Unit 4 Area of
Study 1: The
Human
Resource
Management
Function
Chapter 10: Management
of the employment cycle
The Employment Cycle
 The
stages an employee progresses
through from the time they are employed
until they leave the organisation
 Pattern repeats itself as new employees
are hired to replace those leaving
Three phases of the
employment cycle
1.
2.
3.
4.
Voluntary Methods
Involuntary Methods
Unfair Dismissal
Termination
Management
5. Outplacement
6. Transition Services
Termination
Phase
Establishment
Phase
1. HR Planning
2. Job analysis and job
design
3. Recruitment
4. Selection
5. Employment
Arrangements
6. Remuneration
Maintenance
Phase
1. Induction
2. Training and
development
3. Performance
Management
4. Recognition and
rewards
The
Establishment
Phase
Human Resource Planning
 Planning
for future personnel needs, taking into
account both internal activities and factors in
the external environment
 Awareness of factors from internal and external
environment include:
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Structural changes in the labour market – decline
in manufacturing industries
Work patterns are changing – flexible working
hours and a move away from traditional working
week
(continued on next slide)
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Length of working life is changing – later entry
into employment, attitudes to retirement
Change in skills and education expectations –
more people seeking tertiary qualifications
Labour shortage within the next decade due to
the ageing of Australia’s working population
Increasing demand for work-life balance
Generational change – difference need to be
acknowledged and worked around
Change in strategic direction of organisations –
downsizing operations
 HR
Management must plan to assist the
organisation to:
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Meet current employment requirements in all
phases of the employment cycle
Cater for future needs by determining how
many employees will be required and what
specific skills they must have
Ensure that the required human resources will
be available to achieve the organisations
strategic plan
Be in a position to assist the organisation to
respond to external factors
 Activity
10.1
Job Analysis
 Job
analysis: systematic process of
gathering information relating to a job
being performed. Finding out all the
information about a job.
 Job design: creating a new job or altering
an existing position.
 Job description: written statement of tasks
performed, how and why they are done
(job title, summary, responsibilities, duties,
key performance indicators)
 Job specification: the person’s experience,
qualifications, skills, abilities, knowledge,
remuneration and special requirements of
the person
 Methods
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used to conduct a job analysis:
1. Interviewing the present job holder – can be
time consuming
2. Questionnaires – allows for information on a
large number of jobs to be collected in a short
period of time
3. Observation – job holder could be watched
4. Supervisory reports – details provided by
supervision to give perception of what the job
entails
5. Log books and daily work diaries –
completed by the job holder
 Activity
10.2 Worksheet
Recruitment
 The
process of finding the best qualified
pool of applicants
 Process begins with:
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Identifying human resource requirements
Determining where the qualified pool of
applicants can be found (recruitment
sources)
Choosing a specific means of attracting
employees to the organisation (recruitment
methods)
Identifying human resource requirements
 Ensure that people recruited and
selected have the unique skills and
attributes required by the organisation
 Determine whether the focus is on
technical skills and formal qualifications or
personality and the potential for personal
and career development
Recruitment Sources
 Internal Recruitment: positions advertised
within the organisation to allow
employees career advancement by
transferring or being promoted
Advantages
Disadvantages
Quicker adjustment to position Employees may be promoted
beyond competency level
Incentive for employees to
gain career progression
No new ideas introduced,
could stifle creativity
Motivator and morale booster
Infighting and negative
impact for unsuccessful
applicants
Organisation knows applicant, Any poor work habits will
applicant knows organisation remain
 External
Recruitment: Locating
candidates from outside of the
organisation
Advantages
Disadvantages
Larger pool of applicants
Attracting/selection of new
employee is time consuming
and difficult
New insights, skills and abilities
bought to organisation
Induction takes longer
Costs can be lower as do not
have to fill two positions
Limits career advancement of
existing employees
New approach to work, issues
and problems
Greater element of risk as new
employee is an ‘unknown’
person
Costly form of recruitment
Recruitment Methods
 Newspapers – large, well-known employment
sections in certain editions of local and national
newspapers
 Internet sites – those seeking jobs can enter
specific details of the position they want
 Business websites – often used in conjunction with
other methods
 Recruitment agencies – time is money so an
organisation may outsource the initial stages of
recruitment who screens out non-suitable
applicants
 Word of mouth – ‘head hunting’ is actively
pursuing one person wanted for a position and
offering them an attractive package to leave
organisation for which they currently work
 Activity
10.3
 Activity
10.5
Selection
Selection Criteria
 Selection
is the
process
undertaken by an
organisation to
decide whether to
make a job offer to
a candidate
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A list of what the
organisation is looking
for in the applicants for
new positions
Include:
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Qualifications or
experience
Skills
Personal qualities
Receipt of
application
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Application: the
letter or
communication used
in expressing interest
in a job or advertised
vacancy
Application form:
basic source of
employment
information covering
qualifications,
experience and
other job-related
data
Initial screening
 Eliminates
applicants who do
not possess the skills
and expertise
required for the
position
 Shortlist of
applicants to be
created for
interviewing
Interviews
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1. Planning the
interview
2. Create the interview
environment
3. Opening the
interview
4. Questioning
5. Understand the legal
requirements
6. Listen and observe
7. Sell the job and the
organisation
8. Close the interview
9. Evaluate the
applicants
Testing
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Provides a scientific
component to
recruitment
Aptitude test: test of
special abilities that
are required for a
specific job
Personality or
temperament
questionnaire
Motivational
questionnaire
Competency testing
Physical examination
Background
investigation
 Reference
checks
provide important
opportunities to
learn more about
candidates
 Wise to check
academic
qualifications
 Police check can
be undertaken
Advising applicants
of outcome
 Position
needs to
be officially offered
to the successful
applicant
 Remaining
unsuccessful shortlisted applicants
need to be
advised of their
non-success
Employment Arrangements
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Permanent full-time basis – continuing contract of
employment, working 38 hours per week, entitled
to salary or wages, leave entitlements and
superannuation as well as long service leave
Permanent part-time basis – continuing contract
working fewer hours than full-time, same
entitlements made on a pro-rata basis
Casual basis – short-term, irregular or seasonal
work. Usually paid on an hourly basis and no
employment benefits such as leave
Fixed-term basis – either full-time or part-time for
project work or to replace employees absent on
long service or parental leave
Types of remuneration
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Wages – worked out on an hourly basis, overtime paid if
an employee exceeds ordinary hours. Penalty rates may
be paid for Sundays and public holidays.
Salary – annual figure usually paid on a monthly or
fortnightly basis. Overtime not paid to salaried
employees.
Packages – use for senior positions, include a salary
component, performance-based pay, company car,
share options and other fringe benefits
Benefits – can be categorised as dependent care
assistance programs (family care, maternity/paternity
leave, alternative work arrangements) or benefit plans
(additional superannuation, travel insurance, life
insurance, medical benefits)