1. Chapter 10 – Management of the Employment Cycle The Role of Human Resource Management: Is to ensure that business strategy is followed when developing and implementing human resource process and practices. It involves long term decisions relating to forecasting demand and supply of labour, succession planning and the overall management of the three phases of the employment cycle: 1. Establishment 2. Maintenance 3. Termination SCSC Year 12 Business Management. Weebly. com

2. Chapter 10 – Management of the Employment Cycle Key Words Human Resource Planning - planning for future personnel needs, taking into account both internal activities and factors in the external environment. Downsizing – a reduction in a company’s workforce through elimination of jobs, generally made to improve an organisations profits Redundant – an employee is redundant when there is no longer sufficient work for that worker to perform Retrenchment – the expression used to describe what occurs to an employee whose employment is terminated by reason of his or her job becoming redundant Job – a group of tasks performed by an employee Job analysis – systematic process of gathering information relating to a job being performed Job description – a written description of a jobs title, duties and responsibilities, including its location on the organisations chart Job specifications – detailed listing of the personal skills and characteristics required to perform a particular job Job design – grouping together of tasks for a particular job, which should incorporate variety and challenge for the job holder. SCSC Year 12 Business Management. Weebly. com

3. Chapter 10 – Management of the Employment Cycle Key Words Recruitment – the process of finding the best qualified pool of applicants Employment Contract – a formal written agreement between and employer and employee setting out the legal obligations of each party, an informal or oral agreement may also be entered into. Award – an agreement that sets out minimum terms and conditions of employment relating to an industry Employee Collective Agreement – a written collective agreement made between an employer and the employees, setting out terms and conditions of employment Union Collective Agreement – a written agreement made between an employer and a union that sets out the terms and conditions of employment, an agreement may cover businesses run by more than one employer SCSC Year 12 Business Management. Weebly. com

4. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 1. Establishment 2. Maintenance 3. Termination SCSC Year 12 Business Management. Weebly. com

5. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 1. Establishment Phase: - HR Planning - Job analysis and design - Recruitment - Selection - Employment arrangements - Remuneration SCSC Year 12 Business Management. Weebly. com

6. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: HR Planning Is the process undertaken by managers to ensure an adequate supply of competent and motivated people are available to perform the duties and tasks required to meet the organisations goals and objectives Factors effecting HR Planning: Structural changes in the labour market work patterns are changing length of working life Change in skills and education expectations Labour shortage within next decade increase demand for work-life balance Generational change Change in the strategic direction of the organisation SCSC Year 12 Business Management. Weebly. com

7. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: HR Planning COMPLETE ACTIVITY 10.1 SCSC Year 12 Business Management. Weebly. com

8. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: Job analysis and design Is the systematic process of looking at a particular job to find out exactly what it entails and what kind of skills and experience people should have to do this job. A Job description and job specification documents can be prepared from a job analysis Methods used to conduct job analysis include: Interviewing the present job holder Questionnaires Observations Supervisory reports Log book and daily work diaries SCSC Year 12 Business Management. Weebly. com

9. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: - Recruitment Involves identifying, locating and attracting a pool of qualified applicants. Recruitment is a 2 way process, it involves information being given by the organisation and received from the applicant. The recruitment process begins with: - identifying the human resource requirements - determining where the qualified pool of applicant will be found (recruitment source) SCSC Year 12 Business Management. Weebly. com

10. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: - Recruitment - identifying the human resource requirements an organisation must establish a policy to provide a consistant approach to recruitment SCSC Year 12 Business Management. Weebly. com

11. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: - Recruitment - determining where the qualified pool of applicant will be found (recruitment source) Internal / External recruitment Internal – this process can often be undertaken first, positions are advertised internal, which provides opportunity for career advancement to employees already within the organisation.(Table 10.1 Page 209) External – a variety of methods can be used to recruit an external person to an organisation including:(Table 10.2 page 210) Advertising Electronic recruitment Government employment agencies Personnel & Management recruitment consultants Outplacement firms SCSC Year 12 Business Management. Weebly. com

12. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: - Recruitment COMPLETE ACTIVITY 10.4 SCSC Year 12 Business Management. Weebly. com

13. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle:  Establishment Phase: - Selection STUDENTS TO COMPLETE Pages 213 - 217 SCSC Year 12 Business Management. Weebly. com

14. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 1. Establishment Phase: - Employment arrangements An Employer and Empolyee will enter into a legally Binding employee contract. The contract may engage the employee in the following ways:  Permanent Full Time  Permanent Part Time  Casual Basis  Fixed Term Basis SCSC Year 12 Business Management. Weebly. com

15. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 1. Establishment Phase: - Employment arrangements An Employer and Empolyee will enter into a legally Binding employee contract. The contract may relate to one of the following arrangement with regards to pay and working conditions:  Award – an agreement that sets out minimum terms and conditions of employment relating to an industry  Employee Collective Agreement – a written collective agreement made between an employer and the employees, setting out terms and conditions of employment  Union Collective Agreement – a written agreement made between an employer and a union that sets out the terms and conditions of employment, an agreement may cover businesses run by more than one employer SCSC Year 12 Business Management. Weebly. com

16. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 1. Establishment Phase: - Employment arrangements An Employer and Empolyee will enter into a legally Binding employee contract. Table 10.4 – page 220 – National Employment Standards Table 10.5 – Page 221 – Criteria for measuring the success of the collective enterprise bargaining process SCSC Year 12 Business Management. Weebly. com

17. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 1. Establishment Phase: Remuneration Is the money paid in return for the work performed by the employee. Remuneration may be simple as Money (wages/Salaries) paid to the employee or could also include other less tangible benefits including:  Wages – worked out on an hourly basis for the working week  Salary – an annual figure usually paid on a monthly, fortnightly or weekly basis  Salary Packages – includes a salary, performance base pay (bonuses), superannuation, company car, company share entitlements & other benefits  Benefits – could possibly include: family/child care, paid paternity/Maternity leave, Alternative working arrangements (flexitime, job share, school holidays, school hours) also additional superannuation contributions, insurances (health, life, travel) SCSC Year 12 Business Management. Weebly. com

18. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Induction Training and Development Recognition and Reward Performance Management Performance Appraisal and Outcomes SCSC Year 12 Business Management. Weebly. com

19. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Induction Involves all activities undertaken by the organisation to introduce a new employee to the organisation and the department which they work. Table 10.6 – Page 222 – Simple Induction Checklist Main reasons for an induction: - commence the socialisation process - communicate the organisations values, beliefs and expectations - provide information about the job tasks and performance expectations - create a favourable impression about the organisation COMPLETE ACTIVITY 10.8 (page 223) SCSC Year 12 Business Management. Weebly. com

20. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Training and Development Training - Is the process of providing an employee with the knowledge or specific skills needed to do a job. Development – is the process designed to develop skills necessary for future work activities and responsibilities. Employees should invest in training and development for their employees, to do this they should carry out training needs analysis to find out what skills and knowledge is needed for the future of the organisation. They can do this by: Organisational analysis – Task analysis – Person analysis – SCSC Year 12 Business Management. Weebly. com

21. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Recognition and rewards Individuals like to be recognised and gain feedback for acts that they have done. This can be done through having supportive management and being treated as a worthwhile employee, establishing a recognition and reward program relates directly to motivation of employees and can be treated as an outcome of a successful performance appraisal. Table 10.7 Page 225 – Examples of financial and non financial rewards SCSC Year 12 Business Management. Weebly. com

22. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Performance Management Is the system used to improve organisational, functional and individual performance through linking the objectives of each, it assesses all phases of the employment cycle. Is vital for organisations to conduct a continuous process of evaluating how effectively employees are fulfilling their responsibilities and contributing to the attainment of the organisations objectives What do performance appraisals report: - Have the organisation selection devices been effective - It gauges whether current training & development programs have been effective - Shows where training, development & motivational programs are required - Provides a basis for decisions relating to remuneration, reward, promotion or dismissal SCSC Year 12 Business Management. Weebly. com

23. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Performance Management The 3 steps in the appraisal process:  Identify and establish performance appraisal objectives  Evaluate or appraise the employees performance through a combination of observatiuons and analysis  Review the performance and provide feedback to the employee. Strengths must be recognised and rewarded, weaknesses overcome with assistance. COMPLETE ACTIVITY 10.10 (page 227-228) SCSC Year 12 Business Management. Weebly. com

24. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Performance Management The 4 common appraisal methods:  Management by Objectives – involves setting specific, measurable objectives with an employee and then periodically reviewing the employees performance.  Comparative Standards – performance appraisal where one employees performance is compared to or ranked against the performance of another employee.  Absolute Standards – a method of performance appraisal involving the independent evaluation of an employees performance by their manager.  Critical Incidents – involves the appraiser/manager recording observations or events of good or poor employee performance. SCSC Year 12 Business Management. Weebly. com

25. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 2. Maintenance Phase Performance appraisal outcomes A successful appraisal can result in financial and other rewards, an unsuccessful appraisal may result indicate that the employee needs support Some outcomes from appraisal may include: (page 228-229) 1- Remuneration and rewards – 2- Training and Development – 3- Counselling – 4- Job Promotion – 5- Job rotation/transfer – 6- Termination – SCSC Year 12 Business Management. Weebly. com

26. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 3. Termination Phase Voluntary Termination Methods Involuntary Termination Methods Termination Management SCSC Year 12 Business Management. Weebly. com

27. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 3. Termination Phase Voluntary Termination Methods Resignation – occurs when an employee voluntarily decides to leave the organisation, generally to take a position with another organisation. Retirement – occurs when an employee decides to leave the paid workforce. This is not only associated with older employees, it can also be younger employees who no longer wish or need to work. Effects of employees voluntarily leaving an organisation include: - Loss of talent - Cost of replacement - Decline in morale - Breakdown of effective teams - Productivity could increase or decrease SCSC Year 12 Business Management. Weebly. com

28. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 3. Termination Phase Involuntary Termination Methods Retrenchment – is usually linked to redundancy. Redundancies can arise when: - an employer is closing part or all of their business - an internal organisational restructure occurs - new technology is introduced - a business is relocating - duties of one employee are reallocated to another employee - the business merges with or acquired by another business Dismissal – is often referred to as being fired, given the sack or ‘the flick’. The main reasons for dismissal are unsatisfactory work performance and/or illegal behaviour SCSC Year 12 Business Management. Weebly. com

29. Chapter 10 – Management of the Employment Cycle The three phases of the employment cycle: 3. Termination Phase Termination Management Human resource management must ensure all phases of the employment cycle are conducted in an ethical manner. There are 2 main areas where organisations can demonstrate their high level of ethical behaviour towards their employees: 1. Outplacement Services – these are services for employees who have been retrenched to gain new work and to cope with one of the top five most stressful event that can occur in a persons life. 2. Transaition Services – this service is provided to employees who are retiring and need assistance to organise their finances, lifestyle planning and volunteering activities. SCSC Year 12 Business Management. Weebly. com

30. Chapter 10 – Management of the Employment Cycle CHAPTER SUMMARY QUESTIONS 1 – complete the definition pages at the start of the power point presentation. 2 – internal & External factors effecting HR planning 3 – process to prepare job description & Job specifications 4 – key elements of a job description 6 – Explain how internal and external recruitment differ 7 – interview process 9 – difference between Training and Development 10 – key elements of recognition and reward program 11 – effective performance management system 12 – 4 common appraisal processes 13 – 6 common outcomes for performance appraisals 14 – impact voluntary & involuntary termination have on org’s EXAMINATION PREPARATION QUESTIONS Always good to apply your knowledge and see how you go answering long answer applied questions SCSC Year 12 Business Management. Weebly. com