Chapter 6 - Managing Human Resources

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6.1 Describe the key components of the HRM process and what influences it

Functions of HRM Process:
Recruit, select, train, motivate, keep; ensure that competent employees are identified
and selected
provide employees with up-to-date knowledge and skills to do with their jobs
HRM and the Law - managers not biased in selection process
fair and equitable, non-discriminatory, safe and healthy, protect individual needs
FWA 2009, Disability Discrimination Act 1992, Sex Discrimination Act 1984, Equal
Opportunity for Women in the Workplace Act 1999


6.2 Discuss the tasks associated with identifying and selecting competent employees

Employment Planning
process by which managers ensure they have the right numbers and kinds of people
in the right places at the right time
organisations missions and goals are translated into HR terms to ensure people able
to fulfil the needs associated with them
Stages:
1. Assess current and future HR needs
Human Resource Inventory - report reviewing status of the organisations
current human resources (name, education, training, skills, languages spoken,
capabilities etc)
Job Analysis - assessment of the skills, knowledge, attitudes needed to
perform job
Job Description - written statement that describes role
Job Specification - written statement of the minimum qualifications a person
must possess to perform a given job successfully

2. Develop plan to meet needs
Future HR needs are determined by organisations strategic decision.
Managers can estimate future revenues and then predict number and mix of
people needed (supply/demand)
After managers assessed both current capabilities and future needs, can
estimate where the demand for human resources meets supply

Recruitment and Selection
Recruitment is locating, identifying and attracting capable applicants
Sources:
Internal S: low cost, build employee morale, candidates familiar with
organisation. L: limited supply, may not increase proportion of projected group
employees, diversity?
Advertisements S: wide distribution, large pool. L: many unqualified
candidates
Employee referrals S: knowledge about organisation, strong candidates
because good referral. L: diversity?
School Placement S: large, centralised body of candidates. L: limited to entry-
level position
Temporary Help Services S: fill temporary needs L: short term, expensive

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Selection Process
screening job applicants to ensure that the most appropriate candidates are
chosen
Testing selection Devices:
Reliability (consistency) - degree to which selection device measures same
thing consistently)
Validity (relevance) - proven relationship between selection device and some
relevant criterion
Performance-Simulation Tests
based on actual job behaviours (sampling)
S: one of the best was to determine how person will perform (better
predictor)
L: time consuming
Interviews
most universal
S: can be reliable and valid if well structured and standardised, face-to-face
L: bias? type of questions, not good predictor of future performance

Retaining New Employees - Realistic Job Preview (RJP)
providing only details of positive aspects of job may lead to satisfaction problems
later
include both positive and negative aspects about the job and company, will be better
able to cope with the frustrating elements of the job


6.3 Explain how employees are provided with needed skills and knowledge

Orientation (Induction)
introducing new employee to job and organisation
Employee Training
learning experience that seeks a relatively permanent change in employees by
improving ability to perform on the job -> changing skills, knowledge, attitudes,
behaviour (ongoing process)

On the job
Job rotation - exposure to variety of tasks

Mentoring - working with experienced member of organisation, provides support
and encouragement

Off the job
Lectures - convey specific technical, interpersonal, problem-solving skills

Films - media to explicitly demonstrate technical skills

Simulation exercises - learning a job by actually performing it






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6.4 Explain how organisations provide a safe working environment

Organisations have legal, moral and business obligation to provide safe and healthy
working environments e.g. Work Health Safety Act 2010 (Cth)
Safe and healthy workplace - identifying, eliminating, controlling hazards
Training programs
Workplace health and safety audits: equipment, handling practices
Consultation with employee groups, unions, consultants and government agencies
Effective monitoring of productivity, absenteeism, accident/injury rates and workers
compensation


6.5 Describe strategies for retaining competent, high-performing employees

Performance Management System - system that establishes performance standards that
are used to evaluate employee performance (quality). Methods:
Written essay
Critical incidents
Graphic rating scales
360-degree appraisal
MBO

If employees performance not put to standard then:
Discipline - actions taken by manager to enforce an organisations standards and
regulations
verbal and written warnings
suspension
termination
Employee Counselling - process designed to help employees overcome
performance-related problems

Compensation
important for quality of employees, attracting and retaining them
Compensation administration - process of determining cost-effective pay structure
that will attract and retain employees, provide an incentive for them to work hard and
ensure that pay levels will be perceived as fair
Skill-based Pay - rewards employees for the job skills they demonstrate
Variable Pay - pay system where individuals compensation is contingent on
performance
Employee benefits - non financial rewards designed to enrich employees e.g. close
location, retirement and health insurance premiums










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6.6 Discuss contemporary issues in managing human resources

Globalisation
competing global basis brings new challenges
International human resource management (IHRM). Address complexity that results
for HR

Diversity
consider non-traditional recruitment methods
avoid discrimination in selection
increase diversity awareness with current staff
sensitivity training

Downsizing
planned elimination of jobs in an organisation
Layoff-survivor sickness (survivor syndrome) - set of attitudes, perceptions and
behaviours of employees who survive layoffs. People more stressed, aware that it
exists + counselling. Options:
reduced workweeks, job sharing, transfers, redundancies, attrition (not replacing
staff who retire or resign), firing
managing downsizing
Communicate openly and honestly
Follow any laws regulating severance pay or benefits
Provide support/ counselling for surviving employees
Boost morale: offer individualised reassurance, communicate one-on-one

Career Development
career - sequence of work positions held by a person during lifetime
idea of increased personal responsibility for career is called boundaryless career
Career planning - process of matching career goals and individual capabilities with
opportunities for achieving those goals