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What is Human Resource Management??

• HRM is the process by which an organisation attracts, develops and rewards its workforce.

• This involves managing the employees in the business by ensuring that the business finds, keeps and makes the best use of them.

• HRM works best when you match your organisation’s goals with the employees needs

• This means hiring people with the qualifications, abilities and attitudes which the organisation needs to achieve its goals

Functions of a Human Resource Manager

1. Manpower Planning

2. Recruitment and Selection

3. Training and Development

4. Performance Appraisal

5. Rewarding Employees

6. Managing Employer

1. Manpower Planning• Manpower Audit – compile a record of the types and levels of skills

in the workplace at present• Forecast future needs – estimate future sales and anticipated

changes in the business environment• Compare with present day – check if you’ll need additional

resources• Plan to meet needs – increase or decrease the manpower

resources as required by analysis; this is done through a combination of:• Natural Wastage• Redundancies• Promotion• Redeployment• Recruitment

• Ensures the business always has enough workers.• Saves money by ensuring that there are not too many employees.

2. Recruitment & Selection• Preparation - Job Description & Person Specification• Find the Candidates - Advertise• Screen Candidates• Interview• Selection• Induction

2. Recruitment & Selection cntd…

Recruitment• This means finding suitable people for a job and persuading

them to apply for it.• It involves preparing a job description and a person

specification.• The HR mngr must find the person through internal/external

recruitment.

Selection• This means choosing the best applicant out of all who have

applied.• First the HR mngr will screen out the applicants who don’t

meet the requirements and will then use tests, interviews etc to find the best candidate.

2. Recruitment & Selection cntd…

Stages in Recruitment and Selection

1. Prepare a Job Description• This describes the duties and responsibilities of the job

e.g. the salary, hours etc.

2. Prepare a Person Specification• This describes the type of person needed for the job e.g.

experience, qualifications etc.• The managers can then use information from both to draft

an advertisement.

3. Encourage Suitable Candidate to Apply• The manager will now use internal/external recruitment to

find a suitable candidate.

2. Recruitment & Selection cntd…External Recruitment - This means finding someone from outside the business to apply

Sources:• Media advertisements (newspaper, radio)• Recruitment agencies (irishjobs.ie)• FAS-national training and employment authority and keeps

register of all those looking for a job.• Headhunting (approaching people in rival businesses)

Advantages:• New person may bring new, fresh ideas• Hiring outsider may cause less jealousy than internal recruitment.• By opening the vacancy up to outside word the business can find

best qualified person.

2. Recruitment & Selection cntd…

Internal Recruitment - This means finding someone from those who already work in the business

Sources• Promotion• Demotion• Transfer (person in one branch moved to another branch).

Advantages• Existing employees already know how the business works.• Manager knows exactly how good the employee is.• It provides career paths for employees and motivates them.• It is cheaper and quicker than external as there is no

advertisements

2. Recruitment & Selection cntd…Curriculum Vitae (CV)• The document prepared by an applicant for a job which summarises the

following information:• Name/Address/Education/Experience/Hobbies/References/

Signature/Date

Application Form• This is printed by employer which asks personal questions to the job

applicants.• It is sent out to the applicants who send it back after.• It asks things such as qualification, work experience, what attracted

them to the job etc.

Letter of Application/Covering Letter• Candidates should always submit this with their application.• It introduces himself to the employer, talking about why they want the

job and what qualities they have.

2. Recruitment & Selection cntd…4. Screening• The HR manager now examines all applications and then rejects the

ones who do not meet the requirements.• Those who have been screened out are “shortlisted” for the next

stage

5. Selection Tests• The applicants now go through a serious of tests e.g. intelligence,

aptitude, personality.

6. Interview• Purpose of this is to find out more about the applicant and is most

common selection technique in Ireland but has flaws.• To overcome interviewer bias many businesses use panel interviews.• The business might also use a stress interview to see how the

candidate reacts.

2. Recruitment & Selection cntd…

7. Check References• The HR manager checks the references to confirm the

information given about the candidate and to get a different perspective on them.

8. Offer the Job• The HR manager offers the job to the best candidate.• If he declines it, the offer is made to next best applicant

and so on.• When an applicant accept, a contract of employment is

drawn up which sets out the duties and behaviour expected which both people sign.

2. Recruitment & Selection cntd…

Importance of Recruitment

1. Drawing up a job description/person specification helps business to find exactly the right person needed.

2. Good recruitment discourages unsuitable people from applying which saves time and money

Importance of Selection

1. Choosing candidate who shares same beliefs will lead to less industrial action.

2. Choosing the right person is essential in ensuring that the job is done well.

3. Training & Development• Induction – work, policies, codes/rules, people• On the job Training – work shadowing• Off the courses – training centre• Benefits - Ensure adequate skills, increase morale, focus

and productivity• Drawbacks – Can cost a lot of money, other employees

may become resentful if not chosen to go for training

3. Training & Development cntd…ON-­THE-­JOB­Training• This is teaching the employee what he needs to do the job while he is in a

normal working situation. • The employee learns through practical experience.• Techniques include job rotation where the employee moves from one

department to another to learn about each one.

OFF-­THE-­JOB­Training• This is teaching the employee the skills needed away from normal working

situation. • The employee learns by attending courses.• Techniques used include evening classes, conferences etc.

• Example of training - showing employees how to use company email system

3. Training & Development cntd…

Development• This is giving the employee life- long skills to help them to

grow as individuals and tackle any future challenges. • It teaches them skills which can be used in any job in the

future and enables employees to seek more challenging work.

• Example of development - sending employees on communication skills courses

3. Training & Development cntd…

Importance­of­Training­and­Development• It gives the workers the skills needed to do job and make

better quality products.• It gives them a variety of skills which makes them more

flexible to change.• It means workers will need less supervisions which saves

managers time.• It means that there is less industrial conflict and the

workers are doing their job well.

4. Performance Appraisal• Process of Reviewing the performance of an employee• Measures progress• Identifies factors which have contributed (either way)• Agree corrective action (if required)• Set new targets• Discuss skills• Review employees career plan

• Benefits – encourages employees to take responsibility for their own development, motivates, offers reassurance and identifies employee’s needs

4. Performance Appraisal cntd…• This­involves­the­HR­manager­assessing­how­each­worker­is­doing­and­grading­them­on­how­well­they­perform­tasks.­

• Workers­who­score­highly­may­be­rewarded,­those­who­score­badly­will­be­given­more­training

Steps:

1. Employee and manager meet to set targets.

2. Manager regularly evaluates the employee’s progress

3. The manager fills in a performance appraisal form and the two meet to discuss the results.

Importance­of­Performance­Appraisal• It identifies employees who need training• It identifies employees who are suitable for promotion• It helps decide future pay rises and bonuses/motivates employees• It improves communications between managers and employees as it involves

regular meetings.

5. Rewarding EmployeesPay­and­Rewards

Financial

1. Basic Wage• The employee is paid a fixed amount each week/month e.g. teachers.• Advantage - easy for employer to operate.• Disadvantage - does not give employee incentives.

2. Hourly Rate• The employee is paid a fixed hourly rate. Hours in excess of the set

amount are paid at a higher rate (overtime).• Advantage - easy for employer to operate.• Disadvantage - may cause employee to “drag out” work to earn more

3. Piece Rate• Employee is paid fixed amount for each item he makes.• Advantage - encourages employee to work harder.• Disadvantage - employees may rush work and make mistakes.

5. Rewarding Employees cntd…4. Commission• Employee received a percentage of the sales they make.• Advantage - works as incentive.• Disadvantage - may cause salespeople to be too pushy and turn customers off.

5. Bonus• Additional lump-sum payment given to employee when he reaches his target and is usually

given at the end of the year.• Advantage - ­encourages employee to work towards target.

6. Benefits- in- kind• These are non-cash payments e.g. company cars, subsidised meals.• They are used to raise the status of the job and improve moral

7. Share Ownership• Employees are given free or cheap shares in business.• It provides a big incentive as the better the business does, the better the dividend the

employee will receive and the more their shares will be worth.

8. Profit sharing• Employees are paid a percentage of the profit made by the business.• Advantages - Employees are more motivated/helps to attract new staff/employees feel part

of business which leads to better industrial relations.

5. Rewarding Employees cntd…Non-­Financial­Rewards

1.­Job­Enlargement• Employees are given extra duties to relieve their boredom but without

extra responsibility.

2.­Job­Enrichment• Employees are given greater responsibility with tasks that develop them

and get them to use their full abilities.

3.­Improved­Working­Conditions• Employees may receive flexitime which is a huge benefit.• They may also receive longer holidays.

Importance­of­Pay­and­Rewards• Good pay and rewards motivates employees to work harder and produce

better products.• It also helps to attract the very best employees.

6. Managing EmployeeEmployer/Employee­Relationships• This is to try and improve the industrial relations. • This refers to how the employers and employees communicate with each

other and get along

Importance­of­Good­Employer/Employee­Relationships

1. The employees will be happier in the work and will therefore become more motivated to do their best for the business.

2. The employees will put in extra effort and work harder (employee productivity).

3. The employees will stay in the job and so labour turnover/absenteeism is reduced which saves the business money.

4. The employer will delegate more work to the employees with means that employees make a useful contribution to business.

5. There will be less chance of industrial action which saves the business money and helps its reputation.

6. Managing Employee cntd…Improving­Industrial­Relations

1.­Regular­Open­Communications• The HR manager should hold regular face--‐to--‐face meetings with the

employees to keep them informed and build up trust between the two.• The business should be honest and truthful and not keep things from

employees.

2.­Grievance­Procedures• The parties agree in advance on procedures for dealing with conflict

situations such as promotions, grievance etc.• This means that when conflict arises that there is an agreed way to solve

it.• A redundancy procedure may be drawn up such as “Last In First Out”

method

3.­Train­Managers• Managers should be given training in how to deal with employee problems

in a sensitive way so as not cause industrial disputes

6. Managing Employee cntd…

4. Careful Selection• The HR manager should select employees who will fit in

and share the businesses’ beliefs

5. Train Employees• Employees should be trained so they can perform duties

expected of them and so reduce conflict with managers.

6. Managing Employee cntd…Teamwork­-­Stages­in­Forming­Teams

In 1965 Bruce Tuckman developed this theory on forming teams:

1.­Forming• Members of team meet for first time.• They are polite and discuss the job they need to do.• They don’t reveal too much as they are “sussing each other out”

2.­Storming• Conflict occurs as they get to know each other better.• Arguments happen due to emergence of strong personalities.• Rows happen when members vie for position within team.

3.­Norming• Team members resolve conflicts and reach a consensus.• They agree on who the leader as and divide up the roles.• They begin to trust each other and set “norms” which are standards of behaviour.

4.­Performing• They pull together as one and focus on the job.• They co-operate and work as a unit.

6. Managing Employee cntd…Advantages­of­Teams­for­the­Business

1.­Teams­make­better­decision­- The members can brainstorm and come up with creative solutions. Each member brings different skills and ideas.

2.­Increase­employee­motivation­- The employees are happy to mix with other people which satisfies their social need (Maslow).

3.­Make­better­quality­products­-­­The members develop team spirit and do the job better so as not to let the team down. The business can also use rivalry between teams to encourage them to work harder.

4.­It­improves­relationships/communications-­The team members come from different departments and so they mix with each other and get to understand each other’s work which leads to fewer disputes

6. Managing Employee cntd…Advantages­of­Teams­for­the­Employees

1.­Allows­employees­to­make­contribution­- ­The members make contributions to business which satisfies their esteem. He also gets praise from team members which helps motivation.

2.­Satisfies­employee’s­social­needs­- Employees are happy to work in tram as they are mixing with other people and so enjoy work more as they can speak to their teammates about problems etc.

3.­Team­Spirit­- The members do their best to make the team succeed and so the member support and help each other.

4.­Improves­Relationships­- The members come from different departments, mix with each other and so develop better relationships with each other.