Human resource management in Australia

1. Human resource management in Australia Chapter 1

2. Introduction to human resource management (HRM) • Objectives • Discuss the roles and activities of a company’s human resource function. • Discuss the competitive challenges influencing Australian companies. • Discuss how human resource practices affect a company’s balanced scorecard. • Discuss what companies should do to be competitive in the global marketplace. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

3. Introduction to human resource management (HRM) • Objectives (continued) • Identify the characteristics of the workforce and how they influence human resource management practices. • Discuss human resource practices that support high-performance work systems. • Provide a brief description of human resource management practices. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

4. Human resource management (HRM) • Refers to the policies, practices and systems that influence employees’ behaviour, attitudes and performance. • Many companies refer to HRM as ‘people practices’. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

5. Strategic human resource management Company Performance Selection & Placement Measuring and Evaluating Recruitment Compensation Managing Diversity Industrial relations Performance Management HR Information Systems HR Planning Job Analysis & Design Learning and development Figure 1.1 HRM practices Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

6. The development of theoretical bases for HRM • Theoretical perspectives of HRM include: • Behavioural view • Resource-based view • Politically-influenced view. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

7. Stakeholder Interests Shareholders Management Employee groups Government Community Unions HRM Policy Choices Employee influence Human resource flow Reward systems Work systems HR Outcomes Commitment Competence Congruence Cost effectiveness Long-term Consequences Individual well-being Organisational effectiveness Societal well-being Situational Factors Workforce characteristics Business strategy and conditions Management philosophy Labour market Unions Task technology Laws and societal values Source: M. Beer, B. Spector, P.R. Lawrence, D.Q. Mills & R.E. Walton, Managing human assets, Free Press, New York, 1984, p. 16. Figure 1.2 The Harvard Analytical Framework for HRM Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

8. Features of the dominant approach to HRM • Focus on enterprise or firm. • HRM is an investment in human capital. • Reciprocal fit between organisational strategy and HR strategy. • All managers are responsible for HRM. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

9. n* % (*n=322; open-ended data; respondents may have answered more than one suggestion) Source: C. Fisher & P.J. Dowling, ‘Support for an HR approach in Australia: the perspective of senior HR managers’, Asia Pacific Journal of Human Resources, 37 (1), 1999, p. 9. Table 1.1 Most significant changes in HR (1990-95) Integration & strategic focus of HR policies 120 37.3 Employee relations 118 36.7 Contribution of HR to company performance 77 24.0 Worker participation and team work 62 19.3 Quality issues 53 16.5 Training 41 12.7 Flexible work patterns 41 12.7 Devolution of function 40 12.4 Legislative changes 34 10.6 Economic rationalism 33 10.3 Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

10. (*n=322; open-ended data; respondents may have answered more than one suggestion) Source: C. Fisher & P.J. Dowling, ‘Support for an HR approach in Australia: the perspective of senior HR managers’, Asia Pacific Journal of Human Resources, 37 (1) 1999, p. 9. Table 1.2 Issues with greatest impact on HR (1995-2000) n* % HR role in change & strategic planning 90 28.0 Employee relations 64 20.0 Contribution of HR to company performance 62 19.3 Flexible work patterns 39 12.1 Legislative changes 30 9.3 Quality issues 28 8.7 Internationalisation 27 8.4 Training 25 7.8 Worker participation and team work 24 7.5 Technology 21 6.5 Performance management 19 5.9 Outsourcing 15 4.7 Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

12. Roles performed by HR professionals(Ulrich, 1997) • Administrative expert • Employee champion • Change agent • Strategic business partner Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

13. Compensation Strategic management Organisational development Change management Evaluation Benefits Audit Data management Analytical, fact-based decision making Leadership Conceptual ideas Visioning Compliance Regulation Administration Control Interpersonal team work Diversity Counselling Employee development Industrial relations Legal Figure 1.3 HR roles and competencies Source: The Conference Board, Inc., The Changing Human Resource Function, The Conference Board, New York, 1990, p. 11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

14. Competing through high-performance work systems Competing by meeting stakeholders’ needs Competing through globalisation • Expand into foreign markets • Prepare employees for work in foreign locations • Change employees’ and managers’ work roles • Integrate technology and social systems • Provide a return for shareholders • Develop employees and create a positive work environment Australian Business Competitiveness Figure 1.4 Competitive challenges influencing Australian challenges Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

15. The global challenge for HRM • Development of global markets • Global competitiveness through HRM practices • Preparing employees for international assignments Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

16. Perspective Questions answered Examples of critical indicators Customer Internal Innovation and learning Financial How do customers see us? What must we excel at? Can we continue to improve and create value? How do we look to shareholders? Time, quality, performance, service, cost Processes that influence customer satisfaction, availability of information on service and/or manufacturing processes Improve operating efficiency, launch new products, continuously improve, empower workforce Profitability, growth, shareholder value The challenge of meeting stakeholders’ needs:Table 1.7 The balanced scorecard Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

17. Source: Australian Quality Council Ltd., ‘Success stories’, www.aqc.org.au The challenge of meeting stakeholders’ needs: Figure 1.5 The Australian Business Excellence Model Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

18. The challenge of meeting stakeholders’ needs: characteristics of the Australian workforce • Gender • Ethnic diversity • Structure of the economy • Skill deficiencies • Changes in the employment contract • Changes in the place of work • Employee values • Legislation • Ethical considerations Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

19. The challenge of high-performance work systems(HPWS) • Change in employees’ work roles and skill requirements • Increase in the use of teams to perform work • Changes in the nature of managerial work • Changes in company structure • Increased availability of HR information bases • Competitiveness in HPWS Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

20. Human resource management system philosophy Guiding Principles Employee performance is valued Practice alternatives Mix of practices that are consistent with philosophy and are aligned with each other Mix of performance appraisals, incentive pay, promotions Practice processes Team-based incentive pay State-of-the-art, 360º performance appraisal Source: Based on B. Becker & B. Gerhart, ‘The impact of human resource management on organizational performance: progress and prospects’, Academy of Management Journal 39, 1996, p. 786. Used with permission. Figure 1.6 Relationship between HR philosophy and practices Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

21. Global Challenge Stakeholder Challenge High-Performance Work System Challenge HR Practices • HR strategy is matched to business strategy • Work is performed by teams • Pay systems reward skills and accomplishments • Selection system is job-related and legal • Work attitudes of employees are monitored • Continuous learning environment is created • Discipline system is progressive • Customer satisfaction and quality are evaluated in the performance management system • Skills and values of a diverse work force are valued and used Figure 1.7 Examples of how HR practices can help companies meet the competitive challenges Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

22. Dimensions of HRM Practices Managing the human resources environment Building human resource systems Developing human resources Rewarding human resources Competitiveness Figure 1.8 Major dimensions of HRM practices contributing to company competitiveness Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

23. Overview of HRM topics Part 1: Managing the Human Resources Environment Part 2: Building HRM Systems Part 3: Developing people Part 4: Rewarding people Part 5: Directions for HRM Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

24. Part 1: HRM in Australia Strategic HRM Legal context for HRM Analysis and design of work HR planning and HR information systems Recruitment, selection and placement Industrial relations Managing diversity and work–life balance Performance management Employee learning Employee development and career management Managing compensation Performance-related pay Managing a global workforce Managing employee retention and turnover Evaluating and improving the HR function Part 2: Part 3: Part 4: Part 5: Overview of HRM topics Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar