THE HUMAN RESOURCE MANAGEMENT FUNCTION

AREA OF STUDY 1

UNIT 4MANAGING PEOPLE AND CHANGE

CHAPTER 5HUMAN RESOURCE MANAGEMENT

Reading Pages from 125 to 147

Clickview Online: HRM (worksheet)

Case Study Activities on Page 128

Case Study Activities on Page 132

Activities on page 132 Case Study on page

135 Activities on page 137 Case Studies on page

142 Activities on page 142 Case Study on page

145 Activity on page 146 Chapter Review

Questions Past Exam Questions

Business Management Chapter 5 Work RequirementsExpected Completion date: 16th of July

The importance of human resource management to business success

Human resource management (HRM) is theongoing management of people within theemployer–employee relationship. It

involvesgetting the right people in the right place

atthe right time.

Chapter 55.1

The importance of human resource management to business success (cont.)

The HRM function

must manage the

organisation’s most

costly and valuable

asset: its employees.

The importance of human resource management to business success (cont.)

HRM has progressed from an administrativerole to its current strategic role withrepresentation at senior management levels.

The role of a human resource manager

The role of an HR manager is to translatebusiness strategy into action. Initially, HRMobjectives must be established. Pressuresfrom the organisation’s external and internalenvironments influence these objectives.

Chapter 55.2

The role of a human resource manager (cont.)

Strategies are then developed from related

HRM activities created. Performanceindicators (PIs) are used to measure theoutcomes to assess how effectively theobjectives have been achieved.

The role of a human resource manager (cont.)

In addition, HRmanagers are involved

in: strategic planning,

relating to forecasting demand and supply

of labour and succession planning

The role of a human resource manager (cont.)

management of the employment cycle, which covers the three phases of establishment, maintenance and termination

innovative strategies relating to appraisal,skill development, remuneration andflexible work practices

The role of a human resource manager (cont.)

acting as an advocate for employees when negotiating with management

designing and implementing strategies to increase employee motivation, jobsatisfaction, productivity, employee relations and customer service

The role of a human resource manager (cont.)

acting as a change agent and providingsupport and education for supervisors, team leaders and line managers responsible for implementing HR policies and practices.

The role of a human resource manager (cont.)

HR managers arereferred to as staffmanagers, providingspecialist advice orassistance to line orfunctional managers.

Measuring HRM effectiveness

Effectiveness of HRM outcomes can beevaluated against the following: commitment and competence of

employees level of cost effectiveness

Measuring HRM effectiveness (cont.)

congruence (harmony) adaptability to change performance related to productivity level of job satisfaction and

employee motivation

Employee expectations Employees have expectations from theirwork, such as: being paid a fair wage keeping regular work hours gaining job satisfaction through an

interesting, challenging and secure job receiving assistance when needed and

positive feedback

Chapter 55.3

Employee expectations (cont.)

leave being available for personal or family reasons

flexible working arrangements, working within a professional and safe environment

an opportunity for skill development and promotion.

Employer expectationsEmployers have expectations from

employees,such as: working towards achieving

organisational objectives acting professionally and gaining job

satisfaction

Employer expectations (cont.) work being completed and on time;

providing good customer service; punctuality;

not sabotaging business activities; being committed, courteous and respectful; and working cooperatively and productively.

MotivationMotivation forindividuals is the

driveto achieve a personalgoal.

Chapter 55.4

Motivation (cont.)

For an organisation, an individual’s motivation

needs to be harnessed to assist them toachieve personal goals, while working

towardsorganisational goals.

Motivation (cont.)It is the function ofhuman resourcemanagers to supportand advise linemanagers on waysto motivate their staff.

Theories of motivationA variety of management theories discuss approaches to motivation. Abraham Maslow’s five-stagehierarchy of needs – physiological,safety, social, self-esteem and selfactualisation is based on importance of the needs.

Theories of motivation (cont.)It should be recognised that an individual would progress through the stages. Each stage must be substantially satisfied before moving to the next stage, which would act as a motivator. HR managers need to understand the relationship between the levels of needs and what HR activities relate to each level.

Theories of motivation (cont.)Frederick Herzberg’stwo-factor theoryidentifies higher order(motivating) and lowerorder (hygiene) needs.

Theories of motivation (cont.)Motivators relate to job content (e.g.recognition and responsibility) and are seen as intrinsic in nature. Hygiene factors relate to the work environment (e.g. working conditions and salary) and the absence of these can lead to jobdissatisfaction.

Theories of motivation (cont.)

Edwin Locke’s goal-setting theory states that

the setting of goals leads to increased effort,

tasks focus and persistence.

Theories of motivation (cont.)Goals set must be specific, measurable,achievable, relevant and time-bound.

Employeesmust receive feedback. This theory links

to theorganisational approach to goal setting

by usingthe Management by Objectives approach.

Human resource managementIt is the role of human resource managementto put motivational theories into practice.

Motivational theories for job satisfaction and performance

Commonly used motivators are established by: establishing a comprehensive reward system designing jobs to allow for enlargement

and enrichment

Motivational theories for job satisfaction and performance (cont.)

creation of teams quality circles and worker empowerment flexible work practices and a positive organisational

environment and corporate culture.

Why do organisations need to be ethical and socially responsible? All stakeholders and the community expectlarge-scale organisations to be sociallyresponsible and ethical in their businesspractices.

Chapter 55.5

Organisations differ intheir interpretation ofwhat it means tobehave ethically and ina socially responsiblemanner.

Why do organisations need to be ethical and socially responsible?

(cont.)

Why do organisations need to be ethical and socially responsible? (cont.)

Adopting an ethical and socially responsibleapproach has become one of the mostsignificant changes required by

organisations.

Ethical and socially responsible management of the internal environment

The internal environment is influenced byethics and social responsibility and its impactson objectives, structure, policy, culture,management style and skills.

Corporate social responsibilityCorporate social responsibility (CSR) impactson the operations management systemthrough quality, technology, materialsmanagement, environmental managementsystem (EMS) and supply chain management.

Ethical management of the human resource management function

CSR impacts on Humanresource management(HRM) through: recruitment methods selection induction

Ethical management of the human resource management function (cont.)

policies motivationemployment arrangementstraining and developmentperformance management and

exit strategies.

Ethical management in times of change

When large-scaleorganisations are goingthrough change, it isimportant that the

processincorporates ethicalbehaviours and isinfluenced by CSR.