VCE Business Management 3-4

VCE Business Management 3-4 Management of the Employment Cycle Chapter 13

Introduction • The role of HR managers is to ensure that business strategy is followed when developing and implementing human resource strategies • Need to forecast demand and supply of labor and succession planning as well as the overall management of the employment cycle • Establishment • Maintenance • Termination • I.e. Coles Myer is recruiting now for Christmas selling period.

Establishment Phase • This phase establishes the relationship between the employee and the Organization • HR Planning • Job Analysis • Recruitment • Selection • Some affect either party, some both

Human Resource Planning • HR Planning involves planning an organization's future personnel needs while taking account of factors from both the internal and external environment • Need to have an adequate supply of competent and motivated people to perform the duties and tasks required by the organization to achieve its goals • Examples of • Sheraton • Crown • Daimaru

Human Resource Planning • Involves planning for establishment phase as well as maintenance and termination • Downsizing • Retrenchments • New business expansion • Response to change in environment • Social • Law etc

In your notes, use page 214 to note down 10 changes in the environment that affect HR planning Note if each is from the internal, task/operating or external environment Sources of Change

Job Analysis • Job analysis is the process pf looking at a particular job in order to find out exactly what the job is and what skills and experience you need in the job • Note definitions of • Job analysis • Job description • Job specification • Page 215 • Job descriptions and specifications are used for training, selecting, recruiting, appraisals, planning and interview questions

Methods used to Conduct Job Analysis • Interview the current job holder • Questionnaires • Observation • Supervisor reports • Log books and work diaries • Note the Job Specification and Job Description for the Job handed to you

Recruitment • Recruitment involves identifying, locating and attracting a pool of applicants qualified for the job. • Narrow down this pool for those with the closest fit and then select them for interview • The recruitment process is “two way” employee also wants to see if they are a fit for the job • Process • Identify human resource requirement • Determine where a qualified pool of applicants can be found (recruitment source) • Choose a specific means of attracting potential employees to the organization (recruitment methods)

Identify Human Resource Requirements • It is the role of HR to ensure that the people recruited and ultimately selected have the skills and attributes required by the organization to achieve e its goals. • Technical Skills • Formal Qualifications • Personality • Cultural Fit • Potential for Development

Identify Human Resource Requirements • Organizations may need to have a recruitment policy • Job Description used • Method of Interview • Method of advertising • Testing processes • References • Conditions of employment • Letters of Offer • Rejection Letters • Legal Compliance • Recruitment Methods (i.e. internal offered first) • Affirmative Action – women, indigenous, minority groups, people with disabilities

Recruitment Sources • Internal Recruitment • Many LSO’s have a policy for all positions to be advertised internally first or that appropriate staff are identified and interviewed first • Can be posted on notice boards • On intranet • Raised at Career development meetings • Candidates wont always have to submit a resume but are usually interviewed and matched to a job description

External Recruitment Methods • There is a large variety of methods • Many organizations will use more than one method.

Advertising • LSO’s can choose to advertise open positions in • Local Papers • State Papers i.e. Age, HWT • National Papers i.e. Australian • Careers section is sorted alphabetically by position type with many executive jobs in large block ads at the front or in the Front section of the paper • Ad needs to grab attention: use of font, color, graphics and note the job type, skills and qualifications, application process and contact

Electronic Recruiting • LSO’s can recruit off their own website as well as off Internet Recruitment company sites • www.seek.com.au • www.careerone.com.au • Cheap method of advertising as don’t have to pay print costs • Applicants usually submit an online application • Very popular for graduate programs

Government Employment Agencies • Federal government provides funding for agencies to act on its behalf to find work placement • Position tend to be • Clerical • Technical • Manual

Personnel and Management Recruitment Agencies • Privately owned agencies who usually recruit for • Administrative • Technical • Sales • Professional • Management • Use consultants to place staff, recruit people and companies who are looking for staff • They will screen staff, provide background checks, and submit a shortlist to LSO’s in return for a percentage of the hired employees package • Highest level are “headhunters” for senior management positions

Outplacement Firms • Used when an organizations downsizes and lets staff go under redundancy packages • Outplacement firm will consult with retrenched staff and find them a new position and/or offer counseling on career

University Recruiting • Many LSO’s recruit directly from TAFE’s and Unis • Tertiary organizations will hold open days or recruiting fairs to provide a contact point between graduates and LSO’s

Methods of Recruiting • Previously Unsuccessful applicants • Employee referrals • Unsolicited applications • Professional associations

Selection • Assessment of the suitability of applicants is made at the commencement of this stage and ends with an offer of employment • Process of selection follows a fairly standard format

Selection Process • Receipt of application • Can be a standard format for application • Should be acknowledged by the organization • Initial Screening • Eliminates applicants whose skills, qualifications do not meet the level required for the position • Then form a pool of applicants for interviews

Selection Process • Interviews • Usually a structured interview with a series of questions based on the position • Planning the interview • Interview environment (office, board room, etc) • Opening the interview • Questioning (closed and open questions) • “Past behavior is a predictor of future behavior” • Legal Requirements • Listen and observe • Sell the job and the organization • Close the interview

Selection Process • Evaluate the applicants • Can be done by panel members • Use skills, qualifications , attributes • “Gut feel” can be important so don’t dismiss

Testing • Psychometric Testing • Ability or intelligence • Personality or temperament • Motivation • Interest Inventory • Competency Testing • Uses business games such as role plays or work simulation • Physical Examination

Background Investigation • Check your candidates references! • Don’t just check the ones the applicant has listed, check with other sources you have : professional bodies, employee contacts

Advise Applicants of Outcome • The position needs to be officially offered to the successful candidate usually by phone then letter to follow • Letter will contain details of employment conditions • Remaining applicants need to be advised that they were not successful • Advise the organization that the position has been filled

Maintenance Phase • HR managers need to ensure organizations retain productive and efficient employees • Well compensated • Trained • Developed

Employment Arrangements • Employment type • Employers and employees enter into a legally binding contract • Stipulated in the “Letter of Offer” • Permanent Full Time (Usually 38 hrs/week), get benefits superannuation, leave entitlements • Permanent Part Time – Ongoing and pro-rata entitlements • Casual- Often oral contract, paid hourly, few if any benefits • Contractors – could be full or part time but have stipulated length of service e.g. 2 years

Employment Arrangements • Employment Agreement • Award-By industry and establishes minimum wages and conditions • Enterprise Bargaining Agreements – Certified by IRC • Australian Workplace Agreements: individual agreement between employer and employee

Employment Arrangements • Remuneration • Wages: usually hourly and specified overtime, usually paid weekly • Salary: An annual figure paid usually monthly or two weekly. Normally no overtime • Packages: Can include salary, bonus, superannuation, entitlements, share options • Rewards: Performance based pay, incentive pay plans: commission, profit sharing, shares, bonus • Benefits: Family care, maternity leave, parental leave, telecommuting, school holiday hours, medical benefits

Induction • Sample Checklist • Induction is a series of activities undertaken by the organization to introduce new employees to the organization • Can be one day to weeks • Purpose is to • Commence socialisation and belonging process • Communicate organisational values, beliefs, culture • Provide information about specific job tasks • Create a favourable impression • Good induction programs are important to reduce staff turnover • Could include a buddy program

Training and Development • Training is the process of providing an employee with the knowledge or specific skills needed to do a job • Computer skills • OH & S • Operator skills • Development refers to preparing employees for longer term opportunities • Further education • Management training • Job rotation

Training Needs Analysis • How do yo know who and what training? • Needs analysis • Organisational • Task • Person

Performance Management • Absolutely vital for organizations to conduct continuous processes of evaluating how effectively employees are fulfilling their responsibilities. How? • Performance Management: System used to improve organisational, functional and individual performance through linking the objectives of each.

Purpose of Appraisals • Measures an individuals performance and is a component of an organization's performance management system • Can be informal, oral, formal, written or an activity or task • Formal methods usually occur annually • Traditional appraisals act to: • Tell an organization if selection of staff is effective • Gauges whether training and development programs are effective • Shows where training, development and motivational programs are needed • Provides as basis for documenting decision on remuneration, promotion and dismissal

Key Steps in Process • 1. Identify and establish performance appraisal goals • 2. Evaluate of appraisal of an employees performance through observation and analysis • 3. Review performance and provide feedback to employee. Strengths and weaknesses

Types of Performance Appraisal • 1. Comparative Standards: Comparison is made between one employees performance and another. Rank employees from poor to excellent against criteria. Does not necessarily highlight weaknesses • 2. Absolute Standards: Manager undertakes independent evaluation of employee. Can be difficult as no set criteria or formal and made end up as a running sheet of “black marks”

Types of Performance Appraisal • 3. Management by Objectives: MBO the employee and manager/supervisor jointly determine a set of employee goals at the beginning of the review period. At the end, their performance is measured against these objectives and whether achieved or not and for what reasons. Objectives need to be in line with organizations objectives

Performance Appraisal Outcomes • Remuneration and Rewards: a merit rise or pay increase • Training and Development: Computer course, further tertiary study, mentoring, special project • Counseling: To assist with overcoming problem areas • Job Promotion: Move on to greater responsibility • Job Rotation/Transfer: To gain new experiences or to find a better fit • Termination: If the appraisal are consistently poor.

Termination Phase • Voluntary Termination • Resignation: When an employee voluntarily leaves an organization • To Travel • To go to another job • To return to study • Usually give two weeks notice and then have an exit interview when leaving to highlight where the organization may have failed

Termination Phase • Voluntary • Retirement: When an employee leaves the paid work force. Not always older employee, could be younger if they no longer need to work • Organization loses • Talent • Knowledge • Cost of replacement • Breakdown of effective teams

Termination • Involuntary Termination • Retrenchment: Usually lined to redundancy. Redundancy is when the organization no longer needs a particular job done by any person, or needs fewer people to do the same job • Usually occurs in organization restructuring due to new technology, cost cutting, closure of facilities. • Employees are entitled to redundancy payments and there is legislation requiring notice periods and payouts.

Termination • Involuntary • Dismissal: Often referred to as being fired, or sacked. Usually for unsatisfactory work performance or illegal or unacceptable behavior. • Organizations must make sure that there is documentary evidence of problems and that counseling and disciplinary procedures have been followed. • Need to provide written notice to the employee for termination except where a criminal offence has been committed.

Unfairly Dismissal • Industrial Relations Act of 1988 regulates termination of employees for all on Federal Award or Certified Agreements. Cant dismiss due to • Temporary absence for illness or injury • Holding membership in a union or participation in union activities • Not holding union membership[p • Participating in proceeding against an employer for alleged violation of law and regulation • On the grounds of race, sex, color, sexual preference, age, disabilities, marital status, religion, political opinions, social origin • Absence due to maternity and paternity leave

Services • Terminated employees may use • Outplacements Services • Transition Services • They assist with new careers, counseling, retirement planning, connection with the company after retirement

VCE Business Management 3-4