Human Resource Management and Industrial Relations in Action

What is the purpose of HRM & IR ?

 Manage e/ee relationship and interests and conflicts. Align those interests
of e/er and e/ee. best able to harness capacity of work force. Bring
interests together and create synergy b/w key party e/ment
relationships. so benefits both and firms, you create human capital
advantages you management interest aligning them and developing/
training, performance managing. You enhance human capital.

How can we manage (and align) the interests of employers & employees?
 Heart of e/ment relationship, can be effectively managed. all functions
and policy practice from HRM will build on the fundamental relationships.
Create additional HR advantages.

What benefits would this alignment produce?

 Benefits both, For e/ee get weekly pay. for company: they will be
profitable, grow, expand.
 As customer, they get good service.

The employer/managerial perspective (Goals):

 Recruitment & retention of labour
They are able to create/maintain human capital, to get right staffs,
keeping staffs.
Eg: Qantas beat with China airline firms. Offer better income etcs to
recruit.
There is a balance between profit and retention. As bigger office, higher
spending.
 Organisational flexibility & agility
They need particular size of workforce to meet customer demand. If
workforce is too large, their salary cost is too high. Lose potential profit.
there is a balance b/w recruitment and retention. They need to attract
workforce to continue work.
 Performance
Managing performance, manage workforce so they deliver performance
clients required. Speed, quality and innovation, we need training and
developing, managing staffs to achieve those levels of performance. We
need coaching and mentoring. Research shown that mentor and coach
work most effective in better performance

The employee perspective (Goals):

 Rewards
› Intrinsic
- How they work meeting their interest, their value, and personality.
- Skill they gain, how they going to be gaining in turn of additional
skill for further
- Control, degree of control. It reduces stress.
- Other resource's could access, particular resources help them do
the jobs
 › Extrinsic
- Pay
- Non-finance benefits: status, self-esteem.

The AMO model of performance:

 P=f(A, M, O)
› Performance- depends on individual’s AMO
› Ability- the ability to perform
Whether we can do the job, because we provide the knowledge, skill
and attitudes and. IR. Eg: recruitment, measure their ability to do jobs.
Get indication can they do the job. Training and development. They get
what necessary to do the job. Performance management related to
what they can do the job, which allows them to do the job.
› Motivation- the motivation to perform
Whether e/ee will do the jobs. They may have the ability to do it but
they may not do it. It determines whether they do the job because they
want to do it or they feel they must do it. Recruitment use some
indication of it. When recruiting staff, you try to get idea of not only
their ability to do the job but measure their willing. Through
mentoring, coaching.
› Opportunity- the opportunity to perform
Em/ee need work structure to facilitate their performance. Work
structure environment need provide supports and avenues allowing
them to perform. If you have ability and motivation, because of the
poor work structure, your performance is limited. Work design, job
design may limit performance. eg: you may not have right access to
perform, not have necessary materials, supports of functions,
mentoring.. All these limited opportunity and bring down potential
performance. Job design, work design and training/development
ensure opportunity in respect of AMO.

Individual
factors

Individual: Individual
Ability performance
Motivation outcomes
Opportunity
Situational
factors

AMO influenced by individual factors, situational factors and individual

Performance outcomes. The situational factors have highest level of
influence.
eg: IR. HRM
 The AMO model of individual performance
› Individual factors
- Experience
- Intelligence
- Health
- Personality….
› Situational factors
- HR policies & practices
- IR policies & practices
- Variables in the production/work system & firm context

 HRM & IR in Action