UBO - Lecture 04 - Human Resource Management

Lecture 4 Human Resource Management Understanding Business Organisations
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UnderstandingBusiness
NCC Education Limited V1.0
Understanding Business
Organisations
Lecture 4:
Human Resource Management
Human Resource Management Lecture 4 - 4.2
Scope and Coverage
This topic will cover:
The main activities undertaken by a human resources
department
The importance of HRM policies having both an
effective external and internal fit
The role of job analysis
The approaches that can be adopted for employee
recruitment and selection
Performance appraisal and performance-related pay
Learning Outcomes
By the end of this topic, students will be able to:
Understand the reasons for the increased interest
in human resource management (HRM)
Describe the job analysis process
Explain the strengths and weaknesses of the
different approaches to staff recruitment and
selection
Describe the key steps in the performance
appraisal process
To enable the management to enhance the individual and
collective contributions to the short- and long-term success
of the enterprise (CIPD)
The main activities of an HR department are:
Employee resourcing
What is Human Resource
Management (HRM)?
Employee resourcing
Organisational development
Performance management
Employee development
Employee reward and recognition
Employee relations
Health, safety and welfare
People are one of the key
inputs into an organisation
Challenge is to attract,
develop and retain the
Why is HRM Important?
best employees
Key to competitive
advantage is employing
better people than your
competitors
HRM policies HRM outcomes Organisational
outcomes
Organisation/job design Highjob performance
Management of change Strategic integration High problemsolving, change
andinnovation
A Human Resource Management
Model
and innovation
Recruitment, selection and
socialisation
Commitment
Appraisal, training and
development
Flexibility/adaptability High cost effectiveness
Reward systems Quality Low turnover, absence and
grievances
External fit refers to the link between HRM
strategy and the wider business strategy
HRM strategy should support the business strategy
External and Internal Fit
Internal fit refers to the need to have HRM policies
that are internally consistent
Individual measures should complement and
reinforce each other
The process of describing
and recording many
aspects of a job
Typically leads to a written
J ob Analysis
job description that has
implications for employee
selection, training and
performance appraisal
Describe the main purpose of the job
Major duties and activities
Necessary skills, knowledge and abilities
J obs broken down into elements such as
The J ob Analysis Process
information input, mental processes, work output
Elements are rated along with dimensions such as
extent of use, importance and time involved
Competences required for satisfactory or high
performance of job are identified
Interviews
Selection tests
Assessment centres
Employee Recruitment and
Selection
Assessment centres
Evaluation
E-recruitment
Traditional approach to recruitment
Remains a popular method
However, research shows the low validity of the
method
Interviews
Generates many false positive errors
Many organisations now train staff in good
interview techniques
Decisions are made too quickly
Information in early stage of interview has a
disproportionate influence on the decision
Interviewers are poorly prepared and ask too many
Problems with Interviews
p y p p y
questions
Appearance and non-verbal behaviour strongly
shape decisions
Long established tests for
abilities and personality
Psychometric tests commonly
used
Selection Tests
Weaknesses in interview
method has encouraged
greater use of tests
...But there are concerns
They should only be used by qualified and
approved experts
Candidates can fake answers
An individuals personality may vary with their
i
Criticism of Selection Tests
circumstances
Good performers in the same job may have
different personalities
May run foul of equal opportunities legislation and
regulations
Use systematic tests and several assessors
Build up a comprehensive picture of a candidates
abilities and potential
Have a higher level of validity than interviews and
Assessment Centres
g y
tests
Come closest to a reasonable simulation of what
the job will involve
...But there are concerns
They have a relatively high cost
They generate huge amounts of documentation
Ethical and practical problems of providing
Concerns about Assessment
Centres
Ethical and practical problems of providing
feedback to unimpressive candidates
Potential benefits Potential problems
More favourable employee attitudes (e.g.
greater organisational commitment)
Greater investment of resources in the hiring
process
More desirable individual behaviours (e.g.
l b d t )
Relatively undeveloped and unproven
ti l ti t h l
Evaluation Hiring for the
Organisation and not the J ob
lower absence and turnover) supporting selection technology
Reinforcement of organisational design (e.g.
support for desired organisational culture)
Individual stress
May be difficult to use the full model where
pay-offs are greatest
Lack of organisational adaptation
Growing use of online
recruitment sites
Can save time and
money
E-Recruitment
Wider geographical
reach
Can interact with
candidates
Intention is to improve an individuals current on-
the-job performance
Recent development is 360 degree feedback
Feedback is derived from peers, subordinates,
Performance Appraisal
p , ,
supervisors and, occasionally, customers
Provides a more objective picture of an individuals
contribution, strength and development needs
The criteria emphasis increasingly on job
outcomes; have job performance goals been
achieved?
The interview training frequently provided to
The Performance Appraisal
Process
g q y p
improve face-to-face interviews
The appraiser high trust working relationship is
vitally important
The aftermath need to ensure that actions and
training needs are followed through
Move towards flexible and variable reward systems
Developments in pay policies also linked to
changes in work organisation
Key developments in pay policies include:
Performance-Related Pay
y p p y p
A move to individual performance or skills-driven
systems
Pay systems linked to business strategy and
organisational goals
Emphasis on non-pay items such as life assurance
There is increasing interest in HRM because of the need
to attract, develop and retain the best employees
There should be a clear link between the organisational
strategy and HRM
Effective job analysis can underpin a range of selection,
trainingand performance appraisal activities
Summary
training and performance appraisal activities
Different techniques can be used for employee
recruitment, each with their own strengths and
weaknesses
A range of skills are required in order to undertake a
successful performance appraisal interview
References
Boddy, D. (2005), Management: An Introduction,
3rd edition, Prentice Hall, Chapter 11
Campbell and Craig (2005), Organisations and the
Business Environment, 2nd edition. Butterworth-
Heinemann, Chapter 27, pp 579-602
Lecture 4 Human Resource Management
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Lecture 4 Human Resource Management Understanding Business Organisations

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