Aims of Human Resources Planning and Job Design in Rio Tinto - Case Study Example

Running Head: HR PLANNING AND JOB DESIGN HR Planning and Job Design [The Writer’s Name] [The Name of the Institution] HR Planning and Job Design Executive Summary This paper throws light upon Human resource planning and the role of job design in current corporate setting. The primary HRM functions generally include planning for HR needs which consist of planning and forecasting the organization's short and long-term HR requirements and analysing the jobs in the organization to determine their duties and purposes and the skills, knowledge and abilities that are needed; staffing the organization's personnel needs which include identifying job applicants and selecting from among those most appropriate for the available jobs; performance management and remuneration which includes appraising and evaluating employee performance and analysing and motivating employee behaviour; and other functions like improving employees and the work environment and establishing and maintaining effective working relationships. Analyzing various factors, it transpires that organisations are being forced to consider issues of flexible job design, family friendly workplace culture and a general acceptance of a change in the employment contract. The Australian Industrial Relations Commission has made clear its intention to support individuals working flexibly where the demands of the job can be met through workforce re-design. Concluding all facts and figures, it may be considered that individual solutions to flexible working are increasingly favoured but are difficult for an individual to negotiate with organisations putting pressure on to work longer and harder. Introduction Schultz and Schultz state that the purpose of job analysis is to describe in specific terms the nature of the component tasks performed by workers on a particular job. A job analysis includes information about the tools or equipment used, the operations performed, the education and training required, the wages paid, and any unique aspects of the job such as safety hazards. (Schultz and Schultz, 2006, 76-80) The purpose of the job analysis is to collect information for job description, job specification, job design, human resources planning, recruitment, selection and so on (Stone, 2005, 140-43). Background According to the Business Council of Australia (2005), by the year 2020 the number of people retiring will exceed those entering the labour force. The Australian Human Resource Institute in 2004 further supports the Business Council through a report by Access Economics (2001), that only 125,000 people will enter the labour market for the decade 2020-2030 compared to 170,000 entering the single year of 2001. (ABS, 2003; and cited in Mithen, 2004, 10-11)Two primary reasons for the cause of this projected decrease in new labour market entrants have been identified. Firstly, as female participation has increased, fertility rates have decreased to below replacement level in Australia. Secondly, the early retirement culture enjoyed in Australia is one of the youngest in the world with a large proportion of the ‘baby boomer’ generation expecting to retire between 55 and 60 years of age. (Dann & Oldmeadow, 2005, 121-27; Friedman Christensen & Degroot, 2000, 1-30; Galinsky, 2004, 55-58) Aims of HR Planning and Job Design One reason that flexible work options meet resistance is the assumption that presence equals productivity. This assumption does not hold in an economic environment that is driven by results, not time worked. Furthermore, the perception that if an employer gives the employee an inch they will take a mile has been reported by the Families and Work Institute (FWI) to be incorrect and that the employee is likely to be more committed for the employer. (Bray et al, 2005; Galinsky, 2004, 55-58) Recent research has begun to address the need for cultural changes, by exploring the processes for achieving fundamental workplace change to meet the needs of both employees and organisations. (Rapoport, Bailyn, Fletcher & Pruitt, 2002, 99-102) Scope of HR Planning and Job Design There have been traced certain mutual benefit for employees and employers finding a flexible way to work. This benefit is seen in employees being more engaged in their jobs and committed to helping their organisations succeed, they are more likely to plan on staying with their employer and are more satisfied with their job. (Walton, 1990, 144-50) The reason flexibility is vital to organisations is the need for attracting qualified people. Given the current labour market shortages and ageing workforce, organisations who have not already, will need to rethink their recruitment efforts, productivity incentives, benefit plans, work schedules and work process. Most of these procedures were designed for a different generation of employees with different lifestyles, motivation and working conditions. (DeCieri et al, 2005, 90-103; Strachan & Burgess, 1998, 250-65)Requirements imposed under Australian federal and state discrimination laws are also a compelling reason for organisations to ensure flexible work options are considered and offered. The federal Sex Discrimination Act 1984 makes it unlawful to dismiss an employee on the grounds of their family responsibilities including indirect discrimination on the ground of sex and pregnancy. (DeCieri, Holmes, Abbot & Pettit, 2005, 90-103) Flexibility provides organisations another option to retain employees. Royal Bank financial group found that flexible work arrangements not only supported work-life balance for employees, but resulted in improved business performance, enhanced customer service, reduced expenses and positioned the organisation as an employer of choice. (Friedman, Christensen & Degroot, 2000, 1-30; Schwartz, 2000, 103-106) Rio Tinto Case Rio Tintos branch in Australia has had though moments implementing their new job evaluation performance. The Australian commission of industrial relations has ordered I.O.C to reinstate 178 employees fired due to mischief. Officials referred to it as unjust. Legal claims settled by a 25 million dollar law suit as compensation to the 178 employees mistreated. Meanwhile, this same job evaluation performance was trying to be implemented in Sept- Isles and Labrador City. Managers at I.O.C. were once particularly appealed to this evaluation job performance due to its focus on teamwork, safety, and high commitment. In addition, the employees who lack certain attributes will now be able to be trained by a whole new training system. Throughout the twelve week plus affair between the management and union officials, one can only wonder what could have been done to speed up this process. The main issue in discussion may have been the job evaluation performance system which was used for such things as promotions, raises, openings, terminations etc. but it appears that there were many issues behind the scene that may have been of greater importance than given. A lack of respect from Rio Tinto was shown towards the union. Since both sides of the argument were working towards somewhat similar outcomes many things could have been done differently in order to speed up this twelve week strike. Throughout the strike Rio Tinto was offering concessions to the union but the union was more than a little reluctant in accepting their offer. It appears the lack of respect was a major issue behind the scene since negotiators weren't even given a chance to get involved at negotiation tables as Rio Tinto would not remove the concessions. In a situation like this, with the employer side using concession bargaining, it's not uncommon for the union side to not have a feeling of any accomplishment which in turn can make them feel that they are not being respected. It was obvious from the side of the employees that they wanted to settle early and get back to work Rio Tinto's way of dealing with the union was poor. Recommendations Commitment to the organisation is the shared cultural norm for part timers and flexible workers not being considered promotable. (Anderson-Gough et al, 2000, 1151-74)Further research identifies several strategies contributing to effective flexible policies. An approach that targets and assuages the worries about salary and career progression for those working flexibly needs to be more that just rhetoric with participants needing to be convinced their careers and salaries need not suffer unduly if they choose to work flexibly. This can be aided by senior staff, and especially senior men acting as role models. Rapoport’s (2002, 99-102) agenda which explicitly links flexible working and gender equity to organisations performance which will convince senior managers and line managers of flexible working arrangements are likely to produce positive outcomes for the organisation. A properly functioning HRM system is an invisible asset that creates value and involves the acquisition, development, reward and motivation, maintenance and departure of an organization's human resources. This includes activities like job analysis, HR planning, employee recruitment, employee selection, performance appraisal and HR development, among others. (Stone, 2005, 140-43) Conclusion The role of the HRM department is to support and not to supplant top personnel's HR responsibilities. One way in which the HRM department could support the top personnel's HR duties is by training them in certain HR skills, so that they will be able to analyze the people side of productivity rather than depend solely on technical solutions to problems. They could also actively involve them in formulating, implementing and reviewing all HR plans and strategies so as to increase their commitment to the effective implementation of these plans. Therefore, it is important that top personnel like supervisors, department heads and vice presidents, be knowledgeable regarding such HR matters, as such a background is an asset. The HR managers now becomes part of the business team when they become strategic partners with top personnel and assist the organization in determining a strategic direction for its own activities. They do so by ascertaining specific organizational needs for the use of its competence, evaluate the use and satisfaction among other departments and educate management and employees about the availability and use of HRM services. Since HR managers have become more business oriented and strategically focused, they have to be sensitive to changes in markets, people and competition and be aware of the need for an adaptive and flexible organization. Hence, they now practice four key roles, namely the strategic partner, administrative expert, employee champion and change agent. This means that HR managers now become an essential part of the management team, running an organization and contributing to the achievement of the organization's objectives by translating business strategy into action. It also means that HR managers have to be more efficient and effective in managing HR activities like selection and appraisals. Lastly, HR managers are also required to be the employee's voice in management decisions and to act as a catalyst for change. References Anderson-Gough, F., Grey, C. & Robson, K. (2000), In the name of the client: the service ethic in two professional service firms, Human Relations 53, 1151-1174 Bray, Deery, Walsh & Waring (2005), Industrial Relations, a Contemporary Approach, McGraw-Hill, Australia Dann, G. & Oldmeadow, A. (2005), Flexible work practices and part-time return to work obligations Australian Publications Co. 121-27 DeCieri, H., Holmes, B., Abbot, J. & Pettit, T. (2005), Achievements and challenges for work/life balance strategies in Australian organisations. International Journal of Human Resource Management, 16(1), 90-103 Fletcher, J. & Rapoport, R. (1996), Work-family Issues as a Catalyst for Organisational Change, in S. Lewis and J. Lewis (eds) The Work-Family challenge pp 142-158 London Friedman, S.D., Christensen, P. & Degroot, J. (2000), Work and Life: The end of the zero-sum game, in Harvard Business Review on Work and Life Balance, p1-30 Galinsky, E., Brownfield, E., Backon, L. & Friedman, D. (2004), Workplace Flexibility: A Guide for Employees. Sydney. 55-58 Mithen, J (2004), World Federation Report, Australian Human Resources Institute, Kanberra. 10-11 Rapoport, R., Bailyn, L., Fletcher, J. & Pruitt, B. (2002), Beyond Work-family Balance: Advancing Gender Equity & Work Performance. Jossey-Bass, 99-102 Schultz, D. P. and Schultz, S. E. (2006). “Psychology And Work Today.” 9th. ed. New Jersey: Prentice-Hall. 76 – 80. Schwartz, F.N. (2000), Management women and the New Facts of Life, in Harvard Business Review on Work and Life Balance, 103-106. Harvard Business School Press, Boston Stone, R. J. (2005). “Human Resource Management.” 5th. ed. Australia: Wiley. 140 – 43. Strachan, G., & Burgess, J. 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