HRM in the Public And Private Sectors - Coursework Example

Meeting Human Resources Management In the Public versus the Private Sector Parties present: Manager, Human Resources Division Line manager Transcript: Human Resources Manager: Good morning Mr. Billy and welcome to the department, you requested this meeting to discuss some of the key differences between HR management in the private and public sectors? Line Manager: Good morning Sir. Yes, as you know I am new to the department and have a background in private sector management. I just thought it would be a good idea to speak with you about some of the key differences between Human Resources Management in the Public Sector, and ask what you thought were the most important things that I need to know as a line manager working in the public-as opposed to the private sector. Human Resources Manager: Mr, Billy, although public sector firms face numerous challenges that include the ever more uncertain economic and political environments, cost-conscious government, ageing workforce and swiftly evolving community requires, we view human resource management as all the systems, procedures and practices implemented to obtain, manage and develop human resources to attain the objectives of our firms. I do not know human resource management is viewed or defined in the private sector. Line Manager: The definition of human resource management in public sector exhibits basic commonalities with HRM definition in the private sector. In real sense, the description of human resource management does not differ across sectors. I believe that what differs is the implementation of the practices, procedures and systems linked to human resource management. In the private sector, we conceptualise human resource management as the response by management to the interplay of external and internal forces. Human factor at the workplace is directly controlled by managers with human resource management in the private sector being a key determinant of a firm’s productivity and profitability. As a result, human resource management in the private sector varies from the public sector because organisations in the private sector are directly driven by profit making. Apparently, human resource management in the private sector differs in terms of rewards and incentives, workforce diversity, performance management, trade unions and employment relations, recruitment and selection and workplace health and safety practices. Human Resources Manager: With respect to rewards and incentives, what differences are there bearing in mind that private organisations are more driven by profit making. In the public sector, we focus more on intrinsic rewards such as promotions, recognition and self-development. As a matter of fact, public employees prefer job security, important roles and tasks and some degree of power and recognition over monetary rewards. Employees in the public sector receive low remuneration that those in equivalent roles in the private sector. Our employees are attracted to a life in this sector given the higher altruistic motivations in the public sector. Contrary to public sector employees, Verma (2006, p.71) asserts that private sector employees are motivated more by extrinsic factors such as money. Is this always the case in the private sector? Line Manager: I will not refute the assertion that private sector human resource managers focus more on extrinsic rewards as a way of motivating employees. I will also acknowledge the fact that pubic sector employees are usually motivated intrinsically. All I can say is that private sector managers and employees differ from their public sector counterparts in terms of work-related values, needs, preferences and rewards. For instance, human resources managers in the public sector must focus on both public policy objectives and profitability. Contrary to the public sector, private sector HRM focuses more on economic incentives. Economic incentives shape the rewards systems in the private sector. The material rewards are used to encourage effective performance. Human resource managers in the private sector predominately seek to improve employees’ performance through incentives and rewards that encourage people in ways that promote superior performance. Apparently, private sector organisations are largely focused on profit making. In this regard, individual employees’ contribution to profit and other related indices are rewarded monetarily. Human Resource Manager: Thank you Mr.Billy for that confirmation. As you may have noted for the short period you have been here, the public sector is poised to create a productive workforce that truly represent not simply regional but national and global population that include women and the disabled in the society. A second factor for public sector employees is that these employees tend to be older compared to those in the private sector. Evidently, the public sector employees are to a larger degree employed for a longer period compared to their counterparts in the private sector ( Arnould, , Pilichowski, &Turkisch 2007, p.78) . As a result, diversity management is essential in the public sector. According to Syed and Ozbilgin (2015, p.15), the public sector fares well than the private sector in terms of managing diversity in the workforce. For instance, the Equal Employment Act requires the public sector to set equality and diversity objectives and assess their progress across these objectives. In the public sector, managing diversity besides being a legal duty, is a performance issue because a positive relationship exists between performance and workforce diversity. Does this apply to the private sector? Line Manager: Thank you for enlightening me on the importance of diversity management in the workplace, and yes, diversity management in the private sector closely relates to performance. It is evidently true that the public sector has an aging workforce compared to the private sector whose workforce comprises of a mixture of the old and the young. The differences in age, race, nationality and sex calls for development of strategies, programs and policies that accommodate diversity in the workplace. As a result, diversity activities are resourced in the public sector compared to the private sector. In the private sector as it is in the public sector, the human resource managers must be able to harness the diverse human resources in order to create a motivated and productive workforce (Soldan & Nankervis 2014, p.544). In the private sector, diversity is a goal that is integrated in the overall strategic objectives of a firm. I have noted that there is no much differences in the diversity management in both the private and public sector. This is because both the public and private workplaces are changing to include women, people from all races and nationalities as well as the disabled. Human Resource Manager: Having realised that managing workforce diversity is a performance issue, let us underscore the differences in performance management in the public and private sector. In the public sector, performance management is inconsistent and unfair (Lindorff 2009, p.43) . Although human resource managers use performance appraisal to assess employees’ performance in public organisations, the reward is not fair. According to Pillay and Bilney (2014, p.4), performance management in Australian public sector rewards people who never make it over the line. These people are rated satisfactory despite their incompetence while the high performers do not receive positive feedback. Line Manager: Just like in public sector, the private sector uses performance appraisal to manage performance. The performance appraisals in the private sector are established as a correct way of measuring individual performance. The appraisal is useful to both the employee and the firm. To ensure consistency and fairness, human resource managers ensure timely feedback. An employee requires receiving constructive criticism for making personal improvements and accolades for a job performed well. The feedback process is essential as it allows employees to gauge their performance ( Evanoski 2012, p.102). Human resource managers in the private sector base employees’ raises or promotions from performance appraisal. Human Resource Manager: Mr Billy, let us now focus on trade unions and employment relations. It is important that you note that trade unions are a key feature in the public sector. Evidently, the levels of unionisation are higher in the public sector. It is with no doubt that trade unions play a great role in the public sector particularly in the pay determination. With respect to employment relations, employment relations are regulated and controlled by the government (Lucio 2007,p.6) . As a result, trade unions and the government controlled and regulated employment relations are a major challenge to human resource management in the public sector. Trade unions organise and represent employees whose employment conditions and aspirations have been influenced by the government as a legislator, economic regulator and employer. Line Manager: Thank you Sir, I appreciate your information about trade unions and employees relations in the public sector and their implications on human resource management. I must admit that there are trade unions in the private sector but their levels are not as high as they are in the public sector. However, trade unions are more strong and effective in the private sector. This is because the public sector employment relations depend on all-important dimension of political power, which is not the case in private sector. As a result, the private sector employment relations are effective. As a result, human resource manager develop effective strategies to avoid serious confrontations with the strong, but declining unions. Human Resource Manager: Thank for that clarification. Let us now focus on health and safety practices. The Occupational Health and Safety Act govern the public sector (Archer et al.2015, p.3) . Human resource managers in the public sector are required to implement the law and ensure the safety, welfare and health of their employees. I want to believe that this law is applicable in the private sector. Line Manager: Yes, the Occupational Health and Safety Act apply not only to public sector, but also to the private sector. Human resource managers in the private sector acknowledge the workplace safety regulations, laws, and works towards implementing these laws. Human Resource Manager: As we conclude, let us focus on recruitment and selections. The public sector uses formal recruitment and selections procedures. The Public Service Act governs employment in this sector while the Australian Public Service Commission ensures that recruitment and selection is carried out in a fair manner. The Public Service Act requires human resource managers to develop and establish fair recruitment and selection procedures (Costen 201, p.382). As a result, human resource managers in this sector are required to implement the legal guidelines and police in their recruitment procedures. Line Manager: Thank you so much for information relating the human resource practices in the public sector. Now I am fully aware of what is required of me in this field and sector. Am sure you have also learnt something from human resources practices in the private sector and you can borrow some ideas. In a nutshell, I have realised and learned that human resource approaches in the public sector are underpinned by set of values concerned with equality, fairness and justice. With respect to recruitment and selection in the private sector, private employers do not strictly follow the laid down rules by the government but larger private institutions are obliged to enact the Fair Work Act 2009. References Archer, Richard, Borthwick, Kerry, Travers, Michelle &Ruschena, Leo 2015, 'Introducing health and safety', in Archer, Richard John, Borthwick, Kerry, Travers, Michelle &Ruschena, Leo, WHS: a management guide, 4th edn, pp. 1-24. Arnould, Emmanuelle, Pilichowski, Elsa &Turkisch, Edouard 2007, 'Ageing and the public service in Australia', in Arnould, Emmanuelle, Pilichowski, Elsa &Turkisch, Edouard, Ageing and the public service: human resource challenges, Organisation for Economic Co-operation and Development, Paris, pp 77-97. Costen, Wanda M 2012, 'Recruitment and selection', in Prescott, Robert K & Rothwell, William J (eds), The encyclopedia of human resource management. Vol 1: Key topics and issues, John Wiley & Sons, Hoboken, pp. 379-387 Evanoski, Danielle 2012, 'Performance appraisals: understanding, utilizing and unlocking their potential', in Lindholm, Jed, Rothwell, William J, Yarrish, Karen K &Zaballero, Aileen G, The encyclopedia of human resource management. Vol 2. HR forms and job aids, John Wiley & Sons, Hoboken, pp. 101-104. Lindorff M 2009, 'We're not all happy yet: attitudes to work, leadership and high performance work practices among managers in the public sector', Australian Journal of Public Administration, vol. 68, no. 4, pp. 429-445. Lucio, Miguel Martinez 2007, 'Trade unions and employment relations in the context of public sector change: the public sector, “old welfare states” and the politics of managerialism', The International Journal of Public Sector Management, vol. 20, no. 1, pp. 5-15. Pillay, S & Bilney, C 2015, Public sector organizations and cultural change, UK, Springer. Soldan, Zhanna& Nankervis, Alan 2014, 'Employee perceptions of the effectiveness of diversity management in the Australian Public Service: rhetoric and reality', Public Personnel Management, vol. 43, no. 4, pp. 543-564. Syed, J & Ozbilgin, M 2015, Managing diversity and inclusion: An international perspective, UK, SAGE. Verma, A.L 2006, Public administration, UK, Lotus Press. Read More