MG4031 Week 8 Lecture 1

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@Business Student123_

Study Notes

HRM is a specialist function performed by managers, responsible for attracting, selecting, rewarding, employing, and managing people within an organization.
Personnel management, first introduced in Ireland's Civil Service after WWI, later appeared in the private sector, with the Irish branch of the Institute of Labour Management (predecessor to CIPD).
Before the 1930s, HRM included two key traditions:
- Welfarism: Voluntary initiatives by companies to improve worker conditions (pay, living, etc.).
- Taylorism: A focus on efficiency and profit, leading to a more systematic approach to management.
In the mid-1900s, HRM evolved with these traditions:
- Bureaucracy: Formal procedures and processes for personnel activities (employment, pay, welfare, etc.) emerged as organizations grew.
- Consensus Negotiation: Increased union influence after the 1946 emergency powers act, emphasized collective bargaining.
The 1970s saw centralized pay bargaining, with unions shifting focus to working conditions and productivity.
HRM in the 1980s: Personnel managers needed legal expertise; organizations adopted HRM considerations in strategic decisions
HRM now considers:
- Workforce value addition to the product.
- Individual performance importance.
- Firm's human capital investment as difficult to imitate.

HR planning anticipates future business needs and ensures the right quantity and quality of employees.
Major objectives include:
- Ensuring the organisation can find and retain the required HR.
- Maximizing the use of human resources.
- Managing potential employee surpluses or deficits.
HR planning principles include integration with overall strategy, senior management emphasis, central units for large firms, defined time spans and scope, and data accuracy.
Stages of HR planning:
- Demand Analysis: Assessing workforce needs based on the organization's strategy, technology, and current workforce characteristics. Managerial estimates and statistical techniques (regression, econometrics, work study) are used.
- Supply Analysis: Evaluating the availability of the required employees. Internal and external labour markets are considered. Labour turnover and stability indices are used. External factors (population, government policies, competition) are also important.

Recruitment attracts potential candidates to apply for open positions. Internal recruitment (transfers, promotions) has the advantage of lower costs but limits the pool of talent.
Job description details the job's tasks and responsibilities. Person specification outlines the required skills and qualifications.
Selection uses methods like interviews, references, biographical data, aptitude tests, and psychological tests; methods may involve one-on-one, panel, or group interviews.
Selection aims: Ensuring candidate fit with jobs, knowledge about the vacancy and organization, and a positive candidate experience.
Common interview errors: Inadequate preparation, premature judgement and interview structure absence.
Selection tests: Intelligence, Aptitude, Proficiency tests, Personality tests.

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