22/02

Ch01

HUMAN RESOURCE MANAGEMENT - HRM

HR is a focus on managing people within the employer/employee relo

Productive use of people in achieving the orgs strat business obj and satisfaction of indiv employee needs

HRM is either part of the problem or part of the solution

Employment of high performance HR increases the value placed on HR by senior mgmt. and + impact
human/social capital

Human capital – knowledge, skills, ability

Social capital – strength of personal relos existing w/in an org that promos sharing knowledge, employee
motivation, teamwork and work commitments.

HRM deals directly w people

HRM is mgmt. but mgmt. includes more than HRM

Instrumental (hard) – stresses the rational, quantitative and strategic aspects. Performance
improvement and comp adv are highlighted
Approaches to
Humanistic (soft) – emphasises the int of HR policies and practices w strategic HRM
business objectives but also acknowledges employee development, collab,
participation and trust

Roles of the HR manager

Rapid change and increasing comp pressures, more complex and demanding HR roles emerge

Increased responsibilities, greater visibility, direct business impact

 HRM Activities

- Job analysis - HR planning - recruitment - selection

- Performance appraisal - HR development - career planning & development

- Employee motivation - change and cultural transf - health and safety

- remuneration/benefits - employee relations/industrial relations

A common indicator of an org and HRM performance is productivity

Defined by orgs total output of goods and services divided by its total outputs

Productivity improvements are necessary for the economy and org to remain competitive
 HRM and risk

HR manager should be able to understand how/where things may go wrong and extent of any neg effects

Eg. behaviour, reputation, security, culture, talent

Ethical issues and HRM

Managers are faced w complex, ambiguous and conflicting issues around morality

- Good/bad, right/wrong
- Is mgmt. more responsible to shareholders or employees
- Should things be managed?

24/02

Strategy is the direction that an org intends to move in and est. the framework for action to get there.

Strategic mgmt.

- Strat formulation
- Organisational mission and obj
- Enviro analysis
- Strategy selection and implementation
- Performance eval and feedback

Growth

Retrenchment

Stability
Types of strategies
International strats

- Global
- Multi-domestic
- Transnational
 HRM Strategies MUST

- Reflect strategic obj and vals of the org

- Be taken into acc in organisational strategies
- Support culture, climate, organisational processes to attract and retain good staff
- Identify the orgs competencies and match people to these
- Sustain and build organisational commitment

Strategic organisation and strategic HRM objectives

Focus on the linking of all HR activities w the orgs strategic objectives

Objectives must accurately reflect organisational values

HR objectives, policies and plans must be judges by how well they help achieve the orgs strategic business
objectives

Must be SMART

Purpose

Reassure employees that they will be treated fairly and objectively

Help managers make decisions

Give managers confidence

Strategic approach to HRM

A comprehensive strategic approach generates more informed and purposeful HR mgmt.

Mission/purpose, objectives, strategies, plans helo to direct the setting of HRM objectives

Organisational culture

Represented by values, beliefs, assumptions and symbols that define how an org conducts its business

Organisational culture/business success are co-dependent

HRM activities stimulate and reinforce the behaviour needed to achieve the organisations strategic objectives

HRM CHALLENGE

HR managers need to

- Be strategic contributors
- Show the true value of HR val to the organisation
- Be the employees voice
- Demonstrate professional competence

Employer branding

A critical way to attract, engage and retain the best people

Depends on the job mkt, employer/employee

Type of industry and size of the firm

What

Talent dimension as a key part of the corporate brand

Mkts perception of your company as an employer

Describes your promise to employees in exch for their exp, talents, contacts, skills

EVP encompasses your orgs missions, values, culture and gives employees a powerful reason to work for you

Essentials

Employee centred – engage former, current and future employees

Define how you want your org to be perceived in the mkt place

Use specific messaging to help attract the kind of prospects youre looking for

Talent framework

Ask employees for candid feedback abt what needs to change in the org for it to retain, motivate and attract the
best people over the long term

Reach out to new employees, asking them to assess important areas

Exit interviews

Employees look for

Company values and culture

Company location(s) and facilities, including accessibility and convenience

Overall compensation

Career development

Management style

Team calibre and quality

Quality of work

Ongoing employee recognition

Work-life balance, or proportion of work to time off

Benefits, such as dental insurance and vacation time

On-the-job perks like lunch, on-site childcare, flexitime, and telecommuting

Non-salary financial perks like commuter credits, bonuses, housing subsidies, relocation, and assistance

Opportunities for travel and client exposure

Opportunities to perform community service

Job security

How to improve your employer brand

1. Don’t focus on competition

2. Start a company blog and look at employee reviews
3. Use rich media
4. Hire for diversity
5. Seek professional help

01/03

Ch02

HR planning/strategic HRM planning

-Process of systematically reviewing HR requirements to ensure that the required number of employees w the
appropriate knowledge, skills and abilities are avail when needed

-Can also be described at employment planning

Importance

HR planning

- Systematically identifies what must be done to guarantee the availability of the hr required by an org
to meet business obj
- Ensures that
o Avail talent is correctly allocated
o Labour costs are controlled
o The # of staff is appropriate
o Talented employees are retained
 Issues

Scarcity of talent

- Talent is the prime source of comp adv, rather than raw materials, capital or tech

Balancing short and long term needs

- A common mistake is to concentrate on short term replacement needs rather than the orgs long
range hr requirements

Enviro influences and hr planning

Globalisation

- Movement of labour internationally

- “brain drain”

Multigenerational workforce

- New challenge for hr managers

- Traditionalists, baby boomers, gen x and y have distinctive chars at workplace

Planning issues

Women in the workforce

Academic standards

Labour mobility

- Is now a serious inhibitor to improved economic performance

o High cost of moving
o Lack of infrastructure in regional towns
o High costs of housing
o Poor transp infrastructure

Approaches to HR planning
Three forecasts are needed

- Demand for hr within the org

- supply of ext hr to the org
- supply of hr avail within the org

Quantitative methods

- use stat and math techs

- mainly used by theoreticians and professional hr planners in large orgs

Qualitative methods

- use expert opinions to predict future needs and actions

- focus on eval of employee performance, promotability, development

Forecasting hr requirements

Qualitative methods

- expert opinion is used to predict the future demand for hr

- delphi technique is a panel of experts, such as key line managers, make independent anonymous
predictions in answer to questions relating to hr planning
- nominal group technique requires participants to be in the same meeting room
Quantitative methods

- Trend projection
- Multiple regression modelling

Forecasting hr availability

Qualitative methods

• Skills inventory

– Consolidates information about all employees to identify those suitable for opportunities and
assess short and long-term organisational requirements.

• Replacement charts

– Visual representations of present incumbents and potential replacements (or lack thereof) for
given positions. See next slide.

• Succession planning

- takes a long term view or org needs

Quantitative methods

• Turnover analysis

- Detailed examination as to why people leave an organisation (for example: retirement, resignation,
illness, retrenchment, termination).

• Markov analysis

- A mathematical technique used to forecast the availability of internal job applicants. A matrix is
developed to show the likelihood of employee movement (internally or by leaving the organisation)
Factors affecting the ext supply of hr

The HR manager must be constantly alert to external trends, including:

- The ageing population in NZ

• 15.2% aged 65 or older in 2018

- Increase in female participation rates

- Increase in school retention rates
- Immigration changes
- Child labour
- Casualisation of the workforce
o Contingent worker = temporary or part-time

- The rise of the distributed workforce

- With ever longer commutes to work from ever expanding cities, many people are increasingly keen to
work from home or ‘telecommute”.

- Recruiting overseas workers

- Companies are increasingly seeking employees outside their domestic labour market.

Outsourcing
 - Subcontracting work to an outside company that specialises in and is more efficient at doing that kind
of work. International outsourcing is called offshoring.

Requirements for effective hr planning

The HR plan is integrated with the organisation’s strategic business plan.

Top management is supportive.

There are effective linkages between HR planning and HRM.

HR personnel understand the HR planning process.

The company allocates adequate staff, time and resources for HR planning.

The communications between HR personnel and line management are healthy.

There is a balance between the quantitative and qualitative approaches to HR planning.

The human resource information system is regularly updated and effective.

03/03

Human Capital

Skills, knowledge and abilities present in the orgs HR

A collective intangible asset/quality not listed on the company’s balance sheet.

The economic value of workers experience and skills

Education, training, intelligence, skills, wellbeing, performance, loyalty, punctuality.

Managing human capital

ROI

Unemployment, injury, mental decline, inability to keep up w innovation

Training and experience

Social capital

- Strength of personal relos existing within an org that promos sharing knowledge, employee
motivation, team work, and work commitments

Ch05

08/03

Job analysis, design and quality of life

Job analysis

a systematic investigation of the tasks, duties and responsibilities of a job and the necessary knowledge, skills and
abilities a person needs to perform the job adequately.

- Job content
- Job requirements
 - Job context

Approaches

- Job oriented or task approach

- An employee oriented or behaviour approach

When to analyse

- When the org commences

- When a new job is created
- When a job is changed signif

Uses of job analysis

Describing a job, identifies its content, requirements, and context

Job specs, focus on the skills, abilities, knowledge, personal chars and formal qualifications needed

Job design, what work needs to be performed, how, where, who

Job description – a written statement explaining why a job exists, what the occupant actually does, how they do
it, under what conditions.

- Job identification • Job objective

- Duties and responsibilities • Relationships
- Performance standards • Authority
- Accountability • Special circumstances
- Trade union/professional • Problem solving
- Knowledge • Other requirements.

Must be clear, concise and understandable

Job specification – derived from the job description. Identifies aspects necessary for job success including:

Experience, skills, abilities and knowledge

Personal characteristics

Special requirements

Ideal industry background, ideal current organisation, ideal current position

Route up: What would be the ideal career path for the candidate to have followed as preparation for this
position?

Remuneration.

Collection of job analysis info

Observation, interviews, job analysis questionnaire, diaries/logs, critical incident reports

A combo of data collection methods can also be used

Job analysis techniques include:

– The Australian and New Zealand Classification of Occupations (ANZSCO).

– Position Analysis Questionnaire (PAQ).

– Management Position Description Questionnaire (MPDQ).

– Position Classification Inventory (PCI).

/03

Competency profiling

A job analysis method that focuses on the skills and behaviours needed to perform a job successfully

An underlying characteristic of a person that leads to or causes superior/effective performance

Motives – what drives, directs and selects behaviour towards certain actions or goals and away from others

Traits – physical chars and consistent responses to situations or info

Self concept – a persons attitudes, values, self image

Knowledge – info a person has in a specific content area

Skills
 Ch06

15/03

Recruiting human resources

Strategic recruitment

Linking recruiting activities to the orgs strategic business objectives and culture
Recruitment

Seeking and attracting a pool of qualified applicants from which candidates for job vacancies can be selected

Employment branding

Promoting an image of the company as a good employer to create favourable impression w potential applicants

Issues

Realistic job preview

- A method of conveying job info to an applicant in an unbiased manner, including both pos and neg
factors

Recruitment policy

- Eeo
- Promo from within
- Promo from outside

Recruitment activities

Determine and categorise the orgs long range and short range hr needs

Keep alert to changes in the labour mkt

Develop an appropriate recruitment advert and literature and select methods to be used

Record the number and qual of applicants from each recruiting source

Follow up on applicants and evaluate

Recruitment methods
Downsizing, financial costs and the increased legal requirements associated w maintaining a full time workforce
have motivated employers to make greater use of indep contractors, temp workers and executive leasing

- This is despite the claimed advt of int promo

em

Internal recruitment methods

Computerised record systems

- Skills inventories
- Replacement charts

Job posting

- Bulletin boards
- Newsletters
- Personal letters
- Computerised posting programs

External recruitment methods

International recruitment

Advertising

Employment agencies

Mgmt. recruitment consultants

University recruiting

Employer referrals
Unsolicited applications

Professional associations

Trade unions
 Advertisements that enhance the image of the org

AIDA technique

Attention

Interest

Desire

Action

e-recruitment and HRM

application of web tech in recruitment originally focused on time and cost savings via the automation of std
admin tasks

the emergence of cloud computing and big data analytics now offer both signif challenged and strategic benefits
to HRM and orgs

- Improved employer image

- Sophisticated analysis of recruiting methods and sources
- Superior matching of applicant bio-data w employer recruitments

e-recruitment

involves recruiting via the internet (ext) and intranet (int)

all major companies now use some form of e-recruiting

provides signif potential benefits to orgs and applicants, but also downsides and risks

research shows that e-recruitment generates a greater quantity of applications but not necessarily candidates of a
higher qual

social networking sites

Recruiting is now one of the most important HR applications of social networking sites such as Facebook and
Google+ (social) and LinkedIn (professional).

The HR manager can glean considerable career-related information about both passive and active job seekers,
undertake detailed searches and track desired candidates.

The use of social networking sites in recruitment has raised a number of ethical, privacy and equal employment
opportunity issues.

EEO and recruitment

Recruitment of women

- A significant barrier is stereotyped thinking.

- Glass ceiling

• Glass walls.

- Women in trades and non-traditional occupations.

 - Women in sales.

- Recruitment of people with disabilities.

- Recruitment of older workers

o Grey ceiling.

- Recruitment of migrants.

- Recruitment of Aboriginal Australians and Torres. Strait Islanders.

- Recruitment of LGBTIQA+ workers.

24/03

Test one

- Answer four out of five questions

o 25 marks each
- Descriptive questions based on scenarios, short cases
- Not pure theory questions
- 2.5 hrs, online/handwritten, limited space
- Ch01 – hr role in a happy workplace
- Ch02 – key enviro influences in hr planning
- Ch05 – int and ext sources of recruitment
- Ch06 – job analysis, realistic job preview, matching model
- Ch07 – section, person job, person organisation fit

Ch07

Employee selection

Selection - the process of choosing the best qualified candidate/s from a group of applicants

Strategic selection – linking of selection activities to orgs strategic business objectives and culture

Selection criteria – key factors in making a decision to hire or not. May include qualifications, experience, special
skills, abilities or aptitudes. Should be job related

Selection policy

• EEO

• Quality of people

• Sources of people

• Management roles

• Selection techniques

• Employment consultants

• Industrial relations

• Legal issues
 • Occupational health and safety (OHS) issues

• Organisational strategic business objectives

• Costs

• Social acceptance

Validation of selection procedures

• Validity

The ability of a test or other selection technique to measure what it sets out to measure.

• The correlation coefficient

Positive, negative, high and low

Typical range 0.20–0.50

1.0 is a perfect score

Zero is no relationship.

• Two basic approaches used by HR Managers:

concurrent validity and predictive validity.

• Reliability

The extent to which a measure (for example a test) is consistent and dependable.

Types

• Test-retest

• Split halves

• Parallel forms.
 E-selection

• Companies are increasingly using internet technology for high-tech, graduate and high, large volume
appointments.

• Social networking sites (i.e. Facebook, LinkedIn) are used as screening devices and sources of information
about job applicants.

• The challenge for HR managers is to make appointment decisions based on consistent and non-
discriminatory information.

Application forms and EEO requirements

• Some questions/topics not to include:

Marital status

Residency status

National or ethnic origin

Organisations

Photographs

Race or colour

Relatives.

Criminal record.

• The following may be job-related in some circumstances:

Age

Gender

National or ethnic origin

Name

Language

Religion

Military service

Physical disability

Medical information

Height and weight

Body modifications.

Tests

• Interest

Compares interest patterns to those of successful employees.

• Aptitude
Special abilities (clerical, linguistic).

• Intelligence

• IQ. Physical

Physical characteristics.

• Personality

Measures personality or temperament.

• E-testing

using computers and the internet to administer employment and psychological tests.

Interview

• Unstructured

Few planned questions, more in depth.

• Structured

Uses predetermined checklist of questions.

• Behavioural

Past behaviour as the best indicator of future behaviour.

• Panel

• Group

• Video

How to interview successfully

• Know the job, personal characteristics, skills and qualifications expected.

• Set specific objectives.

• Provide the proper setting for the interview – put the applicant at ease.

• Review the application form or resume.

• Beware of prejudice.

• Don’t make snap decisions.

• Encourage the applicant to do most of the talking, but the interviewer must still keep control of the
interview.

• Explain the job.

• Close the interview.

• Write-up the interview properly.

• Check references and evaluate the whole process.

Medical examination

• Ensuring people are not assigned to jobs they are physically unsuited for.

• Safeguarding the health of current employees.

• Identifying symptoms of drug and alcohol abuse.

• Not placing applicants in positions that can aggravate existing injuries.

• Protection against workers compensation claims, and determining eligibility for insurance.

Screening tests

• HIV/ AIDS

All Australian defence recruits are tested. Army also has bans on recruits with diabetes and gout.

China, South Korea and Singapore require an AIDS test before granting work permits to Australians.

• Substance abuse

Drug and alcohol.

• Genetic

Whether someone is genetically susceptible to certain diseases.

Other selection techniques

• Biographical information blanks: for example: attitudes, hobbies, sports, club membership, years of
education, health, early life experiences, investments, sales experiences.

• Computer screening: Screening via resume scanning.

• Polygraph: Lie detector.

• Honesty: Evaluate honesty and integrity.

• Graphology: Handwriting analysis.

the selection decision

• Compensatory

Considering all the selection data (favourable and unfavourable) before a selection decision is made.

• Hurdles

Involves the screening out of candidates at each stage of the selection process.