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Human resource management in Australia

Chapter 1

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

Introduction to human resource management (HRM)


Objectives
Discuss the roles and activities of a companys human resource function. Discuss the competitive challenges influencing Australian companies. Discuss how human resource practices affect a companys balanced scorecard. Discuss what companies should do to be competitive in the global marketplace.

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Introduction to human resource management (HRM)


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

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Human resource management (HRM)


Refers to the policies, practices and systems that influence employees behaviour, attitudes and performance. Many companies refer to HRM as people practices.

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.1 HRM practices


Strategic human resource management

Performance Management

Learning and development

Measuring and Evaluating

HR Information Systems

Job Analysis & Design

Selection & Placement

Managing Diversity

Industrial relations

Compensation

HR Planning

Recruitment

Company Performance

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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The development of theoretical bases for HRM


Theoretical perspectives of HRM include:
Behavioural view Resource-based view Politically-influenced view.

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.2 The Harvard Analytical Framework for HRM


Stakeholder Interests
Shareholders Management Employee groups Government Community Unions

HRM Policy Choices


Employee influence Human resource flow Reward systems Work systems

HR Outcomes
Commitment Competence Congruence Cost effectiveness

Long-term Consequences
Individual well-being Organisational effectiveness Societal well-being

Situational Factors
Workforce characteristics Business strategy and conditions Management philosophy Labour market Unions Task technology Laws and societal values

Source: M. Beer, B. Spector, P.R. Lawrence, D.Q. Mills & R.E. Walton, Managing human assets, Free Press, New York, 1984, p. 16. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Features of the dominant approach to HRM


Focus on enterprise or firm. HRM is an investment in human capital. Reciprocal fit between organisational strategy and HR strategy. All managers are responsible for HRM.

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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


n*
Integration & strategic focus of HR policies Employee relations Contribution of HR to company performance Worker participation and team work Quality issues Training Flexible work patterns Devolution of function Legislative changes Economic rationalism 120 118 77 62 53 41 41 40 34 33

%
37.3 36.7 24.0 19.3 16.5 12.7 12.7 12.4 10.6 10.3

(*n=322; open-ended data; respondents may have answered more than one suggestion) Source: C. Fisher & P.J. Dowling, Support for an HR approach in Australia: the perspective of senior HR managers, Asia Pacific Journal of Human Resources, 37 (1), 1999, p. 9.

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Table 1.2 Issues with greatest impact on HR


(1995-2000)

n*
HR role in change & strategic planning Employee relations Contribution of HR to company performance Flexible work patterns Legislative changes Quality issues Internationalisation Training Worker participation and team work Technology Performance management Outsourcing
(*n=322; open-ended data; respondents may have answered more than one suggestion)

%
28.0 20.0 19.3 12.1 9.3 8.7 8.4 7.8 7.5 6.5 5.9 4.7

90 64 62 39 30 28 27 25 24 21 19 15

Source: C. Fisher & P.J. Dowling, Support for an HR approach in Australia: the perspective of senior HR managers, Asia Pacific Journal of Human Resources, 37 (1) 1999, p. 9. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Roles performed by HR professionals (Ulrich, 1997)


Administrative expert Employee champion Change agent Strategic business partner

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.3 HR roles and competencies


Evaluation Benefits Audit Data management Compensation Strategic management Organisational development Change management

Analytical, fact-based decision making

Leadership Conceptual ideas Visioning

Industrial relations Legal

Compliance Regulation Administration Control

Interpersonal team work Diversity Counselling Employee development

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

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.4 Competitive challenges influencing Australian challenges


Competing through high-performance work systems Change employees and managers work roles Integrate technology and social systems Competing by meeting stakeholders needs Provide a return for shareholders Develop employees and create a positive work environment Competing through globalisation Expand into foreign markets Prepare employees for work in foreign locations

Australian Business Competitiveness

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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The global challenge for HRM


Development of global markets Global competitiveness through HRM practices Preparing employees for international assignments

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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The challenge of meeting stakeholders needs: Table 1.7 The balanced scorecard
Perspective
Customer

Questions answered
How do customers see us?

Examples of critical indicators


Time, quality, performance, service, cost Processes that influence customer satisfaction, availability of information on service and/or manufacturing processes Improve operating efficiency, launch new products, continuously improve, empower workforce Profitability, growth, shareholder value

Internal

What must we excel at?

Innovation and learning

Can we continue to improve and create value?

Financial

How do we look to shareholders?

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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

Source: Australian Quality Council Ltd., Success stories, www.aqc.org.au Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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The challenge of meeting stakeholders needs: characteristics of the Australian workforce

Gender Ethnic diversity Structure of the economy Skill deficiencies Changes in the employment contract Changes in the place of work Employee values Legislation Ethical considerations
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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The challenge of high-performance work systems (HPWS)


Change in employees work roles and skill requirements Increase in the use of teams to perform work Changes in the nature of managerial work Changes in company structure Increased availability of HR information bases Competitiveness in HPWS
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.6 Relationship between HR philosophy and practices


Human resource management system philosophy
Guiding Principles Employee performance is valued

Practice alternatives
Mix of practices that are consistent with philosophy and are aligned with each other Mix of performance appraisals, incentive pay, promotions

Practice processes
Team-based incentive pay State-of-the-art, 360 performance appraisal

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

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.7 Examples of how HR practices can help companies meet the competitive challenges
Global Challenge Stakeholder Challenge High-Performance Work System Challenge

HR Practices
HR strategy is matched to business strategy Continuous learning environment is created

Work is performed by teams


Pay systems reward skills and accomplishments Selection system is job-related and legal Work attitudes of employees are monitored

Discipline system is progressive


Customer satisfaction and quality are evaluated in the performance management system

Skills and values of a diverse work force are valued and used

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Figure 1.8 Major dimensions of HRM practices contributing to company competitiveness

Competitiveness

Dimensions of HRM Practices


Managing the human resources environment Building human resource systems Developing human resources Rewarding human resources

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Overview of HRM topics


Part 1: Managing the Human Resources Environment Part 2: Building HRM Systems

Part 3: Developing people


Part 4: Rewarding people Part 5: Directions for HRM
Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar

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Overview of HRM topics


Part 1:
HRM in Australia Strategic HRM Legal context for HRM Analysis and design of work HR planning and HR information systems Recruitment, selection and placement Industrial relations Managing diversity and worklife balance Performance management Employee learning Employee development and career management Managing compensation Performance-related pay Managing a global workforce Managing employee retention and turnover Evaluating and improving the HR function
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Part 2:

Part 3:

Part 4: Part 5:

Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar