Using management theory to support your recommendations
Human Resources Management
Week 5 – Management in Practice
Dr Carol Bond
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Learning outcomes
+ Understand why people make the difference in
an organisation.
+ Define strategic human resource management.
+ Explain how organisations can attract a quality
workforce.
+ Explain how organisations can develop a quality
workforce.
+ Explain how organisations can maintain a
quality workforce.
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The importance of people
An organisation must be well staffed with capable and committed people in order to fully achieve its objectives.
Example testimonials: ‘People are our most important asset’ … ‘It’s our people who make the difference’.
Management practices associated with successful organisations are employment security, decentralisation, use of teams, good remuneration, extensive training and information sharing.
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The diversity advantage
Diversity is linked with competitive advantage.
It brings an array of talents, perspectives, experiences and world views to problem solving and strategy formulation.
Job-relevant talent is not restricted by anyone’s race, gender, religion, marital or parental status, sexual orientation, ethnicity or other diversity characteristics.
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What is HRM?
Human resource management (HRM)
The process of attracting, developing and maintaining a quality workforce to support the organisation’s mission, objectives and strategies.
HRM relies on workers with relevant skills and enthusiasm.
The key task of HRM is to make these workers available.
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The HRM process
The HRM process involves attracting, developing and maintaining a quality workforce.
Attracting a quality workforce includes HR planning, recruitment and selection.
Developing a quality workforce includes employee orientation, training and development, and career planning.
Maintaining a quality workforce includes management of employee retention and turnover, performance appraisal, and remuneration and benefits.
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Steps in strategic HR planning
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Strategic HRM
Strategic HRM:
applies the HRM process to ensure the effective accomplishment of the organisation’s mission
involves attracting, developing and maintaining a quality workforce to implement organisational strategies.
HR planning analyses staffing needs and identifies actions to fill those needs.
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Strategic HRM
Managers must understand the jobs that need to be done.
Job analysis studies job requirements and facts that can influence performance.
Job description details the duties and responsibilities of a job holder.
Job specification lists the qualifications required of a job holder.
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Attracting a quality workforce – key to establishing good culture
Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organisation.
Effective recruiting should bring employment opportunities to the attention of people whose abilities and skills meet job specifications.
The three steps in a typical recruitment process are advertising a job vacancy, preliminary contact with potential job candidates and initial screening to create a pool of qualified applicants.
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Attracting a quality workforce
External recruitment
Job candidates are sought from outside the hiring organisation.
Brings in outsiders with fresh perspectives, and provides access to specialised expertise or work experience not otherwise available from insiders.
Internal recruitment
Seeks applicants from inside the organisation.
Usually less expensive, and builds loyalty and motivation.
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Attracting a quality workforce
Realistic job previews provide job candidates with all pertinent information about a job and the organisation.
Instead of ‘selling’ only positive features of a job, this approach tries to be realistic and balanced in the information provided, depicting actual job and organisational features, both favourable and unfavourable.
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Steps in the selection process
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Attracting a quality workforce
Selection
Choosing from a pool of the best-qualified job applicants.
Reliability
The selection device measures consistently over repeated uses; it returns the same results time after time.
Validity
The selection device has a demonstrated link with future job performance; a good score really does predict good performance.
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Developing a quality workforce
Socialisation:
systematically changes the expectations, behaviour and attitudes of new employees
begins with orientation.
Orientation familiarises new employees with jobs, co-workers and organisational policies and services.
Training provides learning opportunities to acquire and improve job-related skills.
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Developing a quality workforce
On-the-job training takes place in the work setting while someone is doing a job.
Coaching involves an experienced person offering performance advice to a less-experienced person.
Mentoring assigns early-career employees as protégés to more senior ones.
Modelling demonstrates through personal behaviour the job performance expected of others.
E.g. How the behaviour of senior managers sets ethical standards for other employees.
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Developing a quality workforce – Leadership
Off-the-job training is accomplished outside the immediate work setting.
Important form of off-the-job training is management development.
Beginning managers: training that emphasises delegating.
Middle managers: training to understand multifunctional viewpoints.
Top managers: training for decision making, negotiating skills and expand awareness of corporate strategy.
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Performance management systems
Performance management systems set standards, assess results and plan for performance improvements.
Performance appraisal:
is the process of formally evaluating performance and providing feedback to a job holder
serves two basic purposes in the maintenance of a quality workforce: evaluation and development.
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Performance appraisal methods
A graphic rating scale uses a checklist of traits or characteristics to evaluate performance.
A behaviourally anchored rating scale (BARS) uses specific descriptions of actual behaviours to rate various levels of performance.
The critical-incident technique keeps a log of someone’s effective and ineffective job behaviours.
Multi-person comparisons compare one person’s performance with that of others.
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Engagement: maintaining a quality workforce
Workers must be successfully retained, nurtured and managed for long-term effectiveness.
A career is a sequence of jobs and work pursuits that constitute what a person does for a living.
A career path is a sequence of jobs held over time during a career.
A career plateau is a position from which someone is unlikely to move to a higher level of work responsibility.
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Work–life balance
Work–life balance refers to the balancing of career demands with personal and family needs.
Concerns include:
unique needs of single parents
dual-career couples.
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Remuneration and benefits
Base remuneration in the form of salary or hourly wages can make the organisation a desirable place of employment.
Fringe benefits are the additional non-wage or non-salary forms of remuneration provided to an organisation’s wrkforce.
Flexible benefits programs allow employees to choose from a range of benefit options.
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Retention and turnover
Things to remember when handling a dismissal:
Dismissal can be personally devastating.
Dismissal must be legally defensible.
Dismissal should not be delayed unnecessarily.
Dismissal of good performers should include offers of assistance to help them re-enter the labour market.
All records associated with dismissal should be kept.
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Assignment 2
What do we know about the challenge/ proposed strategic decision? (Determined from your analysis in the first assignment)
Relevant literature review (academic + practical examples)
What does the management literature say about this sort of thing?
How the challenge can be resolved by the different organizational process? How organizational design could be in line with proposed strategic decision?
Build a critical evidence base for your recommendations.