Human Resource management Chapter 1
HRM is a major contributor to the success of an enterprise because it is in a key position...
...to affect customers, business results and ultimately shareholder value
Change agent
A person who acts as a catalyst for change
Social capital
Describes the strength of personal relationships existing within an organisation. It promotes knowledge sharing, employee motivation, teamwork, collaboration and willingness to get things done
Talent manager
Focus is on identifying, hiring and developing the human resources critical for the organisation's success.
Retrenchment strategy
Focus is on performance improvement by increasing productivity, cost cutting, downsizing, re-engineering and selling or shutting down business operations
By building skill levels
HR manager allows individual employees to benefit from increased job satisfaction and improved job prospects while creating value for the organisation
Organisation ambassador
HR manager is expected to be a role model for everything the organisation stands for. The value, culture, strategies and the nature of the business itself must be clearly understood and communicated
Board and senior executive resource
HR manager should be at the forefront in contributing to the board of directors' understanding of how HR policies and practices promote business success and mitigate risk.
Strategic partner
HR managers being an essential part of the management team running an organisation and contributing to the achievement of the organisation's objectives by translating business strategy into action
To be able to link business strategies to HR policies
HR managers must have business acumen, customer orientation and an awareness of the competition
What is a company's most important resource?
Human capital
Key HRM activities
Job analysis, human resource/employment planning, recruitment, selection, performance appraisal, human resource development, career planning and development, employee motivation, change and cultural transformation, remuneration, benefits
Objectives
Measurable targets to be achieved within a certain time frame
Humanistic HRM
Recognises the need for the integration of HR policies and practices with the organisation's business strategy, but places emphasis on employee development, collaboration, participation, trust and informed choice.
transnational strategy
blend of global and multi-domestic strategies. Standardised to a degree but also made some what unique to reflect local needs.
values
broad preferences defining appropriate or desired courses of action or outcomes
How are business' maximising human capital
by focusing on selecting, developing and rewarding top talent, encouraging open communication, teamwork and collaboration, refusing to tolerate poor performance or compromise long-term objectives for short-term gains
HR managers with an internet presence
can be used to attract and track the progress of desirable candidates, and to promote organisation as an employer of choice
Organisation interests
centred on an approach that recognises interdependence of stakeholders, making stakeholders partners to gain a competitive advantage
Performance appraisal
concerned with determining how well employees are doing their job, communicating that information to the employees and establishing a plan for performance improvement.
Organisations shift mindset from
conscript mindset to a volunteer mindset
Global strategy
consider's ones culture superior to others, plays down culture differences and treats different markets as one big market, limits knowledge transfer
when looking at international strategies, organisations must consider
cost efficiency, and customisation
Employee relations
deals primarily with employee attitudes and behaviour and the relationships between the organisation and its employees. Sometimes regarded as being the same as industrial relations however, employee relations focuses more on workplace relations
Job analysis
defines a job in terms of specific tasks and responsibilities and identifies the abilities, skills, knowledge and qualifications needed to perform it successfully
Strategy
defines the direction in which an organisation intends to move and establishes the framework for action by which it intends to get there
discretionary effort
effort employees voluntarily make in excess of the minimum amount required to satisfy the job requirements
High performance HR has a positive effect on organisations by increasing
employee knowledge, skills and abilities (KSAs), empowering employees to act and motivating them to perform
conscript mindset
employees are external motivated to perform
volunteer mindset
employees are internally motivated to perform
Seven dimensions of effective people management that produce substantially enhanced economic performance
employment security, rigourous selection, self-managed teams and decentralised decision making, comparatively high compensation linked to individual and organisational performance, extensive training, reduced status distinctions, and extensive sharing of financial and performance info
stages of strategic formulation and integration
establish a mission and key objectives, analyse the environment, analyse and select business strategies, implement the strategies, monitor and evaluate
human resource development activities
focus on the acquisition of the attitudes, skills and knowledge required for employees to learn how to perform their jobs, improve their performance, prepare themselves for more senior positions and achieve their career goals
strategic HRM
focuses on the linking of all HR activities with the organisation's strategic objective
strategy selection
generating a series of strategic options based on the organisation's objectives and a comparison of its internal strengths and weaknesses, and it's external opportunities and threats
organisations can improve labour productivity by
giving employees more knowledge, better skills, more resources and better designed jobs
environmental analysis
identify any strategic opportunities and threats that may be present, and the organisation's strengths and weaknesses
HRM activities are
interrelated and together they represent the core of HRM
Selection
involves choosing from available candidates the individual predicted to be most likely to perform successfully in a job
strategy implementation
involves designing an organisations structure and control systems and evaluating the selected strategies in achieving the organisation's key objectives
Strategy formulation
involves selecting an organisations mission, key objectives and business strategies
management by objectives
involves setting specific measurable goals with each employee and then periodically reviewing the progress made
Human resource management
involves the productive use of people in achieving the organisation's strategic business objectives and the satisfaction of individual employee needs
Strategic planning to be successful
it is important to achieve a fit between the organisation's strategy, structure, culture and methods of control
Products of job analysis
job description and job specifications
Information generated from performance appraisal is used to
link rewards to performance, identify training and development needs, making placement decisions
High performance work systems (HPWS)
make work more satisfying and rewarding and leads to increases in employee discretionary effort and productivity
strategic management gives
managers consistent guidelines for action and allows the anticipation of problems and opportunities
Feedback
managers must ask whether the strategy is being implemented as planned and whether it is achieving the desired results
single factor productivity
measures the ratio of total outputs to a single category of inputs
HR planning achieves
more effective and efficient use of human resources, more satisfied and better developed employees, more satisfied and better developed employees, more effective equal opportunity planning
HRM strategies
need to be developed as an integral part of an organisation's overall strategy
Stability strategy
neutral strategy that attempts to maintain the status quo by pursuing established business objectives
Growth strategy
organisation can expand internally or through acquisitions, mergers or joint ventures. Can focus on building existing strengths or moving into new areas of business
triple bottom line
organisations focusing on their environmental and social performance as well as their financial performance
Human resource/employment planning
process by which an organisation attempts to ensure that it has the right number of qualified people in the right jobs at the right time
Polycentric orientation
produces a diverse mix of strategies because strategies are adapted to meet the needs of each business unit
geocentric view
produces global strategies on major corporate issues but permits business units to develop local strategies on other issues
Bottom line
refers to final result, such as net profit after tax
strategic choice
refers to managers being proactive in facilitating the organisation's successful adaption to changes in the environment
Remuneration
refers to the cash rewards such as the base pay, bonuses, incentive payments and allowances, which employees receive for working in an organisation.
HR functional expert
refers to the efficiency of HR managers and their effective management of HR activities so that they can create value
long term business success
requires strategic management of HRM to create a sustained competitive advantage
Employee advocate
requires the HR manager to be the employee's voice in management decisions
SWOT analysis
review of organisation's strengths and weaknesses and the opportunities and threats in its environment
Steps in the selection process
reviewing the application forms, psychological testing, employment interviewing, reference checking and completing medical examinations
Benefits
sometimes referred to as indirect or non-cash remuneration. Include superannuation, life insurance, disability insurance, annual leave, sick leave, maternity leave and tuition refund programs
8 Key roles of HRM
strategic partner, HR functional expert, Employee advocate, agent for change and cultural transformation, talent manager, organisational ambassador, board and senior executive resource, legal advisor
Strategic intent
sustained obsession to achieve a challenging long term objective
Industrial relations
take a broader perspective, involving industrial tribunals, trade unions, employer associations and governments and their roles in the making of rules governing the employer-employee relationship
HRM involves
the acquisition, development, reward and motivation, maintenance and department of an organisation's human resources
Management
the art of getting things done through people
work intensification
the increase in effort that employees must make
Human capital
the knowledge skills and abilities present in an organisation's human resources. It is the product of learning education and training
mission statements
the operational, ethical and finical reasons for the organisation's existence
Recruitment
the process of seeking and attracting a pool of applicants from which qualified candidates for job vacancies within an organisation can be selected.
Strategic management
the process whereby managers establish an organisations long term direction, set specific performance objectives, develop strategies and achieve these objectives in the light of all the relevant internal and external circumstances
total factor productivity
the ratio of total outputs to inputs from labour, capital, materials, technology and energy
Benefits work because
they improve the quality of work life and reinforce the attractiveness of an organisation as a place to work
The purpose of strategy
to maintain a position of advantage by capitalising on an organisation's strengths and minimising it's weaknesses.
Two approaches to measuring productivity
total factor productivity and single factor productivity
Employee motivation
vital to the success of any organisation. highly motivated employees tend to be more productive, have lower rates of absenteeism, turnover and lateness
HR manager's development role centres on
wealth created through and by people in the organisation
Health and safety programs
when effective, help guarantee the physics and mental wellbeing of employees.
proactive
when managers anticipate problems and take corrective measures to minimise their effect
reactive
when managers wait until a problem occurs before taking action
Employee motivation is concerned with
why people do things and why one employee works harder than another
Significance of job analysis
basic starting point for HR planning and other HR activities such as recruitment and selection
Career planning and development activities
benefit both employees and organisation
Core values
assist in decision making and are brought to life by the implementation of policies and practices that reinforce them
Legal advisor
Increasing legislation of workplace means HR managers should be knowledgable about law
Multi-domestic strategy
Sensitive to cultural differences but gives less attention to similarities between markets
Board and senior executive resource 2
Should be regarded as valued advisor on trends and issues, should be prepared to tackle problems such as corporate governance and ethical issues.
Instrumental HRM
Stresses the rational, quantitative and strategic aspects of managing human resources. Performance improvement and improved competitive advantage are highlighted.Really important to integrate HR policies and practices with the organisation's business strategy
Factors that influence ethical behaviour
a person's personality and culture, the situation, its importance to the individual, corporate culture, existence of clear organisational policies
Plan
action step that shows how an objective or a goal is to be achieved
Productivity
an organisations total output of goods and services divided by its total inputs
Stakeholder
any individual group or organisation that is affected by or has a vested interest in an organisation's policies and decisions
Change and cultural transformation
are the inevitable results of globalisation, new technology and competitive pressures forcing organisations and employees to become more innovative, flexible, more skilled and more productive
Knowledge workers
are the major wealth creators
