Unit 4 Area of Study 1: The Human Resource Management Function

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Unit 4 Area of Study 1: The Human Resource Management Function. Chapter 10: Management of the employment cycle. The Employment Cycle. The stages an employee progresses through from the time they are employed until they leave the organisation
Unit 4 Area of Study 1: The Human Resource Management FunctionChapter 10: Management of the employment cycleThe Employment Cycle
  • The stages an employee progresses through from the time they are employed until they leave the organisation
  • Pattern repeats itself as new employees are hired to replace those leaving
  • Three phases of the employment cycleHR PlanningJob analysis and job designRecruitmentSelectionEmployment ArrangementsRemunerationVoluntary MethodsInvoluntary MethodsUnfair DismissalTermination ManagementOutplacementTransition ServicesInductionTraining and developmentPerformance ManagementRecognition and rewardsThe Establishment PhaseHuman Resource Planning
  • Planning for future personnel needs, taking into account both internal activities and factors in the external environment
  • Awareness of factors from internal and external environment include:
  • Structural changes in the labour market – decline in manufacturing industries
  • Work patterns are changing – flexible working hours and a move away from traditional working week
  • (continued on next slide)
  • Length of working life is changing – later entry into employment, attitudes to retirement
  • Change in skills and education expectations – more people seeking tertiary qualifications
  • Labour shortage within the next decade due to the ageing of Australia’s working population
  • Increasing demand for work-life balance
  • Generational change – difference need to be acknowledged and worked around
  • Change in strategic direction of organisations – downsizing operations
  • HR Management must plan to assist the organisation to:
  • Meet current employment requirements in all phases of the employment cycle
  • Cater for future needs by determining how many employees will be required and what specific skills they must have
  • Ensure that the required human resources will be available to achieve the organisations strategic plan
  • Be in a position to assist the organisation to respond to external factors
  • Activity 10.1
  • Job Analysis
  • Job analysis: systematic process of gathering information relating to a job being performed. Finding out all the information about a job.
  • Job design: creating a new job or altering an existing position.
  • Job description: written statement of tasks performed, how and why they are done (job title, summary, responsibilities, duties, key performance indicators)
  • Job specification: the person’s experience, qualifications, skills, abilities, knowledge, remuneration and special requirements of the person
  • Methods used to conduct a job analysis:
  • 1. Interviewing the present job holder – can be time consuming
  • 2. Questionnaires – allows for information on a large number of jobs to be collected in a short period of time
  • 3. Observation – job holder could be watched
  • 4. Supervisory reports – details provided by supervision to give perception of what the job entails
  • 5. Log books and daily work diaries – completed by the job holder
  • Activity 10.2 Worksheet
  • Recruitment
  • The process of finding the best qualified pool of applicants
  • Process begins with:
  • Identifying human resource requirements
  • Determining where the qualified pool of applicants can be found (recruitment sources)
  • Choosing a specific means of attracting employees to the organisation (recruitment methods)
  • Identifying human resource requirements
  • Ensure that people recruited and selected have the unique skills and attributes required by the organisation
  • Determine whether the focus is on technical skills and formal qualifications or personality and the potential for personal and career development
  • Recruitment Sources
  • Internal Recruitment: positions advertised within the organisation to allow employees career advancement by transferring or being promoted
  • External Recruitment: Locating candidates from outside of the organisationRecruitment Methods
  • Newspapers – large, well-known employment sections in certain editions of local and national newspapers
  • Internet sites – those seeking jobs can enter specific details of the position they want
  • Business websites – often used in conjunction with other methods
  • Recruitment agencies – time is money so an organisation may outsource the initial stages of recruitment who screens out non-suitable applicants
  • Word of mouth – ‘head hunting’ is actively pursuing one person wanted for a position and offering them an attractive package to leave organisation for which they currently work
  • Activity 10.3
  • Activity 10.5
  • SelectionSelection CriteriaA list of what the organisation is looking for in the applicants for new positionsInclude:Qualifications or experienceSkillsPersonal qualities
  • Selection is the process undertaken by an organisation to decide whether to make a job offer to a candidate
  • Receipt of applicationInitial screeningEliminates applicants who do not possess the skills and expertise required for the positionShortlist of applicants to be created for interviewing
  • Application: the letter or communication used in expressing interest in a job or advertised vacancy
  • Application form: basic source of employment information covering qualifications, experience and other job-related data
  • InterviewsTestingProvides a scientific component to recruitmentAptitude test: test of special abilities that are required for a specific jobPersonality or temperament questionnaireMotivational questionnaireCompetency testingPhysical examination
  • 1. Planning the interview
  • 2. Create the interview environment
  • 3. Opening the interview
  • 4. Questioning
  • 5. Understand the legal requirements
  • 6. Listen and observe
  • 7. Sell the job and the organisation
  • 8. Close the interview
  • 9. Evaluate the applicants
  • Background investigationAdvising applicants of outcomePosition needs to be officially offered to the successful applicantRemaining unsuccessful short-listed applicants need to be advised of their non-success
  • Reference checks provide important opportunities to learn more about candidates
  • Wise to check academic qualifications
  • Police check can be undertaken
  • Employment Arrangements
  • Permanent full-time basis – continuing contract of employment, working 38 hours per week, entitled to salary or wages, leave entitlements and superannuation as well as long service leave
  • Permanent part-time basis – continuing contract working fewer hours than full-time, same entitlements made on a pro-rata basis
  • Casual basis – short-term, irregular or seasonal work. Usually paid on an hourly basis and no employment benefits such as leave
  • Fixed-term basis – either full-time or part-time for project work or to replace employees absent on long service or parental leave
  • Types of remuneration
  • Wages – worked out on an hourly basis, overtime paid if an employee exceeds ordinary hours. Penalty rates may be paid for Sundays and public holidays.
  • Salary – annual figure usually paid on a monthly or fortnightly basis. Overtime not paid to salaried employees.
  • Packages – use for senior positions, include a salary component, performance-based pay, company car, share options and other fringe benefits
  • Benefits – can be categorised as dependent care assistance programs (family care, maternity/paternity leave, alternative work arrangements) or benefit plans (additional superannuation, travel insurance, life insurance, medical benefits)
  • Maintenance PhaseInduction
  • Induction: all the activities undertaken by the organisation to introduce a new employee to the organisation
  • Aim is to familiarise the new employee with their workplace so that they can perform to their maximum ability as soon as possible
  • Induction ProceduresBenefits of InductionFor the organisation: recruitment process costly and a good induction program can help the employee feel motivated and ensure morale is high.Allows them to be productive almost straight awayFor the employee:Will be put at ease with a well-conducted induction programFeel a sense of purpose and achievement, increasing their feelings of self-esteem
  • New employee introduced to colleagues and organisational structure and day-to-day practices
  • Often a buddy or mentor is assigned to the new employee to show the new person the ropes
  • Policies and procedures of the organisation should be explained to the new staff member. Can be a formal induction process.
  • Even mundane matters should be covered
  • Training and Development
  • Training: process of developing workplace skills needed to do a job
  • May be necessary right at the start of employment.
  • HR Manager conducts a training needs analysis:
  • Who needs to be trained?
  • Should training be done at the organisation or outside?
  • If internally should training be provided by someone in-house or by an external provider?
  • How is the training going to be evaluated?
  • Will follow-up training be required at a later date?
  • Development: activities an employee undertakes to help prepare them to take on more responsibility in the future (e.g. promotions and long term opportunities)
  • Training is often skill based (e.g. learning how to operate a new piece of machinery) whereas development focuses more on increasing the knowledge base of employees.
  • Benefits of training and development:
  • Improved employee performance and therefore profitability
  • Reduced absenteeism and reduced staff turnover
  • Increased efficiency in how things are done (processes)
  • Increased job satisfaction, morale and motivation among employees
  • Recognition and Rewards
  • Recognition programs may acknowledge achievement by giving financial and/or non-financial rewards
  • Rewards may be given for:
  • Achieving a target
  • Being the best compared with others
  • Performance Management
  • Performance management: the various methods of achieving the maximum performance levels that are possible from employees
  • Effective performance management ensures that:
  • Jobs are well designed in the first place
  • Skilled employees are hired to do the job
  • Employees are trained properly
  • Employees are appropriately rewarded for good performance
  • Performance appraisal: evaluations of an employee’s work over a period of time
  • Involves:
  • Assessing how well an employee is doing their job
  • Providing feedback to the employee about job performance
  • Agreeing on new objectives and establishing a plan to improve future performance
  • Purpose of appraisal is to:
  • Identify what objectives are the most important to accomplish
  • Establish how objectives are measured so that performance can be monitor
  • Make individual employees accountable for their performance
  • Help improve an employee’s performance
  • Identify training needs
  • Performance appraisal outcomes
  • Remuneration and rewards
  • Training and development
  • Counselling
  • Job promotion
  • Job rotation/transfer
  • Termination
  • Termination PhaseVoluntary Termination Methods
  • Resignation: An employee chooses to leave an organisation – often this is because they have another job to go to
  • An exit interview is recommended as it helps to highlight if there are any organisational problems causing the resignation
  • Retirement: The situation where an employee has decided that they are at the end of their working life.
  • Has traditionally ben at the age of 65 for men and 60 for women but is not compulsory in Australia
  • Involuntary Termination Methods
  • Redundancy: when there is no longer a position for one or more employees. Redundancy packages are offered which is usually an amount of money based on the number of employment at that organisation
  • Retrenchment: Employees are ‘let go’ based on the financial needs of the organisation (e.g. downsizing)
  • Dismissal: Situation where an employee is fired due to a serious breach of their employment contract or fail to perform the job adequately (have been put ‘on notice’ and fail to improve their performance)
  • Effects on an organisation from involuntary employee departure.Unfair Dismissal
  • An employee can apply to Fair Work Australia if they believe their employment was terminated for an unlawful or discriminatory reason
  • Termination Management
  • HR Manager must ensure that an employee who is leaving is given certain entitlements
  • It is also their job to see that the transition from employment to termination is conducted appropriately and within the law
  • In the case of redundancy the HR manager should:
  • Have explored the possibility of redeploying or relocating the employee
  • Give the employee reasonable notice of the expected redundancy
  • Provide reasonable redundancy benefits
  • Provide additional services
  • Ensure the process of choosing who is to be made redundant is fair and unbiased
  • Outplacement Services
  • Services provided to assist employees who have been retrenched to gain new work
  • 60% of LSOs in Australia not provide outplacement consultants to assist employees making the transition
  • Involves:
  • Counselling to counteract negative feelings associated with retrenchment
  • Skill development in how to look for employment opportunities
  • Assistance in writing resumes, interview techniques
  • Cost is borne by the former employer and is seen as rewarding the employee for loyal service
  • Shows remaining staff that organisation cares about its people
  • Transition Services
  • Provided to employees who are retiring and need assistance to organise their finances, lifestyle planning and volunteering activities
  • Employees often find it hard to completely cut themselves off from the business world
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