VCE Business Management 3-4

Management of the Employment Cycle Chapter

13

Introduction

The role of HR managers is to ensure that business strategy is followed when developing and implementing human resource strategiesNeed to forecast demand and supply of labor and succession planning as well as the overall management of the employment cycle

EstablishmentMaintenanceTermination

I.e. Coles Myer is recruiting now for Christmas selling period.

Establishment Phase

This phase establishes the relationship between the employee and the Organization

HR Planning

Job Analysis

Recruitment

Selection

Some affect either party, some both

Human Resource Planning

HR Planning involves planning an organization's future personnel needs while taking account of factors from both the internal and external environmentNeed to have an adequate supply of competent and motivated people to perform the duties and tasks required by the organization to achieve its goalsExamples of

SheratonCrownDaimaru

Human Resource Planning

Involves planning for establishment phase as well as maintenance and termination

Downsizing

Retrenchments

New business expansion

Response to change in environmentSocial

Law etc

Sources of Change

In your notes, use page 214 to note down 10 changes in the environment that affect HR planning

Note if each is from the internal, task/operating or external environment

Job Analysis

Job analysis is the process pf looking at a particular job in order to find out exactly what the job is and what skills and experience you need in the jobNote definitions of

Job analysisJob descriptionJob specificationPage 215

Job descriptions and specifications are used for training, selecting, recruiting, appraisals, planning and interview questions

Methods used to Conduct Job Analysis

Interview the current job holder

Questionnaires

Observation

Supervisor reports

Log books and work diaries

Note the Job Specification and Job Description for the Job handed to you

Recruitment

Recruitment involves identifying, locating and attracting a pool of applicants qualified for the job.Narrow down this pool for those with the closest fit and then select them for interviewThe recruitment process is “two way” employee also wants to see if they are a fit for the jobProcess

Identify human resource requirementDetermine where a qualified pool of applicants can be found (recruitment source)Choose a specific means of attracting potential employees to the organization (recruitment methods)

Identify Human Resource Requirements

It is the role of HR to ensure that the people recruited and ultimately selected have the skills and attributes required by the organization to achieve e its goals.

Technical Skills

Formal Qualifications

Personality

Cultural Fit

Potential for Development

Identify Human Resource Requirements

Organizations may need to have a recruitment policy

Job Description usedMethod of InterviewMethod of advertisingTesting processesReferencesConditions of employmentLetters of OfferRejection LettersLegal ComplianceRecruitment Methods (i.e. internal offered first)Affirmative Action – women, indigenous, minority groups, people with disabilities

Recruitment Sources

Internal RecruitmentMany LSO’s have a policy for all positions to be advertised internally first or that appropriate staff are identified and interviewed first

Can be posted on notice boards

On intranet

Raised at Career development meetings

Candidates wont always have to submit a resume but are usually interviewed and matched to a job description

External Recruitment Methods

There is a large variety of methods

Many organizations will use more than one method.

Advertising

LSO’s can choose to advertise open positions in

Local PapersState Papers i.e. Age, HWTNational Papers i.e. AustralianCareers section is sorted alphabetically by position type with many executive jobs in large block ads at the front or in the Front section of the paperAd needs to grab attention: use of font, color, graphics and note the job type, skills and qualifications, application process and contact

Electronic Recruiting

LSO’s can recruit off their own website as well as off Internet Recruitment company sites

www.seek.com.auwww.careerone.com.au

Cheap method of advertising as don’t have to pay print costsApplicants usually submit an online applicationVery popular for graduate programs

Government Employment Agencies

Federal government provides funding for agencies to act on its behalf to find work placement

Position tend to beClerical

Technical

Manual

Personnel and Management Recruitment Agencies

Privately owned agencies who usually recruit forAdministrativeTechnicalSalesProfessionalManagement

Use consultants to place staff, recruit people and companies who are looking for staffThey will screen staff, provide background checks, and submit a shortlist to LSO’s in return for a percentage of the hired employees packageHighest level are “headhunters” for senior management positions

Outplacement Firms

Used when an organizations downsizes and lets staff go under redundancy packages

Outplacement firm will consult with retrenched staff and find them a new position and/or offer counseling on career

University Recruiting

Many LSO’s recruit directly from TAFE’s and Unis

Tertiary organizations will hold open days or recruiting fairs to provide a contact point between graduates and LSO’s

Methods of Recruiting

Previously Unsuccessful applicants

Employee referrals

Unsolicited applications

Professional associations

Selection

Assessment of the suitability of applicants is made at the commencement of this stage and ends with an offer of employment

Process of selection follows a fairly standard format

Selection Process

Receipt of applicationCan be a standard format for applicationShould be acknowledged by the organization

Initial ScreeningEliminates applicants whose skills, qualifications do not meet the level required for the positionThen form a pool of applicants for interviews

Selection Process

InterviewsUsually a structured interview with a series of questions based on the position

Planning the interviewInterview environment (office, board room, etc)Opening the interviewQuestioning (closed and open questions)“Past behavior is a predictor of future behavior”Legal RequirementsListen and observeSell the job and the organizationClose the interview

Selection Process

Evaluate the applicantsCan be done by panel members

Use skills, qualifications , attributes

“Gut feel” can be important so don’t dismiss

Testing

Psychometric TestingAbility or intelligencePersonality or temperamentMotivationInterest Inventory

Competency TestingUses business games such as role plays or work simulation

Physical Examination

Background Investigation

Check your candidates references!

Don’t just check the ones the applicant has listed, check with other sources you have : professional bodies, employee contacts

Advise Applicants of Outcome

The position needs to be officially offered to the successful candidate usually by phone then letter to followLetter will contain details of employment conditionsRemaining applicants need to be advised that they were not successfulAdvise the organization that the position has been filled

Maintenance Phase

HR managers need to ensure organizations retain productive and efficient employees

Well compensated

Trained

Developed

Employment Arrangements

Employment typeEmployers and employees enter into a legally binding contractStipulated in the “Letter of Offer”Permanent Full Time (Usually 38 hrs/week), get benefits superannuation, leave entitlementsPermanent Part Time – Ongoing and pro-rata entitlementsCasual- Often oral contract, paid hourly, few if any benefitsContractors – could be full or part time but have stipulated length of service e.g. 2 years

Employment Arrangements

Employment AgreementAward-By industry and establishes minimum wages and conditions

Enterprise Bargaining Agreements – Certified by IRC

Australian Workplace Agreements: individual agreement between employer and employee

Employment Arrangements

RemunerationWages: usually hourly and specified overtime, usually paid weeklySalary: An annual figure paid usually monthly or two weekly. Normally no overtimePackages: Can include salary, bonus, superannuation, entitlements, share optionsRewards: Performance based pay, incentive pay plans: commission, profit sharing, shares, bonusBenefits: Family care, maternity leave, parental leave, telecommuting, school holiday hours, medical benefits

Induction

Sample ChecklistInduction is a series of activities undertaken by the organization to introduce new employees to the organizationCan be one day to weeksPurpose is to

Commence socialisation and belonging processCommunicate organisational values, beliefs, cultureProvide information about specific job tasksCreate a favourable impression

Good induction programs are important to reduce staff turnoverCould include a buddy program

Training and Development

Training is the process of providing an employee with the knowledge or specific skills needed to do a job

Computer skillsOH & SOperator skills

Development refers to preparing employees for longer term opportunities

Further educationManagement trainingJob rotation

Training Needs Analysis

How do yo know who and what training?

Needs analysisOrganisational

Task

Person

Performance Management

Absolutely vital for organizations to conduct continuous processes of evaluating how effectively employees are fulfilling their responsibilities. How?Performance Management: System used to improve organisational, functional and individual performance through linking the objectives of each.

Purpose of Appraisals

Measures an individuals performance and is a component of an organization's performance management systemCan be informal, oral, formal, written or an activity or taskFormal methods usually occur annuallyTraditional appraisals act to:

Tell an organization if selection of staff is effectiveGauges whether training and development programs are effectiveShows where training, development and motivational programs are neededProvides as basis for documenting decision on remuneration, promotion and dismissal

Key Steps in Process

1. Identify and establish performance appraisal goals

2. Evaluate of appraisal of an employees performance through observation and analysis

3. Review performance and provide feedback to employee. Strengths and weaknesses

Types of Performance Appraisal

1. Comparative Standards: Comparison is made between one employees performance and another. Rank employees from poor to excellent against criteria. Does not necessarily highlight weaknesses

2. Absolute Standards: Manager undertakes independent evaluation of employee. Can be difficult as no set criteria or formal and made end up as a running sheet of “black marks”

Types of Performance Appraisal

3. Management by Objectives: MBO the employee and manager/supervisor jointly determine a set of employee goals at the beginning of the review period. At the end, their performance is measured against these objectives and whether achieved or not and for what reasons. Objectives need to be in line with organizations objectives

Performance Appraisal Outcomes

Remuneration and Rewards: a merit rise or pay increase

Training and Development: Computer course, further tertiary study, mentoring, special project

Counseling: To assist with overcoming problem areas

Job Promotion: Move on to greater responsibility

Job Rotation/Transfer: To gain new experiences or to find a better fit

Termination: If the appraisal are consistently poor.

Termination Phase

Voluntary TerminationResignation: When an employee voluntarily leaves an organization

To Travel

To go to another job

To return to study

Usually give two weeks notice and then have an exit interview when leaving to highlight where the organization may have failed

Termination Phase

VoluntaryRetirement: When an employee leaves the paid work force. Not always older employee, could be younger if they no longer need to workOrganization loses

TalentKnowledgeCost of replacementBreakdown of effective teams

Termination

Involuntary TerminationRetrenchment: Usually lined to redundancy. Redundancy is when the organization no longer needs a particular job done by any person, or needs fewer people to do the same job

Usually occurs in organization restructuring due to new technology, cost cutting, closure of facilities.

Employees are entitled to redundancy payments and there is legislation requiring notice periods and payouts.

Termination

InvoluntaryDismissal: Often referred to as being fired, or sacked. Usually for unsatisfactory work performance or illegal or unacceptable behavior.Organizations must make sure that there is documentary evidence of problems and that counseling and disciplinary procedures have been followed.Need to provide written notice to the employee for termination except where a criminal offence has been committed.

Unfairly Dismissal

Industrial Relations Act of 1988 regulates termination of employees for all on Federal Award or Certified Agreements. Cant dismiss due to

Temporary absence for illness or injuryHolding membership in a union or participation in union activitiesNot holding union membership[pParticipating in proceeding against an employer for alleged violation of law and regulationOn the grounds of race, sex, color, sexual preference, age, disabilities, marital status, religion, political opinions, social originAbsence due to maternity and paternity leave

Services

Terminated employees may useOutplacements Services

Transition Services

They assist with new careers, counseling, retirement planning, connection with the company after retirement