HRM is a organisational function that will focus on the management of Auto-Elec employees and also the recruitment and selection process.
It will increase employee performance to the highest level in respect to their role within Auto-Elec, whilst also providing direction for all employees by concentrating on the practices and policies that directly affect their well being and morale.
And last but not least…..it will assist Auto-Elec in improving the balance between its goals, objectives, and the needs of its employees, and by doing this it will provide an edge over Auto-Elec’s competition in terms of attracting and retaining the best possible talent.
(Heathfield S, 2017)
BEST PRACTICE
Firstly best practice would require Auto-Elec to assume this set of 7 best practices, irrespective of circumstances or the business environment.
The advantages are…
There is a universal agreement on basic HRM best practices.
It’s a cost effective way for Auto-Elec to implement HRM methods.
Profiles pre set rules for selection, training and appraisal methods. (Pfeffer, 1998)
However it does have its disadvantages……
May not ‘fit’ Auto-Elec’s organisational structure or help achieve its objectives.
It would fail to account for Auto-Elec’s specific requirements, and may not be appropriate in most circumstances at Auto-Elec.
(Kimble, 2017)
BEST FIT
Secondly the best fit approach is based on the theory that there is no universal instruction for HRM, and that policies/practices should “fit” and evolve with Auto-Elec’s circumstances and align will its strategy.
Its advantages are………
The approach would give Auto-Elec a better strategic advantage, and it would be easier for Auto-Elec to make changes progressively. (Kimble, 2017)
Its disadvantages are……..
As Auto-Elec’s strategy changes, so to must its HR policies and practices, and it could be difficult to capture all of the variation inside Auto-Elec’s structure.
(Kimble, 2017)
In addition to “Best practice” and “best fit” there are two contrasting theories can be proposed for Auto-Elec’s HRM………..”Hard” and “Soft” models…..
The Michigan model (Hard HRM) outlines that Auto-Elec’s strategy would take central stage, and employees would be used like any other resource, and fully utilised with them in order to achieve goals and objectives. It will also assume that HRM policies will respond to both the external and internal environment. (Fombrun et al 1984)
The model also illustrates that HRM has 4 generic stages relating to employee performance and suggests a human resource cycle that identifies the need for employees to be managed in order achieve objectives. The focus of Auto-Elec’s HRM using this model would be to identify workforce requirements and recruit & manage accordingly. (Fombrun et al 1984)
The ‘Harvard Model (Soft HRM), would acknowledge the presence of numerous stakeholders within Auto-Elec, and emphasise more the fact that employees, just like any other shareholder are equally as important in influencing results. Essentially…….HRM would concentrate on the needs of employees – their roles, rewards and motivation (Beer et al 1984)
The model proposes the four c’s to evaluate the effectiveness of HRM practices………..
- Competence – How competent are Auto-Elec employees in their work? Do they require any additional training? And to what extent do current HRM policies attract, retain and develop employees with the skills and knowledge that Auto-Elec requires to meet its objectives?
- Commitment – How committed are employees to their work at Auto-Elec?
- Congruence – Is there trust and common purpose between both managers and employees at Auto-Elec?
- Cost effectiveness – Are policies cost-effective at Auto-Elec? in terms of wages, benefits, turnover, absenteeism ect. (Beer et al 1984)
Now moving on to the responsibilities that HRM will assume at Auto-Elec………………….HRM will lay out and formalise what new employee’s can expect from Auto-Elec and vice versa, also providing an overview of Auto-Elec’s objectives and how the new employee will fit in and assist in accomplishing them. Afterwards the new employees should feel relaxed and comfortable, and have a solid understanding of their day to day duties.
(Bhattacharyya, 2017).
Monitoring
Monitoring and maintaining working conditions at Auto-Elec will be performed by HRM……..because good working conditions will help to positively motivate employees.
Working conditions include working hours, break times, ect. And also include any benefits that Auto-Elec chooses to offer its employees…… such as free parking, holiday/sick pay and pension contributions and so on….
(Bhattacharyya, 2017)
It will be an on-going obligation of HRM to assess and meet Auto-Elec’s training requirements, Because employee training and development will be crucial to Auto-Elec accomplishing its goals and objectives.
This will involve performing training needs analysis……..which is the process of identifying the training gap between the level of employee competence and Auto-Elec’s requirements. Typical programs that could be offered by Auto-Elec can include educational techniques or health and safety programs (sometimes required by law) that can be attended by employees.(Bhattacharyya, 2017)
Employee interactions and their behaviour towards each other can have the capacity to impact motivation and work performance. This in turn, can have either a positive or negative impact on Auto-Elec’s objectives and must be considered a .
(Bhattacharyya, 2017)
SPEAKER NOTES
Recruitment and selection is the process of screening potential job applicants to meet Auto-Elec’s requirements and selecting the most suitable candidate from the labour market. The process is important to Auto-Elec because it reduces the potential costs incurred by incorrectly hiring under/over qualified or unsuitable candidates.
(Mayhew, 2018)
Analysing the labour market will be another activity performed by HRM, It refers to the supply and demand for labour, where employees provide the supply and Auto-Elec provides the demand.
Recruiting from the internal labour market is the approach Auto-Elec would use to identify and select an existing employee that would be suitable for a senior role. (Businessdictionary, 2018)
Factors Impacting The Internal Labour Market could be………….
Natural wastage – the reduction in the size of a workforce as a result of voluntary resignation, retirement or death
Cost of labour required
Increase in capacity or a change in management
Recruiting from the external labour market is the approach Auto-Elec would use to look outside its existing employees to find a suitable person for a vacancy. (CIPD, 2016) Factors Impacting The External Labour Market can be analysed using the PESTLE model…………
Workforce planning would be the HRM activity of assessing the needs of Auto-Elec and matching the skill level required in the labour market, as illustrated on the following slide…………Employee turnover is the ratio of employees that leave Auto-Elec over a set period of time. It is measured as a percentage of total employees. The reasons or causes of turnover can include terminations, retirement, resignations or death. HRM will monitor employee turnover, as it could have a negative impact on Auto-Elec’s performance. High turnover could indicate issues with hiring policies or poor management skills (Businessdictionary, 2018)
Retention – Measurement to the extent Auto-Elec retains its employees over a set period of time.
Stability – Measurement of Auto-Elec’s employee survival rate over a period of time.
By identifying trends and understanding reasons behind employee turnover, HRM can devise recruitment schemes that could reduce turnover and increase employee retention.
(Businessdictionary, 2018)
Internal recruitment – Involves an assessment of Auto-Elec’s existing employees to determine if they are sufficiently skilled or qualified to perform required job vacancy. It results in a suitable current employee being reassigned to the new position by giving them either a promotion or an internal transfer.
(Businessdictionary, 2018)
External recruitment – Involves the assessment of the current available pool of job applicants/candidates, other than current staff, to determine if any are sufficiently skilled or qualified to perform existing job vacancies.
(Businessdictionary, 2018)
SPEAKER NOTES
Human resource planning is an integral part of maintaining a good HRM. Its the activity of recruiting new employees and could put Auto-Elec at a weakness if it is not planned for correctly. It connects the human resource requirements of Auto-Elec to its strategy, thus ensuring that staffing is sufficient, qualified, and competent enough to fulfil objectives.
(Businessdictionary, 2018)
Recruiting new employees needs to be well planned and completed in a timely manner, as hiring suitably qualified individuals before a given deadline could prove unachievable if available applicants prove to be less than qualified. This could result in a vacancy being open for too long, which could impact Auto-Elec’s competiveness.
(Newton, 2018)
Evaluation of existing employees This activity evaluates existing employees. Gaining an insight into employee strengths and weaknesses can assist Auto-Elec’s HRM plan ahead so the skills and capabilities of those employees can be fully utilised.
(CIPD, 2016)
Identifying internal opportunities This activity uses knowledge of existing employees in order to fully utilise their skillset This will save Auto-Elec time, money and resources, because spending to find new employees becomes unnecessary.
(CIPD, 2016)
Succession preparation This activity will prepare for a key employee leaving Auto-Elec by knowing well in advance, allowing time to select a replacement and formulate a plan for the transition. The absence of any one particular individual in a key role at Auto-Elec could cause disruption and place the organisation at a competitive disadvantage. HRM will analyse training needs of the successful candidate, and tailor it to the timeline of role being vacated.
(Moorty, 2017) This is the activity of establishing, researching and documenting job related tasks and the conditions under which they are performed.
The overall objective is to determine the correct method of performance, thus improving future training methods whilst also creating an effective measurement system that matches job specification with personal specifications during recruitment.
(Businessdictionary, 2018) Competency frameworks are a model prepared by HRM that would assist Auto-Elec’s recruitment and selection process by outlining and defining what mix of attributes, skills and attitudes are required to provide superior performance to enhance Auto-Elec’s competitive strength.
Messmer, M. (2007) CV’s are a summary of the job applicant’s professional experience and education background, along with other relevant information concerning qualifications. (Businessdictionary, 2018)
CV’s re often requested with an application form or after an application form has been submitted, this would allow Auto-Elec to further assess the candidates suitability for the vacancy and assist in producing a shortlist. Interview are a formal meeting arranged by HRM between Auto-Elec and an candidate for a vacancy, with the objective of establishing the candidates suitability for a position.
They are typically in person, but video and telephone are often used when excessive travel is needed
(Businessdictionary, 2018) Referees are individuals that serve as the point of contact when Auto-Elec are seeking to verify or ask questions about a potential employee’s background, work experience, or work ethic and so on……
An applicant could provide both professional and personal references.
(Businessdictionary, 2018) It is important for Auto-Elec to demonstrate to all of its employees that their on-going development and training is fully supported with effective training programs.
Neglecting employee training and failing to develop them could put Auto-Elec at a competitive disadvantage. Because learning and development are important employee benefits that must form part of Auto-Elec’s objectives in order to continuously attract and retain skilled employees
(Messmer, 2007) HRM will keep up to date with any new legislative training requirements that Auto-Elec’s employees will need. As well as the general day to day operational requirements.
The overall training needs of new employees will vary in contrast to existing employees at Auto-Elec, HRM will identify individual training and development needs and align them with Auto-Elec’s objectives. As mentioned earlier, raining Needs Analysis is the process of identifying the training gap between the level of employee competence and Auto-Elec’s requirements.
The benefits are…….
It helps determine which employees require training.
Identifies and highlights performance gaps.
Provides an effective training and development framework for the future training of new employees.
Works towards raising employee competency to meet Auto-Elec’s objectives.
(Messmer, 2007)
SPEAKER NOTES
There are different types of learning, when HRM have established Auto-Elec’s training gap, they will plan the most effective way to successfully implement the training required using one of the following delivery methods…………..
Formal learning is carefully controlled and structured classroom based training which is organised and delivered internally or externally by an institution or department.
Benefits
Every employee receives the same standard and level of training.
Auto-Elec can be confident that what employees are learning is tailored to meet their needs, ensuring they acquire the skills and knowledge to meet Auto-Elec’s needs.
(TAYLOR, T 2017)
Informal learning can take place at any time, and occurs when employees observe more experienced colleagues, learning from them by means of observation, discussions and advice.
Benefits include….
Saves time and money.
Some learners respond better to this method as it can happen naturally during the working day rather than at a set time or location.
(TAYLOR, T 2017)
Programmed learning – is based on the principles of self-paced learning with small stages that supply immediate feedback on the learners progress. The learner is presented with fragments of information that combine with previous information to build knowledge and awareness of a subject.
Benefits include…..
Students are exposed only to correct responses, therefore, possibility to commit errors in reduced.
Immediate confirmation of the results provides reinforcement to the learners and encourages the learners to proceed further.
Feedback is provided to wrong answers, so that learner is able to develop mastery over the content.
(Businessdictionary, 2018) (Durham, 2017)
Blended Learning – combines traditional classroom learning with lessons that use computer technology and the internet (E-Learning)
Benefits include……
Increases and broadens the scope and reach of the training
Learners can work at their own pace
Provides the ability for learners to revisit aspects of the course that the haven’t quite grasped.
(Cambridge Dictionary, 2018) (Messmer, 2007)
SPEAKER NOTES
Training methods can include………
On the job training – Employee learning at Auto-Elec while employee performs their job. Usually an experienced employee serves as trainer and the learner acquires job knowledge as they work.
Advantages
Cost effective method for training new employees, giving them hands on experience of systems and procedures.
Saves training time as it combines practical and theoretical knowledge.
Disadvantages
Trainer may not be very skilled at explaining systems and procedures, causing confusion for the new employee.
New employee is can be exposed to a negative working environment (culture)
(Durham, 2017)
Off the job training -Employee training at a location away from the Auto-Elec working environment.
Advantages
Training takes less time due to the focus on learning without on site distractions.
Production continuity is not effected as training is done away from Auto-Elec, which reduces the risk of production errors.
Disadvantages
Costs can be higher
Technology and procedures are not guaranteed to be aligned with Auto-Elec, causing confusion for employees on their return.
(Norman, 2017)
Job Instruction Training – A structured more specific version of on the job training method. Where the trainer prepares a trainee with an overview of the role, its purpose, and the correct results by demonstrating the role/task to the trainee, allowing for the trainee to mimic the demonstration and providing an instant appraisal.
Advantages
Increased safety as new employees are provide with demonstrations of how to competently operate machines and equipment.
Cost effective
Disadvantages
Competent trainer is required.
(Jane, 2017) Rewards refer to all financial, non financial and psychological payments that Auto-Elec provides for its employees in exchange for their time and work performance
HRM understands employee requirements and the subsequent incentives that motivates their performance and designs reward practices to maintain employee satisfaction and retention.
(Bratton and Gold, 2007)
Extrinsic Motivation – When employees are motivated to perform or engage in their work to earn a reward or avoid reprimanding.
Intrinsic motivation – When employees engage in their work because it is personally rewarding; essentially, performing an activity for its own sake rather than the desire for some external reward. SPEAKER NOTES
Wages- Usually paid weekly based on a rate for hours worked. A higher rate is granted for overtime
Indirect or “in kind”- Benefits that are in addition to wages/salaries such as pensions, sick pay, holiday pay, company cars ect
Salaries – Paid monthly as a segment of an annual fixed sum, overtime rate is not usually paid.
Sense of Meaningfulness Employee feels that their work is worthwhile, giving them a strong sense of purpose or direction.
Sense of Choice Employee has freedom to choose how to accomplish their work—being allowed to use their best judgment to select techniques that make the most sense to them and to perform them in ways that seem logical.
Sense of Competence Employees feel they accomplish their work well—and that their performance meets or exceeds their personal standards, Giving them a sense of satisfaction & pride.
Sense of Progress Employees are encouraged that their efforts are really accomplishing something. They feel that their work is purposefully moving in the right direction.
(Thomas, 2009) The Core-Periphery model highlights three classifications of employees that form a flexible workforce, and will allow Auto-Elec to plan for functional, numerical and financial flexibility.
Core Employees – The minimum amount of employees that Auto-Elec would need in order to function throughout the year. They have specific skills and their role must be filled.
Peripheral Employees – Employed to support core employees. They have general skills and are readily available in the labour market.
External Employees – Employees that can be hired on a temporary basis like consultants or through an agency.
(Atkinson, 1985) SPEAKER NOTES
Flexible working refers to the working arrangements that Auto-Elec has with its employees. It covers working times, working location and can be formal or informal. Some organisations choose to amend the written employment contract when new working arrangements are put in place, and/or include flexible working policies in the employer’s handbook. However some forms of flexible working, such as working from home, are likely to be offered informally.
(CIPD, 2017)
Reduced Time Working -Part-time working: work is generally considered part-time when employers are contracted to work anything less than full-time hours.
Flexi-time – Flexitime: allows employees to choose, within certain set limits, when to begin and end work.
Zero Hours Contracts – Zero-hours contracts: an individual has no guarantee of a minimum number of working hours, so they can be called upon as and when required and paid just for the hours they work.
Job Sharing – Job-sharing: a form of part-time working where two (or occasionally more) people share the responsibility for a job between them
Term Time Working – a worker remains on a permanent contract but can take paid/unpaid leave during school holidays
(CIPD, 2017) Performance management allows Auto-Elec to monitor the effectiveness of its employees in meeting its goals through a set of methods and processes to ensure that employees contribute positively towards objectives.
In order for performance measurement to be effective, Auto-Elec’s goals must be transferred into specific, measurable, attainable, realistic and timely (SMART) objectives in order to measure performance.
Appraisals are a continuous cycle of interviews by management to assess employee performance and work behaviour by comparing it to pre-set standards.
Tell and Sell -The objective of the tell-and-sell method is to provide feedback to employees about their performance, gain their acceptance of the evaluation and persuade them to follow their superior’s plan for improvement.
Tell and Listen – The objective of the tell-and-listen method is to communicate the evaluation to the employee and then let him or her respond to it. Supervisors describe their perceptions of an employee’s strengths and weaknesses and listen to the employee’s feeling about the evaluation without refuting an employee’s objections.
Problem Solving – The objective of the problem-solving method is to help employees identify their performance deficiencies and encourage them to initiate a mutually agreed upon plan for improvement. Problem-solving interviews are best suited for coaching and development. Supervisors may need training
(CIPD, 2017) Collecting feedback can also be used to manage performance. It can be approached in different ways
Self Appraisal – the evaluation of one’s own strengths and weaknesses. Self-appraisal is potentially useful.
Upward Appraisal – It is a form of evaluation in which employees make assessments of their managers. The assumption is that subordinates have knowledge and appreciation of work behavior and can provide valuable insights.
Customer Appraisal – Gaining real-world knowledge of how your employee and organization is viewed by your customer is the best advantage of securing customer opinion. Without this knowledge, you’ll have little proof that your internal human resources controls affect the business, either negatively or positively.
Workplace reward systems are incentive programs that encourage employee engagement and productivity by offering bonuses, increased pay, additional time off or other awards for a job well done.
Productivity – Rewarding employees for their efforts give them an incentive to perform better and be more productive.
Attendance – Attendance-based reward systems offer employees incentive to adhere to their schedule and maintain perfect attendance
Culture – Reward programs motivate employees to meet goals while supporting obdurate behaviour and values that will be rewarded.
Retention – Employees who feel valued and successful through a reward system are more likely to pursue advancement opportunities within Auto-Elec rather than a competitor. Direct or Base Pay -Fixed amount of money paid to an employee for work performed. Base pay does not include benefits, bonuses or any other potential rewards.
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