MG4031 Managing Human Resources PDF

MG4031 Management Principles Managing Human Resources Reading: Chapter 7, Modern Management, pages 194- 224  Learning Objectives To understand the centrality of human resources (HR) to overall organisational success To understand the core...

MG4031 Management Principles Managing Human Resources Reading: Chapter 7, Modern Management, pages 194- 224  Learning Objectives To understand the centrality of human resources (HR) to overall organisational success To understand the core activity areas of the HR function To be aware of the stages in the HR planning process To be able to distinguish between recruitment and selection Learning Objectives To be able to summarise the common approaches to performance appraisal To understand reward management To realise the importance of training and development To appreciate the context of employee relations in Ireland  Definition HRM can be thought of as the process of devising & executing policies & strategies in relation to the employment of staff The preferred approach to workforce management May be interpreted as the “specialist activity” of those who work in the human resource function of the organisation or as a ”generalist responsibility” which any manager has based on the fact that they have people reporting into them  Historical Development of the HR Function Key phases of the development of the Human Resource Function in Ireland Early 1970s 1980s 1900s Legal Strategic Mid Tradition Emphasis 1900s  Activity Areas in Human Resource Management 1. Human resource planning 2. Recruitment 3. Selection 4. Pay and benefits 5. Performance appraisal 6. Training and development  1. The Human Resource Planning Process 1. Demand analysis - estimation of quality and quantity of HR needed to meet objectives of the organisation Techniques used include - managerial estimates, statistics and work study 2. Supply Analysis - estimation of quality and quantity of available labour 3. Estimating Deficits \ Surpluses - comparison of the results will show a match, deficit or surplus 4. Prepare Action Plan - to cover recruitment, selection, training and development and promotions  2. Recruitment Recruitment is concerned with attracting a group of potential candidates to apply for a vacancy that the organisation has available The key choice in recruitment is whether to recruit internally or externally Two key stages identified in the recruitment process: (1) background stage and (2) actual recruitment stage  2. Recruitment Background stage - conducting a job analysis which comprises of a job description and a person specification Job description is a statement of the main tasks and responsibilities Person specification details the skills, qualifications, knowledge and experience the individual should have Actual recruitment stage – task of attracting a pool of potential candidates Internal - transfers, promotions or demotions External - schools, ITs, Universities, agencies, CV and standard application form  3. Selection Begins when application forms have been received Selection Tools - 1. Interviews (one to one, panel, group) to gain information about candidate to see fit with job to ensure applicant has information about job to leave applicant with impression of fair treatment 2. Reference Checks  Selection Tests Different tests available, all of which are designed to add incremental validity to the selection decision 1. Intelligence - mental capacity, not a good indicator of job performance 2. Aptitude Tests - predict areas of special aptitude, not a good indicator of job performance 3. Personality Tests – measures of personality (e.g., extroversion), exhibit low reliability and validity 4. Pay and Benefits An organisation’s reward system is a powerful indicator of its philosophy and approach to workforce management Employee rewards are usually classified under two broad headings: 1. Intrinsic rewards - spring from the job itself and include autonomy, responsibility and challenge 2. Extrinsic rewards - more tangible in nature and include pay, job security and working conditions Key Factors Influencing Satisfaction with Rewards 1. Depends on the amount received versus what individual feels s\he deserves 2. Depends on comparisons with others 3. Employees satisfaction with intrinsic and extrinsic rewards effects job satisfaction 4. People differ in the rewards they desire and value 5. Many extrinsic rewards satisfy because they lead to other rewards  Payment Systems Various approaches favored in different circumstances with the most common being: 1. Flat rate only - fixed hourly, weekly, monthly rate 2. Flat rate + individual or group bonus 3. Profit Sharing - employees get a bonus related to company performance for example company shares 4. Piecework-aid for specific work completed and payment based solely on performance  5. Performance Appraisal A key function of human resource management A periodic assessment of employee’s performance Review past performance Examine future potential  Appraisal techniques Method Characteristics Strengths Weaknesses Ranking Best to worst on specific Simple, facilitates Subjective, extent of characteristics or job comparisons difference not performance specified Paired Compare 2 at a time with Decision making ease, Same as above, comparison result of overall ranking simple difficult with large numbers Critical Observed incidents of Related to job; more Needs good incident good/bad performance objective observation skills; form basis of performance time consuming assessment Free-form / General evaluation with no Flexible Subjective; narrative specific format comparison difficulty  6. Training and Development There is a clear distinction between the concepts Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning experiences i.e., the retrospective correcting of a skills gap which has been identified Development is a broader concept referring to general growth of an individuals skilled and abilities through conscious and unconscious learning i.e., referring to future potential and requirements in the talent pool Training and Development Process 1. Formulating a training plan 2. Identifying training needs 3. Planning and conducting the training 4. Evaluating training and development activities  The Employment Relations Context Employment Relations refers to the institutional provision in place for managing the relationship between the parties to the labour process The Parties: Employers, Trade Unions, Employer Associations and State Institutions Provision differs substantially across countries and may differ significantly within countries over time Thank you