HR Management in Australia
Human Resource Management ("HRM") in Australia is currently undergoing some revolutionary changes. Insightful CEO's are beginning to realise the value that effectual HRM can have in terms of the bottom line and subsequently Human Resource ("HR") managers are being brought into the management fold, so to speak. An example of one of these forward thinking CEO's is Rick Wagoner of General Motors Corporation ("GM"). GM is currently one of the world's largest and most complex corporations and in recent times there has been recognition within the organisation that global success and cohesiveness cannot be achieved without strategic support from HR. To this end, Wagoner has appointed the head of HR, Kathleen Barclay to the company's overall strategy board. Leonard (2002) asserts that such a move has significantly increased the profile of HRM within GM from merely an administrative or tactical role to a strategic one.The significance of this fundamental paradigm shift cannot be overstated. DiCieri and Kramar (2003) maintain that for HR managers, it means moving away from an administrative function to a strategic business partnership with executive management.Bates (2002) asserts that HR managers today are expected to know the
Thus, it is vitally important that HR managers are able to voice their concerns about which are the best selection practices to utilise. Thus, it is integral that the executive management and HR managers within a company take on a strategic partnership role with respect to the company's selection practices. Furthermore, HR managers may need to demonstrate to executive management the inherent economic and strategic value of certain HRM practices. The benefits of PES to both HR managers and executive management alike are numerous. The implications of a poor hiring decision are highlighted by the following decision in the Federal Court case of Smith v State Bank of NSW Limited (2001). Justice Peter Gray judge found that the Colonial State Bank allowed a fraud and bankrupt to sell financial services to the bank's clients, a Mr and Mrs Smith. The overall business strategy would be multi-dimensional and may include strategies, such as, an increase in the expenditure on research and development and so forth. The author's argument for more thorough PES rests on the notion that additional background enquiries into a candidate's criminal history may reveal unfavourable attributes about the candidate, such as a history of violence or theft. Philbrick, Bart and Hass (1999) also cite numerous examples including checks of the candidates' criminal and credit histories, driving records, DUI convictions, education and credential confirmations, reference checks, workers compensation claim checks, drug testing, competency based screening and personality and integrity evaluations. Justice Gray also heard that the bank did little to check the background of Douglas Gordon Johnston, who persuaded the couple to invest their life savings into one of his companies (Tabakoff, 2000). Though other HRM functions, such as training and development, are also important, otherwise sound HRM strategies can be rendered ineffective if the organisation consistently makes poor hiring choices. It is clear that these are topical issues relevant to the field of HRM. The aim of the personality testing would be to identify candidates with an innovative approach to their work. Moreover, HR managers are now encouraged to become involved in strategy development and to align HR strategy with the overall business strategy. This survey of firms estimated a 6% rise in fraudulent resumes over the past three years.
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