On completion of this study unit, you should be able to: 1. Define human-resource management and strategic humanresource management. 2. Explain the role of the human-resources manager. 3. Identify and explain the human-resource management process by discussing the activities and functions of human-resource management: strategic planning, staffing, developing and assessing the organization's human resource. 4. Explain the maintenance of the organization's human resources. 5. Discuss the current trends in human resources management. LO 1 Ch 6 -106 LO 1 HRM = Function in the workplace that entails all the practices and policies related to the in an organisation. HRM = The process through which an optimal fit is achieved among the employee, job, business and environment, so that employees reach their desired level of satisfaction and performance, and the business meets its goals. Ch 6 -106 LO 1 SHRM seeks to ensure that the HR function with the strategic, long term, top-level management decisions of the organisation. e.g., internationalisation of the business, require HR to be involved in planning and organising workforce requirement . Ch 6 -106 LO 2 Role of the human-resources manager, Ensuring that the organisation’s human resources are managed as effectively and efficiently as possible. + To meet two goals: Increasing organisational effectiveness. Satisfying employees' needs. • • Primary Responsibilities of the HR manager: ensure best use of HR Part adviser Part manager Part counsellor Part strategist Part trainer and developer Ch 6 -107 - 108 LO 3 Three main activities: 6.3.1.) Strategic HR planning 6.3.2.) Staffing 6.3.3.) Development and assessing LO 3 6.3.1) Strategic HR planning Four phases of strategic HRM planning Once HR STRATEGY is determined, two steps remain: Ch 6 -109 LO 3 6.3.1.1) Strategic HR planning: Job analysis Job Analysis Determines: 1) (Job Description) The content of the job & 2) (Job Specification) Behaviours and attributes necessary to master the content Figure 6.3: Job analysis results in two end Ch 6 -109 - 110 products LO 3 6.3.1.1) Strategic HR planning: Job analysis – Uses • 1 - HR forecasting • 2 - Recruitment • 3 - Interviewing and selection • 4 - Induction • 5 - Training and development • 6 - Job evaluation and remuneration decisions • 7 - Organizational restructuring • 8 - Performance management • 9 - Job redesign • 10 - Organizational restructuring redesign • 11 - Labour relations Ch 6 -110 - 111 LO 3 6.3.1.2) Strategic HR planning: HR Forecasting (TEXTBOOK) HR forecasting (workforce planning) - ongoing process of - developing and implementing plans, - so that the right employees fill the right type and number of jobs, - allowing the organisation to achieve its goals and objectives. - purpose: balance supply & demand of organization’s human resources. Ch 6 -111 LO 3 6.3.2) Staffing the organisation Staffing involves finding suitably qualified workers to fill particular jobs, Done through: • 1 Recruitment • 2 Selection • 3 Induction Ch 6 -111 LO 3 6.3.2.1) Staffing: 1 Recruitment Recruitment refers to all HRM actions used to draw a sufficient number of available and qualified job applicants to apply for a job so that the most appropriate one can be selected. • Internal – filling positions from inside the organisation • External - filling positions from outside the organisation • Usually, a combination of both Advantages and Disadvantages P. 111 - 112 Sources and Techniques P. 112 Ch 6 -111 - 113 LO 3 6.3.2.2) Staffing: 2 Selection Selection is the process where the individual who best suits a particular position is chosen from a group of applicants. Selection process p. 115 Ch 6 -113 LO 3 6.3.2.3) Staffing: 3 Induction Definition: Induction is the process though which the new employee is welcomed and orientated to the organisation. Objectives of an induction programme: Makes new employee feel more at ease. Introduce him/her to everyone and everything. • • Ch 6 -116 - 117 LO 3 FYI INDUCTION – An introduction with who you are going to work for Includes: -Company overview. (Mission, Vision, Values; History , objectives and clients; management team and hierarchy; Policies and dress code; Business code of conduct guidelines) 6.3.2.3) Staffing: Induction -Joining and statutory forms. ORIENTATION – Aligning with job role & responsibilities and work culture. Includes: -Multiple learning methods (Presentation and videos; Information sessions and online learning; Workplace tour and Formal meetings with teams and departments.) -Information of procedures and processes -Information of work assignment/ job, clients -Introduction to team members and key contacts. -Information about employment terms and conditions. Ch 6 -116 - 117 LO 3 6.3.3.) Developing and assessing the organisation’s human resources: 6.3.3.) Developing and assessing the organisation’s human resources, involves 6.3.3.1.) - Training and Development (T&D) 6.3.3.2.) - Performance Management Ch 6 -117 - 119 LO 3 6.3.3.1.) Developing and assessing the organisation’s human resources: Training and Development Training - opportunities to enhance employee's skills and knowledge to do a specific job. Development - long-term focus on preparing employees for future work responsibilities Ch 6 -117 - 119 LO 3 6.3.3.2.) Developing and assessing the organisation’s human resources: Performance Management Performance management is a - formal and methodological, on-going process, - of joint review between the manager and employee, - by means of which employees’ job-related strengths and weaknesses, - are identified, measured against objectives, and - followed by a development plan. Types of Performance Criteria: - Trait-based: focus on employee personal characteristics (loyalty to organization) - Behaviour-based: focus on behaviours leading to job success (e.g. ability to work well with co-workers) - Outcomes-based: focus on what is achieved/produced (linked to organizational goals) Ch 6 -117 - 119 LO 3 Compensation 1 Extrinsic Rewards 1.1. Non-financial 1.1.1. Status rewards (office furniture) 1.1.2. Social rewards (praise) 1.2. Financial 1.2.1. Wages, Salaries 1.2.2. Benefits 1.2.3. Incentive schemes Compensation Objectives 1. Attract good applicants 2. Retain good employees 3. Motivate employees to demonstrate effort 4. Comply with current legislation 5. Ensure organizational profitability 2 Intrinsic rewards 2.1. Opportunities for personal growth 2.2. Most interesting work Ch 6 -120 LO 3 Compensation objectives: Ch 6 -120 LO 5 • 1 - International recession • 2 - Social networking • 3 - Work-life balance significance • 4 - Need for measurement of results • 5 - Need for ethics and social responsibility • 6 - Safety issues • 7 - Globalisation • 8 - Emphasis on performance management • 9 - Need for skilled employees • 10 - Demographic change • 11 - Government legislation Ch 6 -121 On completion of this study unit, you should be able to: 1. Define human-resource management and strategic humanresource management. 2. Explain the role of the human-resources manager. 3. Identify and explain the human-resource management process by discussing the activities and functions of human-resource management: strategic planning, staffing, developing and assessing the organization's human resource. 4. Explain the maintenance of the organization's human resources. 5. Discuss the current trends in human resources management.