Concepts of HRM Cont ’

1. Concepts of HRM Cont’ Contracts of Employment, Deployment, monitoring, training and development. Budgeting, relationships , soft vs Hard HRM

2. The Employment relationship • Contracts of Employment. • There are two types of Employment contracts. • Transactional Contracts • Relational Contracts

3. Employment contracts • Transactional Contracts • “Have well-described terms of exchange, which are usually expressed financially. They are of Limited duration, with specified performance requirement.”

4. Transactional Contracts • The Contract Agreement • “the main sections of a typical contract cover subject such as these: • Management Rights , Union security & automatic payroll dues deductions, grievance procedures, arbitration of grievance, Disciplinary procedures, compansation rates, hours of work & o.t, benefits, vacations, holidays, insurance, pension, health & safety provisions, employee security, seniority provisions, contract expiration date.” • Dessler ( 2008. p 621 ) – Cinec Library

6. Employment Contracts • Relational Contracts. • “Are less well defined with more abstract terms and refer to an open-ended membership of the organization. Performance requirements attached to this continuing membership are incomplete or ambiguous. “ Armstrong ( 2006, p 217) – cinec Library

7. Relational Contracts • “relational contract theory holds that agreements are not always transactional occasions whereby parties exchange only value. Relational contract theorizes that parties to contracts develop a relationship between one another that incorporates planning, trust, and solidarity that far exceed the terms of the original document. “ ( Bird 2005)

8. Relational Contracts • “A relational contract is far different. First, the relationship of exchange continues over a significant period of time and is not a "spot“ market deal like a transaction for securities or commodity futures.' Long term supply contracts or even marriages are examples of long-term relational arrangements. Second, relational contracts contain significant open terms and reserved discretion for the parties, in part because the extended duration of relational contracts prevents the parties from calculating the full value of the exchange” (Bird 2005)

9. Deployment • Move (troops) into position for militaryaction:forces were deployed at strategiclocations ( oxford Dictionary ) • Therefore in HR - Deployment is the act of the employer placing the employee at his/her role. • In more detail - After Successful completion of training / probation The New employee / Existing Employee is placed in Direct Workplace to do the work & show the output which will be measured for his Performance Appraisal.

10. Deployment is also • “Deployment is the movement of staff from one work assignment to another to meet operational needs. Deployment may take the form of work assignments within the current job, lateral transfers, relocation, or temporary assignments. Deployment of staff enables realignment of human resources to new work assignments or job responsibilities to meet changing business needs or to provide opportunities to gain skills and experience.” (British Colombia Government Public Service agency 2014, My HR Para1)

11. What follows deployment • Performance Management. • Virtually all companies have some formal or informal means of appraising their employees performance. • We may define performance appraisal as any procedure that involves 1setting work standards, assessing the actual performance relative to the said standards 3 providing feed back to the employee with the aim of motivating.

12. Training and Development of new Employees • The Five step training and development process. By ( Dessler 2008 p295) The First , needs analysis step Identify Job performance skills requirements, assess the trainees skills , develop specific measurable knowledge and performance objectives based on deficiencies. The second , Instructional design – compile content books , exercises, activities

13. Training and development cont, • Optional validation step , check for issues by serving to a small group • Fourth Implementation , start the training • Fifth is , Evaluation step check the program for achieving its goals. • Important – inadequate training can expose employer to liability of Negligence. “it is clear from the case law that where an employer fails to adequately train an employee who subsequently does harm to a third party the court can find the employer liable”

14. Training step 1 • Analysis • The main task in analysing training needs of new employees is to determine what the job entails and break it down to subtasks. ( Dessler 2008 p297) • Ex. Pizza Cook – take order from restaurent, cut onions, mix the bread dough , back in oven, cut to slices, box the pizza, communicate to restaurant. • Useful documents – job descriptions , job specification.

15. Training step 1 cont • Analyse the training needs of the employee. • Use data from – performance appraisals, job related performace data, ( equipment usage, customer complaints, ) , supervisors comments, interviews, tests, any prior assessment results. • Identify deficiencies.

16. Step 2 create material • Options include – online , on the job training, self managed learning, apprenticeship training, informal learning, Job instruction training, Lectures, Programmed learning, audio visual based training, simulated training,

17. Step 3 • Optional tryout. • Use a small sample. • Workout the issues if any arise.

18. Step 4 • Implementation. • Most popular – On the Job training • Advantages – inexpensive , learn while producing, no class rooms needed, quick feedback, • Step A – prepare the learner – put at ease, create interest, provide reference material, explain the whole job relating to what they already know, place close to normal working position, familiarise with equipment, material, tools.

19. Step 4 (implementation ) cont’ • Step B – present the operation. Quantity & quality, keep at normal pace, go slow first, explain difficult parts where errors are likely to be made, have the learner explain back to you • Step c : do a tryout – get the learner to go through the task several times slowly explaining back to you, correct mistakes, run at normal pace, after the learner builds pace and skill let the learner take over but don’t abandon.

20. Step 5 – class….? • E……… – Follow up – designate a person to go for help, decrease supervision, check from time to time, correct faulty methods, teach why supervisor method is superior, Complement achievements.

21. Budget Monitoring. • “Most Executives are aware of the Total cost of Payroll and benefits, they do not understand that changes in HR practices can result in tremendous increases in costs” ( Phillips 1999. P. 39) • Author Also mentions how HR performance can be monitored by developing HR costs and comparing with other similar organizations. class ?B................. • Typical areas of cost analysis. Cost per hire, orientation costs, training costs, compensation, benefits , healthcare, complaints costs, legal costs, industrial action costs, accidents costs, fines,

22. Relationships with HR • “Two types of Contracts defining the employment relationship have been distinguished” • Class • Tra…… • Rel…… Armstrong ( 2006, p 217) • However employment relationship can also be EXPRESSED in terms of a psychological contract.which has both transactional and relational qualities.

23. Soft HRM vs Hard. • Two concepts • Unitarist– employers and employees are of one mind about how to achieve business success and conflict is to be avoided. • Pluralist – Organizations are made up of individuals and groups with conflicting claims and interests. Conflict is not necessarily unhealthy

24. Soft vs hard cont’ http://www.businessdictionary.com/definition/Taylorism.html

25. Exercise • You are the Food and beverage manager at a 5 star Italian Restaurant/ Supervisor at a American Express travel agent branch. • Today is the first day Mahathung joins your team. • Write down the methodology for his training and development. • From analysis to evaluation. Decide if its going to be on the job, online , on the job training, self managed learning, apprenticeship training, informal learning, Job instruction training, Lectures, Programmed learning, audio visual based training, simulated training, • Your report must justify your decisions, steps.

26. On your Assignment • Select an organization and assume yourself as the HR manager. Conduct research on Human resource functions, and complete the following tasks to identify the organizations current circumstances. • Have you planned / selected an organization yet??

27. Bibliography • Armstrong, M 2006,A handbook of Human Resource practice : defining the employment relationship, Kogan Page, London, U.K. • Dessler, G 2008, Human Resource Management : The contract agreement, Prentice-Hall Inc, Upper Saddle River, New Jersy, U.S.A. • Bird, RC 2005, Employment as a Rrlational Contract : Employment as a relational agreement, University of Pennsylvania Law School, Issue 1, vol 8, p. 151 • British Colombia Government Public Service agency 2014, My HR : Hiring & Deployment (Human Resources Policy 1) , Viewed 28 September 2014. http://www2.gov.bc.ca/myhr/article.page?ContentID=42e3b62b-c4a7-b92b-3931-bc213f2c564e&PageNumber=6

28. Phillips, JJ 1999, Accountability in Human Resource Management : HR cost monitoring, Butterworth-Heinmen, U.S.A. http://books.google.com.au/books?id=5HwCZU4K0OIC&pg=PA39&dq=HR+expense+monitoring&hl=en&sa=X&ei=BEgoVOWCLozHuASynoDQDQ&ved=0CDUQ6AEwAQ#v=onepage&q=HR%20expense%20monitoring&f=false