An Introduction to Human Resources: HR Role in Manufacturing Sector

This assignment is a leaflet designed to introduce potential employees to the role of Human Resources (HR) within the manufacturing sector, specifically using Rio Tinto as a case study. The leaflet begins with a company introduction, followed by an overview of HRM, including its evolution and imp...Read More

Running Head: LEAFLET ON ROLE OF HR
LEAFLET ON ROLE OF HR
Name of the Student
Name of the University
Author Note

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LEAFLET ON ROLE OF HR
Table of Contents
1. Company Introduction....................................................................................................2
2. Recruitment and selection...............................................................................................3
3. Performance Management..............................................................................................6
References..................................................................................................................................8

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1. Company Introduction
Rio Tinto is a metal manufacturing companies that is considered as one of the largest
metals & mining corporations. The company is traded in Australian Stock Exchange, New
York Stock Exchange, London Stock Exchange and Financial Times Stock Exchange
(Annualreports.com. 2020). The company has total of 47,000 number of employees working
in the plant. Simon Thompson is the chair person and Jean-Sebastien Jacques is the Chief
Executive Officer of the company.
Introduction to HRM
Human Resource are the most important resources of an organisation. Human
resource management is the department that manage the company’s employees and help them
reaching the organisational goals. Human resource developments is very much essential to
improve the quality and reduce the cost of organisational performance. Human resource
management is a strategic approach used by companies to optimise the employee’s
performance and help them to perform their task (Wilton, N., 2016). Vera Kirikova is the
Human Resource manager of the Rio Tinto group.
Role and Importance of HRM
The Role of HRM in Rio Tinto is to recruit the best skills of employees, execution of
remuneration policy, incentives plan, pension or superannuation plans, other compensation
schemes and building strategies for improving the group performance.
Importance of HRM:
 HRM is responsible to develop a technical framework in order to develop the people
and align the people according to business strategy.

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 Responsible for solving the issues related to employee payments, benefits, safety and
remunerations. HRM is also responsible for wellbeing of the people from any type of
mental health problems and domestic violence issues.
 HRM is responsible to create a job-training to the people and support them in building
themselves in mining careers and support their employees & their families.
 HRM is responsible for motivating the employees and help their developments.
 HRM is responsible to manage the work culture and work environment of the
employees and managers.
Evolution of HRM
During the ancient time, the overall production of goods were done by skilled
craftsmen and artisans. There were no employer-employee relationship. They themselves
managed the work with their family members. Then later on, they hired labourers to take care
of their problems. In Australian workplace, human resource management has developed after
Eton Mayo ideas of spreading new management ideas & practices. Rio Tinto group has
changed the practice of employment (Lin et al. 2018). The company has started recruiting
people with disabilities and train them to help them in their regular duties. Work organisation
has been changed. There is a gender diversity of people working in the organisation. HRM
has now focused on human rights and employees engagement.
2. Recruitment and selection
Recruitment- This process is searching the potential candidates for job role and inspiring
them to apply for their job (Sarma 2017. Recruitment process includes analysing the job
application, searching the candidates by analysing their resumes.

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Selection- This is a part of recruitment process in Human Resource Management. This
includes job specifications, preliminary interview, employment tests, medical examination,
shortlisting of the candidates and final hiring of the candidate for the job role.
Pros and Cons of internal Recruitment
Pros:
 Internal recruitment is faster process. It requires very less time to advertise the jobs,
interviewing the candidates as compared to external environment.
 Internal recruitment is a cheaper process. Company can save money because it
doesnot require to pay the agencies. Hiring process is also cheap as compared to
external recruitment.
 Recruitment process is less risky.
 It will boost the employee engagement process by allowing them an opportunity to
grow.
Consequences:
 It can cause internal conflict among the employees. Other employees who are interest
may not get value of their skills.
 Cannot hire new skills of people.
Pros and Cons of external recruitment
Pros:
 It brings opportunity to hire fresh skills and experience and bring new approach to the
company.
 The perspective of work may change and can give a positive new direction.

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 External recruitment process can promote a healthy competition in the workplace and
boost the productivity.
Consequences:
 External recruiting may sometimes be risky for the company by staffing wrong
candidate in the job role.
 Initially the employees may not understand the work environment of the company and
initially the performance may go down.
 External recruitment is expensive because it requires more advertisements and time
taking during the selection process.
 The new hires may not adapt in the new working environment and may not easily
communicate with their team members. There is a chance of cultural conflict and the
new hires may leave the job. Recruiters are continuously searching for new hires.
Pros and cons of method of selection
Pros:
 Method of selection is easy to compare the best employees among the candidates.
Application form doesnot misses any candidate.
 Group tests is time savings and is easy to select the candidate based on scores.
 Resume review of the candidate will help to read a complete history of the candidate.
Consequences:
 Collection and identification of application form is a time consuming process.
 There is a chance that, personal details on application form may be wrong.
 Candidates may be nervous in interview tests procedure. Actual knowledge & skills
cannot be determined in such case (Islam 2018).

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Recruitment methods by Rio Tinto Group
Rio Tinto Group is undergoing both the internal & external recruitment process. In
case of internal recruitment, existing committee are appointed. Indigenous-owned labour hire
company is the group partner and helps hem supplying workers for their Pilbara mines
(GradConnection. 2020).
Selection methods by Rio Tinto Group
The group is selecting the candidates by the following methods:
 Online application
 Online psychometric test
 Face-to-face interviews
 Site visit
 Contract
 Relocation when required
3. Performance Management
It is a process that ensures that the business activities are meeting the organisational goals
in an efficient manner (Ahmed et al. 2016).
Types:
 General Appraisal
 360-degree Appraisal
 Technological Appraisal
 Employee self-assessment
 Manager appraisal
 Project evaluation review

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 Sales appraisal
Tools used by Rio Tinto: Financial Key Performance Indicator (KPI) is used to manage
the costs and increase productivity. KPIs is used in long-term incentive plans and operational
measurement (Thekdi and Aven 2016).

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References
Ahmed, T.M., Bezemer, C.P., Chen, T.H., Hassan, A.E. and Shang, W., 2016, May. Studying
the effectiveness of application performance management (APM) tools for detecting
performance regressions for web applications: an experience report. In 2016 IEEE/ACM 13th
Working Conference on Mining Software Repositories (MSR) (pp. 1-12). IEEE.
Annualreports.com. (2020). [online] Available at:
http://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_RIOA_2018.pdf
[Accessed 13 Mar. 2020].
GradConnection. (2020). Rio Tinto - Our Recruitment Process. [online] Available at:
https://au.gradconnection.com/employers/rio-tinto/graduate-how-to-apply/ [Accessed
13 Mar. 2020].
Islam, T., 2018. Recruitment And Selection Processof Janata Bank Ltd (Doctoral dissertation,
Daffodil International University).
Lin, C.H., Sanders, K., Sun, J.M., Shipton, H. and Mooi, E.A., 2018. HRM and innovation:
the mediating role of market-sensing capability and the moderating role of national power
distance. The International Journal of Human Resource Management, pp.1-26.
Sarma, J., 2017. Recruitment And Selection In Assam Carbon Products Limited. Deliberative
Research, 35(1), pp.27-32.
Thekdi, S. and Aven, T., 2016. An enhanced data-analytic framework for integrating risk
management and performance management. Reliability Engineering & System Safety, 156,
pp.277-287.
Wilton, N., 2016. An introduction to human resource management. Sage.

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