Human Resource Management

K. JAMES
UNIT 2 – MOB
KINGSTON COLLEGE
 Outline

 Discuss the role and importance of human resource management

 Outline the factors that may affect human resource management
 Assess the effectiveness of human resource management
 Explain the main functions of human resource management
 Outline the process of labour–management relations
 Give an overview of the laws affecting health and safety in the workplace
 The role and importance of human
resource management

 Human resource management is seen as the policies, practices and systems that influence
employees’ behaviour, attitudes and performances. The growth of human resource
management has been affected by:
 A change in the goals and objectives of businesses
 Increased representation of staff by trade unions
 The passing and implementation of government
 legislation
 Increased business competition for both goods and staff
 Increased financial resources.
 Evaluation of Human Resource Management

Benefits Drawbacks
 Effective human relations can help to prevent industrial action  Poor human relations can result in serious
 Easier for the business to anticipate any changes that may industrial disputes
occur in the workforce requirement. It can then make plans for
these changes  Any plan that is implemented must be
 Helps to motivate workers, thus increasing their productivity constantly monitored and adjusted as the
and reducing potential costs to the business forces of the environment change.
 Good human relations can prevent problems such as
absenteeism or a high rate of turnover
 Where consumers are given high regard and have a good
relationship with the firm, it can gain a competitive edge over
its competitors.
 The functions of human resource
management

 Workforce or manpower planning

Workforce planning is the process whereby a firm forecasts its future demand for labour and
develops a plan to meet such demand. In economics the demand for resources, including
labour, is termed ‘derived demand’. In essence, the concept states that the demand for the
factors of production, for example labour, is determined by the demand for the firm’s final
product.
 Factors that may influence workforce
planning

 Financial resources and stability of the firm – the firm has to take into consideration its
expected labour cost and its ability to cover such cost with the projected revenue. If
labour cost is too high, then the firm may need to consider labour cost-saving techniques
such as using machines.
 The objectives of the firm – if the firm’s long term objective is to expand, whether
locally or internationally, then it means that more workers will be needed. Where the
firm’s objective is to reduce costs by becoming capital intensive it means that there will
be the possibility of large-scale job cuts.
 Technological advancement and the firm’s ability to implement these changes – as
changes in technology occur there will be a reduction in the labour requirement
 Factors that may influence workforce
planning

 The success of training and development programmes – training and development is a

part of many larger firms. It is used to improve the skills of the workers. The firm’s ability
to train employees will have an impact on the amount and skill level of the people
required
 Changes in the population and its composition – the population can be affected by a
number of factors such as migration, war, increased birth rate, age or gender. As the
population changes, the firm has to change its workforce planning.
 Labour turnover and absenteeism rate – a firm with a very high turnover rate must
constantly make plans to replace workers when they leave.
 The functions of human resource
management

 Recruitment
Recruitment is the activities or practices that define the desired characteristics of applicants for specific jobs.
This is a very important function of the Human Resource Department, as recruiting the wrong people for the
job can lead to low labour productivity and loss of revenue for the firm.
The recruitment plan contains five stages
 Job analysis – this is the examination of what the job entails: that is, the responsibilities, skills, training
and tasks that are required for the job. The job analysis, when completed, is used as the standard against
which the applicant will be measured in the interview
 Job evaluation – here, an assessment of the worth of the job is done. The aim of this process is to assess
whether the reward being given for the job is fair when compared with those for other jobs in the
organisation. This will enable the firm to determine the appropriate salary and wage levels for the
particular job
 The functions of human resource
management

The recruitment plan contains five stages continue:

 Job description – having completed the job analysis, the firm can describe the position that
is available. It would give information about the purpose, duties, tasks and responsibilities of
the position. The job description can be used to measure performance of the person employed
 Person or job specification – in this stage, the profile of the person to fit the job is outlined. It
states the years of experience, minimum qualification and character of the person required for
the job.
 Job advertisement – the final stage of the recruitment plan is where the particular job is
communicated, whether internally or externally. The main aim of job advertisement is to
attract a cohort of suitable applicants for the job in question.
 Factors that may influence the recruitment
decision

 The amount of time that is available to fill the post. If the post has suddenly become vacant and it
demands a quick replacement, then management may not have enough time to go through external
recruitment
 The level of skills that are available internally is also another deciding factor. If there is no one in the
organisation with the requisite skill and experience needed for the post, then attention may have to be
turned to the external route
 The type and nature of the job may also be a deciding factor. The skill required for this particular job
may not be available anywhere in the firm and so must be sought from outside
 The composition of the external labour market. The firm may need to do an assessment of the external
labour market to decide whether or not the applicant that it is looking for will be available
 The firm may also need to consider the impact that an external recruitment may have on the level of
motivation of the existing staff.
 Evaluation of Internal Recruitment

Advantages of internal recruitment Disadvantages of internal recruitment

 Improves employees’ morale as this is seen  There may be an absence of new ideas
as a reward for hard work done  The firm incurs the cost of training if the skill of the
 May be cheaper, since large sums of money internal staff is not sufficient
would not have to be spent on advertisement  Narrow applicants base, as more people could be
recruited from outside
 Employees benefit from job enlargement and
rotation and they can get full use of their
 Promoting internal staff will create vacancies that
will still need to be filled
potential
 People who are not chosen may create some
 The entire process is less time consuming. animosity for others, which can result in conflict.
 Evaluation of External Recruitment

Disadvantages of external
Advantages of external recruitment recruitment
 Offers more choice, as there is a  Advertisement costs may be high
greater variety of applicants  May lead to morale issues within
 ‘New blood’ can be injected into the firm.
the organisation. This can result in
new ideas and different
approaches to the job.
 The functions of human resource
management

 Selection
Job advertisement usually creates another challenge for employers – which is choosing the most suitable candidate(s) for the job from
the myriad of applicants.
Stages of selection:
 Applications - Once a job is advertised, potential workers are required to submit an application letter accompanied by their
curriculum vitae or résumé.
 Short listing - The Human Resource Department has to sift through these applications to select a manageable list of applicants
who best fit the requirements for the job.
 Interview - This is where both the employer and the applicant have a chance to interact so that a two-way exchange of information
can take place.
 Testing - This is particularly important where the people being employed are expected to come to the job with prior information
and knowledge or the firm wants to ascertain what its training needs are.
 Employment - Once the most suitable applicant for the job is chosen, the final part of the selection process is to communicate with
them and give them a date for work to begin.
 The functions of human resource
management

 Compensation
Developing a fair and attractive remuneration package is also an important function of human
resource management.
The compensation package that is chosen will depend on the job analysis and job evaluation
that were carried out at an earlier stage.
The compensation package may also be influenced by the complexity of the job, working
conditions, educational requirements, years of experience and the amount of responsibility
that comes with the job.
 Types of compensation

 Wages and salaries – A ‘salary’ is defined as a fixed payment to an employee for work done. This payment
is often made on a monthly basis and made to white-collar workers. ‘Wages’ are often paid weekly,
fortnightly or monthly and can be based on an hourly rate and are usually paid to manual or unskilled
workers or labourers.
 Allowances – these are often paid in addition to the regular or basic salary. They are paid as part of the
salary package or to settle out-of-pocket expenses incurred in carrying out duties for the firm. This may
include travelling allowances, housing allowances or car upkeep and taxi and supper allowance
 Pension fund – this is a pool of contributions made by either the employer or the employee or both. This
fund will be used to pay workers after retirement in the form of pension.
 Health insurance – this is usually a part of the fringe benefits offered to employees. Health insurance is a
coverage of employees which includes the payment of medical expenses. This payment is made by the firm
entirely or by both employees and employer in an agreed percentage.
 Training and development

 Training is seen as a process of improving the knowledge and skills of employees.

The aims of training may vary across organisations but general purposes of training may
include:
 Preparation of employees for their job
 Helping existing employees to hone their skills and ability
 Fostering adaptation to new technology and innovation
 Improving efficiency through increased productivity
 For promotion.
 Types of training

 Induction – which is used to introduce new employees to the firm and its processes
 Basic skills training – used to develop the skills of lower level staff
 Refresher training – gives long-serving employees an opportunity to update their skills
and learn how to use new technologies
 Management trainee programme – used to prepare employees to take up management
positions. This is usually part of the succession plan of the firm.
 Methods of training

 On-the-job training may take several forms:

 Job rotation –this involves a lateral transfer of employees to enable them to work in and
learn about other job responsibilities in the organisation
 Apprenticeship – this is where new employees understudy more experienced employees
in an attempt to learn about the task being performed
 Coaching – trainees are guided by a coach who will give the necessary instructions to
carry out a job or use a machine or equipment
 Mentoring – a trainee is paired with an experienced worker who acts as an adviser for the
trainee while he/she carries out the job.
 Evaluation of On-the-Job Training

Advantages of on-the-job training Disadvantages of on-the-job training

 Usually cost effective  The quality of training might be compromised
since it is dependent on the person giving the
 Employees are working while learning
instruction
 Less productive time is lost than with external  Bad habits might be passed on
training.
 Production may be disrupted during training.
 Methods of training

 Off-the-job training – This is where employees are trained away from their immediate workplace.
 Examples of off-the job training:
 Lectures – these are verbal presentations on a specified area and are conducted by a person qualified
in the field
 Audio-visual – this can be done using videos or films to conduct training. Workers may watch a
presentation on how to perform a particular task or set of tasks
 Simulation – this is where a real-life situation is created and participants may be asked how they
would respond in such a situation. Simulation exercises may incorporate case studies, sensitivity
training and role play
 E-learning and distance learning – both of these can take place over the internet and so are
convenient for a number of employees. People are able to upgrade their skills at their own pace.
 Evaluation of Off-the-Job Training

Advantages of off-the-job training Disadvantages of off-the-job training

 A wider variety of skill and qualifications  More costly
available  Loss of productive time while workers are
 Trainers may have specialist training being trained externally
 Employees can be exposed to the latest  Firm may lose workers to other firms after
information available they are trained
 Usually more systematic and organised.  Firms may still have to do supplementary
training.
 Training versus development

 Training focuses on the present situation and the job that the
employee is currently doing. The aim of training is usually to enhance
specific skills and abilities of employees so that they can improve
their performance on the job.
 Conversely, development focuses on future jobs in the organisation.
The organisation may seek to develop its employees based on its
succession plans or on the fact that in the future new skills and
abilities will be required. Developing employees will help to prepare
them for the future when these skills and abilities are needed.
 Performance management

 Performance management is seen as a process used by managers to measure how well

employees are executing the task given to them. It is the process that is used to identify,
measure, manage and develop the performance of the employees within the firm.
Employees’ performance is also measured against the goals and objectives of the firm.
Performance management can help the firm to:
 Select people with a possibility of promotion or redeployment
 Assess the efficiency with which the previous functions are being carried out
 Determine a pay structure for employees
 Identify possible training needs.
 Performance appraisal

 Performance appraisal is defined as the on-going process of measuring and evaluating

employees’ performance. Performance appraisal characteristics:
 Fairness
 Participative - Management should ensure that any performance appraisal that is to be
done receives the full support of the employees. Employees should be allowed to
participate in the appraisal process.
 Feedback - If performance appraisal is to fulfil its role of developing the employees
effectively then they must be informed of their performance measure.
 Periodic - the aim of performance appraisal is to improve the firm and as such it should be
done periodically and not haphazardly.
 Strategies to measure employee performance

 Labour productivity - This measures the ratio of output to input. Put another way, it
measures the amount of a product or service that is produced by one hour of labour input.
This measure indicates the efficiency with which labour is used in production.
 Strategies to measure employee performance

 Labour turnover - This measures the number of workers who leave an organisation in a
given time period compared with the average number employed within that same time
period.
 Evaluate Labour Turnover

Factors of high labour turnover Impact of high labour turnover

 Low salary package or fringe benefits  Production time loss during recruiting and shortage
of workers
 Poor management style – for example, autocratic
 High training costs, since this has to be done
 Poor working conditions regularly
 Workers may be getting more attractive offers  High turnover rate could affect the morale of the
elsewhere. workers who stayed and this could affect their
performance
 It may be disruptive and unsettling, especially where
people work in groups. The group would have to
keep building synergy and camaraderie.
 Strategies to measure employee performance

 Absenteeism rate -This is the amount of the total workforce that is absent from work
during a given time period when they should have been there.
 Labour–management relations

 Once employees have to resort to industrial action it is indicative of a breakdown

in labour–management relations. In a number of these situations, industrial action
is the end result of poor labour–management relations.
 Factors that can cause a breakdown labour–management relations:
 Unfair dismissal of a worker
 Poor working conditions
 Low remuneration
 Unfair practices
 Lack of job security
Ways in which employees and management can resolve their disputes

 Collective bargaining - is a situation where trade unions and employers meet to negotiate
better terms and conditions of employment such as salary, wages and working conditions.
 A trade union is an association of workers who have joined together to accomplish a
common goal of improvement in the terms and conditions of employment.
 In collective bargaining, the trade union representative will outline the grievances or
positions of the employees and try to come to an amicable solution to the problem. It is
usually the responsibility of the Human Resource Department to bargain on behalf of the
firm.
 Evaluation of collective bargaining

Benefits of collective bargaining for Benefits of collective bargaining for

employees the employer
 Workers have greater bargaining power than if the process is done  It is easier and less time consuming for management to
individually bargain with the union instead of each individual
 Discourages management from making a unilateral decision that  Collective bargaining can help to allay the possibility of
affects employees industrial action
 Trade union representatives are more knowledgeable of issues that are  Since the union will explain the agreement reached to its
discussed with management and can explain any decision made to the members, employers may not have to deal with
employees in simple terms misunderstanding of terms.
 Can be flexible and provides a fair settlement for grievances
 While some people may not agree, collective bargaining provides all
employees with the same benefits from any agreement that is reached,
whether they are a part of the bargaining union or not.
Ways in which employees and management can resolve their disputes

 Dispute settlements –
 A grievance procedure is a process through which a dispute can be settled. This can be a
short or lengthy process, depending on how soon the dispute is ratified. There are three
main stages of grievance procedure. These are:
 Conciliation
 Mediation and
 Arbitration.
The idea is that if the first stage fails then the parties would move to the next stage and if no
agreement is reached then the third stage will be used.
 Stages of grievance procedure

Conciliation Mediation Arbitration

At this stage a third party will be At this stage a third party This is where a third party, termed the
asked to sit in on the discussion will be asked to sit in on arbitrator, is called in to come
between both parties. The conciliator the discussion but, unlike up with a solution to the dispute that has
will not offer a solution to the in conciliation, the been going on. Unlike the previous two
dispute but instead will encourage mediator will give stages, the arbitrator will give a solution to
both parties to come to an suggestions on how to both parties. This solution is legally
agreement. resolve the dispute. The binding on both parties.
parties will then
In most Caribbean countries the deliberate on the In some Caribbean countries, there are
conciliator could be a representative suggestions in an attempt specified courts or judicial boards that will
from the Labour Ministry. to reach an agreement. deal with these
disputes. These are referred to as Industrial
Dispute Courts or Labour Courts.
 Trends in industrial action
Strikes Work to rule ‘Go slow’

This is usually the last form of action to be In this form of industrial This is a deliberate effort
taken. In strike action, workers withdraw action, employees work by employees to slow
their services from work. rigidly to every rule in the down the
Strikes may be classified as: organisation. Stringently pace at which they work.
• Official strike – this is called for by the working to every The aim of this form of
union representing the workers. It is rule can slow down the work industrial
usually called when the union has process considerably. With a action is to frustrate
explored all other avenues and legal work to rule, employees do management in an attempt
requirements not perform any role that is to get a settlement of the
outside of the stipulated job dispute.
• Unofficial strike – this takes place description.
without the backing of the union. These
strikes are usually done on a local basis
and for a specific reason.
 Trends in industrial action
‘Sit in’ Picketing Overtime ban Lock-out

This is a popular form of This is used in For this form of industrial The
action to take when the firm conjunction with a action, the workers would employer can stage a
is strike. It is where refuse to work overtime hours lock-out – that is, where
threatening employees with workers use placards and instead just complete their employees are
a close-down of operations. to show signs that regular hours of work. This prevented from entering
It is they are disgruntled may cause a slowdown of the property and hence
where employees attend with management and production, especially in peak receiving
work but refuse to leave the to win over the seasons. The inconvenience wages for that period of
work support and sympathy caused by this action and/or time.
site when work is done. of the loss of revenue may force
passing members of management to consider the
the public. concerns of the staff.
 Laws affecting health and safety in the
workplace

 In 1974 the United Kingdom passed the Health and Safety at Work Act. The issue of
health and safety has been given even more attention internationally due to the fact that
the International Labour Organisation (ILO), an arm of the United Nations, has started
celebrating April 28 as World Day of Safety and Health at Work.
 Countries such as Trinidad and Tobago, Guyana and the Bahamas have based their health
and safety laws on the CARICOM Model Law on Occupational Safety and Health and the
Working Environment. In 2008 the Ministry of Labour in Jamaica also communicated its
intention to introduce an Occupational Safety and Health Act.
 General responsibilities and rules covered under a Health and Safety Act for the
workplace

 The use of dangerous machinery

 Wearing of protective clothing
 Protection against dust and dangerous fumes
 Having functional fire and emergency exits, along with conducting emergency drills
 Cleanliness and sanitary conveniences
 Proper disposal of waste
 Minimising noise and vibration
 Proper ventilation.
 Aspects of health and safety in the workplace

 Education of employees on safety regulations

One of the requirements of the 1974 Act in the UK was that employees were to be trained on
health and safety. Employees must be trained about the dynamics of health and safety and
what to do when different situations arise. The HR Manager should organise such training for
existing and new employees. All safety requirements should be communicated. Employees
and employers must also be trained about what to do when there is an emergency or a natural
disaster.
 Safety facilities and complaints

Importance of the provision of safety Procedures for dealing with safety

facilities complaints
 The firm can mitigate the possibility of lawsuits and  The appointment of a safety monitor or committee that will
additional costs incurred from accidents spearhead the health and safety policy on the ground
 Protection of workers and employers from bodily harm or  Any safety complaints would first be lodged with the safety
illness monitor or committee
 Minimises the possibility of high turnover rate since the  Upon receipt of the complaint, the necessary checks should be
working environment would be a safe one done to substantiate the complaint. This may be done by the
committee itself or by a trained professional from outside the
 Good working environment can improve productivity and,
firm
by extension, production
 Address the complaint in the shortest possible time and take
 It is a requirement of law that firms implement a health and
corrective measures to ensure that there is no recurrence.
safety policy.