Business Chapter 12 Flashcards
Human Resource Management
What is the human resource function concerned with?
Its main role should be that of strategic partner, and human resource strategies should clearly demonstrate the organizational strategy regarding people, profit and overall effectiveness
Human resource management as a strategic partner
1.Improve the skills base of employees and contribute to the profitability of the organization
2.Integration and teamwork are essential for organizational success
3.Every manager in the org should realize the importance of recruiting, selecting, training, developing, rewarding, assisting and motivating employees
The contribution of human resources to organizational effectiveness includes the following
*Assisting everybody in the organisation to reach stated goals;
*Making efficient use of the skills and abilities of the human resource planning;
*Providing the organisation with well-trained and motivated employees;
*Assisting in the attainment of the employees’ job satisfaction and self-actualisation;
*Developing a quality of work life that makes employment in the organization desirable;
Human resource planning
is the process of using an organization’s goals and strategy to forecast the organization’s human resource needs in terms of finding, developing and keeping qualified human resources
List the 2 phases of human resource planning
Phase 1:Identify the work required by the organization
Phase 2:Human resource forecasting
Phase 3:The human resource plan
Phase 1
To identify a position in an organization, a job analysis process is followed, which generates two outcomes: a job description and a job specification.
Job analysis
is the process by which management systematically investigates the tasks, duties and responsibilities of a job within an organization
various ways in which this information can be collected:
Observation by a qualified job analyst. The job analyst observes the employee working and records all the relevant information.
Interviewing, where the job analyst interviews an employee and asks for a description of responsibilities and tasks.
Questionnaires may also be used.
Job description
Whichever method of data collection is used for job analysis, the information is put in writing in a certain format so that other people who are not involved in the job analysis can gain thorough insight into the contents of the job.
Contents of a business:
Job title, purpose of the job, what the position holder will have to do, how the job must be done and under which conditions. It could be followed by a brief description of each main task, with more detail. A description of the kind of decisions that need to be made by the employee may follow, as well as the relevant lines of authority
Job specification
The personal qualifications an employee must possess in order to perform the duties and responsibilities depicted in the job description are contained in the job specification. Typically, job specifications detail the knowledge, skills and abilities
relevant to a job, including the education, experience, specialized training, personal traits of the person doing the job may
also include the physical demands the job places on an employee.
Phase 2
The purpose of human resource forecasting is to
balance human resource supply and human resource demand. Demand is affected by business objectives because these objectives determine the number of people needed to attain them. Supply is affected by the human resource programmes providing the human resources
Economic growth
This involves forecasting the expected growth (or shrinkage) of
the business in view of probable economic developments. For example, will there be a recession or growth in the near or distant future?
New developments in the business
These include planned physical extensions,
the establishment of new branches and technological changes (especially those that will affect staff, for computerized machinery might create a greater need for technically skilled employees)
The labor market
Important questions in this regard include: Are there
sufficient opportunities in the labor market, or is there a high level of unemployment?
Phase 3
The purpose of this plan is to provide concrete guidelines and steps that indicate how the business’s short-, medium- and long-term human resource requirements can be provided for
Such a human resource plan might, for example, make provision for an active recruiting campaign, emphasize the need for intensive training programmes or even make a strong recommendation to automate because of a possible shortage of human resources
Recruiting
To ensure that a sufficient number of, and competent, applicants apply for the various jobs in the business as and when required
There are two basic sources: recruitment from
inside the organization and recruitment from outside the organization
Recruitment from inside the organization
Means trying as far as possible to fill vacant positions with existing staff members, except for jobs on the lowest levels. In
practice, it means that people from outside are appointed only at the lowest level and that all more senior jobs in the hierarchy are filled by means of promotion of existing staff
Employment Equity Act (No. 55 of 1998) and the Labor Relations Act (No. 66 of 1995)
Several methods can be used for internal recruitment
Talent inventories, career development systems, acting and secondment arrangements, job shadowing and
supervisory recommendations.
Advantages of internal recruitment
*Career planning becomes possible, in that individual employees see a future for themselves in the business
*Assessment of applicants is easier because the business already has considerable information on the possible candidates’ abilities, work performance and potential.
*The cost of recruitment is low because advertising, travel and board-and-lodging expenses are largely eliminated
Disadvantages of internal recruitment
*The business tends to stagnate because staff members often think like their predecessors. There are therefore no new ideas, and this impacts innovation and creativity negatively.
*Staff appointed at lower levels do not necessarily have the potential to fill senior management posts
*There can be a lot of personal competition among colleagues, to the detriment of co-operation between them
Recruitment from outside the organization
Recruitment from outside means looking for suitable applicants outside the business when a post becomes vacant (external recruiting).
Advantages of external recruitment
An active effort is made to obtain the right person for the job – that is, someone with the most suitable qualifications and experience.
The opportunity is created for bringing in new ideas, schools of thought and approaches, which considerably increase the possibility for innovation in the
business.
Disadvantages of external recruitment
*Recruiting costs are considerably higher for items such as advertising and travelling expenses to enable applicants to come from elsewhere for the interview
*It is risky because the assessment of applicants can never be perfect. The possibility therefore exists that the successful applicant will not be successful in the job.
*The morale of existing personnel can be negatively influenced. Employees with high potential will not be prepared to stay indefinitely at the same level and might
consider resigning
Combinations of internal and external recruitment approaches
*Some businesses first look inside. They only recruit outside if they cannot find a suitable candidate.
*Some businesses advertise all jobs above a certain level, but encourage existing personnel to apply. In this way, management tries to find the most suitable candidate, regardless of whether the person comes from inside or outside
The recruiting procedure(from inside)
If a business recruits from inside, the HR manager must ensure that an efficient human
resource record system exists. It is called a known as a human resource information system (HRIS).This information from HRIS also includes the candidates’ readiness for the job, which may also be assessed through the
organization’s HRIS and talent data. When a job becomes vacant, the HR manager should be in a position to identify the most suitable candidates. Makes them aware of the developmental journey