Human Resource Management: A Case Study Approach The Context of HRM

1. Your University logo Human Resource Management: A Case Study Approach The Context of HRM Your title and name Your university‘s name Title course

2. Key characteristics of organisations Organisational environment The system and PEST models Use of the system and PEST models to monitor change in an organisation’s environment Main case study Lecture outline

3. To identify the key characteristics of organisations To describe and analyse the key environmental factors that influence the HRM process within organisations To discuss the ways in which organisations can monitor envronmental influences Learning objectives

4. To identify sources of information to help gain understanding of employment markets Learning objectives cont’d

5. Three major elements common to all organisations Ownership type Orientation Size Ownership type Public Charitable/Independent Private Ownership type influences the purpose and financing of the organisation Characteristics of organisations

6. The public sector covers central government, local government, universities, schools and hospitals Mostly funded by tax to service society Charities/the independent sector are non-government and non-profit-making Funded by donation for particular needs Characteristics of organisations cont’d

7. The private sector is owned and financed by individuals, partners or shareholders The aim is commercial: to make a profit Three main types Sole traders Partnerships Limited companies (Public Limited Companies quoted on the Stock Exchange, and Limited Companies which are not) Characteristics of organisations cont’d

8. Organisational orientation is split between production or service A product is a physical, tangible item A service is intangible and consumed at the point of delivery Orientation can also be considered by reference to activities Primary: eg agriculture, mining Secondary: eg manufacturing, production Tertiary: eg services, finance, health Characteristics of organisations cont’d

9. Organisational size Small/micro: with less than 10 employees Small to medium: with less than 250 employees Large: with more than 250 Characteristics of organisations cont’d

10. A systems model Describing and analysing the HRM context Feedback from the environment Outputs from other systems Inputs to other systems The Organisation Inputs TRANSFORMATION Outputs Throughput Effectiveness Economy Efficiency

11. The PEST Model Describing and analysing the HRM context Political Economic HRM context Social/cultural Technological

12. Prioritising external influences Dimension 1 – Degree of diversity Homogeneous Diversified Dimension 2 – Degree of complexity Simple Complex Dimension 3 – Degree of routine Routine Non-routine Dimension 4 – Degree of hostility Supportive Hostile

13. To consider how organisations monitor changes in the environment, focus will be given to the impacts on labour markets Labour markets influence the supply and demand of human resources The employment market can be described as an economic exchange between the employer and employee Supply is represented by the economically active workforce Demand is represented by the availability of jobs (in turn driven by the demand for the product or service of the organisation) Monitoring environmental influences

14. The composition of the labour supply influences the method of sourcing and salaries to be paid The age structure of a population also affects labour supply HR managers have to ensure that supply meets demand for qualified staff via effective HRM activities such as: Recruitment, induction, appraisal, promotion, training, reward, retirement, and redundancy Implications of changing employment markets

15. One of HR’s roles is to plan and predict the supply and demand of labour using a variety of sources: surveys, applications, newspapers and periodicals Organisations may also benchmark to allow them to learn and adopt better HR practices Implications of changing employment markets

16. Organisations can be differentiated by type, shape, size, ownership and objective HR managers can use the system or PEST model to describe an organisation Environmental factors can be prioritised for importance and impact A key influence for HR managers is the employment market Labour supply influences sourcing and salaries HR managers can use various data sources to get information about employment markets Benchmarking can be used as a tool to assess HR best practice Lecture summary

17. Questions to answer: What would be the potential impact of this development on Atif and his colleagues, both as HR specialists and as employees? What sources of information were Atif and his colleagues using, and what other sources could they have used? Why did the development described come as a surprise? Case study:

18. Questions to answer: What range of responses to this development should be recommended to the director? What long-term strategy would you recommend? Case study:

19. Question session Your University logo Your title and name Your university‘s name Your contact details