Unit 4 Area of Study 1: The Human Resource Management Function

Unit 4 Area of Study 1: The Human Resource Management Function Chapter 10: Management of the employment cycle

The Employment Cycle • The stages an employee progresses through from the time they are employed until they leave the organisation • Pattern repeats itself as new employees are hired to replace those leaving

Three phases of the employment cycle HR Planning Job analysis and job design Recruitment Selection Employment Arrangements Remuneration Voluntary Methods Involuntary Methods Unfair Dismissal Termination Management Outplacement Transition Services Induction Training and development Performance Management Recognition and rewards

The Establishment Phase

Human Resource Planning • Planning for future personnel needs, taking into account both internal activities and factors in the external environment • Awareness of factors from internal and external environment include: • Structural changes in the labour market – decline in manufacturing industries • Work patterns are changing – flexible working hours and a move away from traditional working week • (continued on next slide)

Length of working life is changing – later entry into employment, attitudes to retirement • Change in skills and education expectations – more people seeking tertiary qualifications • Labour shortage within the next decade due to the ageing of Australia’s working population • Increasing demand for work-life balance • Generational change – difference need to be acknowledged and worked around • Change in strategic direction of organisations – downsizing operations

HR Management must plan to assist the organisation to: • Meet current employment requirements in all phases of the employment cycle • Cater for future needs by determining how many employees will be required and what specific skills they must have • Ensure that the required human resources will be available to achieve the organisations strategic plan • Be in a position to assist the organisation to respond to external factors • Activity 10.1

Job Analysis • Job analysis: systematic process of gathering information relating to a job being performed. Finding out all the information about a job. • Job design: creating a new job or altering an existing position. • Job description: written statement of tasks performed, how and why they are done (job title, summary, responsibilities, duties, key performance indicators) • Job specification: the person’s experience, qualifications, skills, abilities, knowledge, remuneration and special requirements of the person

Methods used to conduct a job analysis: • 1. Interviewing the present job holder – can be time consuming • 2. Questionnaires – allows for information on a large number of jobs to be collected in a short period of time • 3. Observation – job holder could be watched • 4. Supervisory reports – details provided by supervision to give perception of what the job entails • 5. Log books and daily work diaries – completed by the job holder • Activity 10.2

Recruitment • The process of finding the best qualified pool of applicants • Process begins with: • Identifying human resource requirements • Determining where the qualified pool of applicants can be found (recruitment sources) • Choosing a specific means of attracting employees to the organisation (recruitment methods)

Identifying human resource requirements • Ensure that people recruited and selected have the unique skills and attributes required by the organisation • Determine whether the focus is on technical skills and formal qualifications or personality and the potential for personal and career development

Recruitment Sources • Internal Recruitment: positions advertised within the organisation to allow employees career advancement by transferring or being promoted

External Recruitment: Locating candidates from outside of the organisation

Recruitment Methods • Newspapers – large, well-known employment sections in certain editions of local and national newspapers • Internet sites – those seeking jobs can enter specific details of the position they want • Business websites – often used in conjunction with other methods • Recruitment agencies – time is money so an organisation may outsource the initial stages of recruitment who screens out non-suitable applicants • Word of mouth – ‘head hunting’ is actively pursuing one person wanted for a position and offering them an attractive package to leave organisation for which they currently work

Activity 10.3 • Activity 10.5

Selection Selection Criteria A list of what the organisation is looking for in the applicants for new positions Include: Qualifications or experience Skills Personal qualities • Selection is the process undertaken by an organisation to decide whether to make a job offer to a candidate • The following are strategies used to select the best candidate

Receipt of application Initial screening Eliminates applicants who do not possess the skills and expertise required for the position Shortlist of applicants to be created for interviewing • Application: the letter or communication used in expressing interest in a job or advertised vacancy • Application form: basic source of employment information covering qualifications, experience and other job-related data

Interviews Testing Provides a scientific component to recruitment Aptitude test: test of special abilities that are required for a specific job Personality or temperament questionnaire Motivational questionnaire Competency testing Physical examination • 1. Planning the interview • 2. Create the interview environment • 3. Opening the interview • 4. Questioning • 5. Understand the legal requirements • 6. Listen and observe • 7. Sell the job and the organisation • 8. Close the interview • 9. Evaluate the applicants

Background investigation Advising applicants of outcome Position needs to be officially offered to the successful applicant Remaining unsuccessful short-listed applicants need to be advised of their non-success • Reference checks provide important opportunities to learn more about candidates • Wise to check academic qualifications • Police check can be undertaken

Employment Arrangements • Permanent full-time basis – continuing contract of employment, working 38 hours per week, entitled to salary or wages, leave entitlements and superannuation as well as long service leave • Permanent part-time basis – continuing contract working fewer hours than full-time, same entitlements made on a pro-rata basis • Casual basis – short-term, irregular or seasonal work. Usually paid on an hourly basis and no employement benefits such as leave • Fixed-term basis – either full-time or part-time for project work or to replace employees absent on long service or parental leave

Types of remuneration • Wages – worked out on an hourly basis, overtime paid if an employee exceeds ordinary hours. Penalty rates may be paid for Sundays and public holidays. • Salary – annual figure usually paid on a monthly or fortnightly basis. Overtime not paid to salaried employees. • Packages – use for senior positions, include a salary component, performance-based pay, company car, share options and other fringe benefits • Benefits – can be categorised as dependent care assistance programs (family care, maternity/paternity leave, alternative work arrangements) or benefit plans (additional superannuation, travel insurance, life insurance, medical benefits)

Maintenance Phase

Induction • Induction: all the activities undertaken by the organisation to introduce a new employee to the organisation • Aim is to familiarise the new employee with their workplace so that they can perform to their maximum ability as soon as possible

Induction Procedures Benefits of Induction For the organisation: recruitment process costly and a good induction program can help the employee feel motivated and ensure morale is high. Allows them to be productive almost straight away For the employee: Will be put at ease with a well-conducted induction program Feel a sense of purpose and achievement, increasing their feelings of self-esteem • New employee introduced to colleagues and organisational structure and day-to-day practices • Often a buddy or mentor is assigned to the new employee to show the new person the ropes • Policies and procedures of the organisation should be explained to the new staff member. Can be a formal induction process. • Even mundane matters should be covered

Training and Development • Training: process of developing workplace skills needed to do a job • May be necessary right at the start of employment. • HR Manager conducts a training needs analysis: • Who needs to be trained? • Should training be done at the organisation or outside? • If internally should training be provided by someone in-house or by an external provider? • How is the training going to be evaluated? • Will follow-up training be required at a later date?

Development: activities an employee undertakes to help prepare them to take on more responsibility in the future (e.g. promotions and long term opportunities) • Training is often skill based (e.g. learning how to operate a new piece of machinery) whereas development focuses more on increasing the knowledge base of employees. • Benefits of training and development: • Improved employee performance and therefore profitability • Reduced absenteeism and reduced staff turnover • Increased efficiency in how things are done (processes) • Increased job satisfaction, morale and motivation among employees

Recognition and Rewards • Recognition programs may acknowledge achievement by giving financial and/or non-financial rewards • Rewards may be given for: • Achieving a target • Being the best compared with others

Unit 4 Area of Study 1: The Human Resource Management Function