Chapter 4 The Human resource management function VCE Business Management Unit 4

Chapter 4 The Human resource

management functionVCE Business Management Unit 4

© Cambridge University Press 2012

The importance of human resource management to business

successHuman resource management (HRM) is theongoing management of people within theemployer–employee relationship. It involvesgetting the right people in the right place atthe right time.



success (cont.)

The HRM functionmust manage theorganisation’s mostcostly and valuableasset: its employees.



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.


The role of a human resource manager (cont.)

Strategies are then developed from relatedHRM activities created. Performanceindicators (PIs) are used to measure theoutcomes to assess how effectively theobjectives have been achieved.



In addition, HRmanagers are involved in:• strategic planning,

relating to forecasting• demand and supply of

labour and succession planning



• 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



• 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



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



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


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.


Motivation (cont.)

For an organisation, an individual’s motivationneeds 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 discussapproaches to motivation. Abraham Maslow’sfive-stage hierarchy of needs – physiological,safety, social, self-esteem and selfactualisation is based on importance of theneeds.


Theories of motivation (cont.)

It should be recognised that an individual wouldprogress through the stages. Each stage must besubstantially satisfied before moving to the nextstage, which would act as a motivator. HRmanagers need to understand the relationshipbetween the levels of needs and what HRactivities relate to each level.



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



Motivators relate to job content (e.g.recognition and responsibility) and are seen asintrinsic in nature. Hygiene factors relate to thework environment (e.g. working conditions andsalary) and the absence of these can lead to jobdissatisfaction.



Edwin Locke’s goal-setting theory states thatthe setting of goals leads to increased effort,tasks focus and persistence.



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.

Documents

Chapter 4 The Human resource management function VCE Business Management Unit 4