rights, discrimination, EEO, OH&S, environmental matters

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–10 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Acquiring human resources Job analysis Recruitment Selection Interviews

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–11 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Human resource planning Determining future human resource needs in relation to an organisation’s business objectives or strategic plan.

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–12 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Job analysis The systematic collecting and recording of information about the purpose of a job, its major duties, the conditions under which it is performed, the required contacts with others and the knowledge, skills and abilities needed to perform it effectively.

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–13 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Job Analysis – Outcomes:  Job descriptions and job specifications – Impacts upon:  Recruitment & selection  Performance appraisal  Remuneration  Training & development  Job design & redesign

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–14 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Recruitment The process of finding and attracting job candidates capable of effectively filling job vacancies.

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–15 RECRUITMENT THREE OBJECTIVES Maximising the pool of applicants at minimum cost Maximising the pool of applicants at minimum cost Attracting suitably qualified & skilled applicants Attracting suitably qualified & skilled applicants Ensuring compliance by organisation with government regulations Ensuring compliance by organisation with government regulations

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–16 RECRUITMENT INTERNAL RECRUITMENT ADVANTAGES DISADVANTAGES - Improves morale- ’Inbreeding’ - Better assessment- Nepotism - Motivates staff- Infighting - Maintains organisational - Induction/training costs knowledge- Lowers internal morale - Cultural adjustment

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–17 METHODS OF RECRUITMENT Advertisements Employee referrals Internal promotion Employment agencies Internet job & career sites Internet job & career sites Contractors Campus interviews Executive recruitment (‘head hunters’) Executive recruitment (‘head hunters’)

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–18 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Selection process: The decision-making system used to identify which job applicants are best suited to the vacant position. Key aspects: – Reliability – Validity – Selection devices

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–19 ESTABLISHING THE EMPLOYMENT RELATIONSHIP Key aspects of selection: Reliability The degree to which the decision-making process will measure the same consistently Validity Whether the decision process actually measures what it sets out to measure Selection devices Application form Written tests Selection interview Assessment centre

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–20 MAINTAINING THE RELATIONSHIP Remuneration/benefits The financial payment to employees for their work. Training The process of equipping people with skills and competencies. Development Broad preparation of employee for future opportunities through the acquisition of new knowledge, skills. Performance management/appraisal Judgmental assessment of employee performance

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–21 MAINTAING THE RELATIONSHIP Remuneration & benefits: Linked to job analysis Governed by regulatory framework Internal pay equity External pay equity

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–22 MAINTAING THE RELATIONSHIP Training & development: Choices: – Buy skills, build them, or a mixed approach Strategic rationales for training: – Proactive – Reactive – Enhancement of employee motivation, commitment & retention

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–23 MAINTAING THE RELATIONSHIP PERFORMANCE APPRAISALS MOULD EMPLOYEE BEHAVIOUR TO COMPANY NORMS IMPROVE QUALITY OF SALARY REVIEWS IMPROVE HR PLANNING, TRAINING & SUCCESSION BUILD CONSISTENCY OF EMPLOYEE ACTIONS & ORGANISATION GOALS PROVIDE RECORD FOR DISMISSAL, DEMOTION, GRIEVANCE, APPEAL

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–24 MAINTAING THE RELATIONSHIP Performance appraisal Performance appraisal 360 o feedback— non-hierarchical method 360 o feedback— non-hierarchical method

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–25 HRIS, INTERNET, INTRANETS & EXTRANETS HRIS Human Resource Information System Internet Global connection of computer servers through which users can access stored information from their PCs Intranets Closed networks of information databases & systems within an organisation Extranets Closed networks of information systems between organisations

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–26 HRIS, INTERNETS, INTRANETS & EXTRANETS Performance appraisal, including 360 O feedback Widespread electronic systems Enhanced distribution of HR policy, news, information Better internal communication Employee maintenance of own HR records Multi-site collaborative work teams, electronically linked

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–27 THE FUTURE OF WORK Fewer core employees Increased part-time, casual & temporary staff Tele-working Hot-desking Temporary agency work, short-term labour hires, on-call & contract workers Personnel supply firms Idea of employee as an independent contractor

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–28 THE FUTURE OF WORK Flexible employing organisations: Need for strategic vs cost-reduction focus Reliance on staffing agencies Flexible employees: Self-employed Use of staffing agency Maintain skills base ‘Portfolio’ worker

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–29 TERMINATING THE RELATIONSHIP Retrenchment The forced termination of the employment relationship due to financial, technological or organisational circumstances Redundancy A forced termination of the employment relationship resulting from the permanent deletion of specific positions Dismissal The employer gives the required notice to terminate the employment relationship

30. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–30 TERMINATING THE RELATIONSHIP Key aspects: Regulatory requirements Exit interviews Use of out-placement consultants Effect on HR & other functions of the organisation

31. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–31 CORPORATE RESPONSIBILITY An organisation’s competitive advantage depends upon their capacity to respond to more than the shareholder’s desire for bottom line profit. Union/employee fair wage demands Environmental issues Government regulators This requires attention paid to: Corporate governance Employee impact Environmental impact Social audits

32. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–32 LECTURE SUMMARY The HRM framework – Functions – Principles – Regulatory framework Establishing the employment relationship – HR planning – Job analysis – Recruitment – Selection

33. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–33 LECTURE SUMMARY Maintaining the relationship – Remuneration – Training & development – Performance appraisal HRIS, Internet, intranets & extranets The future of work – Flexible employers – Flexible employees

34. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 10–34 LECTURE SUMMARY Terminating the employment relationship Retrenchment Redundancy Dismissal Corporate responsibility Corporate governance Employee impact Environmental impact Social audits