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Diploma
in
Business Administration
Study Manual
Human Resource Management
The Association of Business Executives
William House
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Tel: + 44(0)20 8879 1973
• Fax: + 44(0)20 8946 7153
E-mail: info@abeuk.com
• www.abeuk.com
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No part of this publication may be reproduced, stored in a retrieval system, or transmitted in
any form, or by any means, electronic, electrostatic, mechanical, photocopied or otherwise,
without the express permission in writing from The Association of Business Executives.
ab
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ABE Diploma in Business Administration
Study Manual
Human Resource Management
Contents
Study
Unit
Title Page
Syllabus i
1 Management and Leadership 1
What is Management? 2
Leadership in the Context of Management 11
Action-Centred Leadership 14
Leadership Styles 17
Contingency Theories of Leadership 20
2 Management Accountability and Responsibility 25
The Breadth of Accountability 26
Management and Social Responsibility 32
Equal Opportunities 36
The Ethics of Managers 44
3 Management and the Changing Organisation 51
Organisational Culture 53
The Learning Organisation 58
The Culture of Quality 60
The Culture of Enterprise 62
Business Process Re-Engineering 63
The Impact of Globalisation 66
Current Trends in Organisations 69
4 Management and Motivation 77
What is Motivation? 78
People at Work 78
Needs Theories of Motivation 85
Models of Behaviour and Motivation 89
Process Theories of Motivation 92
Excellence Theory and Motivation 95
5 Organising and Motivating 97
Delegation 99
Empowerment 105
Centralisation/Decentralisation 110
Gaining Commitment to Organisational Objectives 116
Jobs 120
Rewards 125
6 Management Control 133
The Basic Elements of the Control Process 135
Setting Standards 136
Measuring and Comparing Performance 138
Tackling Deviations from Standard 140
Control Systems 144
Human Behaviour and Control Systems 147
Performance Management 150
Disciplinary and Grievance Procedures 153
7 Managing and Enhancing Performance 159
Performance Appraisal Systems 161
The Appraisal Process 165
Management by Objectives 170
The Manager as Facilitator 176
Coaching 179
Counselling 181
Mentoring 183
Dealing with Problem Performers 184
8 Human Resource Planning 187
What is Human Resource Planning? 188
The Process of Human Resource Planning 189
Trends in Employment 195
Changing Patterns of Work 198
9 Recruitment and Selection 205
The Recruitment and Selection Process 206
Defining the Vacancy 207
Casting the Net 215
Selection Procedures 220
Employee Induction 229
10 Employee Development 233
Organisations, Individuals and Development 234
Identifying Training and Development Needs 239
The Learning Process 241
Training Methods 248
11 Communication 253
Communication in Organisations 254
The Communication Process 261
Methods of Communication 265
Effective Communication 269
Working in Committees 279
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© Copyright ABE
Diploma in Business Administration – Part 2
Human Resource Management
Syllabus
Introduction
It is a truism to claim that people are an organisational resource – indeed for some organisations, they
are the
key
resource, without which the organisation would be unable to deliver any meaningful
product or service to its customers. Like any resource, however, people may be used wastefully: they
may be employed at well below their potential, performing tasks which do not stretch their
capabilities and which are ultimately alienating in their psychological impact on the employees
involved. Alternatively, people may be managed and led in ways which inspire them to be highly
motivated and to demonstrate long-term commitment to both their roles and the organisation which
employs them. When this is achieved, the performance of its people becomes a major differentiator
for the organisation and a source of long-term competitive strength.
Human Resource Management is about the managerial and leadership processes which enable people
to give of their best in today’s turbulent working scenarios. To that end, the syllabus content is less
concerned with the academic study of human and organisational behaviour, but concentrates more on
the development of effective, pragmatic, yet innovative solutions to the issues surrounding the need to
maximise people’s productivity, efficiency and effectiveness.
Aims
Again this conceptual background, the aims for the module are as follows:
To develop the student’s knowledge and understanding of:
1. Individual differences, especially in such fields as learning, personality, motivation and
attitudes, with particular reference to the relevance of such differences for recruitment,
selection, deployment, development, and employee performance in an organisational setting.
2. The changing nature of the “psychological contact” between organisations and their employees,
together with the implications for employability, flexible working, commitment, and
managerial leadership.
3. Each major dimension of human resource management in practice, i. e. human resource
planning, recruitment, selection, induction, training/development, reward systems, and people
review/appraisal.
4. Techniques for effective communication in all work-related situations, i. e. with subordinates,
with seniors, through collective representational procedures, and with teams.
Programme Content and Learning Objectives
Note that all the following objectives are concerned principally with practical application rather
than academic theory. Students will be expected to familiarise themselves with all relevant
underpinning theories, but the emphasis in the tuition process and in the examination will and
should concentrate on specific techniques for resolving human resource issues and for improving
people performance across all types of organisation.
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After completing the programme, the student should be able to:
1. Differentiate the fundamental characteristics of people, with particular regard to such factors as
culture, gender, ethnicity, personality, attitudes, and motivation, and assess the implications of
such differences for the purposes of effective human resource management.
2. Clarify the mechanisms for individual and organisational learning, including ways of enhancing
the effectiveness of deliberate learning processes and of overcoming the barriers to productive
learning, again with a focus on the significance of learning from the viewpoint of enhancing
organisational effectiveness.
3. Recognise the significance of the emergent “psychological contract” in terms of new employer
expectations about “added value”, employability, and the factors which will continue to
influence the nature of employment in the vast majority of organisations.
4. Apply alternative systems of flexible working to meet fluctuating corporate needs.
5. Accept the obligations of ethicality in governing the actions of managers, employees, and
corporate entities.
6. Acknowledge the differences between “management” and “leadership” against a background in
which organisations are moving from a focus on compliance to a desire for commitment, and
recommend the installation of appropriate mechanisms for generating employee commitment in
all types of corporate setting.
7. Maximise individual and collective employee performance, in specific organisational,
functional, departmental or managerial scenarios, through effective motivation, job design,
reward/recognition processes, and “performance management”.
8. Handle difficult people-management situations through systematic grievance-handling
mechanisms, directive or non-directive counselling, coaching, and ultimately by means of
disciplinary action and dismissal.
9. Apply each of the procedures and skills associated with the major arenas for personnel
management, viz., human resource planning, recruitment, selection, induction,
training/development, reward/recognition, review/appraisal, employee relations, welfare, health
and safety responsibilities, discipline, and grievance-handling, in both remedial and continuous-
improvement circumstances. [Several of these themes are mentioned elsewhere in the syllabus,
but are repeated here in order to ensure completeness.]
10. Communicate effectively in all relevant organisational situations, i.e., meetings, presentations,
and negotiating.
Method of Assessment
By written examination. The pass mark is 40%. Time allowed 3 hours.
The question paper will contain:
Eight questions from which the candidate will be required to answer any four. All questions carry 25
marks.
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Recommended Reading
Lead text
! Torrington, D. and Hall, L. (1998), Human Resource Management; 4th edition, Prentice-Hall
Other recommended texts
! Armstrong, M. (1998), Managing People: A Practical Guide; Kogan Page
! White, A. (1998), The Essential Guide to Developing Your Staff; Piatkus
! Herriot, P., Hirsch, W. and Riley, P. (1998), Trust and Transition: Managing Today’s
Employment Relationship; Wiley
! Goss, D. (1994), Principles of Human Resource Management; Routledge
! Cushway, B. (1994), Human Resource Management; Kogan Page
Students should also read suitable quality newspapers and periodicals for articles about human
resource management (covering new techniques or applications in named companies), and if possible
should download up-to-date thinking via suitable search engines on the Internet.
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[...]... subordinates - motivating, communicating, coaching, etc Liaison Contacts with others outside work unit, for assistance, information, etc Informational Monitor Ensuring acquisition of information necessary for work Disseminator Distributing information throughout organisation and outside Spokesperson Formal provision of information on behalf of organisation Decisional Entrepreneur Initiating, developing... down the main functions into their component parts, and Mullins provides an interesting framework for reviewing this, drawing the activities together and stressing their interdependence We can summarise the activities as follows and it is easy to see how these link with the processes of planning, organising, directing and controlling (a) Determining objectives All managerial work involves identification... situation is interpreted The interrelationship between the three areas of need - achieving the task, building the team and developing individuals - can be shown as three circles Each circle intersects with the other two, and failure in one will affect the others Achieving the task Building the team Developing the individual Figure 1.3 Ideally the three circles should overlap, so that the needs of achieving... organisational goals It involves a number of related processes: ! forecasting - analysing known information (within and external to the organisation) in order to predict future conditions; ! goal setting - the determination, in the light of forecasts and other imperatives (including policy), of what the organisation wishes to achieve in the relevant time span; ! decision making - making choices between... its roots in the 1950s and 1960s in the work of Professor John Adair, who later went on to become the first Professor of Leadership appointed in the United Kingdom Predominantly interested in military history, Adair used his research to formulate a theory which would also have valuable spin-offs as a training vehicle Adair’s ideas were adopted first by the Sandhurst Military Academy for training officer... definition, which has been accepted by most practising managers, is given by R Falk in his book “The Business of Management” He defined management simply as: “Getting things done through people” Here he is stressing the importance of people-management at the same time as stressing the difference between “doing” and “managing” The technical content of a job is not managerial For example, when the maintenance... solved to achieve the objectives Having decided what it is one is seeking to achieve, the next step is to consider what problems must be overcome in doing it It is easy to see the problems inherent in, say, resolving a problem of heavy traffic through a small rural village - difficulties of road widening, acquiring the land for a new road, dealing with dissenters, coping with the disruption of construction,... Allocating resources is about ensuring that the right people are in the right positions at the right time and with the right materials and equipment in order to achieve the desired ends This must also involve ensuring the appropriate funding is available and that sufficient time has been allocated to enable the work to be done Finally, directing is the business of appropriately leading, motivating and... for a system of reviewing progress and controlling the implementation process There is a certain logic in considering these activities as a list since they tend to follow one after another in the sequencing of a rational process However, management is an on-going process, and at any one time will involve activities across the range, often in the same project It is impossible, in reality, to compartmentalise... out of organising, being about ensuring that employees are appropriately engaged in working on activities to meet goals and plans This involves motivating and supervising staff towards the concerted efforts needed for effective performance © Licensed to ABE 6 Management and Leadership The two elements are grouped together here because they combine in their effect on people Organising involves both . see how these link with the processes of
planning, organising, directing and controlling
(a) Determining objectives
All managerial work involves identification. mechanisms for individual and organisational learning, including ways of enhancing
the effectiveness of deliberate learning processes and of overcoming the barriers
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