Chapter 11: HR

• HR planning


  1. Strategic analysis

  2. Internal analysis

  3. Gap analysis

  4. Plan to close the gap

  5. Review
• Strategic analysis


  Considers the businesses overall strategic plan and business environment to produce an analysis of: Environment, companies manpower, use of employees, objectives
• Internal analysis


  A staff audit to workout the number of employees and their skills. Will consider things like: Staff turnover, absenteeism levels, overtime worked, staff potential analysis
• Gap analysis


  Find the number of insufficient staff (or surplus of staff)
• Plan to close the gap

  1. If there is a shortage of staff: Internal promotions, external recruitment, reducing labour turnover, overtime, or training of staff

  2. If there is a surplus of staff: Reduce number of staff, restrict recruitment, part time work for full time people, redundancies
• Review


  Measure the effectiveness of companies HR in achieving the strategic objectives
• Recruitment process


  1. Perform job analysis

  2. Job design stage

  3. Develop job description

  4. Advertising job vacancies

  5. Initial screening
• Job analysis


  Analyse what work needs to be done, e.g. purpose of the job; what is the job holder accountable for; how will they be judges; what are the promotion and career paths
• Job design stage


  Identify the competencies of the worker
• Job description


  Sets out the purpose of the job. Includes: Job title, Location of the job within organisation, Description of purpose and role, Main tasks, Skills required, Working hours
• Initial screening


  Review CVs
• Selection


  Procedure to select the correct candidates
• Application forms


  Help sift through applicants by obtaining relevant information
• Types of interviews


  • Individual interview
  • Problem solving interview
  • Tandem interview
  • Panel interview
  • Succession interview
  • Group interview
• Panel interview


  A group of people being interviewed
• Group interview


  Candidates have to solve problems together
• Tandem interview


  2 interviews per candidate
• Horns & Halo


  When interviewer sees one thing which clouds their judgment for rest of interview
• Types of tests


  • Psychological and personality
  • Cognitive
  • Proficiency
  • Psychometrics
  • Medical test
• Job offers


  Have to be in writing and contain details such as: Job title, pay, place of work, contractual hours, notice period
• HR development strategies


  1. Identify the training gap and define the companies training needs

  2. Define the learning required

  3. Define training required

  4. Plan training programmes

  5. Implement the training

  6. Evaluate the training
• Methods of development and training

  • Formal training
  • On the job training
  • Evaluating training
• Formal training


  Internal courses ran by company, Day release courses, Distance learning, Revision courses
• On the job training


  Learn as you go, through the form of shadowing
• Kirkpatrick's 4 things to evaluate training

  • Reaction to training
  • What have they learnt
  • Behaviour
  • Results
• Benefits of training to the organisation

  • Lower costs and higher productivity
  • Fewer accidents
  • Less need for supervision
  • Flexibility
  • Change management
  • Corporate culture
  • Motivation
• Benefits of training to the individual

  • Enhance skills
  • Psychological benefits
  • Social benefit
  • The job
• Performance management


  1. Target setting

  2. Monitor performance

  3. Review performance

  4. Action plan
• Appraisals


  Review and assessment of an employee's performance, potential and training needs
• Appraisal techniques


  • Overall assessment
  • Guided assessment
  • Grading
  • Behavioural incident methods
  • Objectives
  • Common appraisal standards
• 180 degrees appraisal


  Manager obtains feedback from the individuals colleagues, not supervisor
• 360 degrees appraisal


  Take feedback from everywhere
• Reasons why appraisals may have barriers

  • Appraisals can be seen as confrontational
  • Appraisals are seen as judgemental
  • Appraisals are seen as bureaucracy
• Motivation theories


  • Taylor: Maximising prosperity
  • Mayo: Human relations
  • Maslow: Hierarchy of needs
  • Herzberg: two factor content theory
  • McGregor: Theory X and Y
  • Vroom: Expectancy theory
  • Goal setting theory
  • Mullins: Classification of motivation
  • Psychological contracts
• Taylor: Maximising prosperity


  4 principles: Science should be used to determine pay, Science should be used in recruitment and selection, Staff should be encouraged to reach their potential, Cooperation between management and staff
• Mayo: Human relations


  People are motivated by social and belonging needs
• Maslow's hierarchy of needs

  • Psychological needs
  • Safety needs
  • Love needs
  • Esteem needs
  • Self-actualisation
• Herzberg: two-factor content theory

  Hygiene factors (prevent dissatisfaction but not give satisfaction) and Motivator factors (give job satisfaction)
• Examples of motivator factors


  • Advancement
  • Recognition
  • Challenge
  • Growth in role
• Examples of hygiene factors


  • Salary
  • Working conditions
  • Job security
  • Quality of supervision