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12 Human Resource Management

Human Resource Management (HRM) is crucial for ensuring organizations have skilled staff and managing costs associated with recruitment and turnover. The HR department is responsible for various functions including recruitment, training, remuneration, and grievance procedures. Effective HR processes involve fair recruitment and selection techniques, staff development, and adherence to legal frameworks for dismissal and redundancy.

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8 views26 pages

12 Human Resource Management

Human Resource Management (HRM) is crucial for ensuring organizations have skilled staff and managing costs associated with recruitment and turnover. The HR department is responsible for various functions including recruitment, training, remuneration, and grievance procedures. Effective HR processes involve fair recruitment and selection techniques, staff development, and adherence to legal frameworks for dismissal and redundancy.

Uploaded by

CLUMSY CLOUD
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Human Resource

Management
Why Human Resource Management
People are an indispensable part of the
organisation’s resources and, very often,
the most important part
Ensure availability of appropriately skilled
qualified and experienced staff
Cost of recruiting new staff is high
Loss of continuity when staff leave is very
expensive
Keep turnover low
Responsibilities of HR department
recruitment, selection and promotion
staff training and development;
remuneration
Appraisal
Dismissal and redundancy
grievance procedures
health and safety
HR Process

Acquisition

Fairness Training

Health and
Appraisal
Safety

Labor
Compensation
Relations
Recruiter

Labor
relations EEO
specialist Human coordinator
Resource
Specialties
Training Job
specialist analyst

Compensation
manager
Recruitment and selection
Recruitment: soliciting applications
■ Can be outsourced
■ Advertising and initial screening
Selection: selecting the applicants to
whom offers will be made
■ A series of one-to-one interviews
■ Interview by a panel
■ References
■ Psychometric tests (ability, aptitude,
personality tests)
Recruitment and Selection
Selection Techniques
• One to one interviews
– Can be in depth
– Not easy to demonstrate the compliance of
equal rights legislation
• Interview with panel
– Public sector
– Favor candidates who are smooth talkers
– Prevents nepotism and corruption
Recruitment and Selection
Selection Techniques
• Assessment of references
– Legislation to provide reference
– Legal dangers – used less
• Psychometric tests
– Ability tests – verbal or numerical skills
– Aptitude test – potential to learn skills
– Personality tests – value of this not clear
Recruitment and Selection
Selection Techniques
• Situational assessment
– Military officers and multinational companies to
recruit new graduates
– Situational questions in interviews are more
valuable
• Task assessment
– Not all the skills can be tested in one or more
tasks
• Nepotism – Choosing family members
• Cronyism – Choosing friends or former
colleagues
Reliability and Validity
• Reliability: the degree to which the tool
measures the same thing each time it is
used.
– Scores should be close for the same person
taking the same test over time.
• Validity: Does the test measure what it is
supposed to measure?
– Example: does a physical ability test really
predict the job performance of a firefighter?
• Managers have an ethical and legal duty to
develop good selection tools.
Staff Training And Development
• UK criticized for lack of interest in staff
training
• In USA – professionals paid to get part
time degree – promotions on further
qualification
• Staff training and development is more
important in high tech companies – but
also, first thing to be cut when budget is
short
Training: teach organizational members how to
perform current jobs.
 Help worker’s acquire skills to perform effectively.

Development: build worker’s skills to enable


them to take on new duties.

◦ Training used more often at lower levels of


firm, development is common with managers.
◦ A Needs Assessment is required
Types of development
◦ Varied Work Experiences: Top managers must
build expertise in many areas.
 Workers identified as possible top managers
given many different tasks.
◦ Formal Education: tuition reimbursement is
common for managers taking classes for MBA
or similar.
 Long-distance learning can also be used to reduce
travel.
Remuneration Policies
‘remuneration’ may includes things, such
as private health insurance or a company
car in addition to salary
One of the major sources of discord and
staff dissatisfaction in organisations is
perceived disparities in remuneration
■ Fixed scales (changing market conditions?)
■ Fixed salaries individually within broad
guidelines
Job Evaluation
The doctrine of ‘equal pay for work of
equal value’
Used for comparing the relative worth of
jobs and allocating jobs to specific grades
■ Also helpful in mergers and acquisitions
As the basis for flatter, broad-banded pay
structures
■ How to reward highly competent designers?
Analytical Job Evaluation
Assess each job on the basis of the
different elements that are involved
E.g. for linguistic skills
•  Gain Sharing - teams of employees share
in gains from improvements in
productivity or cost saving measures
• Profit Sharing -A percentage of profits

earned by a department or company

Stock Ownership
◦ Options
◦ Employee Stock Ownership Plans
Appraisal Schemes
Peter Drucker’s Management by Objectives
(MBO)
■ Can be difficult to quantify every objective
■ Quantifiable objectives can distort behaviour
(cut length of waiting lists of patients?)
■ Tends to emphasise short-term objectives at
the expense of long-term strategic objectives.
What is the answer?
■ Empowerment!
Empowerment
Sharing information, rewards, and power
with employees so that they can take
initiative and make decisions to solve
problems and improve service and
performance
Giving employees skills, resources,
authority, opportunity, motivation, as well
holding them responsible and accountable
for outcomes of their actions, will
contribute to their competence and
satisfaction
Appraisals and Promotion
Should there be a link?
■ Too close a link may mean that they are not
conducted with the openness and frankness
that is essential if the participants are to get
the best out of them;
■ if there is no link then appraisees may regard
the process as a farce

360 degree appraisal


Redundancy, dismissal and grievance
Dismissal
■ lack of capability, misconduct etc.
■ It has to fair otherwise employees can sue
■ Dismissals are automatically considered to be
unfair unless the statutory dismissal procedure
has been followed.
Redundancy
■ Services no longer required
Redundancy and dismissal
• Dismissal Process:
– Written statement of why dismissal is being
considered
– Arrange a meeting where both sides can state
their case
– Following the meeting the employee is
informed of the decision.
– Right of appeal to more senior manager
• Constructive dismissal - due to employer’s
behaviour
• Takeovers and outsourcing
Redundancy
• Redundancy
– Employer no longer requires people to do a
particular category of job (or fewer people)
– Employees entitled to compensation (subject
to a legal minimum)
– Often employer seeks to reduce the number of
employees in a particular category
• Traditionally selection was last-in, first-out (is this
reasonable?)
• Often voluntary redundancy is offered (do you see
any issues with this?)
Human Resource Planning
Plan for existing projects
Sales forecasts
In practice for project based companies
the it does not work very well
Reference
Frank Bott - Professional Issues in
Information Technology – Chapter 9

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