HRM History and Planning PDF

MG4031 Wk.08 Lec.01 HRM: The professional specialist function performed by managers who are responsible for devising and executing the organisation’s policies and strategies relating to the attraction, selection, rewarding, employment and welfare of people. History of HRM: It is estimated that th...

MG4031 Wk.08 Lec.01 HRM: The professional specialist function performed by managers who are responsible for devising and executing the organisation’s policies and strategies relating to the attraction, selection, rewarding, employment and welfare of people. History of HRM: It is estimated that the Civil Service first introduced the concept of personnel management in Ireland after WWI. In the private sector, it first appeared in the setting up of the Irish branch of the Institute of Labour Management (1937), forerunner of the Chartered Institute of Personnel and Development (CIPD). 1. Before the 30s, two key traditions existed. a. Welfarism: A series of voluntary initiatives undertaken in certain companies to improve the conditions of factory workers, particularly in relation to working and living conditions, and pay. b. Taylorism: The quest for efficiency and profitability led to the adoption of work systems to a more systematic approach to a wide range of management activities. 2. In the mid 1900s, as organisations became larger and more complex, personnel management followed two newer traditions. a. Bureaucracy: As the range of personnel activities widened, procedures such as those around employment, pay, health and safety, joint consultation, welfare and training became more formalised. b. Consensus Negotiation: The increased prominence of unions after the lifting of the emergency powers act ‘46 led to more emphasis being placed on collective bargaining. 3. In the 70s, pay bargaining became more centralised again. However, unions shifted their focus to other areas like working conditions and productivity. The personnel manager now needed to be a legal expert in employment law. The IPM (CIPD) introduced an exam-only scheme to membership. 4. The term HRM began to replace personnel management in the 80s as organisations began to incorporate HR considerations into their strategic decisions. a. A firm’s workforce must now add value to the product provided b. Individual performance must now matter c. A firm’s human capital investment cannot no longer be easily imitated Activities in HRM: HR Planning: A planning exercise that seeks to anticipate likely future business demands and to make a provision for the quantity and quality of human resources that will be necessary to meet those demands. The right amount of the right people must be available for a firm to achieve its objectives. Major objectives of HR planning include: 1. Ensuring an organisation can find and retain the quality and quantity of HR required 2. Ensuring it makes the best possible use out of these human resources 3. Ensuring that it can manage the HR implications of employee surpluses/deficits Principles of HR planning include: 1. It must be fully integrated with other areas of the firm’s strategy and plans 2. Senior management must stress its importance throughout the firm 3. Larger organisations need a central HR planning unit 4. The HR plan’s time span must be defined 5. The scope and details of the HR plan must be defined 6. The plan must be based on the most comprehensive and accurate information available Stages in the HR planning process: 1. Demand Analysis: Estimating the quantity and quality of HR needed to meet the firm’s objectives based on the firm’s strategy and its implications for the workforce, planned technological changes, an inventory of employee characteristics and the attrition rate among current HR. a. Managerial estimates are the most common and straightforward way of doing this. A manager uses their knowledge to predict HR requirements. They are very subjective. b. Statistical techniques are gaining popularity among larger employers. They include regression analysis and econometric models. c. Work Study is the systematic analysis of work in terms of people, skills, materials and machines. Very useful for tasks involving measurement. 2. Supply Analysis: Estimating the quantity and quality of HR likely to be available. The internal and external labour market are examined. Planned and unplanned labour wastage must be accounted for. Labour markets can be tight/loose. Labour Turnover Index = No. of Employees Resigning/Average Employed Labour Stability Index = No. of employees there over a year/No. Employed last year External factors like population trends, education opportunities, government policies and labour competition also need to be considered.  3. Estimating Deficits/Surpluses: The results of the demand and supply analyses can be used to determine a likely deficit/surplus. 4. Preparing a Plan: This ensures that day to day HR needs are satisfied. It states what a firm will do to manage recruitment, selection, training and development, etc. These plans must be monitored and reviewed. Recruitment: Attracting a group of potential candidates to apply for the vacancy that the organisation has available. Benefits of internal recruitment (transfers, promotions, demotions) include that there are less induction costs and time involved, and that the employee is already known to the firm, reducing uncertainty. However, the range of candidates is limited, and it forgets about the need for new people and ideas in the firm. The background stage of recruitment involved specifying the job and defining what the job demands in terms of employee behaviour. Two things are derived from this: Job Description: A statement of the main tasks and responsibilities of the job. Person Specification: Sets out the skills, qualifications, knowledge and experience needed to best match the job. It may distinguish between characteristics needed and desirable. It takes account of education, qualifications, experience, intelligence, special aptitudes, interests, motivation and adjustment. The recruitment stage involves attracting candidates. External sources include schools, ITs, universities, employment agencies, advertising and management consultants. However, external recruitment is nearly always more expensive. An employer will receive CVs and application forms at this stage. Selection: Begins when application forms are received. Interviews, references, biographical data, aptitude tests and psychological tests can be used here. An interview can be one to one (can be objective), panel (lots of time and resources needed), or group (informal and preliminary). Interviewers should have three constant objectives: 1. To determine enough information about the candidate to determine how they’ll fit the job. 2. To ensure the applicant has enough information about the vacancy and organisation. 3. To leave the applicant with the feeling that they’ve been treated fairly. Common interviewing errors include: Inadequate preparation Premature judgement Absence of interview structure Interviewer dominance No rapport Halo effect Structural rigidity Common types of selection tests include: → Intelligence Test → Aptitude Test → Proficiency Test → Personality Test References: Tiernan, S. and Morley, M. (2019) Modern Management : Theory and Practice for Students in Ireland, Fifth edition. ed, Dublin, Ireland: Institute of Public Administration, pp. 194-222 MG4031 Lecture Slides