Chapter 5 Flashcards
3 stages of the employment cycle
Establishment
Maintenance
Termination
The employment cycle involves an organisation determining it’s employment needs in line with it’s business strategy
Once employment needs are satisfied > hire staff
Once staff are employed > ensure staff are productive and satisfied
Finally manage what happens when employees leave an organisation
Explain the establishment stage
Planning: identifying staffing needs, conducting job analysis (determining the exact nature of the position to be filled) and job design (determining how the job is to be performed and the material and the equipment required to do so)
Recruitment: attracting people to apply for the position in the business, undertaking internal and external recruitment
Selection: choosing and hiring the most qualified; involves testing and interviewing
Employment arrangements + remuneration: deciding on the type of employment contract (arrangements) and ways of paying employees
Explain the maintenance phase
“Induction: Acquiring new employees with the organisation and the jobs they will perform
Training and development: teaching employees new skills, helping employees to learn new tasks associated with their job, improving their skills
Recognition and reward: monetary benefits (financial compensation) and non monetary benefits (better conditions)
Performance management – methods to improve both Organisational and individual employee performance “
Explain the termination phase
“Termination management: voluntary termination (dealing with employees leaving out of their own accord; retirement, resignation) and involuntary termination dealing with employees being asked to leave (retrenchment/dismissal)
Entitlement and transition issues: payment of any outstanding benefits such a sick or annual leave and providing support such as counseling for dismissed employees “
Define human resource planning
is the development of strategies to meet the organisations future human resource needs
Define strategies
The actions that organisations take to achieve specific objectives
Organisations have to “plan” for positions that will inevitably become vacant through; retirement, resining or promotion – therefore for most organisations satisfying staffing needs is an ongoing process
Explain how hr planning can be linked to business strategies
ensuring the correct number of suitably qualified staff are employed by the organisation when necessary
e.g strategy to achieve the objective of increase profits may be to reduce business costs – HR must forecast future demand for employees and estimate the supply available to meet that demand in order to avoid having too many employees on the pay roll
Due to pace of technology and global economy organisation must respond to change quickly – if an organisation does not plan their HR needs in line with their business strategy it is unlikely they will succeed
HR planning is in the ‘establishment phase’ of the employment cycle requiring an organisation to constantly plan and monitor:
The number of employees required
Their qualifications, including skills, previous experience and knowledge
When and where these employees will be needed
»Therefore involves forecasting the number of employees available and the number of qualified employees demanded in the future
Define job analysis
is the study of an employee’s job in order to determine the duties performed, the time involved with each of those duties, the responsibilities involved and the equipment required
What does a job analysis entail
The actual job activities The equipment used in the job Working conditions The degree of supervision necessary Specific job behaviors required
Job analysis is broken into 2 parts
Job description
Job specification
Define job description
is a summary of what the worker will be doing – the role theu will have in the organisation in terms of duties and responsibilities
Define job specification
Will indicate the sort of person an organisation is seeking in terms of personal qualities, skills, education and work experience
Define job design
Details the number, kind and variety of tasks that individual employees perform in their jobs. Jobs may be designed so they include a variety of tasks to keep employees interested and motivated
Effective job designs include
Include a variety of tasks to keep empoyees interested and motivated
Take into account the satisfaction of employees needs
Group compatible tasks and match them with skills and experience profile of most suitable candidates
Provide variety, challenges and responsibility in duties to improve motivation and performance whilst reducing absenteeism and staff turnover
Intrinsic motivation may be improved through following 3 approaches – job enlargement, job enrichment and job rotation
Define recruitment
is the process of attracting qualified applicants from which to select the most appropriate person for a specific job
Main sources of recruitment of employees for an organisation
Advertising in the media Tempoary/casual services Schools/colleges/Tafe Internal searches Public employment agencies Private employment agencies
Explain internal recruitment
Internal recruitment involves considering present employees as applicants for available positions.
Often occurs when someone is promoted – provides strong motivation for current employees
Internal searches is only effective if an organisation is substantial in size
Internal searches for a candidate allows an organisation to use it’s own employees skills
Advantageous as low in costs (hiring + training)
Referral schemes can be used where employees nominate their peers for a promotion and if their nominee is promoted they receive a referral bonus
Benefits of internal recruitment
Allows organisations to use it’s own employees skills
Lower costs (hiring + training)
Enables selection of replacement to be
Familiar with Organisational operations
Organisation is already aware of each candidates strengths and weaknesses
Provides strong motivation for employees seeking promotion
Explain the limitations of internal recruitment
Only effective in large scale organisations
Not appropriate when organisation needs people with new or different ideas
Employees without correct skills and qualifications may be promoted
May cause dissatisfaction for employees who are not promoted.
Explain external recruitment
External recruitment is when an organisation selects a suitable applicant for a position outside the organisation
A business will use external recruitment method to bring in people with new or different ideas and attitudes
External methods of recruitment include:
Online (seek) or in newspaper
Cyber recruiting (through the organisations website)
Experts – employment agencies/ management recruitment consultants
University recruitment drives
Recommendations of current employees
Applications from potential employees (kept on file)
Professional association contacts or networking (LinkedIn)
Headhunters – fill senior + executive roles
Common external recruitment methods include
External recruitment is when an organisation selects a suitable applicant for a position outside the organisation
A business will use external recruitment method to bring in people with new or different ideas and attitudes
External methods of recruitment include:
Online (seek) or in newspaper
Cyber recruiting (through the organisations website)
Experts – employment agencies/ management recruitment consultants
University recruitment drives
Recommendations of current employees
Applications from potential employees (kept on file)
Professional association contacts or networking (LinkedIn)
Headhunters – fill senior + executive roles
Benefits of external recruitment
“Wider choice of candidates
New employees bring new insights as well as more business contacts “
Explain the limitations of external recruitment
“New employees require more time to adjust to the environment
New employees might not have required skills or fir into the workplace culture
Increased costs associated with recruiting, selection and induction “
Define employee selection
involves choosing the candidate who best matches the organisations requirements