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LC: Human Resource Management

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R. Averill

on 17 April 2016

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Transcript of LC: Human Resource Management

Chapter 11
HUMAN RESOURCE
MANAGEMENT
UNIT 4: First Chapter
MANAGING
Unit 4 looks
into the job of
the business
manager in more
detail
Human Resource Management
Managing Change
Accounting
Insurance & Tax
Finance
*Definition:


What is Human
Resource Management?
"HRM involves
managing the employees
in the business, making sure
it finds, develops, keeps and makes the
best possible use of them."
Most large companies
will have a


HUMAN
RESOURCES MANAGER
and Human Resources
Department
We will look at the
main functions of
the HR Manager:

Manpower/Human Resource Planning -
Having enough people
Recruitment & Selection -
Choosing new people
Training/Development -
Improving their skills
Performance Appraisal -
Judging them
Pay/Rewards -
Paying them
Employer/Employee Relationships -
Managing Conflict
IDEA 2 - Function A.
Manpower Planning:
Making sure the business has enough
skilled workers to carry out all the jobs and tasks
in the business.
A. Audit your current workforce
How many staff?
Skills of these staff members?
Age of staff (Why is this important?)

*They have 150 pilots currently.
All experienced and fully qualified.
B. Plan future demand:
Estimate how many people
are needed.

-> With the new flights,
they will need to have 200 Pilots.
Example:
An Airline is planning to increase
the number of flights it runs from October
to 100: (EXPANDING)





It will need 2 Pilots for each flight e.g.
200 New Pilots.
Retirement?
or People leaving for
other Jobs

= 'Natural Wastage'
C. Make any changes:

Supply is less than demand so the
Airline needs to hire.
50 Pilots are needed.


-> BEGIN RECRUITING NOW
to be ready for October.
What happens if they
have 250 Pilots already?
Let people go:
Redundancy
'Downsizing'
Redundancy
= People lose their jobs
because there is no longer work
for them to do. (Not their fault)

Can be Voluntary or Compulsory
Offered to staff
with financial incentives
(Cash Payments)
Not given a choice.
Often leads to disputes
over the financial package.
A Snapshot of
the existing workers
and their skills
Economic Downturn
usually brings cutbacks
and redundancies ->
Work for the Human Resources
Department.


Select the people for Redundancy
**Functions of a HRM
What does the HR
Manager do?
(we will divide this up
into ideas) - There are 6

Business World:
Page 132



Read the short text on
Hibernian + answer
questions

Functions of the HR Manager
IDEA 3 - Function B
Recruitment & Selection:
-> Attract suitable candidates for
available jobs and CHOOSE the
best ones.
Recruitment is a
time-consuming process
that requires care and attention
How does a HR Department
recruit and select? (STEPS)
(i) Prepare a Job Description:

Explains the vacancy:
Job Title
Place of Work/working conditions
Who is your Manager/Supervisor
Tasks/Duties involved in the role
How you will be assessed (judged)
Salary or Wages*
RECRUITMENT STEPS
See
Example
Bus Eireann
(II) Prepare a Person Specification:
Skills/Qualities/Characteristics
and qualifications
required by the 'ideal candidate'
for the vacant position.




Activity:
ON YOUR WORKSHEET
Prepare a sample JOB DESCRIPTION
and PERSON SPECIFICATION
for
EITHER

1. A Shop Assistant
2. A Car Mechanic
(iii)
Find Candidates:
Using the description
and the specification, the
HR Dept will start to
find
candidates
by looking
internally & externally
by writing a job advert
Internal:
Within the business
Promoting people
'Re-deploying'/Transfer people (moving)
Use company's internal email/noticeboard
to tell staff about
job opportunities
External:
Write a Job Advertisement
Newspapers, Online, Company's website,
Recruitment Sites etc, word of mouth (personal
contacts), employment agencies
-> Tell people how to apply:
CV
Application Form
Cover Letter
Benefits
Internal?
External?
Benefits:
Internal:
External:
-> Faster:
Selection process
will take less time.
(fewer people to choose from)

-> Cheaper:
(don't need
as much advertising)

-> Familiar:
Company already
knows the person (Strengths,
skills etc) and vice versa (less
training needed)

-> Motivation:
If workers see
internal recruitment, they might
be motivated to work harder
-> Fresh approach
, new skills/ideas
and experiences from outside

-> No work relationship issues
or 'baggage':
They haven't had
arguments/problems with other
staff or managers in the company
(iv) Make a Shortlist:
To call for interview.
-> Check cover letter
-> Check Application form (if used)
-> Check C.V.
*Compare these against the
Person Specification & Job
Description
Sometimes a HR
Manager will use
an
aptitude, intelligence
or personality
test
to shortlist candidates
for interview
(v) The Interview:
A small
number of candidates will
be interviewed.
Face to Face questioning in
a quiet/formal environment

-> In depth questioning related
to the job/role aimed at
evaluating the suitability of
the candidate
Also check the candidate's
'interpersonal skills'
-> Make sure they aren't
just 'good on paper'
Sometimes a company will
reduce the number down
for second interviews:
Round 1 -> 10 Candidates
Round 2-> 3 Candidates
Candidates will usually
be scored and placed
in order for the job.
(vi) Check References on CV:
Once the HR Dept has decided
on a candidate, they will ring/contact
the references

-> Are they real?
-> Are they truthful?
(vii) Make an offer:
Once a successful candidate
is found, a Job Offer will be
made.



A written copy of their contract
will be sent to them and a LEGAL
Contract is formed
Unsuccessful Candidates
must also be informed formally
in writing.
Good Recruitment &
Selection:
IMPORTANCE?
-> Find the best suited people
for the job and the organisation

-> Well suited staff more likely to stay

-> Cut down on wasted time & money
by discouraging UNSUITABLE
candidates.
Idea 4 Function C



Training & Development:
*It is the responsibility of the
HR Department to
train in new staff
and develop the skills
and abilities of current staff

New staff get
'Induction' training:

-> Layout of the company
-> Mission Statement
-> Policies
-> Key People
-> Code of Conduct
-> Health & Safety
-> Training for their role
Training:
TWO TYPES:

'On the Job'?
'Off the Job'?
On the Job:
Learn and get practical
experience AS YOU WORK




-> Happens in the place of work
-> Observe more experienced workers
-> 'have a go' and learn from mistakes
-> Practice the tasks of the job
e.g. Trainee Nurse:
On the job training
6 Months in Emergency Dept
6 Months in Operating Theatre
6 Months in Hospital Wards
Observe more experienced staff
Ask Questions
KNOWN as 'Work Shadowing'
Existing Staff get
'on the job' training:
-> Update their skills
for new technology
or work practices

e.g. a new computer system




Staff learn by 'doing' their
day to day job using new skills
Off the Job Training:

HR will organise & sometimes pay for:
Training & Education for Staff
to improve their skills and abilities
that takes place OUTSIDE WORK

->'Training Days'
-> Course Days
-> University Courses (Masters/PHD) etc
-> Online Courses
-> Conferences
Sometimes, a company will offer
financial incentives
or
promotion
to staff who increase their skill
or education levels.
Staff Development:
This is slightly different to
'Training'

Development means offering staff
the chance to learn new skills that
will benefit them during their entire
career:
Compare:

'Training' vs 'Development'

1 Day Training course on using the new
Computer System
vs
Week-Long introduction to I.T and Computers
in the workplace conference
Overall Benefits
of Training & Developments?
Skilled workers & trained workers = Better workers
Wider range of skills
Less supervision needed (wider span of control)
Manager has more free time
IDEA 5 Function D:
Performance Appraisal




Evaluating Employees
Judging them
Assessing them
& Measuring performance
'Process of setting performance
standards for workers (goals/objectives)
and assessing and measuring their
performance'

This occurs regularly (perhaps once or twice
a year, sometimes more) Workers are given
Feedback. -> USUALLY FACE TO FACE
Workers who do well?
Workers who do badly?
Offer them Pay rise,
Offer them Promotion,
Offer them Bonuses
KEEP THEM!
Extra Training
Motivation
Demotion
Discipline Procedures
Removal of bonus

Performance Appraisal 3 Steps
Step 1: Employee will meet with their manager (department manager) and
set targets/goals for the year ahead/6 months etc ('bring in 5 new clients')
Step 2: Progress Reports: At the end of
the 6 month/1 year period,
the Employee
must write or verbally express their performance
to their manager. The manager will evaluate this
Step 3: Manager will fill in a formal
'Performance Appraisal' form and will meet
the employee to discuss the results. (FEEDBACK)
-> Future Goals
-> Training needs
-> Expectations for the Year
-> Promotion Prospects/Transfer?
Advantages/Disadvantages
of Performance Appraisal
Advantages:

-> Identify Staff with weaknesses
and training needs
-> Identify Staff who are performing badly ->
Try to change this.
-> Identify high performing staff
for promotion/pay rises
-> Motivates Staff: They know their work
is being watched
-> Staff know what is expected of them
(Targets)
Disadvantages:

-> Appraisals can be sensitive
and require skilled managers
to carry them out

-> Take up significant time
to prepare for and carry out
Watch the video, see
can you spot any features
of Performance Appraisals
and see can you spot
the mistakes of the Manager
in this case.
Employee Rewards
Employee Rewards:

-> Can be Financial
and Non-Financial
Remuneration
The HR Manager's
job is to agree on
remuneration (payment
in return for employment)
packages for Staff.

REMUNERATION
PACKAGE = Mixture of Wages,
Bonuses, Benefits
Need to be Generous
enough to attract




top new staff and continue
to motivate current staff
Financial Rewards?
Examples?
1. Salary:
Agreed annual payment
for a specific job. Usually monthly or fortnightly
-> Linked to experience/qualifications

2. Wages
: Often weekly, calculated on the basis
of 'amount of work carried out' -> Often can get
overtime
or
bonus
for extra work
-> Flat Rate
-> Time Rate / Hourly Rate
-> Piece Rate
Flat Rate
= Pay per Week/Month
e.g. E2,000 a month
MOTIVATION?
Time Rate
= pay per hour
with possibility of HIGHER
Overtime e.g.
'Time and a half'
or 'double time'
Piece Rate
= Pay per item
produced as long as it is of
a high standard.
-> Manufacturing industries
-> Reward for skill/speed
Commission = worker
receives a small percentage
of their SALES
e.g. 3% of total sale of a car
for a Car Salesperson
Often with
LOW FLAT
RATE
Other forms of
Monetary Reward:

Bonus:
Payments on top of basic pay
-> for meeting targets / objectives, if the
company has a good year
due to increased work or effort.
Up to $8,000/year in tuition reimbursement * Easy for the employer to operate
BUT -> Up to $8,000/year in tuition reimbursement is a real incentive for the worker to try harder
-> Another kind of
Bonus is.....
What effect will this
have on employees?
1. Greater motivation to work
2. Best staff will be attracted
by this system
3. Feel some 'ownership' of business
so might lead to positive industrial
relations.
-> Benefits in Kind:
(Perks)
NON-Cash payments
made to employees.
NOT Cash but worth
something.

'fringe benefits'
Examples?
Mobile Phone
Company Car
Petrol Allowance
Laptop
Free Lunch
Free Travel
Health Insurance
Good for STAFF
MOTIVATION
Share Ownership
Schemes?
(another Financial
reward)
Employees are given
shares in the company
for Free or at
a reduced rate.
= BIG incentive to
work hard if you own
the company.
= get a
Dividend payment
Non-Financial
Rewards
REWARDS that are....

Not money &
Not a gift 'worth something'
Examples?
What do you think?
(i) Job Enlargement:
More duties given
to the employee.
No
'higher' responsibilities
just MORE WORK
-'relieve boredom'
-> MORE VARIETY
(ii) Job Enrichment:
Giving employees more
challenging and interesting
work.

-> Push workers to improve
-> Use their wide range of
skills and abilities
e.g. Factory worker
-> Usually works on the
assembly line
-> Given more things to do on the same
line and workload
is increased
(iii) Working Conditions/Welfare:
You want your workers
to be motivated. Conditions can
help this: Remember Google's
Office?
Hours of Work
Holiday time
Employer Flexibility
e.g offer long holidays to staff
reduced working hours
Flexitime
Allow Employees
to choose their start and
end time so long as they
work their set number
of hours.
-> Gives workers
a sense of control
e.g can work
around personal issues
Children/Family etc
Reward Staff
with an inspiring
office space:
perhaps Open Plan

again remember
Google ->
'free laundry service' etc
Job Sharing:
2 people work
one job and share
hours.
-> 'Parents with young kids'
Pay/Rewards:
What is the Importance?
of having a good system
-> Motivates Employees
to work harder = good for the
business
-> Attract and keep the best staff
= better ideas/more productivity
= more sales and profits!
Example->ABQ
Koala Komputers
Question 1 & 3
Relationships between
EMPLOYER & EMPLOYEE
Idea 7
FINAL ONE -> Function F
Industrial Relations:
The relationship between
employer and employees
-> Is it positive / negative?

How is communication?
How is the working relationship?
Do they 'get on well'?
VITAL for a
functioning business


-> Happy workers, high morale
-> Work harder, more effort
-> Loyal, Low turnover
-> Cost saving (recruitment/selection/
training etc)
-> Workers delegated more work =
benefits of delegation
-> Reduce chance of strikers/industrial action
Turnover: Why would a
company have high Turnover?
-> Poor Pay
-> Poor Conditions
-> Bullying/Discrimination
-> Bad recruitment in the first place
-> Opportunities EXTERNALLY (other jobs)
-> Job satisfaction (lack of) -> Work is boring
or uninspiring
-> Negative Industrial relations
People leave jobs due
to>>>>>>>>>>>>>>>>
HOW CAN HR IMPROVE
THE RELATIONSHIP BETWEEN
WORKERS AND EMPLOYERS?
1. Clear and Regular
Communications with
STAFF


Keep them informed, don't
lie or hide things, build trust
2. System of Grievances
Procedures:

HR and Employees should
have a system in place so
that if conflict occurs, everyone
knows the next step -> Reduce
industrial action, keep it 'in house'
e.g. Redundancies Procedure
"Last in, First out"
Example:
3. Regular Training:
Keep managers trained in dealing
with Conflict -> 'sensitivity'
Keep employees trained on their
role in the company and their duties
-> Reduces problems over work
4. Motivate Staff:
Use the management skill
of motivation to keep workers
happy. -> Theory Y, Maslow's
Theory

Motivated workers = Good
Industrial Relations
5. Rewards:
Offer both Financial
& Non-Financial reward
packages


6. Skilled Recruitment
and Selection:

-> Get it right from the start.
HR should seek staff that
FIT the BUSINESS CORRECTLY
= more likely to have positive
Industrial Relations
Overall
Benefit of
Human Resource
Management

-> Low staff turnover
-> Hard-working, motivated,
flexible, staff
-> More sales/profits/customers
-> Good working atmosphere
-> Highly skilled staff
-> Correct number of staff

Questions on this Topic

Long Qs:

2008 Qs4

Managing:

(A)
Performance Appraisal
,
Training
and Development
and
Managing employer/employee
relationships
are important functions of a Human Resources Manager.

Explain the functions list
e
d above and analyse the benefits of any TWO for a business organisation (25 Marks)

(B) Outline the different methods of rewards
used to motivate employees in a business. (15 Marks)

Unit 4 - MANAGING 2

-> Tax & Insurance
-> Human Resource Management
-> Finances & Ratio Analysis
-> Managing Change
PERSON SPECIFICATION Bus Eireann drivers require:

A full clean Irish Driving Licence
A maximum of 2 Penalty Points
Ability to speak English
Good Communication Skills
Good Inter-Personal Skills
Safe and Calm person who is Friendly and Polite
Strong Numeracy
Strong Literacy
A minimum of a Leaving Certificate Qualification







EXAMPLE of STAFF TRAINING OPPORTUNITY
Many Industrial
Relations Issues
come from problems
with
PAY/
CONDITIONS/PENSIONS



Profit - Sharing Schemes:
-> Part of the overall profits
of the business go to

employees
on top of their basic salary.
HRM - U4 Chap 11 Past Exam Qs
2013
2010
2008
2003
-> We are working through
HUMAN RESOURCE Management

Every business must manage their people

-> HUMAN RESOURCE MANAGER
Functions

1. Manpower Planning: Figuring out what
you have and what you need

2. Recruitment and Selection: Advertising and choosing
new staff
PLAN:

Tuesday Block Class
-> Finish HR
-> Attempt Exam Qs

Wednesday Block Class
-> ABQ Questions
2009, 2004, 1999
Units 1,2 and 3
See DCU Staff
Induction Pack

-> Look at the Time scales
READ:
After 1 Day: What should have happened?
After 1 Month: What should have happened?

It is the Job of the HR Manager
to organise INDUCTION TRAINING
Induction & 'on the job'
WHY
?

Better Educated
= More productive
for the company
+ Better Ideas
Example Accountants

-> Do night classes
mixed with 'on the job' training

-> Get Pay increases if they pass exams
Idea 6 FUNCTION E:
INDUSTRIAL
RELATIONS
I want you to TRY 2008 Question 5 A and B

Before XMAS

Unit 4 - Human Resources

Functions of the HR Manager

1. MANPOWER PLANNING
2. RECRUITMENT & SELECTION
3. TRAINING & DEVELOPMENT
4. PERFORMANCE APPRAISAL
5. REWARDS/REMUNERATION


Obviously, there is
an entire chapter
on Industrial Relations

UNIT 1 - Chapter 3

You will notice, your book
doesn't really have much on this
VITAL for a
functioning business

WHY?
FINALLY!
it means Employees
have to spend less
of their own money
on things
CREATE:
A Job Advertisement
for a Nursing Job
-> Imagine you have
done a Job Description
& a Person Specification
ACTIVITY:
Use these 2 Documents
to CREATE A
Job Advertisement
that you would print
in a National Newspaper
(Look at your Example
Job Adverts as a Guide)

-> Key Details
Job Starts in September
Working in the Mater Private Hospital
Put Contact Details at the end (make them up)
Nurses must be REGISTERED with the nursing board and hold a DEGREE in general nursing
Quick Interview with
HR Workers

Try to note WHAT
it is they do
Google: Perks


Now, before we do
the FINAL
FUNCTION

-> Get you to apply
what you have learned

-> Applied Business Question
Short Questions

Do Questions

->
TEST 1
TEST 2
TEST 4
TEST 5
TEST 6
TEST 8
TEST 9
TEST 10
TEST 12
ABQ
'Fish-are-Friends'

Part A

Evaluate Diarmuid's Effectiveness as a HR Manager
(25 Marks) = 4 Points x 5 Marks + 5 Marks
for evaluation

e.g.
MANPOWER PLANNING:
Explain -> Link -> Quote
EVALUATE:

IDEA 1:
2014
2015
This chapter
deals with
the functions
of the Human
Resource
Department
IN School

-> Performance Appraisal

Mid-Term Report - October

Xmas Report - January

Easter/Spring Report - April

Summer Report - June
Watch the Clip
and Answer the
Questions
http://www.businessinsider.com/google-11-amazing-classes-that-google-employees-can-take-2012-3?IR=T
Full transcript