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Human resource management in Australia. Chapter 1. Introduction to human resource management (HRM). Objectives Discuss the roles and activities of a company’s human resource function. Discuss the competitive challenges influencing Australian companies.

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introduction to human resource management hrm
Introduction to human resource management (HRM)
  • Objectives
    • Discuss the roles and activities of a company’s human resource function.
    • Discuss the competitive challenges influencing Australian companies.
    • Discuss how human resource practices affect a company’s balanced scorecard.
    • Discuss what companies should do to be competitive in the global marketplace.

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

introduction to human resource management hrm3
Introduction to human resource management (HRM)
  • Objectives (continued)
    • Identify the characteristics of the workforce and how they influence human resource management practices.
    • Discuss human resource practices that support high-performance work systems.
    • Provide a brief description of human resource management practices.

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

human resource management hrm
Human resource management (HRM)
  • Refers to the policies, practices and systems that influence employees’ behaviour, attitudes and performance.
  • Many companies refer to HRM as ‘people practices’.

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 1 hrm practices

Strategic human resource management

Company Performance

Selection & Placement

Measuring and Evaluating

Recruitment

Compensation

Managing Diversity

Industrial relations

Performance Management

HR Information Systems

HR Planning

Job Analysis & Design

Learning and development

Figure 1.1 HRM practices

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

the development of theoretical bases for hrm
The development of theoretical bases for HRM
  • Theoretical perspectives of HRM include:
    • Behavioural view
    • Resource-based view
    • Politically-influenced view.

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 2 the harvard analytical framework for hrm

Stakeholder Interests

Shareholders

Management

Employee groups

Government

Community

Unions

HRM Policy

Choices

Employee influence

Human resource flow

Reward systems

Work systems

HR Outcomes

Commitment

Competence

Congruence

Cost effectiveness

Long-term

Consequences

Individual well-being

Organisational

effectiveness

Societal well-being

Situational Factors

Workforce characteristics

Business strategy

and conditions

Management philosophy

Labour market

Unions

Task technology

Laws and societal values

Source: M. Beer, B. Spector, P.R. Lawrence, D.Q. Mills & R.E. Walton, Managing human assets, Free Press, New York, 1984, p. 16.

Figure 1.2 The Harvard Analytical Framework for HRM

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

features of the dominant approach to hrm
Features of the dominant approach to HRM
  • Focus on enterprise or firm.
  • HRM is an investment in human capital.
  • Reciprocal fit between organisational strategy and HR strategy.
  • All managers are responsible for HRM.

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

table 1 1 most significant changes in hr 1990 95

n*

%

(*n=322; open-ended data; respondents may have answered more than one suggestion)

Source: C. Fisher & P.J. Dowling, ‘Support for an HR approach in Australia: the perspective of senior HR managers’, Asia Pacific Journal of Human Resources, 37 (1), 1999, p. 9.

Table 1.1 Most significant changes in HR (1990-95)

Integration & strategic focus of HR policies 120 37.3

Employee relations 118 36.7

Contribution of HR to company performance 77 24.0

Worker participation and team work 62 19.3

Quality issues 53 16.5

Training 41 12.7

Flexible work patterns 41 12.7

Devolution of function 40 12.4

Legislative changes 34 10.6

Economic rationalism 33 10.3

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

table 1 2 issues with greatest impact on hr 1995 2000

(*n=322; open-ended data; respondents may have answered more than one suggestion)

Source: C. Fisher & P.J. Dowling, ‘Support for an HR approach in Australia: the perspective of senior HR managers’, Asia Pacific Journal of Human Resources, 37 (1) 1999, p. 9.

Table 1.2 Issues with greatest impact on HR (1995-2000)

n*

%

HR role in change & strategic planning 90 28.0

Employee relations 64 20.0

Contribution of HR to company performance 62 19.3

Flexible work patterns 39 12.1

Legislative changes 30 9.3

Quality issues 28 8.7

Internationalisation 27 8.4

Training 25 7.8

Worker participation and team work 24 7.5

Technology 21 6.5

Performance management 19 5.9

Outsourcing 15 4.7

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

slide11
Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

roles performed by hr professionals ulrich 1997
Roles performed by HR professionals(Ulrich, 1997)
  • Administrative expert
  • Employee champion
  • Change agent
  • Strategic business partner

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 3 hr roles and competencies

Compensation

Strategic management

Organisational development

Change management

Evaluation

Benefits

Audit

Data management

Analytical,

fact-based

decision making

Leadership

Conceptual ideas

Visioning

Compliance

Regulation

Administration

Control

Interpersonal

team work

Diversity

Counselling

Employee development

Industrial relations

Legal

Figure 1.3 HR roles and competencies

Source: The Conference Board, Inc., The Changing Human Resource Function, The Conference Board, New York, 1990, p. 11.

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 4 competitive challenges influencing australian challenges

Competing through

high-performance work systems

Competing by meeting stakeholders’ needs

Competing through globalisation

  • Expand into foreign markets
  • Prepare employees for work in foreign locations
  • Change employees’ and managers’ work roles
  • Integrate technology and social systems
  • Provide a return for shareholders
  • Develop employees and create a positive work environment

Australian Business Competitiveness

Figure 1.4 Competitive challenges influencing Australian challenges

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

the global challenge for hrm
The global challenge for HRM
  • Development of global markets
  • Global competitiveness through HRM practices
  • Preparing employees for international assignments

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

the challenge of meeting stakeholders needs table 1 7 the balanced scorecard

Perspective

Questions answered

Examples of critical indicators

Customer

Internal

Innovation and learning

Financial

How do customers see us?

What must we excel at?

Can we continue to improve and create value?

How do we look to shareholders?

Time, quality, performance, service, cost

Processes that influence customer satisfaction, availability of information on service and/or manufacturing processes

Improve operating efficiency, launch new products, continuously improve, empower workforce

Profitability, growth, shareholder value

The challenge of meeting stakeholders’ needs:Table 1.7 The balanced scorecard

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

the challenge of meeting stakeholders needs figure 1 5 the australian business excellence model

Source: Australian Quality Council Ltd., ‘Success stories’, www.aqc.org.au

The challenge of meeting stakeholders’ needs: Figure 1.5 The Australian Business Excellence Model

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

the challenge of meeting stakeholders needs characteristics of the australian workforce
The challenge of meeting stakeholders’ needs: characteristics of the Australian workforce
  • Gender
  • Ethnic diversity
  • Structure of the economy
  • Skill deficiencies
  • Changes in the employment contract
  • Changes in the place of work
  • Employee values
  • Legislation
  • Ethical considerations

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

the challenge of high performance work systems hpws
The challenge of high-performance work systems(HPWS)
  • Change in employees’ work roles and skill requirements
  • Increase in the use of teams to perform work
  • Changes in the nature of managerial work
  • Changes in company structure
  • Increased availability of HR information bases
  • Competitiveness in HPWS

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 6 relationship between hr philosophy and practices

Human resource management system philosophy

Guiding Principles

Employee performance is valued

Practice alternatives

Mix of practices that are consistent with philosophy and are aligned with each other

Mix of performance appraisals, incentive pay, promotions

Practice processes

Team-based incentive pay

State-of-the-art, 360º performance appraisal

Source: Based on B. Becker & B. Gerhart, ‘The impact of human resource management on organizational performance: progress and prospects’, Academy of Management Journal 39, 1996, p. 786. Used with permission.

Figure 1.6 Relationship between HR philosophy and practices

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 7 examples of how hr practices can help companies meet the competitive challenges

Global

Challenge

Stakeholder

Challenge

High-Performance Work System Challenge

HR Practices

  • HR strategy is matched to business strategy
  • Work is performed by teams
  • Pay systems reward skills and accomplishments
  • Selection system is job-related and legal
  • Work attitudes of employees are monitored
  • Continuous learning environment is created
  • Discipline system is progressive
  • Customer satisfaction and quality are evaluated in the performance management system
  • Skills and values of a diverse work force are valued and used
Figure 1.7 Examples of how HR practices can help companies meet the competitive challenges

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

figure 1 8 major dimensions of hrm practices contributing to company competitiveness

Dimensions of HRM Practices

Managing the human resources environment

Building human resource

systems

Developing human resources

Rewarding human resources

Competitiveness

Figure 1.8 Major dimensions of HRM practices contributing to company competitiveness

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

overview of hrm topics
Overview of HRM topics

Part 1: Managing the Human Resources Environment

Part 2: Building HRM Systems

Part 3: Developing people

Part 4: Rewarding people

Part 5: Directions for HRM

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar

overview of hrm topics24

Part 1:

HRM in Australia

Strategic HRM

Legal context for HRM

Analysis and design of work

HR planning and HR information systems

Recruitment, selection and placement

Industrial relations

Managing diversity and work–life balance

Performance management

Employee learning

Employee development and career management

Managing compensation

Performance-related pay

Managing a global workforce

Managing employee retention and turnover

Evaluating and improving the HR function

Part 2:

Part 3:

Part 4:

Part 5:

Overview of HRM topics

Copyright  2003 McGraw-Hill Australia Pty Ltd.

PPTs t/a Human Resource Management in Australia: Strategy-People-Performance

by De Cieri & Kramar