Human Resources


Rodney Overton

Martin Books
Success in Business

Published by Martin Books Pty Ltd ACN 112 719 052 20 Blackwoods Road Boat Harbour NSW 2484 Australia Tel: (61 2) 6679 1051 Fax: (61 2) 6679 1535 Email: Web:

Copyright 2002-2007 Martin Books All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher National Library of Australia Cataloguing- in-Publication entry: Overton, Rodney Managing Human Resources ISBN 978-1-921360-44-2
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First published 2002 in soft cover eBOOK version September 2007

The writer - Rodney Overton
is an international award winning writer (published in four languages) of more than twenty-five popular business skills ‘how-to’ books covering a wide range of business, human resources, management, planning and sales and marketing topics. Publishers in a number of overseas countries produce and distribute localised versions of these books. He works as business consultant and strategist and has wide experience in facilitating, writing and developing business training courses.

Martin Books have a combined range of more than 100 books, CD ROMs and Training Facilitators Manuals available, covering areas of business such as Administration, Planning, Finance, Human Resources, Management, Marketing, Sales and Small Business. We also have a Training Facilitators Manual available for a training course titled HUMAN RESOURCES. Our books are distributed and published in three languages in a number of overseas countries.

This book is an enlarged and vastly revised version of a similar and very popular title which was first published in 1994 with subsequent numerous reprints. More than ever the management of Human Resources in any organisation is a key success factor. Many people would agree that Human Resources Management is one of the most difficult tasks in operating a business - if not the most difficult. Increasingly in many cases the only difference between companies selling similar products or services at almost identical prices and identical trading terms is their people. Thus, maximising the potential of your people is of paramount importance in business. Successful Human Resources involves many stages from recruitment to induction, training and ideally promotion to mention but a few stages. Many organisations fail to harness and utilise their most valuable and potentially their most lucrative resource - their people. To do this successfully of course involves motivation and making people feel that they are an important part of the business. The business press on almost a daily basis gives coverage to the latest round of retrenchments which often fly in the face of sound Human Resource management. A recent and highly publicised case of a major retail chain hiring a new CEO was followed a short time after by news of major retrenchments by the new CEO! This book is intended as an aid for those who wish to study and learn the basics of Human Resources and to act as a prompt for those wishing to write their own Human Resources manual - from the novice small business operator to Human Resource professionals. We currently have a combined range of more than 100 books, CD ROMs and Training Facilitators Manuals available, covering areas of business such as Business Administration, Business Planning, Finance, Human Resources, Management, Marketing, Sales and Small Business. Our books are distributed and published in three languages in a number of overseas countries. We also have a Training Facilitators Manual available on this topic. Finally, special thanks to all those people who have purchased our books - our customer list reads like a who’s who of Australian business. We welcome your feedback, comments and suggestions. Rodney Overton September 2007

Table of contents
1 Human Resource Planning and Development (H.R.P.D.)..........1 • What is Human Resources?.............................................................2 • The role of the Human Resources Manager.....................................3 • Human Resources Planning and Development (HRPD).................... 4 • Human Resource Policies.................................................................5 • Steps in the Human Resources process...................................... 6-8 • An organisation and its stakeholders...............................................9 • The politics of Human Resources...................................................10 • What should staff contribute to the business?.............................. 11 • Components of Human Resources........................................... 12-16 2 Recruitment, Induction and Integration................................... 17 • Staff recruitment.............................................................................18 • Basic requirements for recruitment................................................19 • Steps in the recruitment process................................................... 20 • Writing a Job Description................................................................21 • How to recruit and keep the best staff.....................................22-23 • The interview process................................................................... 24 • Some interview questions..............................................................25 • How to interview............................................................................26 • A 10 step hiring process................................................................27 • Body language................................................................................28 • Salary packages.............................................................................29 • An Interview Evaluation..................................................................30 • A press release - new personnel..................................................31 • Induction of new staff....................................................................32 • Internal integration.......................................................................... 33 • Planning for and managing replacement and restaffing...........34, 35 • Why do people fail?........................................................................36 • Disengagement interviews.............................................................37 • How to keep your staff interested................................................. 38 3 Organisations and people...........................................................39 • Mission statements.........................................................................40 • Communication................................................................................41 • Six steps to managing your career................................................ 42 • Meetings......................................................................................... 43 • Organisational structure.................................................................44 • Typology of organisations..............................................................45 • Bureaucracy...................................................................................46 • Managing change........................................................................... 47 • Executing change...........................................................................47 • Work cultures................................................................................. 49 • Company culture.......................................................................50, 51 • Cultural attributes............................................................................52 • Crisis Management......................................................................... 53 • Downsizing.....................................................................................54 • Some Peter Principles Occupational Health & Safety.....................55 • Discrimination..................................................................................56 • An employee handbook .................................................................57 • Code of conduct.............................................................................58 • Negotiation......................................................................................59 • Creative negotiation........................................................................60

• • • •

The process of negotiation.............................................................61 The negotiation conference............................................................62 Questions....................................................................................... 63 My Job - My Role............................................................................ 64

4 Leadership and Motivation.........................................................65 • Leadership ............................................................................... 66-69 • Empowerment.................................................................................69 • Future vision...................................................................................70 • Leading a team............................................................................... 72 • Motivation..................................................................................73, 74 • Maslow’s hierarchy of needs.........................................................75 • Motivation and needs......................................................................76 • Motivation by shareholding.............................................................77 • The people working for you will expect.........................................78 • Determinants of behaviour............................................................. 79 • Productivity and motivation.............................................................80 • Does your workplace suffer morale problems?.............................81 • Stress and work.............................................................................82 • What attributes do you require to be a workaholic?...................... 83 • Retaining scarce talent...................................................................84 • Leadership quiz..............................................................................85 5 Training and Evaluation................................................................86 • Competency Based Training...........................................................87 • Recognition of Prior Learning......................................................... 88 • Training Needs Analysis, Empowerment........................................89 • Evaluating personal strengths .......................................................90 • Setting personal goals and objectives............................................91 • Staff Appraisals............................................................................. 92 • A Performance Review..................................................................93 • A Rating Form for Management......................................................94 6 Case Studies................................................................................. 95 • An efficient office...........................................................................96 • The changing world of work..........................................................96 • Human Resources check list..........................................................97 • Economies of scale........................................................................ 98 • Community obligations and charities...............................................99 • State sales administration.............................................................100 • Some acronyms............................................................................101 • Interstate branches...................................................................... 102 • some people adages.................................................................... 103 • Personality attributes....................................................................104 • Determinants of personality..........................................................105 • Personality traits...........................................................................106 • Some euphemistic translations.....................................................107 • Rating your manager.................................................................... 108 • Are you a people person?............................................................109 • Some Mistakes Candidates Make at Job Interviews.............110, 111 Index.................................................................................................112

1 Human Resource Planning and Development

Managing Human Resources

What is Human Resources?
Human Resources (HR) - the people employed by an organisation and the use of their skills in that organisation - is readily acknowledged as the greatest resource that any organisation possesses. However, out of all the countless tasks in the management of your business operation, the management of people is arguably the most difficult aspect of any business and the cause of many problems. Human Resource issues can lead to tension, bad blood, arguments, disputes, cliques and them and us mentalities. The management of many organisations are proud to boast about their good Human Resource policies while at the same time they have their people offside. Their people are complaining to each other about the reserved car spaces for management, (to save the managers from having to walk an extra few metres), special toilets for staff and exclusive management dining rooms. Many organisations have no reserved car spaces. Those who arrive at work first get to choose their car spot. Conversely many very successful organisations claim a major reason for their success is their people. Human Resource managers should constantly ask themselves, “Why would someone want to come and work in this organisation?” Can you gain more from your people by empowering them? Can you increase the ability of your people to achieve by enhancing their self-esteem and improving their skill set?

A well established definition of Human Resources is:
Human Resources Management should be running their companies so people get more satisfaction from their work. HR Managers have a responsibility to recruit, develop and motivate a team to produce defined results. The greatest resource / asset of any business is its people. Your most precious possession is not your financial assets. Your most precious possession is the people you have working there, and what they carry around in their heads, and their ability to work together.

Robert Reich


1-Human Resource Planning and Development

The Role of the Human Resources Manager
An effective Human Resources Manager may be responsible for all of these areas, and many others as well: • Understanding the needs and requirements of management and the organisation. • Be responsible for Planning, Staffing, Directing and Controlling in the Human Resources area. • Provide and encourage a motivational environment. • Be responsible for hiring and training employees / staff. • Be responsible for providing job descriptions. • Be responsible for evaluating and comparing the performance of employees / staff. • Establish methods for reviewing performance. • Establish quantitative control standards. • Contribute to work force morale. • Co-ordinate other Human Resources functions. • Convene Human Resources meetings. • Be a spokesperson and figurehead for the organisation in Human Resource matters.


Managing Human Resources

Human Resource Planning and Development (HRPD)
Any company controls a portfolio of the most powerful tools for changing behaviour. Pay Promotion Training Job rotation Cross functional assignment Performance evaluation Supervision All of these areas are strong tools to modify behaviour. Some organisational goals in the management of Human Resources: Productivity Promotability Innovation and flexibility Special skills Can management define what behaviours it wants in order to accomplish certain goals? Without such a specification we will not accomplish very much! There can be little growth and development for employees at any level in a sick and stagnant organisation. It is in the best interests of both the individual and the organisation to have a healthy organisation that can provide opportunities for growth. What’s that? - a true story In our recent experience we encountered the Managing Director of an organisation employing around 50 people. This particular M.D. always took great pride in claiming (usually after the second round at the local bar) that he was the possessor of high levels of ‘people skills’. However when the phrase ‘Human Resources’ was introduced into the conversation his response was, ‘What’s that?’ Interestingly, after the next round of drinks, the same person spoke with some degree of pride and achievement about the ‘100 people I have fired in the last 3 years’.

1-Human Resource Planning and Development

Human Resource Policies
A variety of policies relating to the human resources of the organisation need to be developed and monitored, including: • Security of employment • Conditions of employment • Remuneration Pay scales and methods Pay arrangements Compensation and benefits Incentive schemes Superannuation policy and arrangements Performance-based remuneration Incentive programs • Retirement policy, terms and conditions • Health and safety of employees • Equal opportunity and affirmative action • Promotions and transfers • Discipline procedures • Grievance procedures • Absenteeism policies and procedures • Training and development of employees • Recruitment procedures and standards


Managing Human Resources

Steps in the Human Resources process
RECRUITMENT of staff using a job description and specification. TRAINING and INDUCTION of staff to acceptable levels. ASSIGNING of staff to a job or area with specific responsibilities, goals, objectives and targets. MOTIVATION of staff to achieve goals, objectives and targets. FORECASTING, MEASURING, COMPARING Forecasting future Human Resources requirements. Review and evaluation of staff performance against goals, objectives and targets. REVIEW and EVALUATION of staff performance for advancement and promotion and for setting levels of remuneration Human Resources involves a number of functions in areas including: SELECTION and PLACEMENT • Forecasting future staffing needs • Recruiting staff • Handling redundancies, retirements and termination's of employment • Relocating employees to other positions or locations TRAINING and DEVELOPMENT • Inducting new recruits to the organisation • Training and developing new employees • Determining the future competencies and skill mix required by the organisation • Training employees to meet current and future needs CAREER DEVELOPMENT • Ensuring that employees develop new skills • Ensuring that employees are challenged in their jobs • Maintaining and monitoring performance appraisal systems • Maintaining an up-to-date succession plan, particularly for key positions within the organisation LEGISLATION • Making required government returns, such as fringe benefits tax and equal opportunity reporting. • Ensuring and monitoring conformity with all employment legislation such as health and safety and equal opportunity.


1-Human Resource Planning and Development

POLICY FORMATION • A variety of policies relating to the human resources of the organisation need to be developed and monitored, including: • Security of employment • Conditions of employment • Pay scales and methods • Retirement policy, terms and conditions • Health and safety of employees • Equal opportunity and affirmative action • Promotions and transfers • Remuneration • Discipline procedures • Grievance procedures • Absenteeism policies and procedures • Training and development of employees • Recruitment procedures and standards EMPLOYEE RELATIONS • Negotiating and liaising with unions, employee representatives and employees on such areas as: • Legislative matters • Workforce restructuring • Industrial democracy • Enterprise bargaining • Pay awards • Employment contracts EMPLOYEE WELFARE • Ensuring the health, safety and welfare of all employees through organising or monitoring such things as: • Conditions of work • Provision of specialist crisis counselling, such as alcohol or drug abuse • Confidentiality of personal employee details REMUNERATION • Pay arrangements • Compensation and benefits • Incentive schemes • Superannuation policy and arrangements • Performance-based remuneration • Incentive programs

Managing Human Resources

ORGANISATIONAL DEVELOPMENT Designing and implementing organisation change initiatives Introducing organisation development and change programs, such as TQM, Benchmarking, ISO Certification, job redesign, enterprise bargaining Ensuring the organisation is structured in a way that will achieve its vision and objectives Implementing and overseeing internal communication programs MISCELLANEOUS In addition, personnel departments often undertake a variety of miscellaneous duties such as: Overseeing the company canteen Producing an employee newsletter or news video Making business-related travel arrangements for employees Overseeing the company nurse and doctor Liaising with outside consultants and organisations on personnel-related issues, such as arrangements for temporary staff, and making or recommending charitable contributions Managing and maintaining HR information systems (HRIS) Human Resources, People and Flight Centre Graham Turner, the Chief Executive of travel success story Flight Centre Ltd has this to say about the way his business is run. ‘Flight Centre does not sell travel the conventional way. Everyone is on meaningful profit-share incentives. It places considerable importance on people being able to earn whatever they put their mind to, through incentives that are not capped. People who work in the shops earn a profit based on their individual business; the team leader earns a profit on the whole business, and so on. Ownership is not just about profit share, but is about operating the business believing it is yours and not just the company’s. There are no privileges unless everyone has them. No company cars, no car parks, no secretaries, no individual offices, and no receptionists. Our structure is team bases. This is based on the inherent desire of the human race to live and work in families (teams of up to seven people), villages (3-5 teams) and tribes (100-300 people). Standard systems operate throughout the company. There is only one best way to do anything. If you have one small business operating successfully and you can systemise and replicate that business, there is no reason you cannot have 100 or more businesses operating successfully. Flight Centre believes that profit is the best way of knowing whether you are offering the community something it wants.’

1-Human Resource Planning and Development

An organisation and its Stakeholders





ORGANISATION The ultimate success of any organisation depends on a number of stakeholders being satisfied with the performance of that organisation. Balancing stakeholder satisfaction is very difficult to achieve, but the long term survival of any business depends on it. The illustration above shows six stakeholder groups, and their two-way dependency relationship with an organisation. Many people suggest that the best form of organisational performance is stakeholder satisfaction


Managing Human Resources

The Politics of Human Resources
The positive • Networking - develop contacts throughout your organisation and industry. • Continually promote and self market yourself in a positive, nonaggressive manner. • Be thoroughly professional in everything you do. Never let people down and be aware that people have very long memories. • Offer information freely without expecting favours - eventually your critical mass of goodwill will be returned. The negative • Never reinforce the failure of others to reinforce your cause. • Forget about ‘brown nosing’, posturing for the benefit of your peers. • Spreading rumours and sowing inaccurate information about people or circumstances is a definite no. • Never indulge in power plays, threaten to withhold or reveal critical information, build opposition or refuse to give support.

In the 1990’s well known business writer Max Walsh wrote in his Sydney Morning Herald column about an organisational disease which he called ‘the snake pit of organisational politics’. The cover-up routine is not confined to the top of the organisation. All employees soon learn that ... communicating to superiors should be done on the basis that new news is bad news. In the cover up process messengers are highly vulnerable and expendable.


1-Human Resource Planning and Development

What should Staff contribute to the Business?
Staff should: Provide value for money for the organisation. Improve co-operation and effective team working at all levels. Assist in achieving continuous levels improvement in quality and customer service Reward people fairly and consistently according to their contributions. Motivate other employees to achieve higher performance. Support managers and management in the achievement of their goals. Be an integrated part of the management process of the organisation. Continually improve competence and personal development. Be easily manageable, so that undue administrative burdens are not imposed on managers and staff. Be easily controllable so that policies can be implemented consistently and costs contained within budgets. Support the attainment of the organisation’s mission statement, and help improve the organisation’s effectiveness and competitiveness. Help to support and change the culture of the organisation as expressed through its performance, innovation, risk-taking, quality, flexibility and team working.


Managing Human Resources

Some Human Resource Components
OVERALL PLANNING COMPONENTS The function of these components is to ensure that the organisation has an adequate basis for selecting its human resources and developing them toward the fulfilment of organisational goals. STRATEGIC BUSINESS PLANNING To determine the organisation’s goals, priorities, future directions, products, market growth rate, geographical location, and organisation structure or design. JOB/ROLE PLANNING To determine what actually needs to be done at every level of the organisation. Often considered as a dynamic kind of job analysis, where continuing reviews of skills, knowledge, values etc., currently required and those required in the future are addressed.

The changing focus of Human Resources Not so many years ago people used to wear gloves at work to protect their hands: now they wear gloves to protect the product.

MANPOWER PLANNING and HUMAN RESOURCE INVENTORY These activities draw on the job descriptions generated in job planning and assess the capabilities of the present H.R. against those plans or requirements. They may be focused on the numbers of people in given categories and /or designed to ensure that given assumed growth there will be an adequate supply of people in those categories. STAFFING PROCESSES To ensure that the organisation acquires the necessary human resources to fulfil its goals. JOB ANALYSIS To specify what jobs need to be filled and identify the required skills. RECRUITMENT and SELECTION The process of finding people and developing systems for deciding who to hire. Part of this process is to communicate to prospective employees a basic understanding of the company and its approach to its people. INDUCTION, SOCIALISATION and INITIAL TRAINING After hiring, the new employee learns the ropes, learns how to get along in the organisation, how to work, how to fit in, how to master the particulars of the job and so on. The goal should be to facilitate the new employee becoming a productive and useful member of the organisation both in the short run and in terms of long range potential.

1-Human Resource Planning and Development

INVENTORY OF DEVELOPMENT PLANS An effort to plan for the growth and development of all employees. Can be done by department, division, or total organisation, by thinking through its implications and value to furthering future total development. JOB DESIGN and JOB ASSIGNMENT The issue is how to provide optimal challenge to a new employee, with a set of activities that are neither too hard nor too easy, and neither too meaningless nor too risky from the organisation’s point of view. Co-ordination between HR and the immediate supervisor in this situation should be maximised. DEVELOPMENT PLANNING How will long term employees who may stay 30 or 40 years in the organisation, make on-going contributions, remain motivated and productive, and maintain their job satisfaction? FOLLOW UP and EVALUATION OF DEVELOPMENT ACTIVITIES Devise a system to ensure that plans are implemented and that activities are evaluated against individual and organisational goals. CAREER DEVELOPMENT PROCESSES To match the organisation’s needs for work with the individual’s needs for a productive and satisfying work career. The system must provide some kind of forward movement for the employee through a succession of jobs, either by promotion or lateral movement to new functions or assignments. The system should be based on the organisation’s need to fill jobs as they open up and the employee’s needs to have some sense of progress in their working lives. SUPERVISION and COACHING It is generally accepted that the first boss is crucial in giving new employees a good start in their careers, and that training of supervisors in how to handle new employees is a valuable organisational investment. The actual process of supervising, guiding, coaching, and monitoring are considered to be important components. PERFORMANCE APPRAISAL and JUDGEMENT OF POTENTIAL These systems serve a number of functions - salary increases, promotions, and other formal organisational actions in respect to the employee.     Also a basis for regular reviews between boss and subordinate to supplement day to day feedback and to assist with career planning and counselling. Potential conflicts can arise as to what level of feed back the employee receives. Does management want the employee to know their potential for

Managing Human Resources

promotion? If individuals do not get good feedback around their development needs, they will remain uninvolved in their own development. ORGANISATIONAL REWARDS, PAY, BENEFITS, PERQUISITES, PROMOTION, RECOGNITION As organisational careers become more varied and as social values surrounding work change, reward systems should become more flexible. At different career stages and in different types of careers employees will need different ‘things’. How to ensure that the organisational rewards are linked to the needs of the individual and to the needs of the organisation for effective performance and development of potential. Managers should set goals and philosophies based on what the organisation is trying to reward and what employees needs actually are. Many companies have great difficulty addressing this area and use consistency and other organisations as models. PROMOTIONS and JOB CHANGES An effective HR system should concentrate on developing career paths, systems of job rotation, changing assignments, and lateral job moves to ensure growth of human resources. Evidence suggests that optimal challenge is what keeps human growth and effectiveness going, for most by promotion. TRAINING and DEVELOPMENT OPPORTUNITIES Companies should realise that periods of formal training, outside development programmes and other educational activities are necessary in the total process of human growth and development. They should be matched to the needs of the individual and the needs of the organisation. The individual wants to attend the course, because they can see a benefit in their career path and see that it fits into their total career. Training should, as much as possible be tied to job/role planning. CAREER COUNSELLING, PLANNING, FOLLOW UP and EVALUATION The organisation should provide a means for employees at all levels to become more proactive about their careers and a method for discussions. This should be linked to performance appraisal. Employees cannot manage their own growth development without information on how their own needs, talents, values and plans fit with opportunities the organisation can offer. Can the organisation open up the communication channel between employees, their bosses and the HR system, and lay the groundwork for realistic individual, development planning?

1-Human Resource Planning and Development

PLANNING FOR and MANAGING DISENGAGEMENT Organisations should recognise various options to deal with problems of loss of motivation, obsolescence, and ultimate retirement. CONTINUING EDUCATION and RETRAINING Is it better to provide challenging work, and then the training required for that work once the employee sees the need for it? For this strategy to work continuous feedback is required between employees and managers. JOB REDESIGN, ENRICHMENT and ROTATION After a few years of employment many workers become unresponsive to the job requirements and pay more attention to factors such as the type of supervision, relationships with other workers, pay and many other issues. Rather than attempting to ‘cure’ levelled off employees by remotivation, job redesign or rotation perhaps they should examine whether these employees are in responsive mode or not. Conversely there is nothing wrong with less motivated and involved employees if the quality of their work meets the required standards. ALTERNATIVE PATTERNS OF WORK and REWARDS Rostered days off, flexible working hours, part time work, job sharing, child care programmes, are just a few examples. They should cater for the needs of the organisation as well as the employee and be closely linked to each other. PERSONAL IMPROVEMENT PROGRAMMES (P.I.P.) Is it desirable to design a special, personalised programme for all or some employees? RETIREMENT PLANNING and COUNSELLING There should be a clear planning function that forecasts retirements and feeds this information into replacement and counselling functions. Psychological, mechanical and financial assistance should be provided, by skilled, specialist counsellors. Managers should be trained in handling preretirement employees. "People" are the key to business success, as most people realise. But "people" as a success factor is like the weather - everybody talks about it, but no one does anything about it. Legendary former GE Chairman Jack Welch makes an interesting point that, while GE aspires to be No.1 or No. 2 in every market it competes in, Welch claims that their core competence is developing people. GE and a few other big companies have cultures that strongly encourage effective management and people development, but in the vast majority of

Managing Human Resources

companies, that does not happen. Here are a few key truths about people as a success factor which may be helpful for you: That which gets reinforced gets repeated. Michael LeBoeuf a few years ago wrote a book called, The Greatest Management Principle in the World, and that is his key point. The reinforcement principle of behaviourism was discovered by B.F. Skinner and has been rejected by some people because it applies as much to rats in a cage as it does to humans. And guess what? It works just as well on both (including kids). If you want somebody to repeat a behaviour, reinforce it with some type of reward that they will appreciate. Consistency is extremely important. You cannot not communicate. That axiom, from The Pragmatics of Human Communication, refers to the fact that not communicating with someone says to them, "I don't care about you." Studies of non-managerial employees usually find that they consider internal communication to be inadequate. Managers get busy putting out fires and trying to be sure clients' needs are met, and they forget the importance of communicating with everyone about what's going on with the company. They may rationalise that, "I’m in charge and I know what I'm doing," but all the employees see is the stone wall of silence. People want to know what is going on and how it does or will affect them, and you cannot overdo that. It shows people you care about them. Not communicating says you don't care about them, even if you really do. The most effective communication is always face to face. Face time says "I care about you" like nothing else. Avoid e-mails or memos for any information which might be misunderstood or possibly construed as negative. If you want it done, ask the doers. Before initiating change or "improvements," let the people who will be responsible for implementation have a say in the way the changes will be handled. That is obvious but so often not done. Even if you go against their preferences, they appreciate being heard, respect you for asking, and will be more likely to follow whatever the outcome. If you do not ask, it is amazing how people can resist in many subtle ways that ultimately sabotage the outcome. When you ask for people's input, respond quickly. You do not have to do what they ask. But employee emotions are extremely time sensitive. You lift their hopes when you seek their input, and if you act on that input, you sustain their enthusiasm and energies. If you wait too long, the emotional peak passes and you will not have another chance like that for a long time. This is one reason GE has been so successful with their "workout" sessions. Everyone involved gets in one room and one manager is in charge. Discussion focuses on one problem. No one leaves the room until the top manager decides what action will be taken on the problem. The decision may be to act now or to delegate the problem to a task force if more information is essential, but some action is always taken. This is one way GE keeps their people "electrified" and loyal.

2 Recruitment, Induction, Integration

Managing Human Resources

Staff Recruitment
Selection - Training - Supervision These three items, Selection, Training, and Supervision are the absolute corner stones of good Human Resources management. These are the true basics and without them nothing in Human Resources management is possible. MOTIVATION Motivation is the roof and spire of the building. Roofs and spires don’t stand on air, they stand on solid foundations, and in good management the solid foundation stones are: SELECTION TRAINING SUPERVISION Individuals as a rule tend to have a far different perception of motivating factors than does management, as to what really motivates them.

Why is it important to take great care in filling a job vacancy? • To benefit the company • To avoid the expense of having to hire a replacement after a short time • To increase profits • To create a team work atmosphere • The wrong person may create disharmony • The right person will do the job better • To raise levels of professionalism.

Three major considerations in the selection process: 1. Does the candidate have the appropriate aptitudes, skills, qualifications and experience to do the job? 2. Does the candidate have the appropriate attitude to accomplish the task and fit in with the team in a positive, co-operative manner? 3. What is the candidates time frame? Short, medium or long term? Will they last and show resilience?


2-Recruitment, Induction, Integration

Some basic requirements for good recruitment include:
The recruitment of the correct number of people to meet the sales and overall objectives. The reduction of staff turnover by the correct selection of suitable people. The maximisation of the return to the company of the investment made in the employee. The maximum use of management time in pro-active, productive activity rather than ‘putting out fires’. Building and maintaining long-term stable relationships with customers. To minimise the problems which can be inherent in recruitment and employment. Maintaining of a high level of responsibility by management for employees / staff.

In order to achieve these aims the organisation will be faced with a number of problems: Defining the nature of the job and determining how many people will be required to do it. Determining the type of person required to do the job. Deciding where responsibilities for recruitment and appraisal will lie. Providing a workable job description.

The four E’s of recruiting people: People must have: 1. Plenty of energy 2. Be able to energise others 3. Have a competitive edge that gives them the will to win and makes them unafraid of embarking on tough courses. 4. To be able to execute by setting a vision, carrying out operational plans and coming up with the numbers


Managing Human Resources

Steps in the Recruitment Process
• Analysing the tasks of the position - and writing a person description. • What type of person would be best? • What skills, qualifications and experience will be required? • Preparation of a job description - ideally this should be presented to candidates at the first interview. • Identifying sources of talent - where can we find an ideal person? By head hunting, by advertising, by internal promotion? • Call for applications - phone or written. • Screening the applications - do the applicants meet our person specification? • Preparing a short list. • Interviewing the candidates - who should interview? The Human Resources person, the Sales Manager, a committee? • Second and third interviews may be required. • Checking references of those preferred. • Psychological testing. • Offering the job and negotiating terms and conditions. • The induction process. • Training and retraining the person • Evaluating the training. • Review and evaluation of effectiveness. • Promotion or transfer.


2-Recruitment, Induction, Integration

Writing a Job Description
An essential ingredient for successfully hiring any employee is a Job Description. The Job Description should be based on a detailed job analysis and be as factual and brief as possible. Some commonly used headings are:JOB TITLE The existing or proposed job title indicates as clearly as possible the function in which the job is carried out and the level of the job within that function. REPORTING TO The title of the manager or superior to whom the job holder is directly responsible is given under this heading. The job titles of all the posts reporting directly to the job holder are given under this heading. OVERALL RESPONSIBILITIES This section describes as concisely as possible the overall purpose of the job. The aim being to convey in a few sentences a broad picture of the job which will clearly identify it from other jobs and establish the role of the job holder. MAIN TASKS: Some suggestions for identifying the main tasks: • Identify and list the tasks that have to be carried out. No attempt is made to describe in detail how they are carried out, but some indication is given of the purpose or objectives of each task. • Analyse the initial list of tasks and simplify the list by grouping related tasks together so that not more than, say, 7 or 8 main activity areas remain. • Decide on the order in which tasks should be described, such as: • Frequency (hourly, daily, weekly, continually, etc.), chronological order, order of importance, and the processes of management that are carried out, setting objectives, planning, organising, co-ordinating, operating, directing and motivating staff and controlling. • Describe each main task briefly and separately in short numbered paragraphs. Many people start paragraphs with an active verb; e.g. supervises, ensures that, prepares, completes, recommends, liaises with. • State what is done as succinctly as possible and why it is done, thus indicating the purpose of the job and giving a lead for setting targets and performance standards. PERFORMANCE MEASURES How will the performance of the person be measured? Obviously very important for sales positions.

Managing Human Resources

How to recruit and keep the best staff
1 HIRE THE BEST Your success depends upon your staff. Look for intelligence, initiative and integrity in everyone you employ. Tell everyone that you expect their absolute best. 2 DON’T PAY PEANUTS Don’t pay peanuts unless you want monkeys. Reward your employees both financially and emotionally. Pay over the market rate and expect more. Acknowledge each person’s contribution to your success. Most people would rather feel needed and respected than be given a pay increase. Say thank you. 3 BUILD A TEAM Let each employee know they are a valuable member of the team. Show them where they fit in the system that produces the final result. Trust them to do their job. Don’t let your ego get in the way of the team performance. 4 HAVE A BACK-UP Everybody should be able to do at least two jobs in the company, preferably three. Three staff should be able to do the critical tasks. 5 SHOW YOU CAN DO IT Know how to do every job in your organisation. If you can show an employee that you have taken the time to learn their job, you show that you think the job is worthwhile. You can also act as a back up. 6 DELEGATE Do what you do best and delegate the rest. Give your staff the responsibility and authority to do their jobs - and let them do it! Give encouragement. Retain the ultimate authority though. 7 COMMUNICATE Talk to your staff and ask for their suggestions. The two groups who have the best information on your business and its performance are your staff and your customers. You should listen to both groups very closely.


2-Recruitment, Induction, Integration

8 ENCOURAGE PRIDE Show pride in your company and its products and encourage others to take pride in their work. Set a high example. Don’t accept second best personally or your staff will follow your lead. 9 ENCOURAGE CREATIVITY Meet with your staff at least once a month for a brainstorming session. Get suggestions on how to improve your product, service, customer satisfaction or profit. Reward ideas that work. Encourage on-going commitment. 10 HAVE A SECOND-IN-COMMAND Groom a deputy who shares your goals and ideas. Let your staff know that your deputy has your confidence and your authority when you are absent. Then go on holidays to test the system.

Three major considerations in the selection process:
1. Does the candidate have the appropriate aptitudes, skills, qualifications and experience to do the job? 2. Does the candidate have the appropriate attitude to accomplish the task and fit in with the team in a positive, co-operative manner? 3. What is the candidates time frame? Short, medium or long term? Will they last and show resilience?


Managing Human Resources

The Interview Process
Personal interviews are an important part of the selection process. Because of time involved managers should only be meeting with people who seem qualified to fill the vacant position. First line managers should be involved in the selection process of people who will work under them to increase the probability that the person selected will be someone able to relate to their immediate superior, a person who will have a commitment to getting the newcomer trained and integrated into the work group as quickly as possible. It will also assist in the first line manager to become aware of the criteria adopted for selection and the overall rationale used. Interviews should not be ad hoc. They should be carefully planned to provide the best results.

Interviewers should ensure that: Questions are not discriminatory to certain groups of applicants. Questions are not ambiguous and are designed to gather information relevant to the position applied for. The interview process is consistent for all applicants. Where possible an independent person should be part of the interview panel to assist in ensuring consistency and lack of bias. The interview should relate to work issues and should not infringe the personal rights of applicants. Notes are taken for future reference and applicants are ranked according to predetermined criteria. The interview process is as relaxed as possible and applicants are given ample opportunity to answer questions.


2-Recruitment, Induction, Integration

The Interview Process
Some suggested interview questions • When dealing with a direct report, team member or peer, how have you determined when you were pushing too hard? • Give me an example of when this happened. • Describe a complicated task that you have had difficulty teaching someone to perform. • What approach did you take? • Why were you successful? • Tell me about a time when there was not much room for creativity in your work. • How satisfied were you in that situation and why? • Describe a face-to-face meeting in which you had to lead or influence a very sensitive individual. • Give me an example of a good decision you made recently. • What were the alternatives you considered? • Why was it a good decision?

Now that we have established KWALITY CONTROL please THINK AHEA D


Managing Human Resources

How to Interview - some suggestions
Before the interview know what you are looking for • Prepare a list of features you are looking for. • The interview begins the moment the other person walks in the door. Pay attention to your first impression. Ask yourself how you feel in the other person’s presence. Ask yourself why you feel this way. • Look at the other person’s appearance. Consider their sense of style. • Do they feel comfortable with their style or is it for impression? • Is this person reaching or are they understated? • If you are hiring someone to project the company image, every aspect of their appearance is important, including taste in clothes, firmness and dryness of handshake, confidence projected and tone of voice. • Allow the other person to talk. Avoid dominating the interview, or setting rigid goals. • Let it be the other person’s interview. Be patient and take your time to discover the other person. Try to get an idea of the other person’s thinking. • The best way to make people feel comfortable is to respond positively every time they do well. Remember you are trying to see how the other person functions at their best. Some people don’t function well under stress and any interview situation unnerves them. With such people, it is useful to bring up strengths in their resume. • Look for something about the other person you like and mention it. Smile! • Make positive comments like,’ yes, good, exactly, of course, I see and I agree’, and act positively. Nod agreement. Be appreciative, sincere, and listen. • Once the other person starts to talk, let them. • Ask, ‘What happened here?’ and observe how the interviewee responds. • Consider how this person makes you feel. • Do you like being with them? • What contribution do you think this person would make to the mood of the people around them? • Ask yourself what it would be like to work with this person on a daily basis. • Would it be depressing, inspiring, boring, a drain, or a privilege? • What is the feeling the other person projects - optimism or defeat? • Is this person really interested in their work? • Do they have a strong sense of industry? • Will they enhance the productivity of the workplace? • Would you feel comfortable going to lunch with this person? • Are they socially aware, poised, and confident? • Do you feel any embarrassment for them or being with them?

2-Recruitment, Induction, Integration

A Ten Step Hiring Process
Below is a hiring process which will obviously not suit all organisations. It will require considerable amounts of time and effort, but should ensure a quality candidate. 1. The candidate is invited over for an interview. The personnel manager should be able to identify what management is looking for and be secure enough not to screen out unusual or intimidating candidates. 2. The candidate is invited over for a number of follow up interviews. The interviewers discuss their findings and make a specific hire / reject recommendation with reasons why. 3. The C.E.O. talks with the candidate for 30 minutes. They talk to the C.E.O. for 30 minutes. Let the candidate talk and not be bombarded by the C.E.O. talking about his success. 4. The C.E.O. talks with the candidate on the phone for 30 minutes. Can the person, project, persuade and communicate clearly over the phone? 5. The C.E.O. talks with some outside sources. Check out the candidate in the Industry. Who knows or should know about this person? 6. The C.E.O. talks with the candidate in their home in the presence of their wife and children. See the candidate’s personal values at work in the most revealing setting. Also a good integrity test. Does the home life match the description in the interview? 7. The C.E.O. socialises with the candidate in a different environment. Is the candidate a music or movie buff? Off to the concert hall or theatre with the candidate and spouse. How does this person act in a social setting? Especially important for sales people as they need to be their most skilful and persuasive. 8. The candidate sees 2 or 3 of the C.E.O.s peers in other, non competitive companies in the town. The visits are brief and need to be reciprocated by reviewing the peer’s candidates in turn. 9. A trip to the Master. Every city has a master of profession - master controller, master purchasing agent, master executive secretary etc. The successful candidate has to pass muster with the master. Make a point of knowing the masters - their leads can be a good way to find candidates in the first place. 10. A trip to the counsellor. The industrial psychologist’s analysis is often enlightening but never binding. It is usually most helpful in addressing some-one’s strengths or weaknesses after you hire them.


Managing Human Resources

Body Language
Many skilled interviewers make a special point of studying the body language of the people being interviewed. It can provide an insight into the interviewee.
Clammy handshake Steepling of hands Downcast eyes Face turned away Relaxed mouth, chin forward Poker face Mouth open Two people looking at each other Nervousness Confidence Negative view Negative view Positive acceptance Holding something back Shock, or intense concentration More interested in the other person than you Cocky, goal orientated Critical, secretive Bursts of energy Pre occupied Sincerity Defensive Domineering Settlement less likely Evaluation, deep thought Distant, critical Relaxed aggressiveness Puzzlement Self control Interested Nervous, holding back feelings Attracted, but unconvinced Frustration Anxious, needs reassurance Ready to go

Rapid walk, arms swinging Walking with hands in pockets Walking with hands on hips Walking with hands behind back Open hands Arms crossed Straddling a chair Crossed legs Hand to cheek Body drawn back Hands behind head Rubbing nose Hands closed in front Head inclined Locked ankles Sitting back with legs crossed Hand to back of neck Playing with tie, ring, etc. Leaning forward It is generally accepted that:

• 55% of a negotiator’s message is perceived non verbally • Only 7% depends on what is said • And 38% depends on how it is said

2-Recruitment, Induction, Integration

Salary Packages
The total value of an employment package can comprise provision of some of the following perquisites and / or other items. The total cost to the employer when totalled will give a ‘package value’. BASE WAGE / SALARY BONUS PERFORMANCE INCENTIVES SHARE OPTIONS SUPER-ANNUATION USE OF A VEHICLE TELEPHONE - PRIVATE HOUSING PERSONAL and FAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE ACCOUNT CLOTHING ALLOWANCE OTHERS


Managing Human Resources

An Interview Evaluation
After the interview the following summary could be a useful assessment: Ranking Appearance Personality Maturity Aptitude Objectives Experience Education Overall assessment Others . . . . . . Total 1, 2, 3, 4, 5, 6, 7, 8, 9, 10


2-Recruitment, Induction, Integration

A Press Release for New Personnel
• Use this press release to take advantage of the opportunity that hiring a new employee offers. • You need not use a cover letter when mailing a press release. • Just remember to fold it so the headline appears when it is removed from the envelope. For Immediate Release Contact's name Contact's phone number Contact's fax number Company Promotes Name to Title City, State Date Name has been promoted to title at company, the people who offer/ develop/ create (short company profile) with offices in ........ S/he will be responsible for primary responsibility. "Quote showing person's productivity or worth to company”, said spokesperson's name, spokesperson's title of company. Name joined company in year as title. Prior to joining company, s/he held positions of ....... at (.......) where s/he was responsible for ....... Previously, ....... worked for ....... as ....... where s/he was responsible for ........ This should include positions with high visibility in well-known companies, if this is pertinent to the position and reflects well upon both companies. "Quote showing person's dedication, commitment and / or ideas," said name earned a type and level of degree from ......., honours, if any. Specify degrees, honours, and association affiliations, as well as universities attended. ....... lives in ....... specify city or neighbourhood only, with ....... and their (number of) children. Avoid specific information about the children that may jeopardise their safety. If the person is in a position that could invite sensational publicity, keep personal details to a minimum. Quote the person or a company official on this personnel change. The quote should address the way this promotion will contribute to the company achieving its goals. If you distribute the press release to your vendors, customers, board members, stockholders and employees, a quote may help add credibility and build morale.

Managing Human Resources

Induction of New Staff
New staff should be made to feel welcome to the business right from the outset, and special consideration should be given to their questions and needs until they become familiar with day to day procedures. The induction process should allow the Human Resources Manager, and the appropriate supervisor the opportunity to gain information about the new recruit and introduce them to the company and the rest of the team. The recruit should be made comfortable working with the rest of the team and be ready to contribute results as soon as possible. Training based on the Job Description should be an important part of the Induction period. Further Training in learning about the company’s products and systems is part of the Induction process. NEW STAFF SHOULD BE GIVEN AND / OR MADE FAMILIAR WITH: • A LETTER of ENGAGEMENT detailing pertinent and relevant terms and conditions of employment, such as:• Wages are paid weekly / fort nightly etc. • Wages are paid in cash / to a bank account. • You are employed on a daily / weekly / casual / permanent basis. • You are on employed on a trial / probationary period or basis. • A list of staff names, positions and responsibilities of other staff in the firm. • Keys or passes for access to buildings. • Details of office or business hours. • Details of EEO and OH&S policies • Payroll procedures. Holiday Policy. Sick leave policy. • Travel or meal reimbursement policies. • Staff procedures. Staff evaluation policy. • Time reporting policy. • Use of telephone. • Mail and filing room procedures. • Use of office equipment in general. • Details of publications available to the staff member. • Ensure a meeting on the first day. • Have a work area and materials prepared. • Visits to various sections for orientation. • Meetings with various key people. • Product training. • For sales representatives, a visit to the sales territory with sales manager or mentor. • Regular communication for first weeks.

2-Recruitment, Induction, Integration

Internal Integration Problems
Matching People to Business Conditions A group or organisation cannot survive if it cannot manage itself as a group. External survival and internal integration problems are therefore, two sides of the same coin. Every organisation will have different solutions to these problems and face different issues. Usually the solutions will reflect the biases of the founders and current leaders, the prior experiences of group members, and the actual events experienced, with the experiences of each organisational culture being unique, even though the underlying issues around which the culture is formed will be common. Does the organisational culture reflect, in a patterned way the nature of the underlying technology, the age of the organisation, and the nature of the parent culture within which the organisation evolves? LANGUAGE Common language and conceptual categories. If members cannot communicate with and understand each other, a group is impossible by definition. BOUNDARIES Consensus on group boundaries and criteria for inclusion and exclusion. One of the most important areas of culture is the shared consensus on who is in, who is out, and by what criteria one determines membership. POWER and STATUS Consensus on criteria for the allocation of power and status. Every organisation must work out its pecking order and its rules for how one gets, maintains and loses power. This area of consensus is crucial in helping members manage their own feelings of aggression. INTIMACY Consensus on criteria for intimacy, friendship and love. Every organisation must work out its rules of the game for peer relationships, for relationships between the sexes, and for the manner in which openness and intimacy are to be handled in the context of managing the organisation’s tasks. REWARDS AND PUNISHMENTS Consensus on criteria for allocation of rewards and punishments. Every group must know what its heroic and sinful behaviours are; what gets rewarded with property, status, and power; and what gets punished through the withdrawal of rewards, and ultimately excommunication.


Managing Human Resources

IDEOLOGY Consensus on ideology and ‘religion.’ Every organisation, like society, faces unexplainable events that must be given meaning, so that members can respond to them and avoid the anxiety of dealing with the unexplainable and uncontrollable. MANAGEMENT IS CONSIDERED A ‘MYSTERIOUS’ ACT A great number of executives feel that management, especially at senior levels, is mysterious and defies objective analysis. Some critical elements, such as a manager’s ‘style’ and the degree to which he ‘fits in’ with his colleagues, are too abstract to be measured and too sensitive to be identified explicitly. Rather, a manager just gets a sense of all these factors and makes decisions accordingly. PROMOTION IS CONSIDERED A ‘JUST REWARD’ There is little question that the nature of jobs changes as one moves up the ladder - the best salesman seldom makes the best sales manager. The pressure though is to reward performance with promotion. In most organisations, objective rewards are still largely hierarchically based, and many managers feel that they have very little choice but to promote their best performers, or they risk demoralising them or losing them to competitors. COMPATIBILITY WITH PEOPLE, NOT JOBS There seems to be a pervasive desire for people to surround themselves with individuals of similar kind. As a consequence, the selection process is often less one of matching candidates with job requirements. LACK OF SKILL Hiring subordinates is a skill an executive is expected to posses by virtue of his or her position. Consequently, executives are rarely trained in selection, and only a few executives are naturally gifted in this area. Furthermore, since selection is always time consuming and often tedious, it may get short shrift, despite its importance. BELIEF IN THE ‘UNIVERSAL MANAGER’ For many years, executives believed that a good manager can handle any situation, irrespective of its idiosyncratic demands. Growth businesses are those that are more mature and seen as minor variations of a common theme, rather than as specialised business problems that create particular demands on the management in place. Consequently, senior executives have often tended to search for ‘universal managers’, rather than those who are more specialised.


2-Recruitment, Induction, Integration

Planning for and Managing Replacement and Restaffing
Human Resource Planning and Development (HRPD) should address issues such as: • Updating the human resource inventory as retirements or termination's occur. • Instituting special programmes of orientation or training for new incumbents to specific jobs as these jobs open up. • Managing the Information System (I.S.) on what jobs are available and determining how to match this information to the Human Resources available in order to determine whether to replace from within the organisation or to go outside with a new recruiting programme. • Continuously reanalysing jobs to ensure that the new incumbent is properly prepared for what the job now requires and will require in the future. • The management of these processes are linked to other parts of the system through implicit messages that are sent to employees. For example if the company decides to display all its vacancies ‘in house’, it is sending a clear message that supports internal recruitment and self development activities. • A company that manages its recruitment in a secretive manner may be sending a message to employees that the company is passive and complacent about their careers, because the employees are unable to influence them in any way. • Planning activities should be closely linked to the processes of supervision, job assignment, training etc., and those processes should be designed to match the needs of the organisation with the needs of employees throughout their evolving careers, even though these careers may not involve promotions. • The various components should be linked to each other, and be seen as a total system for maximum effectiveness, and be managed to ensure coordination between the planning functions and implementation functions. • Accountabilities will rest squarely with supervisors and management, who will control the rewards and opportunities. • Regardless of who designs and manages the HRPD programme or system, the ultimate goal should be that the HRPD programme be ‘owned’ by middle management.


Managing Human Resources

Why do People Fail?
Some common reasons in their order of frequency, for why people fail are: They do not know what they are supposed to do They do not know how to do it. They do not know why they should do it. There are obstacles beyond their control. They do not think it will work. They think that their way is better. They have a poor attitude and / or lack motivation They lacked the skills to do the job. There was not enough time to do it. They were working to the wrong priorities They thought that they were doing it Poor management Personal problems

What are barriers to people embracing and engaging in creative activities? We have always done it this way. Why risk changing the status quo with the inherent risks of failure?


Fear + ignorance = prejudice ‘That would never work here, and, we just don’t do things like that’.

The best way of all to overcome creativity!


2-Recruitment, Induction, Integration

Disengagement Interviews
What do you do when people resign? It is quite amazing just how few organisations carry out ‘debriefings’ when people resign from their organisation. Enlightened thinking suggests that this is an opportune time to gather valuable feedback about the organisation, its policies, goals and people. Some suggested questions for obtaining feedback might be: What are your long term goals? Why are you leaving at this time? What did you most enjoy about working here? What was disappointing about working here? How do your family relate to your work? Why did you choose to work here? What does your new position offer, that outweighs those available here? Was the training you received here of benefit to you? How could our organisation have helped you more? Are you disappointed in this organisation, and your achievements here? According to data supplied by the federal government 22% of the national workforce left their jobs in the year 2000. Exit interviews should be conducted by all organisations when people leave to go and work elsewhere. They present an ideal opportunity for the organisation to receive meaningful feedback about itself and to learn what has triggered a resignation. Attracting highly skilled staff is very difficult and most organisations are keen to learn the reasons why people are resigning, such as lack of training and career development, or burn out. Good exit interviews can make the work environment a better place for those who follow. For many people who are leaving there is a huge temptation to relieve years of frustration by being absolutely frank about the reasons for leaving - often people problems. For those who are leaving, steering away from being brutally frank is probably the best course of action. Give honest feedback, but do not make it personal. Resist the temptation to be vindictive, but never burn your bridges. Tackle the issues, not the person. If someone has been a poor manager, then say that would be a better manager with more training. Exit interviews should obviously be conducted by someone other than the person’s immediate supervisor to assure there is no bias and to ensure absolute confidentiality. In Australia the Bureau of Statistics is very proud of its low staff turnover rate - just 8.4% of more than 3,200 staff in a recent survey, while conversely call centres average a 36% staff turnover rate.

Managing Human Resources

How to keep your staff interested
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Provide a variety of work - job rotation and projects Ensure opportunities for growth, learning and promotion Recognise good work Encourage your staff to take chances and to ‘take risks’ to broaden their point of reference Involve your staff in the ‘big picture’ - keep staff informed about what the business is achieving and trying to achieve Encourage and reward contributions by staff Give staff leaders to work with - not managers Reward staff as individuals Encourage and have a team environment Provide a work environment that balances work and personal life

How to lose your staff 1. Salary paid is different to what was offered at the interview 2. ‘Forget’ salary reviews 3. Feedback consists of ‘you did this wrong’ 4. Running the business like a dictatorship 5. Not providing opportunities for ongoing staff training 6. A ‘do as I say, not do as I do’ work environment 7. A technologically backward work place 8. Lack of planning 9. Pressure to complete work on time and then the leader or manager fails to review the job for weeks 10. A ‘school’ approach to hours A MANAGER • A manager is someone who manages people. • They succeed because of empathy, patience, knowledge, restraint and courage. • They fail because of inexperience, ignorance, intolerance, fear or simply because of circumstances which were too much against them. • No person is identical to another person and since no people problems are identical there is no standard formula for solving people problems, and every manager will have their own unique style anyway.


3 Organisations and People

Managing Human Resources

A Mission Statement - What is it?
Does your organisation have a Mission Statement? Could Human Resource issues be addressed more readily if you did have a Mission Statement? All members of the organisation should focus on, and believe in that statement and vision, and set out to achieve that vision. The statement and vision should be founded on a set of values held by all members of the company. You will need to start by establishing the values of your organisation, and then develop and deploy the statement and vision throughout your organisation. What are the basic requirements of a meaningful mission statement? The components to help make a mission / vision useful and valid could include: A focused concept - something beyond platitudes. A value creation premise that people can actually picture as existing. A sense of worthwhile purpose - something that is really worth doing, something that can create value, make a contribution, make the world a better place in some way and win people’s commitment. A plausible chance of success - something people can realistically believe to be possible and, if not perfectly attainable, at least plausible to strive for. A very good real life example of a Mission Statement is this one from the Department of Administrative Services [D.A.S.]: ‘To be recognised by our customers and the government as Australia’s best provider of services and a leader in public sector reform’. Another excellent example which I noticed in the employment columns of a newspaper, is from the South Australian Film Corporation: ‘We will stimulate and assist the film and video industry and community to achieve sustained economic and cultural benefits that are valued by the people of South Australia’. Further the mission statement should define: The Customer - defined not in terms of some market segment or statistical category, but in terms of a basic defining need premise that leads that person [or entity] to consider doing business with your enterprise. The value premise - defined not in terms of what your organisation does, makes, sells, or delivers, but in terms of the fundamental value it represents in matching the customers need premise. What makes you special - your special means for creating value, in order to win and keep the customer’s business.

3-Organisations and People

Communication and Human Resources
What is Business Communication? Human Resource skills involve high levels of business communication skills. They are irretrievably linked. Business communication covers many facets and can include: Being aware of non verbal behaviour - over 50 percent of a message is perceived non verbally. Effective meeting skills. The ability to influence and persuade others. Motivating others. Listening. Questioning. Providing feedback to others. Seeking out and listening to feedback about yourself. Seeking out and processing information. The ability to select appropriate methods of interfacing with others. Selling and representing your work mates and work place to others. Selling and representing your self to others. Communication is used to address issues such as: How When What Why Who Where Open questions can be prefixed with any of these six words. An open question will cause the person the question is directed at, to answer with more than a straight out yes or no answer, and open the channels of communication. Business communication is, consulting, persuading, and convincing. Communication is about getting through and being understood. On the first day on the job as the new manager, the new person called a meeting of his staff and had this to say. ‘Now it is essential that we work as a team. If we work as a team we can accomplish a lot. Don’t forget though, I expect you to do exactly as I say and to follow my instructions in your work as a team.’

Managing Human Resources

Six Steps to Managing Your Career
1 SELF ASSESSMENT List your transferable skills, needs, values, interests and achievements to date. List employment likes and dislikes and your reasons for them. 2 INTERPRETING DATA Consult your mentor and/or career counsellor and/or significant other in your life. Summarise your preferred skills. Develop a list of possible career action steps which could provide opportunities for improved worklife satisfaction. 3 OPPORTUNITY AWARENESS Explore one or more jobs and gather information. List discarded options, and your reasons for discarding them. 4 DECISION LEARNING Make decisions based on what you have learnt. Decide how you will get to where you want to be. 5 TRANSITION TRAINING Produce a thoroughly written version of your career transition strategy and discuss it and its rationale with your counsellor, mentor, and/or significant other. 6 TRANSITION ACCOMPLISHED Get out the champagne. When you take control Discover from your new staff how they tackle their own jobs. Get proposals from them on how working can be improved and what they would like to see done. Make sure that at least some of these are put into practice for the sake of morale, if for nothing else. Discover the extent and the limits of your own authority. Discover what is regarded as the essential purpose of your job. Get clear success criteria. These should relate not only to the job’s result, but how you do it.


3-Organisations and People

Why do people resist meetings?
Meetings use more collective time to perform a simple task than any individual would use. Participation groups can be frustrating for those who don’t get what they want. People may be forced to associate with colleagues they would rather avoid. Group work dissipates the glory any individual would have received for doing a good job. Committees can encourage controversy or conflict. Groups can make the simple complex. Hence the expression, “a camel is a horse designed by a committee.” Committees are frequently used to postpone work or to avoid facing a controversial problem. (Lets delegate that to a committee) Meetings can put individuals on the spot by pressuring them to state opinions publicly. Groups can lessen personal accountability for work. Group assignments can foster unequal workloads that are a fertile ground for resentment and lowered morale. Meetings are often just plain boring, especially for those who already know the material being covered, or for those who operate at a higher pace than others. Meetings and Teamthink Teamwork at meetings can increase creativity. A team approach should synergise thought. Participants stimulate one another, so that the whole becomes far greater than the sum of the parts. Team work can reduce resistance to change by encouraging those who implement a program to feel allegiance to it. A good way to invite commitment is to ask for involvement in the planning of any project. Participation groups can be frustrating for those who don’t get what they want. Spread workload so that more gets done. Improve planning. A critical group, with numerous viewpoints, is less likely to miss an important contingency than is a person working alone. Foster more satisfying work relationships, as people get to work in a positive, productive manner with peers.

Managing Human Resources

Organisational Structure
Old and new paradigms OLD STRUCTURE SPAN OF CONTROL COMMUNICATION DECISION MAKING Tall Narrow Downward Autocratic NEW Flat Wide Multi directional Democratic, participatory Collaborative Groups, teams


Competitive Departments, assembly lines Specialisation, divisions Sequential Official position


Multi skilling


Simultaneous Expertise, skills in hierarchy Low Internal, within groups upon individuals Merit, group


High External,




3-Organisations and People

What goals do organisations have?

Typology of organisations



Replicating standard and uniform products

Highly mechanised factories etc.

Number of products

Problem solving

Creating new ideas

Research organisations Design and Engineering Consulting organisations

Number of ideas


Changing people’s habits, attitudes, intellect, and physical and mental behaviour

Universities Prisons Hospitals etc.

Number of people leaving


Distributing services either directly to consumer or to above types

Military Government Advertising Taxi companies

Extent of services performed


Managing Human Resources

A definition of bureaucracy might be: A business, or any institution, that exists to carry out an organisation. Or: Any company giving less than two-thirds of its energies to its business, and more than one-third of its energies to its organisation. Mediocrity in a bureaucracy exists, when the penalty for success gets to be as big as the reward for failure. CHARACTERISTICS of BUREAUCRACY Division of Labour Rules and procedures Authority Impersonality Careers and merit BUREAUCRACY POSSIBLE BENEFITS • Stability • Efficiency • Control POSSIBLE PROBLEMS • Red tape • Inflexibility • Dominating authority • Position protection Staff Rooms Many companies in the past set up their staff rooms as lacklustre and often small spaces and were at a loss to understand why usage of the facility by their staff was low. Enlightened companies are now commissioning interior decorators to design and implement stimulating, casual and relaxing staff rooms. These specially designed spaces take on a new persona and can even introduce a cafe ambience with a design theme and ‘funky’ colours’. The aim being to encourage staff to interact in-house at break times rather than going out.


3-Organisations and People

Managing Change
Do you have conscious procedures and commitment? Organisational change will not be maintained simply because there has been early success. There are a number of interventions that are possible, and many are necessary if a change is to be maintained. Many organisations are living with the effects of successful short term change results that have not been maintained Probably the most important requirement for continued change is a continued feedback and information system that lets people in the organisation know the system status in relation to the desired states. POLITICAL ACTIONS Broaden the political support for radical actions. Realise the level of dissatisfaction and discomfort with the current situation. Sensitise key factors / champions to the need for change. Progress is a nice word. But change is its motivator, and change has its enemies.

Robert Kennedy

SOME COMMON FEEDBACK SYSTEMS ARE: Periodic team meetings to review a team’s functioning and what it’s next goal priorities should be. Organisation sensing meetings in which the top of an organisation meets, on a systematic, planned basis, with a sample of employees from a variety of different organisational centres in order to keep appraised of the state of the system. Periodic meetings between interdependent units of an organisation. Renewal conferences. As an example an annual 5 year planning meeting, could be preceded by a weekend away at a retreat by the managers (and wives) concerned, to examine themselves, their personal and company priorities, new forces in the environment, forthcoming planning issues, what has happened in their working relationships and other issues for review before the planning meeting. Performance review on a systematic, goal directed basis. Feedback from outside parties. If some people become upset, it is a good sign that you are doing something significant.

Managing Human Resources

Executing Change - 10 Steps
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Analyse the organisation and its need for change Create a shared vision and common direction Separate from the past Create a sense of urgency Support a strong leader role Line up political sponsorship Craft an implementation plan. Develop enabling structures Communicate, involve people and be honest Reinforce and institute change.

Cure all It has been reported that, in a break with contemporary practice, Volkswagen halved absenteeism at its plants in Germany by handdelivering get-well cards to workers who call in to advise that they are too sick to come to work that day. Employees who are not at home when the card carrier arrives are invited to talk to the boss on their return to duties. CHANGING WORK HABITS Question assumptions. Discard preconceived notions. Think about what the customer wants. Working in teams can be helpful and very effective. Define clearly what needs to be established. Assess business priorities. Articulate core values and beliefs. Expect resistance and be prepared to deal with it. You may not need to be an expert to achieve significant change. Being an outsider can be an advantage. Being part of Change can be fun and exciting. There is a little rule of sailing where the more manoeuvrable ship should give way to the less manoeuvrable craft. I think this is sometimes a good rule to follow in human relations as well.

Psychologist Joyce Brothers


3-Organisations and People

People at Work - Cultures
A simple definition of a work place culture is that its culture is the personality of the business. Work place cultures are affected by: • levels of trust • risk taking • stress • fears and anxieties • social interaction • factions and politics • the structure of reporting relationships • company policies • personnel practices • work flow and work loads • management and supervisory styles • job design Many successful companies show a high profit orientation. The work force are kept informed of costs, profit and loss and accord a high priority to what surplus is all about. Concentration on profitability should help employees identify with overall company goals. Common factors that lead to involvement and pride in ownership are: a high degree of communication high pay / incentives promotion from within stress on training recognition of the ‘social’ side of work a genuine respect for the individual We quote the example of a successful and well known Australian manufacturing company. Everybody is a ‘manager’. Performance standards are designed to provide ‘stretch objectives’. They are ‘market driven’, with scope for equity sharing and retraining. In these settings, the additional tasks include making relations less adversarial. There is a broadening of the agenda for joint problem solving and the facilitation of conciliation. However there needs to be a genuine desire embodied in a published mission statement, acknowledging the claims of employees - and shareholders, for this type of scheme to work. This attitude change has major implications for employee participation. The CEO of another Australian company travels over 160,000 km a year visiting his plants and warehouses. The good managers welcome his visits because, ’when you start trying to anticipate what he will find you get better as a manager’. Finally in good, well run organisations, a positive attitude to such visits is, ‘to see it being done right’, - not to catch people making mistakes.


Managing Human Resources

Company Culture
FORMAL QUALIFICATIONS A well known and respected director of an Australian company, which operates in a number of overseas countries likes to relate this story, usually after the second port: “It is not only the MBA courses that produce arrogant graduates. I came from University with a doctorate degree in economics thinking I knew everything in the world. It took a couple of years in industry to teach me I knew very little.” Another leading and well respected Australian company director with an MBA from Harvard, says that even there, staff go to great lengths to discourage arrogance. “They tried to tell us that we would come out jacks of all trades and masters of none, that it would probably be years before we worked ourselves up to a job senior enough to look on business from the high perspective from which we had been regarding it at school. But that is a warning young people find difficult to accept.” A common view of these two people is that, ‘To be a successful manager and not just a back room specialist, one needs many qualities which are not intellectual but personal, such as leadership.’ An Australian owned company operating in the U.K., and other parts of the world, started to use the word ‘seamless’ to describe what the Australian headquarters called a ‘consistent level of standards’. The word was intended to mean there would be an internationally accepted internal standard and systems. To those in the Melbourne head quarters, it would mean that any client would receive a constant quality whether they purchased the services the company offered in Australia, London, Tokyo, New York or Singapore. It soon became obvious to the staff and management world wide, that what the word ‘seamless’ really meant, was that the common standards and phraseology being talked about would all be set in Melbourne and it was a case of do everything the Australian way. The company found itself with serious problems of how to handle the discontent and complaints about corporate imperialism! The ultimate result of this philosophy was that creative and dynamic staff soon left because their freedom of thought was being eroded and only customers who are attracted to and want to buy Australian will remain as customers. Ultimately managerial positions overseas have to be filled by Australians because they are the only ones prepared to perpetuate the gospel laid down by Melbourne headquarters.

3-Organisations and People

Forgetting Curves
FUTURE SHOCK It was not the great companies traditionally linked with radio valves that made the great success of semiconductors, but small companies that were almost complete strangers to the field. It was not the great electronic companies that made the conquest of computers possible, but companies that were working in different areas. This was not through lack of knowledge and skill on the part of the original companies, nor indeed lack of enterprise, but because their forgetting curves were too long. The newcomers simply had nothing to forget. This is the irony and the threat. A new company that has full access to latest technology - in whatever country - will immediately acquire the most up to date equipment, will train staff to the optimum level, will build up staff to the minimum level needed to work the equipment and will not be burdened by surplus plant, buildings and stock holdings. A long established company will have old plant, probably the wrong mix of skills in the work force, surplus machinery and buildings and will carry stock no longer relevant to the business. These constraints will be compounded by old style attitudes towards management methods, a trade union structure inherited from earlier and different times, and an ethos ill suited to the changing world. Forgetting curves persist for several reasons. ATTITUDES Dedication to past traditions, habits of thinking, pride, arrogance or just plain obstinacy are invariably present when forgetting curves are long. These are common human characteristics and should not be regarded as failings. Education, indoctrination, changing responsibilities, new people, early retirement and restructuring of firms are all methods that need to be considered and acted upon. STRUCTURE An organisation that has evolved successfully around one type of product or market environment can rarely change rapidly. Yet all too often, new firms merely graft opportunities or challenges onto existing structures rather than take bold steps into the future. The reluctance to change comes in part from the attitudes described already, but it is also due to too slow a pace of change. People who can recognise the foothills of some dramatic change rather than merely seeing them as perturbations in the normal run of business are vital to innovation.


Managing Human Resources

Cultural Attributes - The Three Legged Stool
The Criteria for a Satisfying Job • An optimal level of variety - one that avoids boredom, yet allows operators to settle into a satisfying work rhythm. • The chance to learn on the job and to go on learning; i.e. targets for performance are set; feedback on performance is provided; performance is critiqued to work out ways for improvement. • Adequate elbow room - people are not left completely on their own so that they do not know what to do next. But the boss is not breathing down their neck. • A situation where they can get help and respect from their work mates. • A feeling that their work is useful to society. • A desirable future - a job which enables the person to grow. EMPLOYEES The chance to learn The first element involves treatment of on the job and to go employees, which forms a prominent part of on learning the psychological contract between company and employee. Employees dedication and loyalty is seen as a quid pro quo as a perception of fair treatment by the company. Employment security, good wages and benefits and employee safety are seen as the major issues in a lot of companies. CUSTOMERS The second leg of the stool. Dedication to the service ethos should be a powerful value in successful companies. The importance of quality service should be instilled early in every employee’s career and constantly reinforced by management. ‘The Customer is King (or Queen)’, seems a fitting adage for the new millennium and should be practised at all times. Can your company conduct competitive customer service competitions to encourage excellence in customer service. SHAREHOLDERS or OWNERS The third leg of the stool. Shareholder accountability should be safeguarded by those elements of organisational culture that encourage productivity and sound financial management.

3-Organisations and People

Crisis Management
Is your organisation prepared for the unexpected? Is your organisation prepared for, and able to handle a major crisis? Is your organisation capable of handling a major crisis? Do you have a crisis management team with clearly defined strategies for crisis? Can you get accurate information about your crisis, fast? Statistics suggest once a crisis commences: in 70% of cases it will escalate. in 50% of cases it will interfere with business. in 50% of cases it will effect profits. IN A MAJOR BUSINESS CRISIS Do your key employees have a (confidential) list of after hours phone numbers? Who is the back up person if you are unavailable? Which Government Departments would you need to contact? Are their phone numbers on your list? Would the switchboard operator be able to handle incoming calls and questions in a crisis? Would a dedicated 1800 phone line be appropriate for use in a potential emergency? SOME POTENTIAL PROBLEM AREAS • Industrial accidents • Environmental problems • Union problems / strikes • Product recalls • Rumours / media leaks • Government regulatory problems • Terrorism • Embezzlement • Bad debts • Loss of a key supplier • Loss of a major customer What if your business burnt down on a Sunday night? What if there was no power supply one morning, to your premises? Or your business was hit by an earthquake? (These are actual examples from our own work experience.) When this was originally written Sydney had just experienced a major hail storm, which was reported as being Australia’s second worst natural disaster. Tarpaulins to cover roofs had to be flown in from China, and weeks later many people affected by the storm were still experiencing difficulties. At the time of a major revision of this book Sydney was experiencing bushfires with major loss of property.

Managing Human Resources

Downsizing - Some Peter Principles
DOWNSIZING People responsible for downsizing - a euphemism for staff retrenchments, often on a major scale - have identified several phases in the process. THE GRIEF PHASE Shock Staff drop their work Staff congregate in groups for long periods of time trying to understand the ramifications A paralysis of feeling THE DEPRESSION PHASE Bargaining has failed A sense of helplessness and loss of control sets in Pessimism and hopelessness take place Some people with low skills remain in this phase until retirement ACCEPTANCE A recognition that the job and its benefits are lost An ability to look for new work and move on emotionally Rehabilitation and rebirth In 1991 General Motors in the U.S. employed more than 400,000 people to make around 4.2 million motor cars. In the same year Toyota employed only 97,000 people to produce more than 4.2 million cars and trucks. DO YOU HAVE A POSITIVE ATTITUDE TOWARD SUCCESS? 1) Are you happy only when you are doing better than others? 2) Do you feel that achievement commands respect? 3) Is it important to you to do well in the things you undertake? If you answered yes to these questions you have a positive attitude to be being successful. Many companies, organisations and managers peak at an optimum size or level of competency, by performing at least one rung below the maximum level of incompetence. Mark Twain said: Training is everything. ‘The pearl was once a bitter almond. A cauliflower is nothing but a cabbage with a university education.’

3-Organisations and People

Occupational Health and Safety (O. H. & S.)
All organisations should have an Occupational Health and Safety policy in place which is clearly understood by all employees. Those responsible for the Occupational Health and Safety policy should be equipped with the necessary skills to carry out and perform these policies and their functions under this policy. Some of the issues to address: Employees need to be aware of the factors involved in work related injuries and disease, and be made aware of changes in Occupational Health and Safety issues. Those responsible for administering the Occupational Health and Safety policy should have the knowledge, skills and competencies to carry out their tasks, and be able to identify potential and existing risks and hazards. Those responsible for administering the Occupational Health and Safety policy should be able to develop and implement preventative strategies. Those responsible for administering the Occupational Health and Safety policy should be able to represent both employer and employee in the consultative process. Those responsible for administering the Occupational Health and Safety policy should be aware of current legal requirements and keep up to date with changes in legal requirements and community expectations. Those responsible for administering the Occupational Health and Safety policy should implement training policies to effectively address relevant issues in their organisation. The organisation should have a system for investigating, reporting and recording incidents and accidents with an emphasis on prevention. Are your employees equipped with appropriate protective equipment? Does your organisation have an easily accessible FIRST AID station and a trained person to render emergency assistance? Does your organisation have a list of emergency phone numbers to be used in emergency situations? Does your organisation have an emergency procedure plan in place? Of course Occupational Health and Safety is a far more complex subject than this, and many organisations have a full time officer to handle this complex task. O.H. & S. at work In a general discussion with a construction company with 50 workers which we were doing some consulting work for, the subject of O.H. & S. came up. “We have a committee that looks after that. They have a meeting now and again after our other meetings”, was the proud response. “We even keep minutes”. A little later the appropriate minute book was shown to us. The only entry for at least a year read, ‘Jim to buy some band aids to stock up the first aid kit’.

Managing Human Resources

Discrimination At the time of writing Sue Goward was the high profile head of the Office of the Status of Women. In press article she claimed that, ‘Discrimination does not come cheap. Its costs are not just financial penalty or damaging Human Resource publicity for a company, but also lost managers should opportunity. In fact it is almost passé to talk constantly ask about discrimination; it is better known as bad themselves, “Why management. would someone want to A study in the United States rated the come and work in this performance of the Standard & Poors 500 organisation?” companies on equal-opportunity factors, including the recruitment and promotion of women and minorities. It found that companies rated in the bottom 100 for equal opportunity had an average of 8% return on investment. Companies rating in the top 100 had an average return of 18%. The lesson is clear: to be competitive, organisations need to take advantage of the Can you gain more from range of talents of their staff and strengthen your people by their business profiles and management empowering them. diversity. Good equal-opportunity practice Can you increase their makes good business sense. ability to achieve by Surveys show that poor equal-opportunity enhancing their selfpractices contribute to high staff turnover and esteem and improving absenteeism. A University of Melbourne study their skill set? has estimated it costs a professional services firm about $75,000 to replace a key employee.’

The PARETO PRINCIPLE • In most companies 80% of the sales come from 20% of the customers. • In most companies 80% of the complaints come from 20% of the customers. • In most companies 80% of the profits come from 20% of the customers.


3-Organisations and People

An Employee Handbook - a suggested Outline
As a component of their Human Resources policy an organisation should have an employee handbook, which is given to all employees when they commence working for the company. This handbook could contain information on the following: 1] Welcome message 2] History of the organisation 3] This is our business 4] You and your future 5] What you will need to know
Working hours Reporting to work ‘Time clock’ Rest periods Absence from work Reporting absences Employment record Pay period Shift premiums O. H. & S. Use of telephones How to air complaints

6] These are your benefits

Holidays Rostered days off Work insurance Hospital and medical benefits Free parking Training program Christmas bonus Savings plan Profit - sharing plan Suggestion awards Service awards Credit union Education plans Medical dispensary Employee purchases Cafeteria Monthly magazine Social club, annual outing, etc. Sporting activities

7] These special services are for you

8] Index / table of contents

Managing Human Resources

Code of Conduct
Many organisations produce a Code of Conduct for their employees. Employees would be expected to read it, ask questions of their supervisor and then sign it to indicate they understand the ethical procedures of the organisation. Everything must be above board and be seen to be so. Internal auditors may be responsible for checking procedures. A code of ethics may be necessary to support a Code of Conduct. Procedures might include: Protection of confidential information Avoiding conflicts of interest Directing media contacts to media relations Prohibiting drugs and alcohol Eliminating the risks of fraud and corruption Prohibiting gambling Discouraging and reporting gifts and entertainment A code of ethics may be necessary to support a Code of Conduct and to address issues, including cultural issues, such as: What do we as an organisation think is worthwhile? What are our core values? What sort of principles are we using for our decision making process? These issues and values can be developed at monthly staff meetings


3-Organisations and People

Negotiate is what we do when the other side can hurt us’, is an old adage veteran diplomats like to use. This implies that negotiation is an exercise in relative power, in which one side tries to win as much as possible while minimising the risk of getting hurt. This view implies there must be a winner and a loser, at least relatively. How much each side wins or loses depends on its relative power and its skill in using this power, or threatening to use it, during negotiation. People who try to resolve conflicts through the use of power often get the creativity of their opponents turned against them. Consequently, what is seen as a win-lose confrontation (usually by both parties) frequently winds up as a lose-lose: neither party gets what it really needs. Most of us see differences between us as problems to which we must apply our imagination to get our way. If we could believe that conflict, when properly managed, can be an opportunity rather than a problem, and that outcomes favourable to both sides are possible, we might free ourselves from the mental tyranny of misusing power in negotiation. THE UTILITY OF BARGAINING Bargaining is often legitimate, such as when a shopkeeper would rather sell for less than not at all, and the customer would be willing to buy if the price were right. The two begin to bargain when the customer perceives that the price of the object is not fixed. Bargaining is also useful when limited resources must be shared, and each party is striving to maximise its portion: the idea of splitting the difference may lead to a quick agreement that leaves everyone satisfied. CREATIVE NEGOTIATION: A WIN - WIN APPROACH More than ever before conflict must be resolved beneficially, harmful behaviour confronted effectively, and new and more satisfactory ways of sharing a broad range of resources negotiated. Conflicts of need arise naturally and can produce beneficial results. Negotiation can be more than a contest in relative power. Negotiation is a complex process that includes, but is not limited to bargaining

Managing Human Resources

Creative Negotiating
Creative negotiating is a process whereby two or more parties meet and through artful discussion and creativity, confront a problem and arrive at an innovative solution that best meets the needs of all parties and secures their commitment to fulfilling the agreement reached. This includes bargaining, compromising or trading, techniques that may occur in negotiation but are not essential to it. The word bargaining is more or less synonymous with haggling. It is usually used to describe a commercial transaction or a trade off: Union-management talks being a good example.

Even Moses when he came down from the mountain after getting the Ten Commandments admitted to some negotiating. He said, ‘Well, we negotiated together. I got him down to ten, but adultery is still in’.

Measuring your professionalism How do your customers, peers and staff measure your professionalism? They are continually using clues to assess you (don’t forget, you only get one chance to make a first impression). You can assert your control by influencing and optimising the effect of the clues you are sending, in areas such as: • Symbols of authority • Symbols of expertise • Vocabulary and articulation skills • Personal character development • Personal packaging When competitiveness or suspicion pervades a relationship, when ideologies conflict, when the use of power threat are endemic, when the relationship is short term and formal, when haggling is expected and appropriate, or when impasse exists, bargaining may be the best way to settle an issue.


3-Organisations and People

The Process of Negotiation
Preparation and planning - do your homework ahead of time. Research the opponent or opposition. Familiarise yourself with the opponent’s past behaviours, philosophy, speeches, viewpoints, writings, tactics, aspirations, successes and failures. Research the history of the conflict. What led up to these negotiations and what possible solutions are available? Research the present conditions. Is a site visit appropriate? Formulate requirements. What do you need out of the negotiations? Assess motivations. Evaluate both yours and that of the other party. Consider time and timing. How much pressure will I be under to achieve an agreement? Should we finalise the matter later? Identify all the parties to the negotiations. Are there third parties or other people such as lawyers involved? Identify the power figures on the other side. Who are the decision makers, change agents, and those wishing to maintain the status quo? Determine the costs of a stalemate. What is the best alternative if my final offer is rejected? What is the next best alternative? Choose strategy or tactics. What tactics best suit this situation?


Managing Human Resources

The Negotiation Conference
Pre negotiation discussion This may be done to establish a relationship, to soften up the opponent, or to assess the potential problems involved in the negotiation. Seldom is anything critical discussed, as the purpose is to become acquainted amicably. The meeting can be held at each others office or a neutral site. The goal is to create an informal, relaxed and friendly environment that will discourage tension and competitiveness and encourage co-operation and a willingness to solve problems. Opening the meeting, arrival and protocol. The formal opening of the meeting and the presentation of the participants may establish rank, precedence, and other aspects of each party’s relationship to its counterpart. Initial remarks. This step primarily sets the tone of the conference. The remarks do not deal with matters of substance. Formalities. Introductions, rituals, a statement of purpose, or charter, or a review of the background to the conference may come at this step. Statement of the problem. The reasons for the negotiation are summarised in unequivocal words. This should be a step to a statement of the goals desired. Establishing ground rules. Matters such as the use of facilities, seating arrangements, work schedules (hours, breaks, etc.) and support services can be discussed. Establishing the agenda. This is vital. You must ensure that all the items you consider critical are on the agenda, or can be introduced at appropriate or (advantageous) or vital times. Discussion - Give and take. This includes not only bargaining, but all the activity of working out an agreement. This is the problem solving stage, the crux of the negotiation. This is where the art of negotiation, good or bad is displayed. Conclusion. Agreements may be reached in stages, and there may be several stages at which agreements are reached. Great care should be taken at this stage against any possible misconceptions. Developing an agreement. This may vary between nodding of heads in agreement or the construction of a complex legal document. Review and adjustment. A formal agreement may be examined for loopholes, ambiguous words or phrases etc. Ratification. This can range between the parties saying ‘okay’, shaking hands or be far more complex and need some type of formal ratification.

3-Organisations and People

Questions - What are they?
A question is an opening to creation. A question is an unsettled and unsettling issue. A question is an invitation to creativity. A question is a beginning of adventure. A question is seductive foreplay. A question is a disguised answer. A question pokes and prods that which has not yet been poked and prodded. A question is a point of departure. A question has no end and no beginning. A question wants a playmate. TWELVE BASIC QUESTIONS Introduction Q. What would you like to get clear about today? A. I would like to get clear about my relationship to....... Q. What is it about..........that is not clear? The questions: 1. What is the goal you would like to achieve? 2. What solutions have been attempted so far? 3. What is it about these attempts that did not work? 4. What is your feeling regarding the situation? - e.g. anger, hurt, fear, sorrow. 5. What is your attitude regarding the situation? - e.g. contempt, judgement, criticism. 6. What benefits do you receive from having this situation? 7. What is the reality of the situation? 8. What would you like to see happen? 9. What else would you like to see happen? 10. What do you need to do at this time? 11. How would your life be different if this situation were changed? 12. What one thing are you willing to change to make this be what you would like it to be?


Managing Human Resources

My Job - My Role
This quick quiz should be done from memory, without reference to any outside prompts. The most important areas of activity for me are: 1] 2] 3] The major outcomes required from my job are: 1] 2] 3] Targets which I am expected to meet are: 1] 2] 3] The most important people/departments for me to interact with are: 1] 2] 3] The individuals / groups I have direct authority over are: 1] 2] 3] For most people at work there is: A role that should be performed, a role that the person thinks they are performing and there is a role that they are actually performing. A common method of overcoming these problems is Management by Objectives [MBO], or similar setting of objectives for a person’s position. Some of the criteria used to set these objectives: CLEAR definite, specific and unambiguous. MEASURABLE in terms of quantity and / or quality CONSISTENT will contribute to the desired end result of the organisation or unit. CHALLENGING encouraging personal skills and knowledge growth ACHIEVABLE possible for the job holder ACCEPTABLE agreed to and accepted by both the person and the person’s manager.

4 Leadership and Motivation

Managing Human Resources

What type of leadership should an effective leader provide? Some of the myriad leadership responsibilities of management include: Showing the way, and defining the goals and intentions of the organisation. Going ahead of, in a spiritual relationship with your people. Guiding, people into alternate methods and directions. Causing progress, and setting in motion people and activities for progress. Being decisive, and maintaining constant flow and growth. Having grace under pressure Creating pathways with the leader’s values and visions. Controlling and influencing actions of people and the organisation. Directing and maintaining cohesive achievement. Commanding and exerting authority in the context of effective leadership. Raising morale, of people and the organisation. Being the first and more important, letting others be the first, and receive the credit. Heading the team and being ultimately responsible for what happens. Beginning, and setting in motion the stimulus and movement for motion. Each of us wants continuing reassurance on two points: 1. ‘Tell me what you expect of me.’ 2. ‘Tell me how I am getting on.

Good supervision is the art, of getting average people, to produce superior work.


4-Leadership and Motivation

The Visionary Creates meaning by crafting a vision, mission and direction that define the focus of an enterprise. Continually evolving, elaborating, and interpreting this meaning for the people in the organisation. The Team Builder Puts the correct people in the correct places for the leadership team, welds them into a focused team to advocate the common goal, using their individual strengths and resources, continuously developing them as a team and as individual leaders who can produce the desired results. The Buck-stopper Faces the difficult issues, sorts the truth from the challenges, and makes the necessary decisions and changes. This person needs to be open minded, a good listener and be prepared to collaborate with the management team. The Living Symbol Leads in a highly visible manner, which is not necessarily a charismatic style but a constant and persistent pattern of reinforcing the organisational goals, at every opportunity. This will involve simple, everyday actions that enable people to associate the leader with the success of the organisation. This association will result in the leader being automatically associated with a concept of success. This person will become a ‘human logo’. Each of these people needs to be a visionary, a team builder, a living symbol, and a buck stopper for their own enterprise, within the enterprise. The people working for you will expect: Clear direction and objectives, including target dates. Equal and fair treatment. Good training, based on their present work to prepare them for advancement Proper equipment and adequate resources. Good working conditions. An even work flow free from peaks and troughs. Recognition of their performance and of their worth as individuals. To develop as a team. Encouragement of effort. Protection from hazards. A good example. Information on what is happening and on what is going to happen.

Managing Human Resources

Leadership Steps

Power Base
Legitimate ASSIGN Reward Coercive Expert Referent Information Direct Order Instruct Plan


Guide Support Monitor Delegate

Control Review Critique Appraise Revise Feedback Reward Punish

Productivity Satisfaction Turnover Absenteeism


4-Leadership and Motivation

Empowerment - What is it?
Empowerment is a fundamentally different way of working together. Employees feel responsible not for just doing a job, but also for making the whole organisation work better. Teams work together to improve their performance continually, achieving higher levels of productivity. Organisations are structured in such a way that people feel that they are able to achieve the results they want and that they can do what needs to be done. Many people consider EMPOWERMENT as yet another buzz word in a seemingly never ending string of business solutions with a catchy name. As with most other new business ideas, many employees find it very difficult to embrace EMPOWERMENT and to come to terms with it. As with all change in the work place, EMPOWERMENT involves both managers and employees in rethinking old ways and learning new ones. This invariably involves a vast shift in the way management and staff operate and will need to involve dedication and commitment, reinforced at a number of meetings.

• Decisions are made at the top. • Each person is responsible for their own job. • Change is slow and rare and comes from the top. • Feedback and communication is from the top down. • Movement and communication between divisions is minimal. The pyramid TRADITIONAL JOB SPECIFICATIONS

People work cooperatively. Responsibility, skills, authority and control are shared. The CUSTOMER is in the centre. Control and co-ordination come through continual communication. Change can be rapid to meet challenges. The circle NEW ORGANISATIONAL FORM


Managing Human Resources

Good Leadership
Demonstrate concern for people Provide for opportunity and assist in self development Provide an atmosphere encouraging self-satisfaction and pride Encourage team effort Maintain complete fairness, honesty and integrity. Maintain open, consistent, and regular communication. Encourage public service Encourage creativity Commit ourselves to productivity and quality Maintain consistency Dedication to improvement Keep things simple and basic Build on a basis of ‘need’ Give attention to detail Conserve resources Listen carefully to what others are saying and ‘take it on board’ A Bad Boss Is dictatorial, bullying and inconsistent Feels threatened by divergent opinions and will surround him or herself with people of similar views Withholds information, uses his or her power to effect change Enjoys intimidating staff and is often autocratic Is one dimensional Quells conflict rather than drawing differences out Is a workaholic with few if any close relationships HR at the banks At Hewitt Associates, Bell and Brown say that any change in culture that creates a desirable employer brand has to come from the top of an organisation. At Westpac, chief executive David Morgan put his name to the "barbecue cards", and signs off personally on many pieces of communication with staff. Similarly, John McFarlane, the chief executive of ANZ Banking Group, has been keen promoter of better communication and motivation of staff. McFarlane says: "In terms of running the bank, we have been doing lots of work on performance ethics, about what gets our people excited and performing well." In early 2001, the bank began a program of what it calls "perform, grow and break out". "It is a simple communication to everyone in the company about performing better, being more in control, and having the courage to be different," McFarlane says. "The hard-faced image of the banks is not going to help us grow. We want to be the bank with the human

4-Leadership and Motivation

face, for customers but equally importantly for our people. Enhancing the people agenda is vital for us."

Future Vision
How will you rate and address: Customer requirements? Employees’ desires and expectations? Improved employee job satisfaction? Improved communications, both up and down? Active employee support for company vision, goals and objectives? Improved quality and productivity? Suppliers’ desires and expectations? Core competencies? Vital issues affecting your business and organisation? Personal desires and ambitions of the leadership team? And compare against your local competitors? And compare against the worlds best practices? A Personal Goal • Be good at what you do. • Get better at what you do. • Be the best at what you do. • Stay the best at what you do You are responsible for your life. Completely, utterly, totally, 100% responsible. Fate, destiny, whatever will throw you chances here and there but it is up to you to take hold of them. Obstacles, brick walls, and everyday hassles will constantly try to hold you back (mainly in the form of other people) but it is up to you whether you let these affect you or not. When you peel back all the layers of yourself and the world it is as simple as that. A yes/no decision every time. Everything is not black and white - far from it, and life is complicated. It often takes extreme courage and strength to make a decision - either way - but you must do it if you want your life to progress and if you want to grow. Stop looking around for people, organisations and movements to blame. Ultimately you decide what you are going to do, how you are going to do it and how much you are prepared to gain or sacrifice while getting it. Finally, get to know yourself - intimately.

Managing Human Resources

Leading a team - 20 Work related needs and requests
1. Ability utilisation: the chance to do something with my abilities. 2. Achievement: the feeling of accomplishing something at work. 3. Activity: the chance to be busy all the time. 4. Advancement: the chance for advancement. 5. Authority: the chance to tell other people what to do. 6. Community service: the chance to do things for other people. 7. Company policies and practices: the way company policies are put into place. 8. Compensation: the pay for the amount of work done. 9. Co-workers: the way co-workers get along with each other. 10. Creativity: the chance to try doing things my way. 11. Ethical values: the chance to do things that do not go against my conscience or ethics. 12. Independence: the chance to work without supervision. 13. Recognition: the praise for doing a good job. 14. Responsibility: the freedom to use my personal judgement. 15. Security: the provision of steady employment in my job. 16. Social status: the chance to be recognised in the community. 17. Supervision - human relations: the way the boss handles subordinates. 18. Supervision - technical: the competence of my supervisor in making decisions. 19. Variety: the chance to do different things from time to time. 20. Working conditions: the amount of comfort and safety on the job.


4-Leadership and Motivation

Motivation - what motivates people at work?
The Traditional theory of motivation, evolved early in 20th century from the scientific management theory. It held that money is the prime motivating factor and that financial rewards should be related directly to performance. Maslow’s Hierarchy of Needs Theory As the Human Relations movement grew, more attention was focused on the worker. Abraham Maslow held that individual unsatisfied needs are the main source of motivation. He placed five needs in a hierarchy from most basic to most mature: Basic or psychological (as needed for survival), safety, a sense of belonging, ego status and self actualisation Sequence. Maslow believed that an individual must satisfy one need before feeling free to take on the tensions associated with the next level and before trying new behaviours aimed at satisfying the next higher need. Herzberg’s Motivation-Hygiene theory. Focusing more specifically on the work situation, Frederick I. Herzberg believed that only those needs that corresponded to Maslow’s ego status and self-actualisation levels were direct sources of work motivation. He called these factors motivators and he thought that the lower level needs of survival and safety, which he labelled dissatisfiers, or maintenance factors, centred on issues not directly related to work and were factors that most people assumed would be met. A sense of belonging, he found overlapped both categories. Maintenance factors. Among Herzberg’s maintenance (dissatisfier) factors were salary, job security, and good working conditions. Motivating factors. Among his motivating factors were the challenge of the job itself, achievement, recognition, responsibility, advancement, and growth. Many people at first glance think that money is the all important motivator. However research shows that as long as a reasonable and fair income is supplied, issues such as achievement, recognition, and the nature of the work will over ride money considerations. In some of our tutorials we ask people what work issues they talk about in their breaks - invariably the answer is achievement, recognition, and the nature of the work, with money seldom discussed!


Managing Human Resources

What motivates people at work?
National surveys of workers consistently indicate the following important motivating factors: Element Achievement Recognition Nature of work Responsibility Advancement Wages / money Ranking 41 33 26 23 20 15

What motivates you? What do you do best? How often do you do that? What would you rather be doing than your present job? Is there anyone with whom you would like to exchange jobs? What appeals to you about the other job? Can any part of this be included in your present work? What stands in the way of you doing this? What part of your job do you do least well? How much of the time do you do this? When are you most productive? How often does this positive situation occur? What does your productivity depend upon? Are you able to ‘run’ with your most productive times or does your schedule or other duties cut them short? When are you happiest in your work? Are these times the same as your productive times?


4-Leadership and Motivation

Maslow’s hierarchy of needs
focuses on the inner needs of individuals

Drive to become what you are capable of Inherent well-being, selffulfilment, personal growth and development, the opportunity to fulfil one’s basic potential, to become more like one’s natural self

Status, recognition, attention Self respect, autonomy, achievement Ego and status, esteem needs for accomplishment, participation, prestige, selfesteem, independent thought and action, privileges, authority, recognition, professional group membership

Need for affection, belonging, acceptance and friendship Social needs for affection and caring relationships, trust, feedback, friendships, discussions, being informed, helping other people

Need for security and protection from physical and emotional harm Health care, fringe benefits, routine, stability, financial reward, safety, security

Basic need for food, drink, living quarters, sexual needs, clothing and physical fitness


Managing Human Resources

Motivation and Needs
ORGANISATIONAL GENERAL FACTORS Growth Achievement Advancement Recognition Status Self esteem Self respect Companionship Affection Friendship NEED LEVELS Self - actualisation SPECIFIC FACTORS Challenging job Creativity Advancement at work Achievement in work Job title Earn a pay rise Peer recognition The nature of work Quality of supervision Compatible work mates Professional friendships Safe work conditions Fringe benefits Job security Heat and air conditioning Base salary Canteen Working conditions

Ego, Status, Esteem


Safety Safety and security Security Competence General wage increases Stability Air Food Shelter Sex Psychological

Achievement Recognition Work itself Responsibility Advancement Growth

Company policy Company administration Supervision Relationship with supervisor Work conditions Wages Relationship with peers Personal life Relationship with subordinates Status Security Items are listed in order of importance, from the top

4-Leadership and Motivation

Motivation by shareholding
Many newly successful businesses are forced to think long and hard about retaining their key employees. They worry that their larger and more affluent competitors might make them offers which they could not possibly match. How can this risk be minimised? Many organisations already pay key staff a performance bonus. Another way is to offer these people a stake in the business by means of share ownership. If the company was to become an unlisted public company there could be several options. The organisation could: Issue newly created shares to staff at a discount Issue staff with contributing shares, which would mean that they are partly paid with the proviso that they become fully paid at a later date Offer staff interest free loans to buy fully-paid shares Issue share rights or options, giving staff the opportunity to buy shares at a specific price at a specific date Any share scheme would need to be structured in such a way that control of the business was not lost by its original proprietors. One way of doing this is to create a special class of shares that give a profit entitlement but not an equity entitlement. An approach to issuing shares could be to allocate shares on the basis of length of service. Further you could make shares conditional upon specified service periods being completed. As an example of staff share ownership, one successful manufacturing organisation we know of is currently 66% owned by family members and the remaining 34% is owned by twelve key staff. Another organisation in the western suburbs of Sydney offers all employees the chance to buy company shares through a scheme that enables them to contribute 10% of their wages into a share pool. For every five shares they buy, the company gives them one free. Life is similar to a juggling act with five balls. One ball - work - is rubber. The other four - family, health, friends and spirit - are made of glass. Rubber bounces. Glass shatters. The message is clear.

Managing Human Resources

The people working for you will expect:
• Clear direction and objectives, including target dates. • Equal and fair treatment. • Good training, based on their present work to prepare them for advancement • Proper equipment and adequate resources. • Good working conditions. • An even work flow free from peaks and troughs. • Recognition of their performance and of their worth as individuals. • To develop as a team. • Encouragement of effort. • Protection from hazards. • A good example. • Information on what is happening and on what is going to happen.

HOT and COLD There is a story about a business tycoon who had no heirs, and was fond of food and intellect. He offered the inheritance of his business empire to whoever could create the best dish of food that was both hot and cold at the same time. Most people are stumped by the apparent contradiction.

The winning dish was the hot fudge sundae, the runner-up created Baked Alaska. People in business who can hold opposites in their vision simultaneously can win the empire! This contextual shift is an interesting analogy for management!


4-Leadership and Motivation

Motivational Determinants of Behaviour

The Individual
• • • • • • • • • • • drive force emotion instinct need urge want desire wish feeling impulse striving

Environmental event

Effort Incentive
• • • • • • • purpose interest intention goal plan aspiration attitude value



Environmental event


Managing Human Resources

Productivity and Motivation
Most businesses suffer a common problem in motivating their people to greater productivity. In simplistic terms the answer is to identify their needs and employ their strongest talents, though very few people would agree to the premise that they are doing (being allowed) what they want to do and being used to their full potential. TASK
Manipulating to perform Money for unpleasant jobs Threaten and manage by fear Increase productivity attempts External rewards

Disheartenment Working for a price Question own values Eventually become accustomed to threat Ignore threats and find own comfort level Short lived gains Erosion of effectiveness When expected, has no motivating effect Requires ever increasing rewards Short lived. Quick adjustment Company cannot afford these offers Cynical acceptance Ineffective due to inflation and taxes Does not permit a change in life style No real incentive to produce Usually viewed as merited and expected Short lived gratitude Powerful and often lasting motivator Lack of self esteem Start looking for alternative job Many almost bankrupt companies have been saved by increased worker participation Must be a genuine threat Self motivation Best way of increased productivity

Offers appealing to greed Minor wage increases

Threat of losing job

Provide stimulus Identify and tap into people’s inner drives

See that people are matched with their capabilities and preferences

4-Leadership and Motivation

Does your Workplace suffer Morale Problems?
Some common and often overlooked signs of morale problems: Poor and uncooperative attitudes Lack of enthusiasm Lack of commitment ‘Them and us’ mentality Nit picking and fault finding High, and growing levels of complaints Absenteeism Negativity General tardiness Poor appearance of the work place Lack of discipline Long, sour faces Staff openly discussing their discontent and grievances

WHAT CAUSES LOW MORALE? Some common (and often easily rectified) causes: • Inaccessible management • Poor communication • Unrealistic goals • Hard to understand goals • Aloof management • Poor leadership by management • Lack of coaching by management • Bloated hierarchy (or workers think so) • Poor job placement • Poor work environment • No room for promotion or advancement • Lack of understanding of job responsibilities

THE HIGH MORALE ENVIRONMENT • • • • • • • • • Interesting work Innovation welcomed A sense of accomplishment Recognition of effort Fair treatment of people Responsibility Appropriate compensation Attractive work conditions Opportunities for personal growth • Feeling important • A sense of belonging • Opportunities for advancement


Managing Human Resources

Stress and Work
Some common causes of stress, in order of occurrence: Type of work performed Lack of communication Under staffing Employer’s demands Preoccupation with work Incompetent supervisors Not allowed to do a good job Fellow workers Incompetent subordinates

Stress - some warning signs Rapid pulse Intestinal distress Insomnia Frequent illness Nail biting Irritability Persistent fatigue Lack of concentration Hunger for sweets Increased use of alcohol and drugs
Seven sure signs that you need a holiday:
1. Irritability over trivial matters 2. Inappropriate anger 3. Increased,drinking, smoking, eating, drugs 4. Vague speech patterns 5. Brooding 6. Depression 7. Insomnia

Burn out (a severe form of stress) Five stages of Burn Out can be readily identified: 1. Lack of enthusiasm and interest 2. Frustration 3. Stagnation 4. Withdrawal 5. Isolation and disinterest


4-Leadership and Motivation

What attributes do you require to be a workaholic?
You do not think you are one, or admit to being one. You work through lunch and tea breaks. You work while waiting on the telephone. You get up early, regardless of when you go to bed. You can’t keep away from work on weekends, and ‘clean up’ then. You work on holidays. You take pen and paper to bed with you. You find it difficult to do nothing. You are energetic and competitive. You are able to work any time and anywhere. Travel time is used to process paper work. You are loath to take holidays. You are not looking forward to retirement. Your work habits exceed expectations. Your work is important by its sheer volume. Much of your work is for work’s sake, with little major impact. Statistics suggest few workaholics ever become a successful C.E.O.

Former McKinsey managing director, Ron Daniel, once outlined the company’s recruitment philosophy. “The real competition out there is not for clients, it is for people. We look to hire people who are first, very smart; second, insecure and thus driven by their insecurity; and third, competitive. Put together 3,000 of these egocentric, task-orientated people, and it produces an atmosphere of something less than humility.”


Managing Human Resources

Retaining scarce talent
One of the top strategies for retaining scarce talent is to identify the top 10 percent to 20 percent of the key people on staff and taking special care to keep them. These key people may be high-potential individuals or those who are critical to completing a major project. However, companies should not lose sight of the big picture. All people count, and smart companies realise this. Companies do not become great because of only a few key people—everyone must count all the time. Organisations should customise their solutions based on their workforce, culture, business situation, and business strategy. In general, companies should use a combination of components for creating total rewards and provide opportunities for individual growth, a positive workplace, a compelling future, and total pay. Some examples of successful strategies for retaining scarce talent are: Develop a buddy system. Provide a mentor for scarce talent that keeps them happy from day one. A good start goes a long way. Stay "state-of-the art" with your expectations of scarce talent. And make sure you pay scarce talent for developing new skills and competencies or your competitors will. Offer win-win project incentives for people remaining with your company until the successful completion of the project. Project incentives clearly acknowledge a person’s contribution to the company. And while many companies may already be doing this annually, consider incentives more frequently for those workers that prove to be increasingly valuable. Research shows that you may lose scarce talent within the first three years. Make people owners in the company through stock options as early in their careers as possible. Focus on key-talent workers below management level who may be more up-to-date on key technical skills and knowledge. Provide exciting and challenging work that people want to do. Look for the kind of business that interests people. This is a great way to keep individuals motivated. Produce meaningful (and breakthrough) work for your customers which in return will also be meaningful (and exciting) for the workforce. Provide excellent colleagues with whom people want to learn and work. Hire and train top-notch leaders people admire. Provide "feel good" benefits such as casual dress, longer vacations, flexible hours or work schedules, a pleasing and comfortable space, and amenities like a fully stocked kitchen and health club. Some companies even provide umbrellas in the workforce lobby for when it rains, allow pets at work, and provide car pools and transportation for employees’ children before and after school. Most companies are not in the business of buying talent at any price. Companies that have proven themselves over the years focus on strategies that keep key people who add value. The solution is total rewards. It is more than just how much people are paid or how many

4-Leadership and Motivation

share options they have.

Leadership - the delicate balance
Leading a group - try this checklist YES NO

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.

I would most likely act as the spokesperson for the group I would encourage overtime work I would allow members complete freedom in their work I would encourage the use of uniform procedures I would permit the members to use their own judgement in solving problems I would speak as a representative of the group I would needle members for greater effort I would try out my ideas in the group I would let the members do their work in the way they think best I would be working hard for promotion I would tolerate postponement and uncertainty I would speak for the group if there were visitors present I would keep the work moving at a rapid pace I would turn the members loose on the job and let them go for it I would settle conflicts when they occur in the group I would get swamped by details I would represent the group at outside meetings I would be reluctant to allow the members any freedom of action I would decide what should be done and how it should be done I would push for increased production I would let some members have authority which I could keep Things would usually turn out as I had predicted I would allow the group a high degree of initiative I would assign group members to particular tasks I would be willing to make changes I would ask members to work harder I would trust the group members to exercise good judgement I would schedule the work to be done I would refuse to explain my actions I would persuade others that my ideas are to their advantage I would permit the group to set its own pace I would urge the group to beat its previous record I would act without consulting the group I would ask that group members follow standard rules and regulations

Managing Human Resources


5 Training and Evaluation

Managing Human Resources

Competency Based Training (C. B. T.)
Competency Based Training was adopted by Australian business and industry to gain benefits for workers, companies and the nation from: Increased productivity and efficiency. Increased international competitiveness. Increased skills levels. Multi skilling of workers leading to greater versatility. Workplace reform. Improved quality of products and services to customers. Companies assess workers in order to: Recognise skills and abilities acquired through non-formal training. Recognise skills and abilities acquired through experience in the workplace. Improve the responsiveness of training to industry requirements. Develop coherent and consistent training standards. Appraise performance on the job. Offer increased opportunities for advancement. Some Features of Competency Based Assessment are: Measurement of actual outcomes and performance. Linked to Industry or employment requirements - not classroom practices. Comparisons are made against specified standards - not other people. Self paced. Provides consistency across enterprises. Good assessments will be HOLISTIC - the total will be more than the parts. Some factors considered in selecting assessment methods are: Validity - ensuring the right competency is being assessed. Reliability - ensuring the result would be the same no matter where or by whom the assessment was conducted. Cost effectiveness - industry does not want to indulge in expensive assessments. Practicality - in the work environment, privacy, noise, distractions. Fairness - no discrimination: • Underpinning the core values of the organisation. • Safety - no risk to candidates in accordance with OH & S practices. • Compliance with enterprise policy and procedures. • Equal Opportunity legislation. • Occupational Health & Safety legislation.

5-Training and Evaluation

R. P. L. - Recognition of Prior Learning
Recognition of Prior Learning (RPL) is the acknowledgement of skills and knowledge obtained through: • Formal training • Work experience • Life experience The main focus of RPL is the benchmarks or competency standards achieved. It does not matter how, when or where the standards were achieved. However it is important that the applicant for recognition can demonstrate the skills and knowledge at this point in time. Why have PRIOR LEARNING assessed? To gain: • Selection into a course or training program. • Selection into a new job. • Promotion. • Status in present job. What are the benefits of RPL for organisations? • It optimises use of training resources. • It provides motivation for employees to participate in training. What are the benefits of RPL for individuals? • Shorten time taken for qualifications. • Save money. • Identify training and development needs. • Recognise self worth. What evidence is acceptable as Recognition of Prior Learning? Historical Interview data Examination of products Reports from supervisors and referees Prizes Awards Certificates Current - Performances or tests set to increase relevant current competencies.

Managing Human Resources

Training Needs Analysis
Some organisations embrace Training Needs Analysis as part of Competency Based Training (CBT) and Recognition of Prior Learning (RPL). Some issues to address are: What training needs does the organisation have, in order to meet objectives, goals and targets which have been set? What Training needs does the organisation have in order to meet National Standards? A survey could be conducted to ascertain these needs. Part of this survey could be asking staff to demonstrate their competence and have Prior Learning assessed.

WHAT DOES IT ALL MEAN? An acquaintance of ours, who is heavily involved in advanced training techniques with a very well known Australian training organisation, has rather facetiously devised a new grading standard, which is yet to be tested or applied in the academic field. It offers new competency standards which include: 100% Unbelievably competent 80% Mega competent 20% Unbelievably incompetent 15% Painfully incompetent 5% Irrevocably incompetent 0% Rampant stupidity

If your competitive advantage lies only in your equipment, your competitors can easily catch up by making the same investment.

Japanese catch cry


5-Training and Evaluation

Evaluating personal strengths and weaknesses
When you have established your goals and objectives, an analysis of your personal strengths and weaknesses is in order. The answers to the four questions below can help that analysis : • • • • What are my six strongest skills? What is my greatest accomplishment in life? Is it saleable? Why should an employer hire me instead of someone else?

Rate your self on each of the characteristics listed below. Give yourself a 5 for a major strength, a 4 for moderate strength, a 3 for a characteristic that is neither a strength nor a weakness, a 2 for a moderate weakness, and a 1 for a major weakness. Then go over these strengths and weaknesses with a friend and ask for their candid opinion. When you have developed a list of your basic skills, try to discover ways in which your skills can be used. You will be surprised at how many different types of careers can be built from a given set of skills and interests. Academic achievement (grades) ................. Ingenuity and creativity ................. 1. Salary Administrative knowledge and ability2. Job title ................. Cooperativeness 3. Job security ................. 4. Fringe benefits ................. Ambition and self motivation 5. Promotion policies Conscientiousness ................. 6. Work associates Educational credentials ................. 7. Immediate superior Intelligence ................. 8. Travel requirements 9. Reputation of company Leadership ability ................. 10. Clear job responsibilities Maturity and poise ................. 11. Supervisory responsibilities Oral communication skills ................. 12. Career development activities Written communication skills 13. Participation in ................. decision Prior work experience ................. making 14. Freedom in working Sociability ................. environment Technical competence (marketing, finance, 15. etc.) operations, research, human resources,Company policies and .................
procedural manual 16. In-service educational TOTAL opportunities .................


Managing Human Resources

Setting personal goals and objectives
When setting personal goals and objectives, you should ask yourself the following questions: What kinds of tasks or activities have I enjoyed the most? What kinds of tasks or activities have I enjoyed the least? If I could have any job I wanted, what job would it be? The best way to determine what you really want out of life is to answer such questions honestly. Some of the factors that must be considered when answering these questions are: • desired income • geographical location • amount of travel • job security • independence • autonomy • and company size What price are you prepared to pay to get ahead? Are you willing to move whenever and wherever your firm dictates? When you answer these questions, you will have clearer understanding of your goals, values and priorities. Goal analysis takes time, but without some idea of where you want to go, it is difficult to plan how to get there. What are your priorities? The list of factors shown to the right, which relate to work environments and advancement potential, can help you find out. Rate them by first dividing the items into four groups, putting the four most important to you in the top group and the four least important to you in the bottom group. Assign the other eight to the two middle groups in a similar manner. Place the numerals 1, 2, 3, or 4 in the spaces following each item to show the group to which the item has been assigned. For the top group, you should go a step further and rank the four items from most important to second most important, and so forth.

5-Training and Evaluation

Staff Appraisals
An Agenda for an Appraisal Meeting 1. 2. 3. 4. 5. 6. 7. 8. Update personnel file (addresses, contacts, etc.) Review Job Description Amend Job Description Identify performance issues Identify additional resource requirements Set and review performance targets Determine and professional development initiatives Confirm next review

Appraisal question booster Some questions (in no particular order) which may assist you to conduct a better appraisal interview. 1. Has anything changed in your life? Do we need to update your personnel file? 2. How do you set about the job you are doing? 3. What one thing could I change in the workplace that would improve your productivity? 4. How do you rate the communication within the business? 5. How do you rate me as a communicator? 6. Do you feel that you are given adequate feedback about the job you are doing? 7. What is the best way to measure the job you are doing? 8. Are we measuring that adequately? 9. Finish these phrases: a) My job would be easier if I was the one who ... b) My job would be more efficient if somebody else was responsible for ... c) The one piece of equipment (within reason) that I wish we had is ... 10. What one skill would you most like to improve? 11. How could you improve in the areas I identified as needing attention? 12. Do you agree with my assessment of your performance? 13. If you had to argue that one of my assessments of your performance is wrong, which one would it be? Why? 14. Has your Job Description become out of date in any way? 15. What course or training program would you like to do that would directly improve your on-the-job performance? 16. What course would you like to do that would develop your personal skills (unrelated to the job)?


Managing Human Resources

A Performance Review
JOB PERFORMANCE Quantity, quality, economy of operation, other. -3 -2 -1 0 +1 +2 +3

JOB KNOWLEDGE Procedures, regulations, authority and responsibility limits, others. -3 -2 -1 0 +1 +2 +3

SELF ORGANISATION Work planning, neatness, time control, other. -3 -2 -1 0 +1 +2 +3

SELF MOTIVATION Initiative, personal goals, ambition, other -3 -2 -1 0 +1 +2 +3

CO-OPERATION Work relationships, compliance, conformity, other. -3 -2 -1 0 +1 +2 +3

PRESENCE Personality, appearance, other. -3 -2 -1 0 +1 +2 +3

COMMUNICATION Expression, fluency, persuasiveness, other. -3 -2 -1 0 +1 +2 +3

ATTITUDE Towards management, company, job, other. -3 -2 -1 0 +1 +2 +3

Name ......................................................................... Position...................................................................... Date................................................................................... TOTAL RATING................................................................

Since last review

• Improvement?

• Deterioration?

• No change

5-Training and Evaluation

A Rating Form for Management
How well does the person? 1. Plan a broad programme for their division or store 2. Carry out the current programme 3. Make wise and prompt decisions 4. Delegate authority to subordinates 5. Personally supervise subordinates 6. Review and evaluate work of subordinates 7. Make contacts with outside organisations 8. Manage sales growth 9. Handle stock and expense control In your estimation, which of the following best describes the person’s attitude towards their organisation. Dedicated to helping it reach its objectives, with personal ambitions subordinated to this goal. Wants to establish a secure position for themself with the organisation. Wants to use their position as a stepping stone to a major position elsewhere. Do you feel that the person has the capacity to grow in case the business expands in size and activity? ...............Yes...............No..............Doubtful
Poorly Adequately Not Excellently observed


6 Case Studies

6-Case Studies

The 12 attitudes that indicate an efficient office
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. I know what is expected of me at work I have the materials and equipment I need to do my work right At work I have the opportunity to do what I do best every day In the past 7 days, I have received recognition and praise for doing good work My supervisor, or someone else at work, has talked to me about my progress There is someone at work who encourages my development In the past six months, someone at work had talked to me about my progress At work, my opinion seems to count The mission/purpose of my company makes me feel that my job is important My fellow employees are committed to doing quality work I have a best friend at work In the past year I have had opportunities at work to learn and grow

The changing world of work
Old Have a job Office Success equals career ladder Authority Status equals position Entitlement Loyalty to company Salaries and benefits Job security Identity defined by job Bosses and manager Employees New • Do work • Virtual space • Success equals career lattice • Influence • Status equals impact • Marketability • Commitment to work and self • Contracts and fees • Personal freedom/control • Identity defined by and organisation circumstances and work done • Customers, clients and leaders • Vendors


Managing Human Resources

A Human Resources Check List
Is the correct priority being given to the interests of employees, customers, shareholders and the community? Are you familiar with the mainstreams of technical change as they affect your organisation? Do you know how to obtain information and advice? Do you intend to initiate change? Is your organisation keeping pace with the technology in your industry? Are new technologies likely to undermine your own competitive position? Are you investing sufficiently in R&D and product development to provide product and market leadership opportunities? Is there resistance to change in the organisation? Is management receptive to change and practised in its implementation? Are all employees informed about, and participate in, decisions affecting them directly? Is the participation genuine or contrived? When introducing technological changes do you think them out in terms of the needs of people, or mechanistically? Do you consult your work force about likely changes and invite their co-operation? Does your organisation aim to develop fully the potential of individuals throughout their careers? How do you assess employees for retraining? Are your contacts with schools, and the community sufficiently close? Is there scope for a relaxation of some of the traditional habits of employment? (Flexible hours, part time work, job sharing, phased retirement.) Is the perpetuation of privileges and distinctions at different levels of the organisation generally acceptable?

Are you too forthright?
What you really want to say
My efforts mean nothing to this organisation I was neglected and overlooked for training and promotion This organisation does not care about anyone’s family Everyone hates or detests the boss I feel as though I am underpaid I am sick of the poor reputation and work standards of this organisation

How to say it
Communication and feedback between management and staff are poor Training and career development programs were insufficient or did not help me. I need to work somewhere my family commitments are recognised. That does not happen here. Our boss does not have the respect of staff because their management skills are lacking. My new employer pays me what I am worth. To me, the goals of this organisation are unclear.

6-Case Studies

Economies of Scale
In the early 1990’s, a manufacturing company based in Sydney found a lucrative niche market for it’s products and continuously expanded their production and facilities. In due course, the demand for the company’s products grew ten fold. A few years later the company management decided to carry out a meaningful survey of the cost benefits and economies of scale they thought they had achieved by producing 10 times more product. They were amazed at the results, which in simplified form were, originally:10 production people were producing 100 units per hour, which required 10 people and 1 supervisor. When the company’s production had increased 10 fold to 1,000 units per hour they required not 110 people (10 times as many) as thought but 196 people, comprising:• 100 production people • 10 supervisors • 1 manager • 3 assistant managers • 18 people in human resources • 19 people in long range planning • 22 in accounting and procedures, and • 23 in purchasing and expediting When management had recovered from the initial shock at the vast increase in people, they realised that this diseconomy of scale was not all just a bureaucratic proliferation and empire building, (though some of that was obviously inherent). Management realised and accepted grudgingly that their major problem was the Big is good college of organisational management syndrome. Organisations and companies take business processes such as purchasing, accounting and expediting and create fragmented departments with bureaucratic job titles, inflexibility, lack of responsiveness, walls and barriers and major increases in non productive overhead costs. Invariably in this situation customer focus is lost and activity becomes more important than results, with lack of innovation, and constantly increasing overheads and ‘analysis paralysis’. These days of course, this company no longer exists in this form. Most people are able to identify an organisation with these problems! Keeping close to the customer! A suburban bus company accused of failing to pull up at bus stops to pick up passengers, said it would never be able to keep to the timetable if it did!


Managing Human Resources

Community Obligations and Charities
Many organisations express their acceptance of their obligations to the community in which they operate by apportioning a percentage of after tax profits for allocation to appropriate causes and projects. This expression of the organisation’s acceptance of its obligations to the community in which it operates should create or reinforce the operations and activities of the organisation in a variety of ways to create benefits for both the organisation and the beneficiaries. Some goals in this respect might be: • To reinforce organisational philosophy and values, particularly that of being a responsible unit in society. • To plan and integrate organisational participation in charity, community, professional development and management development activities which are to the mutual benefit to all concerned. • To increase identification of employees with the organisation and the community, with charity projects supported by the organisation with a positive motivational impact. • To underline the importance of profits from another perspective, by relating implementation of charity donations to profitability. • To give tangible expression to the organisation’s belief in private enterprise, responsibility, creativity and entrepreneurial action, by fostering self reliance rather than dependence, particularly on government. • To strengthen the organisational image as a market leader. • To increase the organisation’s identification with a particular segment. e.g. Aged care support, through specially targeted support to segments or niche areas.


6-Case Studies

State Sales Administration
A company placed a very large advertisement (it was the largest job ad. in the paper that week), for a STATE SALES ADMINISTRATOR. The advertisement informed prospects that their company was the state branch of a national organisation. The advertisement went on to outline the following requirements for the position which included, ‘maturity, determination, enthusiasm, results orientated, career focused, sales and service orientated, commercial appreciation, able to promote a team environment, ability to take direct control of customer enquiries, routine word processing and presentation of reports’. The advertisement said nothing about the companies products, customers or its people, and supplied no further information than that outlined here. What duties would you expect a STATE SALES ADMINISTRATOR to perform? In due course over 100 written replies were received in response to the advertisement and interviews were arranged with the State Manager for 7 people, all on a Saturday, which aroused mixed feelings in some of those asked to attend for an interview. The State Manager’s wife sat in on the interviews (without explanation as to why she was there) and asked a few questions of those being interviewed. During the course of several interviews the State Manager’s wife left the interview without excusing herself and did not return. Most applicants were surprised to find during the course of the interview that the position advertised as STATE SALES ADMINISTRATOR was merely an internal clerical position, with an appropriate pay scale. Six weeks later many of the previous applicants permitted themselves a wry smile when they saw this position re advertised. Further, some people were not surprised when they saw the same position advertised (in exactly the same terms) a further two times over the next few months. What would you have done differently?


Managing Human Resources

Some Human Resource Acronyms
AIDA Attention, interest, desire, action AQL Acceptable quality level AS Australian Standard CAD CAM C&F CBT CEO CIF CPM EDI FAS FIS FMCS FOB FOW GM Computer aided design Computer aided manufacturing Cost and freight Competency based training Chief Executive Officer Cost, insurance and freight Critical path method Electronic data input Free alongside ship Free into store Fast moving consumer goods Free on board Free on wharf General Manager OEM Original equipment manufacture OEM Original equipment manufacture OEM Original equipment manufacture PDCA Plan, do, check, act PERT Programme,evaluation and review technique POS Point of sale QA QAE Quality assurance Quality assurance engineering QBS Queen bee syndrome QCS Quality customer service QM Quality management QWG Quality workshop group QWL Quality of work life R&D RDO RHIP ROI RPL RRP Research and development Rostered day off Rank has its privileges Return on investment Recognition of prior learning Recommended retail price

HRM Human resource management HRPD Human Resource Planning and Development IT JIT Information technology Just in time manufacturing

Kaizen Japanese concept of continuing improvement in all aspects of a persons home and work life. KISS LTU Keep it simple, stupid Long term unemployed

SBU Strategic business unit SWOT Strength, weaknesses, opportunities, threats (analysis) TQM Total quality management USP Unique selling point

MBO Management by objectives MD Managing Director MIS Management (or Marketing) information system MIT Managing information technology MRP Materials resource planning

VAM Value adding manufacture VAM-M Value adding management    manufacture VSP Voluntary separation package

WIIFM What’s in it for me?

6-Case Studies

Interstate Branches
A company with two interstate branches decided that the time was opportune to open a third interstate branch in another state. The benefits were thought to be an increased national presence, increased purchasing power, a further step towards a national network of branches, and of course more profits on the bottom line. In due course an experienced manager to run the new branch was recruited and that person spent six weeks at head office ‘learning the business’ and preparing to open the new branch. On a number of occasions the new manager asked what was expected of the new branch, what was expected of him (no Job Description was ever supplied) who he would report to, what budgets he was expected to set and perform to and a number of other similar questions. The two co-directors who ran and owned the company (although they worked in offices only 15 meters apart they used to make appointments, days in advance, for meetings to see each other for discussions), kept referring to the other as the person who would be responsible as the person to report to. When the topic of budgets was raised a firm answer or commitment could never be obtained. The general feeling seemed to be, ‘We are market leaders here, and we will take this new state by storm, and in three months be in profit’. The new manager found this situation difficult, but set some budgets of his own, with optimistic and profitable projections for the next three years. In due course the new branch was opened, but after three months was struggling to gain market share, much to the surprise of one of the directors. However after a year the new branch was showing significant growth and market share and was running at a modest profit. After two years the ongoing bad feeling between the two owners was resolved by one of them buying the other one out. Despite this, the former co-owner used to enjoy visiting the branches he had helped create, much to the chagrin of the remaining director. The new branch continued to perform well and exceed the optimistic budgets the branch manager had set. Despite the change in ownership head office still did not supply any guide lines, budgets or policies for future directions. On a visit to one of the branches by the new sole owner - who was also now Managing Director (M.D.) - the manager there convened a meeting of staff and invited the M.D. to address them, expecting the new owner to say something motivational about the companies future and their role in it. The M.D. was lost for words and could not find anything at all to say, much to the embarrassment and disappointment of the staff in this branch. On a number of occasions the branch managers asked the M.D. for annual or six monthly managers meetings to discuss strategies and to

Managing Human Resources

review operations on a ‘big picture’ scale. The M.D. refused point blank and admitted that, ‘I don’t want my managers talking to each other and discussing sales and wages’. The branch managers overcame this by having regular meetings on the telephone, when they compared branch sales, wages and profitability. In order to keep in touch with the branches, the M.D. used to phone selected people working in the branches at home, to find out what ‘was happening’. The branch managers were not among the people he would phone at home. In due course the M.D. was both surprised and hurt about the feedback he was getting from suppliers and customers about the lack of respect the branch managers and people working in the branches and in the industry had for him. His reaction to this was swift. On various pretexts he fired all the branch managers over a short period. After the first manager was fired morale sagged and gossip in the branches and in the trade flourished. By the time the third branch manager was ineptly and publicly dismissed the owner / M.D. was held in ridicule. In all cases the replacement managers were inexperienced, internal people, who had been earmarked as future managers without their knowledge. Not surprisingly, a number of key people in all the branches looked for, and found other jobs. What would you have done?

Some simple People adages If competent people are hired, they will be able to do the work that is required. If they are provided with challenging responsibilities, they will respond with enthusiasm and creativity, generally performing well beyond the technical relationship of a fair day’s work for a fair days pay. The secret lies in psychological gratification in addition to monetary rewards. Economies or efficiencies were never achieved by leaving employees feeling that they are slightly underpaid. They will respond to this feeling by slightly under working. Another important difference between developing behavioural skills, and physical skills is that different personalities may require different approaches.


6-Case Studies

Major personality attributes influencing organisational behaviour
As a manager it may assist you to understand the behaviour and personality of your subordinates. A long standing definition of personality is ‘the dynamic organisation within the individual of those psychological systems that determine their unique adjustments to their environment’ According to psychologists Personality is a dynamic concept, which describes the growth and development of person’s whole psychological system. Rather than looking at parts of the person, Personality looks at some aggregate whole that is greater than the sum of the parts. Personality can be thought of as the sum total ways in which an individual reacts and interacts with others. This is most often described in terms of measurable personality traits that a person exhibits. Locus of control. Some people (internals) believe they are masters of their own fate. Other people (externals, who tend to be less satisfied with their jobs) see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance. Achievement orientation. People with a high need and motivation to succeed (internals) can be described as continually striving to do things better. They want to overcome obstacles and feel that their success or failure is due to their own actions. Authoritarism. The extremely high-authoritarian personality is intellectually rigid, judgmental of others, deferential to those above and exploitive of those below, distrustful and resistant to change. In jobs requiring sensitivity to the feelings of others, tact and the ability to adapt to complex and changing situations this person may be viewed negatively. Machiavellianism. Named after Niccolo Machiavelli who wrote in the 16th century on how to gain and manipulate power. An individual high in Machiavellianism is pragmatic, maintains emotional distance, and believes that ends can justify the means. ‘If it works, use it’ is consistent with a highMach perspective. Risk taking People differ in their willingness to take chances. This propensity to assume or avoid risk has been shown to impact on how long it takes managers to make a decision and how much information they require before making their choice.

Managing Human Resources

Determinants of Personality
An adults personality is considered to be made up of both hereditary factors (was their Personality determined at birth?) and environmental factors (the interaction with their environment), moderated by situational conditions. HEREDITARY refers to those factors which were determined at conception. e.g. Physical, stature, facial attractiveness, sex, temperament, muscle composition and reflexes, energy level, and biological rhythms, who your parents were and their biological, physiological, and inherent psychological makeup. The HEREDITARY approach argues that the ultimate explanation of an individuals personality is the molecular structure of the genes, located in the chromosomes. The HEREDITARY argument can be used to explain why someone’s nose resembles her mothers or why someone is a good athlete, when their parents were also. If all Personality characteristics were completely dictated by hereditary, they would be fixed at birth and no amount of experience would alter them. ENVIRONMENT concerns the culture in which we were raised - our early conditioning; the norms among our family, friends, and social groups; and other influences that we experience. Culture establishes the norms, attitudes, and values that are passed along from one generation to the next and create consistencies over time. SITUATION influences the effects of hereditary and environment on Personality. An individual’s Personality, while generally stable and consistent, does change in different situations. Different demands in different situations call forth different aspects of one’s Personality. SITUATIONS seem to differ substantially in the constraints they impose on behaviour - some situations may constrain behaviour e.g. Church or a job interview, while others such as a picnic in the park constrain few people. Change is inevitable, but growth is optional. To obtain strong results including sustained growth and profit, loyal customers and a high performing workforce the company needs to embrace the five elements of an organisation - people, process, customers, business strategies and leadership.

6-Case Studies

Personality traits
Researchers have identified 16 PERSONALITY TRAITS, which have been found to be generally steady and constant sources of behaviour, allowing prediction of an individual’s behaviour in specific circumstances by weighing the characteristics of their situational relevance

1. Reserved 2. Less intelligent 3. Affected by feelings 4. Submissive 5. Serious 6. Expedient 7. Timid 8. Tough-minded 9. Trusting 10. Practical 11. Forthright 12. Self-assured 13. Conservative 14. Group-dependent 15. Uncontrolled 16. Relaxed

Outgoing More intelligent Emotionally stable Dominant Happy-go-lucky Conscientious Venturesome Sensitive Suspicious Imaginative Shrewd Apprehensive Experimenting Self-sufficient Controlled Tense


Managing Human Resources

Some Euphemistic Translations
Business speak for the new millennium
Alternative body image, person with an Charm free Cerebrally challenged Consensual monogamy Cosmetically different Corporate recovery services specialist Corporate downsizing Corporate right sizing Differently abled Dipstick Equity retreat Experientially enhanced Fop, a Funding, lack of Gross national product Harvesting Geographical mobility will be encouraged Management Initiated Attrition Market adjustment Member of the career-offender cartel Member of the mutant albino generic-regressive global minority Motivationally deficient Non discretionary fragrance Persons with difficult to meet needs An obese person Boring Stupid Exchanging sex partners Ugly Bankruptcy accountant Retrenching workers Firing large numbers of workers Physically or mentally disabled Originally a device for measuring oil levels Stock market crash Old Someone whose coat and trousers match Excuse for most forms of inaction Politician’s measure of economic welfare Mass slaughter of helpless fish Extended country sales calls needed IBM talk for firing Fall in stock market Mafia member White person Lazy Body odour Serial killer

Re-visiting a site Bombing a site previously bombed Service users Recipients of government benefits Servicing a target Bombing somewhere to ruins STD Once a form of telephone communication Severely euphemised Disabled Spend more time with my family (coalition) Have accepted a board position Spend more time with my family ( socialist) Have accepted a media position Statutory senility Retirement age Terminally inconvenienced Dead Vertically challenged Short


6-Case Studies

Rating your Manager
This rating form can be used by staff to rate their managers Rate on a scale of 1 (strongly disagree) to 5 (strongly agree). Disagree 1 2 3 When assigned tasks, I thoroughly understood what was expected of me. When assigned tasks, I understood how they fitted into the overall aims for the engagement. Help was available when I needed to have questions answered. I received prompt feedback on my work, whether good or bad. When corrected for something I did or omitted, it was done in a constructive way. I was kept informed of things I needed to know to do my job properly. I received good coaching to help me improve my performance. I had the freedom to make the necessary decisions to do my work properly. I was actively encouraged to volunteer new ideas and make suggestions for improvement. Team meetings were conducted in a way that builds trust and mutual respect. In this engagement we set very high standards for performance. I felt I was a member of a well functioning team. My work made good use of knowledge and ability. My engagement helped to learn and grow. My work was interesting and challenging. TOTALS

Agree 4 5

Managing Human Resources

Are you a people person?
Enter your response in the appropriate column • For a mostly answer put a 3 in the mostly column • For an occasionally answer put a 2 in the occasionally column • For a hardly ever answer put a 1 in the hardly ever column
Mostly Hardly Occasionally ever

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Do you treat employees’ feelings as valid? Are you scrupulous in keeping confidences? Are you able to reassure insecure employees? Do you support employees in taking risks? Are you able to solicit employees feelings, ideas and solutions? Do you allow employees to make their own decisions? Do you genuinely care about your employees? Can you empathise with employees’ feelings? Do you assist employees prioritise difficult tasks? Are you patient? Do you ensure the work environment is free of distractions? Are you able to instil your employees with confidence to solve their own problems? Do you allow your employees free rein to air their grievances? Do you take your employees’ interests, skills and values into account when assigning tasks? Do you know your employees’ career goals so you can match future promotions? Can you give your employees the space for personal grief after they suffer loss? Can you step back from your own ego and avoid acting like an expert when discussing personal problems? Do you have a strong sense of the ridiculous and an ever-ready sense of humour about life at work?
TOTAL Scoring higher than 50 - your skills are excellent 40 - 49 - your skills could do with a brush up below 40 - you really need some work on your people skills

6-Case Studies

Some Mistakes Candidates Make at Job Interviews
Not feeling so great about your last interview? Take heart. Chances are the interviewer has seen worse. A recent study surveyed hiring managers to identify the most common mistakes candidates make. Here are the top five categories - along with some real-life examples: 1. What They Say (or Don't Say) According to the survey, the number one mistake interviewees make relates to how they communicate. Some come in with a pre-determined script and sound as if they are reading from a textbook. Others give oneword answers with no further elaboration. While still others use profanity or ramble on about their personal problems and social lives rather than answer - or ask - questions about the job or company. Others are too candid. For example, when asked what interested her about the position, one candidate replied: "I'm open to anything; I really need to get some medical insurance." Another candidate at a children's organisation stated that he "hates kids." Those interviewing for customer service positions confessed: "I'm not a people person," and "customers are annoying." While a man applying at a drug treatment facility anxiously asked if they drug-tested employees and whether they'd give advance notice. Others complain about former bosses. And many make the mistake of bringing up money and hours-required in the first interview. But the "Too Much Information" award has to go the candidate who said: "I'm only here because my mum wants me to get a job." He was 37! 2. How They Act The second most common way candidates flub their interviews is what they do. Many of these mistakes are the result of being unprepared and knowing nothing about the job or company. Others are because candidates don't listen to the questions being asked or try to bluff their way through technical questions. Some stem from a lack of common sense or courtesy. Many hiring managers complain about candidates showing up late and the surprising number who interrupt the interview to take calls on their cell phones. One woman brought her children along. And which is worse? The candidate who asked the hiring manager to hurry up because he wanted to have lunch, or the one who pulled out a sandwich and began eating? Yet other bloopers are simply a result of nerves - or two much coffee. Several hiring managers complained of nail-biting while another watched in horror as a candidate jumped up to make a point, then turned around and fell to the floor! 3. Bad Attitudes

Managing Human Resources

The third most-cited category of mistakes has to do with the candidate's attitude. No one likes a braggart, know-it-all or name-dropper - or the candidate with the super-sized ego who demanded to be hired and said the company could do no better. Then there's the interviewee who declared he was "used to a higher class of business." On the other side of the coin, are those who show no enthusiasm. Many hiring managers complained of interviewees who show little energy or interest in the conversation. One candidate spent the better part of the interview looking at his watch. 4. How They Look Coming to the interview improperly groomed and dressed is the fourth most common mistake. Along with the usual culprits: bad posture, tattoos, facial piercings, fluorescent-colored hair and poor hygiene, hiring managers also told of a candidate who did not wear shoes, one who wore a skirt slit to her derriere, another who wore dark glasses throughout the interview and a candidate with dirty fingernails wearing jeans and a t-shirt oh, by the way, he was drunk, too! 5. They're Dishonest Common forms of dishonesty include exaggerating about achievements or misrepresenting knowledge. There's also the candidate who mentioned his arrest after saying on his application he had never been arrested - and the one who actually stole something from the interviewer's office. Besides highlighting ignorance in action, the survey confirms that truth is stranger than fiction and proves that life is not all that rosy on the other side of the interview process either.


Results speak for themselves. Effective time management is critical. No one I work with would wonder how I see their performance. I want to know what they are going to deliver and when they are going to deliver it.
HR practitioner


Achievement orientation 104 Acid test, the, for hiring 22 Acronyms, some 101 Adages, people 103 Analysis job 12 needs 89 ANZ Banking Group 70 Appraisal performance 13 staff 92 Are you a people person? 109 too forthright? 97 Attitudes 51, 54 of an efficient office 96 Attributes, cultural 52 Authoritarism 104 Bad boss, a 70 Banks, HR and 70 Bargaining, utility of 59 Behavioural determinants 79 Belief in the universal manager 34 Bell and Brown 70 Body language 28 Boss, bad, a 70 Boundaries 33 Buck stopper, the 67 Bureaucracy 46 Burn out 82 Business communication 41 speak 107 Career counselling 14 development 6 development processes 13 111 Case studies Cure all 48 Economies of scale 98 Human Resources, People and Flight Centre, 8 Interstate branches 102, 103 Manager, new 41 Memo 25 Moses 60 Six steps to managing your career 42 Some Mistakes Candidates Make at Job Interviews 110, 111 State sales administration 100 Volkswagen 48 What does it all mean? 89 What’s that? 4 Change executing 48 managing 47 Changing world of work, the 96 work habits 48 Charities 99 Check list, human resources 97 Coaching 13 Code of Conduct 58 Communication, human resources 41 Community Obligations 99 Company culture 50, 51 Comparing 6 Components of Human Resources 12-16 Compatibility 34 Competency based training 87 Conduct, code of 58 Conference, negotiation 62 Continuing education 15 Control, when you take 42 Counselling retirement 14 Creative negotiation 60 Creativity 36 Crisis management 53 Criteria for a satisfying job 52 Cultures 49-52 Cultural attributes 52 Cure all 48 Customers 52 Determinants of behaviour 79 Development plans, inventory of 13 processes, career Discrimination 56 Disengagement interviews 37 planning 15 Do you have a positive attitude toward success? 54 Does your workplace suffer morale problems? 81 Downsizing 54 Drucker, Peter 23 E’s, four of recruitment 19 Economies of scale 98 Education, continuing 15 Employee handbook,a 57 relations 7 welfare 7 Employees 52 Empowerment 69 Engagement, letter of 32 Enrichment, job 15 Euphemistic translations 107 Evaluation of development

activities 13 Evaluating personal strengths and weaknesses 90 Executing change 48 Expectations of people 78 Failure, why people 36 Fear 36 Feedback, systems 47 Filling a vacancy 18 Flight Centre, 8 Follow up 13 Forecasting 6 Forgetting curves 51 Four E’s of recruitment 19 Future shock 51 Future, vision 71 General Motors 54 Goals organisational 4 personal 71 personal, and objectives 91 Good leadership 70 Goward, Prue 56 Habit 36 Hand book employee, outline 57 Herzberg 73 Hewitt Associates 70 Hierarchy of needs 75 Hiring acid test for 22 10 step process 27 Holiday, signs you need a 82 Hot and cold 78 How to interview 24, 25 to keep your staff interested 38 to lose your staff 38 to recruit 22 Human Resource acronyms 101 at the banks 70 checklist 97 communication 41 components 12-16 definition 2 inventory 12 manager, role of 3 planning and development 4 policies 5 politics of Human Resources defined 2 Ideology 34 Induction 12, 32 Inertia 36 Internal integration 33, 34 Interstate branches 102, 103

Managing Human Resources
Interview disengagement 37 evaluation 30 how to 24,25 process 24, 25 questions 25 Interviewers should ensure that 24 Interviewing how to 26 Intimacy 33 Inventory Human Resource 12 of development plans 13 Job Analysis 12 changes 14 Descriptions, writing a 21 Design 13 Enrichment 15 My 64 Planning Redesign 15 /role playing 12 Rotation 15 Judgment of potential 13 Juggling 77 Keeping close to the customer 98 Lack of skill 34 Language 33 Leadership 66-72 good 70 quiz 85 steps 68 Leading a team 72 Le Boeuf, Michael, 16 Legislation 8 Letter of engagement 32 Living symbol, the 67 Locus of control 104 McFarlane, John 70 McKinsey & Co 83 Management crisis 53 is considered a mysterious act 34 rating form 94 Manager a 38 Human Resources, role of 3 rating 108 universal 34 Managing change 47 replacement 35 restaffing 35 your career, six steps, to 42 Manpower planning 12 Maslow 73, 75 Matching people 33 Measuring 6 your professionalism 60 Meetings 43 and team think 43 Memo to all staff 25 Machiavellianism 104 Mission statements 40 Morale problems 81 Morgan, David 70 Moses 60 Motivation 73, 74 and needs 76 and productivity 80 by shareholding 77 shareholding, by 77 traditional theory 73 what motivates people? 74 what motivates you? 74 Motivational determinants 79 My job, my role 64 Needs, analysis 89 Needs, work related 72 Negotiation 59-62 Conference 62 Creative 59, 60 Process 61 Utility of 59 Win - win 59 New staff, induction of 12, 32 Occupational Health & Safety, (OH&S) 55 Office, efficient, attitudes of 96 Open questions 41 Organisation, an, and its stakeholders 9 Organisational development 8 form, new 44 goals 4 rewards 14 stakeholders 9 structure 44 Organisations, typology of 45 Overall planning components 12 Owners 52 Package, salary 29 Paradigms, old and new 44 Pareto principle 56 Patterns of work 15 Pay 29 People, adages 103 at work 49

matching 33 Why do they fail? 36 will expect 78 Performance appraisal 13 review 93 Person description 20 Personal goal, a 71 goals and objectives, setting 91 improvement programs 15 evaluating 90 Personality attributes 104 determinants of 105 traits 106 Peter principles 54 Planning and development components, overall 12 disengagement 15 job/role 12 manpower 12 overall components 12 replacement and restaffing 35 retirement 15 Policies, human resources, 5 Policy formation 7 Political actions 47 correctness 101 Politics, the, of Human Resources 10 Portfolio of tools 4 Potential judgment of 13 problem areas Power and status 33 Prejudice 36 Press release, new personnel 31 Process of negotiation, the 61 staffing 12 steps in the HR process 6 Productivity and motivation 80 Professionalism, measuring your 60 Promotion is considered a just reward 34 Promotions 14 Punishments 33 Questions open 41 ten basic 63 what are they? 63

Quizzes Are you a people person? 109 Human Resource checklist 98 Leadership 85 My job - my role 64 Rating your manager 108 Rating management, a form, for management 94 your manager 108 Recognition of Prior Learning 88 Recruitment, and selection 12, 18-20, 22, 23 basics 19 four E’s of 19 steps in the process 20 Reich, Robert 2 Remuneration 7 Replacement, planning 35 Requirements, basic of good recruitment, 19 Restaffing, planning 35 Retaining scarce talent 84 Retirement planning 15 Retraining 15 Review, performance 93 Rewards 33 Risk taking 104 Role of the Human Resource manager 3 Role, my 64 RPL, 88 Salary packages 29 Satisfying job, criteria for 52 Scale economies of 98 Selection and placement, 6 process 12 major considerations 23 Setting personal goals and objectives 91 Shareholders 52 Shareholding motivation by 77 Six steps to managing your career 42 Skinner, B f, 16 Socialisation 12 Some Mistakes Candidates Make at Job Interviews 110, 111 Staff Appraisals 92 Contribution 11 Hand book outline 57 Recruitment 18, 19, 20, 22, 23 Recruitment and selection 12 Replacement 18 Rooms 46 Selection 18 Staffing processes 12 Stakeholders 9 State sales administration 100 Steps in the HR process 6 in the recruitment process 20 Strategic business planning 12 Stress and work 82 Structure 51 organisational 44 Success, attitude to 54 Supervision 13 Talent, retaining 84 Team builder, the 67 leading, a 72 think 43 Ten step hiring process, a 27 The people working for you will expect 78 snake pit of organisational politics, 10 Three legged stool, the 52 Tools, portfolio of 4 Toyota 54 Training 18 and development 6 competency based initial 12 needs analysis 89 Translations, euphemistic 107 Turner, Graham, 8 Twain, Mark 54 Twelve attitudes of an efficient office 96 Twenty work related needs 72 Typology of organisations 45 Utility of bargaining 59 Universal manager 34 Vision, future 71 Visionary, the 67 Volkswagen 48 Welch, Jack 16 Westpac 70 What are questions? 63 attributes do you require to be a workaholic? 83 causes work

dissatisfaction? 76 satisfaction? 76 do you do when people resign? 37 does it all mean? 89 goals do organisations have? 45 is business communication? 41 is Human Resources? 2 motivates people at work? 73 motivates you? 74 should staff contribute to the business? 11 type of leadership should an effective leader provide? 66 What’s that, a true story 4 When you take control 42 Why do people fail? 36 do people resist meetings 43 is it important to take care in filling a job vacancy? 18 Win-win approach to negotiation, a 59 Work habits, changing 48 place morale 81 related needs 72 satisfaction /dissatisfaction 76 Workaholic, attributes 83 Writing a job description 21

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