MG4031 Management Principles - HR Chapter 7

MG4031 Management Principles - Managing Human Resources

• Reading: Chapter 7, Modern Management, pages 194-224.

Learning Objectives

• Understand the critical role of Human Resources (HR) in organizational success.
• Understand the core activities within the HR function.
• Be familiar with the stages in the HR planning process.
• Distinguish between recruitment and selection processes.
• Summarize common performance appraisal approaches.
• Understand reward management.
• Recognize the importance of training and development.
• Appreciate the context of employee relations in Ireland.

Definition of HRM

• HRM is the process of developing and executing policies and strategies related to staffing.
• A preferred approach to workforce management.
• Can be viewed as a specialist activity of the HR function or as a generalist responsibility for any manager who has staff reporting to them.

Historical Development of the HR Function in Ireland

• Key phases include early 1900s, 1970s (legal tradition), and 1980s (strategic emphasis).

Activity Areas in Human Resource Management

• Human resource planning
• Recruitment
• Selection
• Pay and benefits
• Performance appraisal
• Training and development

The Human Resource Planning Process

• Demand analysis: Estimating the quantity and quality of HR needed to meet organizational objectives.
• Techniques include managerial estimates, statistics, and work study.
• Supply analysis: Estimating the quantity and quality of available labor.
• Estimating Deficits/Surpluses: Comparing demand and supply to identify a match, deficit, or surplus.
• Prepare Action Plan: Cover recruitment, selection, training, development and promotions.

Recruitment

• Recruitment is attracting potential candidates for open positions.
• Key choice: internal or external recruitment.
• Two key stages:
• Background stage (job analysis, job description, person specification).
• Actual recruitment stage (internal transfers, promotions, external sources, application forms).

Selection

• Selection begins after receiving applications.
• Selection Tools:
• Interviews (one-to-one, panel, group) to assess candidate suitability.
• Reference checks to verify candidate information.
• Selection tests assess candidate's intelligence, aptitude, and personality.

Pay and Benefits

• An organization's reward system demonstrates its philosophy and approach to workforce management.
• Employee rewards are categorized into intrinsic (job autonomy, responsibility) and extrinsic (pay, job security, benefits) rewards.

Key Factors Influencing Satisfaction with Rewards

• Satisfaction depends on the amount received compared to perceived worth.
• Employee comparisons with others.
• Impact of intrinsic and extrinsic rewards on job satisfaction.
• Individual differences in reward preferences.
• Some extrinsic rewards lead to other rewards.

Payment Systems

• Common approaches include flat rates, flat rates with bonuses, profit sharing, and piecework.

Performance Appraisal

• A key function of HR management.
• Periodically assessing employee performance.
• Reviews past performance to identify strengths and weaknesses.
• Evaluates future potential and identifies development opportunities.

Appraisal Techniques

• Ranking: Best to worst based on specified characteristics.
• Paired Comparison: Comparing individuals two at a time.
• Critical Incident: Documenting specific good or bad performance incidents.
• Free-form/narrative: General evaluation without a specific format.

Training and Development

• Distinction between training (modifying skills based on identified gaps) and development (ongoing growth and conscious learning).
• Training and development process: formulating a plan, identifying training needs, planning and conducting training, evaluating training.

Employment Relations

• The institutional framework for labor relations.
• Key parties include employers, employee organizations, and the state.
• Practices vary both between and within countries.

Explore the critical role of Human Resources in organizational success with this Chapter 7 quiz from Modern Management. Dive into HR planning, recruitment, performance appraisal, and employee relations through targeted questions. This quiz helps solidify your understanding of essential HR functions and their impact in Ireland.