Chapter 12 Human resource management
Definition
Productive use of people in achieving strategic objectives and the satisfaction of individual employee needs
Strategic approach to overseeing and coordinating an organisation's workforce, including recruitment, development, and
employee relations, to optimise performance and achieve organisational goals
The role of human resource management
One of the crucial roles of the human resource (HR) manager is to improve the skills base of employees and to contribute
to the profitability of the organisation
Human resource management and organisational effectiveness
An effective organisation has a vision, a mission and strategy, an organisational structure and human resources
Successful organisations all share the following human resource management attributes:
1. Primary Benefits
– Monetary benefits like pay, pension and share options
2. Secondary Benefits and Working Conditions
– Non-monetary benefits like leave, flexible working conditions, input channels, innovation, recognition
3. Training and Development
– The availability of function-related development initiatives and programmes
– How the employer helps you to grow in your role
4. Career Development
– Long-term career-path development, succession planning talent- and performance management
5. Company Culture and Diversity
– The combined efforts of the employer to establish a strong company culture, i.e. social and networking
opportunities, diversity initiatives, CSR programmes and employee input
The contribution of human resources to organisational effectiveness includes the following:
Assisting in achieving organizational goals
Efficiently utilizing workforce skills
Providing well-trained, motivated employees
Ensuring job satisfaction and self-actualization
Developing a desirable work environment
Upholding ethical policies and socially responsible behaviour
Managing change for mutual benefit
Professionally executing HR activities
Being involved in strategic decision-making and strategy formulation
,Who performs the human resource function?
Human resources and line managers
Large organisations - mainly co-ordinated by human resource department
Smaller organisations - main HR functions (recruitment, selection, scheduling , training / development, performance
management, compensation and labour relations) performed by line managers
As size increases, line manager’s job is divided, and aspects, like recruitment / selection, become specialised
Line managers - people in other departments, such as operations, marketing and finances, who have the responsibility to
make optimal use of all the resources at their disposal.
Human resource planning
Process of using an organisation’s goals and strategy to forecast the organisation’s human resource needs in terms of
finding, developing and keeping qualified human resources.
Determine how many employees will be needed and what their skills, knowledge, qualifications and experience must be
to ensure the achievement of organisational goals.
Three Phases/Steps - HR Planning:
1. Identify work being done in business at present (job analysis + job description + job specification)
2. Identify type of employee needed to do work (job specification)
3. Identify number of employees needed in future (HR planning & forecasting)
Phase 1: identify the work being done
Job Analysis
Process by which management systematically investigates the tasks, duties and responsibilities of a job
Methods to collect data:
– Observation by qualified job analyst
Manual Labour - Electronic Monitoring
Administrative Work - Interviewing
– Questionnaires - specific questions about the tasks and responsibilities
Job Description
Summary of the duties, responsibilities, qualifications, and expectations associated with a specific role
Job Specification
Contains qualifications employee must have to perform duties and responsibilities in job description
Details the knowledge, skill, abilities, education, experience, traits & manual skill
, Phase 2: Human Resource Forecasting
Strategic planning and management of an organization's future staffing needs and talent availability to ensure the right
number of employees with the required skills is available
Take into consideration:
Economic growth
New business development
Labour market
Economic growth
– Predicting growth / decline of business in view of probable economic development (Decline / Growth)
New developments in business
– Planned physical extensions, new branches and technological changes
Labour market
– Questions - Sufficient opportunities? High level of unemployment? Future Labour Turnover? Skill Shortages &
Employee Availability?
After predicted HR supply and demand have been assessed, a surplus or shortage of human resources can be identified to
form the basis of developing a HR plan for the organisation.
Phase 3: The Human Resource Plan
To provide clear guidelines and steps that show how business short-, medium- and long-term human resources
requirements can be met.
The organisation will have to choose a strategy which will provide for the achievement of set goals
Finding Qualified Talent / Workers
Recruiting
Process of identifying, attracting, and selecting qualified candidates to fill job openings within an organisation
Sources:
Internal Recruiting (inside organisation)
Fill vacant positions with existing staff members, except jobs on the lowest levels.
Senior jobs in hierarchy filled using promotion or lateral transfers of existing staff.
Methods:
Talent Inventories
Career Development Systems
Acting and secondment arrangements
Job Shadowing
Supervisory Recommendations
Definition
Productive use of people in achieving strategic objectives and the satisfaction of individual employee needs
Strategic approach to overseeing and coordinating an organisation's workforce, including recruitment, development, and
employee relations, to optimise performance and achieve organisational goals
The role of human resource management
One of the crucial roles of the human resource (HR) manager is to improve the skills base of employees and to contribute
to the profitability of the organisation
Human resource management and organisational effectiveness
An effective organisation has a vision, a mission and strategy, an organisational structure and human resources
Successful organisations all share the following human resource management attributes:
1. Primary Benefits
– Monetary benefits like pay, pension and share options
2. Secondary Benefits and Working Conditions
– Non-monetary benefits like leave, flexible working conditions, input channels, innovation, recognition
3. Training and Development
– The availability of function-related development initiatives and programmes
– How the employer helps you to grow in your role
4. Career Development
– Long-term career-path development, succession planning talent- and performance management
5. Company Culture and Diversity
– The combined efforts of the employer to establish a strong company culture, i.e. social and networking
opportunities, diversity initiatives, CSR programmes and employee input
The contribution of human resources to organisational effectiveness includes the following:
Assisting in achieving organizational goals
Efficiently utilizing workforce skills
Providing well-trained, motivated employees
Ensuring job satisfaction and self-actualization
Developing a desirable work environment
Upholding ethical policies and socially responsible behaviour
Managing change for mutual benefit
Professionally executing HR activities
Being involved in strategic decision-making and strategy formulation
,Who performs the human resource function?
Human resources and line managers
Large organisations - mainly co-ordinated by human resource department
Smaller organisations - main HR functions (recruitment, selection, scheduling , training / development, performance
management, compensation and labour relations) performed by line managers
As size increases, line manager’s job is divided, and aspects, like recruitment / selection, become specialised
Line managers - people in other departments, such as operations, marketing and finances, who have the responsibility to
make optimal use of all the resources at their disposal.
Human resource planning
Process of using an organisation’s goals and strategy to forecast the organisation’s human resource needs in terms of
finding, developing and keeping qualified human resources.
Determine how many employees will be needed and what their skills, knowledge, qualifications and experience must be
to ensure the achievement of organisational goals.
Three Phases/Steps - HR Planning:
1. Identify work being done in business at present (job analysis + job description + job specification)
2. Identify type of employee needed to do work (job specification)
3. Identify number of employees needed in future (HR planning & forecasting)
Phase 1: identify the work being done
Job Analysis
Process by which management systematically investigates the tasks, duties and responsibilities of a job
Methods to collect data:
– Observation by qualified job analyst
Manual Labour - Electronic Monitoring
Administrative Work - Interviewing
– Questionnaires - specific questions about the tasks and responsibilities
Job Description
Summary of the duties, responsibilities, qualifications, and expectations associated with a specific role
Job Specification
Contains qualifications employee must have to perform duties and responsibilities in job description
Details the knowledge, skill, abilities, education, experience, traits & manual skill
, Phase 2: Human Resource Forecasting
Strategic planning and management of an organization's future staffing needs and talent availability to ensure the right
number of employees with the required skills is available
Take into consideration:
Economic growth
New business development
Labour market
Economic growth
– Predicting growth / decline of business in view of probable economic development (Decline / Growth)
New developments in business
– Planned physical extensions, new branches and technological changes
Labour market
– Questions - Sufficient opportunities? High level of unemployment? Future Labour Turnover? Skill Shortages &
Employee Availability?
After predicted HR supply and demand have been assessed, a surplus or shortage of human resources can be identified to
form the basis of developing a HR plan for the organisation.
Phase 3: The Human Resource Plan
To provide clear guidelines and steps that show how business short-, medium- and long-term human resources
requirements can be met.
The organisation will have to choose a strategy which will provide for the achievement of set goals
Finding Qualified Talent / Workers
Recruiting
Process of identifying, attracting, and selecting qualified candidates to fill job openings within an organisation
Sources:
Internal Recruiting (inside organisation)
Fill vacant positions with existing staff members, except jobs on the lowest levels.
Senior jobs in hierarchy filled using promotion or lateral transfers of existing staff.
Methods:
Talent Inventories
Career Development Systems
Acting and secondment arrangements
Job Shadowing
Supervisory Recommendations
