Human Resource Management

Year 12 – Semester three – Unit six

Human Resource Management

  Human resource management (HRM) is the management of the employment relationship. Broadly speaking it covers establishing, maintaining and terminating employment. The function of human resource management involves:

  planning

  organising

  leading &

  controlling the staffing needs of an organisation

Concept of HR Management

  The concept of HRM involves three main concepts:

1  Evolving HRM concept

2  People and work

3  Human resource environment

•  Over the next few lessons we will explore these three concepts to gain an understanding of the HRM concept and how it relates to businesses in the music industry.

Evolving HRM Concept

  In today’s business environment the role of human resource manager has become much more than just one of hiring and firing staff.

  Activity – Interview someone in class who has a part-time job with a relatively large business (McDonalds etc.). Ask them:

1  Does the business have its own HR manager or department?

2  If so, what is the role of this person/department?

•  Do you think that HRM involves just the hiring and firing of staff? Explain your answer.

Approaches & Theories to HRM

Theory Date Feature Scientific management Early

1900s A very structured way to complete each job

Needed to find employees who suited job

Wages used as an incentive to perform task

Human relations (behavioural) management

1920s-40s Examination of the relationship between

employees satisfaction & productivity

Personnel management 1950s-70s Departments whose role was mainly to

recruit staff

Managing the payroll

Human resource management Latter part of 20th century

Included in the strategic management of

the organisation

Sees employees as valuable assets

Task One

  In pairs:

1  Distinguish between HRM & personnel management.

2  Briefly explain how the HR function is linked to productivity.

3  ‘Human capital’ is an expression increasingly used. What do you think this means?

4  Web search the evolution of HRM theory. Analyse how this has evolved into the important field that is evident today. Present your findings as a report.

Strategic importance

  HRM is developing from a separate administrative task into a fully integrated function of the organisation. As the contribution of HR to business success is now recognised, HR managers are increasingly involved at the strategic planning level and even in the board room.

  Organisations look very carefully at the prospective employees and the skills they possess to ensure that they will be able to fulfill the overall strategic plans.

  HR managers not only have the task for recruiting staff with skills to meet current needs but they also need to find staff to meet the future needs of the business.

Task two

  In relation to a live music venue how might HRM serve (or support) the business strategy and the achievement of objectives?

  Read the article provided and answer the following:

1  Indentify the HR challenges facing Zorbas.

2  Analyse the strategic planning that is being undertaken to overcome these challenges.

3  What other options can you suggest?

Role of HR manager

General manager

HRM

Recruitment Manager

Performance Manager

Staff Development

Manager

Employee Relations Manager

Health & Safety

Manager

Marketing Manager

Finance Manager

Operations Manager

Why do you think the HR Manager is located at a level above other managers who have specialised areas of responsibility?

Task Three

  Draw an organisational chart for The Hive.

  Present your chart to the class.

  Be prepared to explain your chart and why you have positioned certain roles where you have.

People and Work

  To create an environment where workers are performing at their best, three things are vital

1  job design

2  the understanding of the motivation theories

3  the implementation of work practices that develop job satisfaction.

What motivates you?

  Have a good think about who you are and what gets you fired up to complete a task/job:

  Is it financial reward?

  Is it the threat of punishment if the task isn’t completed?

  Is it the satisfaction of doing a good job?

  Is it the love of the job that you’re doing?

  Is it personal pride?

  HRM sees the staff of an organisation as human beings with human needs to be fulfilled.

  Staff have expectations of the job, they seek a degree of satisfaction from the work they do, and they need to be motivated to perform at their best.

  Expectations, work satisfaction and motivation are all closely related.

Employee Satisfaction

  All staff expect:

1  fair treatment by the employer (ethical treatment)

2  steady employment

3  good conditions of employment

4  a positive work environment

5  a safe workplace

Job Satisfaction

  can be affected by:

1  the nature of the work

2  remuneration (pay) for the work

3  work supervision

4  quality of relationships with co-workers

5  existence of career paths of development and advancement

6  work/life balance

Motivation

  is what drives the individual, which includes both internal and external factors and is very individualised. Staff can be motivated by:

1  financial incentives

2  opportunities for achievement

3  recognition for achievement

4  opportunities to hold responsible positions

5  opportunities for advancement

6  the type of work itself

Task Four

  In relation to your role as HRM for The Hive:

1  what will your ‘staff’ expect from the job and you as HRM?

2  how will you ensure that your ‘staff’ gain satisfaction from the jobs that you assign them?

3  which techniques/strategies will you use to keep your ‘staff’ motivated for their term of work?

Theories of Motivation

  Theories of work motivation are based on a view that people seek to maximise ‘pleasure’ and minimise ‘pain’.

  There are four theories of based on individual human needs according to the most influential theorists over the past 50 years:

1  Maslow

2  Alderfer

3  Herzberg

4  McClelland

Abraham Maslow’s hierarchy of needs

NEED LIFE EXAMPLES WORKPLACE EXAMPLES

5. Self-actualisation

Fulfillment, developing true potential

Interesting jobs with creativity & self-development involved

4. Esteem Recognition, sense of competence

Responsible tasks, professional recognition, promotion

3. Social (Belonging)

Social interaction, sense of belonging

Supportive management, opportunities for teamwork

2. Safety Security (physical & emotional security)

Job security, safe working conditions, freedom to unionise

1. Basic physical

Food, water, air, shelter

Sufficient pay for survival, satisfactory working conditions

Clayton Alderfer’s ERG Theory

Stage Expalination

Existence Corresponds closely to Maslow’s basic physical needs & to the physical aspects of safety

Relatedness Corresponds closely to Maslow’s social needs & to esteem needs that involves feedback from others

Growth Correspondence to Maslow’s needs for self-actualisation and some aspects of esteem needs.

•  The main difference between Aldefer’s and Maslow’s theories is that Alderfer did not assume that a person climbs the ladder of needs in any particular order. •  Any or all three levels of need might be important in employee motivation at any time.

Frederick Herzber’s Theory   Herzberg drew on Maslow’s theory of human needs and

expanded on it. He replaced a single hierarchy of needs with two sets of factors.

  In Herzbergs theory only the second set of factors are really useful in motivating employees. The maintenance model reminds HRM that some factors which initially seem positive can have little impact on performance.

Maintenance factors Motivational factors

Pay Achievement

Job security The work itself

Working conditions Recognition

Interpersonal relationships Responsibility

Organisational rules & policies Opportunities for advancement

David McClelland’s Theory

  McClelland found three needs that underlie much individual behaviour. They are acquired over time as a result of life experiences & vary from person to person.

Need Example

Achievement People who are high in need for achievement prefer challenging tasks, individual responsibility and feedback on their performance.

Affiliation People who are high in need of affiliation value interpersonal relationships and opportunities to communicate. They prefer to avoid conflict and competition with others.

Power People who are high in need for power prefer control over other people, attention and recognition.

Conclusion

  As you would expect there is continuing debate about the worth of the different motivation theories. Because people and work situations are so varied managers are frequently warned against uncritically applying any theories.

  The need-based theoretical contributions outlined here do however alter managers to the range of factors that can influence the motivation of any individual employee.

  However one of the best ways to motivate staff is to try and match jobs with people’s needs, skills and interests.

Task Five

  Text books required – pages 293 - 295

  Answer questions 1 – 9 (inclusive) individually.

  Answer question 10

  If time permits we will play the Management Game as a class group.

Teamwork

  Brainstorm the meaning of team and teamwork.

  Develop a list of skills you believe are necessary for teams to be effective.

  A lot of people dislike working in teams. Why do you think this occurs? How can these problems be overcome?

  In your role as HRM for The Hive how do you plan to foster a healthy team environment?

Teamwork cont...

  An effective organisation performs like a good team. Teamwork should be supported and encouraged by all levels of the organisation.

  Teamwork produces synergy, which is the result being greater than the sum of the parts. Team effort produces results that surpass the expected result of the combined efforts of the individuals.

  All managers and supervisors can be seen as team leaders, hence the emergence of the term ‘coach’ to describe an effective style of management today.

  Teamwork depends on the application of a set of skills by all involved.

Skills used in Teamwork

Contribution To make a contribution, team members must be able to communicate their views and ideas effectively. They need to initiate ideas and have the ability to evaluate ideas that come up for consideration.

Cooperation ‘Soft’ skills (people skills) are needed to support other team members so they know their contributions are valued. Listening skills, negotiation and consultation make for a productive team. On occasions conflict management and stress management are useful skills in teams.

Working towards an outcome

Team members works together to achieve a productive outcome. To do this members need perseverance, self-motivation, the ability to motivate others, good time management and group problem solving skills.

Characteristics of Effective Teams

  Consideration of the make up and skill mix when forming the team.

  Strong commitment of team members to achieving outcomes.

  Clear understanding of the team’s work.

  Open communication and trust among members.

  Sharing of information, resources and ideas.

  Minimal conflict.

  Ability to generate new ideas

  Seeking consensus on team discussions.

  Constructive feedback from higher-level management.

  Motivation and the ability to continue work in absence of a team leader

Task Six

  Think of a team you have been a member of.

1  How would you best describe the skills and characteristics of that team?

2  In terms of the characteristics of an effective team, how many of these applied to your team and in what ways?

3  Overall, would you describe this team as an effective one? Why/why not?

Job Design

  Job design is the process of identifying the exact tasks to be completed in a job. It is an integral part of strategic planning undertaking by HRM.

  Job design is reliant on many different factors. For example what are the requirements for working hours and breaks for employees? What are the workplace health and safety guidelines?

  Because motivation is an important factor workers must feel there is a purpose to what they are required to do and a degree of satisfaction from a job ‘well done’.

Techniques for designing jobs

  Job Enlargement – refers to an increase in the number of tasks to be completed in the job, with all the tasks being similar. This technique does not encourage motivation as it is simply increasing the amount of work to be completed.

  Job Rotation – involves moving workers through a number of different jobs. Helps to build a community in the workplace because if one employee is unable to work someone else can cover for them. This can be effective as workers are trained in several jobs and it can also decrease boredom.

Techniques for designing jobs...

  Job Enrichment – empowers the employee by giving more decision making in the job. This could include a greater number of tasks to be completed but with a higher degree of responsibility. This form of job design assists in motivating staff as they achieve a sense of responsibility and authority in their position.

  Discuss how Job Enrichment can be incorporated into designing jobs for your ‘staff’ at The Hive.

Task Seven

  Using the information you have just received in relation to Job Design:

1  Identify the jobs required for successful operation of an evening at The Hive.

2  In a table list the exact tasks required to be completed for each job. List the skills required to complete each task successfully.

3  Access an online job site such as www.seek.com.au or www.careerone.com.au and study a number of job descriptions.

4  Choose one job from your Hive list and write a advertisement for that position as it would appear on an online site. Include job description, duties and skills required.

Human resource environment

  Both internal and external environments impact on HRM.

  Consider your senior studies. Brainstorm to internal (at school) and external (outside school) factors that can have a direct impact (negative & positive) on your studies.

Internal factors

When planning staffing needs, HRM should consider:

•  the objectives of the business – where do you want the business to be in 3 years?

•  the staffing requirements needed to achieve these objectives.

•  the particular tasks & responsibilities of present & new staff.

•  the competencies, skills, qualifications & experience of present staff & required by new staff.

Internal factors...

  whether existing staff, including managers, are being used as efficiently as possible.

  the conditions of employment including working hours, wage or salary, sick leave & annual leave entitlements, training, and WorkCover and its associated costs.

Provision of workspace and equipment may also cost something. In addition the costs of recruitment should be taken into account.

External factors

HR is affected by developments & trends in four significant contexts.

1  Workplace attitudes – Examples of exchanges in attitudes that affect the HR function include changes in employee expectations, increased workplace flexibility, greater recognition of the importance of work-life balance and of human diversity the workplaces.

External factors...

2  Developments in Technology – The implementation of new technology impacts on an organisation’s staff in areas such as allocation of new work tasks, training & skill development, and changes to the culture of the organisation.

3  Legislation laws – passed by the federal and state governments impact on organisations in several HR areas including occupational health and safety (WorkCover), employee relations (industrial relations) and equal employment opportunity (anti-discrimination).

External factors...

4  Ethical and socially responsible management (ESM) – has become more significant to all function areas including HR.

Ongoing developments in the four contexts make it imperative that management takes a broad perspective and becomes even more sophisticated and skilled in its management of people. This challenging responsibility is the function of the HR managers.

Task Eight

  Complete the activities on pages 300 & 301 in your textbooks.

  Be prepared to share your response with the class.

  Be prepared to defend your answers if they are challenged.