Unit 4 Area of Study 1: The Human Resource Management Function

Unit 4 Area of Study 1: The Human Resource Management FunctionChapter 10: Management of the employment cycle

The Employment Cycle The stages an employee progresses

through from the time they are employed until they leave the organisation

Pattern repeats itself as new employees are hired to replace those leaving

Three phases of the employment cycle

Establishment Phase

Maintenance Phase

Termination Phase

1. HR Planning2. Job analysis and job

design3. Recruitment4. Selection5. Employment

Arrangements6. Remuneration

1. Induction2. Training and

development3. Performance

Management4. Recognition and

rewards

1. Voluntary Methods2. Involuntary Methods3. Unfair Dismissal4. Termination

Management5. Outplacement6. Transition Services

The Establishment Phase

Human Resource Planning Planning for future personnel needs, taking

into account both internal activities and factors in the external environment

Awareness of factors from internal and external environment include: Structural changes in the labour market –

decline in manufacturing industries Work patterns are changing – flexible working

hours and a move away from traditional working week

(continued on next slide)

Length of working life is changing – later entry into employment, attitudes to retirement

Change in skills and education expectations – more people seeking tertiary qualifications

Labour shortage within the next decade due to the ageing of Australia’s working population

Increasing demand for work-life balance Generational change – difference need to be

acknowledged and worked around Change in strategic direction of organisations –

downsizing operations

HR Management must plan to assist the organisation to: Meet current employment requirements in all

phases of the employment cycle Cater for future needs by determining how

many employees will be required and what specific skills they must have

Ensure that the required human resources will be available to achieve the organisations strategic plan

Be in a position to assist the organisation to respond to external factors

Activity 10.1

Job Analysis Job analysis: systematic process of

gathering information relating to a job being performed. Finding out all the information about a job.

Job design: creating a new job or altering an existing position.

Job description: written statement of tasks performed, how and why they are done (job title, summary, responsibilities, duties, key performance indicators)

Job specification: the person’s experience, qualifications, skills, abilities, knowledge, remuneration and special requirements of the person

Methods used to conduct a job analysis: 1. Interviewing the present job holder –

can be time consuming 2. Questionnaires – allows for information

on a large number of jobs to be collected in a short period of time

3. Observation – job holder could be watched

4. Supervisory reports – details provided by supervision to give perception of what the job entails

5. Log books and daily work diaries – completed by the job holder

Activity 10.2 Worksheet

Recruitment The process of finding the best qualified

pool of applicants Process begins with:

Identifying human resource requirements Determining where the qualified pool of

applicants can be found (recruitment sources)

Choosing a specific means of attracting employees to the organisation (recruitment methods)

Identifying human resource requirements Ensure that people recruited and

selected have the unique skills and attributes required by the organisation

Determine whether the focus is on technical skills and formal qualifications or personality and the potential for personal and career development

Recruitment Sources Internal Recruitment: positions

advertised within the organisation to allow employees career advancement by transferring or being promoted

Advantages DisadvantagesQuicker adjustment to position

Employees may be promoted beyond competency level

Incentive for employees to gain career progression

No new ideas introduced, could stifle creativity

Motivator and morale booster Infighting and negative impact for unsuccessful applicants

Organisation knows applicant, applicant knows organisation

Any poor work habits will remain

External Recruitment: Locating candidates from outside of the organisation

Advantages DisadvantagesLarger pool of applicants Attracting/selection of new

employee is time consuming and difficult

New insights, skills and abilities bought to organisation

Induction takes longer

Costs can be lower as do not have to fill two positions

Limits career advancement of existing employees

New approach to work, issues and problems

Greater element of risk as new employee is an ‘unknown’ personCostly form of recruitment

Recruitment Methods Newspapers – large, well-known employment

sections in certain editions of local and national newspapers

Internet sites – those seeking jobs can enter specific details of the position they want

Business websites – often used in conjunction with other methods

Recruitment agencies – time is money so an organisation may outsource the initial stages of recruitment who screens out non-suitable applicants

Word of mouth – ‘head hunting’ is actively pursuing one person wanted for a position and offering them an attractive package to leave organisation for which they currently work

Activity 10.3

Activity 10.5

Selection

Selection is the process undertaken by an organisation to decide whether to make a job offer to a candidate

Selection Criteria

A list of what the organisation is looking for in the applicants for new positions

Include: Qualifications or

experience Skills Personal qualities

Receipt of application

Application: the letter or communication used in expressing interest in a job or advertised vacancy

Application form: basic source of employment information covering qualifications, experience and other job-related data

Initial screening Eliminates

applicants who do not possess the skills and expertise required for the position

Shortlist of applicants to be created for interviewing

Interviews 1. Planning the

interview 2. Create the interview

environment 3. Opening the interview 4. Questioning 5. Understand the legal

requirements 6. Listen and observe 7. Sell the job and the

organisation 8. Close the interview 9. Evaluate the

applicants

Testing Provides a scientific

component to recruitment

Aptitude test: test of special abilities that are required for a specific job

Personality or temperament questionnaire

Motivational questionnaire

Competency testing Physical examination

Background investigation

Reference checks provide important opportunities to learn more about candidates

Wise to check academic qualifications

Police check can be undertaken

Advising applicants of outcome

Position needs to be officially offered to the successful applicant

Remaining unsuccessful short-listed applicants need to be advised of their non-success

Employment Arrangements Permanent full-time basis – continuing contract of

employment, working 38 hours per week, entitled to salary or wages, leave entitlements and superannuation as well as long service leave

Permanent part-time basis – continuing contract working fewer hours than full-time, same entitlements made on a pro-rata basis

Casual basis – short-term, irregular or seasonal work. Usually paid on an hourly basis and no employment benefits such as leave

Fixed-term basis – either full-time or part-time for project work or to replace employees absent on long service or parental leave

Types of remuneration Wages – worked out on an hourly basis, overtime paid if an

employee exceeds ordinary hours. Penalty rates may be paid for Sundays and public holidays.

Salary – annual figure usually paid on a monthly or fortnightly basis. Overtime not paid to salaried employees.

Packages – use for senior positions, include a salary component, performance-based pay, company car, share options and other fringe benefits

Benefits – can be categorised as dependent care assistance programs (family care, maternity/paternity leave, alternative work arrangements) or benefit plans (additional superannuation, travel insurance, life insurance, medical benefits)