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What is human resource management

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  • "What is human resource management? Human resource The focus ofhuman resource management (HRM) is on managing people within the employer– management (HRM) Involvesemployee relationship. Specifcally, it involves the productive use of people in achievi..

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  • "What is human resource management? Human resource The focus ofhuman resource management (HRM) is on managing people within the employer– management (HRM) Involvesemployee relationship. Specifcally, it involves the productive use of people in achieving thethe productive use of peopleorganisation’s strategic business objectives and the satisfaction of individual employee needs. Itin achieving the organisation’sadds value by designing and implementing HR policies and practices that motivate employeesstrategic objectives and the2 to translate their know-how into productive behaviour. satisfaction of individualBecause HRM seeks to strategically integrate the interests of an organisation and itsemployee needs. employees, it is much more than a set of activities relating to the coordination of an organ - isation’s human resources. HRM is a major contributor to the success of an enterprise becauseObjectives Measurable3 targets to be achieved withinit is in a key position ‘to affect customers, business results and ultimately shareholder value’.a certain time frame. Says Gratton: ‘The new sources of sustainable competitive advantage available to organ- izations have people at the centre — their creativity and talent, their inspirations and hopes,their dreams and excitement. The companies that fourish in this decade will do so becausethey are able to provide meaning and purpose, a context and frame that encourages individual4 potential to fourish and grow.’ HRM is either part of the problem or part of the solution in gaining the productive con - tribution of people. Leading companies such as Blackmores, Coca-Cola Amatil, Google, GeneralElectric, Johnson & Johnson and Microsoft recognise that human capital is their most importantresource and take action to maximise it by: focusing on selecting, developing and rewardingtop talent; encouraging open communication, teamwork and collaboration; and refusing totolerate poor performance or compromise their long-term objectives for short-term gains (seefgure 1.1). As the global business environment becomes more competitive, human resources5 are becoming even more critical to organisation success. Figure 1.1 Best employers Are able to Treat people as Have strong Carefully select Encourage Have managers adapt important positive cultures new hires innovation who are trusted to change Provide \u001fexible Recognise work schedules performance Encourage Have a credible frequent and competent BEST EMPLOYERS and open HR function communications Provide a Demonstrate a healthy and commitment safe work to social environment responsibility Have clear and Emphasise Promote a Have a Provide compelling Encourage employee collaborative reputation for competitive objectives and diversity development culture integrity remuneration strategies Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 4PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Pfeffer, after an exhaustive review of the research literature, identifed seven dimensionsof effective people management that produce substantially enhanced economic performance:employment security; rigorous selection; self-managed teams and decentralised decisionmaking; comparatively high compensation linked to individual and organisational perfor- mance; extensive training; reduced status distinctions; and extensive sharing of fnancial6 and performance information throughout the organisation. Guest similarly found that jobdesign, employee participation and open communication, equal opportunities, family-friendlypractices and anti-harassment practices are associated with higher work and life satisfac - 7 tion. High-performance HR has a positive effect on organisation performance by increasingemployee knowledge, skills and abilities (KSAs); empowering employees to act; and motivating8 them to perform. There is a question mark, however, regarding the universal effectiveness ofhigh-performance HR for employees with low levels of intrinsic motivation (such employeesmay require more structure, more supervisory assistance and more external regulation toHuman capital The9 perform well). Performance-related pay systems, similarly, may face a hostile reception byknowledge, skills and abilities10 public sector workers. Finally, there is evidence to suggest that the effectiveness of high- present in an organisation’sperformance HR may be affected by a number of factors, such as national culture and strategichuman resources. It is11 the product of learning,orientation. education and training. Other evidence indicates that such high-performance HR management policies and practicesgenerate proftability gains, share price increases, higher company survival rates, increasedSocial capital Describessales, higher export growth, increased organisational commitment and lower labour turn- the strength of personal12 over (see the Research Flash). Reinforcing this, a study by Edmans found that US frms withrelationships existing withinhigh levels of employee satisfaction (‘100 best companies to work for in America’) generatean organisation. It promotesknowledge sharing, employeehigher superior shareholder returns through the use of more advanced approaches to recruit- 13 motivation, teamwork,ment, retention and motivation. Other research also indicates that the employment of high- collaboration and willingnessperformance HR practices increases the value placed on HR by senior managers and positivelyto get things done. 14 infuences both human capital and social capital. RESEARCHHigh-commitment HR practices, employeeFLASH effort and firm performance In this study, the authors examine the relationship between high-commitment HR practices andfrm performance in professional services frms through the mediator of employee effort. They alsocontribute to strategic HRM debate on whether high-commitment HR practices should be usedacross all employee groups within a frm. High-commitment HR practices (based on reciprocity andinterdependence) foster a high-quality relationship with employees. By investing in their employees,organisations encourage them to reciprocate through higher levels of discretionary behaviour(creating a competitive advantage). Because increased effort relates to their performance, it is likelythat customers not only feel a greater level of customer satisfaction, but also perceive a better levelof service. Organisations can beneft from investing in high commitment HR practices for all types ofemployees and not just those with scarce professional skills. Source: Adapted by the author from McClean, E. and Collins, C.J. (2011) ‘High-commitment HR practices, employeeeffort and frm performance: Investigating the effects of HR practices across employee groups within professionalservices frms’, Human Resource Management, 50(3) pp. 341–63. Research by Chang and Chen found that HR activities such as training and development,human resource planning and performance appraisal had a signifcant impact on employee15 productivity. Collins and Smith established that HR practices focused on employee commit- 16 ment were linked to increased trust, cooperation and knowledge sharing. Research by Sun,Aryee and Law also determined that HR practices were positively related to customer service17 and employee willingness to help others. A recent study similarly suggests that employeehelping behaviour (a contributor to organisational fexibility and performance) is infuencedStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management5 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.18 by the way in which organisations manage their HR. Other fndings also indicate that thestrategic HR roles of change agent, strategic partner, employee champion and administrativeexpert facilitate organisational learning capabilities and psychological empowerment, which19 lead to higher employee commitment. Finally, a study by Bjorkman and Fan showed a posi- tive relationship between organisational performance and the extent to which the organ- isation used ‘high-performance’ HRM policies and practices and integrated its HRM strategies20 with its business strategies. The managing director of Fedex Australia, says, ‘If we takecare of our people, they will take care of our customers. And if we have satisfed customers,21 they will take care of our profts’. Consistent with this, other research shows that poor22 HRM practices are linked to poor performance. The evidence is clear (if unappreciated) —high-performance HRM policies and practices are associated with superior organisational23 performance. Furthermore, a Hay Group study showed that the most admired companiesFASTFACT A Gallup survey foundin the United States are more focused on strategic issues and more successful in creating a24 that more than 80 perworkforce that is competent, loyal and committed. In turn, it appears that organisationscent of Australian workersemploying high-performance HR managers are perceived more positively and as being moreare not engaged and that25 skilled. Related to this, other research shows that job satisfaction, effective organisationaldisengaged workers arecommitment and effective wellbeing at work are all related to the perceived image of thethree times more likely to27 26 take a ‘sickie’. organisation (see fgure 1.1). The HR manager, as with any other functional manager in marketing, production orfnance, is responsible for performance. The position exists foremost to help achieve thestrategic business objectives of the organisation. If it does not, the position will becomeredundant. Yet the evidence suggests that few HR managers have a good understanding28 of the businesses in which they work. This has led to the biting criticism that HR man- agers are unable to describe their contribution to the organisation’s success except in29 trendy and unquantifable terms (see fgure 1.2). A survey by Fairfax Business Researchshows that a signifcant proportion of managers believe HRM’s major contribution is as a30 provider of information. According to Ulrich, HR people spend 60–80 per cent of theirtime in administrative activities and less than 20 per cent on the gutsy roles of strategic31 partner, employee advocate and consultant on important HR issues. Research by Daintysimilarly suggests that many Australian HR managers remain marginalised from strategy32 formulation. A HR Pulse survey showed that while senior managers overwhelminglythought HR was critical, less than half felt that HR was functioning effectively in their33 organisation. HRM jargon Overuse of jargon such as ‘talent’, ‘attitude repositioning’, ‘thought showers’, ‘best of breed’,‘high-octane brainpower’, ‘relentless passion’; and fuffy nonsense such as ‘managed forvalue’ (being fred), ‘value pool’ (employees), ‘investing in talent additions’ (hiring), ‘deep-divegranular person’ (job requirement), ‘north-facing metrics’, ‘actualising focused deliverables’,‘intensely focused desire’, ‘building a talent war chest’ and ‘integrity is in our DNA’ gainHR managers no credibility. Such ‘management speak’, however, shapes the organisation’sculture, advertises management values, acts as a pressure for conformity, and has acorrosive impact on the effectiveness of communications and the community’s perceptions of34 the organisation. Classic examples of HR waffe include the plea for organisations to ‘expand their talentmanagement agenda from a narrow and tactical focus on human resources activities around theemployee life cycle, to a broad and strategic focus on highly integrated systems of capabilities35 fundamental to business strategies and operations’, and assertions that ‘our customertransformation program supports our family of brands with a framework to measure success onFigure 1.2 36 how we delight our customers’. HRM jargon Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 6PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Industrial Workforce Globalisation Culture Remuneration Nature of work relations demographics • Reduced job security • Ongoing transfer of Ongoing push for a • More elderly workers • Increasing complexity • More casual andskilled and unskilled corporate culture in the workforce as programs required part-time work • Demand for greaterwork overseas which promotes: for domestic andlabour fexibility • Increasing numbers • Reduced job securityinternational• Search for foreign • Trust of highly skilled • Cost pressures • More independentemployees andtalent to work on female workerschallenge the • Employee ‘free agent’ workerspermanent andprojects in Australiatraditional work engagement • Increasing numbers • Technology continuescontingency workersweek, penalty rates • Increasing worker of low-skilled male • Flexibility to simultaneously • Ongoing communityand wage relativities fows (in and out) of workersde-skill many jobs • Attraction andpressures withAustralia • Increasing industrial • More women in and eliminate manyretention of talentreference to seniorunrest as technology, • More diverse professional and mundane jobsexecutive remuneration • Innovationcompetitive pressures workforce managerial positions • Workers expected to • Focus on improving • Performanceand global outsourcing • More knowledge be more fexible,the connectioneliminate whole • Collaborationwork outsourced independent andbetween pay andcategories of jobslocally or overseas entrepreneurialperformance • Pressure to adoptvia the web • Workers expected to2-tier pay systemsrelocate to where the • Trade union push forjobs aregreater labour • Increasing numbers market regulationof international/ • IR environment interstate/regionaldominated by confictcommutersas employers and • Separation oftrade unions competework–leisure timefor greater workplacebecomingcontrolincreasingly blurred • Unionisation ofprivate sector workerscontinues to decline HR MANAGER Activity-based working Technology Productivity • Pressure to reducerental costs Displaced • Robots replaceLegal workershuman labour • Challenge to traditionalmanagement style • Focus on HR activities • Increasing rates ofwith the greatestskill and job • Workforce fexibility • Personnel withoutstrategic impact • Increasing workplace obsolesencenecessaryskills and a strongregulation • Pressure to improve • Reduced need for • Reliance onwork ethic become aemployee productivity • Demand for HR workers to besophisticatedpermanentlyand fexibilitymanagers to have physically located intechnologymarginalisedlegal expertise an offce or factory • Demand for HRM to • Requires a underclassdemonstrate it adds • Rise in unfair • Creates almostcollaborative culture • Political pressure forvaluedismissal and adverse instant demand for • Performance organisations toaction claims • Adoption of world new skills and waysassume greaterassessment onof workingbest practicesresponsibility for • Increasing legal riskscontribution andassociated with HR • Destroys more jobsoutput and not on employee education • Focus on creativityand training decisions than it createspresenteeism and innovation Figure 1.3 HR changes and challenges Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management7 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Bottom line Refers to a The HR function is recognised for contributing to thebottom line, not for being performed by37 fnal result, such as netnice people with good human relations skills. Confusing people skills with people manage- proft after taxes. ment is a common mistake made by many HRM practitioners. The executive director of peopleand performance, ING Australia, comments, ‘We spend a lot of time on metrics and that’s prob - ably why we’ve got a seat at the table; we’re not about coming in to give everyone a big hugand talking about the softer side of HR . .. we gain more credibility by expressing ourselves 38 in numbers’. HR managers will never be accepted as strategic business partners until theyfully understand the organisation’s business and align high-performance HR strategies, policies39 and practices with business strategies (such as customer satisfaction). According to Walker,managers ‘do not perceive people-related issues and initiatives to be as important as fnancial,40 sales and other business concerns’. This is despite studies showing that frms can beneft fromhaving HR managers as part of their top management and that HR programs have a positive41 impact on organisational performance. Australian research, for example, demonstrates that42 better-performing companies have HR representation at board level. Consistent with this,Bartlett and Ghoshal argue that to develop a sustainable competitive advantage, HR activities43 must be viewed strategically with HR represented at top management level. Finally, a reviewof research studies by Liu and others showed HRM added signifcant value via increased prod- 44 uctivity, decreased employee turnover and greater fnancial returns. Clearly, there is a needfor HR managers to create a better understanding among line managers of the valuable con - tribution to be made by HRM and to adopt strategies to improve their relationships with line45 46 managers. Says Cascio, ‘It’s time for HR managers to step up and be counted’. To do this, HRmanagers must have a vision for the organisation's success, make decisions based on hard data47 and accept responsibility for their decisions. Alas, according to one critic, ‘HR is the corporatefunction with the greatest potential — the key driver, in theory of business performance — and48 also the one that most consistently under delivers’. DOCTOR Dear Dr HR HR My CEO says that Australian living standards will drop unless we work harder and smarter. What doyou think? HRM and management Management The art HRM is management, but management is more than HRM. HRM is that part of managementof getting things donedealing directly with people, whereas management includes marketing, management infor- through people. mation systems, production, research and development, and accounting and fnance. Becausethe purpose of HRM is to improve the productive contribution of people, it is intimately relatedto all other aspects of management. Managers manage people, and the management of anorganisation’s human resources is primarily a line or an operating management responsibility.The degree to which HRM activities are divided between line or operating managers and the HRmanager (and their departments) varies from organisation to organisation. The precise balancebetween line and HR management is determined by an organisation’s strategic business objec- 49 tives, its culture and structure and the quality of its operating and HR managers. A human resource specialist in one organisation, for example, may directly handle all nego- tiations with unions, while in another organisation operating managers may take responsibilityfor all union negotiations (the HR manager may have an advisory role or no involvement at all).Top management recognition of HRM’s effect on organisational performance and a belief thatHR is too important to be left to HR managers mean that some line managers now compete with50 HRM specialists for HR responsibilities. One survey, for example, found that line managershave increased their role and responsibility for HR matters (especially in occupational healthand safety, recruitment and selection and human resource development) and that HR managers51 have little or no infuence over key decisions. Consistent with this, there is evidence indi- cating that line managers, rather than HR managers, have become the organisation’s changeStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 8PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.52 agents and that HR managers are being marginalised. One CEO, for example, sees himself asthe primary architect of human resources, while at NAB line managers are being trained as53 people managers. Research, however, suggests that the devolution of HR to line managers can lead to roleambiguity, confict, loss of credibility, reduced competence and execution diffculties. Theseproblems, furthermore, can be aggravated by HR managers resisting such changes because of54 fears of losing their status and power. In contrast, another study suggests that the devolutionof HR activities to line manages improves the image of the HR department and sees HR less55 involved in administrative work and more involved in strategic activities. Not surprisingly,the devolution of HR to line managers is a controversial issue. Adding to the debate is a recent trend for HR managers to incorporate other functions intotheir portfolio of responsibilities; for example, corporate affairs, marketing, communi cations andbusiness strategy. Barbara Chapman, Commonwealth Bank’s Group Executive Human Resourcesand Group Services, for example, is responsible for HR, marketing and communications; and56 QBE Insurance’s senior HR manager is responsible for people and communications. Such expanded responsibilities have identifed the HR manager as a core member of themanagement team rather than an isolated professional specialist. Lawler, echoing this approachargues for an integration of functions that drive organisational effectiveness and for HRM toassume a new identity. The HRM function, according to Lawler, should become the organ- isational effectiveness function and include HR social responsibility, communications, strategy,57 organisation design and sustainability. Unfortunately, HR too often fails to clearly articulate its purpose and value. For example,research indicates that some companies have simply renamed their personnel function as ‘HR’without any change in its administrative focus or the adoption of a strategic role, and there is58 a signifcant gap between rhetoric and reality. HRM practitioners who do not add value havequickly proved to be dispensable. Organisations needing to trim overheads or reduce corporate59 fab cut HRM. Job insecurity in times of economic downturn is a major source of stress for60 HR managers. Says Mercer: ‘Most human resource managers constantly feel the pressure thatcomes from being on a company’s payroll without ever proving their worth in the company’sactual bread and butter business. They do not thrive. For this reason, HR managers neverensure for themselves secure positions or career progression’ and they remain absent from the61 boardroom table. ‘Without being able to easily talk about fnance, marketing, customers,technology, competitors and business strategies’, says Ulrich, ‘HR professionals will always be62 an afterthought.’ In Japan, however, HR managers are generalists who have experience in other functions(such as accounting and marketing). As a result, an appointment to HR is seen as a spring- board to top management. This is in contrast to Australia and the United States, where very63 few HR managers become CEOs. Comments Ann Sherry, CEO of Carnival Australia: ‘Myhuman resources experience makes me a better boss. HR is a great training ground for business64 leaders.’ DOCTOR Dear Dr HR HR What makes for a successful HR manager? Approaches to HRM Instrumental HRM StressesTwo extreme theoretical approaches to HRM can be distinguished: instrumental HRM andthe rational, quantitative65 and strategic aspects ofhumanistic HRM. The instrumental (or hard) approach stresses the rational, quantitative andmanaging human resources.strategic aspects of managing human resources. Performance improvement and improved com - Performance improvementpetitive advantage are highlighted. It is supremely important to the hard approach to HRM toand improved competitiveintegrate HR policies and practices with the organisation’s business strategy, with the emphasisadvantage are highlighted. being on human resource management. Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management9 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Humanistic HRM Recognises In contrast, the humanistic (or soft) approach, while still emphasising the integration of HRthe need for the integrationpolicies and practices with strategic business objectives, recognises that competitive advan- of HR policies and practicestage is achieved by employees with superior know-how, commitment, job satisfaction, adapt- with the organisation’sability and motivation. Employees are seen as proactive contributors to the organisation’sstrategic objectives,strategic business objectives rather than as passive units to be allocated rationally along withbut places emphasis onany other factor of production. Consequently, the soft approach emphasises employee develop - employee development,ment, collaboration, participation, trust and informed choice. The aim is to generate resourcefulcollaboration, participation,trust and informed choice. employees through HRM. NEWSBREAK Mars and Venusin closer orbit By Fiona Smith If chief executives and human resourcesteam leaders often misunderstand eachother, it could be because they speak adifferent corporate language. Only 3 per cent of chief executiveshave come from human resourcesbackgrounds, and HR operatives areoften accused of not understanding theimperatives of the business they work for. However, the managing directorof Murchison Metals, Greg Martin, is‘bilingual’ — being one of the few withexperience in both worlds. Martin startedhis career in HR — specifcally, industrialof the relationship between leaders andof the infrastructure division of Challengerrelations. the heads of human resources. Financial Services Group. ‘People talk about CEOs and heads‘Heads of HR have really become aMartin says that when he started hisof HR as being like oil and water. Orstrategic partner to the business. They sitcareer at AGL 30 years ago, the head ofsometimes they say CEOs are from Marsaround the top table and they are listenedHR was actually ‘head of IR’ (industrialand HR people Venus. The CEO talks aboutto these days. The biggest change I haverelations). In this case, it was a formertype A behaviour and their mentality ischemical engineer who was brought seen is that the language of HR and thevery much around competition and therole that HR heads play in businessesin to ‘fght the good fght against thelanguage of business schools and militaryunions who were running amok’. Human have fundamentally morphed. Thesesymbolism and competing and winning.days, heads of HR have to understand theresources departments that did notIf you look at the HR fraternity, typically itoperate as de facto IR departments were business and, increasingly, the reasonsis drawn from those who predominantlythat the agendas don’t clash is that the‘laboratories’. have social sciences backgrounds: usually‘This is where people did all sorts of heads of HR sit around the top tablefemales, who are taught not to competeinteresting things in a very inward-looking as an equal and are part of making thebut to help the wounded and to cooperateway, not really at all focused on what the decisions.’ and to look after the less fortunate. So,business was about, in many instances. In Martin says that heads of HR nowcoming from quite different perspectives,fact, they were often ignored and typically have an understanding of the real timeyou’d have to say there are going to bespoken to only at times when salaries pressures of the CEO and that the ‘worldfreworks. These two personality types areis grey’. ‘Things need to be done quicklynever going to get on. And I think that is and pay and remuneration were beingtalked about or when it was time to do in a business.’ probably true, historically.’ something that the line managers didn’t The relationship between HR and theMartin’s portfolio includes roles aschairman of Grant Samuel Infrastructure want to do — the diffcult and hard jobs CEO needs to be one of mutual trust andof moving people on.’ respect, he says. The head of HR has toPartners and non-executive director ofSantos. He spent 25 years with AGL, Martin says that in his 30-year career he have the courage to be able to tell leadersincluding fve years as CEO, and was CEO has seen a fundamental shift in the quality what they do not want to hear. Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 10PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Source: Extract from Smith, F. (2012) ‘Mars‘One of the most important roles absolutely pathetic and the frst thing youand Venus in closer orbit’, Australian Financialheads of HR play these days is acting as want to do is slash costs or whatever?Review, 24 April, p. 50. a confdant, as a coach, as a counsellor How do you get that balance rightand as a mentor. ‘They need to act like between the short-term and the long- Switzerland, in effect.’ term sustainability of the organisation?Martin acknowledges that even in the Because I do think most CEOs todayEXERCISE new empowered world of HR, clashes still get the fact that people are the mostThe Newsbreak outlines some ofoccur. important thing in an organisation. If youthe shifts that have taken place in‘Where the friction comes is often in look at the Australian economy, we areorganisation HR over the past fewterms of priorities emphasis and getting a services economy. And service is justdecades. What further shifts do youthe balance right — because that is a euphemism for people, which meansthink might occur over the comingwhere the debate typically tends to be. that it is the people in that business whoyears? Consider the increasing roleWhat do you do when the organisation’s run that business, who really produce the that technology plays in contemporaryproft for the next six months is looking results.’ workplaces. The hard approach clearly risks creating industrial confict. Perhaps less obvious is that thesoft approach can also create union problems. Trade unions, for example, may have seriousobjections on ideological and practical grounds to performance appraisal, pay-for-performanceand incentive systems that refect an individualistic rather than a collectivist approach to themanagement of the workforce. Furthermore, HRM’s stress on mutual interest, cooperation,communication and other soft aspects may be seen as nothing more than cynical manipula- tion of workers and a means to weaken the power of the union. Consequently, HRM and trade66 unions may be regarded as incompatible, with HRM viewed as just ‘old wine in a new bottle’.67 In practice, it appears that HR managers are well able to reconcile both roles. Tiffany Green, aHR Practitioner of the Year, for example, states ‘I have developed a reputation for representingwhat I believe to be the right thing for the business, while exhibiting fairness for employees,68 even if it means challenging those above me’. The multiple roles of the HR manager Personnel administration, with its focus on records maintenance and employee recreationactivities (‘picnics and payroll’), is generally regarded as a low-status cost centre, a repositoryfor the organisation’s ‘dead wood’ and irrelevant to the success of the business. As a result, HRmanagers, whatever their individual ability, too often suffer the stereotypical image of being‘harmless people who spend their time worshipping policy manuals, arranging social activities69 and generally accomplishing little of fundamental importance’. Rapid change and increasing competitive pressures, however (see fgure 1.3), have seen amore complex and demanding HR role emerge (characterised by increased responsibilities,70 greater visibility and direct business impact) (see fgure 1.4). A vice president of humanresources, for example, says, ‘Successful HR leaders now must have a vision for their com - pany’s success, make hard decisions based on empirical evidence and accept responsibility for71 the results of those decisions’. Today’s HR manager, as a result, is expected to understand the business as well as any line72 manager, and to be their equal in contributing to the organisation’s competitive success. Todo this, the HR manager must be able to develop and implement HR strategies that supportthe organisation’s business objectives, improve productivity and enhance employee well- 73 being. This shift, however, has been criticised for marginalising employee-focused HRM res - ponsibilities and downgrading ethical considerations. It is also argued that the change froma pluralist approach to people management in favour of the unitarist approach of HRM has74 meant HR managers have become too management focused, to the detriment of employees.According to critics, this shift has created role confict, damaged HR creditability and chal- lenged HR’s role as an employee advocate (especially in times of economic stress). As a con- sequence, it is asserted that the HR practitioner may face a personal ethical dilemma as HRStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management11 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.policies and practices refect more and more ‘hard’ HRM — emphasising organisation as75 opposed to employee needs. There is, however, considerable evidence to show that high-performance HR policies and practices enhance both the image of HR and organisational per - formance, and have positive effects on employee capability and motivation (which translate76 into a more competitive workforce and successful organisation). Finally, recent researchshows that employee-centred and strategic roles are not necessarily opposed and can be suc- 77 cessfully managed by HR professionals. The changes in the HR manager’s role have also launched an expansion of the HRM port- folio of responsibilities to include other service activities (for example, public relations, com - munications and corporate services) and/or line activities such as fnance and marketing. It isworth noting that other functional heads, such as chief fnancial offcers and chief legal off - 78 cers, increasingly see HR as part of their natural remit. As HRM becomes more business oriented and strategically focused, a number of key roles canbe identifed (see fgure 1.4). The emergence of the chief human resource offcer (CHRO) pos - ition, however, has made the initiating and driving of strategy perhaps the most fundamental79 of HRM roles (see fgure 1.5). Change and cultural Talent manager Employee advocate transformation catalyst • Initiate and monitor • Attract, develop and retain • Understand employeecore employeeschange and cultural needs and point oftransformation view • Identify and track highperformers not currently • Promote and audit • Act as employee voiceemployed by theemployee engagement in managementorganisationdecision making • Promote a high • Manage data on local andperformance cultureinternational talent to beemployed on project teams • Act as talent spotter/scout Organisation Board and senior executive ambassador resource counsellor • Represent organisation • Confdantin a competent and HR MANAGER • Coachprofessional manner • Adviser • Market HR to the rest • Senior appointmentsof the organisation • HR trends Strategic partner Legal adviser HR functional expert • Contribute to strategy • Ensure legal • Speak and act withdevelopmentcompliance re HR authority on HR issuesactivities • Participate in strategy • Create valueexecution • Monitor legal • Measure HR performance Figure 1.4 hazard riskre its effciency and • Raise ethical and effectiveness The multiple roles of governance issues the HR manager Strategic partner ‘HR professionals’, says Ulrich, ‘play a strategic partner role when they have the ability to trans- 80 late business strategy into action. This facilitating role allows the HR manager to become partof the business team. To achieve this, the HR manager must be able to ask appropriate questionsand contribute to business decision making. Consequently, the HR manager must have businessStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 12PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.acumen, a customer orientation and an awareness of the competition to be able to link businessstrategies to HR policies and practices. Alas, it seems that HR managers do not always fulfl thisrole ofstrategic partner. Research suggests, for example, that only a minority of CEOs involve Strategic partner Refersto HR managers beingtheir HR managers in formulating business strategy and that many Australian HR managers81 an essential part of theremain on the periphery of strategy formulation. Australian frms also lag behind overseasmanagement team running an82 frms in the adoption of sophisticated HRM policies and practices. This, despite clear evidenceorganisation and contributingthat inappropriate HR policies and practices lead to employee alienation, reduced motivationto the achievement of the83 and labour unrest. organisation’s objectivesMore positively, there is evidence to indicate that there is a growing awareness of theby translating businessstrategy into action. need for HR managers to become actively involved at the strategic level and recognitionthat organisations that have a CEO who appreciates the signifcance of HRM have a com- 84 petitive advantage. The rise of the CHRO role has also seen HR embedding itself moreand more in the business operations of the organisation and becoming more strategic in85 its focus, but less aligned with the HR profession. As a result, some tensions have arisenamong the ranks of HR practitioners because of the perceived downgrading of transactional86 HR work and the belief that a strategic emphasis sacrifces the interests of employees.Finally, the ‘low status, low pay’ traditionalists can regard ‘high pay, high status’ business- oriented and strategically focused HR managers as competitors who are too closely identi- 87 fed with management. HR manager as a key member of the management team •\t Know\t the\tbusiness — understand the organisation, its fnances, its people, its products andservices, its customers and its business environment. •\t Speak \t ‘bottom-line’\tlanguage — demonstrate how HRM improves business performanceand reduces costs. •\t Add \t value — show how HRM can help line managers to better achieve their performanceobjectives. •\t Focus — emphasise HR activities with the greatest strategic impact. •\t Risk — understand and communicate HR risk. •\t Measur e\t performance — establish clear HRM objectives and measure their achievement. •\t Pr ovide\t pr ofessional\tadvice — understand and articulate HRM know-how. •\t Attain \t managerial\tskills — be a competent manager prepared to accept assignmentsoutside of HRM. •\t Make \t the\tline\tmanagers’\tjob \teasier — avoid administrative trivia and a bureaucraticFigure 1.5 ‘police’ role. Improving HRM’s status•\t Be \t pr ofessional — speak up on key issues with an independent voice. with line management HR functional expert To become functional experts, HR professionals must be able to re-engineer HR activities through Functional experts Refersto the effciency of HRthe use of technology, rethink and redesign work processes, seek the continuous improvementmanagers and their effectiveof all organisational processes, see HR as creating value and measure HR results in terms ofmanagement of HR activities88 effciency (cost) and effectiveness (quality). The HR manager, therefore, is a champion of(such as selection) soorganisational performance who contributes to strategy development, business innovation,that they create value. 89 customer service and the development of the organisation’s leaders. The functional expert is aware of current HR and related research and specialist infor - 90 mation sources, and implements best practice HR to improve decisions and deliver results.The HR manager should be able to demonstrate the connections between employee atti- tudes and business issues and outcomes (for example, how employee engagement can driveperformance, and how training can lead to employee feelings of improvement, resulting in91 increased customer satisfaction). Research indicates that the competency levels of HRmanagers in high-performing frms are signifcantly higher than those of HR managers in92 low-performing frms. Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management13 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Employee advocate The HR professional must be able to relate to and meet the needs of employees. This can beachieved, says Ulrich, by being the employees’ voice in management discussions, by beingfair and principled, by assuring employees that their concerns are being heard and by helpingemployees to fnd new resources that enable them to perform their jobs successfully (forexample, learn how to set priorities, eliminate non value-added work, clarify goals, simplifycomplex processes, become involved in decision making, increase commitments, and share in93 economic gains). ‘These activities’, says Ulrich, ‘will help employees to contribute more fully94 because they will have the competence to do a good job and the commitment to do it right’.It is essential that HR be perceived as a safe place to go where a fair hearing for employees95 is guaranteed. People with ‘small jobs and small voices’ must be able to count on HR toprotect and defend them when they are being inappropriately treated by management or theirfellow employees. Employee advocate Requires The dual responsibility of strategic business partner and employee advocate, however, can96 the HR manager to becreate tensions and the HR manager must learn how to balance the demands of both. It isthe employee’s voice inincumbent on the HR manager to consider employee responses to any HR initiatives designedmanagement decisions. to enhance organisational performance (for example, not all employees desire participation in97 decision making, regarding it simply as extra work for the same pay). Failure to do so willsee HRM facing a loss of trust by losing sight of the ‘needs, aspirations and interests of the98 workforce’. Ignoring employee-related outcomes may also result in lower job satisfaction,lower commitment and reduced performance, which, in turn, negatively affect organisational99 performance. The letter to the editor provides an interesting viewpoint. Do you agree? LETTER TOThe realities of HRM THE EDITOR Dear editor My HR staff are spending too much time organising social things for staff rather than doing actualwork. They are always organising social events like sausage sizzles, decorating cubicles, and othernonsense when they should be managing the company’s human resources! I think our HR department is losing touch with their key responsibilities — training, inductions,and administrative tasks — and instead is focusing on making this a ‘fun’ workplace. While I don’tdisagree with having a fun workplace, I do disagree with it beingdone on work time while the company pays. Our HR team isalways organising sausage sizzles for some reason or event andwhenever this occurs, the employees inevitably spend much longerin the lunch room, and much less time at their desks. Not onlythat but the HR staff spend company hours and company moneyorganising these events and to what beneft? Last Easter, theyspent hours organising Easter egg packages to hand out to staffand then went cubicle to cubicle delivering them. How is thata productive use of time? And how does that come under theirjob descriptions? The role of HR is to advocate for the company, not the staff.They are paid by the company to support the company, not thestaff. There are unions available for staff to join to fght for theirrights. Anyway, barbecues are hardly fghting for staff rights —they’re simply a waste of company time and money! HR or social committee? EXERCISE Write a 300-word response to the letter to the editor, giving your views on the issues raised. Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 14PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.Agent for change and cultural transformation The HR manager needs to act as a change agent, serving as a catalyst for change within the Change agent A person whoacts as a catalyst for change. organisation. This can be achieved by leading change in the HR function and by developingproblem-solving communication and infuence skills. In short, the HR manager must know100 how to manage change. The HR function must also change. It has to be transformed to deal creatively and pragmati - cally with emerging challenges. By accomplishing new roles and acquiring new competencies,101 the HR function will become more critical and strategic than ever before. Gloet, for example,FASTFACT argues that one way for HRM to reinvent itself is via the development and maintenance of102 A study by human resourceslearning environments, where knowledge creation, sharing and dissemination are valued. consultant SHL found thatAlthough the CEO and top management are the ‘culture champions’, in practice, it is the HRmost employees ‘slack off’manager who is likely to spend most time monitoring and designing policies and practices tobecause their managers103 ensure that the desired culture is established and maintained. The HR manager is the onenever recognise theirwho should initiate discussions with the CEO and top management about the need for culturallong hours, extra effort or104 change (especially when the ‘real’ culture is straying from the ‘stated’ culture). achievements. Talent manager The recognition that people make a difference to organisation performance means that theeffective management of talent is vital to organisational competitiveness. The focus of theHR manager therefore centres on identifying, hiring and developing the human resources criticalto the organisation’s success. The role calls for the HR manager to target and establish dossierson potential candidates (similar to talent scouts in football clubs) who possess the knowledge,skills and abilities required by the organisation (now or in the future) to achieve its strategicobjectives. This involves the HR manager being knowledgeable about the organisation and itsshort- and long-term business objectives, labour markets, the characteristics and locations oftalented people and their current organisations. Once identifed, the HR manager will need todevelop relationships with targeted individuals, university faculties, executive search frms andrecognised industry mentors. An internet presence (especially via social networking sites) canbe used to attract and track the progress of desirable candidates (and to promote the organ- 105 isation as an employer of choice). The HR manager’s development role centres on ‘wealth created through and by people in106 the organization.’ This is particularly important in the case of knowledge workers where thedifference in performance can be great. For example, differences of twenty- to ffty-to-one arecommon. Microsoft signifcantly claim that their top software developers are 10 000 times more 107 productive than their average software developers. The recognition that it is high-qualitypeople who make the difference to business success is forcing HR managers to pay more and108 more attention to employees who add value and to quickly remove those who do not. Bybuilding skill levels the HR manager allows individual employees to beneft from increased job109 satisfaction and improved job prospects while creating value for the organisation. Organisation ambassador The HR manager is now expected to be a role model for everything the organisation stands for.The values, culture, strategies and the nature of the business itself must be clearly understoodand communicated. It is essential that the HR manager is seen as a knowledgeable resourcecapable of representing the organisation with employees, trade unions, government offcials,customers, the media and the general community. It is a given that HR managers must be110 capable of marketing the value of the HR function within their organisations. Board and senior executive resource Apart from fnancial acumen and knowledge of the business, the HR manager should be atthe forefront in contributing to the board of directors’ understanding of how HR policies and111 practices promote business success and mitigate risk. The HR manager should be regardedStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management15 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.as a valued adviser on trends (for example, the ageing population) and issues (for example,executive pay, executive performance and succession planning). The HR manager must also beprepared to tackle problems of corporate governance and ethical issues, which risk being down- 112 played or ignored by the board and senior management. Finally, the HR manager should beable to act as counsellor, confdant and coach to the senior executive team (including assistance113 in the resolution of interpersonal or political conficts). Such a role obviously requires greatdiscretion and is not without risk. Legal adviser The increasing legalisation of the workplace means that HR managers must be knowledgeableabout the law. The complexities and pitfalls associated with employment termination, EEO, OHSand FWA are such that ignorance of the law places the HR manager at risk of prosecution, pro - 114 fessional embarrassment and career meltdown. Such are the emerging legal hazards for HRpractitioners that the AHRI has introduced a scheme of professional indemnity insurance for its115 members. HR practitioners can now be prosecuted and held accountable for incompetence,wrong advice and failure to comply with workplace laws. HR managers clearly have a legal116 duty to ensure that there is organisational compliance to workplace laws. In response to thecomplex regulatory environment (which is increasingly involving activities in the HRM port- 117 folio) some organisations are appointing legal professionals as HR managers. This suggests are-examination of the education, academic qualifcations, knowledge, skills and abilities of HRpractitioners may be required. HRM activities HRM involves the acquisition, development, reward and motivation, maintenance and depar- ture of an organisation’s human resources. Certain key HRM activities must be undertaken tosatisfy these aims: each activity is interrelated and together they represent the core of HRM. Job analysis defnes a job in terms of specifc tasks and responsibilities and identifes theabilities, skills, knowledge and qualifcations needed to perform it successfully. The products ofjob analysis are job descriptions (describe the job) and job specifcations (describe the type ofperson needed for the job). Job analysis answers basic questions such as: Which tasks should begrouped together and considered a job? How should a job be designed so that employee perfor- mance is enhanced? Job analysis is signifcant because it represents a basic starting point for HRplanning and other HR activities such as recruitment, selection, and training and development. Human resource planning, or employment planning, is the process by which an organ- isation attempts to ensure that it has the right number of qualifed people in the right jobs at theright time. It does this by comparing the present supply of people with its projected demand forhuman resources. This comparison produces decisions to add, reduce or reallocate employeesinternally. HR planning is used to achieve: • more effective and effcient use of human resources • more satisfed and better developed employees 118 • more effective equal opportunity planning. Recruitment is the process of seeking and attracting a pool of applicants from which qualifedcandidates for job vacancies within an organisation can be selected. A job vacancy may be flledfrom within or outside the organisation. Some of the different methods used to recruit employeesinclude job posting, newspaper advertising, social networking sites and executive search. Selection involves choosing from the available candidates the individual predicted to be mostlikely to perform successfully in a job. Steps in the selection process include reviewing the appl-i cation forms, psychological testing, employment interviewing, reference checking and com - pleting a medical examination. Based on the information gathered, a selection decision is made. Performance appraisal is concerned with determining how well employees are doing theirPlan Action step thatjobs, communicating that information to the employees and establishing aplan for perfor - shows how an objective ormance improvement. The information generated by the appraisal process is also used for linkinga goal is to be achieved. rewards to performance, identifying training and development needs, and making placementStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 16PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.decisions. Research shows that performance appraisal (when perceived as accurate and fair) is119 a practical tool for employee motivation and development. Human resource development activities focus on the acquisition of the attitudes, skills andknowledge required for employees to learn how to perform their jobs, improve their perfor - mance, prepare themselves for more senior positions and achieve their career goals. Theseactivities substantially enhance employee (and organisational) knowledge, skills competitive- ness and capacity to adapt and change. They are also a powerful communicator that the organ- 120 isation is interested in the wellbeing of its employees. Career planning and development activities beneft both employees — by identifying employeecareer goals, possible future job opportunities and personal improvement requirements — andthe organisation — by ensuring that qualifed employees are available when needed. Employee motivation is vital to the success of any organisation. Highly motivated employees121 tend to be more productive and have lower rates of absenteeism, turnover and lateness.Employee motivation is concerned with why people do things and why one employee worksharder than another. Change and cultural transformation are the inevitable results of globalisation, new tech- nology and competitive pressures forcing organisations and employees to become more inno- vative, more fexible, more skilled and more productive. Cultural transformation is key to making122 things happen and changing the way people work. Employees who ‘ft’ with the organisation’sculture are more likely to experience confdence and satisfaction in their work. Employees who123 don’t ‘ft’ are more likely to withdraw, suffer stress and experience little job satisfaction. Howchange and culture are managed clearly affects organisation performance and employee quality124 of work life. Organisational cultures high on adaptability and involvement, with strong corevalues and a clear strategic direction, for example, are more likely to achieve positive meas- ureable results from the introduction of the balanced scorecard (see chapter 8 on managing125 performance). Likewise, corporate cultures supportive of work–life balance produce lessstrain on employees, achieve improved job performance, and have reduced absenteeism andFASTFACT 126 labour turnover. A study by WatsonRemuneration refers to the cash rewards, such as the base pay, bonuses, incentive pay- Wyatt found that whenUS employees arements and allowances, which employees receive for working in an organisation. Controversyhighly engaged, labourexists over the precise motivational impact of cash rewards, but there is no doubt that theyproductivity increasesare an important mainspring in motivating employees and reinforcing employee behavioursby 26 per cent, labourdemanded by the organisation’s business strategies. Research indicates a positive relationshipturnover is reduced and127 between pay systems and organisational performance. shareholder returns130 Benefts are sometimes referred to as indirect or non-cash remuneration. They include super- increase. annuation, life insurance, disability insurance, medical and hospital insurance, long-term sick- Industrial relations (IR) ness and accident disability insurance, annual leave, sick leave, maternity leave and tuitionTraditionally takes a broaderrefund programs. By improving the quality of work life, benefts reinforce the attractiveness ofperspective, involvingan organisation as a place to work and emphasise that it cares about its employees. industrial tribunals, tradeIndustrial relations (IR) (also called employee relations or employment relations) in this textunions, employer associationsdeals primarily with employee attitudes and behaviour and the relationships between an organ- and governments and theirroles in the making of rulesisation and its employees. If relationships are characterised by open communication, fair andgoverning the employer– equitable HR policies and practices, and high work and life satisfaction, there will be trust,employee relationship. cooperation, commitment and high performance. However, if they are characterised by poorcommunication, unfair and discriminatory HR policies and practices, and low work and lifeEmployee relations Deals128 satisfaction, there will be confict, mistrust, low commitment and poor performance. Indus- primarily with employeetrial relations traditionally takes a broader perspective, involving governments, industrial tribu- attitudes and behaviour andnals, employer associations, trade unions, industrial law, awards, terms and conditions of work,the relationships between129 grievance procedures, dispute settlement, advocacy and collective bargaining. an organisation and itsEffectivehealth and safety programs help guarantee the physical and mental wellbeing of employees. Sometimesregarded as being the sameemployees. Organisations are required to provide a safe work environment free from physicalas industrial relations (IR).hazards and unhealthy conditions. However, ER focuses moreLearning to manage diversity and successfully integrate Australia’s multicultural populationon workplace relationsinto the workforce to maximise the contribution of all employees represents a special challengethan traditional IR. to HR managers. Australia is one of the most culturally diverse countries in the world, withStone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com CHAPTER 1 Strategic human resource management17 Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved.almost 25 per cent of its population coming from non-English-speaking backgrounds. There isgrowing recognition that multicultural HR policies and practices provide signifcant beneftsby lessening the time spent explaining instructions and directions, reducing mistakes causedby misunderstanding, and reducing industrial accidents and workplace tensions caused by poorcommunication. Some organisations, for example, have reported productivity increases of up131 to 20 per cent as a result of introducing English language classes. An example of how Wes- farmers approaches diversity management is shown in fgure 1.6. Diversity at Wesfarmers Wesfarmers recognises the social and commercial value of diversity and strives to create a workenvironment which is inclusive of all people regardless of gender, age, race, disability, sexualorientation, cultural background, religion, family responsibilities or any other area of potentialdifference. While Wesfarmers is committed to fostering all types of diversity, gender diversity has andcontinues to be a priority for the Group. As set out in the Wesfarmers Diversity Policy, theGroup’s approach to gender diversity is based on four core objectives: foster an inclusive culture;improve talent management; enhance recruitment practices; and ensure pay equity. As part of Wesfarmers’ commitment to diversity, the Company strives to make its businesses aplace where Aboriginal and Torres Strait Islander people feel welcome and valued, as employees,customers and citizens. To do this, Wesfarmers has a Reconciliation Action Plan which outlinesspecifc measurable actions to be undertaken across the Wesfarmers Group, targetingemployment and community engagement. Figure 1.6 Source: Wesfarmers, Annual Report 2012, ‘Sustainability’, p. 62. Diversity at Wesfarmers HRM, productivity and organisation performance Leading organisations use a variety of performance measures (such as customer satisfaction,market share, product quality and proftability) to evaluate their performance. HRM perfor - mance can be similarly assessed (for example, by measuring absenteeism, labour turnover,job satisfaction and employee engagement). A common indicator of organisation and HRMProductivity An organisation’s performance isproductivity. Productivity can be measured at the individual, group and organ- 132 total output of goods andisation levels. In basic terms, productivity relates to the output of goods and services dividedservices divided by its totalby its input. Productivity can be improved by using the same (or lower) level of inputs, toinputs (that is, the relationshipproduce the same (or higher) level of outputs. Unfortunately, while the concept is simple, theof inputs to outputs). 133 accurate measurement of productivity, in practice, is both more complex and diffcult. Twoapproaches can be employed — total (or multi) factor productivity and single factor productivity.Total (or multi) factorTotal factor productivity is the ratio of total outputs to total inputs (labour, capital, materials,productivity The ratio of totaltechnology and energy). outputs to the total inputsTotal factor productivity: from labour, capital, materials,technology and energy. output labour + capital + materials + technology + energy Single factor productivity Single factor productivity measures the ratio of outputs to a single category of inputs. LabourMeasures the ratio of totaloutputs to a single category productivity, for example, can be measured as follows: of inputs (such as labour). Labour productivity: output labour costs and output numberof employees While labour productivity can be easily measured, it may be infuenced by changes in one ormore of the other factors (for example, new technology). Managers can therefore easily misin - 134 terpret the real reasons for a productivity change. Stone, R. J. (2013). <i>Managing human resources</i>. Retrieved from http://ebookcentral.proquest.com 18PART 1 Introducing HRM Created from ballarat on 2017-11-09 20:11:44. Copyright © 2013. John Wiley & Sons. All rights reserved."

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