Unit 3 AOS2

2A-2L

Human Resource Management

an individual or group that is responsible for managing the employee life cycle in a way that will get the very best out of them

Human Resources Manager alternative deifnition

is the organisation of employees’ roles, pay, and working conditions.

HR Management responsibilities

• Recruitment and selection

• Induction of policies and procedures

• Motivation

• Training

• Performance management

• Termination Management

• Awards and agreements

• Dispute resolution

• Culture

Which business objective is related to the HR responsibility of motivation?

To fulfil a market need

Which business objective is related to the HR responsibility of training?

to increase market share

Which business objective is related to the HR responsibility of performance management?

to improve effectiveness

Which business objective is related to the HR responsibility of termination management?

to make a profit

Which business objective is related to the HR responsibility of awards and agreement?

to meet shareholder expectations

Which business objective is related to the HR responsibility of dispute resolution?

To improve efficency

Maslow’s Hierarchy of Needs acronym SESSP

• Self - Actualisation

• Esteem Needs

• Social Needs

• Safety and security needs

• Physiological Needs

Physiological needs include

Food and water

Physiological needs in a business context include

Job and income

Safety needs include

shelter and clothing

Safety needs in a business context include

• Pay

• occupational health and safety

• Job security

Social needs include

love, affection and a sense of belonging

Social needs in a business context include

• Teamwork

• Social Activities

• Staff functions

Esteem needs include

Respect and sense of accomplishment

Esteem needs in a business context include

• recognition

• delegation

• empowerment

Self-actualisation includes

Personal fulfillment and reaching full potential

Self-actualisation needs in a business context include

• Promotions

• Opportunities for advancement

Strengths of Maslow’s Hierarchy

• It gives managers a clear structure that they can build into the business, so that all employees can experience motivation

• Employees can reach their full potential at their own pace

• Managers can then relax and allow employees to succeed themselves

Limitations of Maslow’s Hierarchy

• It assumes all employees are motivated by the same things in the same order of priority —> subjective

• Assumes nothing else motivates employees

• Employees may be at different stages so its hard to measure or track progress

Four Drive Theory

a motivational theory suggests that employees strive to achieve four fundamental needs

Drive to acquire

to the desire to have goods and services in life

Drive to bond

desire to form long-term relationships

drive to learn

desire to continually learn new things

Drive to defend

desire to defend themselves and those who they care for

Drive to acquire in a business context

• Promotion

• Salary —> Remuneration

• Prestigious job titles

Remuneration meaning

money paid for work or a service.

Drive to bond in a business context

• Social interactions

• Team buildings

• Feeling included

Drive to learn in a business context

• Constantly learning new things

• Mentoring

• Setting challenging goals

• training

Drive to defend in a business context

• Defending the company

• Pride in values/beliefs

• Standing up for one’s team

Strengths of Four Drive Theory

• Manager can target different drives of specific groups of employees

• Manager can also attempt to motivate all 4 drives simultaneously

Limitations of the Four Drive Theory

• Employees may not value all drives equally

• Determining the specific needs of specific employees can be time consuming

What is the Goal Setting theory?

a motivational theory that states how setting goals improves performance

How should businesses set goals with employees?

by sitting down with them and having a chat

5 variables that can affect the chances of success in applying this theory

• Clarity

• Goal Commitment

• Challenge

• Task Complexity

• Performance feedback

Strengths of Goal Setting Theory

• Very individual specific approach

• If it aligns with business goals then business benefits too

• Improves trust and relationships between manager and employees

• Its easy to track goal achievement

Limitations of the Goal Setting Theory

• Extremely time-consuming

• Hard to align business and personal objectives

Similarities between Maslow’s Hierarchy and Four Drive Theory

• Both suggest that different employees value different things

• The drive to acquire (4 drive) is similar to psychological/safety needs (Maslow)

• Drive to bond is similar to social need

Differences between Maslow’s Hierarchy and Four Drive Theory

• Maslow must be sequential whereas Four Drive can be targeted in any order or even simultaneously

• Drive to defend is not like any of Maslow’s hierarchy levels

Similarities between Maslow’s Hierarchy and Goal Setting Theory

• Both recognise personal employee motivations

• Goal achieving (Goal setting) is similar to the self-actualisation need (Maslow)

Differences between Maslow’s Hierarchy and Goal Setting

• The motivations can be different in Goal Setting whereas in Maslow they are only what is provided in the list compiled by Maslow

• Maslow can be applied by a manager alone, whereas Locke requires employee input

Differences between Goal Setting and Four Drive Theory

• Four Drive can be applied by a manager alone whereas Goal setting requires employee input

• The pursuit of goals is usually one at a time, whereas the pursuit of different drives can be simultaneous

Similarities between Goal Setting and Four Drive Theory

• Goal achieving can be similar to the drives to acquire and learn

• Both theories include the manager seeking to understand the needs/drives of the employee

Performance- related pay

a salary system based on how well an employee works

Eg of people with performance-related pay

• Real-estate agents

• Share market traders

• Car salespeople

Career advancement

the prospect and opportunity for developing your career through promotion or new roles

Is every employee motivated by career advancement?

No not everyone wants additional responsibilities

Investment in training

when a business pays for employees training programs to develop their skills or knowledge to make them more efficient and effective in their role

How does investment in training benefit the business and employees?

Businesses are benefitting from the employees new skills. Employees benefit from having additional skills to add to their resume

Support

the manager mentoring the employee to increase their self belief through encouragement

Sanction

punishments for failure to meet a business objective

Eg of Sanction

• Pay penalty

• lost promotional opportunity

Strengths of Performance Related Pay

• Very personal goal focussed

• Can be very powerful and motivating

Limitations of Performance Related Pay

• Not collaborative and personal goal focussed

• Hard to focus on team goals

• Lose focus of broader objectives

Effect on Short term motivation of Performance Related Pay

• Employees powerfully motivated to immediately receive financial rewards

Effect on Long term Motivation of Performance Related Pay

• Employees can begin to me demotivated if they have to constantly compete with others to gain financial rewards

Strengths of Career Advancement

• Employees may broaden their skills which help with long-term opportunities

Limitations of Career Advancement

• Can become competitive

• Hard to focus on team goals

• May lose focus on business objectives

Effect on short term of Career Advancement

• Employees are powerfully motivated to take on additional responsibilities and put in extra effort

Effect on long term of Career Advancement

• Employees can be motivated to position themselves for a future position

Strengths of investment in training

• Usually very targeted at business objectives

• Often leads to productivity gains and quality improvements

• Can allow for team to train together and develop cohesion

Limitations of investment in training

• Can be financially expensive —> off the job training

• If employee leaves they take your investment with them

Effect on short-term motivation for investment training

• Employees can be quickly motivated by an opportunity to upskill

• Employees can sometimes be demotivated if they see the training as an interruption to their work deadlines

Effect on long-term motivation for investment training

• Employees can be motivated for a long duration is they feel the company is investing their skills and knowledge over the long-term

Strengths of Support strategies

• Employee feels respected and valued by the business

• Manager gets to be directly involved with motivational focus

• Generally financially cheaper than investment training

Limitations of Support strategies

• May involve a lot of management time meeting with and supporting employees

• May take time to see results develop

Effect on short-term motivation for support

• Employees feel immediately cared for and concerned about wellbeing

Training

the process of developing skills and knowledge of an employee

On the job training

Employees learning from existing employees at an employees’ current job on how to perform the job more efficiently and effectively.

Types of on the job training

• Coaching

• Mentoring

• Job Rotation

• Job shadowing

Coaching

being taught by an existing employee on how to perform a specific role

Mentoring

having a senior staff provide support and advice on how to operate tasks

Job Rotation

completing roles in different areas of a business understand how they interconnect

Job shadowing

Following and observing an experienced employee

Advantages of on the job training

• Costs of training will be lower compared to off-the job training.

• Employees can learn specific skills related to the job

• New staff can learn tricks from experienced employees

Disadvantages of on the job training

• New staff may learn bad shortcuts from existing employees that don’t align with business policies

• Trainees are unlikely to gain broader knowledge through networking

• Might disrupt existing employees from gaining goals

Off the job training

Learning from professional instructors away from the business as to how the employee can perform this job more efficiently and effectively than before

Types of off the job training

• Conferences

• Lectures

• Workshops

Advantages of off-the-job training

• Employee has morale boost for being selected for it

• Broadens social networks

• Staff being trained are less likely to be distracted by their work environment

Disadvantages of off-the-job training

• Costs

• Added costs due to decreased productivity due to employee’s absence from work

• Training might not be effective due to difficulty in integrating skills into their work

Performance management

how an employee can be directed in the future to achieve both business and employee objectives

Management by objectives

strategy that aims to improve performance of a business by clearly defining objectives that are agreed by both management and employees

Performance Appraisals

a performance evaluation of employees with managers, reviewed against pre-determined standards

Performance appraisal advantages

• Involves communication with employees to improve workplace relations

• Can help identify areas for further training

• Can provide confirmation on whether a promotion or dismissal is necessary

Performance appraisal disadvantages

• Time consuming

• Sometimes instils fear in employees

Self evaluation

an employee reflecting on own performance using a set criteria from a manager/employee discussion

Advantages of self-evaluation

• Not highly time consuming

• Employer can better understand a employee’s mindset

Disadvantages of Self evaluation

• Open to bias reducing accuracy of measurements

Observation

monitoring an employee against a range of criteria set by other employee/s that shows the manager what the employee needs to improve on

Advantages of Observation

• Authentic assessment

• Can identify areas needing further training

• Can provide confirmation on whether a promotion or dismissal is necessary

Disadvantages of Observation

• Time-consuming

• Employee might just be having a bad day

• Can be stressful for the employee if they are aware of the assessment

Termination

the process where a business and an employee terminate their employment contract

Retirement

a voluntary form of termination when an employee decides to permanently leave the paid workforce

Are Australians allowed to retire at any age?

Yes, although its normally associated with older workers

For most people, retirement generally comes down to a couple of factors

• The age you can acess your super

• Your qualifying age for the age pension

At what age are you qualified for the age pension?

66 years and 6 months ASK

Redundancy

when an employer:

• doesn’t need an employee’s job to be done by anyone

• the business becomes bankrupt or cannot afford to pay its staff

Is redundancy voluntary or involuntary?

Can be both