MG4031 week 8 lecture 1

HRM: History and Activities

• HRM is a specialist function performed by managers to create and implement policies and strategies related to attracting, selecting, compensating, and caring for employees.
• The Civil Service in Ireland first introduced personnel management after WWI, and the private sector followed in 1937 with the establishment of the Irish branch of the Institute of Labour Management.
• Before the 1930s, two key HRM traditions existed:
  • Welfarism: Voluntary initiatives in companies improved factory workers' conditions (pay, living).
  • Taylorism: Focus on efficiency and profitability, leading to more systematic management approaches.
• By the mid-1900s, HRM evolved with:
  • Bureaucracy: Increased personnel activities (procedures, employment, pay, training) became formalized.
  • Consensus Negotiation: Union prominence led to more emphasis on collective bargaining from the mid-1940s.
• In the 1970s, pay bargaining centralized again, but unions focused on working conditions and productivity. HRM professionals needed expertise in employment law.
• The 1980s saw HRM replacing personnel management as organizations integrated HR considerations into their strategies. Human capital became a core value—a firm’s workforce needs to add value.
• Individual performance needs to matter now more than ever before, and human capital investment cannot be easily replicated.

HR Planning

• HR Planning anticipates future workforce needs to meet business demands, with these key goals:
  • Ensuring enough quality and quantity of employees required for the business.
  • Making best use of employees.
  • Managing surplus or shortage of employees.
• HR planning must be integrated into the company's strategy and plans; it should be important to senior management; and there should be a central unit in large organizations.
• HR plans have defined time spans and include accurate information.
• Stages in HR planning:
  • Demand Analysis: Estimate the quantity and quality of HR needed to meet the firm's objectives using:
    • Managerial estimates (subjective).
    • Statistical techniques (regression, econometric models).
    • Work Study (systematic analysis).
  • Supply Analysis: Estimate the quantity and quality of HR available:
    • Internal and external labor markets.
    • Labour Turnover Index (employee resignations).
    • Labour Stability Index (employee retention).
    • External factors (economic, industry, etc.).

Recruitment and Selection

• Recruitment: Attracting potential candidates for a job opening. Internal recruitment (transfers, promotions) reduces costs but limits the pool of talent. External recruitment (advertisements, agencies) brings in a more diverse pool.
• Job Description: Outlines tasks and responsibilities of the job.
• Person Specification: Details skills and experience necessary to perform the job. It distinguishes between required and desirable characteristics.
• Selection: Assessing candidates to find suitable ones: interviews (one-on-one, panel, group); reference checks; tests (aptitude, proficiency, personality). Selection methods need to be fair and objective.
• Common Interviewing Errors: Inadequate preparation, premature judgment, absence of structure, interviewer dominance, lack of rapport, halo effect, and structural rigidity.
• Selection Tests: Intelligence tests, aptitude tests, proficiency tests, personality tests.