Human Resource Management

Human Resources Topic Study Notes Scaffold

1.​ Human Resources Cycle

2.​ Acquisition - definition

-​ Internal Recruitment - advantages/disadvantages

(in the business)

Advantages Disadvantages

Cheaper If done all the time, no new

perspectives/experiences are
brought into the business

Good motivator(“if I work hard, I Can create unhealthy competition

could get promoted!”) between workers

-​ External Recruitment - advantages/disadvantages

(Outside of the business)

Advantages Disadvantages
 New perspectives/experiences are More expensive
brought in from other businesses

More choice Takes more time

Existing workers may feel

unappreciated

3.​ Development - definition

Training - Training develops employees to be better at their jobs by improving their

skills

-​ On the Job (Internal) Training - advantages/disadvantages

-​ Off-the-Job (External) Training - advantages/disadvantages

On the Job -Trained through performing the Off the Job - Stop work to train
actual job

Advantages Disadvantages Advantages Disadvantages

-​ Cheaper -​ Unlikely to -​ Specialist -​ More

-​ Less Disruptive learn new trainers might expensive
-​ Training is techniques be better at (time lost +
always relevant -​ The employee delivering covering
to the specific has no extra training absences +
workplace qualifications -​ May offer training fees)
-​ Current staff knowledge and -​ May not be
may not be skills that are suited to this
good at new to the business (seen
teaching skills business as irrelevant
(eg. lack -​ Networking
patience) opportunities

Induction - The process of introducing new employees to a company, its culture, and
their specific roles.

- Features of Effective Induction Programs

• gives employees a positive attitude toward the job and the business

• builds a new employee’s confidence in the job

• stresses the major safety policies and procedures, and explains their application

• helps establish good working relationships with co-workers and supervisors.

 Coaching / Mentoring - definitions

- benefits/similarities / differences

Development - Induction

Coaching Mentoring

Focused on improving skills It is a mutually agreed role,

and performance and which suits experienced staff
helping individuals manage keen to transfer knowledge
specific work roles more and skills through succession
effectively. planning

Benefits -​ Business, through -​ An individual,

improved teamwork, through personal
performance and growth, potentially
productivity improves
-​ May enhance morale performance
-​ May also benefit the
business
-​ Enhances morale

Simularities -​ Enhances morale

-​ Focus on the development of an individual, whether
a new or an old employee

Differences -​ Structured Unstructured

-​ Specific Time frame No time frame

4.​ Maintenance - Maintenance focuses on the processes needed to retain staff and
manage their well-being at work.

Monetary Rewards - Monetary rewards are those reflected in pay or have financial
value eg, bonuses, pay rise, gifts, shares in the company, holidays.

Non Monetary Rewards - Are those which do not have financial value eg, praise,
interesting jobs, positive feedback, peer recognition, more responsibility.

Strategies to Maintain Staff

-​ Workplace Culture
-​ Staff Participation
-​ Flexible Work Arrangements / Family Friendly Programs
 5.​ Separation - the termination of an employment relationship, meaning the end of the
employment contract between an employee and an employer.

Voluntary - worker’s own free will

-​ Retirement
-​ Resignation
-​ Redundancy

Involuntary - Against the worker’s will

- Dismissal
- Redundancy

Human Resources Topic Summary

Human Resource Cycle

The four main elements of the human resource cycle/staffing process

1.​ Acquisition - Hiring new employees

-​ Planning: identifying staffing needs and job analysis (determining the exact nature of
the position to be filled)
-​ Recruitment: attracting people to apply for the position in the business; internal and
external recruitment
-​ Selection: choosing and hiring the most qualified people; testing and interviewing

This phase focuses on attracting, recruiting, and selecting new employees. It involves activities
like workforce planning, job analysis, recruitment strategies, and the selection process.

2.​ Development - Improving employees’ skills and abilities

-​ Training: teaching employees new skills and helping them learn tasks associated with
their jobs
-​ Development: the process of improving the skills, abilities and knowledge of staff

This phase centers on enhancing employee skills and knowledge through training, development
programs, and performance management. It aims to improve employee capabilities and ensure
they are well-equipped to meet organizational goals.

3.​ Maintenance - Motivating employees to remain with the business

-​ Monetary benefits: rewarding employees’ efforts through financial compensation; pay
rates
-​ Non-monetary benefits: rewards such as conditions; fringe benefits

This phase involves managing employee relations, compensation and benefits, and ensuring
compliance with labor laws. It focuses on creating a positive and productive work environment.

4.​ Separation - Employees leaving the business

 -​ Voluntary: employees leaving on own accord; retirement, resignation
-​ Involuntary: employees being asked to leave; retrenchment, dismissal

This phase deals with the end of an employee's tenure with the organization, whether through
retirement, resignation, or termination. It includes exit interviews, severance packages, and
ensuring a smooth transition for both the employee and the organization.

●​ Acquisition

Acquisition is the process of attracting and recruiting the right staff for roles in a business. Acquisition
Involves 3 Steps:

1. Identifying Staff Needs (also called HR planning) – Making sure the business has the right number of
qualified staff.

→​ This involves identifying the demand for employees at a point in time, forecasting the supply of
employees and determining variances (action plan to remedy the shortfall or surplus of
employees).

Once a decision has been made to recruit, a job analysis, job description and job specification are
produced.

Job Analysis Process of collecting, analysing information about individual jobs.

Job Description Statement providing basic information about the job, title purpose, reporting
relationship, activities/ tasks
Job Statement Statement of personal attributes eg: qualifications, experience, ability to deal
with people

2. Recruitment – The process of locating and attracting the right quantity and quality of staff to apply for
employment vacancies or anticipated vacancies at the right cost. Sources of recruitment can be internal
or external.

Effective recruitment helps increase the success rate of the selection process. This involves:

→​ It needs to be fair and legally compliant with anti-discrimination legislation and equal
employment opportunity (EEO).
→​ Hiring qualified job applicants who are motivated and have values and goals aligned with the
business.

Techniques Include:

→​ Advertising (newspaper and especially now the Internet, sites like Seek)
 →​ Head Hunting

→​ Recruitment Agencies

→​ Word of Mouth

Recruitment is costly in terms of time and money

Internal Recruitment -(inside the organisation) The process of filling job vacancies by promoting or
transferring current employees within an organisation, rather than hiring externally.

Advantages

-Faster hiring

-lower costs

-improved employee morale

-familiarity with candidates

Disadvantages

-Limited talent pool

-potential for resentment

-lack of innovation and new ideas

-potential for bias

External Recruitment - (outside the organisation)

Advantages

-A wider talent pool

-fresh perspectives

-increased diversity

Disadvantages

-higher costs

-longer onboarding

-potential for cultural mismatch

-time-consuming

-lower employee morale

3. Selection – Involves gathering information about each applicant and using that information to choose
the most appropriate applicant.

●​ It needs to be legally compliant with anti-discrimination legislation, EEO.

Techniques Include:

→​ Application forms, covering letters, CV’s

→​ Interviews

→​ Psychological tests (intelligence, aptitude, personality)

→​ References

Selection is costly in terms of time and money

●​ Development

Development is the process of developing and improving the skills, abilities and knowledge of staff,
through induction, ongoing training and further professional development.

Benefits:

●​ Effective development programs ensure that experienced and talented staff are retained.
●​ Enhances employees’ motivation and commitment to the business through promotion
opportunities over the longer term.

Training

The aim of training is to seek a long-term change in employees’ skills, knowledge, attitudes and
behaviour in order to improve work performance in the business.

It is essential in overcoming business weaknesses, building on strengths, maintaining staff commitment,

adaption to change and staying ahead of the competition.

Training Programs – An effective training program is planned and seen as integral to the business
strategy and to maintaining or developing business’s competitive advantage. Ongoing training is critical
due to rapid technological change.

Training Can Be:

→​ On the job techniques are methods applied in the workplace while the employee is working
(e.g. apprenticeships, demonstration, mentoring, job rotation)
→​ Off the job techniques are away from the workplace (e.g. higher education, outside courses,
conferences)
 Advantages Disadvantages
-The trainer may lack teaching skills
On the Job -cost-effective
Training -An employee may pick up bad habits
(Internal) -training is directly relevant to the from a trainer
employee’s job
-can disrupt normal workflow
-employees learn while working
-less exposure to new ideas and
-Builds relationships with industry best practices
colleagues and supervisors

-can be tailored to the specific

needs of the business

-provides access to a specialist -​ More expensive

Off the Job trainer and expertise -​ Employees are away from
Training workplace less productivity
(External) -no workplace distractions during
-​ -risk of employees leaving to go to
training
another job after gaining new skills
-boosts employee confidence and
motivation

Induction

An opportunity for an organisation to welcome their recruit, help them settle in and ensure
they have the knowledge and support they need to perform their role.

Mentoring and Coaching

Mentoring is a mutually agreed role, in which experienced staff transfer knowledge and skills to new
employees. It is more focused on building a personal relationship that encompasses the life experience
of both parties.

Coaching is focused on improving skills and performance, and on helping individuals manage specific
work roles more effectively. Coaches may be provided by the business or may be sought by those
seeking further development.

Benefits:

Differences:
 Mentoring Coaching
Focus ●​ Individual life ●​ Performance
development, enhancement by
preparation for future building skills and
roles capabilities, overcoming
weaknesses, resolving
specific issues

Role Facilitator, guide, based • Specific to employee’s work

on sharing advice and function
experience
• Assists employee in setting
• Personal relationship, goals and finding solutions
more like a friend

function ●​ Provide advice that may ●​ Share skills, knowledge,

assist in improving the styles and techniques
way someone manages that are relevant to
issues and situations employee needs

Time frame No time frame Specific time frame

structure unstructured More structured

Benefits • Individual, through personal • Business, through improved

growth, potential improvement teamwork,performance and
in performance productivity

• May also benefit business • May enhance morale

• Enhances morale

●​ Maintenance

Maintenance is the process of retaining staff and managing their wellbeing at work as well as motivating
them to be more productive.

This involves looking after staff wellbeing, safety and health, managing communications effectively, and
complying with industrial agreements and legal responsibilities.

Monetary Rewards are those reflected in pay or have financial value, e.g. bonuses, pay rise, gifts, shares
in the company, holidays

Non-Monetary Rewards are those which do not have financial value, e.g. praise, interesting jobs, positive
feedback, peer recognition,and more responsibility

Strategies to Maintain Staff:

 ●​ Encouraging staff to participate in decision making and giving employees some control over their
work lives.
●​ Healthy and safe work environment, where work-related stress and unproductive conflict are
minimised
●​ Offering flexible and family friendly working conditions that support work–life balance

e.g. job sharing, part-time and flexible working hours

Communication and Workplace Culture

Effective workplace relationships depend heavily on the strength of a business’s communications

systems. Poor communication is often reflected in workplace conflict and high turnover rates.

Strategies to Improve Workplace Communication:

-Active listening

-feedback

-foster two-way communication

-invest in training

-practice regular one-on-one meetings

-check for understanding

-Use a communication tool

Strategies to Improve Workplace Culture:

-communication

-recognise and appreciate employees

-invest

Employee Participation

Firms encourage employee participation to improve communication, empower employees and develop
their commitment to improving quality and efficiency.

●​ Employees should be trained to make some decisions ‘on the spot’, either to solve problems or
provide incentives to retain customers

Businesses benefit from employee experience and knowledge on the job, and improvements they
suggest are often critical to a business’s competitiveness and success.

Strategies to Increase Employee Participation:

-training and development

-reward succes
-be transparent

Benefits

Benefits may be monetary in value or non-monetary and are available to all staff. They are an excellent
strategy in maintaining staff as it can encourage employees to stay with a business.

Businesses carefully consider the value of these benefits in terms of retention of staff and workplace
culture, as they are expensive

Typical Benefits can include: Give specific examples

-Flexible working arrangements

-paid training opportunities

-travel allowances

-health insurance

-subsidised gym membership

-housing and company car

Flexible and Family Friendly Work Arrangements

Employers can provide flexible working arrangements to attract and retain talented staff.

Flexible working conditions allow businesses to work more efficiently (less cost) or allow employees to
balance work and family responsibilities more effectively.

Typical flexible working conditions include:

-Parental leave

-Remote working/working from home

-changes to start and finsh times

-slit shifts or job sharing

●​ Separation
Separation is the process of employees leaving voluntarily, or through dismissal or retrenchment
processes.

Separation can be Voluntary or Involuntary:

Voluntary Involuntary
•​ Retirement •​ Dismissal
•​ Resignation •​ Redundancy
•​ Redundancy

Retrenchment

When a business dismisses an employee because there is not enough work to justify paying him or her

Resignation

-​ Or “quitting”, a voluntary ending of the employment relationship.

People resign for a variety of reasons:

-​ An offer of promotion with another business

-​ To start their own business
-​ Feeling of boredom with their present job
-​ The desire for change

An employee’s award, employment contract or agreement will set out how much notice (if any) they
have to give when they resign.

Redundancy

Redundancy occurs when a person’s job no longer exists, usually due to technological changes, an
organisational restructure or a merger or acquisition.

-retirement

retirement is generally defined as the voluntary cessation of one's employment, with the intention of
permanently leaving the workforce and potentially accessing retirement benefits or pensions. It signifies
a transition from full-time or part-time employment to a phase of life focused on leisure, other activities,
or potential part-time work for those who choose it.
Dismissal

Staff may be dismissed for a number of reasons:

-​ Summary Dismissal is an instant form of dismissal that applies to employees involved in gross or
serious misconduct, such as theft - Termination for misconduct must meet the test of being fair
and reasonable, given the circumstances. The Fair Work Commission decides.
-​ Dismissal can also be based on poor performance or redundancy due to organisational
restructuring, a downturn in business or technological change.

Employers need to prove that they have followed all the processes required before dismissing an
employee:

Poor Performance Cases Redundancy Cases

→​ Give employees a written warning about →​ The employee’s job was no longer needed;
their poor performance over a period of that the redundancy is genuine
time
→​ No appropriate work was available
→​ Give them advice and support so they have elsewhere within the organisation
the opportunity to improve
→​ The employee was consulted about
→​ Notify employees of the reason for the alternative redeployment options in the
termination and an opportunity to respond business