MGT501: Introduction to

Business Management
Semester 1 2024
Topic 12:Human
Resource
Management

Semester 1 2024
 12.1 Analyse the establishment of the
employment relationship
12.2 Discuss how employment
Learning relationship is maintained at
workplaces.
Outcome 12.3 Demonstrate the process of
s terminating employment relationship at
workplaces
12.4 Discuss the contemporary issues in
human resources management

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 Introduction
• The HRM process encompasses a few important activities.
1. Human resource planning assesses the human resource needs associated with
strategic management and helps identify staffing needs.
2. Staffing includes attracting and selecting individuals for appropriate positions.
3. Training and performance evaluation are means of ensuring that employees
can contribute to the organisation.
4. Compensation involves rewards that will attract, motivate, and retain
employees.
5. Workforce perceptions of the organisation and its treatment of employees
must be managed.

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 Introduction
• The role of HRM in organisations has evolved to its current strategic
importance.
• early 1900s -mid 1960s HRM activities consisted of file maintenance
such as screening applicants, orienting employees, recording
personnel data and planning social affairs.
• mid-1960s on, HRM gained importance as it entered the government
accountability stage. Federal regulatory guidelines affecting hiring
and promotions, and health and safety issues. The role of HRM was
to help the organisation avoid legal difficulties and large financial
settlements.
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• late 1970 and early 1980s, HRM entered the competitive advantage
stage, in which human resources are considered explicitly in
 Introduction

Human Resource Functions :

Acquiring human resources

Maintaining human resources

Terminating the relationship

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 12.1 Analyse the establishment of
the employment relationship
Acquiring human resources
1. Human resource planning
2. Job analysis
3. Recruitment
4. Selection

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 12.1 Analyse the establishment of
the employment relationship
1. Human resource planning
• Determining future human resource needs in relation to an
organisation’s business objectives or strategic plan.
2. Job analysis
• The systematic collecting and recording of information about the
purpose of a job, its major duties, the conditions under which it is
performed, the required contacts with others and the knowledge,
skills and abilities needed to perform
it effectively.
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 12.1 Analyse the establishment of
the employment relationship
3. Recruitment
• The process of finding and attracting job candidates capable of
effectively filling job vacancies.
• Internal recruitment is the process of finding potential internal
candidates and encouraging them to apply for and be willing to
accept organisational jobs that are open.
• Job posting is a practice whereby information about job
vacancies is placed in conspicuous places in an organisation,
such as on bulletin boards or in organisational newsletters.
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 12.1 Analyse the establishment of
the employment relationship
Advantages of Internal Disadvantages of Internal
Recruitment Recruitment
Candidates are already oriented There are fewer new ideas
to the organisation.
Reliable information is available Unsuccessful contenders may
about candidates. become upset
Recruitment costs are lower. Selection is more susceptible to
office politics.
Internal morale is increased due Expensive training may be
to upward
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Good performance is rewarded. Candidates current work may be

 12.1 Analyse the establishment of
the employment relationship
• External recruitment is the process of finding potential external
candidates and encouraging them to apply for and/or be willing to
accept organisational jobs that are open.
• Sources for obtaining external job candidates include advertising,
college recruiting programs, employment agencies, and referrals by
employees.
• The realistic job preview is a technique used during the recruiting
process, in which the job candidate is presented with a balanced
view of both the positive and the negative aspects of the job and the
organisation.
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 12.1 Analyse the establishment of
the employment relationship
Advantages of External Disadvantages of External
Recruitment Recruitment
External candidates are a The probability of mistakes is
potential source of new ideas. higher because of less reliable
Candidates may have broader Potential internal candidates may
experience. be resentful.
Potential recruits may be familiar The new employee may have a
with competitors. slower start because of the need
for orientation to organisation.
Candidates
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may have new The recruitment process may be 12

specialties. expensive.
 12.1 Analyse the establishment of
the employment relationship
• 4. Selection is the process of determining which job candidates
best suit organisational needs
• Reliability- The degree to which the decision-making process
will measure the same consistently
• Selection devices like Application forms , Written tests,
Employment tests, Selection interviews , Assessment centres
• Validity -Whether the decision process actually measures what
it sets out to measure
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 12.2 Discuss how employment
relationship is maintained at workplaces.
• Maintaining the Relationship
1. Reward management: Remuneration and benefits
2. Training and Development
3. Performance management/appraisal

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 12.2 Discuss how employment
relationship is maintained at workplaces.
1. Reward management: Remuneration and benefits
Linked to job analysis
• Governed by regulatory framework
• Internal pay relativity
• External pay relativity

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 12.2 Discuss how employment
relationship is maintained at workplaces.
2. Training and Development
• The various types of training programs may be conducted internally
by members of the organisation or by external consultants.
• Orientation training usually is a formal program designed to provide
new employees with information about the company and their jobs.
• Technical skill training is oriented toward providing specialised
knowledge and developing facility in the use of methods, processes,
and techniques associated with a particular discipline or trade.
• Management development programs focus on developing managerial
skills for use at the supervisory, managerial, and executive levels.
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 12.2 Discuss how employment
relationship is maintained at workplaces.
3. Performance appraisal is the process of defining expectations for employee
performance; measuring, evaluating, and recording employee performance
relative to those expectations; and providing feedback to the employee.
• 360-degree feedback overcome the traditional problem of reinforcing a
hierarchal
Performance appraisal plays some essential roles in organisations:
• To improve performance.
• To determine merit, pay increases.
• To plan future performance goals.
• To determine training and development needs.
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• To assess the promotional potential of employees
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 12.3 Demonstrate the process of terminating
employment relationship at workplaces
• Terminating the Employment Relationship
• Employment relationships can be terminated in several ways.
1.Voluntary termination occurs when employees give a mutually agreed period of
notice of intention to leave the employment relationship.
2. All other terminations of the employment relationship are involuntary terminations.
• Retrenchment is the forced termination of employment relationship due longer
being required.
• Dismissal is the employer giving the required notice to terminate the employment
relationship.
• Redundancy is A forced termination of the employment relationship resulting from
the permanent deletion of specific positions 18
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 12.4 Discuss the contemporary issues
in human resources management
1. Managing diversity refers to policies and practices which maximise the
potential of all employees to contribute to organisational goals and to develop
their capabilities unhindered by group identities such as race, age, gender,
physical ability, ethnicity, sexual orientation
2. The aging workforce has serious implications for the labour market and is
causing a reassessment of the skills of mature workers. Advantages include:
 Accustomed to re-skilling and multi-skilling,
 Adjusted to use of flexible labour and more stable and less likely to change
jobs.
 Familiar with values of workforce diversity and multiculturalism. 19
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 Willing to retrain and are more productive (on average).
 12.4 Discuss the contemporary issues
in human resources management
3. Skill shortages are being experienced particularly in the professions,
industry and trades which will significantly impact on productivity and
economic growth.
4. Work–life balance (WLB) concerns have moved from a focus on family-
friendly notions to the wider concept of work-life balance and initiatives
cover five broad categories:
 Child and dependant care benefits
 Flexible working conditions
 Leave options
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 Information
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 Organisational cultural issues
 12.4 Discuss the contemporary issues
in human resources management
5. Outsourcing HRM or the contracting out of some HRM functions has
become very popular but there are also notes of caution in the need to
be more strategic about expectations and the management of the
relationship.
6. Measuring HRM effectiveness

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 Conclusion
• Human resource management (HRM) is the function of an
organization that handles everything having to do with its
people.
• HRM involves recruiting, hiring, training, compensating,
retaining, and motivating employees

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 12.1 Analyse the establishment of
the employment relationship

12.2 Discuss how employment

• relationship is maintained at
workplaces.
12.3 Demonstrate the process of
terminating employment
relationship at workplaces

12.4 Discuss
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issues in human resources