The Employment Cycle - VCE Business Management

SAC 1b (Monday 13 August)
Learning objectives
To identify and explain the key phases of the
employment cycle
To explain the significance of the employment cycle
for human resource management
The importance of the employment
One of the key responsibilities of HRM is managing the
employment cycle
The employment cycle is the stages a worker
progresses through - from the start to the end of their
employment with an organisation
It is a ‘cycle’ because the pattern repeats itself as new
workers are recruited, trained, etc, to replace the
workers who are leaving
Broadly, we can categorise the actions and steps that
HRM need to take as establishment, maintenance and
Phase one: Establishment
HR planning
Job analysis and job design
Employment arrangements and pay
Human Resource Planning
HR planning is the most important part of the
employment cycle
It involves predicting the future staffing needs of the
organisation – therefore, HR managers need to know
and relate this to the strategic plans of the organisation
HR managers need to consider: will more or less staff
be needed? Which areas of the organisation will grow?
Are specific skills or expertise needed?
If poorly planned, an organisation may have too many
or not enough employees in key areas creating
problems for productivity and cost
Job analysis, design and description
Job analysis is finding out all the information about a job
If it is an existing position, then a study is conducted to
examine in detail what is done in that position on a daily
Job design is the process of creating new positions or
adapting existing positions.
When designing a new job, mangers need to ensure it
attracts the right candidates and meets the organisation’s
needs (as determined through HR planning)
Job description is an outline of all aspects of a particular
position, including the duties & responsibilities and work
conditions) and combines all the information gathered in the
job analysis
Selection Criteria
A list of what the organisation is looking for in the
applicants for a new position
Often includes requirements for
qualifications/experience, skills, and personal
It is expected that applicants should address the
selection criteria in their job application
Recruitment is sourcing employees for a position
It can be internal (from inside the organisation) or
external (outside the organisation)
Recruitment methods include newspapers, internet
sites, business websites, recruitment agencies, word
of mouth
Selection is choosing the best candidate for the
available position
The selection process may include, screening out the
unsuitable applicants; writing a short list of
potential candidates; contacting them for
interviews; holding sometimes several rounds of
interviews (individual or group); testing; checking
referees; notifying the successful candidate and the
unsuccessful ones
Employment arrangements &
remuneration (pay & entitlements)
The process of deciding pay and other entitlements
associated with a position may be determined before the
job is advertised or negotiated with the successful candidate
Factors affecting the type of remuneration include whether
the person is covered by an agreement, whether it is a
management position, previous remuneration of the person,
and their priorities.
Packages include pay rates, super, use of facilities such as
cars, phones, laptops
The type of employment arrangement is linked to the
remuneration (full or part-time cf casual staff & contractors)

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