The human resource management function the employment cycle. Business Management Unit 3 Area of Study 1

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1 The human resource management function the employment cycle Business Management Unit 3 Area of Study 1

2 Phases of the human resource/staffing process and their related activities Phase Activities Stage one establishment Planning: identifying staffing needs, conducting job analysis (determining the exact nature of the position to be filled) and job design (determining how the job is to be performed and the material and equipment required to do the job) Recruitment: attracting people to apply for the position in the business, undertaking internal and external recruitment Selection: choosing and hiring the most qualified; testing and interviewing Employment arrangements and remuneration: deciding on the type of employment contract (arrangements) and ways of paying employees (remuneration) Stage two maintenance Induction: acquainting new employees with the organisation and the jobs they will perform Training and development: teaching employees new skills, helping employees to learn tasks associated with their jobs and to improve their skills Recognition and reward: monetary benefits (rewarding employees' efforts through financial compensation) and non-monetary benefits (rewards such as better conditions, fringe benefits) Performance management: methods to improve both organisational and individual employee performance Stage three termination Termination management: voluntary termination (dealing with employees leaving of their own accord retirement, resignation) and involuntary termination (dealing with employees being asked to leave retrenchment, dismissal) Entitlement and transition issues: payment of any outstanding benefits, such as sick or annual leave, and providing support and counselling for dismissed employees

3 Human resource planning Forecasting the number of employees available and the number of qualified employees demanded in the future Relates to business strategies Action taken to achieve business objectives Need to have the right number to employees doing the right tasks/actions (strategies) to meet objectives (goals) Forecast the future demand for employees and estimate the supply available to meet that demand Establishment Phase

4 Job Analysis Study of employee s job to determine duties performed, the time taken, responsibilities involved and equipment needed Job description: a written statement describing the employee s duties, tasks and responsibilities associated Job specification: a list of key qualifications needed to perform a particular job in terms of education, skills and experience Establishment Phase

5 Job design Details the number, kind and variety of tasks that individual employees perform in their jobs. May be designed so they include a variety of tasks to keep employees interested and motivated. Establishment Phase

6 Recruitment Process of attracting qualified job applicants from which to select the most appropriate person for a specific job Main sources of employment: Advertisements in the media Temporary/casual services Schools, universities or TAFE colleges Internal searches Public employment agencies Private employment agencies Establishment Phase

7 Selection Involves choosing the candidate who best matches the organisation s requirements Poor selection process can lead to increased costs and lower productivity by increasing: Training costs Job dissatisfaction and labour turnover Absenteeism rate Accident or defect rates Establishment Phase

8 Selection Selection options: Application forms: candidates outline information about themselves Tests: can be written or practical and are designed to test aptitude, intelligence and ability Interviews: Most common, common questions asked Background checks: employer verifies the information on the application form Medical examinations: jobs that require certain physical attributes Make sure that discrimination does not occur during the selection process Establishment Phase

9 Steps in a typical recruitment and selection process Establishment Phase

10 Anti-discrimination laws Discrimination occurs when a person is disadvantaged because of a personal characteristic such as their age or sex. To prevent discrimination and to avoid large fines, employers need to: Comply with legislation, such as the Equal Opportunity Act 2010 Commit to a workplace free from discrimination Write and communicate policies to prevent discrimination Train managers and staff in cultural diversity issues, and about ways to prevent or deal with discrimination Appoint a grievance officer and specify grievance procedures involving issues such as sexual or racial harassment. Establishment Phase

11 Employment arrangements Different employment arrangements include: Full-time (permanent) employment Part-time (permanent) employment Fixed term contract Probationary employment Casual employment Job sharing Employing an independent contractor Establishment Phase

12 Remuneration Monetary payment in return for the work an employee performs Wage hourly or weekly rate of pay Salary a fixed amount each year, which is divided by 26 to give a fortnightly salary, or by 12 to give a monthly salary. On cost (or non-wage benefits) are additional costs involved in hiring an employee, about the cost of their wages, and include superannuation, long service leave and workers compensation. Establishment Phase

13 Induction Process of acquainting new employees with the organisation its history, structures, objectives, culture, policies and practices and the jobs they will perform A well-prepared induction program will: Reduce stress and anxiety Build a new employee s confidence in the job by: Assisting the employee to feel part of the organisation Helping to establish good working relations with co-workers and supervisors Ensure greater awareness of major safety policies and procedures Maintenance Phase

14 Training & Development Employee training generally refers to the process of teaching staff how to do their job more efficiently and effectively by boosting their knowledge and skills Improves productivity within organisation Development refers to activities that prepare staff to take on greater responsibility in the future Technology creates the need for ongoing training Maintenance Phase

15 Training & Development Types of training Off-the-job experience On-the-job experience Action learning Competency-based training Training within industry Corporate universities Training technologies Training can be formal or informal Maintenance Phase

16 Training & Development Development Job rotation the employee experiences many different aspects of an organisation Mentoring a mentor acts a bit like a coach, supporting the employee as they learn Formal business training this may be done through programs such as the Masters of Business Administration (MBA) Succession planning focuses on preparing employees with potential to take on key management positions within the organisation in the future should the need arise. Maintenance Phase

17 Recognition and reward programs Aim at both acknowledging the work an employee has done and providing some sort of benefit, such as cash, merchandise, travel or gift certificates, in return for a job well done. Intrinsic rewards comes from the tasks or job itself, such as recognition or feedback or a sense of achievement Extrinsic rewards outside the job itself. They may be monetary or non-monetary. Maintenance Phase

18 Reward and Recognition Maintenance Phase

19 Performance Management Focuses on improving both organisational and individual performance through relating organisational performance objectives to individual employee performance objectives An example: if one of the organisation s objectives is to increase sales by 10% and therefore increasing market share, then individuals within the sales team would need to increase sales and the production team would need to increase production to meet increased sales demands Performance appraisal is the formal assessment of how efficiently and effectively an employee is performing their role in the organisation. Maintenance Phase

20 Performance Management Common methods of appraisal Essay method Critical incident method Comparison method 360 degree feedback technique Without performance feedback, then performance appraisals are a pointless exercise. Maintenance Phase

21 Types of separation Termination Phase

22 Types of separation Retirement organisation can provide advice and assistance Resignation employee needs to give sufficient (written) notice of their intention to resign Redundancy (voluntary and involuntary) organisation may call for voluntary redundancies or they can involuntary redundancy is when an employee is asked to leave. Also redundancy is when the position is no longer needed Retrenchment - is when there is not enough work for employees, so they are retrenched or given notice Dismissal behaviour of an employee is unacceptable and an organisation terminates their employment Termination Phase

23 Unfair dismissal Occurs when an employer dismisses an employee for discriminatory reasons: Absence from work due to illness or injury Either belonging or not belonging to a trade union Race, colour, sex, sexual preferences, age, disability, marital status, family responsibilities, pregnancy, religion, political opinions held or nationality. Termination Phase