Managing Human Resources: © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

Managing Human Resources
Chapter 7
Siobhn D. Tiernan, Michael J. Morley and Edel Foley 2006
Managing Human Resources

Third management function after planning and organising Managing human resources is one of the key elements in the co-ordination and management of any organisation An organisations workforce represents one of its most valuable resources
Historical Development of the HR Function

Early 1900s Mid 1900s -
Welfarists, Taylorists
Bureaucrats, Consensus negotiators Centralised pay bargaining The emergence of human resource management
1970s 1980s-
Activity Areas in Human Resource Management

1. 2. 3. 4. 5. 6. Human resource planning Recruitment Selection Pay and benefits Performance appraisal Training and development
1. Human Resource Planning

It is important that sufficient numbers of the appropriate calibre of people are available to the organisation Employees must be planned for, much like any other resource HR planning is a process which affects every aspect of human resource management
The Human Resource Planning Process
Stages in Human Resource Planning Process

1. Demand analysis- estimation of quality and quantity of HR needed to meet objectives of the organisation Its based on an understanding of the organisations strategy and its implications for the workforce Techniques used include - managerial estimates, statistics and work study

2. Supply Analysis - estimation of quality and quantity of available labour Internal and external labour market Planned and unplanned losses need to be considered External factors such as nature of competition for labour, education, population trends & government policies
Supply analysis: the areas to be considered

3. Estimating Deficits \ Surpluses comparison of the results will show a match, deficit or surplus 4. Prepare Action Plan - to cover recruitment, selection, training and development and promotions
2. Recruitment
Recruitment is concerned with attracting a group of potential candidates to apply for a vacancy that the organisation has available The key choice in recruitment is whether to recruit internally or externally Two key stages identified in the recruitment process: (1) background stage and (2) actual recruitment stage
2. Recruitment
Background stage - conducting a job analysis which comprises of a job description and a person specification Job description is a statement of the main tasks and responsibilities Person specification details the skills, qualifications, knowledge and experience the individual should have
2. Recruitment
Actual recruitment stage task of attracting a pool of potential candidates Internal - transfers, promotions or demotions External - schools, ITs, Universities, agencies, FAS colleges CV and standard application form
Costs associated with different sources of recruitment
Usual method of filling vacancies (N = 261)
3. Selection
The selection process effectively begins when application forms have been received Selection Tools 1. Interviews (one to one, panel and group) All have 3 objectives
to gain information about candidate to see fit with job to ensure applicant has information about job to leave applicant with impression of fair treatment
Common interviewing errors
Selection Tests
1. Intelligence- mental capacity, not a good indicator of job performance 2. Aptitude Tests - predict areas of special aptitude, not a good indicator of job performance 3. Proficiency Tests - tests of achievement 4. Personality Tests 5. Reference checking
Selection methods most commonly used in Ireland
4. Pay and Benefits

An organisations reward system is a powerful indicator of its philosophy and approach to workforce management Employee rewards are usually classified under two broad headings:
1. Intrinsic rewards - spring from the job itself and include autonomy, responsibility an challenge 2. Extrinsic rewards - more tangible in nature and include pay, job security and working conditions
Key Factors Influencing Satisfaction with Rewards (Lawlor 1977)

1. Depends on the amount received versus what individual feels s\he deserves 2. Depends on comparisons with others 3. Employees satisfaction with intrinsic and extrinsic rewards effects job satisfaction 4. People differ in the rewards they desire and value 5. Many extrinsic rewards satisfy because they lead to other rewards
Payment Systems
1. Flat rate only - fixed hourly, weekly, monthly rate 2. Flat rate + individual, group or company payment by results 3. Merit Rating - employees get bonus payments based on a systematic assessment of their performance
Payment Systems
4. Profit \ Gain Sharing - employees get a bonus related to improved company performance for example company shares 5. Piecework - employees are paid for the work that they have completed
Payment systems in Ireland
5. Performance Appraisal
A key function of human resource management A periodic assessment of employees' performance
Review past performance Examine future potential
Objectives of performance appraisal in the Republic of Ireland Not in lecture slides
Appraisal techniques
6. Training and Development

There is a clear distinction between the concepts Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning experiences Development is a broader concept referring to general growth of an individuals skilled and abilities through conscious and unconscious learning
Historical overview of training in Ireland Not in slides
Training and Development Process

1. 2. 3. 4. Formulating a training plan Identifying training needs Planning and conducting the training Evaluating training and development activities
Training and development methods used in Irish organisations Not in slides
The Employee Relations ContextTrade Unions

A trade union can be defined as a continuous association of wage earners with the objective of improving or maintaining conditions of employment. There are three main types of trade unions in Ireland: craft unions, general unions and white-collar unions
Trade union objectives in Ireland
Trade union structure

Managing Human Resources: © Siobhán D. Tiernan, Michael J. Morley and Edel Foley 2006

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Managing Human Resources

Siobhn D. Tiernan, Michael J. Morley and Edel Foley 2006