Employment Cycle

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Uncorrected sample pages • Cambridge University Press • © Somers, Cain, Jeffery 2011 • 978-1-107-63549-4 • Ph 03 8671 1400

Strategic business objectives Human resources planning Employment cycle Maintenance Termination

What’s ahead



ManageMent of the eMployMent cycle

demand and supply of labour, succession planning and the overall management of the three phases of the employment cycle: establishment, maintenance and termination.

Key Knowledge

Students will learn the following about management practices and processes associated with the key phases of the employment cycle:


– Establishment phase – human resource planning related to business strategy – job analysis and job design – types of recruitment methods and selection processes – employment arrangements and remuneration – Maintenance phase – induction – training and development – recognition and reward – performance management – Termination phase – termination management, including entitlement and transition issues.

The role of human resource management is to ensure that business strategy is followed when developing and implementing human resource process and practices. It involves long-term (strategic) decisions relating to forecasting

Uncorrected sample pages • Cambridge University Press • © Somers, Cain, Jeffery 2011 • 978-1-107-63549-4 • Ph 03 8671 1400 203


area of study

the human resource management function



Three phases of the employment cycle
1 Establishment phase – HR planning – Job analysis and job design – Recruitment – Selection – Employment arrangements – Remuneration 2 Maintenance phase – Induction – Training and development – Recognition and reward – Performance management 3 Termination phase – Termination management – Entitlements – Transition issues

figure 10.1 Three phases of the employment cycle

The employment cycle is the process of anticipating the current and future demand for workers in an organisation. This requires an

Establishment phase
The first phase is the establishment phase and it involves establishing the employment relationship between an organisation and an employee. For the prospective employee, the advertisement placed in the media is the commencement of the relationship. For the organisation, however, the phase commences prior to that. It is important that the organisation plans to ensure that the right person is ultimately selected. To make the wrong choice could be extremely costly.

Human resource planning
human resource planning planning for future personnel needs, taking into account both internal activities and factors in the external environment


Human resource planning is the process undertaken by managers to ensure an adequate supply of competent and motivated people are available to perform the duties and tasks required to meet the organisation’s objectives. The employee’s individual objectives should not be overlooked in the process.

Uncorrected sample pages • Cambridge University Press • © Somers, Cain, Jeffery 2011 • 978-1-107-63549-4 • Ph 03 8671 1400 204 unit 4 managing people and change


organisation to be prepared for changes in the labour market. Human resource planning is particularly relevant to both the establishment phase and the termination phase of the employment cycle. When undertaking planning, awareness of recent factors or trends is vitally important. These can arise from both the internal and external environment of an organisation. • Structural changes in the labour market – growth is occurring in the service sector (tertiary industries), whereas there is decline in the manufacturing industries (secondary industries). • Work patterns are changing – there is now a greater demand or emphasis by both employers and employees on part-time, casual, job-share employment arrangements, increased use of contractors, flexible working hours and a move away from the traditional...
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