Human Resource Management

What is HRM? o The management function concerned with getting training motivating and keeping competent employees o Source: Management: the essentials, robbins decenzo, coultler, woods Human Resource Management Process

Contemporary HRM issues o Work-life balance Organizations have become more attuned to their employees by offering familyfriendly benefits o Sexual harassment An unwanted activity of a sexual nature that affects an individuals employment. o Occupational health and safety Workplace death and injury still a major concern in Australia o Downsizing Removal of employees

Human Resource Management (HRM) plays a vital role in operating a small business. Human Resource Management is the management function that tackles key steps of managing employees within a company. It involves the employing, inducting, motivating and retaining of employees within the business, (Robbins, et.al, 2011, pg. 155). HRM process can be used within small businesses as it helps managers manage their employees from recruitment to termination. According to (Robbins, 2011) the first step of the HRM process allows small business managers to identify and select employees from a pool of applicants through a selection process, usually interviews. Once applicants are selected, managers have to orientate new employees to the work environment as well as train them with the relevant skills necessary to their position. Once the induction period is over for an employee he or she is required to further develop their skills to ensure they are competent and up to date with skills necessary to perform tasks within the business. Managers can then use performance appraisals to monitor and review performance levels of

employees. Using data gathered though performance reviews, managers can reward competent and high performing employees who are capable of sustaining higher performance over long terms. Managers can also motivate, warn or terminate employees who are falling short of their performance targets. However some businesses might want to downsize due to external factors such as a poor economic climate. This would mean mangers would start terminating employees who are not necessary to operations, and then review performance levels. By using this process mangers can achieve a business with competent, high performing employees which would create conditions for an effective organisation. In Australia there are many laws that affect human resource management within organisations. Their primary purpose is to ensure that employees are not unfairly treated, discriminated, and safe within their workplaces. They include the Equal Employment Opportunity Act 1987, Fair Work Act 2009 and the Work Health and Safety Act 2010. Small businesses should be aware of these legislations and educate their employees on them to ensure no form of discrimination and unfair treatment occurs within the workplace. A crucial legislation to small business would be Occupational Health and Safety Act as it is important for small businesses to adhere to guidelines set out by Work Safe Australia in order to protect the safety and security of their employees and the business. (Work Safe Australia, 2012)

What do Managers do and why does it matter?

o Definition of a Manager Someone who coordinates and oversees the work of others so that organisational goals can be accomplished Why do we need Managers? Without managers an organisation might lack direction in organisational goals Managers in Relation to Small Businesses Most managers in small businesses are front line managers who are directly involved in the production and creation of the businesss goods or services.

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