Master of Business Administration Human Resource Management STUDY GUIDE Copyright © 2016 MANAGEMENTCOLLEGE OF SOUTHERN AFRICA All rights reserved; no part of this book may be reproduced in any form or by any means, including photocopying machines, without the written permission of the publisher. Please report all errors and omissions to the following email address: [email protected] Human Resource Management MANCOSA – MBA Year 1 2 Human Resource Management TABLE OF CONTENTS Section Title of Section Page Introduction 4 1 Introduction to Human Resource Management 12 2 Human Resource Strategy and Business Strategy 42 3 Human Resource Planning 69 4 Recruitment, Selection and Induction 92 5 Employee Training and Development 124 6 Performance Management 159 7 Compensation 184 8 Employee Benefits and Services 210 9 Human Resource Management and Employee Relations 232 10 Career Management 253 11 Bibliography 273 MANCOSA – MBA Year 1 3 Human Resource Management INTRODUCTION MANCOSA – MBA Year 1 4 Human Resource Management AIMS OF THIS MODULE The broad aims of this module are to:  Introduce the learner to the field of human resource management.  Develop the learner’s understanding of the integration of human resource strategy and business strategy.  Develop the learner’s understanding of human resource planning.  Develop the learner’s understanding of the HRM practices of recruitment and selection.  Develop the learner’s understanding of employee training and development.  Develop the learner’s understanding of performance management.  Develop the learner’s understanding of the HRM practices of compensation and the provision of employee benefits and services.  Develop the learner’s understanding of employment relations within the Southern African context.  Develop the learner’s understanding of career management. MANCOSA – MBA Year 1 5 Human Resource Management Introduction This module, Human Resource Management, forms an integral part of the MANCOSA Masters of Business Administration (MBA) qualification and serves to introduce the learner to the fundamentals of the field of human resource management. The module explores the integration of human resource strategy and business strategy, as well as human resource planning, recruitment and selection, employee training and development, performance management, compensation, employee benefits and services, employment relations and career management. Contents and Structure Section 1: Introduction to Human Resource Management This first section introduces the learner to the field of human resource management (HRM). In this section a definition of HRM is formulated, the aims of HRM are explored and the place of HRM within the enterprise is examined. HRM functions and the role of the HR manager are also given attention. This section also explores the nature of strategic human resource management, human resource career opportunities as well as current HRM issues and challenges. Section 2: Human Resource Strategy and Business Strategy Section 2 explores the integration of human resource strategy and business strategy. Here the importance of the relationship between HR strategy and business strategy is examined. The manner in which HR strategy may be integrated into the process of business strategy formulation, implementation and evaluation is explored. This section also studies the competencies required by the HR manager to successfully participate in and contribute to the strategic management process. Section 3: Human Resource Planning This third section examines human resource planning. The nature of HR planning, the process of HR planning and current issues impacting on HR planning are explored. MANCOSA – MBA Year 1 6 Human Resource Management Section 4: Recruitment, Selection and Induction Section 4 explores the HR practices of recruitment, selection and induction. In this section the nature of recruitment, recruitment policies, factors influencing recruitment and recruitment sources are studied. The factors affecting selection decisions and the selection process are also explored. The objectives and benefits of an induction programme are studied. The planning, design, implementation and evaluation of an induction programme are also explored. Section 5: Employee Training and Development This section examines employee training and development. A distinction is made between the concepts training and development. The training process is examined, and the impact of the South African context on training within South African organisations is explored. The various approaches to development are also examined. Section 6: Performance Management Section 6 focuses on performance management. Performance management is defined, the performance management process is explored and the various approaches to performance management are investigated. Section 7: Compensation This section focuses on the HRM practice of compensation. The nature of compensation and factors influencing the determination of compensation are investigated. This section also explores compensation levels, the development of a compensation structure and challenges to compensation systems. Incentive compensation systems are also investigated. Section 8: Employee Benefits and Services Section 8 focuses on employee benefits and services. The nature of employee benefits and services is explored and the reasons for growth in employee benefits and services are investigated. This section also examines the different types of benefits and services. The administration of benefits and services is also studied. MANCOSA – MBA Year 1 7 Human Resource Management Section 9: Human Resource Management and Employment Relations Section 9 focuses on employment relations. The nature of employment relations is studied and it is established that it is a “living” field of study that revolves around and is played out daily in workplaces around the world. Section 10: Career Management This section explores the area of career management. The nature of the career in the twenty- first century is explored and the importance of career management is established. The various career stages, career planning and career development are also explored. How to Use This Module This module should be studied using this Study Guide and the prescribed textbooks. You should read about the topic that you intend to study in the appropriate section of this Study Guide before you start reading in detail in the prescribed textbooks. Ensure that you make your own notes/summaries as you work through both the textbooks and this Study Guide. At the commencement of each section of this Study Guide you will find a list of learning outcomes. These learning outcomes outline the main points that you should understand when you have completed the section with its supporting chapters in the prescribed textbook. Avoid reading all the material at once. Each study session should be no longer than two hours without a break. As you work through the Study Guide you will come across:  Think Points  Activities  Reading Activities  Self Check Activities  Study Group Discussion Activities  Sample Examination Questions These are designed to help you study and prepare for the examination. MANCOSA – MBA Year 1 8 Human Resource Management ? THINK POINT A think point asks you to stop and think about an issue. Sometimes you are asked to apply a concept to your own experience or to think of an example.  ACTIVITY You may come across activities which ask you to carry out specific tasks. The aim of these activities is to give you an opportunity to apply what you have learnt and / or explore an issue relevant to the particular section.  READING ACTIVITY Most sections of this Study Guide contain at least one reading activity. The reading activity requires that you read one or more of the recommended journal articles and then answer questions relevant to that journal article. The majority of the recommended journal articles are available from the Emerald library facility which l e a r n e r s may access via Mancosa’s website.  SELF CHECK ACTIVITY You will come across self-assessment questions which will test your understanding of what you have learnt so far. Answers to these questions are given at the end of each section. You should refer to the Study Guide and prescribed textbooks when attempting to answer the self check activities. MANCOSA – MBA Year 1 9 Human Resource Management STUDY GROUP DISCUSSION ACTIVITY Study group discussion activities are provided at the end of each section of this Study Guide. You must have worked through the relevant section and supporting chapters in the prescribed textbooks prior to meeting as a study group. The study group discussion activities provide an opportunity for learners to apply what they have learnt, to share experiences with fellow learners and to learn from each other.  SAMPLE EXAMINATION QUESTIONS Sample examination questions are provided at the end of each section. These provide the learner with an understanding of the type of questions which may be asked in the examination. Reading  Prescribed Textbook o Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2015) Human Resource Management: Gaining a Competitive Advantage 9th Ed. McGraw-Hill.  Recommended Textbook o Nel, P.S., Werner, A., Haasbroek, G.D., Poisat, P., Sono, T. & Schultz, H.B. (2014) Human Resource Management. 9th Edition. Cape Town: Oxford University Press Southern Africa.  Recommended Reading Each section has a list of recommended books and recommended journal articles, which allow you to develop an understanding of the issues beyond the perspective of the prescribed textbooks and Study Guide. The majority of recommended journal articles listed per section are available from the Emerald online library facility which is accessible via Mancosa’s website. MANCOSA – MBA Year 1 10