HRM EXAM NOTES. Key learning objective 1: Discuss key HRM terminology, concepts and definitions;

Transcription

1 HRM EXAM NOTES Week 1: The Process of SHRM Key learning objective 1: Discuss key HRM terminology, concepts and definitions; What is Human Resources Management? A strategic and coherent approach to the management of employees working individually or collectively to achieve organisational objectives. It involves the activities needed to monitor, innovate, plan and evaluate people e.g., selection, appraisal, rewards, development etc. Why is HRM important? The purpose of HRM is to ensure that organisation is able to achieve success through people. Ulrich (2005) says HRM systems can be the source of organisational capabilities that allow firms to learn and capitalise on new opportunities. Effective SHRM involves understanding both internal and external operational requirements of a business and integrate social and behavioural requirements to develop human capital in the long-run. Effective SHRM focusses on:

2 Leadership Mission and vision Managing for results Values and ethics Effective relationships An Enabling Work Environment Supportive culture Respect for the individuals Communication Well-being and safety A Productive Workforce Service delivery Clarity of responsibilities Organization of work Employment strategies A Sustainable Workforce Human resources planning and analysis Learning and development Workload management Compensation Objectives to be achieved in HRM include: Organisational effectiveness development of policies to support programmes to create a 'great place to work'. HR strategies are concerned with continual improvement and customer relations policies. Human capital ensures that the organisation obtains and retains skilled, committed and well-motivated employees. The human

3 elements are those that are capable of learning, changing, innovating and providing creativity in an organisation. If properly motivated, success will be long-term. Knowledge management support development of firm-specific knowledge and skills that are the result of organisational learning processes. Reward management enhance motivation, job engagement and commitment by introducing policies/processes that ensure that people are valued and rewarded for what they do and achieve, and levels of competence they reach. Employee relations create a climate which is productive and harmonious through partnerships between management/employees and their trade unions. Meet diverse needs develop and implement policies that balance and adapt to needs of stakeholders and the management of a diverse

4 workforce, taking into account differences in individual and group differences. E.g. personal needs, work style, aspirations, equity. Rhetoric and reality Making a firm-specific infrastructure to turn 'theory' into 'reality'. Focuses on solving resistance to change and lack of trust in an organisation. What is the CHRM framework? Step 1: Analyse environmental factors. Monitor and analyse past/present/future data. Internal/organisational factors: Size, ownership(public/private sector), organisational strategy, organisational structure (bureaucratic, centralised, professional), organisational culture, organisational history, resources. External environment: o environmental factors (earthquake) o technology (communication, electricity, roads), o economic factors (interest rates, employment, inflation rates),

5 o labour market (attractiveness of vacancies), o industrial relations (wages, training, union), o politics (government law on wages/environmental protection), o social factors (community attitudes), o demographics (age, gender, education), o industry trends (privatisation, service), o cultural factors (employee rights, religion, respectable behaviour), o international factors (competitive and entrepreneurial cultures). Step 2: Detect potential problem or opportunity. Gap analysis involves looking at what the organisation is currently doing and what it needs to be doing. o Human resources specific gaps: reciprocal gaps between HRM and business strategies (realistic objectives, correct implementation?) affective and behavioural gaps (negative thoughts, low motivation, absenteeism) cognitive gaps (skill shortage, creativity, innovation)

6 o Business gaps; individual, group, whole organisation. SWOT analysis is the scan of internal and external environments to match internal Strength, Weakness, Opportunities, Threats. Step 3: Verify/reject potential HR problems or opportunities. Identification and evaluation of possible problem/opportunity alternatives, through employee involvement. Does the potential problem or opportunity fit with all the available evidence in terms of both what is and is not happening? Are our people ready to execute the strategically relevant skills, attitudes and behaviours required and in the time frame required? THE CHRM framework diagram: pg. 27 Week 2: Motivation and Organisational Change How do you manage employees? People have individual characteristics; no two people are the same

7 in values, attitudes, beliefs, expectations, and ideas. HR is very difficult to predict as it must be continual modified towards the changing organisational goals. Management must direct employee behaviour towards organisational objectives by understanding why people work. There are two styles of SHRM: 1. Hard HRM emphasises quantitative, calculative, control-based strategies for managing people. 2. Soft HRM gaining employee commitment through quality of work life, based on belief that workers need to be cared for, motivated, self-directed through flexibility and adaptability rather than management control. What are the content theories of motivation? Traditional views of motivation are based on scientific management principles and focuses on financial reward for good work, and punishment/termination of employment for anything less. There is 2 views McGregor (1960): 1. Theory X 'hard', control, taught solutions, compliance. 2. Theory Y 'soft', coordination, discovered solutions, cooperation.

8 Hierarchy of needs (Maslow, 1954) (lowest, to highest needs) 1. Physiological: cafeteria, air-conditioning 2. Safety & security: job security, fringe benefits 3. Love & Belongingness: respect from boss, peers and customers 4. Self-esteem: job title, responsibility, recognition and promotion 5. Self-actualisation: challenging job, creativity, achievement in work. Herzberg (1968) two factor theory: 1. Motivation factors encourage effort; achievement recognition responsibility promotion growth and opportunity 2. Hygiene factors minimising discomfort / insecurity; supervision company policy management-employee / employee - peers relationship salary status security

9 McClelland (1955) acquired needs theory: 1. Need for achievement (nach) the drive to excel and succeed. 2. Need for power (npow) the need to influence the behaviour of others. 3. Need for affiliation (naff) the desire for interpersonal relationships. What are the process theories of motivation? The reasons behind why people choose to behave in certain ways and their reasons for acting as they do. Expectancy theory (Vroom, 1964): effort-performance linkage, performance-reward linkage, attractiveness of reward leads to motivation. Performance goals and psychological contract must be clear to ensure expected rewards follow achieved performance levels. Equity theory (Adam, 1963): people compare themselves to others to see how much effort to exert and what compensation to expect. Challenging factors include the perception of what is 'fair'? HRM must develop a reward system that is equitable and in accordance to organisational beliefs and values.

10 Why is employee development important? The aim of development is to improve organisational performance through the enhancement of jobs and employee abilities. Development can take place in a variety of forms: external development programs mentoring job rotation performance appraisals and management career development international consignments training centres workshops Career development: the series of work-related training activities, experiences, tasks and relationships an employee undertakes. Career development = career planning + career management Career planning employee understanding of SWOT analysis and identifying ones own values and career related goals, supported by external assistance from peers, family members, education, training activities and experiences.

11 Career management activities aimed at helping employees with preparing, implementing and monitoring their career planning process. Includes self-assessment, career planning workshops, self- led work books, corporate seminars, corporate succession planning, skills inventories, regular performance appraisals. How can an organisation develop managerial and non-managerial employees? Diversity openness Ability to set and enforce expectations for transparency Open and communication skills Development of high quality relationships with all employees Techniques for eliminating destructive and inauthentic behaviours in employees Techniques for developing authentic, honest, constructive and inclusive behaviours Conflict management skills Emotion management skills Focusing on leadership development Constructive problem solving skills CHRM problem training (pg. 252)