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84 Cards in this Set

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  • Back


Define Recruitment

Seeking and attracting a pool of qualified applicants from which candidates for job vacancies can be selected.


Define Employment Branding

Promoting an image of the company as a good employer, to create a favourable impression with potential applicants.


Define Strategic Recruitment

Linking recruiting activities to the organisation's strategic business objectives and culture.


Steps of Strategic Recruitment

1. Strategic business objectives

2. Human resource planning

3. Job analysis

4. a) Job description b) Job specification

5. Recruitment


Recruitment Activities

- Determine & categorise long/short range HR needs

- Keep alert to changes in the labour market

- Develop appropriate recruitment advertisements/literature/methods to be used

- Record the no. & quantity of applicants from each recruiting source

- Follow-up on applicants and evaluate


Stages of the Recruitment Process

1. Vacancy identified

2. Review of position

3. Update or develop position specification

4. Develop selection criteria

5. Advertising

6. Shortlisting


Define Realistic Job Previews

A method of conveying job information to an applicant in an unbiased manner, including both positive and negative factors.


Explain Employer Branding

Involves promoting an image of the company:

- competitive tool in the war for talent

- want to be employer of choice

- better able to attract & retain talent than comp.

- human wellbeing is at the centre of HRM

65% of companies are planning to increase or maintain their investment in employer branding initiative next year.


Internal Recruitment Methods

1. Computerised record system: HR manager can quickly locate potential candidates with the organisation's workforce.

2. Job posting: used to inform employees about job vacancies.


Advantages of Internal Recruiting

- Knowledge of candidates weak. & strengths

- Candidate knows the organisation

- Employee morale/motivation enhanced

- Return on investment in training/development

- Can generate succession of promotions

- Organisation needs only to hire at entry-level


Disadvantages of Internal Recruiting

- May be promoted beyond competence level

- Infighting for promotion affects moral

- Inbreeding stifles creativity/innovation

- System can become bureaucratic

- Excellent T&D programs are necessary


External Recruitment Methods

- International recruitment

- Advertising

- Employment agencies/consultants/search firms

- Outplacement firms

- University recruiting

- Employee referrals

- Professional associations

- Unsolicited applications

- Trade unions


Advantages of External Recruiting

- Pool of talent is bigger

- New insights/skills introduced

- Cheaper/easier to hire from outside

- Not members of existing cliques


Disadvantages of External Recruiting

- More difficult to attract/select new employees

- Adjustment & orientation needed

- Morale suffers amongst existing employees

- Performance is below required

- Personality does not suit company culture


Define Vacancy Shelf Life

If a role goes unfilled for three months, people start to assume there's something wrong with it.


How to create advertisements that enhance the image of the organisation


Attention: attract attention

Interest: gain interest

Desire: appealing to personal needs/wants

Action: make clear the necessary action


Define Web-Recruiting

- Via the internet (external)

- Via the intranet (internal)

- Social networking


Evaluation of Recruiting

- Productivity

- Quality

- Costs

- Time

- Soft data


Define Selection

The process of choosing the best qualified candidate/s from a group of applicants.


Define Strategic Selection

Linking of selection activities to organisation's strategic business objectives and culture.


Define Selection Criteria

Key factors in making a decision to hire or not to hire a person. May include qualifications, experience, special skills, abilities or aptitudes. They should be job-related.


Selection Policy

- Equal employment opportunity (EEO)

- Quality of people

- Source of people

- Management roles

- Selection techniques

- Employment consultants

- Industrial relations

- Legal issues

- Organisational strategic business objectives

- Costs


Candidate Fit

- Cultural fit (will fit in)

- Qualification fit (can do the job)

- Motivational fit (will do the job)

- Ability fit (can do the job)

- Experience fit (can do the job)


Benefits of good selection for the organisation

- Higher productivity

- Lower labour turnover

- High morale & motivation

- Lower incident rates

- Reduced absenteeism

- Less industrial conflict

- Better organisational performance


Benefits of good selection for the manager

- Can delegate more

- Able to concentrate on strategic aspects

- Able to focus on rewards


Define Validity

The ability of a test or other research technique to measure what it sets out to measure.


Define the Correlation Coefficient

- Positive, negative, high and low

- Typical range 0.20 - 0.50

- 1.0 is a perfect score

- 0 is no relationship



1. Concurrent validity

2. Predictive validity


Concurrent Validity

Concurrent validity is identifying a criterion predictor and giving it to a group of existing employees and correlating their scores with their job performance. If an acceptable correlation exists, the criterion predictor can be used in the selection of new employees.

- regarded as convenient and efficient

- may not be representative - challenge from EEO authorities


Predictive Validity

The criterion predictor is administered to all applicants, but the test scores are ignored when making the selection decision. After a specified period of time, the results are reviewed and correlated with a criterion such as job performance. If the validity coefficient is satisfactory, the predictor can be used in the selection process in the future.

- Most scientific

- Time-consuming

- Expensive

- Increased risk of incompetent personnel being hired


Define Reliability

The extent to which a measure (for example a test) is consistent and dependable.


Types of Reliability

1. Test-retest

2. Split halves

3. Parallel forms


Steps in the Selection Process

1. Reception of applicants

2. Preliminary interview

3. Application form

4. Tests

5. Interview

6. Background investigations

7. Preliminary screening by the human resource department

8. First selection by line managers

9. Medical examination

10. Placement on the job


Application Forms & EEO Requirements

Do not include:

- Marital status

- Residency status

- Ethnic origin

- Organisations

- Photographs

- Race or colour

- Relatives


Selection Tests

- Interest: compares interest patterns to those of successful employees

- Employment: assess the match between the applicant & the job requirements

- Aptitude: special abilities (clerical, linguistic)

- Intelligence: IQ

- Physical: physical characteristics

- Personality: Measures personality/temperam.


Type of Interviews

- Unstructured

- Structured

- Behavioural

- Panel

- Group

- Computer screening

- Video interviewing

- Assessment centres

- Polygraph

- Honesty test

- Graphology


Assessment Centre

- In-basket exercises

- Group discussions

- Psychological tests

- Interviews

- Business games


How to Interview Successfully

1. Know the job

2. Know the personal characteristics, skills, qualifications

3. Set specific objective

4. Provide the proper setting for the interview

5. Review the applicant form or resume

6. Beware of prejudices

7. Don't make snap decisions

8. Put the applicant at ease

9. Watch the body language

10. Encourage the applicant to talk a lot

11. Keep control of the interview

12. Explain the job

13. Close the interview

14. Write up the interview

15. Check references

16. Evaluate the interview process


Behavioural Interviewing

- Past behaviour is a predictor of future

- Predicts more accurately how a candidate will behave in the position

- The aim is to match up the right attributes to the requirements of the job


Approaches to the Selection Decision

1. Compensatory: manager considers all predictor information at the end.

2. Successive hurdle: manager considers each predictor at each successive stage.

Training & Development

The Need for Human Resource Development

- Business & economic changes

- Technological changes

- Organisational changes

- Social, legal and other changes

Training & Development

Principles of Learning

- Motivation

- Delivery

- Relevance

- Application

- Feedback

- Reinforcement

- Culture

Training & Development

Significance of Training & Development

- Skills shortages & gaps

- Rapidly changing environment

- Positive effects on business performance

- HR outcomes

- Organisational performance

Training & Development

A Systematic Approach

1. Assessment

2. Activity

3. Evaluation

Training & Development

A Systematic Approach: Assessment

Identify training needs

- Organisational variables

- Task variables

- Person variables

Establish training objectives

Training & Development

A Systematic Approach: Activity

Select and design programs

- location

- timing

- presenters

Conduct program

Training & Development

A Systematic Approach: Evaluation

Develop evaluation criteria

- Reaction

- Learning

- Behaviour

- Results

Evaluate outcomes against criteria

Training & Development

Methods of Training

- classroom

- simulation

- management

- on-the-job

- action learning

Training & Development

Competency-Based Learning

1. Profile the capabilities required

- identify competencies needed

- rank the importance

-evaluate the job-holder against competencies

- identify strengths & areas of remedial attention

2. Select training programs or other learning events that can develop the desired skills

3. Produce a personal training plan for each employee

4. Assess each competency in turn

Training & Development

Measures of Training Effectiveness

- Reactions

- Learning

- Behaviour

- Results

Training & Development

Core Concepts in Learning

- Relevance

- Transfer of training

- Knowledge of results

- Distribution of learning

- Whole versus part learning

- Practice and learning

- Activity versus passivity

- Learning styles

Training & Development

Learner-Centred Learning

- The need to know

- The need to be self-directing

- Greater volume and quality of experiences

- Readiness to learn

- Orientation to learning

Training & Development

Training Needs Analysis

What is the organisational context for T&D?

- Consider goals, resource, environment

- Helps determine T&D priorities

What needs to be taught?

- Determine skills/knowledge necessary

- Links back to job analysis

- Determine content/suitable methods

Who needs training? Why?

- Gaps between skills required & those available

- Links back to performance review

Training & Development

On-the-Job Training

Instruction by colleague or supervisor


- hands on experience

- relationship-building

- cost and logistics

Common problems

- lack of structure

- deficiencies in instructor skills

- wastage or customer dissatisfaction

Training & Development

Off-the-Job Training


- economical

- forum for exchange

- immediate feedback


- passive

- disconnect between theory & practice

- generic

Training & Development

Off-the-Job Learning: E-Learning


- Flexibility

- Self-paced

- Consistency


- Cost

- Unsuited to certain content

Training & Development


- Determine effectiveness of T&D

- Demonstrate contribution of HR to organisation

- Learning: acquisition of skill or knowledge

- Behaviour: change in attitude/job behaviour

- Results: Sales, productivity, absenteeism

- Basic principles: Pre/post test, Control groups

Reward Management

Define Remuneration

What employees receive in exchange for their work. Includes pay and benefits (total remuneration) or just pay (cash remuneration).

Reward Management

Define Strategic Remuneration

Involves remuneration practices being aligned with the achievement of the organisation's strategic business objective

Reward Management

Financial Rewards


- Base pay

- Incentive pay

- bonuses

- commissions

- Allowances

- overtime

- shiftwork


- Insurance

- Superannuation

- Medical and healthcare

- Childcare

- Employee assistance

- Flexible work schedule

- Holidays

Reward Management

Non-Financial Rewards


-Interesting work

- Challenge

- Responsibility

- Recognition

- Advancement

- Performance feedback


- Good HR practices/policies

- Competent supervision

- Congenial colleagues

- Safe/healthy work environment

- Fair treatment

- Opportunities for learning & development

- Open communication

- Career security

Reward Management

Remuneration Policy

A policy should:

- reflect the organisation's strategic business objectives and culture

- articulate the objectives that the organisation wants to achieve

- be communicated to all employees

- provide the foundation for designing and implementing remuneration & benefit programs

Reward Management

Remuneration Program Objectives: Organisation

- Attract and keep desired quality/mix of employ.

- Ensure equitable treatment

- Motivate employees to improve

- Reinforce key values & desired culture

- Drive/reinforce desires employee behaviour

- Ensure remuneration is maintained at level

- Control remuneration costs

- Ensure optimum value for each dollar spent

- Comply with legal requirements

Reward Management

Remuneration Program Objectives: Employee

- Ensure suitable treatment

- Accurately measure and appropriately reward performance & contribution to the achievement of the organisation's SBOs

- Provide appropriate remuneration changes based on performance, promotion, transfer or changing conditions

- Provide regular remuneration reviews

Reward Management

What should a good reward system do?

- attract

- retain

- motivate

- develop

- satisfy needs

- be fair

- be legal

- be affordable

- strategically aligned

Reward Management

CEO Pay Components

1. Base pay

2. Benefits

3. Short term incentives

4. Long term incentives

5. Termination & post-employment benefits

Reward Management


- Gender stereotypes

- Implicit leadership theories

- Gender differences in risk-taking

- Internal vs. external recruitment

- Bargaining power

- Performance related pay

- Outsider is risky

Reward Management

Types of Job Evaluation

1. Ranking

2. Job grading or classification

3. Point system

4. Factor comparison system

Reward Management

Which Job Evaluation System Should Be Used?

Should consider:

- Objectives

- Size of the organisation

- Organisational resources

- Plan users

- Corporate culture

- Employee attitudes

Reward Management

The Pay Survey

1. To establish appropriate pay level

2. Pay relationships among competitors

3. Control labour costs

4. Attract and retain employees

5. Information on pay mix

Reward Management

Benchmark Jobs

- Content, stable & well-known

- Stable supply & demand

- Represent the entire structure

- A sizeable proportion of the workforce is employed in these jobs

Reward Management

Market Pay Line

Company's benchmark jobs on horizontal axis with the market rates paid by competitors in the vertical axis

External Equity

- Occurs when the organisation's pay rates are at least equal to market rates

Internal Equity

- Occurs when people feel that performance or job differences result in corresponding differences in pay rates

Reward Management

Pay Grades

Pay Grades

- group different jobs that are the same for pay purposes

- enhance the organisation's ability to move people among jobs with no change in pay

- each pay grade will have a pay range

Reward Management

Pay Ranges

1. External pressures

- Quality variations

- Productivity variations

2. Internal pressures

- Recognition of individual performance

- Employee pay expectations

Reward Management

Skill-Based Pay


- Fits the strategic business focus on core competencies

- Gives management greater flexibility

- Gives employees greater job security

- Allows for multi-tasking

- Better trained workforce


- Increased pay & training costs

- Employees may become restless

- Could become to complex to administer

- Broad employees - decreased efficiency

- Employees may not want new skills

- Some companies now willing to discard traditional objectives

Reward Management

Reasons for Performance-Based Pay

- Employee motivation

- Clear performance expectations

- Attraction & retention

- Good corporate image

Reward Management

Reasons Against Performance-Based Pay

- Poor performance management system

- Rewarding counterproductive behaviour

- Rewards are not considered significant

- Managers are not accountable

- Extrinsic vs. intrinsic motivation

- Disproportionately large rewards for CEOs

International HRM

Define Multinational Companies

A means of coordinating production from one centre of strategic decision-making where this coordination takes a firm across national boundaries.

International HRM

Define Culture

A distinct way of life shared by members of a group or society with common values, attitudes and behaviours that are transmitted over time in gradual, yet dynamic process.

International HRM

Hofestede's Cultural Dimensions

Power distance

- Degree to which inequality accepted in society

Uncertainty avoidance

- Tolerance for uncertainty & ambiguity


- Extent to which individuals are integrated into groups


- Distribution of emotional roles

Time orientation


International HRM

Cross-Cultural Challenges

- Compatibility of management style

- High/low power distance

- Adjust style to situation

- Communication

- Low/high text cultures

- Ethics

- Labour & OHS standards

- Nepotism

- Bribery & corruption

- HR role in corporate governance

- Core set of values

- Training

International HRM



- new venture

- development opportunity

- lack of local expertise

- HQ control

- short-term

- prevent local problems

International HRM

Managing International Assignment

- Selection choices are critical

- Predictors of expat success

- Minimise risk of culture shock

- Training & development

- Spouse and family

- Risk of 'corporate isolation'

- Performance management

- Clarify

- Consideration of local influences

- Compensation management

- Pay: traditionally balance sheet approach

- Increasingly localised compensation

- Repatriation

- Preparation/support

-Turnover risk

International HRM

Helpful Initiatives for Expatriation

- Tax assistance

- Career advice

- Networking opportunities

- Stress management counselling