VCE Business VCE Business Management 3-4Management 3-4

Unit 4 Human Resource Unit 4 Human Resource ManagementManagement

The Human Resource The Human Resource Management FunctionManagement Function

Management of people within the Management of people within the employer-employee relationshipemployer-employee relationship

Purpose is to achieve Purpose is to achieve organizational strategic business organizational strategic business objectives while satisfying objectives while satisfying employee individual needsemployee individual needs

Historical PerspectiveHistorical Perspective Until the mid 1970’s, HR was seen as administrative.Until the mid 1970’s, HR was seen as administrative.

Looked after records, payroll, leaveLooked after records, payroll, leave Line managers and supervisors generally did recruiting, Line managers and supervisors generally did recruiting,

selecting, trainingselecting, training From the mid 1990’s, moved to a more professional From the mid 1990’s, moved to a more professional

approachapproach Increased emphasis on strategyIncreased emphasis on strategy Senior management representationSenior management representation

Contemporary viewContemporary view HR has equal status to other functional areas of business HR has equal status to other functional areas of business

(I.e. finance, marketing)(I.e. finance, marketing) HR ahs equal status to operational areasHR ahs equal status to operational areas A greater role in recruiting, selecting, training, A greater role in recruiting, selecting, training,

compensation, motivation and appraisalcompensation, motivation and appraisal

Role of HR ManagerRole of HR Manager Interpret business strategy to HR needsInterpret business strategy to HR needs Develop HR strategiesDevelop HR strategies Create policies which link to corporate strategic planningCreate policies which link to corporate strategic planning Involved in long term planningInvolved in long term planning Management of employment cycleManagement of employment cycle New strategies and innovation in performance appraisal, New strategies and innovation in performance appraisal,

skill development, remunerationskill development, remuneration Advocate for employees with managementAdvocate for employees with management Strategies to motivate, increase job satisfaction, Strategies to motivate, increase job satisfaction,

productivityproductivity Act as a change agentAct as a change agent Support and educate line managersSupport and educate line managers

HR FunctionHR Function Often referred to as Staff ManagersOften referred to as Staff Managers

Don’t decide on work to be done day to day. Act Don’t decide on work to be done day to day. Act as advisers and support networkas advisers and support network

Needs to consider internal and external Needs to consider internal and external environment influencesenvironment influences

Need to set objectives which fit the overall Need to set objectives which fit the overall business objectives and strategybusiness objectives and strategy

Note diagram on p. 190Note diagram on p. 190 Do 11.2 using three HR Ads handed out so Do 11.2 using three HR Ads handed out so

far.far. 11.311.3

Measuring HRM Measuring HRM EffectivenessEffectiveness

““Cannot manage what you do not measure”Cannot manage what you do not measure” CommitmentCommitment

Turnover, loyaltyTurnover, loyalty CompetenceCompetence

Skills, knowledge, abilitiesSkills, knowledge, abilities Cost EffectiveCost Effective

Absenteeism, health and safety, productivityAbsenteeism, health and safety, productivity CongruenceCongruence

Agreement between different stakeholders I.e. Agreement between different stakeholders I.e. Union/EmployerUnion/Employer

Measuring HRM Measuring HRM EffectivenessEffectiveness

AdaptabilityAdaptability Ready for changeReady for change

PerformancePerformance Profitability, productivityProfitability, productivity

Job SatisfactionJob Satisfaction Employee satisfactionEmployee satisfaction

Employee MotivationEmployee Motivation Do 11.4Do 11.4