HRM
UNDERSTAND AND APPLY PLANNING APPROACHES FOR ASPECTS OF
HUMAN RESOURCE MANAGEMENT FOR THE PROCUREMENT AND SUPPLY
FUNCTION
EXAMPLES OF QUESTIONS
EXPLAIN APPROACHES IN THE IDENTIFICATION OF SKILLS AND KNOWLEDGE
REQUIREMENTS IN PROCUREMENT AND SUPPLY
Identify the organisation business strategy to retain competitive advantage
Highlight the use of job analysis, job description, and person specification and
commence analysis in the procurement function
EXPLAIN VARIOUS STAGES IN RECRUITMENT AND SELECTION FOR
PERSONNEL WORKING IN PROCUREMENT AND SUPPLY
Identify from the case study why a new worker is required, (business strategy)
Highlight activities under the four stages in selection and recruitment process
EXPLAIN HRM FUNTIONS RELEVANT TO PROCUREMENT AND SUPPLY
(SHARED HUMAN RESOURCE MANAGEMENT)
Check the existence of human resource department-to identify and state its specialist
internal service provider in resourcing the organisation.
Link day to day human resource management activities to the procurement manager
CHAPTER OVERVIEW HUMAN RESOURCE MANAGEMENT
INTRODUCTION AND CONCEPTS OF HUMAN RESOURCE MANAGEMENT
HOW TO IDENTIFY SKILLS AND KNOWLEDGE REQUIREMENTS FOR
PERSONNEL IN THE PROCUREMENT AND SUPPLY FUNCTION
THE KEY COMPONENTS OF A RECRUITMENT AND SELECTION PLAN TO
MEET THE SKILLS AND KNOWLEDGE NEEDS OF THE PROCUREMENT
AND SUPPLY FUNCTION
HUMAN RESOURCES FUNCTION AND SHARED RESPONISBITY
1. INTRODUCTION AND CONCEPTS
DEFINATION OF THE TERM HRM
Bratton and Gold (2007), defined HRM as a strategic approach to manage employment
relations, which emphasizes that leveraging people’s capabilities is critical to achieve
competitive advantages, this is being achieved through a distinctive set of integrated
employment policies, programmes and practices.
HRM AND SCHOOLS OF MANAGEMENT
HRM practices can be aligned to classical theory of management in the use of human capital
who need to be utilised to the best of the organisation by aligning individuals to organisation
strategy
HRM practices can be aligned to human relations school of management through human and
neo human theories- in that it is important to motivate people and increase their satisfaction
through a reward mechanism and same time encourage social capital.
HARD AND SOFT HRM
Hard HRM: aligned to classical approaches to management where focuses is on optimising
human capital to the advantage of the organisation. • This perspective looks at the best ways
to utilise and manage human capital to deliver the organisation’s strategic goals.
Features
Utilise scientific management approaches when managing staff-Fredrick tailor principles
Put emphasis on cost savings through labour
Focus on individual productivity
Look the individual as a cost unit in the organisation
Reject trade union membership and collective bargaining
Soft HRM: emphasises the human aspect. Focuses on driving employee
satisfaction, increasing motivation, developing the individual and rewarding people
for the value they add.• This perspective advocates careful managing of the employment
relationship, and investing in employee learning, development and career management, as
well as methods to increase employee engagement and productivity.
Features
Utilise human relations theory of management –human relations and neo human-motivation
View workers as an organisations asset
Encourage employee involvement and collegiate working arrangements (work environment
where responsibility and authority is shared equally by colleagues.)
Enhancing employment relationships
Investing in developing people
ELEMENTS OF HRM
HRM is an umbrella covering the following issues on people management.
People resourcing –getting people with particular talents and skills
Talent management, succession planning, people resourcing
• Reward and recognition through tangible and intangible factors
• Employment relations, wellbeing collective bargaining
• Corporate social responsibility (CSR)-treating employees ethically
Learning and development (L&D) defined as the process of empowering employees with
specific skills to drive better business performance
.
HUMAN CAPITAL MANAGEMENT
An HCM mind-set views employees as company assets to be invested in so that their
organizational value can be maximized
The human capital theory states that an organisation can use human resources in order to
improve its competitive advantage. People form part of intellectual capital which make them
become valuable asset Human capital management focuses on three areas:
Acquisition of human capital: people with the preferred knowledge and skills
Social capital: creating relationship networks to enable generation of knowledge e.g teams
Organisation capital: creating and storing knowledge, manuals, designs patents, succession
planning
VRIN CONCEPT AND HUMAN CAPITAL MANAGEMENT
These are the four factors required through human resources in order to sustain competitive
advantage
Value: acquire human Resources who can bring value and enhance competitive. This may
be rare to get and therefore exploit available opportunities by acquiring people with required
skills and competencies, at the same time retain them to ensure threats of leaving to
competitors is avoided. For the organisation capital protect it from infringement
Rareness: Resources that are available to all competitors rarely provide any significant
competitive advantage. This is by building the competency of the current manpower and
creating social capital structures for innovations
Imitability: An ideal resource cannot be obtained by competing businesses. Protect available
knowledge
Non-substitutable: An ideal resource cannot be substituted by any other resource. Create a
favourable environment for growth
REWARD MANAGEMENT INTERVENTIONS
It is an approach which management uses to determine how to reward an individual or team
members this can be done through various interventions:
Designing a reward system
Implementation of job evaluation schemes
Benchmark on best practice of reward management
Performance measurement
Use of financial and non-financial rewards
Creating employee benefit schemes
EMPLOYEE RELATIONSHIP INTERVENTIONS
Honouring of psychological contract
Create discipline and grievance process
Enforce health and safety standards
Ensure employee participation in decision making
Providing feedback
Developing people
Rewarding employees
Ensure there is open communication by promoting employee voice
Through upward problem solving approach and workers representations
HUMAN RESOURCE DEVELOPMENT
Human Resource Development (HRD) is the framework for helping employees to develop
their personal and organizational skills, knowledge, and abilities. Normally done through the
following organisation interventions
Leadership and management development –succession planning
Change management-changing organisation culture
Designing various methods of learning
Use of various training methods
Potential talent identification and management
Coaching and mentoring
Encouraging employees to look for professional accreditations
VAUES POLICY AND FUNTIONS
HRM –VALUES /PRINCIPLES (BRAND MANAGEMENT)
These are moral ideas, collective conceptions of what is considered good, desirable unique to
each organisation, they are defined along the organisation culture to build their brand.
According to Armstrong there are six values of HRM
Equity-employees must be treated the same (in relation to their rights)
Consideration: employment decisions based on diversity of individuals (inclusion)
Organisational learning: training programs for all and knowledge management
Performance through people: performance measurement, feedback and continuous
improvements
Quality of working life: suitable work-life balance
Working conditions: pleasant, healthy and safe
HRM POLICY: (THE LAW AND VALUES)
This is formulated in line with the labour law and in line with organisation values, they must
be complied with and also aligned to organisation culture .They define how the organisation
fulfils its social responsibilities for its employees and sets out its attitude towards them.
Examples
Recruitment and selection policy
Training and development policy
Employee’s welfare policy, wage and incentive policies
Grievances and Disciplinary Actions.
Avoidance of child labour
Collective bargaining
These policies are important because they create a transparent in employment relationships
2. IDENTIFICATION OF KNOWLEDGE AND SKILLS
REQUIREMENTS-
i)Conduct JOB ANALYSIS,
Job analysis is the process of collecting, analysing, and setting out information about the
contents of jobs in order to provide the basic of data for job description, recruitment, training,
and performance management, important information collected is knowledge, skills, and the
experience needed to carry out a job effectively.
Job analysis produces the following information about job
Overall purpose: why the job exists and, in essence, what the job holder is expected to
contribute
Content: the nature and scope of the job in terms of the tasks and operations to be performed
and duties to be carried out.
Structure: position in the organisation structure, responsibilities and reporting
Systematic method of collecting information about job content (job analysis methodology)
Refer Documents: information about existing job such as activities, previous training
information about the job-important when bringing a new person
Direct observation of the procedures and process-important when the job is to be reviewed
Discussion with the job holder to get information regarding the job through the Experiences
of the job holder
POSITION ANALYSIS QUESTIONEER
This is used to capture the following information regarding job skill level and human
characteristic on the job e.g or role analysis
Information input: Where and how does the worker get the information he or she uses in
performing the job?
(2) Mental processes: What reasoning, decision-making, planning, and information-
processing activities are involved in performing the job?
(3) Work output: What physical activities does the worker perform and what tools or devices
does he/she use?
(4) Relationships with other persons: What relationships with other people are required in
performing the job?
(5) Job context: In what physical or social context(s) is the work performed?
TYPES OF KNOWLEDGE REQUIRED IN PERFORMING JOBS
Declarative knowledge- knowledge about' or the answers to the what, where, when, or who
types of questions
Procedural knowledge- is the type of knowledge exercised in the performance of a task. It's
basically “how” you know to do something. Steps of doing tasks
Self-knowledge-awareness of the job from previous experience
General knowledge-application of present knowledge to emerging situations
ii) CREATE A JOB DESCRIPTION
A broad, general, and written statement of a specific job, based on the findings of
a job analysis.
It is the reference point for a successful candidate being interviewed and it contains the
following
The job title
• Position in the structure and reporting lines
• Purpose of the job and areas of responsibility
• Main duties and tasks, including deliverables
• required qualifications, training and experience
• Soft skills and characteristics required
• Location and travel requirements
• Reward information, including remuneration range and any benefits
• Scope for personal and career development
An example of job description for a buyer in a retail organisation may include the
following
Job title: Category buyer
Department: Perishables
Position in the structure: Middle management reporting to chief buyer
Purpose of the job: Support company sales, area of responsibility, sourcing fruits and
vegetables at the right price, managing relationships with suppliers
Main duties and tasks: Review of stock levels, ordering and expediting deliveries, following
up invoices, monitoring supply and demand of perishables
Soft skills required: communication, negotiations and relationship management
Location and travel: Headquarters, travel requirements, visiting farmers locally to understand
quantities available
Reward information, including remuneration range and any benefits: in addition to salary the
position attracts bonus based on savings per KPI set on price and budge
Scope for personal and career development: opportunities to be promoted, to attend further
training
iii) Person specification
The person specification is a description of the qualifications, skills, experience, knowledge
and other attributes (selection criteria) which a candidate must possess to perform the job
duties
iv) Conduct Competency analysis
This is the ability to do something successfully or efficiently or the able to perform certain
tasks or skills with a required level of proficiency. Competence indicates sufficiency of
knowledge and skills that enable someone to act in a wide variety of situations.
CIPS provides framework of five levels of competency describing capabilities required by
procurement professional at each level, this can be a good basis of developing job
descriptions when recruiting
Level of competency Key competency Position
Tactical Perform process tasks Assistant buyer , stock
controller ,contract
administrator
Operational Provides advice and Buyer ,supply chain analyst,
guidance on procedure and procurement specialist
process to be followed
Managerial Develops and improve Contract manager, category
procurement objectives in manager, chief buyer, senior
line with organisation buyer
objectives
Professional Introduces changes and Supply chain manager,
formulates new directions strategic procurement
leads and influences others manager
Advanced professional Influences boards, leads Procurement and supply
teams, influences markets chain director, chief
through innovative sourcing, procurement director
establishes best practices
Frame work allocating roles according to skills, knowledge and competency
Area Key knowledge and skills
Infrastructure Ability to use technology, analyse the
environment and influence other
Process Ability to follow stages in a sourcing
process, develop a contract and apply tools
for spend management
Performance management Ability to develop metrics to measure
performance and deliver outcomes
People development Ability to improve own skils,improve others
,use of ethics
iv) Person specification:
3. KEY STAGES IN A RECRUITMENT AND SELECTION CYCLE
1) Identification of vacancy
A vacancy may arise in procurement function because of the following
Restructuring of an organisation eliminating some positions and creating new ones
The organisation develops a New products a new buyer may be required
The organisation is Expanding by opening new divisions with a devolved procurement futon
The procurement manager can create a new structure sourcing process with May activities to
be done
Promotion, Termination Resignation, transfers
2.) Attract and identification of
Focus on what the new employee will do by reviewing job through job analysis and develop
job description
Attract potential candidate by through advertisement website, agency, and social media,
recommendations by existing employees.
Brand reputation is key in attracting potential candidates
3.) Candidate selection
Short listing-a typical short listing criteria should be based on, education and qualification,
work experience, skills and knowledge, personality traits and competency
Interview –this can be through structured and unstructured method,
Structured interviews are known as competency based interviews with predetermined
questions on particular areas in the job analysis
Unstructured interviews- Unstructured interviews do not use any set questions, instead, the
interviewer asks open-ended questions based on a specific research topic, and will try to let
the interview flow like a natural conversation. They are sometimes called
informal interviews.
4.) Employment offer and induction: by the human resources department and the immediate
manager
Nb:The whole of these actvities can be done through an IT Software
THE USE OF ICT IN RECRUTIMENT PROCESS
A information technology software can be used in a recruitmnet process in order to make the
process more efficient and effective
It can carry the following funtions
Candidate sourcing through online advertisements
Applicant tracking through various communications and interactions
Pre-recruitment assesment and backgroung check through online tests
Online interview test conducted virtualy
Candidate online evaluation
Advantages of using IT software in recruitment are :
Reduced time in getting the right candidate
Cost savings
Efficiency of the process
Recruitmnent quality
Transperency
4. HRM FUNTIONS RELEVANT TO PROCUREMENT AND SUPPLY
Recruitment and selection negotiation of terms and condition, induction and probation
Equality and equal opportunity-avoidance of discrimination, inclusion and diversity
Performance management-goal setting, Balance score cards Management by objectives
Grievance and whistle brewing – disclosure of fraud, corruption, and child labour, giving
workers opportunity to be heard.
Health and safety-ensure stress free working arrangement, safety of ICT, Avoidance of
bullying, sexual harassment at work places
Talent management and employee development-training on the job and off the job, mentoring
and coaching, promotions and succession planning
Employee relationships-flexible working, consultations
Reward management: benefits, allowances, pensions.
People resourcing and the employment cycle
This take in to account the following
Employer brand and value proposition-state the organisation uses diversity, equality and
inclusion
Work planning- human resources, roles and responsibilities targets procedure, measurement,
review
Ensure when recruiting step by step procedure recruitment and selection is followed
Employee induction and retention
Talent and succession planning
Management of casual and contract workers
Work force flexibility-putting in place various flexible working arrangement
Preventing Absence and turn over
Managing Termination redundancy and downsizing
HUMAN RESOURCE MANAGEMENT AND SHARED RESPONSIBILITIES
The human resources manager can dedicate to support other line managers as a consultant
and an internal service provider through
Planning manpower requirements in line with changes
Developing human resourcing programs
Developing personnel policy in line with employment law
Advising other department on personal issues
The line managers can perform the following personnel tasks
Creating job analyses, description
Designing jobs
Requesting for employees
Establishing team working
Ensuring the work environment is healthy and safe
Performance evaluation
Day to day communication, consultation and involvement
Handling grievances and issues of discipline
Consulting and liaising with HR
Keeping employee records