HUMAN RESOURCE MANAGEMENT Key Points PUTAKE (SOURCE) What performance indicators are important for each business may vary. An Iwi-owned land collective may measure performance very differently to a privately-owned
retail chain. Business with a putake founded in community well-being may be more inclined to employ HR practices that benefit the community first and foremost. A business founded on providing a financial return to its investors, may employ HR practices that give a strong financial return Human resources are one of the most
important features of many businesses. Human resources account for a large proportion of many businesses' costs. It is the people working in a business that invariably drive a business. Range of factors to be considered MOTIVATION and PRODUCTIVITY
Productivity is a key measure of how efficiently a business is operating. It is usually calculated by measuring the output for each unit of input (Output / Input) This can be measured through: A. Profit B. Revenues C. Growth in sales D. Market share
An important driver of productivity is motivation of workers. Poor motivation leads to: a. Lower productivity levels b. Poor quality products and services c. High levels of complaints from customers d. Loss of customers with subsequently lower revenues e. Higher costs
f. Higher staff turnover g. Poor industrial relations Needs Analysis For most businesses, large or small, the task of identifying what work needs doing and who should do it is a continuous challenge! Why a business might need to recruit staff:
Business expansion due to Increasing sales of existing products Developing new products Entering new markets Existing employees leave: To work with competitors or other local employers Due to factors such as retirement, sick leave, maternity leave
Business needs employees with new skills Business is relocating and not all of existing workforce want to move to new location Staff Retention All businesses are affected by staff turnover. Turnover refers to the human resource movement from a department or organisation. That is, employees moving on from a job for one reason or another.
The effectiveness of HRM programmes and activities can be seen by the turnover. Effective management of turnover can identify problem areas and help HRM to develop suitable strategies. A high turnover of staff due to retention issues, this will result in low staff morale, poor service delivery, damage to your organisation brand and your reputation in the market place, and most importantly will be impacting on your financial bottom line.
MOTIVATING STAFF Motivation is what stimulates and drives an individual towards achieving a result. 2 Theories are considered relevant: 1. Maslow's hierarchy of needs theory 2. Herzberg's motivator - hygiene theory Maslow's hierarchy of needs theory Self - Esteem
Self - Actualisation Self - Esteem Belonging Security Needs & Basic Wants Herzberg's motivator - hygiene theory Two categories under this theory Motivating and Environmental factors.
1. Motivating Employee Activities Job Satisfaction Category completing challenging work receiving recognition gaining responsibility promotion achieving goals 2. Environmental factors Job Dissatisfaction The theory suggests that these factors won't
motivate an employee or make them satisfied with their job, but their absence will create job dissatisfaction. company policy, supervision, workplace conditions and salary TRAINING & DEVELOPMENT Training can be defined as:
The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively Training takes place at various points and places in a business. Commonly, training is required to: Support new employees (induction training) Improve productivity Increase marketing effectiveness Support higher standards of customer service and production quality
Introduction of new technology, systems or other change Address changes in legislation Support employee progression and promotion Benefits of training for a business 1. Higher quality 2. Better productivity 3. Improved motivation - through greater empowerment 4. More flexibility through better skills
5. Less supervision required (cost saving in supervision) 6. Better recruitment and employee retention 7. Easier to implement change in the business Lack of training Problems Problems that businesses will face if there is no training given to staff: Poor quality Missing deadlines
Accidents Wastage of materials Incorrect instructions Misuse / misallocation of budget Equipment failure Reduced output Increased costs APPRAISAL Employee evaluations are a way managers can assess job
performance and provide feedback to employees. An employee appraisal is a method of measuring employee job performance. Types of Appraisal systems: Top-Down Appraisal is used most commonly. Productivity, behaviour and goal completion are generally measured by the supervisor. Management by Objectives, also called MBO, involves management and employee collaboration on goal setting. Once goals have been set and agreed upon, management
uses the outcomes to provide feedback. Self-Assessment is an assessment of performance done by the employee himself or herself 360 Degree Feedback is a form of feedback about an employee's performance from many different people within the company and outside the company.
EMPLOYMENT RELATIONS Rights and Responsibilities Change Management The performance of employees is affected by changes in the organisation. Changes can be of two types Internal and External.
Internal: Led by Senior Management External: Led Employment laws and Economic conditions. The management and minimisation of the effects of these forces lies in the hands of Human Resources Managers in order to maintain employment relations. Employment relations is the maintenance of the interaction between the employees, and the
employer. Keys areas of interactions are: outcomes of performance appraisals, provision of Employee Assistance Programmes, counselling, dispute resolution, and training & development needs of the employees. Rights and Responsibilities At the very foundation of every employee
employer relationship are rights and responsibilities: Rights: An entitlement to something Responsibilities: A legal duty to pay or do something; to fulfil obligations Both employers and employees have rights and responsibilities in the employment relationship. Employers meet their responsibilities to employees in a way which best serves the business objectives. Many of these rights and responsibilities are
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