A – Human Resource Management
1) Human resource management
a. What is human resource management?
Human Resource Management (HRM) – process of
- evaluating an organizations human resource needs,
- finding people to fill those needs, and
- getting the best work from each employee by providing the right incentives and job environment
b. The objectives of HRM (DOCS)
D – Develop an effective human component for the organization which will respond effectively to change
O – Obtain and develop the human resources required by the organization and the use and motivate them effectively
C – Create and maintain a co-operative climate of relationships within the organization and to this end to perform a ‘firefighting’ role dealing with disputes as they arise
S – Social and legal responsibilities will be met relating to the human resource
c. Why is HRM important?
Benefits of HRM (PEER)
P – Increased productivity
E – Enhanced group learning
E – Encouragement of initiative
R – Reduced staff turnover
d. Human resource management
HRM is based on the assumption that the management and deployment of staff is a key strategic factor in an organization’s competitive performance.
i. Armstrong – HRM as ‘strategic approach to the acquisition, motivation, development and management of the organization’s human resources.’
ii. Bratton and Gold – HRM as
- emphasizes that employees are crucial to achieving sustainable competitive advantage
- that HR practices need to be integrated with the corporate strategy
- and that HR specialists help organization controllers to meet both efficiency and equity objectives
iii. Tyson and Fell – suggest four major roles for HRM which illustrate the shift in emphasis to the strategic viewpoint (COBS)
C – Change
O – Organization’s central value system
B – Boundaries of the organization are maintained
S – Stability and continuity are provided
e. The human resource cycle (SPART)
S – Selection, people with the qualities and skills required
P – Performance, truly dependent on the other 4 components
A – Appraisal, targets set that contribute to the achievement of the overall strategic objectives of the organization
R – Reward, motivate and ensure valued staffs are retained
T – Training and Development, skills remain up-to-date, relevant, and comparable with the best in the industry
f. The Guest model of HRM – aim to result in high staff commitment and high quality flexible employees. Achieving these three HRM outcomes will facilitate the achievement of the behavioral, performance and financial outcomes.
g. Limitations of HRM models
External factors – competition, technology, political/legal, economic factors and social/cultural factors will all impact upon HRM
Internal factors – organizational structure and culture will also impact upon HRM
2) Human resource management theories
a. Ability – skill, knowledge and capability required of employees in order to fulfill the objectives of the organization
Taylor: Scientific management
According to Frederick W Taylor, management should be based on ‘well-recognized, clearly defined and fixed principles, instead of depending on more or less hazy ideas’
Principles of Scientific management (BIDS)
B – Bringing together of the science and the scientifically selected and trained men
I – Intimate co-operation between management and workers
D – Development of a true science of work
S – Scientific selection and progressive development of workers
b. Opportunities – employees work within an environment that is provided by their employer
Weber: Bureaucracy, rational form
Max Weber developed a theory of bureaucracy which divides the organization into jurisdictional areas (production, marketing, sales and so on) each with specified duties.
Lawrence and Lorcsch: Contingency theory
Contingency theory is based upon the idea that the organization’s structure and management approach be tailored to the situation
c. Motivation – an employee’s desire to perform their role. It is often linked to the outcome and any reward
i. Taylor, maximizing prosperity – using science to determine fair pay and selection. He believes that highest remuneration motivates the workers
ii. Mayo, Schein: Human relations – people are motivated by social or belonging needs
iii. Maslow’s hierarchy of needs – there are 7 innate needs that motivate people
iv. Herzberg’s two-factor content theory – motivators and hygiene factors
v. Adams: Equity theory – deals with issues of fairness
vi. McGregor’s Theory X and Theory Y
Theory X – most people dislike work and responsibility and will avoid both if possible
Theory Y – individuals wants to satisfy their individual needs through work and wish to make a contribution towards goals that they have helped to establish
vii. Vroom: Expectancy theory – human beings are rational and are aware of their goals and behavior.
There are two factors that strengthen the motivation;
1) preference for a certain outcome or valence and
2) outcome will result from certain behavior.
viii. Schein, common behavioral traits – there are four groups of man;
1) rational economic man,
2) social man,
3) self-actualizing man, and
4) complex man
ix. Goal-setting theory – goals can motivate
x. Mullin’s classifications of motivation – three classifications
1) economic reward,
2) intrinsic satisfaction and
3) social relationship
d. Psychological contracts – between individuals and organizations
3) Employee motivation: Remuneration
Pay is part of the reward system, and can be a motivator in certain circumstances.
a. Payment systems – two elements; pay and benefits
b. Pay structures
- Graded – levels of job grades
- Broad-banded structures – whole workforce
- Individual – used for senior management
- Job family structures – in terms of skill levels or responsibility
- Pay or profession/maturity curves – pay must be progressive to allocate pay fairly
- Spot rates – market price
- Rate of age – bracket for employees based on age
- Pay spines – relative across a range of roles
- Manual work pay structures – recognize the difference in status between those who work in manual roles against those in other parts of the organization
- Integrated structures – one grading system
c. Pay differentials – key to determining salaries for employees
d. Incentive schemes – to improve performance by linking it to reward
i. Performance related pay (PRP) – the most common individual PRP scheme for wage earners is straight PEICEWORK: payment of a fixed amount per unit produced, or operation completed
ii. Bonus schemes – supplementary to basic salary, and have been found to be popular with entrepreneurial types, usually in marketing and sales
- Group incentive schemes – offer a bonus for a group
- Value added schemes – improvements in productivity increases value added, and the benefit can be shared between employers and employees on an agreed formula
iii. Profit-sharing – offer employees bonuses, perhaps in the form of shares in the company, related directly to profits. This is based on the belief that all employees can contribute to profitability and that contribution should be recognized.
iv. Difficulties associated with incentive schemes
- Increased earnings simply may not be an incentive
- Workers are unlikely to be in complete control of results
- Greater specialization in production processes means that particular employees cannot be specifically credited with the success of particular products
- Instrumental orientation may encourage self-interest performance at the expense of teamwork
- It is easy to manipulate the rules of incentive scheme
- Poorly designed schemes can produce labor cost increases out of proportion to output improvements
v. Total reward schemes – is a bundle of cash and non-cash motivators offered to staff
4) Employee motivation: Other factors
a. Job redesign, rotation, enlargement and enrichment – can be used to improve the motivation of employees by introducing changes in their work
i. Job redesign – to improve performance through increasing the understanding and motivation of employees
ii. Job rotation – allows for a little variety by moving a person from one task to another
iii. Job enlargement – increases width of the job by adding extra, usually related tasks
iv. Job enrichment – increases the depth of responsibility by adding elements of planning and control to the job, therefore increasing its meaning and challenge
b. Job characteristics model – (Hackman and Oldman) sets out the links between employee motivation, satisfaction and performance and the characteristics of their job or role
MPS or Motivating Potential Score – attempt to measure a job’s potential to produce motivation and satisfaction.
Five core characteristics SITAF
S – Skill Variety: the breath of job activities and skills required
I – Task Identity: whether the job is a whole piece of work with a visible outcome
T – Task significance: the impact of the job on other people
A – Autonomy: the degree of freedom allowed in planning and executing the work
F – Feedback: the amount of information provided about the worker’s job performance
5) HR management in different types of organization
a. Project-based teams – away from traditional hierarchies towards flatter structures with reporting lines that cross functional boundaries. They operate using multi-skilled employees organized into various work team based around factors such as customer groups or particular projects
b. The new organization
i. Flat structure – more responsive because there is more direct relationship between the organization’s strategic center and the operational units serving the customer
ii. Horizontal structure – functional versatility is key to flexibility
iii. Chunked or unglued structure – teamworking and decentralization or empowerment, creating smaller and more flexible units within the overall structure
iv. Output-focused structure – focus on results, and on the customer, instead of internal processes and functions for their own sake
v. Jobless structure – the employee becomes not a job-holder but the vendor of a portfolio of demonstrated outputs and competences
c. Virtual organization (TACO)
T – Territorially organized without the overhead cost of local offices, without the difficulties of supervision, communication and control
A – Adopt flexible cross-functional and multi-skilled working, by making expertise available across the organization.
C – Centralize shared functions and service without the disadvantages of geographical centralization and with the advantages of decentralized authority
O – Outsource areas of organizational activity without losing control or co-ordination
6) Working arrangements
a. Attitudes and values
i. Multi-skilling – involves individuals who are able to perform a variety of team tasks, as required
ii. Flexibility – about being able to respond and adapt quickly to rapidly changing customer demands
iii. Empowerment – involves giving employees the freedom to take responsibility for their goals and actions
b. Flexible working arrangements – balance between professional and personal responsibilities
i. Flexitime – arrangement where employees work the standard number of hours in a workday, but are given some flexibility as to when they work these hours
ii. Compressed week – employee works the standard number of hours in one-or two week period, but compresses those hours into fewer work days
iii. Job sharing – two employees share one position
iv. Part-time/reduced hours – employee works less than the standard work week hours
v. Telecommuting or homeworking – employee works either part or all the week from a location other than the standard place of work
c. Flexibility in organizations
i. Numerical – use of temporary workers – both contractors and agency staff
ii. Financial – achieved through variable systems of reward
iii. Task – involves having employees able to undertake a wider range of tasks.
7) The HR plan
a. HR planning – concerns the acquisition, utilization, improvement and return of an enterprise’s HR
b. Strategic analysis
c. Forecasting
e. Tactical plans
f. Staffing shortages or surpluses
i. Shortage
- Internal transfers and promotions, training
- External recruitment
- Reducing labor turnover, by reviewing possible causes
- Overtime
- New equipment and training to improve productivity so reducing the need for more people
ii. Surplus
- Allowing employee numbers to reduce through natural wastage
- Restricting recruitment
- Introduce part-time working for previously full-time employees
- Redundancies – as a last resort, and with careful planning
g. Stages in human planning
h. Control over the HR plan
8) Ethical behavior
a. Ethics in business practice – the application of ethical values to business behavior
Three Elements (I DO BEST)
I – concern an individual’s professional responsibility to act
DO – concern the ‘real world’ practical actions an individual can take
BEST – concern choices between different courses of action
‘Trust me’ – family owned business
‘Involve me’ – run by board of directors
‘Show me’ – demonstration of trust
‘Prove to me’ – required independent verification and assurance
‘Obey me’ – when the law creates legislation to cure instances of unethical behavior
b. Social Responsibility policies and reports
i. Corporate social responsibility – approach to helping the community and reducing the environmental impact of the organization
ii. Corporate Responsibility reports – focus included figures or statistics covering areas such as the organization’s carbon footprint and impact on the environment
c. CIMA’s Ethical guidelines
i. Observe the highest standards of conduct and integrity
ii. Uphold the good standing and reputation of the profession
iii. Refrain from any conduct which might discredit the profession
Fundamental principles (BIOP-C)
B - Professional behavior – protect the reputation of the professional and the professional body, and comply with relevant laws and regulations
I - Integrity – must not be party to anything which is deceptive or misleading
O - Objectivity – fairness and avoiding all forms of bias, prejudice and partiality
P - Professional competence and due care – remain up-to-date with current developments and are technically competent
C - Confidentiality – confidential information will not be revealed without specific permission or unless there is a legal professional right or duty to do so
B – Human Resource Practices
1) Good HR practice
a. Recruitment and selection
Recruitment – concerned with finding applicants: going out into the labor market, communicating opportunities and information and generating interest
Selection – consists of procedures to choose the successful candidate from among those made available by the recruitment effort
b. The recruitment process
i. Job Analysis – process of collecting, analyzing and setting out information about the content of jobs in order to provide the basis for a job description and data for recruitment, training, job evaluation and performance management.
ii. Job Design – current approach is the development and outlining of competences
Competence – capacity that leads to behavior that meets the job demands within the parameters of the organizational environment and that, in turn, brings about desired results.
Different types of competences (POG)
P - Behavioural/personal – underlying personal characteristics and behavior required for successful performance, for example ability to relate well to others
O - Work-based/occupational – expectations of workplace performance and the outputs and standards people in specific roles are expected to obtain
G - Generic – can apply to all people in an occupation
Parameters of job design
a) Job specialization
b) Regulation of behavior
c) Training in skills
iii. Job Description and person specification
Job Description – sets out the purpose of the job, where it fits in the organization structure, the context of the job, the accountabilities of the job and the main task the holder carries out
4 Main Purposes of a Job Description
a) Organizational – job’s place in the organization
b) Recruitment – information for identifying the sort of person needed
c) Legal – basis for contract of employment
d) Performance – set around the job description
iv. Advertising job vacancies – the choice of advertising medium will depend on COST, FREQUENCY, the frequency with which the organization wants to advertise the job vacancy and its SUITABILITY to the target audience
v. Initial screening – reviewing curriculum vitaes and selecting some candidates for interview
c. Selection – involves a filtering process, by reviewing applications forms, interviewing and testing
i. Application forms – usual for jobs below executive level and all levels in the public sector
ii. The interview: Preparation – finding the best person for the job through direct assessment and giving the applicant the chance to learn about the business
iii. The Interview: Conduct – layout of the room and number of interviewers, manner of the interviews, questions should be put carefully, give candidates chance to talk and ask questions
iv. Type of job interview (TIPS)
T - Tandem
I - Individual
P - Panel
S - Sequential
v. Limitations of interviews CASEL
C – Contagious Bias
A – Assessment is incorrect
S – Stereotype
E – Halo Effect
L – Logical error
vi. Testing the candidates
- Psychological tests and personality test
- Cognitive test – thinking processes
- Proficiency test – measure ability to do work involved
- Psychometric test – All of the above
vii. Advantages and disadvantages of test
Advantages: (3S)
- Sensitive measuring instrument
- Standardized
- Same
Disadvantages
- Over-simplify complex issues
- Culturally-specific
- Results should only be used to support other selection methods
viii. Group selection methods – consist of series of tests, interviews and group situations over a period of two days or so, involving a small number of candidates for a job.
ix. Assessment centers – refers more the process of selection rather than to any specific building. It involves the candidate’s behavior being observed and judged by more than one assessor, using specifically developed situations.
x. Are assessment centers effective? – also used to identify training and development needs or to enhance skills.
xi. References – enables an employer to check the basic accuracy of the candidate’s CV.
xii. Negotiation - it is important that both employer and employee feel that the exchange they have contracted is a FAIR one.
xiii. Realistic job previews – know what they are letting themselves in for. It involves a prospective employee spending some time shadowing an existing employee in a similar role
d. Induction – orientation
Dialogic learning – integrating recruits into how the organization operates including the overall culture, beliefs and mission
e. Legal and ethical issues
2) Human resource development
a. Training and development strategy
b. Effective learning programs
c. Training and the organization
d. Training and the employee
e. Possible shortcoming of training
f. Training and development needs
g. Setting training objectives
h. Incorporating training needs into individual development program
i. Formal training
j. On the job training
k. The learning cycle (Kolb)
l. Training in different industries or sectors
m. Evaluating training
n. Career management
o. Management development
p. The transition from functional to general management
3) Appraisal
a. Why are appraisals needed?
b. The purpose of appraisal
c. An appraisal system
d. Problems of appraisal system
e. Appraisal techniques
f. Self-appraisal
g. Upward appraisal
h. Customer appraisal
i. 360 degree appraisal
j. The appraisal report
k. Interviews and counseling
l. Follow-up
m. Improving the appraisal system
n. Appraisal and reward
o. Management expertise and employee empowerment
p. Making improvements
1) Human resource management
a. What is human resource management?
Human Resource Management (HRM) – process of
- evaluating an organizations human resource needs,
- finding people to fill those needs, and
- getting the best work from each employee by providing the right incentives and job environment
b. The objectives of HRM (DOCS)
O – Obtain and develop the human resources required by the organization and the use and motivate them effectively
C – Create and maintain a co-operative climate of relationships within the organization and to this end to perform a ‘firefighting’ role dealing with disputes as they arise
S – Social and legal responsibilities will be met relating to the human resource
c. Why is HRM important?
Benefits of HRM (PEER)P – Increased productivity
E – Enhanced group learning
E – Encouragement of initiative
R – Reduced staff turnover
d. Human resource management
HRM is based on the assumption that the management and deployment of staff is a key strategic factor in an organization’s competitive performance.
i. Armstrong – HRM as ‘strategic approach to the acquisition, motivation, development and management of the organization’s human resources.’
ii. Bratton and Gold – HRM as
- emphasizes that employees are crucial to achieving sustainable competitive advantage
- that HR practices need to be integrated with the corporate strategy
- and that HR specialists help organization controllers to meet both efficiency and equity objectives
iii. Tyson and Fell – suggest four major roles for HRM which illustrate the shift in emphasis to the strategic viewpoint (COBS)
O – Organization’s central value system
B – Boundaries of the organization are maintained
S – Stability and continuity are provided
e. The human resource cycle (SPART)
S – Selection, people with the qualities and skills required
P – Performance, truly dependent on the other 4 components
A – Appraisal, targets set that contribute to the achievement of the overall strategic objectives of the organization
R – Reward, motivate and ensure valued staffs are retained
T – Training and Development, skills remain up-to-date, relevant, and comparable with the best in the industry
f. The Guest model of HRM – aim to result in high staff commitment and high quality flexible employees. Achieving these three HRM outcomes will facilitate the achievement of the behavioral, performance and financial outcomes.
g. Limitations of HRM models
External factors – competition, technology, political/legal, economic factors and social/cultural factors will all impact upon HRM
Internal factors – organizational structure and culture will also impact upon HRM
2) Human resource management theories
a. Ability – skill, knowledge and capability required of employees in order to fulfill the objectives of the organization
Taylor: Scientific management
According to Frederick W Taylor, management should be based on ‘well-recognized, clearly defined and fixed principles, instead of depending on more or less hazy ideas’
Principles of Scientific management (BIDS)
I – Intimate co-operation between management and workers
D – Development of a true science of work
S – Scientific selection and progressive development of workers
b. Opportunities – employees work within an environment that is provided by their employer
Weber: Bureaucracy, rational form
Max Weber developed a theory of bureaucracy which divides the organization into jurisdictional areas (production, marketing, sales and so on) each with specified duties.
Lawrence and Lorcsch: Contingency theory
Contingency theory is based upon the idea that the organization’s structure and management approach be tailored to the situation
c. Motivation – an employee’s desire to perform their role. It is often linked to the outcome and any reward
i. Taylor, maximizing prosperity – using science to determine fair pay and selection. He believes that highest remuneration motivates the workers
ii. Mayo, Schein: Human relations – people are motivated by social or belonging needs
iii. Maslow’s hierarchy of needs – there are 7 innate needs that motivate people
iv. Herzberg’s two-factor content theory – motivators and hygiene factors
v. Adams: Equity theory – deals with issues of fairness
vi. McGregor’s Theory X and Theory Y
Theory X – most people dislike work and responsibility and will avoid both if possible
Theory Y – individuals wants to satisfy their individual needs through work and wish to make a contribution towards goals that they have helped to establish
vii. Vroom: Expectancy theory – human beings are rational and are aware of their goals and behavior.
There are two factors that strengthen the motivation;
1) preference for a certain outcome or valence and
2) outcome will result from certain behavior.
viii. Schein, common behavioral traits – there are four groups of man;
1) rational economic man,
2) social man,
3) self-actualizing man, and
4) complex man
ix. Goal-setting theory – goals can motivate
x. Mullin’s classifications of motivation – three classifications
1) economic reward,
2) intrinsic satisfaction and
3) social relationship
d. Psychological contracts – between individuals and organizations
- Coercive contract – individual considers that they are being forced to contribute their efforts and energies involuntarily
- Calculative contract – accepted voluntarily by the individual
- Co-operative contract – individual identifies themselves with the organization and its goals to that they actively seek to contribute further to the achievement of those goals
3) Employee motivation: Remuneration
Pay is part of the reward system, and can be a motivator in certain circumstances.
a. Payment systems – two elements; pay and benefits
b. Pay structures
- Graded – levels of job grades
- Broad-banded structures – whole workforce
- Individual – used for senior management
- Job family structures – in terms of skill levels or responsibility
- Pay or profession/maturity curves – pay must be progressive to allocate pay fairly
- Spot rates – market price
- Rate of age – bracket for employees based on age
- Pay spines – relative across a range of roles
- Manual work pay structures – recognize the difference in status between those who work in manual roles against those in other parts of the organization
- Integrated structures – one grading system
c. Pay differentials – key to determining salaries for employees
d. Incentive schemes – to improve performance by linking it to reward
i. Performance related pay (PRP) – the most common individual PRP scheme for wage earners is straight PEICEWORK: payment of a fixed amount per unit produced, or operation completed
ii. Bonus schemes – supplementary to basic salary, and have been found to be popular with entrepreneurial types, usually in marketing and sales
- Group incentive schemes – offer a bonus for a group
- Value added schemes – improvements in productivity increases value added, and the benefit can be shared between employers and employees on an agreed formula
iii. Profit-sharing – offer employees bonuses, perhaps in the form of shares in the company, related directly to profits. This is based on the belief that all employees can contribute to profitability and that contribution should be recognized.
iv. Difficulties associated with incentive schemes
- Increased earnings simply may not be an incentive
- Workers are unlikely to be in complete control of results
- Greater specialization in production processes means that particular employees cannot be specifically credited with the success of particular products
- Instrumental orientation may encourage self-interest performance at the expense of teamwork
- It is easy to manipulate the rules of incentive scheme
- Poorly designed schemes can produce labor cost increases out of proportion to output improvements
v. Total reward schemes – is a bundle of cash and non-cash motivators offered to staff
4) Employee motivation: Other factors
a. Job redesign, rotation, enlargement and enrichment – can be used to improve the motivation of employees by introducing changes in their work
i. Job redesign – to improve performance through increasing the understanding and motivation of employees
ii. Job rotation – allows for a little variety by moving a person from one task to another
iii. Job enlargement – increases width of the job by adding extra, usually related tasks
iv. Job enrichment – increases the depth of responsibility by adding elements of planning and control to the job, therefore increasing its meaning and challenge
b. Job characteristics model – (Hackman and Oldman) sets out the links between employee motivation, satisfaction and performance and the characteristics of their job or role
MPS or Motivating Potential Score – attempt to measure a job’s potential to produce motivation and satisfaction.
Five core characteristics SITAF
I – Task Identity: whether the job is a whole piece of work with a visible outcome
T – Task significance: the impact of the job on other people
A – Autonomy: the degree of freedom allowed in planning and executing the work
F – Feedback: the amount of information provided about the worker’s job performance
5) HR management in different types of organization
a. Project-based teams – away from traditional hierarchies towards flatter structures with reporting lines that cross functional boundaries. They operate using multi-skilled employees organized into various work team based around factors such as customer groups or particular projects
b. The new organization
i. Flat structure – more responsive because there is more direct relationship between the organization’s strategic center and the operational units serving the customer
ii. Horizontal structure – functional versatility is key to flexibility
iii. Chunked or unglued structure – teamworking and decentralization or empowerment, creating smaller and more flexible units within the overall structure
iv. Output-focused structure – focus on results, and on the customer, instead of internal processes and functions for their own sake
v. Jobless structure – the employee becomes not a job-holder but the vendor of a portfolio of demonstrated outputs and competences
c. Virtual organization (TACO)
A – Adopt flexible cross-functional and multi-skilled working, by making expertise available across the organization.
C – Centralize shared functions and service without the disadvantages of geographical centralization and with the advantages of decentralized authority
O – Outsource areas of organizational activity without losing control or co-ordination
6) Working arrangements
a. Attitudes and values
i. Multi-skilling – involves individuals who are able to perform a variety of team tasks, as required
ii. Flexibility – about being able to respond and adapt quickly to rapidly changing customer demands
iii. Empowerment – involves giving employees the freedom to take responsibility for their goals and actions
b. Flexible working arrangements – balance between professional and personal responsibilities
i. Flexitime – arrangement where employees work the standard number of hours in a workday, but are given some flexibility as to when they work these hours
ii. Compressed week – employee works the standard number of hours in one-or two week period, but compresses those hours into fewer work days
iii. Job sharing – two employees share one position
iv. Part-time/reduced hours – employee works less than the standard work week hours
v. Telecommuting or homeworking – employee works either part or all the week from a location other than the standard place of work
c. Flexibility in organizations
i. Numerical – use of temporary workers – both contractors and agency staff
ii. Financial – achieved through variable systems of reward
iii. Task – involves having employees able to undertake a wider range of tasks.
7) The HR plan
a. HR planning – concerns the acquisition, utilization, improvement and return of an enterprise’s HR
- Budgeting and cost control
- Recruitment
- Retention
- Downsizing
- Training and retraining to enhance the skills base
- Dealing with changing circumstances
b. Strategic analysis
- Environment – population and education trends, policies on the employment of women and on pension ages and trends generally in the employment market must be monitored
- HR strengths, weaknesses, opportunities and threats need to be analyzed
- HR utilization – how effectively the organization is currently utilizing its staff
- Objective – core and subsidiary objectives should be analyzed to identify the manpower implications
c. Forecasting
- Estimating demand – accurate forecasts of turnover and productivity
- Estimating supply – current works and the external labor market
- Position survey – compares the demand and supply
- Recruitment plan – numbers, types of people, when required, recruitment program
- Training plan – numbers of trainees required and/or existing staff needing training, training program
- Redevelopment plan – program for transferring, retraining employees
- Productivity plan – improving productivity, reducing manpower costs, setting productivity targets
- Redundancy plan – where and when redundancies are to occur, policies for selection and declaration of redundancies, re-development, re-training, or relocation of redundant employees, policy on redundancy payments, union consultation
- Retention plan – actions to reduce avoidable labor wastage
e. Tactical plans
- Pay and productivity bargaining
- Physical conditions of employment
- Management and technical development and career development
- Organization and job specifications
- Recruitment and redundancies
- Training and retraining
- Staffing cost
f. Staffing shortages or surpluses
i. Shortage
- Internal transfers and promotions, training
- External recruitment
- Reducing labor turnover, by reviewing possible causes
- Overtime
- New equipment and training to improve productivity so reducing the need for more people
ii. Surplus
- Allowing employee numbers to reduce through natural wastage
- Restricting recruitment
- Introduce part-time working for previously full-time employees
- Redundancies – as a last resort, and with careful planning
g. Stages in human planning
h. Control over the HR plan
- Actual numbers recruited, leaving and promoted vs planned numbers
- Actual pay, conditions of employment and training vs assumptions in the HR plan
- Periodical review of HR plan
8) Ethical behavior
a. Ethics in business practice – the application of ethical values to business behavior
Three Elements (I DO BEST)
I – concern an individual’s professional responsibility to act
DO – concern the ‘real world’ practical actions an individual can take
BEST – concern choices between different courses of action
‘Trust me’ – family owned business
‘Involve me’ – run by board of directors
‘Show me’ – demonstration of trust
‘Prove to me’ – required independent verification and assurance
‘Obey me’ – when the law creates legislation to cure instances of unethical behavior
b. Social Responsibility policies and reports
i. Corporate social responsibility – approach to helping the community and reducing the environmental impact of the organization
ii. Corporate Responsibility reports – focus included figures or statistics covering areas such as the organization’s carbon footprint and impact on the environment
c. CIMA’s Ethical guidelines
i. Observe the highest standards of conduct and integrity
ii. Uphold the good standing and reputation of the profession
iii. Refrain from any conduct which might discredit the profession
Fundamental principles (BIOP-C)
I - Integrity – must not be party to anything which is deceptive or misleading
O - Objectivity – fairness and avoiding all forms of bias, prejudice and partiality
P - Professional competence and due care – remain up-to-date with current developments and are technically competent
C - Confidentiality – confidential information will not be revealed without specific permission or unless there is a legal professional right or duty to do so
B – Human Resource Practices
1) Good HR practice
a. Recruitment and selection
Recruitment – concerned with finding applicants: going out into the labor market, communicating opportunities and information and generating interest
Selection – consists of procedures to choose the successful candidate from among those made available by the recruitment effort
b. The recruitment process
i. Job Analysis – process of collecting, analyzing and setting out information about the content of jobs in order to provide the basis for a job description and data for recruitment, training, job evaluation and performance management.
ii. Job Design – current approach is the development and outlining of competences
Competence – capacity that leads to behavior that meets the job demands within the parameters of the organizational environment and that, in turn, brings about desired results.
Different types of competences (POG)
O - Work-based/occupational – expectations of workplace performance and the outputs and standards people in specific roles are expected to obtain
G - Generic – can apply to all people in an occupation
Parameters of job design
a) Job specialization
b) Regulation of behavior
c) Training in skills
iii. Job Description and person specification
Job Description – sets out the purpose of the job, where it fits in the organization structure, the context of the job, the accountabilities of the job and the main task the holder carries out
4 Main Purposes of a Job Description
a) Organizational – job’s place in the organization
b) Recruitment – information for identifying the sort of person needed
c) Legal – basis for contract of employment
d) Performance – set around the job description
iv. Advertising job vacancies – the choice of advertising medium will depend on COST, FREQUENCY, the frequency with which the organization wants to advertise the job vacancy and its SUITABILITY to the target audience
v. Initial screening – reviewing curriculum vitaes and selecting some candidates for interview
c. Selection – involves a filtering process, by reviewing applications forms, interviewing and testing
i. Application forms – usual for jobs below executive level and all levels in the public sector
ii. The interview: Preparation – finding the best person for the job through direct assessment and giving the applicant the chance to learn about the business
iii. The Interview: Conduct – layout of the room and number of interviewers, manner of the interviews, questions should be put carefully, give candidates chance to talk and ask questions
iv. Type of job interview (TIPS)
I - Individual
P - Panel
S - Sequential
v. Limitations of interviews CASEL
A – Assessment is incorrect
S – Stereotype
E – Halo Effect
L – Logical error
vi. Testing the candidates
- Psychological tests and personality test
- Cognitive test – thinking processes
- Proficiency test – measure ability to do work involved
- Psychometric test – All of the above
vii. Advantages and disadvantages of test
Advantages: (3S)
- Sensitive measuring instrument
- Standardized
- Same
Disadvantages
- Over-simplify complex issues
- Culturally-specific
- Results should only be used to support other selection methods
viii. Group selection methods – consist of series of tests, interviews and group situations over a period of two days or so, involving a small number of candidates for a job.
ix. Assessment centers – refers more the process of selection rather than to any specific building. It involves the candidate’s behavior being observed and judged by more than one assessor, using specifically developed situations.
x. Are assessment centers effective? – also used to identify training and development needs or to enhance skills.
xi. References – enables an employer to check the basic accuracy of the candidate’s CV.
xii. Negotiation - it is important that both employer and employee feel that the exchange they have contracted is a FAIR one.
xiii. Realistic job previews – know what they are letting themselves in for. It involves a prospective employee spending some time shadowing an existing employee in a similar role
d. Induction – orientation
Dialogic learning – integrating recruits into how the organization operates including the overall culture, beliefs and mission
e. Legal and ethical issues
2) Human resource development
a. Training and development strategy
b. Effective learning programs
c. Training and the organization
d. Training and the employee
e. Possible shortcoming of training
f. Training and development needs
g. Setting training objectives
h. Incorporating training needs into individual development program
i. Formal training
j. On the job training
k. The learning cycle (Kolb)
l. Training in different industries or sectors
m. Evaluating training
n. Career management
o. Management development
p. The transition from functional to general management
3) Appraisal
a. Why are appraisals needed?
b. The purpose of appraisal
c. An appraisal system
d. Problems of appraisal system
e. Appraisal techniques
f. Self-appraisal
g. Upward appraisal
h. Customer appraisal
i. 360 degree appraisal
j. The appraisal report
k. Interviews and counseling
l. Follow-up
m. Improving the appraisal system
n. Appraisal and reward
o. Management expertise and employee empowerment
p. Making improvements
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