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Managing

Human Resources

Rodney Overton

Martin Books

Success in Business

Managing Human Resources Rodney Overton Martin Books Success in Business

Published by Martin Books Pty Ltd

ACN 112 719 052

20 Blackwoods Road

Boat Harbour NSW 2484

Australia

Tel: (61 2) 6679 1051

Fax: (61 2) 6679 1535

Email: info@martinbooks.com.au

Web: www.martinbooks.com.au

Copyright 2002-2007 Martin Books

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher

National Library of Australia

Cataloguing- in-Publication entry:

Overton, Rodney

Managing Human Resources

ISBN 978-1-921360-44-2

First published 2002 in soft cover

eBOOK version September 2007

The writer - Rodney Overton

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

writing and developing business training courses. rodney@sydneybusinesscentre.com Martin Books have a combined

rodney@sydneybusinesscentre.com

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

Foreword

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

Rodney Overton September 2007 rodney@sydneybusinesscentre.com

Table of contents

1 Human Resource Planning and Development (H.R.P.D.)

1

• What is Human Resources?

2

• The role of the Human Resources Manager

3

• Human Resources Planning and Development (HRPD)

4

• Human Resource Policies

5

• Steps in the Human Resources process

6-8

• An organisation and its stakeholders

9

• The politics of Human Resources

10

• What should staff contribute to the business?

11

• Components of Human Resources

12-16

2 Recruitment, Induction and Integration

17

• Staff recruitment

18

• Basic requirements for recruitment

19

• Steps in the recruitment process

20

• Writing a Job Description

21

How to recruit and keep the best staff

22-23

• The interview process

24

• Some interview questions

25

• How to interview

26

• A 10 step hiring process

27

• Body language

28

• Salary packages

29

• An Interview Evaluation

30

A press release - new personnel

31

Induction of new staff

32

• Internal integration

33

• Planning for and managing replacement and restaffing

34, 35

• Why do people fail?

36

• Disengagement interviews

37

How to keep your staff interested

38

3 Organisations and people

39

• Mission statements

40

• Communication

41

• Six steps to managing your career

42

• Meetings

43

• Organisational structure

44

• Typology of organisations

45

• Bureaucracy

46

• Managing change

47

• Executing change

47

• Work cultures

49

• Company culture

50,

51

• Cultural attributes

52

• Crisis Management

53

• Downsizing

54

• Some Peter Principles Occupational Health & Safety

55

• Discrimination

56

• An employee handbook

57

• Code of conduct

58

• Negotiation

59

The process of negotiation

61

• The negotiation conference

62

• Questions

63

• My Job - My Role

64

4 Leadership and Motivation

65

• Leadership

66-69

• Empowerment

69

• Future vision

70

• Leading a team

72

• Motivation

73,

74

• Maslow’s hierarchy of needs

75

• Motivation and needs

76

• Motivation by shareholding

77

The people working for you will expect

78

• Determinants of behaviour

79

• Productivity and motivation

80

• Does your workplace suffer morale problems?

81

• Stress and work

82

• What attributes do you require to be a workaholic?

83

• Retaining scarce talent

84

• Leadership quiz

85

5 Training and Evaluation

86

• Competency Based Training

87

• Recognition of Prior Learning

88

• Training Needs Analysis, Empowerment

89

• Evaluating personal strengths

90

• Setting personal goals and objectives

91

• Staff Appraisals

92

• A Performance Review

93

• A Rating Form for Management

94

6 Case Studies

95

An efficient office

96

The changing world of work

96

• Human Resources check list

97

• Economies of scale

98

• Community obligations and charities

99

• State sales administration

100

• Some acronyms

101

• Interstate branches

102

• some people adages

103

• Personality attributes

104

• Determinants of personality

105

• Personality traits

106

• Some euphemistic translations

107

• Rating your manager

108

• Are you a people person?

109

• Some Mistakes Candidates Make at Job Interviews

110,

111

Index

112

1

Human Resource Planning and Development

Managing Human Resources

What is Human Resources?

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

A well established definition of Human Resources is:

Human Resources Management should be running their companies so people get more satisfaction from their work. HR Managers have a responsibility to recruit, develop and motivate a team to produce defined results. The greatest resource / asset of any business is its people.

Your most precious possession is not your financial assets. Your most precious possession is the people you have working there, and what they carry around in their heads, and their ability to work together.

Robert Reich

2

1-Human Resource Planning and Development

The Role of the Human Resources Manager

An effective Human Resources Manager may be responsible for all of these areas, and many others as well:

• Understanding the needs and requirements of management and the organisation.

• Be responsible for Planning, Staffing, Directing and Controlling in the Human Resources area.

• Provide and encourage a motivational environment.

• Be responsible for hiring and training employees / staff.

• Be responsible for providing job descriptions.

• Be responsible for evaluating and comparing the performance of employees / staff.

• Establish methods for reviewing performance.

• Establish quantitative control standards.

• Contribute to work force morale.

• Co-ordinate other Human Resources functions.

• Convene Human Resources meetings.

• Be a spokesperson and figurehead for the organisation in Human Resource matters.

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Managing Human Resources

Human Resource Planning and Development (HRPD)

Any company controls a portfolio of the most powerful tools for changing behaviour.

Payportfolio of the most powerful tools for changing behaviour. Promotion Training Job rotation Cross functional assignment

Promotionof the most powerful tools for changing behaviour. Pay Training Job rotation Cross functional assignment

Trainingmost powerful tools for changing behaviour. Pay Promotion Job rotation Cross functional assignment Performance

Job rotationtools for changing behaviour. Pay Promotion Training Cross functional assignment Performance evaluation

Cross functional assignmentfor changing behaviour. Pay Promotion Training Job rotation Performance evaluation Supervision All of these areas are

Performance evaluationPromotion Training Job rotation Cross functional assignment Supervision All of these areas are strong tools to

Supervisionrotation Cross functional assignment Performance evaluation All of these areas are strong tools to modify behaviour.

All of these areas are strong tools to modify behaviour.functional assignment Performance evaluation Supervision Some organisational goals in the management of Human

Some organisational goals in the management of Human Resources:

Productivityorganisational goals in the management of Human Resources: Promotability Innovation and flexibility Special skills Can

Promotabilitygoals in the management of Human Resources: Productivity Innovation and flexibility Special skills Can management

Innovation and flexibilitymanagement of Human Resources: Productivity Promotability Special skills Can management define what behaviours it

Special skillsProductivity Promotability Innovation and flexibility Can management define what behaviours it wants in order to

Can management define what behaviours it wants in order to accomplish certain goals? Without such a specification we will not accomplish very much! There can be little growth and development for employees at any level in a sick and stagnant organisation.

It is in the best interests of both the individual and the organisation to have a healthy organisation that can provide opportunities for growth.

What’s that? - a true story In our recent experience we encountered the Managing Director of an organisation employing around 50 people. This particular M.D. always took great pride in claiming (usually after the second round at the local bar) that he was the possessor of high levels of ‘people skills’. However when the phrase ‘Human Resources’ was introduced into the conversation his response was, ‘What’s that?’ Interestingly, after the next round of drinks, the same person spoke with some degree of pride and achievement about the ‘100 people I have fired in the last 3 years’.

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1-Human Resource Planning and Development

Human Resource Policies

A variety of policies relating to the human resources of the organisation need to be developed and monitored, including:

• Security of employment

• Conditions of employment

• Remuneration Pay scales and methods

of employment • Remuneration Pay scales and methods Pay arrangements Compensation and benefits Incentive
Pay arrangements

Pay arrangements

Compensation and benefits

Compensation and benefits

Incentive schemes

Incentive schemes

Superannuation policy and arrangements

Superannuation policy and arrangements

Performance-based remuneration

Performance-based remuneration

Incentive programs

Incentive programs

• Retirement policy, terms and conditions

• Health and safety of employees

• Equal opportunity and affirmative action

• Promotions and transfers

• Discipline procedures

Grievance procedures

• Absenteeism policies and procedures

• Training and development of employees

• Recruitment procedures and standards

5

Managing Human Resources

Steps in the Human Resources process

RECRUITMENT of staff using a job description and specification. of staff using a job description and specification.

TRAINING and INDUCTION of staff to acceptable levels. of staff to acceptable levels.

ASSIGNING of staff to a job or area with specific responsibilities, goals, objectives and targets. of staff to a job or area with specific responsibilities, goals, objectives and targets.

MOTIVATION of staff to achieve goals, objectives and targets. of staff to achieve goals, objectives and targets.

FORECASTING, MEASURING, COMPARING Forecasting future Human Resources requirements. Review and evaluation of staff performance against goals, objectives and Forecasting future Human Resources requirements. Review and evaluation of staff performance against goals, objectives and targets.

REVIEW and EVALUATION of staff performance for advancement and promotion and for setting levels of remuneration of staff performance for advancement and promotion and for setting levels of remuneration

Human Resources involves a number of functions in areas including:

SELECTION and PLACEMENT

• Forecasting future staffing needs

• Recruiting staff

• Handling redundancies, retirements and termination's of employment

• Relocating employees to other positions or locations

TRAINING and DEVELOPMENT

• Inducting new recruits to the organisation

• Training and developing new employees

• Determining the future competencies and skill mix required by the organisation

• Training employees to meet current and future needs

CAREER DEVELOPMENT

• Ensuring that employees develop new skills

• Ensuring that employees are challenged in their jobs

• Maintaining and monitoring performance appraisal systems

• Maintaining an up-to-date succession plan, particularly for key positions within the organisation

LEGISLATION

• Making required government returns, such as fringe benefits tax and equal opportunity reporting.

• Ensuring and monitoring conformity with all employment legislation such as health and safety and equal opportunity.

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1-Human Resource Planning and Development

POLICY FORMATION

• A variety of policies relating to the human resources of the organisation need to be developed and monitored, including:

• Security of employment

• Conditions of employment

• Pay scales and methods

• Retirement policy, terms and conditions

• Health and safety of employees

• Equal opportunity and affirmative action

• Promotions and transfers

• Remuneration

• Discipline procedures

Grievance procedures

• Absenteeism policies and procedures

• Training and development of employees

• Recruitment procedures and standards

EMPLOYEE RELATIONS

• Negotiating and liaising with unions, employee representatives and employees on such areas as:

• Legislative matters

• Workforce restructuring

• Industrial democracy

• Enterprise bargaining

• Pay awards

• Employment contracts

EMPLOYEE WELFARE

• Ensuring the health, safety and welfare of all employees through organising or monitoring such things as:

• Conditions of work

• Provision of specialist crisis counselling, such as alcohol or drug abuse

• Confidentiality of personal employee details

REMUNERATION

• Pay arrangements

• Compensation and benefits

• Incentive schemes

• Superannuation policy and arrangements

• Performance-based remuneration

• Incentive programs

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Managing Human Resources

ORGANISATIONAL DEVELOPMENT

Designing and implementing organisation change initiativesManaging Human Resources ORGANISATIONAL DEVELOPMENT Introducing organisation development and change programs, such as TQM,

Introducing organisation development and change programs, such as TQM, Benchmarking, ISO Certification, job redesign, enterprise bargainingDesigning and implementing organisation change initiatives Ensuring the organisation is structured in a way that will

Ensuring the organisation is structured in a way that will achieve its vision and objectivesISO Certification, job redesign, enterprise bargaining Implementing and overseeing internal communication programs

Implementing and overseeing internal communication programsin a way that will achieve its vision and objectives MISCELLANEOUS In addition, personnel departments often

MISCELLANEOUS In addition, personnel departments often undertake a variety of miscell- aneous duties such as:

Overseeing the company canteenoften undertake a variety of miscell- aneous duties such as: Producing an employee newsletter or news

Producing an employee newsletter or news videoaneous duties such as: Overseeing the company canteen Making business-related travel arrangements for employees

Making business-related travel arrangements for employeescanteen Producing an employee newsletter or news video Overseeing the company nurse and doctor Liaising with

Overseeing the company nurse and doctorMaking business-related travel arrangements for employees Liaising with outside consultants and organisations on

Liaising with outside consultants and organisations on personnel-related issues, such as arrangements for temporary staff, and making or recommending charitable contributionsfor employees Overseeing the company nurse and doctor Managing and maintaining HR information systems (HRIS) Human

Managing and maintaining HR information systems (HRIS)staff, and making or recommending charitable contributions Human Resources, People and Flight Centre Graham Turner,

Human Resources, People and Flight Centre Graham Turner, the Chief Executive of travel success story Flight Centre Ltd has this to say about the way his business is run. ‘Flight Centre does not sell travel the conventional way. Everyone is on meaningful profit-share incentives. It places considerable importance on people being able to earn whatever they put their mind to, through incentives that are not capped. People who work in the shops earn a profit based on their individual business; the team leader earns a profit on the whole business, and so on. Ownership is not just about profit share, but is about operating the business believing it is yours and not just the company’s. There are no privileges unless everyone has them. No company cars, no car parks, no secretaries, no individual offices, and no receptionists. Our structure is team bases. This is based on the inherent desire of the human race to live and work in families (teams of up to seven people), villages (3-5 teams) and tribes (100-300 people). Standard systems operate throughout the company. There is only one best way to do anything. If you have one small business operating successfully and you can systemise and replicate that business, there is no reason you cannot have 100 or more businesses operating successfully. Flight Centre believes that profit is the best way of knowing whether you are offering the community something it wants.’

8

1-Human Resource Planning and Development

An organisation and its Stakeholders

OWNER STAFF SUPPLIERS
OWNER
STAFF
SUPPLIERS

ORGANISATION

INDUSTRY

COMMUNITY

CUSTOMERS

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

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Managing Human Resources

The Politics of Human Resources

The positive

• Networking - develop contacts throughout your organisation and industry.

• Continually promote and self market yourself in a positive, non- aggressive manner.

• Be thoroughly professional in everything you do. Never let people down and be aware that people have very long memories.

• Offer information freely without expecting favours - eventually your critical mass of goodwill will be returned.

The negative

• Never reinforce the failure of others to reinforce your cause.

• Forget about ‘brown nosing’, posturing for the benefit of your peers.

• Spreading rumours and sowing inaccurate information about people or circumstances is a definite no.

• Never indulge in power plays, threaten to withhold or reveal critical information, build opposition or refuse to give support.

In the 1990’s well known business writer Max Walsh wrote in his Sydney Morning Herald column about an organisational

disease which he called ‘the snake pit of organisational politics’. The cover-up routine is not confined to the top of the

communicating

to superiors should be done on the basis that new news is bad news. In the cover up process messengers are highly vulnerable and expendable.

organisation. All employees soon learn that

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1-Human Resource Planning and Development

What should Staff contribute to the Business?

Staff should:

Provide value for money for the organisation.What should Staff contribute to the Business? Staff should: Improve co-operation and effective team working at

Improve co-operation and effective team working at all levels.Staff should: Provide value for money for the organisation. Assist customer service in achieving continuous levels

co-operation and effective team working at all levels. Assist customer service in achieving continuous levels

Assist

customer service

in

achieving

continuous

levels

improvement

in

quality

and

Reward people fairly and consistently according to their contributions.in achieving continuous levels improvement in quality and Motivate other employees to achieve higher performance.

Motivate other employees to achieve higher performance.fairly and consistently according to their contributions. Support managers and management in the achievement of their

Support managers and management in the achievement of their goals.Motivate other employees to achieve higher performance. Be an integrated part of the management process of

Be an integrated part of the management process of the organisation.managers and management in the achievement of their goals. Continually improve competence and personal development. Be

Continually improve competence and personal development.part of the management process of the organisation. Be easily manageable, so that undue administrative burdens

Be easily manageable, so that undue administrative burdens are not imposed on managers and staff.Continually improve competence and personal development. Be easily controllable so that policies can be implemented

Be easily controllable so that policies can be implemented consistently and costs contained within budgets.burdens are not imposed on managers and staff. Support the attainment of the organisation’s mission

Support the attainment of the organisation’s mission statement, and help improve the organisation’s effectiveness and competitiveness.implemented consistently and costs contained within budgets. Help to support and change the culture of the

Help to support and change the culture of the organisation as expressed through its performance, innovation, risk-taking, quality, flexibility and team working.of the organisation’s mission statement, and help improve the organisation’s effectiveness and competitiveness. 11

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Managing Human Resources

Some Human Resource Components

OVERALL PLANNING COMPONENTS The function of these components is to ensure that the organisation has an adequate basis for selecting its human resources and developing them toward the fulfilment of organisational goals.

STRATEGIC BUSINESS PLANNING To determine the organisation’s goals, priorities, future directions, products, market growth rate, geographical location, and organisation structure or design.

JOB/ROLE PLANNING To determine what actually needs to be done at every level of the organisation. Often considered as a dynamic kind of job analysis, where continuing reviews of skills, knowledge, values etc., currently required and those required in the future are addressed.

The changing focus of Human Resources

Not so many years ago people used to wear gloves at work to protect their hands: now they wear gloves to protect the product.

MANPOWER PLANNING and HUMAN RESOURCE INVENTORY These activities draw on the job descriptions generated in job planning and assess the capabilities of the present H.R. against those plans or requirements. They may be focused on the numbers of people in given categories and /or designed to ensure that given assumed growth there will be an adequate supply of people in those categories.

STAFFING PROCESSES To ensure that the organisation acquires the necessary human resources to fulfil its goals.

JOB ANALYSIS To specify what jobs need to be filled and identify the required skills.

RECRUITMENT and SELECTION The process of finding people and developing systems for deciding who to hire. Part of this process is to communicate to prospective employees a basic understanding of the company and its approach to its people.

INDUCTION, SOCIALISATION and INITIAL TRAINING After hiring, the new employee learns the ropes, learns how to get along in the organisation, how to work, how to fit in, how to master the particulars of the job and so on. The goal should be to facilitate the new employee becoming a productive and useful member of the organisation both in the short run and in terms of long range potential.

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1-Human Resource Planning and Development

INVENTORY OF DEVELOPMENT PLANS An effort to plan for the growth and development of all employees. Can be done by department, division, or total organisation, by thinking through its implications and value to furthering future total development.

JOB DESIGN and JOB ASSIGNMENT The issue is how to provide optimal challenge to a new employee, with a set of activities that are neither too hard nor too easy, and neither too meaningless nor too risky from the organisation’s point of view. Co-ordination between HR and the immediate supervisor in this situation should be maximised.

DEVELOPMENT PLANNING How will long term employees who may stay 30 or 40 years in the organisation, make on-going contributions, remain motivated and productive, and maintain their job satisfaction?

FOLLOW UP and EVALUATION OF DEVELOPMENT ACTIVITIES Devise a system to ensure that plans are implemented and that activities are evaluated against individual and organisational goals.

CAREER DEVELOPMENT PROCESSES To match the organisation’s needs for work with the individual’s needs for a productive and satisfying work career. The system must provide some kind of forward movement for the employee through a succession of jobs, either by promotion or lateral movement to new functions or assignments. The system should be based on the organisation’s need to fill jobs as they open up and the employee’s needs to have some sense of progress in their working lives.

SUPERVISION and COACHING It is generally accepted that the first boss is crucial in giving new employees a good start in their careers, and that training of supervisors in how to handle new employees is a valuable organisational investment. The actual process of supervising, guiding, coaching, and monitoring are considered to be important components.

PERFORMANCE APPRAISAL and JUDGEMENT OF POTENTIAL These systems serve a number of functions - salary increases, promotions, and other formal organisational actions in respect to the employee. Also a basis for regular reviews between boss and subordinate to supplement day to day feedback and to assist with career planning and counselling. Potential conflicts can arise as to what level of feed back the employee receives. Does management want the employee to know their potential for

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Managing Human Resources

promotion? If individuals do not get good feedback around their development needs, they will remain uninvolved in their own development.

ORGANISATIONAL REWARDS, PAY, BENEFITS, PERQUISITES, PROMOTION, RECOGNITION As organisational careers become more varied and as social values surrounding work change, reward systems should become more flexible. At different career stages and in different types of careers employees will need different ‘things’. How to ensure that the organisational rewards are linked to the needs of the individual and to the needs of the organisation for effective performance and development of potential. Managers should set goals and philosophies based on what the organisation is trying to reward and what employees needs actually are. Many companies have great difficulty addressing this area and use consistency and other organisations as models.

PROMOTIONS and JOB CHANGES An effective HR system should concentrate on developing career paths, systems of job rotation, changing assignments, and lateral job moves to ensure growth of human resources. Evidence suggests that optimal challenge is what keeps human growth and effectiveness going, for most by promotion.

TRAINING and DEVELOPMENT OPPORTUNITIES Companies should realise that periods of formal training, outside development programmes and other educational activities are necessary in the total process of human growth and development. They should be matched to the needs of the individual and the needs of the organisation. The individual wants to attend the course, because they can see a benefit in their career path and see that it fits into their total career. Training should, as much as possible be tied to job/role planning.

CAREER COUNSELLING, PLANNING, FOLLOW UP and EVALUATION The organisation should provide a means for employees at all levels to become more proactive about their careers and a method for discussions. This should be linked to performance appraisal. Employees cannot manage their own growth development without information on how their own needs, talents, values and plans fit with opportunities the organisation can offer. Can the organisation open up the communication channel between employees, their bosses and the HR system, and lay the groundwork for realistic individual, development planning?

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1-Human Resource Planning and Development

PLANNING FOR and MANAGING DISENGAGEMENT Organisations should recognise various options to deal with problems of loss of motivation, obsolescence, and ultimate retirement.

CONTINUING EDUCATION and RETRAINING Is it better to provide challenging work, and then the training required for that work once the employee sees the need for it? For this strategy to work continuous feedback is required between employees and managers.

JOB REDESIGN, ENRICHMENT and ROTATION After a few years of employment many workers become unresponsive to the job requirements and pay more attention to factors such as the type of supervision, relationships with other workers, pay and many other issues. Rather than attempting to ‘cure’ levelled off employees by rem- otivation, job redesign or rotation perhaps they should examine whether these employees are in responsive mode or not. Conversely there is nothing wrong with less motivated and involved employees if the quality of their work meets the required standards.

ALTERNATIVE PATTERNS OF WORK and REWARDS Rostered days off, flexible working hours, part time work, job sharing, child care programmes, are just a few examples. They should cater for the needs of the organisation as well as the employee and be closely linked to each other.

PERSONAL IMPROVEMENT PROGRAMMES (P.I.P.) Is it desirable to design a special, personalised programme for all or some employees?

RETIREMENT PLANNING and COUNSELLING There should be a clear planning function that forecasts retirements and feeds this information into replacement and counselling functions. Psychological, mechanical and financial assistance should be provided, by skilled, specialist counsellors. Managers should be trained in handling pre- retirement employees.

"People" are the key to business success, as most people realise. But "people" as a success factor is like the weather - everybody talks about it, but no one does anything about it. Legendary former GE Chairman Jack Welch makes an interesting point that, while GE aspires to be No.1 or No. 2 in every market it competes in, Welch claims that their core competence is developing people. GE and a few other big companies have cultures that strongly encourage effective management and people development, but in the vast majority of

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Managing Human Resources

companies, that does not happen. Here are a few key truths about people as a success factor which may be helpful for you:

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

16

2

Recruitment, Induction, Integration

Managing Human Resources

Staff Recruitment

Selection - Training - Supervision

These three items, Selection, Training, and Supervision are the absolute corner stones of good Human Resources management. These are the true basics and without them nothing in Human Resources management is possible.

MOTIVATION Motivation is the roof and spire of the building. Roofs and spires don’t stand on air, they stand on solid foundations, and in good management the solid foundation stones are:

SELECTIONand in good management the solid foundation stones are: TRAINING SUPERVISION Individuals as a rule tend

TRAININGgood management the solid foundation stones are: SELECTION SUPERVISION Individuals as a rule tend to have

SUPERVISIONthe solid foundation stones are: SELECTION TRAINING Individuals as a rule tend to have a far

Individuals as a rule tend to have a far different perception of motivating factors than does management, as to what really motivates them.

Why is it important to take great care in filling a job vacancy?

• To benefit the company

• To avoid the expense of having to hire a replacement after a short time

• To increase profits

To create a team work atmosphere

• The wrong person may create disharmony

• The right person will do the job better

• To raise levels of professionalism.

Three major considerations in the selection process:

1. Does the candidate have the appropriate aptitudes, skills, qualifications and experience to do the job? 2. Does the candidate have the appropriate attitude to accomplish the task and fit in with the team in a positive, co-operative manner?

Short, medium or long term? Will

3. What is the candidates time frame? they last and show resilience?

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2-Recruitment, Induction, Integration

Some basic requirements for good recruitment include:

The recruitment of the correct number of people to meet the sales and overall objectives.Some basic requirements for good recruitment include: The reduction of staff turnover by the correct selection

The reduction of staff turnover by the correct selection of suitable people.number of people to meet the sales and overall objectives. The maximisation of the return to

The maximisation of the return to the company of the investment made in the employee.staff turnover by the correct selection of suitable people. The maximum use of management time in

The maximum use of management time in pro-active, productive activity rather than ‘putting out fires’.to the company of the investment made in the employee. Building and maintaining long-term stable relationships

Building and maintaining long-term stable relationships with customers.productive activity rather than ‘putting out fires’. To minimise the problems which can be inherent in

To minimise the problems which can be inherent in recruitment and employment.maintaining long-term stable relationships with customers. Maintaining of a high level of responsibility by management

Maintaining of a high level of responsibility by management for employees / staff.which can be inherent in recruitment and employment. In order to achieve these aims the organisation

In order to achieve these aims the organisation will be faced with a number of problems:

Defining the nature of the job and determining how many people will be required to do it.the organisation will be faced with a number of problems: Determining the type of person required

Determining the type of person required to do the job.and determining how many people will be required to do it. Deciding where responsibilities for recruitment

Deciding where responsibilities for recruitment and appraisal will lie.it. Determining the type of person required to do the job. Providing a workable job description.

Providing a workable job description.responsibilities for recruitment and appraisal will lie. The four E’s of recruiting people: People must have:

The four E’s of recruiting people:

People must have:

1. Plenty of energy

2. Be able to energise others

3. Have a competitive edge that gives them the will to win and makes them unafraid of embarking on tough courses.

4. To be able to execute by setting a vision, carrying out operational plans and coming up with the numbers

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Managing Human Resources

Steps in the Recruitment Process

• Analysing the tasks of the position - and writing a person description.

• What type of person would be best?

• What skills, qualifications and experience will be required?

• Preparation of a job description - ideally this should be presented to candidates at the first interview.

• Identifying sources of talent - where can we find an ideal person? By head hunting, by advertising, by internal promotion?

• Call for applications - phone or written.

• Screening the applications - do the applicants meet our person specification?

• Preparing a short list.

• Interviewing the candidates - who should interview? The Human Resources person, the Sales Manager, a committee?

• Second and third interviews may be required.

Checking references of those preferred.

• Psychological testing.

• Offering the job and negotiating terms and conditions.

• The induction process.

• Training and retraining the person

• Evaluating the training.

• Review and evaluation of effectiveness.

• Promotion or transfer.

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2-Recruitment, Induction, Integration

Writing a Job Description

An essential ingredient for successfully hiring any employee is a Job

Description. The Job Description should be based on a detailed job analysis and be as factual and brief as possible. Some commonly used headings

are:-

JOB TITLE The existing or proposed job title indicates as clearly as possible the function in which the job is carried out and the level of the job within that function.

REPORTING TO The title of the manager or superior to whom the job holder is directly responsible is given under this heading.

The job titles of all the posts reporting directly to the job holder are given under this heading.

OVERALL RESPONSIBILITIES This section describes as concisely as possible the overall purpose of the job. The aim being to convey in a few sentences a broad picture of the job which will clearly identify it from other jobs and establish the role of the job holder.

MAIN TASKS: Some suggestions for identifying the main tasks:

• Identify and list the tasks that have to be carried out. No attempt is made to describe in detail how they are carried out, but some indication is given of the purpose or objectives of each task.

• Analyse the initial list of tasks and simplify the list by grouping related tasks together so that not more than, say, 7 or 8 main activity areas remain.

• Decide on the order in which tasks should be described, such as:

• Frequency (hourly, daily, weekly, continually, etc.), chronological order, order of importance, and the processes of management that are carried out, setting objectives, planning, organising, co-ordinating, operating, directing and motivating staff and controlling.

• Describe each main task briefly and separately in short numbered paragraphs. Many people start paragraphs with an active verb; e.g. supervises, ensures that, prepares, completes, recommends, liaises with.

• State what is done as succinctly as possible and why it is done, thus indicating the purpose of the job and giving a lead for setting targets and performance standards.

PERFORMANCE MEASURES How will the performance of the person be measured? Obviously very important for sales positions.

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Managing Human Resources

How to recruit and keep the best staff

1 HIRE THE BEST

Your success depends upon your staff.How to recruit and keep the best staff 1 HIRE THE BEST Look for intelligence, initiative

Look for intelligence, initiative and integrity in everyone you employ.staff 1 HIRE THE BEST Your success depends upon your staff. Tell everyone that you expect

Tell everyone that you expect their absolute best.initiative and integrity in everyone you employ. 2 DON’T PAY PEANUTS Don’t pay peanuts unless you

2 DON’T PAY PEANUTS

Don’t pay peanuts unless you want monkeys.that you expect their absolute best. 2 DON’T PAY PEANUTS Reward your employees both financially and

Reward your employees both financially and emotionally. Pay over the market rate and expect more.PAY PEANUTS Don’t pay peanuts unless you want monkeys. Acknowledge each person’s contribution to your success.

Acknowledge each person’s contribution to your success.and emotionally. Pay over the market rate and expect more. Most people would rather feel needed

Most people would rather feel needed and respected than be given a pay increase.Acknowledge each person’s contribution to your success. Say thank you. 3 BUILD A TEAM Let each

Say thank you.feel needed and respected than be given a pay increase. 3 BUILD A TEAM Let each

3 BUILD A TEAM

Let each employee know they are a valuable member of the team.than be given a pay increase. Say thank you. 3 BUILD A TEAM Show them where

Show them where they fit in the system that produces the final result.each employee know they are a valuable member of the team. Trust them to do their

Trust them to do their job.where they fit in the system that produces the final result. Don’t let your ego get

Don’t let your ego get in the way of the team performance.that produces the final result. Trust them to do their job. 4 HAVE A BACK-UP Everybody

4 HAVE A BACK-UP

Everybody should be able to do at least two jobs in the company, preferably three.ego get in the way of the team performance. 4 HAVE A BACK-UP Three staff should

Three staff should be able to do the critical tasks.to do at least two jobs in the company, preferably three. 5 SHOW YOU CAN DO

5 SHOW YOU CAN DO IT

Know how to do every job in your organisation.be able to do the critical tasks. 5 SHOW YOU CAN DO IT If you can

If you can show an employee that you have taken the time to learn their job, you show that you think the job is worthwhile.YOU CAN DO IT Know how to do every job in your organisation. You can also

You can also act as a back up.their job, you show that you think the job is worthwhile. 6 DELEGATE Do what you

6 DELEGATE

Do what you do best and delegate the rest.job is worthwhile. You can also act as a back up. 6 DELEGATE Give your staff

Give your staff the responsibility and authority to do their jobs - and let them do it!up. 6 DELEGATE Do what you do best and delegate the rest. Give encouragement. Retain the

Give encouragement.and authority to do their jobs - and let them do it! Retain the ultimate authority

Retain the ultimate authority though.to do their jobs - and let them do it! Give encouragement. 7 COMMUNICATE Talk to

7 COMMUNICATE

Talk to your staff and ask for their suggestions.Retain the ultimate authority though. 7 COMMUNICATE The two groups who have the best information on

The two groups who have the best information on your business and its performance are your staff and your customers.though. 7 COMMUNICATE Talk to your staff and ask for their suggestions. You should listen to

You should listen to both groups very closely.The two groups who have the best information on your business and its performance are your

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2-Recruitment, Induction, Integration

8 ENCOURAGE PRIDE

Show pride in your company and its products and encourage others to take pride in their work.2-Recruitment, Induction, Integration 8 ENCOURAGE PRIDE Set a high example. Don’t accept second best personally or

Set a high example.products and encourage others to take pride in their work. Don’t accept second best personally or

Don’t accept second best personally or your staff will follow your lead.others to take pride in their work. Set a high example. 9 ENCOURAGE CREATIVITY Meet with

9 ENCOURAGE CREATIVITY

Meet with your staff at least once a month for a brainstorming session.or your staff will follow your lead. 9 ENCOURAGE CREATIVITY Get suggestions on how to improve

Get suggestions on how to improve your product, service, customer satisfaction or profit.staff at least once a month for a brainstorming session. Reward ideas that work. Encourage on-going

Reward ideas that work.your product, service, customer satisfaction or profit. Encourage on-going commitment. 10 HAVE A SECOND-IN-COMMAND

Encourage on-going commitment.customer satisfaction or profit. Reward ideas that work. 10 HAVE A SECOND-IN-COMMAND Groom a deputy who

10 HAVE A SECOND-IN-COMMAND

Groom a deputy who shares your goals and ideas.Encourage on-going commitment. 10 HAVE A SECOND-IN-COMMAND Let your staff know that your deputy has your

Let your staff know that your deputy has your confidence and your authority when you are absent.Groom a deputy who shares your goals and ideas. Then go on holidays to test the

Then go on holidays to test the system.has your confidence and your authority when you are absent. Three major considerations in the selection

Three major considerations in the selection process:

1. Does the candidate have the appropriate aptitudes, skills, qualifications and experience to do the job?

2. Does the candidate have the appropriate attitude to accomplish the task and fit in with the team in a positive, co-operative manner?

3. What is the candidates time frame? Short, medium or long term? Will they last and show resilience?

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Managing Human Resources

The Interview Process

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

Interviewers should ensure that:

Questions are not discriminatory to certain groups of applicants.provide the best results. Interviewers should ensure that: Questions are not ambiguous and are designed to

Questions are not ambiguous and are designed to gather information relevant to the position applied for.are not discriminatory to certain groups of applicants. The interview process is consistent for all applicants.

The interview process is consistent for all applicants.to gather information relevant to the position applied for. Where possible an independent person should be

Where possible an independent person should be part of the interview panel to assist in ensuring consistency and lack of bias.for. The interview process is consistent for all applicants. The interview should relate to work issues

The interview should relate to work issues and should not infringe the personal rights of applicants.panel to assist in ensuring consistency and lack of bias. Notes are taken for future reference

Notes are taken for future reference and applicants are ranked according to predetermined criteria.and should not infringe the personal rights of applicants. The interview process is as relaxed as

The interview process is as relaxed as possible and applicants are given ample opportunity to answer questions.of applicants. Notes are taken for future reference and applicants are ranked according to predetermined criteria.

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2-Recruitment, Induction, Integration

The Interview Process

Some suggested interview questions

• When dealing with a direct report, team member or peer, how have you determined when you were pushing too hard?

• Give me an example of when this happened.

• Describe a complicated task that you have had difficulty teaching someone to perform.

• What approach did you take?

• Why were you successful?

• Tell me about a time when there was not much room for creativity in your work.

• How satisfied were you in that situation and why?

• Describe a face-to-face meeting in which you had to lead or influence a very sensitive individual.

• Give me an example of a good decision you made recently.

• What were the alternatives you considered?

• Why was it a good decision?

TO ALL STAFF Now that we have established KWALITY CONTROL please THINK AHEA D

TO ALL STAFF

Now that we have established

KWALITY CONTROL please THINK AHEA

D

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Managing Human Resources

How to Interview - some suggestions

Before the interview know what you are looking for

• Prepare a list of features you are looking for.

• The interview begins the moment the other person walks in the door. Pay attention to your first impression. Ask yourself how you feel in the other person’s presence. Ask yourself why you feel this way.

• Look at the other person’s appearance. Consider their sense of style.

• Do they feel comfortable with their style or is it for impression?

• Is this person reaching or are they understated?

• If you are hiring someone to project the company image, every aspect of their appearance is important, including taste in clothes, firmness and dryness of handshake, confidence projected and tone of voice.

• Allow the other person to talk. Avoid dominating the interview, or setting rigid goals. • Let it be the other person’s interview. Be patient and take your time to discover the other person. Try to get an idea of the other person’s thinking.

• The best way to make people feel comfortable is to respond positively every time they do well. Remember you are trying to see how the other person functions at their best. Some people don’t function well under stress and any interview situation unnerves them. With such people, it is useful to bring up strengths in their resume.

• Look for something about the other person you like and mention it. Smile!

• Make positive comments like,’ yes, good, exactly, of course, I see and I agree’, and act positively. Nod agreement. Be appreciative, sincere, and listen.

• Once the other person starts to talk, let them.

• Ask, ‘What happened here?’ and observe how the interviewee responds.

• Consider how this person makes you feel.

• Do you like being with them?

• What contribution do you think this person would make to the mood of the people around them?

• Ask yourself what it would be like to work with this person on a daily basis.

• Would it be depressing, inspiring, boring, a drain, or a privilege?

• What is the feeling the other person projects - optimism or defeat?

• Is this person really interested in their work?

• Do they have a strong sense of industry?

• Will they enhance the productivity of the workplace?

• Would you feel comfortable going to lunch with this person?

• Are they socially aware, poised, and confident?

• Do you feel any embarrassment for them or being with them?

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2-Recruitment, Induction, Integration

A Ten Step Hiring Process

Below is a hiring process which will obviously not suit all organisations. It will require considerable amounts of time and effort, but should ensure a quality candidate.

1. The candidate is invited over for an interview. The personnel manager should be able to identify what management is looking for and be secure enough not to screen out unusual or intimidating candidates.

2. The candidate is invited over for a number of follow up interviews. The interviewers discuss their findings and make a specific hire / reject recommendation with reasons why.

3. The C.E.O. talks with the candidate for 30 minutes. They talk to the C.E.O. for 30 minutes. Let the candidate talk and not be bombarded by the C.E.O. talking about his success.

4. The C.E.O. talks with the candidate on the phone for 30 minutes. Can the person, project, persuade and communicate clearly over the phone?

5. The C.E.O. talks with some outside sources. Check out the candidate in the Industry. Who knows or should know about this person?

6. The C.E.O. talks with the candidate in their home in the presence of their wife and children. See the candidate’s personal values at work in the most revealing setting. Also a good integrity test. Does the home life match the description in the interview?

7. The C.E.O. socialises with the candidate in a different environment. Is the candidate a music or movie buff? Off to the concert hall or theatre with the candidate and spouse. How does this person act in a social setting? Especially important for sales people as they need to be their most skilful and persuasive.

8. The candidate sees 2 or 3 of the C.E.O.s peers in other, non competitive companies in the town. The visits are brief and need to be reciprocated by reviewing the peer’s candidates in turn.

9. A trip to the Master. Every city has a master of profession - master controller, master purchasing agent, master executive secretary etc. The successful candidate has to pass muster with the master. Make a point of knowing the masters - their leads can be a good way to find candidates in the first place.

10. A trip to the counsellor. The industrial psychologist’s analysis is often enlightening but never binding. It is usually most helpful in addressing some-one’s strengths or weaknesses after you hire them.

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Managing Human Resources

Body Language

Many skilled interviewers make a special point of studying the body language of the people being interviewed. It can provide an insight into the interviewee.

Clammy handshake Steepling of hands Downcast eyes Face turned away Relaxed mouth, chin forward Poker face Mouth open Two people looking at each other

Rapid walk, arms swinging Walking with hands in pockets Walking with hands on hips Walking with hands behind back Open hands Arms crossed Straddling a chair

Crossed legs Hand to cheek Body drawn back Hands behind head Rubbing nose Hands closed in front Head inclined Locked ankles Sitting back with legs crossed Hand to back of neck Playing with tie, ring, etc. Leaning forward

It is generally accepted that:

Nervousness Confidence Negative view Negative view Positive acceptance Holding something back Shock, or intense concentration More interested in the other person than you

Cocky, goal orientated Critical, secretive Bursts of energy Pre occupied Sincerity Defensive Domineering

Settlement less likely Evaluation, deep thought Distant, critical Relaxed aggressiveness Puzzlement Self control Interested Nervous, holding back feelings Attracted, but unconvinced Frustration Anxious, needs reassurance Ready to go

• 55% of a negotiator’s message is perceived non verbally

• Only 7% depends on what is said

• And 38% depends on how it is said

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2-Recruitment, Induction, Integration

Salary Packages

The total value of an employment package can comprise provision of some of the following perquisites and / or other items. The total cost to the employer when totalled will give a ‘package value’.

BASE WAGE / SALARYthe employer when totalled will give a ‘package value’. BONUS PERFORMANCE INCENTIVES SHARE OPTIONS SUPER-ANNUATION

BONUStotalled will give a ‘package value’. BASE WAGE / SALARY PERFORMANCE INCENTIVES SHARE OPTIONS SUPER-ANNUATION USE

PERFORMANCEwill give a ‘package value’. BASE WAGE / SALARY BONUS INCENTIVES SHARE OPTIONS SUPER-ANNUATION USE OF

INCENTIVES

SHARE OPTIONSvalue’. BASE WAGE / SALARY BONUS PERFORMANCE INCENTIVES SUPER-ANNUATION USE OF A VEHICLE TELEPHONE - PRIVATE

SUPER-ANNUATION

USE OF A VEHICLEBONUS PERFORMANCE INCENTIVES SHARE OPTIONS SUPER-ANNUATION TELEPHONE - PRIVATE HOUSING PERSONAL and FAMILY TRAVEL

TELEPHONE - PRIVATEINCENTIVES SHARE OPTIONS SUPER-ANNUATION USE OF A VEHICLE HOUSING PERSONAL and FAMILY TRAVEL INSURANCE SCHOOL FEES

HOUSINGOPTIONS SUPER-ANNUATION USE OF A VEHICLE TELEPHONE - PRIVATE PERSONAL and FAMILY TRAVEL INSURANCE SCHOOL FEES

PERSONAL and FAMILY TRAVELSUPER-ANNUATION USE OF A VEHICLE TELEPHONE - PRIVATE HOUSING INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING

INSURANCETELEPHONE - PRIVATE HOUSING PERSONAL and FAMILY TRAVEL SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS

SCHOOL FEES- PRIVATE HOUSING PERSONAL and FAMILY TRAVEL INSURANCE TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE

TAX ADVICEHOUSING PERSONAL and FAMILY TRAVEL INSURANCE SCHOOL FEES CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE ACCOUNT

CAR PARKINGPERSONAL and FAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE ACCOUNT CLOTHING

EMPLOYEE DISCOUNTSand FAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING HOLIDAYS EXPENSE ACCOUNT CLOTHING ALLOWANCE OTHERS

HOLIDAYSFAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS EXPENSE ACCOUNT CLOTHING ALLOWANCE OTHERS

EXPENSE ACCOUNTand FAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS CLOTHING ALLOWANCE OTHERS

CLOTHING ALLOWANCEand FAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE ACCOUNT OTHERS

OTHERSTRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE ACCOUNT CLOTHING ALLOWANCE 29

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Managing Human Resources

An Interview Evaluation

After the interview the following summary could be a useful assessment:

Ranking

1,

2,

3,

4,

5,

6,

7,

8,

9,

10

Appearance  

Appearance

 
Personality

Personality

Maturity

Maturity

Aptitude

Aptitude

Objectives

Objectives

Experience

Experience

Education

Education

Overall assessment

Overall assessment

Others

Others

.

.

.

.

.

.

.

.

.

.

.

.

Total  

Total

 

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2-Recruitment, Induction, Integration

A Press Release for New Personnel

• Use this press release to take advantage of the opportunity that hiring a new employee offers.

• You need not use a cover letter when mailing a press release.

• Just remember to fold it so the headline appears when it is removed from the envelope.

For Immediate Release

Contact's namewhen it is removed from the envelope. For Immediate Release Contact's phone number Contact's fax number

Contact's phone numberfrom the envelope. For Immediate Release Contact's name Contact's fax number Company Promotes Name to Title

Contact's fax numberRelease Contact's name Contact's phone number Company Promotes Name to Title City, State Date Name has

Company Promotes Name to Title

City, StateContact's fax number Company Promotes Name to Title Date Name has been promoted to title at

Datefax number Company Promotes Name to Title City, State Name has been promoted to title at

Name has been promoted to title at company, the people who offer/ develop/ create (short company profile) with offices infax number Company Promotes Name to Title City, State Date S/he will be responsible for primary

S/he will be responsible for primary responsibility.develop/ create (short company profile) with offices in "Quote showing person's productivity or worth to

"Quote showing person's productivity or worth to company”, said spokesperson's name, spokesperson's title of company.in S/he will be responsible for primary responsibility. Name joined company in year as title. held

Name joined company in year as title.name, spokesperson's title of company. held positions of Previously, This should include positions

held positions of

Previously,

This should include positions with high visibility in well-known companies, if this is pertinent to the position and reflects well upon both companies.

"Quote showing person's dedication, commitment and / or ideas," saidto the position and reflects well upon both companies. where s/he was responsible for Prior to

where s/he was responsible for

Prior to joining company, s/he

at (

worked for

)

where s/he was responsible for

as

s/he at ( worked for ) where s/he was responsible for as name earned a type

s/he at ( worked for ) where s/he was responsible for as name earned a type

name earned a type and level of degree from

Specify

universities attended.

, honours, if any.

degrees,

honours,

and

association affiliations, as well as

and their

(number of) children. Avoid specific information about the children that may jeopardise their safety. If the person is in a position that could invite sensational publicity, keep personal details to a minimum.

Quote the person or a company official on this personnel change. The quote should address the way this promotion will contribute to the company achieving its goals. If you distribute the press release to your vendors, customers, board members, stockholders and employees, a quote may help add credibility and build morale.invite sensational publicity, keep personal details to a minimum. lives in specify city or neighbourhood only,

and employees, a quote may help add credibility and build morale. lives in specify city or

lives in

specify city or neighbourhood only, with

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Managing Human Resources

Induction of New Staff

New staff should be made to feel welcome to the business right from the outset, and special consideration should be given to their questions and needs until they become familiar with day to day procedures. The induction process should allow the Human Resources Manager, and the appropriate supervisor the opportunity to gain information about the new recruit and introduce them to the company and the rest of the team. The recruit should be made comfortable working with the rest of the team and be ready to contribute results as soon as possible. Training based on the Job Description should be an important part of the Induction period. Further Training in learning about the company’s products and systems is part of the Induction process.

NEW STAFF SHOULD BE GIVEN AND / OR MADE FAMILIAR WITH:

• A LETTER of ENGAGEMENT detailing pertinent and relevant terms and conditions of employment, such as:-

• Wages are paid weekly / fort nightly etc.

• Wages are paid in cash / to a bank account.

• You are employed on a daily / weekly / casual / permanent basis.

• You are on employed on a trial / probationary period or basis.

• A list of staff names, positions and responsibilities of other staff in the firm.

• Keys or passes for access to buildings.

• Details of office or business hours.

• Details of EEO and OH&S policies

• Payroll procedures. Holiday Policy. Sick leave policy.

• Travel or meal reimbursement policies.

• Staff procedures. Staff evaluation policy.

• Time reporting policy.

• Use of telephone.

• Mail and filing room procedures.

• Use of office equipment in general.

• Details of publications available to the staff member.

• Ensure a meeting on the first day.

• Have a work area and materials prepared.

• Visits to various sections for orientation.

• Meetings with various key people.

• Product training.

• For sales representatives, a visit to the sales territory with sales manager or mentor.

• Regular communication for first weeks.

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2-Recruitment, Induction, Integration

Internal Integration Problems

Matching People to Business Conditions

A group or organisation cannot survive if it cannot manage itself as a

group. External survival and internal integration problems are therefore,

two sides of the same coin. Every organisation will have different solutions

to these problems and face different issues.

Usually the solutions will reflect the biases of the founders and current leaders, the prior experiences of group members, and the actual events experienced, with the experiences of each organisational culture being unique, even though the underlying issues around which the culture is formed will be common. Does the organisational culture reflect, in a patterned way the nature of the underlying technology, the age of the organisation, and the nature of the parent culture within which the organisation evolves?

LANGUAGE Common language and conceptual categories. If members cannot communicate with and understand each other, a group is impossible by definition.

BOUNDARIES Consensus on group boundaries and criteria for inclusion and exclusion. One of the most important areas of culture is the shared consensus on who is in, who is out, and by what criteria one determines membership.

POWER and STATUS Consensus on criteria for the allocation of power and status. Every organisation must work out its pecking order and its rules for how one gets, maintains and loses power. This area of consensus is crucial in helping members manage their own feelings of aggression.

INTIMACY Consensus on criteria for intimacy, friendship and love. Every organisation must work out its rules of the game for peer relationships, for relationships between the sexes, and for the manner in which openness and intimacy are to be handled in the context of managing the organisation’s tasks.

REWARDS AND PUNISHMENTS Consensus on criteria for allocation of rewards and punishments. Every group must know what its heroic and sinful behaviours are; what gets rewarded with property, status, and power; and what gets punished through the withdrawal of rewards, and ultimately excommunication.

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Managing Human Resources

IDEOLOGY Consensus on ideology and ‘religion.’ Every organisation, like society, faces unexplainable events that must be given meaning, so that members can respond to them and avoid the anxiety of dealing with the unexplainable and uncontrollable.

MANAGEMENT IS CONSIDERED A ‘MYSTERIOUS’ ACT A great number of executives feel that management, especially at senior levels, is mysterious and defies objective analysis. Some critical elements, such as a manager’s ‘style’ and the degree to which he ‘fits in’ with his colleagues, are too abstract to be measured and too sensitive to be identified explicitly. Rather, a manager just gets a sense of all these factors and makes decisions accordingly.

PROMOTION IS CONSIDERED A ‘JUST REWARD’ There is little question that the nature of jobs changes as one moves up the ladder - the best salesman seldom makes the best sales manager. The pressure though is to reward performance with promotion. In most organisations, objective rewards are still largely hierarchically based, and many managers feel that they have very little choice but to promote their best performers, or they risk demoralising them or losing them to competitors.

COMPATIBILITY WITH PEOPLE, NOT JOBS There seems to be a pervasive desire for people to surround themselves with individuals of similar kind. As a consequence, the selection process is often less one of matching candidates with job requirements.

LACK OF SKILL Hiring subordinates is a skill an executive is expected to posses by virtue of his or her position. Consequently, executives are rarely trained in selection, and only a few executives are naturally gifted in this area. Furthermore, since selection is always time consuming and often tedious, it may get short shrift, despite its importance.

BELIEF IN THE ‘UNIVERSAL MANAGER’ For many years, executives believed that a good manager can handle any situation, irrespective of its idiosyncratic demands. Growth businesses are those that are more mature and seen as minor variations of a common theme, rather than as specialised business problems that create particular demands on the management in place. Consequently, senior executives have often tended to search for ‘universal managers’, rather than those who are more specialised.

34

2-Recruitment, Induction, Integration

Planning for and Managing Replacement and Restaffing

Human Resource Planning and Development (HRPD) should address issues such as:

• Updating the human resource inventory as retirements or termination's occur.

• Instituting special programmes of orientation or training for new incumbents to specific jobs as these jobs open up.

• Managing the Information System (I.S.) on what jobs are available and determining how to match this information to the Human Resources available in order to determine whether to replace from within the organisation or to go outside with a new recruiting programme.

• Continuously reanalysing jobs to ensure that the new incumbent is properly prepared for what the job now requires and will require in the future.

• The management of these processes are linked to other parts of the system through implicit messages that are sent to employees. For example if the company decides to display all its vacancies ‘in house’, it is sending a clear message that supports internal recruitment and self development activities.

• A company that manages its recruitment in a secretive manner may be sending a message to employees that the company is passive and complacent about their careers, because the employees are unable to influence them in any way.

• Planning activities should be closely linked to the processes of supervision, job assignment, training etc., and those processes should be designed to match the needs of the organisation with the needs of employees throughout their evolving careers, even though these careers may not involve promotions.

• The various components should be linked to each other, and be seen as a total system for maximum effectiveness, and be managed to ensure co- ordination between the planning functions and implementation functions.

• Accountabilities will rest squarely with supervisors and management, who will control the rewards and opportunities.

• Regardless of who designs and manages the HRPD programme or system, the ultimate goal should be that the HRPD programme be ‘owned’ by middle management.

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Managing Human Resources

Why do People Fail?

Some common reasons in their order of frequency, for why people fail are:

They do not know what they are supposed to doin their order of frequency, for why people fail are: They do not know how to

They do not know how to do it.fail are: They do not know what they are supposed to do They do not know

They do not know why they should do it.what they are supposed to do They do not know how to do it. There are

There are obstacles beyond their control.know how to do it. They do not know why they should do it. They do

They do not think it will work.they should do it. There are obstacles beyond their control. They think that their way is

They think that their way is better.beyond their control. They do not think it will work. They have a poor attitude and

They have a poor attitude and / or lack motivationnot think it will work. They think that their way is better. They lacked the skills

They lacked the skills to do the job.better. They have a poor attitude and / or lack motivation There was not enough time

There was not enough time to do it./ or lack motivation They lacked the skills to do the job. They were working to

They were working to the wrong prioritiesskills to do the job. There was not enough time to do it. They thought that

They thought that they were doing ittime to do it. They were working to the wrong priorities Poor management Personal problems CREATIVITY,

Poor managementto the wrong priorities They thought that they were doing it Personal problems CREATIVITY, HABIT, FEAR,

Personal problemsThey thought that they were doing it Poor management CREATIVITY, HABIT, FEAR, PREJUDICE, INERTIA CREATIVITY What

CREATIVITY, HABIT, FEAR, PREJUDICE, INERTIA

CREATIVITY

What are barriers to people embracing and engaging in creative activities?

HABIT

We have always done it this way.

FEAR

Why risk changing the status quo with the inherent risks of failure?

PREJUDICE

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

INERTIA

The best way of all to overcome creativity!

36

2-Recruitment, Induction, Integration

Disengagement Interviews

What do you do when people resign? It is quite amazing just how few organisations carry out ‘debriefings’ when people resign from their organisation. Enlightened thinking suggests that this is an opportune time to gather valuable feedback about the organisation, its policies, goals and people.

Some suggested questions for obtaining feedback might be:

What are your long term goals?Some suggested questions for obtaining feedback might be: Why are you leaving at this time? What

Why are you leaving at this time?obtaining feedback might be: What are your long term goals? What did you most enjoy about

What did you most enjoy about working here?are your long term goals? Why are you leaving at this time? What was disappointing about

What was disappointing about working here?at this time? What did you most enjoy about working here? How do your family relate

How do your family relate to your work?working here? What was disappointing about working here? Why did you choose to work here? What

Why did you choose to work here?about working here? How do your family relate to your work? What does your new position

What does your new position offer, that outweighs those available here?family relate to your work? Why did you choose to work here? Was the training you

Was the training you received here of benefit to you?new position offer, that outweighs those available here? How could our organisation have helped you more?

How could our organisation have helped you more?here? Was the training you received here of benefit to you? Are you disappointed in this

Are you disappointed in this organisation, and your achievements here?to you? How could our organisation have helped you more? According to data supplied by the

According to data supplied by the federal government 22% of the national workforce left their jobs in the year 2000. Exit interviews should be conducted by all organisations when people leave to go and work elsewhere. They present an ideal opportunity for the organisation to receive meaningful feedback about itself and to learn what has triggered a resignation. Attracting highly skilled staff is very difficult and most organisations are keen to learn the reasons why people are resigning, such as lack of training and career development, or burn out. Good exit interviews can make the work environment a better place for those who follow. For many people who are leaving there is a huge temptation to relieve years of frustration by being absolutely frank about the reasons for leaving - often people problems. For those who are leaving, steering away from being brutally frank is probably the best course of action. Give honest feedback, but do not make it personal. Resist the temptation to be vindictive, but never burn your bridges. Tackle the issues, not the person. If someone has been a poor manager, then say that would be a better manager with more training. Exit interviews should obviously be conducted by someone other than the person’s immediate supervisor to assure there is no bias and to ensure absolute confidentiality. In Australia the Bureau of Statistics is very proud of its low staff turnover rate - just 8.4% of more than 3,200 staff in a recent survey, while conversely call centres average a 36% staff turnover rate.

37

Managing Human Resources

How to keep your staff interested

1.

Provide a variety of work - job rotation and projects

2.

Ensure opportunities for growth, learning and promotion

3.

Recognise good work

4.

Encourage your staff to take chances and to ‘take risks’ to broaden their point of reference

5.

Involve your staff in the ‘big picture’ - keep staff informed about what the business is achieving and trying to achieve

6.

Encourage and reward contributions by staff

7.

Give staff leaders to work with - not managers

8.

Reward staff as individuals

9.

Encourage and have a team environment

10.

Provide a work environment that balances work and personal life

How to lose your staff

1.

Salary paid is different to what was offered at the interview

2.

‘Forget’ salary reviews

3.

Feedback consists of ‘you did this wrong’

4.

Running the business like a dictatorship

5.

Not providing opportunities for ongoing staff training

6.

A ‘do as I say, not do as I do’ work environment

7.

A technologically backward work place

8.

Lack of planning

9.

Pressure to complete work on time and then the leader or manager fails to review the job for weeks

10.

A ‘school’ approach to hours

A MANAGER

• A manager is someone who manages people.

• They succeed because of empathy, patience, knowledge, restraint and courage.

• They fail because of inexperience, ignorance, intolerance, fear or simply because of circumstances which were too much against them.

• No person is identical to another person and since no people problems are identical there is no standard formula for solving people problems, and every manager will have their own unique style anyway.

38

3

Organisations and People

Managing Human Resources

A Mission Statement - What is it?

Does your organisation have a Mission Statement?

Could Human Resource issues be addressed more readily if you did have a Mission Statement? All members of the organisation should focus on, and believe in that statement and vision, and set out to achieve that vision. The statement and vision should be founded on a set of values held by all members of the company. You will need to start by establishing the values of your organisation, and then develop and deploy the statement and vision throughout your organisation.

What are the basic requirements of a meaningful mission statement? The components to help make a mission / vision useful and valid could include:

A focused concept - something beyond platitudes. A value creation

A

focused concept - something beyond platitudes. A value creation

premise that people can actually picture as existing.

A sense of worthwhile purpose - something that is really worth doing,

A

sense of worthwhile purpose - something that is really worth doing,

something that can create value, make a contribution, make the world a better place in some way and win people’s commitment.

A plausible chance of success - something people can realistically believe

A plausible chance of success - something people can realistically believe

to be possible and, if not perfectly attainable, at least plausible to strive

for.

A very good real life example of a Mission Statement is this one from the Department of Administrative Services [D.A.S.]:

To be recognised by our customers and the government as Australia’s best provider of services and a leader in public sector reform’. Another excellent example which I noticed in the employment columns of a newspaper, is from the South Australian Film Corporation:

‘We will stimulate and assist the film and video industry and community to achieve sustained economic and cultural benefits that are valued by the people of South Australia’.

Further the mission statement should define:

The Customer - defined not in terms of some market segment orAustralia’. Further the mission statement should define: statistical category, but in terms of a basic defining

statistical category, but in terms of a basic defining need premise that leads that person [or entity] to consider doing business with your enterprise.

The value premise - defined not in terms of what your organisation does, makes, sells, or delivers, but in terms of the fundamental value it represents in matching the customers need premise.[or entity] to consider doing business with your enterprise. What makes you special - your special

What makes you special - your special means for creating value, in orderthe fundamental value it represents in matching the customers need premise. to win and keep the

to win and keep the customer’s business.

40

3-Organisations and People

Communication and Human Resources

What is Business Communication? Human Resource skills involve high levels of business communication skills. They are irretrievably linked. Business communication covers many facets and can include:

Being aware of non verbal behaviour - over 50 percent of a message is perceived non verbally.Business communication covers many facets and can include: Effective meeting skills. The ability to influence and

Effective meeting skills.- over 50 percent of a message is perceived non verbally. The ability to influence and

The ability to influence and persuade others.message is perceived non verbally. Effective meeting skills. Motivating others. Listening. Questioning. Providing

Motivating others.skills. The ability to influence and persuade others. Listening. Questioning. Providing feedback to others.

Listening.ability to influence and persuade others. Motivating others. Questioning. Providing feedback to others. Seeking out and

Questioning.influence and persuade others. Motivating others. Listening. Providing feedback to others. Seeking out and listening to

Providing feedback to others.persuade others. Motivating others. Listening. Questioning. Seeking out and listening to feedback about yourself.

Seeking out and listening to feedback about yourself.Listening. Questioning. Providing feedback to others. Seeking out and processing information. The ability to

Seeking out and processing information.Seeking out and listening to feedback about yourself. The ability to select appropriate methods of interfacing

The ability to select appropriate methods of interfacing with others.about yourself. Seeking out and processing information. Selling and representing your work mates and work place

Selling and representing your work mates and work place to others.to select appropriate methods of interfacing with others. Selling and representing your self to others. Communication

Selling and representing your self to others.and representing your work mates and work place to others. Communication is used to address issues

Communication is used to address issues such as:

Howto others. Communication is used to address issues such as: When What Why Who Where Open

Whenothers. Communication is used to address issues such as: How What Why Who Where Open questions

WhatCommunication is used to address issues such as: How When Why Who Where Open questions can

Whyis used to address issues such as: How When What Who Where Open questions can be

Whois used to address issues such as: How When What Why Where Open questions can be

Whereis used to address issues such as: How When What Why Who Open questions can be

Open questions can be prefixed with any of these six words. An open question will cause the person the question is directed at, to answer with more than a straight out yes or no answer, and open the channels of communication. Business communication is, consulting, persuading, and convincing. Communication is about getting through and being understood.

On the first day on the job as the new manager, the new person called a meeting of his staff and had this to say. ‘Now it is essential that we work as a team. If we work as a team we can accomplish a lot. Don’t forget though, I expect you to do exactly as I say and to follow my instructions in your work as a team.’

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Managing Human Resources

Six Steps to Managing Your Career

1 SELF ASSESSMENT

List your transferable skills, needs, values, interests and achievements to date. List employment likes and dislikes and your reasons for them.

2 INTERPRETING DATA

Consult your mentor and/or career counsellor and/or significant other in your life. Summarise your preferred skills. Develop a list of possible career action steps which could provide opportunities for improved worklife satisfaction.

3 OPPORTUNITY AWARENESS

Explore one or more jobs and gather information. List discarded options, and your reasons for discarding them.

4 DECISION LEARNING

Make decisions based on what you have learnt. Decide how you will get to where you want to be.

5 TRANSITION TRAINING

Produce a thoroughly written version of your career transition strategy and discuss it and its rationale with your counsellor, mentor, and/or significant other.

6 TRANSITION ACCOMPLISHED Get out the champagne.

When you take control Discover from your new staff how they tackle their own jobs.

Discover from your new staff how they tackle their own jobs. Get proposals from them on
Get proposals from them on how working can be improved and what

Get proposals from them on how working can be improved and what

they would like to see done. Make sure that at least some of these are

they would like to see done. Make sure that at least some of these are put into practice for the sake of

morale, if for nothing else. Discover the extent and the limits of your own authority.

morale, if for nothing else. Discover the extent and the limits of your own authority.

Discover what is regarded as the essential purpose of your job.

Discover what is regarded as the essential purpose of your job.

Get clear success criteria.

Get clear success criteria.

These should relate not only to the job’s result, but how you do it.

These should relate not only to the job’s result, but how you do it.

42

3-Organisations and People

Why do people resist meetings?

Meetings use more collective time to perform a simple task than any individual would use.3-Organisations and People Why do people resist meetings? Participation groups can be frustrating for those who

Participation groups can be frustrating for those who don’t get what they want.time to perform a simple task than any individual would use. People may be forced to

People may be forced to associate with colleagues they would rather avoid.can be frustrating for those who don’t get what they want. Group work dissipates the glory

Group work dissipates the glory any individual would have received for doing a good job.forced to associate with colleagues they would rather avoid. Committees can encourage controversy or conflict. Groups

Committees can encourage controversy or conflict.any individual would have received for doing a good job. Groups can make the simple complex.

Groups can make the simple complex. Hence the expression, “a camelgood job. Committees can encourage controversy or conflict. is a horse designed by a committee.” Committees

is a horse designed by a committee.”

Committees are frequently used to postpone work or to avoid facing a controversial problem. (Lets delegate that to a committee)“a camel is a horse designed by a committee.” Meetings can put individuals on the spot

Meetings can put individuals on the spot by pressuring them to state opinions publicly.a controversial problem. (Lets delegate that to a committee) Groups can lessen personal accountability for work.

Groups can lessen personal accountability for work.on the spot by pressuring them to state opinions publicly. Group assignments can foster unequal workloads

Group assignments can foster unequal workloads that are a fertile ground for resentment and lowered morale.Groups can lessen personal accountability for work. Meetings are often just plain boring, especially for those

Meetings are often just plain boring, especially for those who already know the material being covered, or for those who operate at a higher pace than others.that are a fertile ground for resentment and lowered morale. Meetings and Teamthink Teamwork at meetings

Meetings and Teamthink

Teamwork at meetings can increase creativity.

Teamwork at meetings can increase creativity.

A team approach should synergise thought. Participants stimulate one

A

team approach should synergise thought. Participants stimulate one

another, so that the whole becomes far greater than the sum of the parts.

Team work can reduce resistance to change by encouraging those who implement a program to

Team work can reduce resistance to change by encouraging those who implement a program to feel allegiance to it.

A good way to invite commitment is to ask for involvement in the

A

good way to invite commitment is to ask for involvement in the

planning of any project.

Participation groups can be frustrating for those who don’t get what they want.

Participation groups can be frustrating for those who don’t get what they want.

Spread workload so that more gets done.

Spread workload so that more gets done.

Improve planning. A critical group, with numerous viewpoints, is less likely to miss an important

Improve planning. A critical group, with numerous viewpoints, is less likely to miss an important contingency than is a person working alone.

Foster more satisfying work relationships, as people get to work in a positive, productive manner

Foster more satisfying work relationships, as people get to work in a positive, productive manner with peers.

43

Managing Human Resources

Organisational Structure

Old and new paradigms

 

OLD

NEW

STRUCTURE

Tall

Flat

SPAN OF CONTROL

Narrow

Wide

COMMUNICATION

Downward

Multi directional

DECISION MAKING

Autocratic

Democratic,

 

participatory

WORK RELATIONSHIPS

Competitive

Collaborative

WORK STRUCTURING

Departments, assembly lines

Groups, teams

SKILL BASE

Specialisation,

Multi skilling

divisions

INNOVATION PROCESS

Sequential

Simultaneous

POWER BASE

Official position

Expertise, skills in hierarchy

DIFFERENTIAL STATUS

High

Low

CONTROL

External,

Internal, within groups upon individuals

COMPENSATION FOCUS

Seniority

Merit, group

44

3-Organisations and People

Typology of organisations

What goals do organisations have?

TYPE OF

MAJOR

EFFECTIVENESS

ORGANISATION

FUNCTION

EXAMPLES

CRITERION

Habit

Number of

 

Replicating standard and uniform products

Highly mechanised factories etc.

products

Problem

Creating new ideas

Research

Number

solving

organisations

of ideas

Design and

Engineering

Consulting

organisations

Indoctrination

Changing people’s

Universities

Number

habits, attitudes,

Prisons

of people

intellect, and physical and mental behaviour

Hospitals etc.

leaving

Service

Distributing services

Military

Extent of

either directly

Government

services

to consumer or

Advertising

performed

to above types Taxi companies

45

Managing Human Resources

Bureaucracy

A definition of bureaucracy might be:

A business, or any institution, that exists to carry out an organisation. Or: Any company giving less than two-thirds of its energies to its business, and more than one-third of its energies to its organisation. Mediocrity in a bureaucracy exists, when the penalty for success gets to be as big as the reward for failure.

CHARACTERISTICS of BUREAUCRACY

Division of Labouras the reward for failure. CHARACTERISTICS of BUREAUCRACY Rules and procedures Authority Impersonality Careers and

Rules and proceduresfailure. CHARACTERISTICS of BUREAUCRACY Division of Labour Authority Impersonality Careers and merit BUREAUCRACY

Authorityof BUREAUCRACY Division of Labour Rules and procedures Impersonality Careers and merit BUREAUCRACY POSSIBLE

ImpersonalityDivision of Labour Rules and procedures Authority Careers and merit BUREAUCRACY POSSIBLE BENEFITS •

Careers and meritof Labour Rules and procedures Authority Impersonality BUREAUCRACY POSSIBLE BENEFITS • Stability • Efficiency

BUREAUCRACY

POSSIBLE BENEFITS

• Stability

• Efficiency

• Control

POSSIBLE PROBLEMS

• Red tape

• Inflexibility

• Dominating authority

• Position protection

Staff Rooms Many companies in the past set up their staff rooms as lacklustre and often small spaces and were at a loss to understand why usage of the facility by their staff was low. Enlightened companies are now commissioning interior decorators to design and implement stimulating, casual and relaxing staff rooms. These specially designed spaces take on a new persona and can even introduce a cafe ambience with a design theme and ‘funky’ colours’. The aim being to encourage staff to interact in-house at break times rather than going out.

46

3-Organisations and People

Managing Change

Do you have conscious procedures and commitment? Organisational change will not be maintained simply because there has been early success. There are a number of interventions that are possible, and many are necessary if a change is to be maintained. Many organisations are living with the effects of successful short term change results that have not been maintained Probably the most important requirement for continued change is a continued feedback and information system that lets people in the organisation know the system status in relation to the desired states.

POLITICAL ACTIONS Broaden the political support for radical actions. Realise the level of dissatisfaction and discomfort with the current situation. Sensitise key factors / champions to the need for change.

Progress is a nice word. But change is its motivator, and change has its enemies.

Robert Kennedy

SOME COMMON FEEDBACK SYSTEMS ARE:

Periodic team meetings to review a team’s functioning and what it’s next goal priorities should be.enemies. Robert Kennedy SOME COMMON FEEDBACK SYSTEMS ARE: Organisation sensing meetings in which the top of

Organisation sensing meetings in which the top of an organisation meets, on a systematic, planned basis, with a sample of employees from a variety of different organisational centres in order to keep appraised of the state of the system.functioning and what it’s next goal priorities should be. Periodic meetings between interdependent units of an

Periodic meetings between interdependent units of an organisation.in order to keep appraised of the state of the system. Renewal conferences. As an example

Renewal conferences. As an example an annual 5 year planning meeting, could be preceded by a weekend away at a retreat by the managers (and wives) concerned, to examine themselves, their personal and company priorities, new forces in the environment, forthcoming planning issues, what has happened in their working relationships and other issues for review before the planning meeting.meetings between interdependent units of an organisation. Performance review on a systematic, goal directed basis.

Performance review on a systematic, goal directed basis.and other issues for review before the planning meeting. Feedback from outside parties. doing If some

Feedback from outside parties.Performance review on a systematic, goal directed basis. doing If some people become upset, it is

doing

If some people become upset, it is a something significant.Performance review on a systematic, goal directed basis. Feedback from outside parties. doing good sign that

good sign that you are

47

Managing Human Resources

Executing Change - 10 Steps

1. Analyse the organisation and its need for change

2. Create a shared vision and common direction

3. Separate from the past

4. Create a sense of urgency

5. Support a strong leader role

6. Line up political sponsorship

7. Craft an implementation plan.

8. Develop enabling structures

9. Communicate, involve people and be honest

10. Reinforce and institute change.

Cure all It has been reported that, in a break with contemporary practice, Volkswagen halved absenteeism at its plants in Germany by hand- delivering get-well cards to workers who call in to advise that they are too sick to come to work that day. Employees who are not at home when the card carrier arrives are invited to talk to the boss on their return to duties.

CHANGING WORK HABITS Question assumptions.

return to duties. CHANGING WORK HABITS Question assumptions. Discard preconceived notions. Think about what the customer
Discard preconceived notions. Think about what the customer wants. Working in teams can be helpful
Discard preconceived notions.
Think about what the customer wants.
Working in teams can be helpful and very effective.
Define clearly what needs to be established.
Assess business priorities.
Articulate core values and beliefs.
Expect resistance and be prepared to deal with it.
You may not need to be an expert to achieve significant change.
Being an outsider can be an advantage.
Being part of Change can be fun and exciting.

There is a little rule of sailing where the more manoeuvrable ship should give way to the less manoeuvrable craft. I think this is sometimes a good rule to follow in human relations as well.

Psychologist Joyce Brothers

48

3-Organisations and People

People at Work - Cultures

A simple definition of a work place culture is that its culture is the personality of the business. Work place cultures are affected by:

• levels of trust

• stress

• social interaction

• the structure of reporting relationships

• personnel practices

• management and supervisory styles

• risk taking • fears and anxieties • factions and politics • company policies • work flow and work loads • job design

Many successful companies show a high profit orientation. The work force are kept informed of costs, profit and loss and accord a high priority to what surplus is all about. Concentration on profitability should help employees identify with overall company goals.

Common factors that lead to involvement and pride in ownership are:

a high degree of communication

a

high degree of communication

high pay / incentives

high pay / incentives

promotion from within

promotion from within

stress on training

stress on training

recognition of the ‘social’ side of work

recognition of the ‘social’ side of work

a genuine respect for the individual

a

genuine respect for the individual

We quote the example of a successful and well known Australian manufacturing company. Everybody is a ‘manager’. Performance standards are designed to provide ‘stretch objectives’. They are ‘market driven’, with scope for equity sharing and retraining. In these settings, the additional tasks include making relations less adversarial. There is a broadening of the agenda for joint problem solving and the facilitation of conciliation. However there needs to be a genuine desire embodied in a published mission statement, acknowledging the claims of employees - and shareholders, for this type of scheme to work. This attitude change has major implications for employee participation.

The CEO of another Australian company travels over 160,000 km a year visiting his plants and warehouses. The good managers welcome his visits because, ’when you start trying to anticipate what he will find you get better as a manager’. Finally in good, well run organisations, a positive attitude to such visits is, ‘to see it being done right’, - not to catch people making mistakes.

49

Managing Human Resources

Company Culture

FORMAL QUALIFICATIONS A well known and respected director of an Australian company, which

operates in a number of overseas countries likes to relate this story, usually after the second port:

“It is not only the MBA courses that produce arrogant graduates. I came

from University with a doctorate degree in economics thinking I knew

everything in the world. It took a couple of years in industry to teach me I knew very little.” Another leading and well respected Australian company director with an MBA from Harvard, says that even there, staff go to great lengths to discourage arrogance. “They tried to tell us that we would come out jacks of all trades and masters of none, that it would probably be years before we worked ourselves up to a job senior enough to look on business from the high perspective from which we had been regarding it at school. But that is a warning young people find difficult to accept.”

A common view of these two people is that, ‘To be a successful

manager and not just a back room specialist, one needs many qualities which are not intellectual but personal, such as leadership.’

An Australian owned company operating in the U.K., and other parts of the world, started to use the word ‘seamless’ to describe what the Australian headquarters called a ‘consistent level of standards’. The word was intended to mean there would be an internationally accepted internal standard and systems. To those in the Melbourne head quarters, it would mean that any client would receive a constant quality whether they purchased the services the company offered in Australia, London, Tokyo, New York or Singapore. It soon became obvious to the staff and management world wide, that what the word ‘seamless’ really meant, was that the common standards and phraseology being talked about would all be set in Melbourne and it was a case of do everything the Australian way. The company found itself with serious problems of how to handle the discontent and complaints about corporate imperialism! The ultimate result of this philosophy was that creative and dynamic staff soon left because their freedom of thought was being eroded and only customers who are attracted to and want to buy Australian will remain as customers. Ultimately managerial positions overseas have to be filled by Australians because they are the only ones prepared to perpetuate the gospel laid down by Melbourne headquarters.

50

3-Organisations and People

Forgetting Curves

FUTURE SHOCK It was not the great companies traditionally linked with radio valves that made the great success of semiconductors, but small companies that were almost complete strangers to the field. It was not the great electronic companies that made the conquest of computers possible, but companies that were working in different areas. This was not through lack of knowledge and skill on the part of the original companies, nor indeed lack of enterprise, but because their forgetting curves were too long. The newcomers simply had nothing to forget. This is the irony and the threat. A new company that has full access to latest technology - in whatever country - will immediately acquire the most up to date equipment, will train staff to the optimum level, will build up staff to the minimum level needed to work the equipment and will not be burdened by surplus plant, buildings and stock holdings. A long established company will have old plant, probably the wrong mix of skills in the work force, surplus machinery and buildings and will carry stock no longer relevant to the business. These constraints will be compounded by old style attitudes towards management methods, a trade union structure inherited from earlier and different times, and an ethos ill suited to the changing world.

Forgetting curves persist for several reasons.

ATTITUDES Dedication to past traditions, habits of thinking, pride, arrogance or just plain obstinacy are invariably present when forgetting curves are long. These are common human characteristics and should not be regarded as failings. Education, indoctrination, changing responsibilities, new people, early retirement and restructuring of firms are all methods that need to be considered and acted upon.

STRUCTURE An organisation that has evolved successfully around one type of product or market environment can rarely change rapidly. Yet all too often, new firms merely graft opportunities or challenges onto existing structures rather than take bold steps into the future. The reluctance to change comes in part from the attitudes described already, but it is also due to too slow a pace of change. People who can recognise the foothills of some dramatic change rather than merely seeing them as perturbations in the normal run of business are vital to innovation.

51

Managing Human Resources

Cultural Attributes - The Three Legged Stool

The Criteria for a Satisfying Job

• An optimal level of variety - one that avoids boredom, yet allows operators to settle into a satisfying work rhythm.

• The chance to learn on the job and to go on learning; i.e. targets for performance are set; feedback on performance is provided; performance is critiqued to work out ways for improvement.

• Adequate elbow room - people are not left completely on their own so that they do not know what to do next. But the boss is not breathing down their neck.

get help and

• A situation where

down their neck. get help and • A situation where they can respect from their work

they

can

respect from their work mates.

• A feeling that their work is useful to society.

• A desirable future - a job which enables the person to grow.

EMPLOYEES The first element involves treatment of employees, which forms a prominent part of

the psychological contract between company and employee. Employees dedication and loyalty is seen as a quid pro quo as a perception of fair treatment by the company. Employment security, good wages and benefits and employee safety are seen as the major issues in a lot of companies.

The chance to learn

on the job and to go

on learning

CUSTOMERS The second leg of the stool. Dedication to the service ethos should be a powerful value in successful companies. The importance of quality service should be instilled early in every employee’s career and constantly reinforced by management. ‘The Customer is King (or Queen)’, seems a fitting adage for the new millennium and should be practised at all times. Can your company conduct competitive customer service competitions to encourage excellence in customer service.

SHAREHOLDERS or OWNERS The third leg of the stool. Shareholder accountability should be safeguarded by those elements of organisational culture that encourage productivity and sound financial management.

52

3-Organisations and People

Crisis Management

Is your organisation prepared for the unexpected?3-Organisations and People Crisis Management Is your organisation prepared for, and able to handle a major

Is your organisation prepared for, and able to handle a major crisis?Management Is your organisation prepared for the unexpected? Is your organisation capable of handling a major

Is your organisation capable of handling a major crisis?prepared for, and able to handle a major crisis? Do you have a crisis management team

Do you have a crisis management team with clearly defined strategies for crisis?Is your organisation capable of handling a major crisis? Can you get accurate information about your

Can you get accurate information about your crisis, fast? Statistics suggest once a crisis commences:management team with clearly defined strategies for crisis? in 70% of cases it will escalate. in

in 70% of cases it will escalate.crisis, fast? Statistics suggest once a crisis commences: in 50% of cases it will interfere with

in 50% of cases it will interfere with business.once a crisis commences: in 70% of cases it will escalate. in 50% of cases it

in 50% of cases it will effect profits.escalate. in 50% of cases it will interfere with business. IN A MAJOR BUSINESS CRISIS Do

IN A MAJOR BUSINESS CRISIS

Do your key employees have a (confidential) list of after hours phone numbers?of cases it will effect profits. IN A MAJOR BUSINESS CRISIS Who is the back up

Who is the back up person if you are unavailable?have a (confidential) list of after hours phone numbers? Which Government Departments would you need to

Which Government Departments would you need to contact?numbers? Who is the back up person if you are unavailable? Are their phone numbers on

Are their phone numbers on your list?Which Government Departments would you need to contact? Would the switchboard operator be able to handle

Would the switchboard operator be able to handle incoming calls and questions in a crisis?you need to contact? Are their phone numbers on your list? Would a dedicated 1800 phone

Would a dedicated 1800 phone line be appropriate for use in a potential emergency?be able to handle incoming calls and questions in a crisis? SOME POTENTIAL PROBLEM AREAS •

SOME POTENTIAL PROBLEM AREAS

• Industrial accidents

• Union problems / strikes

• Rumours / media leaks

• Terrorism

• Bad debts

• Loss of a major customer

• Environmental problems • Product recalls • Government regulatory problems • Embezzlement • Loss of a key supplier

What if your business burnt down on a Sunday night? What if there was no power supply one morning, to your premises? Or your business was hit by an earthquake? (These are actual examples from our own work experience.) When this was originally written Sydney had just experienced a major hail storm, which was reported as being Australia’s second worst natural disaster. Tarpaulins to cover roofs had to be flown in from China, and weeks later many people affected by the storm were still experiencing difficulties. At the time of a major revision of this book Sydney was experiencing bushfires with major loss of property.

53

Managing Human Resources

Downsizing - Some Peter Principles

DOWNSIZING People responsible for downsizing - a euphemism for staff retrenchments, often on a major scale - have identified several phases in the process.

THE GRIEF PHASE

Shock

Shock

Staff drop their work

Staff drop their work

Staff congregate in groups for long periods of time trying to understand the ramifications

Staff congregate in groups for long periods of time trying to understand the ramifications

A paralysis of feeling

A

paralysis of feeling

THE DEPRESSION PHASE

Bargaining has failed

Bargaining has failed

A sense of helplessness and loss of control sets in

A

sense of helplessness and loss of control sets in

Pessimism and hopelessness take place

Pessimism and hopelessness take place

Some people with low skills remain in this phase until retirement

Some people with low skills remain in this phase until retirement

ACCEPTANCE

A recognition that the job and its benefits are lost

A

recognition that the job and its benefits are lost

An ability to look for new work and move on emotionally

An ability to look for new work and move on emotionally

Rehabilitation and rebirth

Rehabilitation and rebirth

In 1991 General Motors in the U.S. employed more than 400,000 people to make around 4.2 million motor cars. In the same year Toyota employed only 97,000 people to produce more than 4.2 million cars and trucks.

DO YOU HAVE A POSITIVE ATTITUDE TOWARD SUCCESS? 1) Are you happy only when you are doing better than others? 2) Do you feel that achievement commands respect? 3) Is it important to you to do well in the things you undertake? If you answered yes to these questions you have a positive attitude to be being successful.

Many companies, organisations and managers peak at an optimum size or level of competency, by performing at least one rung below the maximum level of incompetence.

Mark Twain said: Training is everything. ‘The pearl was once a bitter almond. A cauliflower is nothing but a cabbage with a university education.’

54

3-Organisations and People

Occupational Health and Safety (O. H. & S.)

All organisations should have an Occupational Health and Safety policy in place which is clearly understood by all employees. Those responsible for the Occupational Health and Safety policy should be equipped with the necessary skills to carry out and perform these policies and their functions under this policy. Some of the issues to address:

Employees need to be aware of the factors involved in work related injuries and disease, and be made aware of changes in Occupational Health and Safety issues.

Those responsible for administering the Occupational Health and Safety policy should have the knowledge, skills and competencies to carry out their tasks, and be able to identify potential and existing risks and hazards. Those responsible for administering the Occupational Health and Safety policy should be able to develop and implement preventative strategies. Those responsible for administering the Occupational Health and Safety policy should be able to represent both employer and employee in the consultative process. Those responsible for administering the Occupational Health and Safety policy should be aware of current legal requirements and keep up to date with changes in legal requirements and community expectations. Those responsible for administering the Occupational Health and Safety policy should implement training policies to effectively address relevant issues in their organisation. The organisation should have a system for investigating, reporting and recording incidents and accidents with an emphasis on prevention. Are your employees equipped with appropriate protective equipment? Does your organisation have an easily accessible FIRST AID station and a trained person to render emergency assistance? Does your organisation have a list of emergency phone numbers to be used in emergency situations? Does your organisation have an emergency procedure plan in place? Of course Occupational Health and Safety is a far more complex subject than this, and many organisations have a full time officer to handle this complex task.

have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In
have a full time officer to handle this complex task. O.H. & S. at work In

O.H. & S. at work In a general discussion with a construction company with 50 workers which we were doing some consulting work for, the subject of O.H. & S. came up. “We have a committee that looks after that. They have a meeting now and again after our other meetings”, was the proud response. “We even keep minutes”. A little later the appropriate minute book was shown to us. The only entry for at least a year read, ‘Jim to buy some band aids to stock up the first aid kit’.

55

Managing Human Resources

Discrimination

At the time of writing Sue Goward was the high profile head of the Office of the Status of Women. In press article she claimed that,

‘Discrimination does not come cheap. Its costs are not just financial penalty or damaging publicity for a company, but also lost opportunity. In fact it is almost passé to talk about discrimination; it is better known as bad management. A study in the United States rated the performance of the Standard & Poors 500 companies on equal-opportunity factors, including the recruitment and promotion of women and minorities. It found that companies rated in the bottom 100 for equal opportunity had an average of 8% return on investment. Companies rating in the top 100 had an average return of 18%. The lesson is clear: to be competitive, organisations need to take advantage of the range of talents of their staff and strengthen their business profiles and management diversity. Good equal-opportunity practice makes good business sense. Surveys show that poor equal-opportunity practices contribute to high staff turnover and absenteeism. A University of Melbourne study has estimated it costs a professional services firm about $75,000 to replace a key employee.’

Human Resource managers should constantly ask themselves, “Why would someone want to come and work in this organisation?”

someone want to come and work in this organisation?” Can you gain more from your people

Can you gain more from your people by empowering them. Can you increase their ability to achieve by enhancing their self- esteem and improving their skill set?

The PARETO PRINCIPLE

• In most companies 80% of the sales come from 20% of the customers.

• In most companies 80% of the complaints come from 20% of the customers.

• In most companies 80% of the profits come from 20% of the customers.

56

3-Organisations and People

An Employee Handbook - a suggested Outline

As a component of their Human Resources policy an organisation should have an employee handbook, which is given to all employees when they commence working for the company. This handbook could contain information on the following:

1] Welcome message 2] History of the organisation 3] This is our business 4] You and your future 5] What you will need to know

Working hours4] You and your future 5] What you will need to know Reporting to work ‘Time

Reporting to workand your future 5] What you will need to know Working hours ‘Time clock’ Rest periods

‘Time clock’What you will need to know Working hours Reporting to work Rest periods Absence from work

Rest periodsto know Working hours Reporting to work ‘Time clock’ Absence from work Reporting absences Employment record

Absence from workhours Reporting to work ‘Time clock’ Rest periods Reporting absences Employment record Pay period Shift

Reporting absencesto work ‘Time clock’ Rest periods Absence from work Employment record Pay period Shift premiums O.

Employment recordclock’ Rest periods Absence from work Reporting absences Pay period Shift premiums O. H. & S.

Pay periodAbsence from work Reporting absences Employment record Shift premiums O. H. & S. Use of telephones

Shift premiumsfrom work Reporting absences Employment record Pay period O. H. & S. Use of telephones How

O. H. & S.absences Employment record Pay period Shift premiums Use of telephones How to air complaints 6] These

Use of telephonesEmployment record Pay period Shift premiums O. H. & S. How to air complaints 6] These

How to air complaintsPay period Shift premiums O. H. & S. Use of telephones 6] These are your benefits

6] These are your benefits

Holidaystelephones How to air complaints 6] These are your benefits Rostered days off Work insurance Hospital

Rostered days offHow to air complaints 6] These are your benefits Holidays Work insurance Hospital and medical benefits

Work insurance6] These are your benefits Holidays Rostered days off Hospital and medical benefits Free parking Training

Hospital and medical benefitsare your benefits Holidays Rostered days off Work insurance Free parking Training program Christmas bonus Savings

Free parkingdays off Work insurance Hospital and medical benefits Training program Christmas bonus Savings plan Profit -

Training programWork insurance Hospital and medical benefits Free parking Christmas bonus Savings plan Profit - sharing plan

Christmas bonusHospital and medical benefits Free parking Training program Savings plan Profit - sharing plan Suggestion awards

Savings planbenefits Free parking Training program Christmas bonus Profit - sharing plan Suggestion awards Service awards 7]

Profit - sharing planFree parking Training program Christmas bonus Savings plan Suggestion awards Service awards 7] These special services

Suggestion awardsprogram Christmas bonus Savings plan Profit - sharing plan Service awards 7] These special services are

Service awardsbonus Savings plan Profit - sharing plan Suggestion awards 7] These special services are for you

7] These special services are for you

Credit unionawards Service awards 7] These special services are for you Education plans Medical dispensary Employee purchases

Education plansawards 7] These special services are for you Credit union Medical dispensary Employee purchases Cafeteria Monthly

Medical dispensaryspecial services are for you Credit union Education plans Employee purchases Cafeteria Monthly magazine Social club,

Employee purchasesare for you Credit union Education plans Medical dispensary Cafeteria Monthly magazine Social club, annual outing,

Cafeteriaunion Education plans Medical dispensary Employee purchases Monthly magazine Social club, annual outing, etc. Sporting

Monthly magazineplans Medical dispensary Employee purchases Cafeteria Social club, annual outing, etc. Sporting activities 8]

Social club, annual outing, etc.plans Medical dispensary Employee purchases Cafeteria Monthly magazine Sporting activities 8] Index / table of contents

Sporting activitiesdispensary Employee purchases Cafeteria Monthly magazine Social club, annual outing, etc. 8] Index / table of

8] Index / table of contents

57

Managing Human Resources

Code of Conduct

Many organisations produce a Code of Conduct for their employees.

of their

supervisor and then sign it to indicate they understand the ethical procedures of the organisation. Everything must be above board and be seen to be so. Internal auditors may be responsible for checking procedures. A code of ethics may be necessary to support a Code of Conduct.

Employees

would be

expected

to

read

it,

ask questions

Procedures might include:

Protection of confidential informationexpected to read it, ask questions Procedures might include: Avoiding conflicts of interest Directing media contacts

Avoiding conflicts of interestmight include: Protection of confidential information Directing media contacts to media relations Prohibiting

Directing media contacts to media relationsof confidential information Avoiding conflicts of interest Prohibiting drugs and alcohol Eliminating the risks of fraud

Prohibiting drugs and alcoholof interest Directing media contacts to media relations Eliminating the risks of fraud and corruption Prohibiting

Eliminating the risks of fraud and corruptioncontacts to media relations Prohibiting drugs and alcohol Prohibiting gambling Discouraging and reporting gifts and

Prohibiting gamblingand alcohol Eliminating the risks of fraud and corruption Discouraging and reporting gifts and entertainment A

Discouraging and reporting gifts and entertainmentthe risks of fraud and corruption Prohibiting gambling A code of ethics may be necessary to

A code of ethics may be necessary to support a Code of Conduct and to address issues, including cultural issues, such as:gambling Discouraging and reporting gifts and entertainment What do we as an organisation think is worthwhile?

What do we as an organisation think is worthwhile?and to address issues, including cultural issues, such as: What are our core values? What sort

What are our core values?such as: What do we as an organisation think is worthwhile? What sort of principles are

What sort of principles are we using for our decision making process?organisation think is worthwhile? What are our core values? These issues and values can be developed

These issues and values can be developed at monthly staff meetings

58

3-Organisations and People

Negotiation

Negotiate is what we do when the other side can hurt us’, is an old adage veteran diplomats like to use. This implies that negotiation is an exercise in relative power, in which one side tries to win as much as possible while minimising the risk of getting hurt. This view implies there must be a winner and a loser, at least relatively. How much each side wins or loses depends on its relative power and its skill in using this power, or threatening to use it, during negotiation. People who try to resolve conflicts through the use of power often get the creativity of their opponents turned against them. Consequently, what is seen as a win-lose confrontation (usually by both parties) frequently winds up as a lose-lose: neither party gets what it really needs. Most of us see differences between us as problems to which we must apply our imagination to get our way. If we could believe that conflict, when properly managed, can be an opportunity rather than a problem, and that outcomes favourable to both sides are possible, we might free ourselves from the mental tyranny of misusing power in negotiation.

THE UTILITY OF BARGAINING Bargaining is often legitimate, such as when a shopkeeper would rather sell for less than not at all, and the customer would be willing to buy if the price were right. The two begin to bargain when the customer perceives that the price of the object is not fixed. Bargaining is also useful when limited resources must be shared, and each party is striving to maximise its portion: the idea of splitting the difference may lead to a quick agreement that leaves everyone satisfied.

CREATIVE NEGOTIATION: A WIN - WIN APPROACH

More than ever before conflict must be resolved beneficially, harmful behaviour confronted effectively, and new and more satisfactory ways of sharing a broad range of resources negotiated.

Conflicts of need arise naturally and can produce beneficial results.ways of sharing a broad range of resources negotiated. Negotiation can be more than a contest

Negotiation can be more than a contest in relative power.of need arise naturally and can produce beneficial results. Negotiation is a complex process that includes,

Negotiation is a complex process that includes, but is not limited to bargainingof need arise naturally and can produce beneficial results. Negotiation can be more than a contest

59

Managing Human Resources

Creative Negotiating

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

Union-management talks being a good example.

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

Measuring your professionalism How do your customers, peers and staff measure your professionalism? They are continually using clues to assess you (don’t forget, you only get one chance to make a first impression). You can assert your control by influencing and optimising the effect of the clues you are sending, in areas such as:

• Symbols of authority

• Symbols of expertise

• Vocabulary and articulation skills

• Personal character development

• Personal packaging

When competitiveness or suspicion pervades a relationship, when ideologies conflict, when the use of power threat are endemic, when the relationship is short term and formal, when haggling is expected and appropriate, or when impasse exists, bargaining may be the best way to settle an issue.

60

3-Organisations and People

The Process of Negotiation

Preparation and planning - do your homework ahead of time.3-Organisations and People The Process of Negotiation Research the opponent or opposition. Familiarise yourself with the

Research the opponent or opposition.Preparation and planning - do your homework ahead of time. Familiarise yourself with the opponent’s past

Familiarise yourself with the opponent’s past behaviours, philosophy, speeches, viewpoints, writings, tactics, aspirations, successes and failures.homework ahead of time. Research the opponent or opposition. Research the history of the conflict. What

Research the history of the conflict.writings, tactics, aspirations, successes and failures. What led up to these negotiations and what possible

What led up to these negotiations and what possible solutions are available?and failures. Research the history of the conflict. Research the present conditions. Is a site visit

Research the present conditions. Is a site visit appropriate?negotiations and what possible solutions are available? Formulate requirements. What do you need out of the

Formulate requirements.the present conditions. Is a site visit appropriate? What do you need out of the negotiations?

What do you need out of the negotiations?Is a site visit appropriate? Formulate requirements. Assess motivations. Evaluate both yours and that of the

Assess motivations.requirements. What do you need out of the negotiations? Evaluate both yours and that of the

Evaluate both yours and that of the other party.do you need out of the negotiations? Assess motivations. Consider time and timing. How much pressure

Consider time and timing.Evaluate both yours and that of the other party. How much pressure will I be under

How much pressure will I be under to achieve an agreement?yours and that of the other party. Consider time and timing. Should we finalise the matter

Should we finalise the matter later?How much pressure will I be under to achieve an agreement? Identify all the parties to

Identify all the parties to the negotiations.achieve an agreement? Should we finalise the matter later? Are there third parties or other people

Are there third parties or other people such as lawyers involved?matter later? Identify all the parties to the negotiations. Identify the power figures on the other

Identify the power figures on the other side.third parties or other people such as lawyers involved? Who are the decision makers, change agents,

Who are the decision makers, change agents, and those wishing to maintain the status quo?involved? Identify the power figures on the other side. Determine the costs of a stalemate. What

Determine the costs of a stalemate.change agents, and those wishing to maintain the status quo? What is the best alternative if

What is the best alternative if my final offer is rejected?maintain the status quo? Determine the costs of a stalemate. What is the next best alternative?

What is the next best alternative?What is the best alternative if my final offer is rejected? Choose strategy or tactics. What

Choose strategy or tactics.alternative if my final offer is rejected? What is the next best alternative? What tactics best

What tactics best suit this situation?is the best alternative if my final offer is rejected? What is the next best alternative?

61

Managing Human Resources

The Negotiation Conference

Pre negotiation discussion This may be done to establish a relationship, to soften up the opponent, or to assess the potential problems involved in the negotiation. Seldom is anything critical discussed, as the purpose is to become acquainted amicably. The meeting can be held at each others office or a neutral site. The goal is to create an informal, relaxed and friendly environment that will discourage tension and competitiveness and encourage co-operation and a willingness to solve problems. Opening the meeting, arrival and protocol. The formal opening of the meeting and the presentation of the participants may establish rank, precedence, and other aspects of each party’s relationship to its counterpart. Initial remarks. This step primarily sets the tone of the conference. The remarks do not deal with matters of substance.

Formalities. Introductions, rituals, a statement of purpose, or charter, or a review of the background to the conference may come at this step. Statement of the problem. The reasons for the negotiation are summarised in unequivocal words. This should be a step to a statement of the goals desired. Establishing ground rules. Matters such as the use of facilities, seating arrangements, work schedules (hours, breaks, etc.) and support services can be discussed. Establishing the agenda. This is vital. You must ensure that all the items you consider critical are on the agenda, or can be introduced at appropriate or (advantageous) or vital times. Discussion - Give and take. This includes not only bargaining, but all the activity of working out an agreement. This is the problem solving stage, the crux of the negotiation. This is where the art of negotiation, good or bad is displayed. Conclusion. Agreements may be reached in stages, and there may be several stages at which agreements are reached. Great care should be taken at this stage against any possible misconceptions. Developing an agreement. This may vary between nodding of heads in agreement or the construction of a complex legal document.

may be examined for

Review

loopholes, ambiguous words or phrases etc. Ratification. This can range between the parties saying ‘okay’, shaking hands or be far more complex and need some type of formal ratification.

and adjustment. A formal agreement

62

3-Organisations and People

Questions - What are they?

question is an opening to creation.3-Organisations and People Questions - What are they? question is an unsettled and unsettling issue. A

question is an unsettled and unsettling issue.- What are they? question is an opening to creation. A A A question is an

A

A

A

question is an invitation to creativity.question is an unsettled and unsettling issue. A A A question is a beginning of adventure.

question is a beginning of adventure.issue. A A A question is an invitation to creativity. question is seductive foreplay. A A

question is seductive foreplay.to creativity. question is a beginning of adventure. A A A question is a disguised answer.

A

A

A

question is a disguised answer.of adventure. question is seductive foreplay. A A A A question pokes and prods that which

A

question pokes and prods that which has not yet been poked andseductive foreplay. A A A question is a disguised answer. A prodded. A question is a

prodded.

A

question is a point of departure.and prods that which has not yet been poked and prodded. A question has no end

question has no end and no beginning.been poked and prodded. A question is a point of departure. question wants a playmate. A

question wants a playmate.a point of departure. question has no end and no beginning. A A TWELVE BASIC QUESTIONS

A

A

TWELVE BASIC QUESTIONS

Introduction Q. What would you like to get clear about today?

A.

I would like to get clear about my relationship to

Q.

What is it about

that

is not clear?

The questions:

1.

What is the goal you would like to achieve?

2.

What solutions have been attempted so far?

3.

What is it about these attempts that did not work?

4.

What is your feeling regarding the situation? - e.g. anger, hurt, fear, sorrow.

5.

What is your attitude regarding the situation? - e.g. contempt, judgement, criticism.

6.

What benefits do you receive from having this situation?

7.

What is the reality of the situation?

8.

What would you like to see happen?

9.

What else would you like to see happen?

10.

What do you need to do at this time?

11.

How would your life be different if this situation were changed?

12.

What one thing are you willing to change to make this be what you would like it to be?

63

Managing Human Resources

My Job - My Role

This quick quiz should be done from memory, without reference to any outside prompts.

The most important areas of activity for me are:

1]

2]

3]

The major outcomes required from my job are:

1]

2]

3]

Targets which I am expected to meet are:

1]

2]

3]

The most important people/departments for me to interact with are:

1]

2]

3]

The individuals / groups I have direct authority over are:

1]

2]

3]

For most people at work there is: A role that should be performed, a role that the person thinks they are performing and there is a role that they are actually performing. A common method of overcoming these problems is Management by Objectives [MBO], or similar setting of objectives for a person’s position. Some of the criteria used to set these objectives:

CLEAR definite, specific and unambiguous. MEASURABLE in terms of quantity and / or quality CONSISTENT will contribute to the desired end result of the organisation or unit. CHALLENGING encouraging personal skills and knowledge growth ACHIEVABLE possible for the job holder ACCEPTABLE agreed to and accepted by both the person and the person’s manager.

64

4

Leadership and Motivation

Managing Human Resources

Leadership

What type of leadership should an effective leader provide?

Some of the myriad leadership responsibilities of management include:

myriad leadership responsibilities of management include: Showing organisation. the way, and defining the goals and

Showing

organisation.

the

way,

and

defining

the

goals

and

intentions

of

the

Going ahead of, in a spiritual relationship with your people.the way, and defining the goals and intentions of the Guiding, people into alternate methods and

Guiding, people into alternate methods and directions.ahead of, in a spiritual relationship with your people. Causing progress, and setting in motion people

Causing progress, and setting in motion people and activities for progress.Guiding, people into alternate methods and directions. Being decisive, and maintaining constant flow and growth.

Being decisive, and maintaining constant flow and growth.and setting in motion people and activities for progress. Having grace under pressure Creating pathways with

Having grace under pressureBeing decisive, and maintaining constant flow and growth. Creating pathways with the leader’s values and visions.

Creating pathways with the leader’s values and visions.constant flow and growth. Having grace under pressure Controlling and influencing actions of people and the

Controlling and influencing actions of people and the organisation.Creating pathways with the leader’s values and visions. Directing and maintaining cohesive achievement. Commanding

Directing and maintaining cohesive achievement.and influencing actions of people and the organisation. Commanding and exerting authority in the context of

Commanding and exerting authority in the context of effective leadership.Directing and maintaining cohesive achievement. Raising morale, of people and the organisation. Being the

Raising morale, of people and the organisation.exerting authority in the context of effective leadership. Being the first and more important, letting others

Being the first and more important, letting others be the first, and receive the credit.leadership. Raising morale, of people and the organisation. Heading the team and being ultimately responsible for

Heading the team and being ultimately responsible for what happens.letting others be the first, and receive the credit. Beginning, and setting in motion the stimulus

Beginning, and setting in motion the stimulus and movement for motion.the team and being ultimately responsible for what happens. Each of us wants continuing reassurance on

Each of us wants continuing reassurance on two points:

1. ‘Tell me what you expect of me.’

2. ‘Tell me how I am getting on.

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

66

4-Leadership and Motivation

Leadership

The Visionary Creates meaning by crafting a vision, mission and direction that define the focus of an enterprise. Continually evolving, elaborating, and interpreting this meaning for the people in the organisation.

The Team Builder Puts the correct people in the correct places for the leadership team, welds them into a focused team to advocate the common goal, using their individual strengths and resources, continuously developing them as a team and as individual leaders who can produce the desired results.

The Buck-stopper Faces the difficult issues, sorts the truth from the challenges, and makes the necessary decisions and changes. This person needs to be open minded, a good listener and be prepared to collaborate with the management team.

The Living Symbol Leads in a highly visible manner, which is not necessarily a charismatic style but a constant and persistent pattern of reinforcing the organisational goals, at every opportunity. This will involve simple, everyday actions that enable people to associate the leader with the success of the organisation. This association will result in the leader being automatically associated with a concept of success. This person will become a ‘human logo’.

Each of these people needs to be a visionary, a team builder, a living symbol, and a buck stopper for their own enterprise, within the enterprise.

The people working for you will expect:

Clear direction and objectives, including target dates.the enterprise. The people working for you will expect: Equal and fair treatment. Good training, based

Equal and fair treatment.Clear direction and objectives, including target dates. Good training, based on their present work to prepare

Good training, based on their present work to prepare them for advancementincluding target dates. Equal and fair treatment. Proper equipment and adequate resources. Good working

Proper equipment and adequate resources.based on their present work to prepare them for advancement Good working conditions. An even work

Good working conditions.for advancement Proper equipment and adequate resources. An even work flow free from peaks and troughs.

An even work flow free from peaks and troughs.equipment and adequate resources. Good working conditions. Recognition of their performance and of their worth as

Recognition of their performance and of their worth as individuals.conditions. An even work flow free from peaks and troughs. To develop as a team. Encouragement

To develop as a team.of their performance and of their worth as individuals. Encouragement of effort. Protection from hazards. A

Encouragement of effort.and of their worth as individuals. To develop as a team. Protection from hazards. A good

Protection from hazards.individuals. To develop as a team. Encouragement of effort. A good example. Information on what is

A good example.as a team. Encouragement of effort. Protection from hazards. Information on what is happening and on

Information on what is happening and on what is going to happen.of their worth as individuals. To develop as a team. Encouragement of effort. Protection from hazards.

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Managing Human Resources

Leadership Steps

BASIS PROCESS LEADER BEHAVIOURS OUTCOMES Power Base PERFOR Legitimate ASSIGN IMPLEMENT EVALUATE REWARD -MANCE
BASIS
PROCESS
LEADER BEHAVIOURS
OUTCOMES
Power
Base
PERFOR
Legitimate
ASSIGN
IMPLEMENT
EVALUATE
REWARD
-MANCE
Reward
Direct
Guide
Control
Revise
Productivity
Coercive
Order
Support
Review
Feedback
Satisfaction
Expert
Instruct
Monitor
Critique
Reward
Turnover
Referent
Plan
Delegate
Appraise
Punish
Absenteeism
Information

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