Human resources management

In this Lecture

The Importance of Human Resource Management

The Human Resource Management process How the HRM process looks – from the

other side

A very very short history lesson

Personnel Management Human Resources Strategic Human Resources

Sources of competitive advantage

Importance of human resource management HRM is an important tool in implementing strategy

De Cieri, H., & Kramer, R. (2005). Human resource management in Australia: Strategy, people, performance. (2nd ed.). North Ryde, N.S.W.: McGraw-Hill.

The importance of HRM (cont’d) What HR does is about their strategy how do you invest in people?

What is Human Resource Management?

The policies, practices and systems that influence employees’ behaviour, attitudes and performance.

Many refer to HRM as involving ‘people practices’.

What are they thinking?

Job analysis and design Human resource inventory Job analysis Job description Job specification

Job description: (Maintenance Mechanic) •  General Description of Job Duties: General maintenance and

repair of all equipment used in a particular district. •  1. Essential Duty (40%) : Maintenance of Equipment

–  Tasks: Keep a log of all maintenance performed on equipment.

–  Replace parts and fluids according to maintenance schedule.

•  2. Essential Duty (40%): Repair of Equipment –  Tasks: Requires inspection of equipment and a

recommendation that a piece be scrapped or repaired. •  3. Essential Duty (10%): Testing and Approval

–  Tasks: Ensure that all required maintenance and repair has been done according to manufacturer specs.

•  4. Essential Duty(10%): Maintain Stock –  Tasks: Maintain inventory of parts needed for maintenance

and repair of equipment. Responsible for ordering parts at lowest cost

•  Nonessential Functions: Other duties as assigned.

HR in practice

Job analysis and job design United Parcel Service (UPS) Job analysis

–  Time and motion studies –  1000 industrial engineers rode in delivery vans and supervised

employee performance Job (re)design

–  Scripted interactions Outcomes

–  Productivity growth –  Organisational growth –  Profitability –  Employee outcomes

Job analysis in practice

Recruitment Recruitment Aims of recruitment

Selection Selection Selection methods

Selection Selection method standards

–  Reliability (of prediction): Degree of consistency with which a selection device measures the same thing.

–  Validity (of prediction): Proven relationship between the selection device used and relevant criterion for successful performance in an organisation

–  Generalisability –  Utility –  Legality

Selection decision outcomes

Employee learning and development Training vs Development Presentation methods Group-building methods Hands-on methods

Employee learning and development

What does effective training do? –  Affective outcomes –  Cognitive outcomes –  Skill-based outcomes –  Results –  Return on investment (ROI)

Purposes of training and development –  Improve performance –  Update employee skills –  Solve organisational problems –  Orient new employees –  Satisfy personal growth needs

As you work you want

More Pay Promotion Recognition

Performance management Performance management system

–  Establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions.

–  Ensuring that employees’ activities and outputs are aligned with the organisation’s goals.

Performance appraisal –  Obtaining data on how well an employee is doing his or her job

Performance feedback (Actionable feedback article) –  Providing data to employees about their performance effectiveness

Performance appraisal methods –  Written essays, Critical incidents, Graphic rating scales, Behaviorally

anchored rating scales (BARS), Multiperson comparisons, Management By Objectives (MBO), 360 Degree feedback

Compensation and benefits Benefit of a fair, effective & appropriate compensation system

–  Helps attract and retain high-performance employees –  Impacts on the strategic performance of the firm

Types of compensation –  Base wage or salary –  Wage and salary add-ons –  Performance related pay

§  Merit pay §  Incentive pay §  Profit sharing §  Ownership §  Skill-based §  Group incentives/awards

Who should engage in the HR process Dedicated HR staff – What you need to

know Line managers – What you need to know