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Introduction to Human Resource Management in Australia
- 1. 1-1 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Chapter 1 Human resource management in Australia
- 2. 1-2 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Introduction to human resource management Objectives • Understand the conceptual foundations of human resource management • Discuss the activities and roles of a company’s human resource function • Identify the characteristics of the workforce and the human resource environment • Discuss the competitive challenges influencing Australian companies • Provide a brief description of human resource management practices
- 3. 1-3 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Human resource management (HRM) • Refers to the policies, practices and systems that influence employees’ behaviour, attitudes and performance. • Many companies refer to HRM as ‘people practices’.
- 4. 1-4 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Figure 1.1 Strategic HRM Strategic human resource management Job analysis and design Human resource information systems Performance management Learning, development and career management Compensation and rewards Recruitment and selection Managing diversity and work–life balance Company performance Human resource planning Industrial relations Measuring and evaluating HRM Occupational health and safety Strategic management Managing legal and ethical issues Managing employee retention and turnover
- 5. 1-5 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright The development of theoretical bases for HRM Theoretical perspectives of HRM include: • Behavioural view • Resource-based view • Political-influence view
- 6. 1-6 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Source: M. Beer, B. Spector, P.R. Lawrence, D.Q. Mills & R.E. Walton, 1984, Managing human assets, Free Press, New York, p. 16. Stakeholder interests Shareholders Management Employee groups Government Community Unions Situational factors Workforce characteristics Business strategy and conditions Management philosophy Labour market Unions Task technology Laws and societal values HRM policy choices Employee influence Human resource flow Reward systems Work systems HR outcomes Commitment Competence Congruence Cost effectiveness Long-term consequences Individual wellbeing Organisational effectiveness Societal wellbeing Figure 1.2 The Harvard analytical framework for HRM
- 7. 1-7 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.1 Role of senior HR professionals in strategic decision-making processes (n = 472) % HR provides operational support, develops some internal programs to meet specific needs, but is generally viewed as a processor of paperwork and employment activities. 8 HR reacts to strategic directions and requests from top management 7 HR provides input into and reacts to strategic directions set by top management, but only on personnel-related matters 36 HR is actively involved in all types of strategic decisions, whether or not they directly affect personnel matters 49 Source: C. Sheehan, P. Holland & H. De Cieri, 2006, ‘Current developments in HRM in Australian organisations’, Asia Pacific Journal of Human Resources 44 (2), pp. 132–52
- 8. 1-8 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.2 Typical responsibilities of HR professionals • Strategic management • Health and safety • Employee and community relations • Analysis and design of work • Human resource planning • Human resource information systems • Recruitment and selection • Managing diversity and work–life balance • Learning and development • Performance management • Compensation and reward management • Employee services • International HR • Measurement and evaluation Source: Adapted from SHRM–BNA Survey No. 60, 1995, Human Resources Activities, Budgets, and Staffs: 1994–95, Bulletin to Management, Bureau of National Affairs Policy and Practice Series, 29 June, Bureau of National Affairs, Washington, DC.)
- 9. 1-9 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright From Table 1.3: Current HRM Policy Development Areas in Australia (n = 1372) % Recruitment 76 Performance appraisal (managers) 75 Performance appraisal (non-managers) 69 Selection 67 Occupational health and safety (OHS) 57 Work–life balance 55 Training 54 Family friendly policies 49 Values/ethics 48 Grievance procedures 47 Source: C. Sheehan P. Holland & H. De Cieri, 2006, ‘Current developments in HRM in Australian organizations’, Asia Pacific Journal of Human Resources 44 (2), pp. 132–52
- 10. 1-10 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Roles of HR professionals Source: D. Ulrich, 1997, Human Resource Champions: The Next Agenda for Adding Value and Delivering Results, Harvard Business School Press, Boston. Strategic partner Administrative expert Employee champion Change agent Strategic focus Operational focus Systems People
- 11. 1-11 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.5 Senior committee representation of HR HR representation on the board of directors 1995 n = 837 % 2005 n = 1146 % No representation 55 42 HR Representative 17 25 Representative with HR as part of their responsibility 28 33 HR representative on the senior management group at the enterprise level n = 821 % n = 1372 % Yes 56 68 No 44 32 Source: C. Sheehan P. Holland & H. De Cieri, 2006, ‘Current developments in HRM in Australian organizations’, Asia Pacific Journal of Human Resources 44 (2), pp. 132–52.
- 12. 1-12 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Analytical fact-based decision making Leadership Conceptual ideas Visioning Compliance Regulation Administration Control Interpersonal team work Evaluation Benefits Audit Data management Industrial relations Legal Compensation Strategic management Organisational development Change management Diversity Counselling Employee development Source: A. Freeman, 1990. The Changing Human Resource Function, The Conference Board, New York, p. 11. Figure 1.3 HR roles and competencies
- 13. 1-13 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright The composition of the Australian workforce • Age • Gender • Ethnic diversity • Employee values • Structure of the economy • Skill deficiencies • Changes in the employment contract • Changes in the place of work • Legislation • Ethical considerations
- 14. 1-14 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.6 How managing diversity can provide competitive advantage 1. Cost argument 2. Resource-acquisition argument 3. Marketing argument 4. Creativity argument 5. Problem-solving argument 6. System-flexibility argument Source: T.H. Cox & S. Blake, 1991, ‘Managing cultural diversity: implications for organizational competitiveness’, Academy of Management Executive, 5, p. 47. Reproduced with permission of Academy of Management.
- 15. 1-15 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Figure 1.4 Competitive challenges influencing human resource management The challenge of globalisation The challenge of HR innovation The challenge of sustainability The challenge of attracting and retaining people Business competitiveness
- 16. 1-16 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright The challenge of globalisation for HRM • Development of global markets • Managing global workforce mobility • Managing international assignments
- 17. 1-17 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright The challenge of HR innovation • Knowledge management • Knowledge workers • High-performance work systems (HPWS) • Change in employees’ work roles and skill requirements • The use of teams to perform work • Changes in the nature of managerial work • Changes in company structure • Increased availability of HR information • HRM practices in HPWS
- 18. 1-18 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.7 How HR practices support high-performance work systems • Teams are used to perform work. • Employees participate in the selection process. • Employees receive formal performance feedback and they are actively involved in the performance- improvement process. • Ongoing training is emphasised and rewarded. • Employees’ rewards and compensation relate to the company’s financial performance. Source: Compiled from Judith A. Neal and Cheryl L. Tromley, 1995, ‘From incremental change to retrofit: creating high performance work systems’, Academy of Management Executive, 9, pp. 42–54; Mark A. Huselid, 1995, ‘The impact of human resource management practises on turnover, productivity, and corporate financial performance’, Academy of Management Journal, 38, pp. 635–72. (cont.)
- 19. 1-19 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.7 How HR practices support high-performance work systems (cont.) • Equipment and work processes are structured to encourage maximum flexibility and interaction among employees. • Employees participate in planning changes in equipment, layout and work methods. • Work design allows employees to use a variety of skills. • Employees understand how their jobs contribute to the finished product or service. Source: Compiled from Judith A. Neal and Cheryl L. Tromley, 1995, ‘From incremental change to retrofit: creating high performance work systems’, Academy of Management Executive, 9, pp. 42–54; Mark A. Huselid, 1995, ‘The impact of human resource management practises on turnover, productivity, and corporate financial performance’, Academy of Management Journal, 38, pp. 635–72.
- 20. 1-20 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright The challenge of sustainability • Meeting customer needs for service and quality • Balanced scorecard
- 21. 1-21 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Table 1.8 Principles of total quality management 1. Customer focus 2. Focus on process as well as results 3. Prevention versus inspection 4. Use of employees’ expertise 5. Fact-based decision making 6. Feedback Source: Adapted from Joseph R. Jablonski, 1991, Implementing Total Quality Management: An Overview, Pfeiffer and Company, San Diego.
- 22. 1-22 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Perspective Questions answered Examples of critical indicators Customer Internal Innovation and learning Financial How do customers see us? What must we excel at? Can we continue to improve and create value? How do we look to shareholders? Time, quality, performance, service, cost Processes that influence customer satisfaction, availability of information on service and/or manufacturing processes Improve operating efficiency, launch new products, continuously improve, empower workforce Profitability, growth, shareholder value Table 1.9 The balanced scorecard
- 23. 1-23 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright The challenge of attracting and retaining people • Employer of choice • Employee engagement
- 24. 1-24 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Challenge of globalisation HR Practices • Continuous learning environment is created • Discipline system is progressive • Customer satisfaction and quality are evaluated in the performance management system • Skills and values of a diverse workforce are valued and used • HRM strategy is matched to business strategy • Pay systems reward skills and accomplishments • Selection system is job-related and legal • Work attitudes of employees are monitored Challenge of sustainability Figure 1.5 Examples of how HR practices can help companies meet the competitive challenges Challenge of HR innovation Challenge of attracting and retaining people
- 25. 1-25 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Figure 1.6 Major dimensions of HRM practices contributing to company competitiveness Dimensions of HRM Practices Managing the human resource environment Building human resource systems Developing human resources Rewarding human resources Competitiveness
- 26. 1-26 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Overview of HRM topics Part 1: Managing the human resource environment Part 2: Building human resource management systems Part 3: Developing people Part 4: Rewarding people Part 5: Contemporary issues for human resource management
- 27. 1-27 Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Human Resource Management in Australia 3e by De Cieri, Kramar, Noe, Hollenbeck, Gerhart & Wright Overview of HRM topics Human resource management in Australia Strategic human resource management Legal context for human resource management Occupational health and safety Industrial relations Analysis and design of work HR planning and HR information systems Recruitment and selection Managing diversity and work–life balance Performance management Learning and development Employee development and career management Managing compensation Performance-related pay Ethics and human resource management International human resource management Managing employee retention and turnover Evaluating and improving the human resource function Part 1: Part 2: Part 3: Part 4: Part 5: