B
What is Human Resource
Management??
• HRM is the process by which an organisation attracts,
develops and rewards its workforce.
• This involves managing the employees in the business by
ensuring that the business finds, keeps and makes the best
use of them.
• HRM works best when you match your organisation’s goals
with the employees needs
• This means hiring people with the qualifications, abilities and
attitudes which the organisation needs to achieve its goals
Functions of a Human Resource Manager
1. Manpower Planning
2. Recruitment and Selection
3. Training and Development
4. Performance Appraisal
5. Rewarding Employees
6. Managing Employer
1. Manpower Planning
• Manpower Audit – compile a record of the types and levels of
skills in the workplace at present
• Forecast future needs – estimate future sales and anticipated
changes in the business environment
• Compare with present day – check if you’ll need additional
resources
• Plan to meet needs – increase or decrease the manpower
resources as required by analysis; this is done through a
combination of:
•
•
•
•
•
Natural Wastage
Redundancies
Promotion
Redeployment
Recruitment
• Ensures the business always has enough workers.
• Saves money by ensuring that there are not too many
employees.
2. Recruitment & Selection
• Preparation - Job Description & Person Specification
• Find the Candidates - Advertise
• Screen Candidates
• Interview
• Selection
• Induction
2. Recruitment & Selection cntd…
Recruitment
• This means finding suitable people for a job and
persuading them to apply for it.
• It involves preparing a job description and a person
specification.
• The HR mngr must find the person through
internal/external recruitment.
Selection
• This means choosing the best applicant out of all who
have applied.
• First the HR mngr will screen out the applicants who don’t
meet the requirements and will then use tests, interviews
etc to find the best candidate.
2. Recruitment & Selection cntd…
Stages in Recruitment and Selection
1. Prepare a Job Description
• This describes the duties and responsibilities of the job
e.g. the salary, hours etc.
2. Prepare a Person Specification
• This describes the type of person needed for the job e.g.
experience, qualifications etc.
• The managers can then use information from both to draft
an advertisement.
3. Encourage Suitable Candidate to Apply
• The manager will now use internal/external recruitment to
find a suitable candidate.
2. Recruitment & Selection cntd…
External Recruitment - This means finding someone from
outside the business to apply
Sources:
• Media advertisements (newspaper, radio)
• Recruitment agencies (irishjobs.ie)
• FAS-national training and employment authority and keeps
register of all those looking for a job.
• Headhunting (approaching people in rival businesses)
Advantages:
• New person may bring new, fresh ideas
• Hiring outsider may cause less jealousy than internal
recruitment.
• By opening the vacancy up to outside word the business can
find best qualified person.
2. Recruitment & Selection cntd…
Internal Recruitment - This means finding someone from
those who already work in the business
Sources
• Promotion
• Demotion
• Transfer (person in one branch moved to another branch).
Advantages
• Existing employees already know how the business works.
• Manager knows exactly how good the employee is.
• It provides career paths for employees and motivates them.
• It is cheaper and quicker than external as there is no
advertisements
2. Recruitment & Selection cntd…
Curriculum Vitae (CV)
• The document prepared by an applicant for a job which
summarises the following information:
• Name/Address/Education/Experience/Hobbies/References/
Signature/Date
Application Form
• This is printed by employer which asks personal questions to
the job applicants.
• It is sent out to the applicants who send it back after.
• It asks things such as qualification, work experience, what
attracted them to the job etc.
Letter of Application/Covering Letter
• Candidates should always submit this with their application.
• It introduces himself to the employer, talking about why they
want the job and what qualities they have.
2. Recruitment & Selection cntd…
4. Screening
• The HR manager now examines all applications and then
rejects the ones who do not meet the requirements.
• Those who have been screened out are “shortlisted” for the
next stage
5. Selection Tests
• The applicants now go through a serious of tests e.g.
intelligence, aptitude, personality.
6. Interview
• Purpose of this is to find out more about the applicant and is
most common selection technique in Ireland but has flaws.
• To overcome interviewer bias many businesses use panel
interviews.
• The business might also use a stress interview to see how the
candidate reacts.
2. Recruitment & Selection cntd…
7. Check References
• The HR manager checks the references to confirm the
information given about the candidate and to get a
different perspective on them.
8. Offer the Job
• The HR manager offers the job to the best candidate.
• If he declines it, the offer is made to next best applicant
and so on.
• When an applicant accept, a contract of employment is
drawn up which sets out the duties and behaviour
expected which both people sign.
2. Recruitment & Selection cntd…
Importance of Recruitment
1. Drawing up a job description/person specification helps
business to find exactly the right person needed.
2. Good recruitment discourages unsuitable people from
applying which saves time and money
Importance of Selection
1. Choosing candidate who shares same beliefs will lead to
less industrial action.
2. Choosing the right person is essential in ensuring that
the job is done well.
3. Training & Development
• Induction – work, policies, codes/rules, people
• On the job Training – work shadowing
• Off the courses – training centre
• Benefits - Ensure adequate skills, increase morale, focus
and productivity
• Drawbacks – Can cost a lot of money, other employees
may become resentful if not chosen to go for training
3. Training & Development cntd…
ON-THE-JOB Training
• This is teaching the employee what he needs to do the job while he is
in a normal working situation.
• The employee learns through practical experience.
• Techniques include job rotation where the employee moves from one
department to another to learn about each one.
OFF-THE-JOB Training
• This is teaching the employee the skills needed away from normal
working situation.
• The employee learns by attending courses.
• Techniques used include evening classes, conferences etc.
• Example of training - showing employees how to use company email
system
3. Training & Development cntd…
Development
• This is giving the employee life-long skills to help them to
grow as individuals and tackle any future challenges.
• It teaches them skills which can be used in any job in the
future and enables employees to seek more challenging
work.
• Example of development - sending employees on
communication skills courses
3. Training & Development cntd…
Importance of Training and Development
• It gives the workers the skills needed to do job and make
better quality products.
• It gives them a variety of skills which makes them more
flexible to change.
• It means workers will need less supervisions which saves
managers time.
• It means that there is less industrial conflict and the
workers are doing their job well.
4. Performance Appraisal
• Process of Reviewing the performance of an employee
• Measures progress
• Identifies factors which have contributed (either way)
• Agree corrective action (if required)
• Set new targets
• Discuss skills
• Review employees career plan
• Benefits – encourages employees to take responsibility
for their own development, motivates, offers reassurance
and identifies employee’s needs
4. Performance Appraisal cntd…
• This involves the HR manager assessing how each worker is doing
and grading them on how well they perform tasks.
• Workers who score highly may be rewarded, those who score badly
will be given more training
Steps:
1. Employee and manager meet to set targets.
2. Manager regularly evaluates the employee’s progress
3. The manager fills in a performance appraisal form and the two meet to
discuss the results.
Importance of Performance Appraisal
• It identifies employees who need training
• It identifies employees who are suitable for promotion
• It helps decide future pay rises and bonuses/motivates employees
• It improves communications between managers and employees as it
involves regular meetings.
5. Rewarding Employees
Pay and Rewards
Financial
1. Basic Wage
• The employee is paid a fixed amount each week/month e.g. teachers.
• Advantage - easy for employer to operate.
• Disadvantage - does not give employee incentives.
2. Hourly Rate
• The employee is paid a fixed hourly rate. Hours in excess of the set
amount are paid at a higher rate (overtime).
• Advantage - easy for employer to operate.
• Disadvantage - may cause employee to “drag out” work to earn more
3. Piece Rate
• Employee is paid fixed amount for each item he makes.
• Advantage - encourages employee to work harder.
• Disadvantage - employees may rush work and make mistakes.
5. Rewarding Employees cntd…
4. Commission
• Employee received a percentage of the sales they make.
• Advantage - works as incentive.
• Disadvantage - may cause salespeople to be too pushy and turn customers off.
5. Bonus
• Additional lump-sum payment given to employee when he reaches his target and
is usually given at the end of the year.
• Advantage - encourages employee to work towards target.
6. Benefits-in-kind
• These are non-cash payments e.g. company cars, subsidised meals.
• They are used to raise the status of the job and improve moral
7. Share Ownership
• Employees are given free or cheap shares in business.
• It provides a big incentive as the better the business does, the better the dividend
the employee will receive and the more their shares will be worth.
8. Profit sharing
• Employees are paid a percentage of the profit made by the business.
• Advantages - Employees are more motivated/helps to attract new staff/employees
feel part of business which leads to better industrial relations.
5. Rewarding Employees cntd…
Non-Financial Rewards
1. Job Enlargement
• Employees are given extra duties to relieve their boredom but
without extra responsibility.
2. Job Enrichment
• Employees are given greater responsibility with tasks that
develop them and get them to use their full abilities.
3. Improved Working Conditions
• Employees may receive flexitime which is a huge benefit.
• They may also receive longer holidays.
Importance of Pay and Rewards
• Good pay and rewards motivates employees to work harder
and produce better products.
• It also helps to attract the very best employees.
6. Managing Employee
Employer/Employee Relationships
• This is to try and improve the industrial relations.
• This refers to how the employers and employees communicate with
each other and get along
Importance of Good Employer/Employee Relationships
1. The employees will be happier in the work and will therefore become
more motivated to do their best for the business.
2. The employees will put in extra effort and work harder (employee
productivity).
3. The employees will stay in the job and so labour
turnover/absenteeism is reduced which saves the business money.
4. The employer will delegate more work to the employees with means
that employees make a useful contribution to business.
5. There will be less chance of industrial action which saves the
business money and helps its reputation.
6. Managing Employee cntd…
Improving Industrial Relations
1. Regular Open Communications
• The HR manager should hold regular face--‐to--‐face meetings with
the employees to keep them informed and build up trust between the
two.
• The business should be honest and truthful and not keep things from
employees.
2. Grievance Procedures
• The parties agree in advance on procedures for dealing with conflict
situations such as promotions, grievance etc.
• This means that when conflict arises that there is an agreed way to
solve it.
• A redundancy procedure may be drawn up such as “Last In First Out”
method
3. Train Managers
• Managers should be given training in how to deal with employee
problems in a sensitive way so as not cause industrial disputes
6. Managing Employee cntd…
4. Careful Selection
• The HR manager should select employees who will fit in
and share the businesses’ beliefs
5. Train Employees
• Employees should be trained so they can perform duties
expected of them and so reduce conflict with managers.
6. Managing Employee cntd…
Teamwork - Stages in Forming Teams
In 1965 Bruce Tuckman developed this theory on forming teams:
1. Forming
• Members of team meet for first time.
• They are polite and discuss the job they need to do.
• They don’t reveal too much as they are “sussing each other out”
2. Storming
• Conflict occurs as they get to know each other better.
• Arguments happen due to emergence of strong personalities.
• Rows happen when members vie for position within team.
3. Norming
• Team members resolve conflicts and reach a consensus.
• They agree on who the leader as and divide up the roles.
• They begin to trust each other and set “norms” which are standards of
behaviour.
4. Performing
• They pull together as one and focus on the job.
• They co-operate and work as a unit.
6. Managing Employee cntd…
Advantages of Teams for the Business
1. Teams make better decision - The members can brainstorm
and come up with creative solutions. Each member brings
different skills and ideas.
2. Increase employee motivation - The employees are happy
to mix with other people which satisfies their social need
(Maslow).
3. Make better quality products - The members develop team
spirit and do the job better so as not to let the team down. The
business can also use rivalry between teams to encourage them
to work harder.
4. It improves relationships/communications-The team
members come from different departments and so they mix with
each other and get to understand each other’s work which leads
to fewer disputes
6. Managing Employee cntd…
Advantages of Teams for the Employees
1. Allows employees to make contribution - The members
make contributions to business which satisfies their esteem. He
also gets praise from team members which helps motivation.
2. Satisfies employee’s social needs - Employees are happy
to work in tram as they are mixing with other people and so
enjoy work more as they can speak to their teammates about
problems etc.
3. Team Spirit - The members do their best to make the team
succeed and so the member support and help each other.
4. Improves Relationships - The members come from different
departments, mix with each other and so develop better
relationships with each other.