1. UNIT 4
MANAGING PEOPLE AND CHANGE

2. The importance of human resource management to business success
Human resource management (HRM) is the ongoing management of people within the employer–employee relationship. It involves getting the right people in the right place at the right time.
The HRM function must manage the
organisation’s most costly and valuable
asset: its employees.

3. The role of a human resource manager
HRM has progressed from an administrative role to its current strategic role with representation at senior management levels.
The role of a human resource manager
The role of an HR manager is to translate
business strategy into action. Initially, HRM
objectives must be established. Pressures
from the organisation’s external and internal
environments influence these objectives.

4. Strategies are then developed from related HRM activities created
Strategies are then developed from related HRM activities created. Performance indicators (PIs) are used to measure the outcomes to assess how effectively the objectives have been achieved.
In addition, HR
managers are involved in:
strategic planning, relating to forecasting
demand and supply of labour and succession planning

5. management of the employment cycle, which covers the three phases of establishment, maintenance and termination
innovative strategies relating to appraisal,
skill development, remuneration and
flexible work practices
acting as an advocate for employees when negotiating with management
designing and implementing strategies to increase employee motivation, job
satisfaction, productivity, employee relations and customer service

6. acting as a change agent and providing
support and education for supervisors, team leaders and line managers responsible for implementing HR policies and practices.
HR managers are referred to as staff
managers, providing specialist advice or
assistance to line or functional managers.

7. Measuring HRM effectiveness
Effectiveness of HRM outcomes can be
evaluated against the following:
commitment and competence of employees
level of cost effectiveness
congruence (harmony)
adaptability to change
performance related to productivity
level of job satisfaction and employee motivation

8. Employee expectations
Employees have expectations from their
work, such as:
being paid a fair wage
keeping regular work hours
gaining job satisfaction through an interesting, challenging and secure job
receiving assistance when needed and positive feedback

9. Employer expectations
leave being available for personal or family reasons
flexible working arrangements, working within a professional and safe environment
an opportunity for skill development and promotion.
Employer expectations
Employers have expectations from employees,
such as:
working towards achieving organisational objectives
acting professionally and gaining job satisfaction

10. work being completed and on time; providing good customer service; punctuality;
not sabotaging business activities; being committed, courteous and respectful; and working cooperatively and productively.
Motivation
Motivation for individuals is the drive
to achieve a personal goal.

11. For an organisation, an individual’s motivation needs to be harnessed to assist them to achieve personal goals, while working towards organisational goals.
It is the function of human resource
managers to support and advise line
managers on ways to motivate their staff.

12. Theories of motivation
A variety of management theories discuss approaches to motivation. Abraham Maslow’s five-stage hierarchy of needs – physiological, safety, social, self-esteem and self actualisation is based on importance of the needs.
It should be recognised that an individual would progress through the stages. Each stage must be substantially satisfied before moving to the next stage, which would act as a motivator. HR managers need to understand the relationship between the levels of needs and what HR activities relate to each level.

13. Frederick Herzberg’s two-factor theory identifies higher order (motivating) and lower order (hygiene) needs.
Motivators relate to job content (e.g.
recognition and responsibility) and are seen as
intrinsic in nature. Hygiene factors relate to the
work environment (e.g. working conditions and
salary) and the absence of these can lead to job
dissatisfaction.

14. Edwin Locke’s goal-setting theory states that the setting of goals leads to increased effort, tasks focus and persistence.
Goals set must be specific, measurable,
achievable, relevant and time-bound. Employees
must receive feedback. This theory links to the
organisational approach to goal setting by using
the Management by Objectives approach.

15. Human resource management
It is the role of human resource management to put motivational theories into practice.
Motivational theories for job satisfaction and performance
Commonly used motivators are established by:
establishing a comprehensive reward system
designing jobs to allow for enlargement and enrichment
creation of teams
quality circles and worker empowerment
flexible work practices and a positive organisational environment and corporate culture.

16. Human resource planning
The role of HRM is to ensure that business strategy is followed when implementing human resource strategies.
Three phases of the employment cycle
There are three phases of the employment
cycle: establishment, maintenance and termination.

17. Establishment phase Maintenance phase
The establishment phase involves establishing the employment relationship. It covers areas such as human resource planning, job analysis, recruitment and selection, employment arrangements and remuneration.
Maintenance phase
The maintenance phase involves induction,
training and development, recognition and rewards,
and performance management.

18. The human resource management function
Termination phase
The termination phase covers the various forms of termination (voluntary and involuntary), entitlements, outplacement and transition.
The human resource management function
Each particular phase has its important components, all of which are essential in ensuring good performance from the human resource management function.

19. Relationship of employee relations to business objectives and strategies
Employee relations is the total relationship and interplay that occurs between an employer and their employees.
Employee relations is a key responsibility of the human resources department.
The aim of employee relations is to optimise the working relationship so that it results in an increase in productivity and business competitiveness.

20. Australian employee relations
The Australian system of employee relations has undergone significant change over the past 20 years. The reforms made aim to improve flexibility and competitiveness in the Australian workplace.
Approaches to employee relations
The employee relations system has gone from a centralised model where pay and working conditions were determined by a central body (AIRC) to a decentralised model.

21. This decentralised model means negotiations are conducted by an employer and their employees at the individual workplace.
The traditional view was based on conflict and an adversarial approach rather than the current emphasis on teamwork and cooperation.
There are four main participants in Australian employee relations: employees/unions, employers/employer associations, government and Fair Work Australia institutions.

22. Participants in Australian employee relations
Industrial action is only permitted during the renegotiation or bargaining period of a collective agreement.
Industrial action
Employees may use a variety of forms of industrial action: passive resistance, work to rule, boycott, stop-work meeting, picket line and strike.
Employers are permitted to conduct a lockout.

23. Employee relations and HRM
The role of the human resource manager has greatly increased under the decentralised approach.
Managers need to adopt a participative management style and employ a range of skills, especially in time of workplace conflict.

24. Performance indicators
A range of performance indicators can be used to measure the state of health of a workplace in relation to its employee relations.
Why do organisations need to be ethical and socially responsible?
All stakeholders and the community expect large-scale organisations to be socially responsible and ethical in their business practices.
Organisations differ in their interpretation of what it means to behave ethically and in a socially responsible manner.

25. Adopting an ethical and socially responsible approach has become one of the most significant changes required by organisations.
Ethical and socially responsible management of the internal environment
The internal environment is influenced by ethics and social responsibility and its impacts on objectives, structure, policy, culture, management style and skills.

26. Corporate social responsibility
Corporate social responsibility (CSR) impacts on the operations management system through quality, technology, materials management, environmental management system (EMS) and supply chain management.
Ethical management of the human resource management function
CSR impacts on Human resource management (HRM) through:

27. recruitment methods
selection
induction
policies
motivation
employment arrangements
training and development
performance management and exit strategies.

28. Ethical management in times of change
When large-scale organisations are going through change, it is important that the process incorporates ethical behaviours and is influenced by CSR.
The concept of organisational change
In contemporary organisations, change is continuous and sometimes unpredictable.

29. Internal pressures as a source of change
Change is the process of taking the existing organisation, altering it, then establishing a new or altered form.
Internal pressures as a source of change
There are a number of pressures that can influence an organisation, including: internal
pressures, such as corporate culture, employees, managers and policies; operating pressures, such as suppliers, competitors and trade unions;….

30. …macro pressures, which are external and include economic, environmental, technological, social and legal pressures;…
…economic pressures, including the level of economic activity, interest rates, the rate of inflation, the value of the Australian dollar and the rate of unemployment.

31. Driving and restraining forces for change
Kurt Lewin has developed a theory of ‘force field’ analysis that is based on the driving and restraining forces for change on organisations.
The Kotter theory of change management
John Kotter introduced an eight step change theory to manage successful change.

32. Strategies for effective change management
For change to be successful, a number of strategies must be in place.
These include identifying change strategies, communicating with employees, setting goals for each stage of the implementation, focus on training and development and performance appraisal. Strategies can include both low-risk and highrisk practices.

33. The role of leadership in change management
Leaders and managers play a vital role in the change process and must possess a number of skills and qualities, including communication, visionary skills, delegation and decision making.

34. The possible impact of change on the internal environment
Change can impact on the internal environment of an organisation, including structure, activities, operations management and human resource functions