AOS2 Unit 3 busman

• Human Resource Management


  The effective management of the formal relationship between the employer and employees.
• How businesses manage employees

  • Motivate employees
  • Train employees
  • Manage the performance of employees
  • Manage termination
• Employment Cycle


  The relationship between a business and its employees throughout the stages of each employee's time with the business, from the initial decision to hire a new employee until the time that employee eventually leaves the business
• Establishment phase


  1. Planning of staffing needs

  2. Recruitment and selection of staff

  3. Determination of employment arrangements and remuneration
• Job description


  The duties, tasks and responsibilities associated with the job
• Job specification


  The qualifications, skills and experience that an employee would need to have to carry out the job
• Recruitment


  Attracting suitable applicants to the job identified
• Recruitment methods


  • Advertisements on employment websites
  • Employment agencies
  • Word of mouth
• External employment


  Bringing new employee in from outside the business
• Internal employment


  Transferring existing employee into new position / promoting existing employee to position with more responsibility
• Selection


  1. Requiring applicants to provide detailed information on an application form

  2. Carrying out interviews

  3. Various forms of testing, including aptitude testing and psychological testing

  4. Examining references and other background checks
• Employment arrangements


  • Ongoing permanent employment
  • Casual employment
  • Fixed-term employment for a designated period of time
• Remuneration


  Wages or salary package provided to the employee
• Induction


  1. Ensuring that the new employee is familiar with the business history, structures, objectives, culture, policies and practices

  2. Ensuring that the new employee has full knowledge of the tasks and responsibilities associated with their new job
• Training


  Learning new skills and knowledge, and adapting to changes in business processes, duties and tasks
• Performance management


  Monitoring the performance of all employees, and finding ways of improving that performance over time
• Termination


  • Voluntary leave employment (quit / resign)
  • Involuntary leave employment (fired or made redundant)
  • Redundancy (job no longer exists)
  • Voluntary redundancy (employees asked to leave, offered a payout)
  • Involuntary redundancy (employees told to leave, offered a payout)
• Human Resource Managers (HR)

  Responsible for maintaining the relationship between employees and effectively managing employees in a business
• Business objectives


  Determine objectives and strategies adopted by human resources
• Motivation


  What drives a person to apply effort over a sustainable period of time, and what makes an employee want to work
• Maslow's Hierarchy of Needs

  • All people need to have needs to be satisfied, and will work toward satisfying those needs
  • Needs hierarchy: physiological, safety, social, esteem, self-actualisation
• Goal Setting Theory


  • Clear goals and appropriate feedback will motivate employees
  • Goals should be clear, specific, challenging, and not overwhelming
  • Five goal-setting principles: clarity, challenge, commitment, feedback, task complexity
• Four Drive Theory


  • Four basic human drives that shape how humans think and behave: drive to acquire, drive to bond, drive to learn, drive to defend
• Extrinsic rewards


  Tangible or physical reward given to someone for achieving something
• Intrinsic rewards


  Intangible reward that comes from within a person achieving success or performing well
• Motivation strategies


  • Performance-related pay
  • Career advancement
  • Investment in training
  • Support strategies
  • Sanction strategies
• Performance-related pay


  A salary or wage system based on how well the employee works
• Performance-related pay methods


  • Pay increase
  • Bonus
  • Commission
  • Share plan
  • Profit sharing
  • Gainsharing
• Career advancement


  The prospect and opportunity of developing your career through being promoted or taking on new roles
• Investment in training


  When a business pays for training programs to develop employees' skills and knowledge to make them more efficient and effective in their role
• Support strategy


  The assistance or services (such as counselling and mentoring) provided by the business to help employees cope with difficulties that may impede their work performance
• Sanction strategy


  A penalty or form of discipline imposed on an individual, ranging from a verbal warning to termination
• Training


  The process of teaching staff how to do their job more efficiently and effectively by boosting their knowledge and skills
• Sanction strategies


  Strategies used by businesses to motivate employees, such as through emotion or a reduction in salary. In serious cases, an employee may be terminated from the business.
• Disadvantages of sanction strategies

  • Does not support employee to make mistakes, learn, and develop
  • Very short term immediate focus
  • Builds long term resentment or employees may leave the business
  • Builds negative fearful culture
• Benefits of training for the business

  • Higher productivity through better job performance and more efficient use of human resources
  • Goals and objectives more effectively met
  • Reduced costs due to less labour turnover and absenteeism, and fewer errors and accidents
  • A more capable, 'mobile' workforce
• Benefits of training for employees

  • Opportunity for promotion and self-improvement
  • Improved job satisfaction through better job performance
  • A challenge — the chance to learn new things
  • Adaptability — greater ability to adapt to and cope with changes
• On the job training


  Occurs when employees learn a set of skills to perform tasks while within the workplace. The training occurs in the working environment and uses the equipment, machinery & documents in the workplace.
• Advantages of on the job training

  • Cost-effective
  • Productive as employees are working while training
  • Use of actual equipment
  • Employees are in familiar environment
• Disadvantages of on the job training

  • Quality of trainer may vary
  • Bad habits may be passed to new staff
  • Environment may be distracting