Lecture 1: Introducing HRM PDF

Lecture 1:Introducing HRM L.O : Define the term Human Resource Management(HRM) Human Resource Management is the strategic and integrated approach taken by an organisation to the management of its most valued assets, namely its people Strategic and Integrated Approach: HRM is not just a collec...

Lecture 1:Introducing HRM L.O : Define the term Human Resource Management(HRM) Human Resource Management is the strategic and integrated approach taken by an organisation to the management of its most valued assets, namely its people Strategic and Integrated Approach: HRM is not just a collection of administrative tasks, but a strategic function that aligns with the organization's overall goals and objectives. HRM policies and practices must be integrated and connected to be effective. People as the Most Valued Asset: Employees are what differentiate one organization from another. Their skills, knowledge, and commitment are crucial to an organization's success. (Quote: "People are what differentiate one organization from another, right? And it is much more difficult to copy what an organization does with its people than to just copy, you know? Well, they use this amount of money. If we get this amount of money, we can do the same. Or they use this type of technology. If we get that technology, we can do the same.") L.O: Describe the main activities of the Human Resource Management function. Recruitment and Selection Designing job roles and requirements Advertising job openings Interviewing and assessing candidates Deciding on the best fit for the organization Onboarding and Training Introducing new hires to the organization Providing training on systems, processes, and job-specific skills Performance Management Evaluating employee performance Providing feedback and development opportunities Linking performance to rewards and recognition Talent Management Identifying and developing high-potential employees Succession planning and career development Employee Relations Managing employee grievances and conflicts Negotiating with trade unions Ensuring compliance with labor laws and regulations HR Planning Aligning HR strategies with the organization's overall goals Forecasting staffing needs and skills requirements Developing plans to acquire, develop, and retain the right people The Human Element in Workforce Management Managing people is more complex than managing machines - humans have different motivations, needs, and capabilities Hawthorne studies found social and psychological factors impact worker productivity and satisfaction beyond just physical conditions Repetitive, monotonous work can lead to worker fatigue, boredom, and dissatisfaction, negatively impacting productivity The Power Dynamics of Employment Workers have limited individual power to influence issues like low pay, long hours, and poor conditions Trade unions historically gave workers a collective voice to address grievances "Them vs. us" dynamic between management and workers was a key focus of employment relationships The Shift Towards Strategic Human Resource Management Organizations increasingly view employees as valuable, rare, and difficult to imitate resources that can contribute to competitive advantage Aligning HR practices with organizational goals and investing in skilled, creative employees is key Some organizations still view employees as a cost to be minimized rather than an asset to be developed Organization Workforce Management Approach Google Comfortable work environment, investing in employees as strategic resources Foxconn Repetitive, basic working conditions, minimizing labor costs McDonald's Focusing on low-cost labor, viewing employees as a cost to be minimise Evolution of HRM as an Organizational Function Industrial Revolution in England (Late 19th Century) Working conditions of men, women, and children were dreadful Some enlightened employers, often Quakers, wanted to improve working conditions Provided workplace and family amenities for workers (e.g., lunch rooms, medical care, company magazines, housing) Changes were driven by not just a welfare agenda, but also a drive to improve productivity F.W. Taylor's Scientific Management Movement  Systematic approach to the design of jobs and employment and pay systems Allied to these were tight control of workers Practices were often met with resistance from workers and their union representatives Is Taylorism still relevant today? Elton Mayo and the Hawthorne Experiments Highlighted an emphasis on: Better understanding of group work Importance of working conditions as a means of motivating employees All areas that are covered by the work undertaken by today's HR function The Rise of HRM (1960s & 1970s) High levels of trade unions and strong collective power Focus on the employment relationship as 'them and us' People management revolved around Industrial Relations Role of Personnel Manager – negotiate with TU, focus on control and cost of workers 1960s and 1970s Introduction of a large body of legislation which provided rights for employees 1980s Recession High unemployment levels and significant competition in the marketplace led to a focus on productivity and 'excellence' associated with leading-edge companies 1990s Shift from traditional manufacturing industries to growth in the service sector Move towards a 24/7 society and an introduction of non-standard working hours Changing demographics of workforce These Changes Led To: New ways of thinking about the management of workers Managers having more control over the employment relationship Focusing on individualism Employees as a source of competitive advantage New theoretical view of people management - Human Resource Management Emerged in the 1980s from the US Variations of how HRM is viewed, many similarities with Personnel Management Barney's VRIO Model (1991) An organization's employees are its single most important strategic differentiator They are:  Valuable Rare Inimitable (not easily copied) Organised The focus on HR as a strategic contributor to the organization is increasing Strategic HRM The integration between HRM and business strategy Contributes to the effective management of human resources and an improvement in organisational performance The linkage between HRM policies and practices and the strategic objectives of the organization Strategic HRM - macro level approach within the context of organizational performance HRM operates at the micro level Organizational Distinctiveness: Every organization is unique, even those producing similar products for similar markets. This distinctiveness is created by various internal factors. Internal Factors Affecting HRM: a) Size and Structure: Smaller organizations tend to have fewer formal procedures and flatter hierarchies. b) Sector: Whether it's private, public, or voluntary can influence HRM approach. c) Organizational Lifecycle: The stage of the organization (growth, maturity, decline) impacts HRM. d) Financial Health: Often linked to lifecycle and overall performance/profitability. e) Values and Ideology of Senior Management: Their beliefs about people management affect various aspects like communication, rewards, and equality. f) Organizational Culture: "The way we do things around here" influences HRM practices. g) Workforce Characteristics: Education, qualifications, skills, demographics, and aspirations of employees across different job types. h) Established 'Custom and Practice':  Embedded work structures and processes that can be difficult to change. External Factors: Organizations also operate in an external context, which presents opportunities and constraints. S - Social: The changing social norms and demographics might affect workforce characteristics. T - Technological: The increasing pace of technological advancements such as machine- learning, robotics and big data not only influences what the business produces for the market but equally how it produces it. E.g. automation of routine tasks allows for individuals to focus on the important aspects of business. Data acquisition to help monitor productivity) E - Economic: The economic forces of globalization and consumer behaviour, which impact the organization as their competitors launch new products or services, increase or decrease prices, find new routes to market or enter new markets. E - Environmental: environmental factors could be part of the "ethical expectations”, adhering to sustainable business practices P - Political: The local and national policies which determine how the business can operate," which falls under political factors. 🏛 This also includes trade unions within the workforce L - Legal: Legislation and regulation: the local and national policies which determine how the business can operate, for example how it must manufacture its products to health and safety guidelines, or whether it must recognize trade unions. ⚖ E - Ethical: "Ethics: how the business must comply with corporate governance and how it responds to expected corporate and social responsibilities and its customers' ethical expectations of them. 3 ? > = < ; : 9 8 7 6 5 4 key features of contemporary HRM @ D C B A 1. Strategic Integration: HRM is explicitly linked to the organization's corporate strategy. HRM is included in the creation of business strategy, aligning workforce strategies to support it. 2. Commitment over Compliance: HRM focuses on fostering employee commitment rather than just compliance. The goal is to obtain employee commitment through an integrated approach to HR policies. 3. Integrated HR Policies: HRM uses an integrated approach to HR policies in areas like rewards, selection, training, and appraisal. 4. Shared Responsibility: HRM is not just the domain of HR specialists but is also owned by line managers. This helps foster integration between HR and the rest of the organization. 5. Evidence-Based Approach:  The design of HR practices is guided by business information, scientific evidence, and critical thinking. HR outcomes are measured through appropriate business metrics. Companies decide on their HRM strategy through a strategic approach that aligns with their overall business strategy. 1. Strategic Integration: The image states that "HRM is explicitly linked with corporate strategy." This means that companies align their HRM strategy with their overall business goals and objectives. EJ I H G F 2. Business Strategy Alignment: HRM is included in the creation of business strategy, and therefore workforce strategies are designed to support it. This suggests a two-way relationship between HRM and business strategy. 3. Unitarist Frame of Reference: a unitarist perspective where both managers and employees have a common purpose and the organization is integrated and harmonious, acting as 'one big happy family'." This philosophy influences HRM strategy decisions. 4. Soft HRM Approach: Companies may choose a 'soft' HRM approach, which involves treating employees as valued assets and a source of competitive advantage, rather than simply using people as another resource. 5. Focus on Employee Commitment: Employee commitment is obtained through an integrated approach to HR policies in the areas of rewards, selection, training and appraisal. This suggests that companies design their HRM strategy to foster employee commitment. 6. Line Manager Involvement: HRM is described as "not just the domain of specialists in the HR function; rather HRM is owned by line managers as a means of fostering integration." Operationalising Human Resource Management The key role of the HRM function is to enable the organisation to achieve its strategic objectives and to positively impact organisational effectiveness by dealing effectively with all aspects of the employment relationship. HRM strategies are plans that address and solve fundamental strategic issues related to the management of human resources in an organisation HRM strategy is used to create a set of HRM policies designed to achieve the organisation’s strategic goals HRM policies are then translated into specific HRM practices again aimed at meeting the strategic goals Employee Lifecycle and Linking HR Practices to Organizational Outcomes. The Employee Lifecycle, which is divided into four main stages: 1. Attract & select E J I H G F 2. Manage & develop K M L 3. Reward & retain N S R Q P O 4. Separate T \ [ Z Y X W V U Each stage has specific HR practices associated with it. For example: Attract & select: employer branding, recruitment strategy, selection techniques Manage & develop: performance management, motivation, learning & development Reward & retain: pay & benefits, recognition, talent management Separate: exit interviews, retirement, redundancy HR policy should guide an HR practice that creates an organizational behaviour leading to a desired organizational outcome. @DIt provides an example of how an HR policy around C B A ensuring a diverse workforce can lead to creative and innovative behaviours, which in turn drive innovations as the organizational outcome. HR Policy: Ensure a diverse workforce Sample HR Practices: 1. Recruit a diverse workforce 2. Ensure diversity on interview panels 3. Ensure equal pay across gender 4. Measure diversity across roles Organizational Capability: Creativity and innovative behaviours Organizational Outcome: Innovations ] i h g f e d c b à _ ^ The Role of the HR Function 1. HR is typically positioned at the same level in the organizational chart as other key functions like finance and marketing. This shows the importance of HR as a strategic business partner. 2. The size and needs of the organization impact how the HR function is configured. In a small startup, the founder may handle HR themselves, while in a large MNC, the HR function will be much more structured and led by an HR Director. j o n m l k 3. The HR philosophy of the CEO/owner determines the level of involvement and influence HR has on the business strategy. Some organizations have a more separated "fit" model, while others have a more integrated "dialogue" model where HR helps shape the strategy. p q 4. HR can be organized around specialist roles (e.g. recruitment, compensation) or generalist roles (HR business partners working with specific employee groups). r y x w v u t s 5. Some organizations separate the HR function into operational and strategic teams - the operational team handles day-to-day tasks, while the strategic team focuses on aligning HR with the business. 6. Line managers play a crucial role in implementing and interpreting HR practices locally. HR provides support and guidance to ensure successful delivery of initiatives. z Ž Œ ‹ Š ‰̂ ‡ † … „ ƒ ‚ € ~ } | { The important role that line managers play when it comes to HR practices. z Ž Œ ‹ Š ‰̂ ‡ † … „ ƒ ‚ € ~ } | { 1. Line managers are the ones who work most closely with employees on a day-to-day basis. This makes them crucial in the implementation and interpretation of HR practices. 2. Increasingly, line managers are being included earlier in the design and development of HR practices. This helps ensure successful and sustainable implementation at the local level. @ D C B A 3. This partnership approach between HR and line managers is central to achieving positive outcomes for both the employees and the organization. 4. However, this increased involvement of line managers also requires higher levels of support and guidance from the HR function. Line managers are often already very busy with the technical aspects of their roles. The Theoretical basis of HRM 1. The Michigan Model, also known as the 'fit' or 'contingency' model, was developed in the 1980s by researchers at the Michigan Business School, including Fombrun, Tichy, and Devanna. The key features of this model are: 1. Alignment between HR strategy and business strategy (vertical integration or external alignment) The model stresses the importance of aligning HR policies and practices with the organization's overall business strategy. 2. Consistency among HR practices (horizontal integration or internal alignment)  The different elements of the HR system, such as selection, performance management, rewards, and development, should be consistent and mutually reinforcing. Fit can be achieved with a relatively straightforward suite of HR practices: Selection of the most suitable individuals Managing performance Appraising performance and providing feedback Providing rewards for appropriate performance Developing employees to meet the needs of the business 2.The 'Universal' Approach to HRM (also known as the Harvard model): Recognizes the influence of stakeholders and situational factors on HR policies and practices Focuses on how HR practices lead to changes in organizational behaviors or capabilities, which then impact organizational outcomes 3.The Guest Model, developed by David Guest in the UK, aims to balance the 'fit' and 'universal' approaches to HRM. It identifies four key principles: Strategic integration: HR policies must align with business strategy, and HRM aspects should be consistent and mutually supportive. High commitment: Employees are expected to identify closely with the organization's interests. Flexibility: This involves the ability and willingness of employees to demonstrate flexibility and adaptability to change as business demands evolve High quality: The quality of management and staff is crucial in achieving high performance. Strategic HRM contingency approach Proponents of this view believe there is no universal answer to the choice of HRM polices and practices. The choice is contingent on the context of the organisation and its business strategy (external fit). Each organisation can choose a different set of polices and practices, depending on their organisational specific context and strategy. The adoption of a contingency HRM strategy is then associated with optimised organisational performance, where the effectiveness of individual HR practices is contingent on firm specific strategy. The most effective way to manage people will depend on issues specific to the organisation, such as industry sector, organisational size and economic conditions. Strategic HRM universalist approach Focuses on the existence of one set of HRM ‘best practices’ aimed at creating and enhancing high levels of employee commitment and performance.  These will result in superior levels of organizational performance, regardless of the context in which the organisation operates and the competitive strategy of the firm. Pfeffer’s (1998) work identified seven practices which result in higher performance: Recruiting the right people High wages clearly linked to organisational performance Employment security Information sharing Investment in training and skill development Self managed teams and decentralised decision making Reduced status differentials. Workforce Planning and Talent Management Workforce Planning Definition: Workforce planning considering and developing strategies to ensure that the right number of people with the necessary skills are employed in the right place at the right time to help deliver an organization's short- and long-term objectives. 1. Future Focus: The HR function (which is the most valuable and volatile) is essentially trying to see into the future to make decisions in the present day. It's like having a crystal ball for human resources! ‘ ” “ ’ 2. Challenges: Predicting the future is difficult due to external factors like economic, political, and technological changes that can dramatically impact the business landscape – ži.e many business suffered when covid hit œ › š ™ ˜ — 3. Importance: Despite the difficulties, HR shouldn't ignore the future. A carefully designed workforce plan can make a significant contribution to the strategic development of the firm. K M L 4. Strategic Aspect: There's a growing demand on the HR function to plan, predict, develop, and adjust staffing needs to achieve organizational goals both now and for the future. This highlights the increasingly strategic focus of the HR function in contemporary organizations. ¤ ª © ¨ § ¦ ¥ Human resource planning cycle Workforce planning is an open-ended process. If the organization is still running, the HR function will be making workforce plans. It is represented in a circular diagram with these main stages: 1. Stocktaking ® ± ° L̄ 2. Forecasting ‘ ” “ ’ 3. Develop action plans ² º ¹̧ · ¶ µ ³́ 4. Implementation » ¼  5. Assess and adjust plans if required. Let's look at each stage: Stocktaking: This is the first stage of the cycle; this involves looking at both external and internal factors. External Factors: These are examples of external factors that can impact an organization, such as: Economic climate Employment legislation Technological advancements These are things that are largely out of the organization's control, but can have a big influence on workforce planning. For instance, changes in employment laws around parental leave could require the organization to adjust its staffing plans. À Á Internal Factors: On the internal side, the organization examines factors like: Current staffing levels Workforce demographics (age, skills, contract status, etc.) Training history and provision Team dynamics and performance These are the organizational factors that the HR function can more directly control and shape. Understanding the current internal profile is crucial for making informed workforce plans. Forecasting: This stage requires predicting both the supply of labour and the demand for labour. It's described as arguably the most difficult aspect of workforce planning. Labor Supply Forecasting: the organization looks at its internal labour pool - assessing the skills, competencies, and potential of its current workforce. This helps identify any gaps or surpluses in the internal labour supply. Looking at the below: Net migration Individuals entering and leaving the workforce Economic forecasts Technological developments and shifts Actions of competing employers Government regulations and pressures The importance of "succession planning" - ensuring there are successors ready to step into key roles when employees leave. This internal labour supply analysis is crucial.  à Labor Demand Forecasting: Forecasting the demand for labour is all about predicting how many employees with what skills will be needed in the future. This ties directly to the organization's strategic objectives. An example - a growing marketing function may require more advertising specialists to be hired. Analysing the changing business needs helps determine the future labour demand. K M L The challenge here is that external factors like economic, political, and technological changes can dramatically impact these labour demands. Predicting the future is not easy ! Develop action plans, implementation and assessment Action planning Definition: The organisation makes a specific plan regarding how to best use the workforce to help meet the strategic goals of the firm. When there's an imbalance between the demand for and supply of labour, the organization faces either a labour shortage or surplus. 1. Labor Shortage: Options include recruitment, retraining, or redeployment as appropriate. Ä Æ Å 2. Labor Surplus: This typically requires the organization to seek redundancies or reduce the number of hours worked. Ç Í Ì Ë Ê É È It is important to emphasize whatever course of action is pursued, there will be significant consequences for the HR function, the workforce, and the employment relationship in general. So, careful planning is crucial! – ž œ › š ™ ˜ — Implementation and Assessment: Once the organization has made its decision, the plans are set in motion. 1. Constant Monitoring: Given the turbulent nature of the contemporary business environment, plans need to be constantly monitored and adjusted if required. It's not a set-it-and-forget-it process! » Ï Î 2. Learning from Experience: The final stage involves evaluating the action plans to determine the extent to which they have allowed the organization to achieve strategic goals. This assessment helps the organization learn from how the process was implemented, so successes can be repeated, and failures avoided in the future. ® ± ° L̄ An example: an organization decided to let go of a large chunk of its middle managers to reduce costs, they might later realize that this economic logic often comes at a cost. Losing middle managers can result in a disconnection between senior and junior managers, and roles and responsibilities may become unevenly allocated. This example shows how important it is to thoroughly assess the outcomes of workforce planning decisions. It's all about learning and improving for the future! Ð Õ Ô Ó Ò Ñ Key Takeaways: Workforce planning tries to predict the future and prepare the organization accordingly Predicting the future is difficult due to external factors like economic, political, and technological changes that can dramatically impact the business landscape Internal factors like staffing levels, workforce demographics, and training also shape workforce planning (Stocktaking) Stocktaking is the first step in the HR planning cycle, where the organization identifies internal and external factors impacting operations (Stocktaking) Forecasting involves predicting labour supply and demand to meet strategic goals, which is the most challenging aspect of workforce planning (Forecasting) Assessing internal labour supply includes evaluating current staff skills, competencies, and potential for succession planning (Forecasting) Examining external labour supply involves analysing labour market trends and availability of qualified candidates (Forecasting)  Action planning involves addressing labour surpluses or shortages through recruitment, retraining, redeployment, or redundancies (Develop Action Plans, Implementation and Assessment) Plans must be constantly monitored and adjusted as the business environment changes (Develop Action Plans, Implementation and Assessment) Talent Management (TM) During the stocktaking and forecasting process, organisations need to assess the capability requirements of their workforce using a ‘future lens’. To be successful and remain viable organisations must have the right employees with the right skills in the right roles now and in the future. Talent management has emerged as a key focus area for HR in recent years as organizations seek to leverage employee knowledge and skills for competitive advantage (From Workforce Planning to Talent Management) Definition: Talent management is the systematic and integrated approach taken within an organization to the attraction, recruitment, engagement and retention of those employees who have been identified to be of value to the strategic development of the firm. Creating a TM strategy starts with Workforce Planning- however TM itself is a more internal, focussed approach on creating and maintaining employees. Succession planning is part of TM and refers to the process through which a successor for a departing staff member can be found in a way that minimises any disruption for the organisation. Organisations compete against each other to acquire Valuable, Rare, Inimitable and Organised (VRIO) employees, to try and gain competitive advantage over competing organisations Key Points: Talent management strategies often focus on developing and retaining high potential employees through accelerated development, coaching, and succession planning (Talent Management Strategy) Talent management is most effective when supported by other integrated HR processes like performance management and reward systems (Talent Management Strategy) Talent Identification: Identifying talented employees is a key first step, often using a performance-potential matrix to categorize staff as: Underperformer- little potential, current level of performance is poor Key performer- highly competent in their present role but are less suited for further development Untapped Potential- not currently achieving a high level of performance but with the necessary changes have the potential to make a key contribution Classic High Potential (HIPO)- currently achieving a high level of performance and have the potential to make a key strategic contribution Recruiting talented employees is challenging as their performance can be context-dependent and not always transferable to a new organization. Once the HIPOs are identified, the text explains that organizations often put them on "accelerated development routes". This could involve things like: Coaching and mentoring Assigning them to special projects Providing additional training and development opportunities The goal is to nurture and retain these talented individuals so the organization can leverage their skills and knowledge for competitive advantage. Ö Ú Ù Ø × Talent management is most effective when it's supported by other integrated HR processes, like performance management and reward systems. This helps create a cohesive talent strategy across the organization. Why Engage in Talent management or workforce planning activities? Because the future needs are to be addressed if an organisation is to remain competitive and to retain and develop staff. Are these activities perfect? They are not perfect processes. This is because STEEPLE factors are often unforeseeable and hard for the business to control. The Flexible Firm The flexible firm is a management technique for organizing the workplace using various forms of flexibility to optimize the use of human resources. Factors in the external environment, like technology, the economy, and demographics, are shaping the need for more flexibility within organizations. For example, advances in technology have enabled more remote and hybrid work models, giving organizations and workers more flexibility. The economic climate, such as recessions or labour shortages, can also influence the types of flexible arrangements organizations offer. Core employees V Peripheral employees Core- consists of full-time primary workers who are integral to the functionality of the organisation, functionally flexible and difficult to replace, due to high-level skills, knowledge and experience.  Peripheral- the peripheral group consists of secondary workers, who are often less skilled and less experienced. The numbers of people in the peripheral group are highly variable, as their skills are easily available in the labour market. This means that they can be sourced at short notice, in accordance with the number and type of tasks and are often only needed at particularly task-heavy periods of the week. There are different forms of flexible working arrangements that organizations can use: Ä Functional flexibility - Allowing workers to perform different tasks and roles across the Æ Å organization, rather than being specialized in one area. This helps the organisation adapt to changing skill needs. K Numerical flexibility - Adjusting the number of employees based on fluctuations in M L demand. This can involve using temporary, part-time or zero-hour contract workers. ⏱ Temporal flexibility - Allowing flexibility in work hours, schedules and locations, like split shifts, job sharing, remote work. This helps match worker availability and organisational needs. Financial Flexibility- organisations can adapt their wage costs through peripheral workers (numerical, temporal flexibility) These flexible approaches can benefit both the organization (cost savings, responsiveness) and workers (work-life balance, autonomy) when implemented thoughtfully. Potential downsides of extreme flexibility: Excessive use of flexible arrangements, like zero-hour contracts, can create financial insecurity and unpredictability for workers. Zero-hour contracts are a type of flexible employment arrangement where the employer does not guarantee any minimum number of hours of work for the employee. Essentially, the worker is "on call" and the employer can choose to schedule them for work or not, depending on the organization's needs. The key points about zero-hour contracts: Û Ultimate flexibility for employers: Zero-hour contracts provide the maximum Þ Ý Ü flexibility for organizations to scale their workforce up or down as needed, without being locked into guaranteed hours or costs. ß Financial uncertainty for workers: This flexibility comes at a cost for the workers, à who face significant income instability and unpredictability. Their pay cheques can fluctuate wildly week-to-week based on how many (or how few) hours they are scheduled. á Challenges with financial obligations: This lack of income stability makes it very ç æ å ä ã â difficult for zero-hour contract workers to manage fixed financial commitments like mortgages, rent, and childcare. Their income is essentially on-demand, not guaranteed. 3 Debate around worker protections: There has been a lot of debate and even ? > = < ; : 9 8 7 6 5 4 legislation, like in Ireland, around finding the right balance between employer flexibility and worker protections. Organizations want the flexibility, but workers need income security. An example of the Dunnes Stores strike, where workers had contracts labelled as "zero- hour" but were guaranteed 15 hours per week. The workers were fighting for their contracts to reflect the reality of the 30 hours they were regularly working.  Balancing flexibility and worker protections: Legislation, like the Employment Miscellaneous Provisions Act in Ireland, is trying to find the right balance between allowing organizational flexibility and protecting worker rights/income security. For example, the "banded hours" concept requires employers to update contracts to reflect workers' actual average hours, even if lower than the stated contract. 3 Balancing flexibility: So if a worker is regularly working 30 hours per week on average, ? > = < ; : 9 8 7 6 5 4 even though their contract states 15 hours, the employer has to update the contract to the higher 30-hour figure. This helps provide workers with more income stability and security, while still allowing the employer some flexibility to adjust hours up or down as needed. The gig economy The gig economy refers to the rise of short-term, temporary, or freelance work arrangements, rather than traditional full-time permanent employment. Some key characteristics of the gig economy: Û Variety of short-term jobs: Workers in the gig economy often take on a diverse range of Þ Ý Ü short-term "gigs" or jobs, rather than having a single long-term employer. è Enabled by technology: Platforms like ridesharing apps (Uber), delivery services í ì ë ê é (Doordash), and freelance marketplaces (Fiverr) have greatly expanded the gig economy by making it easy for workers to find and complete these temporary jobs. 🕰 Flexible schedules: One of the big appeals of gig work is the flexibility it provides - workers can often choose when, where, and how much they want to work. ß Income uncertainty: However, this flexibility comes at a cost - gig workers typically don't à have the income stability, benefits, or job security of traditional full-time employment. Their earnings can fluctuate significantly week-to-week. The rise of the gig economy shows no signs of slowing down, as both companies and workers are attracted to the flexibility it offers. But it also highlighted the potential downsides in terms of financial uncertainty for workers. – Balancing the pros and cons: Just like with other forms of flexible work, the key is finding ž œ › š ™ ˜ — the right balance - harnessing the benefits of the gig economy while also providing adequate protections and stability for workers. Legislation and policy will likely play an important role in shaping how the gig economy evolves going forward, to ensure it works for both organizations and individuals. Resourcing: Employee resourcing is a fundamental component of effective HR practice. It refers to the process of finding the 'right' person for a particular role, in a specific organization. Resourcing is the process where people are identified and deployed to work within the organisation The selection decision is arguably one of the most important issues for any employer, regardless of organization size. Selecting the 'right' employee during the employee resourcing process is critical, as not doing so can be costly for employers. Resourcing consists of two elements: Recruitment Selection Do we always have to hire someone new? The decision depends on the skills available within the organisation: Is there time to train someone new into the role? Is the role considered core and long-term or temporary in nature? The recruitment process: The recruitment process starts with the job analysis stage. This is where detailed information about the tasks, skills, and competencies required for a vacant position is gathered. The key outputs of the job analysis are a job description and a person specification. The job description is a detailed inventory of what the job entails: Job title - Adequately describe job, accuracy crucial Purpose of the job - Simple statement of objectives Principal duties- List key tasks, key results areas Performance standards - Competencies Working relationships - Reporting relationships Training and education - To be provided/needed Advancement - Promotion prospects Salary and other benefits The person specification is essentially the translation of the job description into human terms. It lays out the qualifications, knowledge, skills, personal attributes and experience required of an individual to match the job. Some key things to know about the person specification:  It should be developed directly from the job description - the person spec criteria should accurately match the job requirements. It's important to differentiate between essential and desirable criteria. Essential criteria are must-haves, while desirable are "nice-to-haves". Focusing too much on desirable criteria can limit the applicant pool, so the person spec should be realistic. In addition to qualifications and experience, the person spec often includes competency- based criteria. These are the behavioural characteristics needed for successful performance. Can be implemented at the org. level or job level Allows an objective approach to selection criteria and consistency across the organisation The person spec should be used as the basis for evaluating and shortlisting candidates during the recruitment process. Particular attention needs to be paid to equality legislation when designing person specification Because it deals with describing key characteristics of a person there is a danger of discriminatory language The job description and person specification allow for a job advertisement to be created.Job advertisements should clearly outline the specific requirements for the role, such as required experience, skills, qualifications, and personal attributes, to attract the right candidates and avoid mismatches. E.g Below is an example of good job advert. The only critique is that it does not state the desirable and essential characteristics. The recruitment phase Formal Recruitment Methods: These are the official, advertised job openings that the organization posts. Examples include job postings on the company website, job boards, print ads, etc. The advantage is it reaches a wider pool of candidates. The downside is it can be more expensive for the organization. Informal Recruitment Methods: These are more casual, word-of-mouth type approaches. Examples include employee referrals, unsolicited applications, and social media connections. The advantage is it can be more cost-effective for the company. The downside is the candidate pool may be more limited. Formal: » î Wider applicant pool » î Promotes diversity ï Higher costs Informal: » î Cost-effective » î Helps with staff development and retention ï Limits the applicant pool ï Can restrict innovation Internal recruitment is when a company looks to fill job openings with people who already work for them.  1. Cost-effective: It's cheaper than external recruitment because you don't have to advertise as widely. ß à 2. Staff development: It's a great way to help current employees grow in their careers. K M L 3. Motivational tool: It shows employees there are opportunities for advancement, which can boost morale. ]i h g f e d c b à _ ^ 4. Increases retention: When people see they can move up, they're more likely to stay with the company. jo n m l k 5. Cultural fit: The employee already knows the company culture, so there's less risk of a mismatch. 3 ? > = < ; : 9 8 7 6 5 4 However, there are some cons too: 1. Limited pool: You're only choosing from current employees, so you might miss out on fresh talent. ð ú ù ø ÷ ö õ ô ó ò ñ 2. Skill shortages: The exact skills you need might not exist within your current workforce. Ä Æ Å 3. Innovation limitation: New hires from outside can bring fresh ideas and perspectives. @ D C B A 4. Training costs: You might need to invest in training to get the internal hire up to speed. û ' & % $ # " ! ÿ þ ý ü 5. Morale issues: Employees who apply but don't get the job might feel demotivated. ( - , + * ) External recruitment is when a company looks outside its current workforce to fill job openings. 1. Wider applicant pool: You get access to a larger group of potential candidates. À Á 2. Fresh perspectives: New hires can bring innovative ideas and approaches. @ D C B A 3. Diversity: It can help increase diversity in the workplace.. 3 2 1 0 / 4. Specific skills: You can target candidates with exact skills or experience you need. E J I H G F However, there are some challenges too: 1. Higher costs: Advertising externally and using recruitment agencies can be expensive. ß à 2. Time-consuming: The process can take longer than internal recruitment. Ç Í Ì Ë Ê É È 3. Unknown factors: You don't know how well the new hire will fit into your company culture. – ž œ › š ™ ˜ — The external recruitment methods: 1. Recruitment Consultancies: They help find candidates for a fee, usually a percentage of the new hire's salary.  à This method can be expensive however they are able to span into large pool of candidates based on the consultancies pooling. 2. Employee Referrals: Current employees recommend people they know. This can be cost- effective and often results in good cultural fits. 4 5It brings financial reward to the existing employer and 3. Graduate Recruitment: Targeting recent graduates through career fairs or campus visits. 8Bringing new highly skilled employees that usually don’t have experience. 7 6 E-recruitment is all about using the internet to attract candidates and fill job vacancies. 1. Comprehensive approach: It can be used for both internal and external recruitment. j oÀ n m l k Á 2. Company website: Job adverts can be posted on the organization's intranet (for internal recruitment) or webpage (for external recruitment). 9 > = < ; :  3. Social networking: Sites like LinkedIn, Facebook, and Twitter are commonly used. These are great for reaching passive candidates who aren't actively job hunting. è í ì ë ê é 4. Speed and efficiency: E-recruitment often leads to faster responses from candidates. ? 5. Cost-effective: It's usually cheaper than traditional recruitment methods. ß à 6. Wider reach: You can potentially reach a global talent pool. @ A 7. Employer branding: It's a chance to showcase your company culture online. N S R Q P O However, there are some challenges: 1. Information overload: You might get too many applications to handle easily. ( D C B 2. Screening: You may need special software to filter applications effectively. Ä Æ Å 3. Impersonal: It can lack the personal touch of traditional recruitment methods. 4. Security and data protection International recruitment refers to when organizations look outside their home country to find candidates with the specific skills and competencies they need. Here are some key points about international recruitment: 1. Advantage: It increases the pool of potential candidates, allowing the organization to find people with the exact skills required for the role. À Á 2. Motivation: Organizations may use international recruitment to fill senior-level positions, where they want to find the absolute best person for the job, regardless of nationality. E I H G F 3. Challenges: Higher costs: The organization has to cover expenses like travel, relocation, and visas for the selected candidate. ß à Immigration laws: They have to navigate the legal requirements for hiring foreign workers, which can be complex. 🗄 Cultural differences: The new hire may need to adapt to a different organizational culture and way of doing business. J 4. Sectors: International recruitment is common in industries facing skills shortages, like IT and pharmaceuticals, where the required expertise may not be readily available locally. 9 >⚕ = < ; : 5. Recruitment methods: Organizations may attend graduate recruitment fairs in other countries or use specialized international recruitment agencies to find the right candidates. 6 8 7 International recruitment is often used to bring in senior-level talent, where finding the absolute best person for the role is the priority, even if it means looking beyond national borders. À ÁN S R Q P O The employer brand plays a crucial role in attracting the most suitable candidates for a vacant position. 1. Definition: An employer brand refers to an organization's reputation as an employer. 2. Importance: Being considered an 'employer of choice' is super positive for organizations. 3. Benefits: Increases labour retention N S R Q P O Attracts strong, talented applicants (the best want to work for you) K M L  Creates a positive image as an employer N U T S R Q P O 4. Examples: Companies like Google or Microsoft are considered to have positive employer brands. 5. Competitive Edge: In tight labour markets where skilled applicants are scarce, a positive employer brand can help entice candidates to apply. 6. Unsolicited Applications: A strong employer brand often leads to more unsolicited job applications. 7. Awards: There are now various awards, like the Great Place to Work Awards, that recognize companies with strong employer brands. 8. Financial and Non-financial Rewards: Companies with strong employer brands often offer competitive financial packages and structured internal career paths. It's not just about the money, but the whole package! ÛÞß Ý Ü à The job advert is where the organization shares key details about the vacant position with potential candidates. Here's a closer look: 1. Content: Name of the organization Job title Duties and responsibilities of the role Essential and desirable skills/competencies required Application details (e.g. CV, cover letter, online form) Closing date for applications Contact information 2. Purpose: Gain the attention of suitable candidates Generate interest in the role Instil a desire in candidates to apply Prompt prospective employees to act and apply 3. AIDA Criteria: Attention - The advert should grab the reader's attention Interest - It should pique their interest in learning more Desire - It should make them want the job Action - It should prompt them to apply 4. Importance of Clarity: The advert needs to clearly communicate the job requirements This helps ensure the right candidates apply, saving time in the selection process 5. Compliance:  The advert must comply with any relevant employment legislation to avoid discrimination EU anti-discrimination law assures that potential applicants are not discriminated against on grounds of age, sex, sexual orientation, race/ethnicity/national origin, religion and disability Employment Equality Acts 1998/2008 Outlines nine grounds of discrimination in Ireland: 1. Gender 6. Disability 2. Marital Status 7. Race 3. Family Status 8. Religion 4. Sexual Orientation 9. Membership of the Travelling Community 5. Age Selection The selection process is one of the most critical processes, as if not done correctly it can be very costly for the employer. Vital for employer to ensure the selection process identifies the most suitable candidate for the vacant position The main aim is to predict how successfully an individual will perform in the job role. Ä Æ This is Å the core purpose of the selection process - to identify the candidate who is the best fit and most likely to excel in the position. To achieve this, the selection process involves: Gathering information about the candidates ² º - through application forms, ¹̧ · ¶ µ ³́ interviews, tests, assessments, etc. to understand their skills, abilities, and fit. Matching the candidate information to the job requirements Ä Æ - comparing what Å the role needs to what the candidate can offer in terms of qualifications, experience, competencies, etc. Making an informed decision on the best candidate Û Þ - using the data gathered to Ý Ü determine which applicant is the strongest match and most likely to succeed in the role. Shortlisting Shortlisting is all about narrowing down the field of applicants to find the best candidates for the job. it's a "sifting process where those candidates who most closely match the predetermined job- specific requirements are separated out from all other applicants." 🕵 The key steps in the shortlisting process are: Reviewing all the applications received V ] \ [ Z Y X W Evaluating each applicant against the job criteria and person specification Ä Æ Å Scoring or ranking the candidates based on how well they match the requirements ® ± ° L̄ Selecting the top candidates to move forward in the selection process N S R Q P O The key tool used in shortlisting is the shortlisting matrix. This awesome tool helps score candidates based on essential criteria for the job. For example, in the matrix shown, candidates are scored on things like their business degree, work experience, IT skills, and collaboration abilities. ® ± This helps ensure the process is fair, objective, and focused on ° L̄ finding the best fit Shortlisting matrix Suitable, marginal, unsuitable Use of job descriptions and shortlisting matrix Weights/scores given to criteria Cut off scores can be agreed Needs to be clearly linked and defensible Online screening online screening involves using software packages called Applicant Tracking Systems (ATS) to sift through applications. These ATS systems are like super-smart robots _ f that scan CVs/résumés and application e d c b à forms for specific keywords related to the job. If your CV has the magic words the employer is looking for, you'll rank higher in their search results But here's the tricky part, this method might accidentally filter out good candidates who didn't use the exact keywords. So it's not perfect, but it sure helps employers deal with tons of applications quickly! ⏱ So, online screening is all about using technology to make the initial selection process faster and more efficient. selection methods Usually more than one method is used depending on o The type of job & the level of the position o Predictive validity of method o Costs involved o Time and effort involved o Skills and abilities of those undertaking selection There are two key issues when choosing selection methods: validity and reliability. Validity is all about how well a selection method measures what it's supposed to measure. It's like making sure your ruler measures inches correctly! g p o n m l k j i h Reliability, on the other hand, is about consistency. If you measure the same thing twice, do you get the same result? It's like making sure your bathroom scale gives you the same weight every time (even if we don't always like what it says! ( u). t s r q The closer the validity score is to 1.0, the better the predictive validity. Some methods mentioned in the image include: Intelligence tests Structured interviews Work samples Personality tests Assessment centers References Graphology (that's handwriting analysis ✍) Interestingly, combining intelligence tests and structured interviews gives the highest predictive validity at 0.63. That's like a dynamic duo of selection methods! v Š♂v ‰̂ ‡ † … „ ƒ € ~ } | ‚ { z y x w Š♀ ‰̂ ‡ † … „ ƒ € ~ } | ‚ { z y x w Selection: Validity of Methods Intelligence tests & structured interviews 0.63 Intelligence tests and work sampling 0.60 Work sampling 0.54 Structured interviews 0.51 Intelligence tests 0.51 Personality tests 0.40 Unstructured interviews 0.3 References 0.26 Graphology 0.02 Selection interviews Telephone interviews: Great for initial screening! Video interviews: Can be real-time or pre-recorded. One-to-one interviews: The classic approach! Panel interviews: Multiple interviewers, There are structured vs. unstructured interviews. Structured ones are way more valid and reliable. types of structured interviews:  Competency-based interviews: These focus on past behaviours related to key competencies. Situational-based interviews: These ask how you'd handle hypothetical scenarios. Strength-based interviews: These look at what you enjoy doing. problems with interviews, like: Confirmatory bias: Interviewers making up their minds super quick! ? Horns or halo effect: One trait influencing the whole impression. ‹ Ž( Œ ( ” “ ’ ‘ Stereotypes: Judging based on preconceived notions. Selection interviews usually involve an organizational representative meeting candidate face- to-face. It's been the most popular method for years, despite some shortcomings. –ž œ › š ™ ˜ — There are different types of selection interviews mentioned: 1. Telephone interviews – 2. Video interviews 🖥 3. One-to-one interviews  à 4. Panel interviews  ÃÂàà Structured and Unstructured Interviews Structured Interviews - Ensure that interview questions are based on the job criteria - All candidates are asked essentially the same questions - Can noticeably improve its validity Unstructured Interviews - More like an informal chat between the interviewer and interviewee - No consistency and cannot be rated against other applicants Structured interviews are the way to go when it comes to improving the validity of the selection process. Structured interviews are designed to ensure the interview questions are strictly based on job- related criteria. The same questions are asked of all candidates, and their answers are rated. This provides a consistent, objective approach to the selection decision. The most common forms of structured interviews mentioned are: 1. Competency-based interviews ÛÞ These focus on gathering information about specific Ý Ü behaviours or competencies identified as important for the role. 2. Situational-based interviews – ž These present the candidate with a hypothetical œ › š ™ ˜ — scenario and ask how they would respond. 3. Strength-based interviews Ö Ú These aim to uncover what the candidate enjoys and is Ù Ø × naturally good at, rather than just their skills. On the other hand, unstructured interviews are described as more of an informal "chat" between the interviewer and candidate. They can have as much predictive validity as "tossing a coin in the air"! — ¬♀ « ª © ¨ § ¦ ¥ ¤ £ ¢ ¡ Ÿ ž œ › š ™ ˜ The key difference is that unstructured interviews don't follow a set structure or criteria - different questions may be asked of different applicants. This makes them much more subjective and prone to interviewer bias. So in summary, structured interviews are the way to go for a more valid and objective selection process, while unstructured interviews can be quite unreliable. Selection Methods: Psychometric test Psychometric testing refers to the various psychological assessments used to measure individual differences in areas like aptitude, ability, attainment, and intelligence. The key idea behind psychometric testing is that it provides a quantifiable measurement of a candidate's cognitive abilities and skills. The thinking is that those who perform well on the tests will likely perform well on the job. The different types of psychometric tests mentioned include: 1. General intelligence tests - ¯ These measure the ability to think, analyse, and problem- ® solve. 2. Attainment tests ° ³́ These assess a candidate's existing knowledge and skills. ² ± 3. Cognitive ability tests » ¸ These look at verbal comprehension, numerical ability, and · ¶ µ reasoning skills. The benefit of psychometric testing is that it can provide more objective, job-related data to inform the selection decision. However, these tests should be used in combination with other methods, as there are debates around their reliability and validity. Overall, psychometric testing is a valuable tool in the selection process, but needs to be used thoughtfully and alongside other assessment techniques Personality profiling is based on the idea that an individual's personality is an important determinant of their behaviour at work. Employers often use personality tests as they search for predictors of success in a particular role. The commonly used personality profiles: 1. The Big Five V ] This is based on the five-factor model of personality, which measures \ [ Z Y X W openness, conscientiousness, extraversion, agreeableness, and neuroticism. 2. The Sixteen Personality Factor Questionnaire ² º This is another widely used measure ¹̧ · ¶ µ ³́ of behavioural style in the workplace. The premise behind these personality tests is that they can provide insights into how a candidate might perform and fit within the organization. Employers believe that certain personality traits may be better suited to particular roles. However, the caution around using personality profiles as the sole basis for selection decisions. There are debates around how measurable and stable personality really is over time and across situations. Assessment centres are not actually a physical place, but rather a process that organizations use to identify the most suitable candidates. This is particularly common in graduate recruitment. The key thing about assessment centres is that they use a series of exercises and tests to assess multiple competencies in the candidates. Some of the techniques mentioned include: 1. Work sample tests ¹ These ask candidates to complete tasks similar to the actual job, to test their abilities. 2. Leaderless group discussions Âà Candidates discuss a job-related problem as a group, and their behaviour is observed. 3. Psychometric tests ² º The same cognitive and personality tests discussed earlier. ¹̧ · ¶ µ ³́ 4. In-tray/e-tray simulations 9 > These test the candidate's ability to handle a real work = < ; : situation, like email requests and information overload. 5. One-on-one interviews º ½ The traditional interview format is also incorporated. ¼ » The assessors then come together to agree on a cumulative rating for each candidate based on all the observations and test scores. The big advantage of assessment centres is their high predictive validity - they're good at identifying the best candidates. However, they can be quite expensive to set up and run. So, in summary, assessment centres provide a thorough, multi-faceted evaluation of candidates, using a variety of exercises and tests. Work sample tests are a useful selection method. The idea is to have candidates’ complete tasks that are like the actual job duties, to assess their real-world abilities. The premise behind work sample tests is that the best predictor of future behaviour is observed behaviour. So, by having candidates demonstrate their abilities in a realistic job- related task, employers can get a better sense of how they might perform on the job. work sample tests are common in the service sector, where an assessment of the candidate's customer service skills can be measured immediately through their interactions. As for peer assessment, likely involves having the candidate's peers or colleagues evaluate their performance on certain tasks or competencies. This type of assessment can provide valuable insights, as peers may be able to offer a different perspective than supervisors or interviewers. It allows employers to get a more well-rounded view of the candidate's abilities and fit for the role. Overall, both work sample tests and peer assessment seem to be effective ways for employers to evaluate candidates' real-world skills and competencies. Graphology is the study and analysis of a person's handwriting, which is believed to reveal insights into their behavioural profile. However, it is not a valid predictor of job performance. In fact, the research indicates that graphology has a "negligible predictive validity score." So while some employers may still use graphology as part of their selection methods, the consensus seems to be that it's not a particularly reliable or accurate way to assess candidates. Other selection tools, like psychometric testing and structured interviews, tend to have much stronger predictive validity. The Interview Most widely used selection tool Research evidence highlights its limitations. There are several negative aspects associated with selection interviews: 1. Confirmatory bias – ž Interviewers are often accused of making up their mind about a œ › š ™ ˜ — candidate within the first 30 seconds, and then asking questions to confirm that initial impression, whether positive or negative. 2. Halo or horns effect 4 5¾ ¿ This is where one single characteristic of the candidate creates an overly positive or negative impression that then carries too much weight in the decision. 3. Stereotyping À Å Interviewers may make judgments about candidates based on Ä Ã Â Á stereotypes or preconceived notions about certain groups. 4. Contrast error ÆÔ Comparing and contrasting candidates in a way that artificially Ó Ò Ñ Ð Ï Î Í Ì Ë Ê É È Ç inflates or deflates the evaluation of each one. 5. Projection error ( t( s Ö Õ Ý Rating candidates more favourably if they have similar Ü Û Ú Ù Ø × characteristics or experiences to the interviewer. these types of perceptual distortions and subjective biases can seriously undermine the validity and reliability of the interview as a selection method. However, despite these well-known issues, the interview remains a hugely popular tool, as it allows employers to assess important factors that can't be easily measured through other means. The key is to try to minimize these biases through structured, competency-based interview approaches. Advantages. Flexible · Uses fewer resources than other methods. Opportunity to meet candidate Disadvantages · Poor interviewing skills Lack of training. Bias in the process Making the final selection decision Decisions need to be made in advance of the selection process on how to weight each selection method and how to score the candidates to ensure consistency. The shortlisting matrix is a useful method of recording information from each selection method as it has identified the key job-related criteria Post-offer stage For positive employer branding it is important all candidates be contacted, be they successful or not in their application. Keeping previously mentioned scoring matrices as part of data protection also ensures feedback, if requested, is available to unsuccessful candidates.  Successful candidates who accept the offer must now be monitored in their progress to ensure validity of the selection process and selection decision. Data should be collected continuously to assess performance of selection methods and of those hired. This allows an evaluation of the relationship between selection methods, selectors and successful role performance. Employment Legislation and the Selection Process o Provides a framework of fairness and consistency in the selection process to eliminate discrimination and ensure equality of opportunity o Discrimination occurs where one person is treated less favourably than another, either directly or indirectly o Discrimination law in Europe is covered by the Equal Treatment Framework Directive 2000, which applies to all EU member states o The USA’s discrimination legislation is similar to Europe o Data Protection and Freedom of Information Acts Employee engagement. Employee engagement is a critical concept for organizations to understand. It refers to the degree to which an employee is physically, psychologically, and emotionally invested in their work and the organization. Physically engaged employees demonstrate high levels of energy and mental resilience in their work. Psychologically engaged employees are fully absorbed and focused on their tasks. And emotionally engaged employees feel a strong sense of dedication, significance, and pride in their work. When employees are highly engaged in this way, it has significant benefits for the organization: ¤ Engaged employees are more productive and perform at a higher level. Their vigour, ª © ¨ § ¦ ¥ dedication, and absorption in their work leads to better outcomes. K Engaged employees are also less likely to leave the organization. They feel a stronger M L connection and commitment, reducing turnover. This is why employee engagement is considered a "must-have" for organizations today. It goes beyond just employee satisfaction - engagement involves that active, energized connection that drives performance and retention. The importance of effective induction programs for new hires. 1. Definition of Induction: Induction is described as an important organizational initiative that lays the groundwork for employee engagement. It's crucial because new employees who feel connected to their work and the organization from the beginning are more likely to be engaged and productive. 2. What is Induction: Induction is defined as the whole process where new e