T4 Business

Human Resource Management

Management of the total relationship between an employer and an employee

• Strategic approach incorporating aspects of managing employee, sees employees as an asset and follows an approach that encourages open communication and goal orientation

• Effective workforce will add value to business performance

Employer

 Legal purposes, exercise control over employees, has responsibility for payment of wages and holds power to dismiss employees

Employee

worker under employers control and involves location of the workplace, way work is performed and degree of supervision. 

Finance Dependence

• HR funding impact: HR needs sufficient money to attract, train, and reward staff, which directly supports profitability, strong share prices, and long‑term business survival.

• Training and motivation: Ongoing training helps staff meet changing job demands, while monetary and non‑monetary rewards boost both intrinsic and extrinsic motivation.

Marketing Dependence

Marketing identifies customer needs through research and communicates value to drive sales and profit. HR depends on marketing insights to reward employees and strengthen employer‑employee relationships, boosting customer loyalty and profit maximisation.

Operations Dependence

HR manages employee relationships and resourcing (acquisition, development, maintenance, separation) to enhance motivation, efficiency, and productivity, increasing sales, profits, and market share.

Outsourcing

Use of external providers to perform tasks and business activities. Specialising function will lead to lower costs and greater efficiency, contributing to cost leadership.

Human resource functions:

Business outsource to allow key business functions to focus on core activities as they grow/expand. 

• Human resources that can be outsourced e.g recruitment, leadership training and payroll

Contractors

External provider of services to business 

• Create cost saving or gain greater access to expertise and competitive 

• Used for non-core functions as they can focus on broader objectives

• Risk: Loss of quality, difficult coordination, difficulty monitoring performance means setting clear guidelines and legally binding terms to avoid expensive litigation

Domestic subcontracting (Outsourcing)

 Allows the firms to focus resources on core functions while external specialists provide detailed assistance. 

• Provides potential to improve quality and productivity of their services without resource scale normally required to achieve this level of quality 

Global subcontracting (Outsourcing)

Two types of outsourcing 

• Proccess outsourcing: Focuses on repetitive, easily measured and document work 

• Project outsourcing: Found in areas such as HR, Marketing, design and IT

Global outsourcing risk

• Difficulty in controlling quality and reliability of the service 

• Cultural differences such as language 

• Security issues such as the sharing of confidential information

• High labour turnover rates.

Adv of outsourcing HR

• Extended capacity and flexibility 

• Improved Quality and reduced costs

• Access to new networks

• Help in managing complex issues

• Additional training and development 

Disadv of outsourcing HR

• Quality may fall 

• A consultant may not understand the company's corporate culture

• Less integrated organisations

• Morale and motivation may be damaged

Stakeholders

 Any individual or group that has a common interest or is affected by the activities of an organization. 

Employer (Stakeholder)

New laws encourage negotiation of enterprise agreements and the resolution of disputes. Employers have the power to make agreement improving management training

Employees (Stakeholder)

Workplace location, how work is performed and supervision. 

• Work structure change affected access to work. Casualisation has increased, reducing the need for full-time and part-time. = imperative to offer training and development/reward to motivated staff

Employer associations (Stakeholder)

Organisation that represents employer groups 

• Respondents to award covering employers of their members and covering employers in same/related industry

• On behalf of employers in collective bargaining and before industrial tribunals

• Created by employes as counter party to union to represent employers.

• Provide advice, make submissions to safety net wage cases, negotiation agreement

Union (Stakeholder)

Organisation formed by employees in an industry, trade or occupation to respent efforts to improve wages and working conditions of their members. 

Reasons for decline in union membership 

• Poor image of unions in media

• Legislative changes which reduces power

• Collaspe of centralised wage-fixing system 

• Commmunity attitudes favour individual rather than collective approaches to problem 

Economic changes and changes in workforce

• Decline in workplace size 

• Decline in manufacturing employment due to technological and structural change

• Gorwth of service/industries 

• Growth of casual.part time 

• Feminisation of workforce

Government organisation (Stakeholder)

Gov increase power to regulate industrial relation system through external affairs and corporation [ower under the constitution. Aim to create a national system simplifies industrial relations. Arrangement to reduce business cost through creating certainty and effieicny with industrial matters 

Legislator

Employer

Responsible economic manager:

• Pass laws in parliament which provides legal framework for industrial relations

• Often regarded as pace setters in terms of responsible industrial relation policies 

• Government operating at the macro level are keen to ensure non-inflationary, stable economic growth and high living standards

Administrator of government policies on industrial relations:

The government can implement the laws they enact through publishing information and guidelines, providing advice to governments and the public, and investigating law breaches.

Employment contract (Legal)

Legal obligations for E and E

• Nature of contracts/agreement

• Dispute settling

• Protection of human rights

• Employer responsibilities for tax payment on behalf of employees. 

Employment contract (Legal)

Legally binding formal agreement, gives protection to both parties through signing. Enables key responsibilities and duties

• Salary

• Hours

• Super 

• Benefits 

• Promotion

Common law: Rights/obligations (Legal)

 Developed by courts and tribunals 

• Decisions based on facts, guided by precedent 

Employer obligations / rights(Legal)

• Providing work

• Payment of income and expenses

• Safe working condition WHS act 2011

• WHS training to minimise accident

• Carry out their work according to award including money accountability 

• Receiving formal advice for intention to leave business

• Duty of care under WHS Act 2011 cth

Employee obligation / rights

• Carry out work

• Take reasonable care act safely 

• Be honest, fair work with integrity 

• Appropriate notice of termination 

• Being paid in full for time they work 

• Minimum set in award receive extra pay such as loading 

• Receive allowance for uniform

Minimum employment standards

10 national employment standards (consultation with business, union and community)

• Provided by employers and state minimum conditions

• Provide safety net for vulnerable and low paid, basic standard 

Minimum wage rates:

Base rate of pay for number of hours

• Determined by awards, enterprise agreements, national minimum wage 

• Reviewed by FWCM minimum wage 

Awards

Legally enforceable, formal agreements made collectively between employers and employees at industry level. 

• Key features of industrial relation system

• Undergone simplification

• Base rate

• Overtime, penalty rates

• Allowance

• Leave loading

• Hours of work

• Superannuation 

Enterprise agreements 

• Collective agreements bwteeen employer and group of employees about t & c of employment 

Three types of enterprise agreement

Fair work act 2009 Must be approved by FWC. 

• Single: 1 employer & group

• Multi: >2 employer and group

• Greenfield: single enterprise and group 

• Cover pay rates, penalty, allowance and leave

Individual contracts:

Employer and individual employee negotiate covering pay and conditions. Common in private, professional, management Informal and provide conditions 

Independent contractors:

Consultant/ freelancer, FWC pvoides criteria, developed through test case to determine whether someone is a contractor employee 

Casual employment

Part time

Short-term, irregular and uncertain. Not entitled to paid holiday or sick leave. 

• Casual staff reduce on-cost and entitlement

Continuing employment and working less than 38 hours per week. Part time employees receive entitlement on a pro-rata basis. 

Work health and safety

Code of practise, national standards, common approaches to WHS laws. 

• Improve quality for what conditions

WHS Act 2011 

• Ensure health, safety and welfare through safe system 

• Take steps to ensure that people on site are not exposed to risk 

• Reasonable care and safety of others 

Workers compensation

Wide range of benefits from injury or disease related to work. Work cover NSW

Employers must

• Take out policy with a licensed insure 

• Keep time and wage records, a register of injuries and complete accident 

• Establish injury management/return to work plan 

Discrimination

Occurs when a policy or a practise disadvantage a person or group of people because of characteristics that's not related to performance 

Anti-discrimination:

Protect employees from discrimination

• Sex discrimination Act 1984 

• Anti-discrimination act 1977 

Under discrimination laws, it is illegal to take adverse action in employment of grounds of

• Race, sex, sexual preference, colour, age 

• Physical/mental disability 

• Religion

• Pregnancy 

Equal employment opportunity:

• Create a workplace free from discrimination

• Write and communicate policies 

• Training managers and staff in cultural diversity issues 

• Appointing grievance officer and specifying grievance procedure 

Aim

• Comply with fairwork act 2009 

• Take action to ensure existing awards and enterprise agreements do not discriminate 

Affirmative action

Are measures to eliminate direct and indirect discrimination, and for implementing positive steps to overcome current and historical causes of lack of EEO

Workplace gender equality Act 2012

Aim to promote and improve gender equality for men and women

• Advising and assisting employers with promotion 

• Receiving compliance 

• Providing research funds and educational programs to improve 

• Reporting 

To achieve

• Provide equal pay an condition for men 

• Remove anything preventing participation 

• Facilitate access to all jobs

Economic (Influences)

 Demand for labour is determined by demand of goods n services in economy 

• Labour shortages during economic growth = employees compete for employees by offering higher wages. 

• Union stronger bargaining to demand wage increases. = Inflation 

• Economic downturn = downsizing of capacity to increase 

Globalisation (Influences)

 Level of international competition increased

• Business restructure, outsourcing non-core function or subtract production. 

• Relocate production for lower labour/regulatory cots, increased need to attract and retain while staff. 

Technological (Influences)

Development improved productivity, communication and competition

• Change the nature of production, service change and new jobs.

• Use of tech create need for training programs to accommodate

Changing work patterns (Social influence)

Growth in causal/part-time as demand for flexibility and work-life balance. 

• E.g higher casualisation however casual would like paid holiday and sick leave

Career flexibility and jobs mobility

Increased participation rates for women

• Most mobile employees are young, aus and speak english. Creative and knowledge based field provide the most flexibility.

Increase in participation due to women 

• Rates of women increased reflects social expectation and increased education 

Aging of the workforce (Social influence)

Early retirement

Of workforce refers to growth in average age of population, sustained low fertility and increasing life expectancy 

• Respond to this by upskilling population and providing creative incentives

Average age of retirement has increased to 55 

• Many people returning to work for financial reason or simply relive boredom 

Living standards (Social influence)

Australia has high living standards, wage increases, WHS, performance bonuses, and fringe benefits. 

• Many political parties have recognised the importance of these conditions 

• Casual worker has more stress in purchasing assets with fluctuating income 

Ethical business practises

Code of conduct and Code of ethics:

Social responsible, morally right, honourable and fair 

1. Statement of acceptable and unacceptable behaviours in a business

2.  Statement of a firm's value and principles 

Ethical and legal issues

• Work overload

• Workers compensation 

• Discrimination 

• Unethical ork practises and conditions 

Benefits of ethical and legal practises

• Positive environment, Pleasant work environment

• = Employee retention, maximised performance with security, confidence and safety. 

Working conditions:

Achieve safe/fair working conditions through compliance with social injustice and industrial legislation 

• Safe practices, equipment and training. 

• Improve communication, empower staff, flexible work

• Code of practise for customers, employees and suppliers

Acquisition (Processes)

 Process of attracting and recruiting suitable staff for certain roles within a business. Analyses business

• Internal environment (Goals, business culture, objectives.)

• External environment (Competition, economic and legal influences)

Recruitment (Acquisition)

• Identify staffing needs (Role description, job design)

Locating and attracting right quantity/quality of staff to replace vacancies

Selection (Acquisition)

Placement (Acquisiton)

Gathering information on potential applicant and using that to choose the most appropriate applicant for the position

Locating employee in position that best utilizes individual skills to meet business needs

Development (Processes)

Enhancing the skills of employee in line with changing /future needs of the business; as employee career develop, training/development needs to match business

Induction (Acquisition)

Start of employment, familiarizing employee with business procedures, culture and management

Training/mentoring: Internal (Job mentoring, induction) External (TAFE, Uni)

Record keeping

 Employee information, contracts, right to work documents.

Performance appraisal

Assessing employee performance : Evaluates performance, identify areas for coaching, leadership and mentoring development to ensure effective contribution to business success

Maintenance (Processes)

Managing needs of staff for health and safety, industrial relations and legal responsibilities (Including compensation and benefits) - Maximising wellbeing and staff retention 

Participation strategies (Participation through membership of board of directors)

Allow employees/seniors to represent staff on board. Presents conflict of interest for employee, who often becomes alienated from other employees

Participation strategies (Participation through ownership)

Employee buy shares in company = increased commitment. However ownership involves different objectives may lead to conflict of interest

Participation strategies (Join Consultative Committees)

 Formal Established groups consisting of employees and management representatives, and may include union representatives. The original purpose was to provide management with views of employees on a range of issues, enhancing communication, efficiency and productivity. In NSW these have been mandatory for larger workplaces

Participation strategies (Participation in collective bargaining)

 Requirement that majority of employee is involved in developing agreement

• Adv: Under good faith bargaining principles all parties are required to make an effort to resolve through negotiation/conciliation. Ensures clear opportunities to learn from experience and achieve a resolve

Participation strategies (Team Briefings)

Team provide opportunity for employees to share knowledge, skills and experience to find solution to problems and develop innovation

Participation strategies Employee surveys and feedback from performance interviews

Range of surveys and reports from staff to seek feedback on ways to improve business performance.

Benefits of maintenance

Monetary

• Bonuses

• Fair wages 

• Work Car

Non-monetary 

• Job promotion

• Recognition of achievements

• Increased flexibility 

Separation (Processes)

Ending of employment relationship either by employee of employer

Voluntary

Employees choice

• Retirement: Action of withdrawing from one's active work life

• Resignation: Stepping down from a job

• Voluntary Redundancy : Employee choose to leave after employer offers redundancy payment

• Relocation: Getting a new job

Involuntary

 Employers choices 

• Involuntary redundancy : Employer terminates employee’s role because it is not needed

• Dismissal: Employer ends employees contract without notice 

• Retrenchment: Termination of position due to redundancy 

• Expiration of contract: Contract ends without renewal 

• Misconduct engagement: breach of conduct

Leadership style (Strategies)

Way managers communicate to inspire and motivate them to work together to achieve an organisations goals

Autocratic

Quick decisions without input from staff, effective with unskilled workers where work is highly organised and controlled inflexibility. - Issues such as higher levels of absenteeism + Staff turnover. 

• Suits those driven by financial reward but is often linked to lower levels of job satisfaction

Effective when

• Immediate compliance with rules or procedures

• Fast, immediate decision making 

• Inexperienced staff

Democratic (Leadership style)

Consultative approach between M and W encourages engagement in decision making

• Transformational leadership where managers have higher expectations for workers

• Emp greater sense of ownership in decision = High satisfaction/productivity

• Effective when emphasis on higher quality output rather than efficiency - may lead to longer process due to consultation time

• Inexperienced workers or disaffected, their lack of engagement may be of little assistance to process

• Behavioural approach - Motivation, conflict and relationships

• Workers are seen as a resource that can be developed over time 

Delegated Leadership (Laissez-Faire):

 Allows employees to make decisions, however not all their responsibility: Involves clear understanding between leaders and employees over who can make what decisions.

• Subordinates (Lower ranked employees) are delegated responsibility for decision making

Pos: Fosters creativity, employee engage in leadership and independence, employees utilise their expertise

Negative: Employees may need direction as they may avoid work by allowing others to lead, conflict may increase

Job Design (General or specific task)

Developing and specifying the work activities of individuals or groups. Involving the process of determining type of task needed to complete

• Number, kind and variety of the task that work is expected

Job Design Process

Specify 

• Job content

• Job method (Specific and general task)

Identify

• Relationships to other jobs (Interdependence) 

Clarify

• Technological and organisational requirements 

Assess 

• Personal requirements 

• Social requirements of workers

General tasks:

Work tasks performed in a role which are generic and apply to a variety of jobs 

• Maintain record of meetings 

• Communicate with the team

Specific tasks

Work tasks performed in a role which require unique skills, experience or knowledge to undertake a job

• Liaise with customers 

• Develop and submit a budget

Aspects of job design 

• Rearranging work environment: teams, work groups, division of labour 

• Job enrichment: Employees are given more control and independence over how they do their work, making the job more interesting and challenging 

• Job enlargement (Restructing): giving employees more things to do within the same job 

• Job rotation: Planned movements of workers between jobs to multi-skill, increase experience and provide job satisfaction. 

Benefits of job design 

• Reduced employee alienation 

• Increased motivation and satisfaction

• Increased work productivity

• Worker empowerment

• Retention rates 

• Upskilling and multiskilling 

Recruitment (Strategy)

Process of locating, identifying and attracting suitable, qualified candidates in a timely manner for positions available within a business can be internal or external. 

Internal Recruitment

When existing employees within a business fill a position 
Positive

• Incentives for employees to improve

• Prior knowledge of business culture, skills and work habits

• Existing investment in time and training 

• Shorter time lag to fill vacancy

• Seen as a reward for hard work

Negative

• Unsuccessful applicants may lose motivation

• May promote unhealthy rivalry

• Staff overlooked for the position may lose motivation

• Business may be denying new opportunities by recruiting internally
  
  

External recruitment

Individual who has not worked for the business before fills a position

Positives

• Business is encouraging/acting upon new opportunities

• New ideas can improve productivity 

• More potential applicant means more qualified applicants with specific skils

Negatives

• Cost of advertising for the job is increased

• Time lag for recruitment 

• May take time for the new employee to settle 

• Resentment from existing staff

• Risk of the unknown

• Difficulty adapting

General skills:

Work tasks performed in a role which are generic and apply to a variety of jobs 

• Maintain record of meetings 

• Communicate with the team

Specific skills

 Skills acquired through specialist training typically leading to a qualification

• Includes technological proficiency, managing, specialist training

Human resource management T&D (Strategies)

Establishing training and development programs, training managers to implement them in the workplace and then evaluating effectiveness of programs

• In implementing T and d business need to be aware of current skills and future skills needed to guide T and d need.

Training

Develop current skills knowledge and attitudes that lead to a productive and efficient work performance 

• Critical as business report significant labour market problems such as a shortage of skilled labour and a mismatch between what skills are needed and what is available 

Development

Enhancing skills of employees in line with the changing and future needs of organizations 

• Benefits by retraining employee experience and business knowledge, maintaining a sustainable competitive advantage

Performance management (Strategy)

 Business evaluate the performance of employee and business overall 

• Individual and business performance to ultimately meet strategic objectives

• Objective measurement e.g data gathering 

Benefits

• Measures individual employee performance 

• Improved productivity / motivate staff

• Identify relevant training programs / informed judgement about employees

Developmental performance (Performance management)

• Training/coaching developing team members' skills in a specific work area

• Aligning individual objectives with strategic goals to improve performance

• Identifying skill deficiencies via performance data + shared discussions

• Addressing gaps through training, development, and career planning

Administrative Performance (Performance management)

Assesses strategic progress of the business by identifying areas for improvement. Conducted annually.

• HR managers to plan training, development, pay levels, and performance

• Identifies individual staff strengths and weaknesses against KPIs

• Rewards contribution to the business through performance evaluation (e.g. bonuses)

Reward (Strategy)

Something given in recognition of service, effort or achievement

• very effective method to improve performance/results for employee/business

• Effective system that is clearly communicated, relevant, cost effective, simple to administer and aligned with business goals 

Monetary rewards:

• Monetary value may be direct in case of pay or commissions

• Monetary value may be indirect as is the case with things like onsite child care facilities and medical coverage

Non-monetary rewards

don't have a monetary value 

• Could be things such as increased responsibilities and promotional opportunities, change of work environment/roles 

Group rewards

 When group exceeds expectations 

Individual + group

Benefits 

• Encourages teamwork

• Motivated between each other

• Communication, rewards encourage excellence and valued

Disadvantages 

• Effort may be inconsistent 

• Different goals not recognised 

• Conflict covering individual performance

Performance pay

 Pay aligned with level of performance = increase motivation 

• Motivate and effectiveness

• Attracting good employees 

• Performance difficult to measure

• Conflict due to measurement of performance 

• Assumes motivated whereas some indivuasl seek non monteaty

Global costs

• Aus has very high labour costs

• Access to global labour market reduce costs

• Business can go offshore for lower costs or setting business subsidiaries internationally to take advantage