Looks like no one added any tags here yet for you.
Human Resources
The process of managing employees in a workplace
Human Resource Management
The process of managing staff within an organisation
Focus of HRM
Relationship between employed + employee + how they are able to work to achieve goals of business + their individual goals
Employer
Exercises control over employees
Has responsibility for payment of wages
Hold the power to dismiss employees
Employee
A worker under an employer’s control. May involve
Location of the workplace
The way in which the work is performed
Degree of supervision involved
Strategic Role of HR
Seeing an effective workforce as a way of adding value to all areas of their business performance
Focusing on the use of specific human resource management strategies to retain, reward and motivate effective + skilled employees to achieve the business’s objective
Benefits of Strategic Role of HR
Development of highly qualified workforce that value skill development
Introduce systems + procedures that deal with workplace conflict + grievances
Recruiting employees that fit into the long-term organisational needs of the business
Workforce creating a competitive advantage
Strategic Challenges for HR Management
Developing + retaining talented staff
Improving leadership development
Managing an ageing workforce
Analysing the increased role of technology
Communicating fully to all stakeholders
The company’s position on ethics and CSR
Discussing the advantages + disadvantages of outsourcing in a global market
Interdependence with Oher Key Business Functions
Operations:
Recruit staff with relevant skills + experience necessary to product
Monitor performance of those involved in production
Provide training and development initiatives for staff
Marketing:
Through marketing process, business is able to determine the skills required for employees to produce desired product
Staff are public face of business + actions influence consumer decisions
Finance:
Budget developed that allocates funds toward training and development e.g. HR manages must work within budgets
Budget developed that allocates fund toward new roles + recruitment
Outsourcing
Need to reduce costs, improve productivity, globalisation + technological change → increased competition
As a response new organisational structures have emerged with the growth outsourcing business functions
Reasons for outsourcing
Reduce costs
Focus on core
Improve quality
Increase speed to market
Foster innovation
Conserve capital
Domestic Contractors
Labour hire/employment agency
Labour hire/employment agencies/dependent contractors
Independent contractors
Outsourced suppliers
Global Outsourcing
Process Outsourcing:
Most common form of outsourcing and involves jobs that are repetitive + easily measured work
Project Outsourcing:
Involves use of intellectual property + strategic business knowledge, tends to operate in a longer time frame, is more difficult to measure + quality cannot be fully anticipated which is risky
Risks of Global Outsourcing
Difficulty controlling quality + reliability of the service
Cultural differences
Security issues
Lack of remedies for breach of contract
High labour turnover
Well-qualified employees may be replaced with less qualified staff
Key Influences
Stakeholders — Employers, Employees, Employer Associations, Unions, Government Organisations, Society
Legal — The Current Framework
Stakeholder
Anyone that has an interest in the business
Employers
Owner or a manager of a business whose responsibility is to pay others to work for the business
Stakeholders in HRM are
Responsible for ensuring that the business has the appropriate staff to achieve the organisation’s goals
Employers’ responsibilities are increasing, as current legislation encourages them to negotiate agreements + resolve disputes at the individual workplace
Employers are widely criticised for not managing employees effectively
Employees
Provide skills to business in return for regular source of income
Require development opportunities, rewards + increased priority towards work life balance
Unions assist employees to negotiate improved work conditions/incentives with employers e.g. provisions for child care + paid maternal leave
Employer Associations
Aim to promote the interests of the employer within a business environment
Provide advice on matters e.g. unfair dismissals + discrimination issues
Make submissions to safety net wage cases
Negotiate agreements
Lobby governments + other organisations with the views + interests of employers, industries + trade
Unlike unions, represent employers on a broader range of issues
Examples: Business Council of Australia, Australian Confederation of Commerce and Industry (ACCI), National Farmers Federation
Trade Unions
An organisation that aims to protect + promote the interests of employees within a workplace
Assist employees with disputes in the workplace + act as a bargaining agent in wage negotiations
Advise members on
Workplace rights
Wage levels
WHS issues
ACTU: National union group in Australia in Australian Council of Trade Unions (ACTU)
Lobbies governments for improved work conditions
Works with other unions on submissions to FWC for wage increase hearings
Works with unions, employer associations + Federal government on appropriate increase of minimum wage
Governments
One of the most influential stakeholders in the employment relationship process
Federal government establishes legal framework that employees, employers + unions abide by
Government influences HRM through changing policies on contracts, minimum wages, industrial relations, WHS
Key Roles:
Legislator
Employer
Responsible Economic Manager
Administrator of government policy on industrial relations
Representative of Australia in international arena, International Labour Organisation
Legislation affecting HRM
Statutes — laws made by federal + state parliaments
Constitution → limited powers to Commonwealth Government about industrial issues + allows states to make laws about matters from residual powers
Role of Statute Law
Provide framework for awards + agreements + resolution of disputes + require employers to
Meet WHS requirements
Maintain worker’s compensation insurance
Provide all employees with superannuation, annual leave + long-service leave
Ensure employment practices in the workplace are free from discrimination
Give each new employee covered by national industrial relations systems, a fair work statement — gives basic information about employee rights
Fair Work Act 2009
Administered by federal government
Covers all constitutional corporations + most private employees
Gives employers + employees the same workplace rights and obligations, regardless of the state they work in
Key Elements:
Ten National Employment Standards (NES) developed to provide basic protections to employees
Collective bargaining + good faith bargaining required by all parties
Modern awards for specific industries and occupations
Enterprise bargaining continued
Annual National Wage Case sets minimum wage
Protection from unfair dismissal
Industrial Tribunals and Courts
Exist at the federal and state levels of enforces laws established by governments
The FWC today plays a role in ensuring that the bargaining process and any associated industrial action occur according to law
FWC assists in resolving disputes involving employers, employees, unions + employer associations who are covered by the national workplace relations system
A panel of 7 senior members, the FWC’s expert panel — responsible for hearing annual wage cases + setting minimum wages for employees in the national workplace relations system
Federal Court
Under the constitution, only courts have the judicial power to determine disputes about existing rights + make decision about these matters
Federal Court has division that enforces industrial relations legislation by administering court actions that arise under Australian industrial laws
Handles cases relating to industrial action + breaches of industrial laws, interprets industrial legislation + able to impose penalties for the breach of an award or order
Other Government Agencies
AHRC, the Workplace Gender Equality Agency (WGEA) + state organisations such as the Anti-discrimination board are to implement particular areas of government legislation
Safe Work Australia began operating as an independent statutory agency in 2009.
Its primary responsibility is to improve occupational health + safety, and workers’ compensation arrangements across Australia
Society
The UNDHR recognises the importance of work in people’s lives
The battle between employers + employees is very public and voters will elect + vote out governments that significantly hurt employees’ rights
Global competition means greater outsourcing and relocation of production outside Australia → can significantly harm local communities
Community interest in health + safety at work has grown as has criticism of any perceived discrimination
All this is going on while businesses look for ways to reduce the cost of labour
Legislation Covers
The nature of employment contracts + agreements
Dispute-settling methods
Protection of human rights in employment
Employer responsibilities for tax payments on behalf of employees
Employee Welfare is provided for through
WHS legislation + specific legislation
Superannuation Guarantee — all employers are obliged to pay superannuation contributions for employees, whether or not they are on awards
The legal system — Current Framework
Changing community + worker expectations on social justice (equal employment + anti-discrimination), safety + environmental issues are increasingly reflected in legislation + work practices
Australia has shifted from strongly centralised industrial relations system in 1990s → decentralised + more fragmented system based increasingly on bargaining at the workplace level
Themes within the current legal system
Many people are
employed using unregistered individual common law contracts
Have only casual work
Work as independent contractors
Government Influence on Employment Contracts
Federal Government — Department of Education, Skills + Employment responsible for
FWC
Fair Work Ombudsman → educates employees + employers + ensures they comply with the law
Safe Work Australia → aim to bring a national policy development on WHS + Worker’s Compensation
Comcare → education role but also runs a worker’s compensation scheme
Employment Contract
Agreements between employers + employees to ensure that responsibilities are performed + rights are protected
3 Parts to a contract
Offer
Acceptance
Consideration
Can be written/verbal
Can be contract of service
Standard employer-employee contract)
Contract for service
A contractor is used for a specific job for a set time
Court can decide that a contractor is actually an employee if the company had the right of continuous, dominant + detailed control over contractor
Contract is valid when:
Parties involved intend to create legal relationship
One party offers + other accepts offer
Both parties obtain a benefit
Both parties have capacity to contract e.g. they are old enough to agree/make contract
Consent is genuine + not pressured
Offer does not contravene public interest
Common Law (Rights and Obligations of Employees)
Developed by judges + relies on precedent
Most aspects of rights + obligations in employment contracts stem from common law + formalised in statute law
Employees who need common law contracts e.g.
Senior executives in award-free industries
Sole traders + partners working in partnerships
Employees working in microbusinesses/on special projects
Employers rights and obligations under common law
pay correct wages
cover work related expenses
Provided safe working environment
forward payg tax to ATO
act in a way that will not affect employees reputations, cause mental distress/ruin the employment relationships
Makes superannuation contributions
Employees rights and obligations under common law
Follow lawful + reasonable instructions
Use due care in performance
Are accountable for all money + property
Faithful to employers interests
Make available any product/process developed while in employment
Common Law Statutes
Fair work act 2009
Minimum employment standards
Maximum weekly hours
requests for flexible working arrangements
Parental leave + related entitlements
Annual Leave
Personal Carers leave and compassionate leave
Community service leave
Long service leave
Public holidays
Notice of termination + redundancy pay
Fair Work Information Statement
(Awards + Enterprise Agreements need to be based on these)
Minimum wage rate
An employee’s base rate of pay for number of ordinary hours that they have worked
Generally determined by a modern award, enterprise agreement/national minimum wage
Both employees + employers cannot agree upon a pay rate that is less than the minimum wage
National Minimum Wage set by FWC
Current minimum wage is $23.23/hour or $882.80 per 38 hour week (before tax)
Casual employees covered by national minimum wage also get at least 25% casual loading
Awards
Refers to the legally enforceable minimum terms + conditions that apply to a business/industry
Modern awards ⇒ legally binding orders which define working conditions + set wage rates
Generally industry wide + at federal level modernised by January 2010 e.g. Fast Food Industry Award
Modern award Flexibility
‘flexibility term’ allows employers + employees to negotiate changes to conditions in modern award
Individual Flexibility Arrangements (IFA) allow an employer + employee to come to an agreement that varies the modern award/enterprise agreement to address their individual circumstances
Cannot undermine minimum employee entitlements + must leave the employee better off on the IFA compared to the award/enterprise agreement
IFA can only address following areas
Arrangements for when work is performed e.g. working hours
Overtime rates
Penalty Rates
Allowances
Leave loading
Enterprise Agreements
Collective agreements made at a workplace level between an employer + group of employees about terms + conditions of employment
Types of Enterprise Agreements
Single Enterprise Agreements
Made between single employer + group of employees - can involve more than one employer in limited cases
Multi-enterprise Agreements
Made between 2/more employers + group of employees
May occur if they share common funding, operate collaboratively + have common regulatory system e.g. group of hospitals
Greenfields Agreements
Single-enterprise + Multi-enterprise agreements relating to a genuine new enterprise of the employer(s) that are made before any employees to be covered by the agreement are employed
Made with 1 or more relevant unions
Key features of enterprise agreements
May include
Rates of pay
Penalty rates + overtime
Allowances
Hours of work
Personal + annual leave
Any matters related to the relationship between employer + employees + representative organisation involved
How the agreement will operate including nominal expiry date
Must be approved by FWC + satisfy them that the agreement
Has been made with genuine agreement
Passes a ‘better off overall test’ compared to modern award
Covers a representative group of employees
Has a specified nominal expiry date (within 4 years of the FWC’s approval)
Includes dispute settlement procedure, including an option for disputes to be brought before an independent person e.g. FWC for arbitration if parties agree to it
Incudes flexibility clause + consultation clause, allowing for variations if required
Provides opportunities for employees to be represented by a bargaining representative + to bargain in good faith during negotiation of an agreement
Other Employment Contracts
Individual Common Law Employment Contracts
Independent Contractors
Contracts for casual work
Part time contracts
Individual Common law employment contracts
exist when an employer and an individual employee negotiate a contract covering pay + conditions
Can be written/verbal - many informal and offer much less protection than other agreements
Independent Contractors
consultants/freelancers — undertake work for others; however, they do not have the same legal status as an employee
Contracts for casual Work
have contracts with employers for short-term, irregular/seasonal work.
Work period varies, paid on hourly/daily basis + not entitled to paid leave
Many employers prefer casual staff as it reduces costs for recruitment dismissals and other on-costs (additional costs involved in hiring an employee above the cost of their wages)
Part-time contracts
29% of all employees in Australia are employed on a part-time basis
have access to employment entitlements offered to full-time employees on a pro-rata basis
Work Health and Safety
Commonwealth Government Organisation — Safe Work Australia
Conducts research + national standards
Usually handled by states
Legislation in NSW - Work Health and Safety Act 2011
Work Health and Safety Act 2011 requires
Employers ensure health, safety and welfare at work of all employees
Employers must take out worker’s compensation or face imprisonment/$55,000 fine
Employees are required to take reasonable care for the health + safety of others, to cooperate with employers and comply with WHS requirements
Employees who engage in any behaviour that puts other employees at risk are breaching their duties + could be fined
Health + safety committee must exist at workplaces with more than 20 employees
SafeWork NSW may inspect workplace, collect information + issue improvement + prohibition notions under Factories, Shops + Industries Act 1962
Worker’s compensation
Provides range of benefits to an employee suffering from an injury/disease related to their work.
Provided to families of injured employees when the injury/disease was caused by, or related to, their work
All employers must have workers’ compensation insurance through a licensed insurer
In NSW, the workers compensation is regulated by the State Insurance Regulatory Authority (SIRA)
Icare — NSW government agency that provides insurance + care services to government organisations + to people with injuries under various compensation schemes
Covers about 3.6 million workers in NSW
Anti-discrimination
Occurs when a policy/practice disadvantages a person/group because of a personal characteristic that is irrelevant to the performance of the work
Anti-Discrimination Act 1977 (NSW) entitles employees to fair treatment + covers almost all types of discrimination
Legislative body associated with discrimination is the Australian Human Rights Commission + (act in 1986)
Has responsibility to enforce equal opportunities in the workplace at the federal level and to enforce human rights in Australian workplaces
Laws enforced by AHRC
Age discrimination act 2004
Disability discrimination act 1992
Race discrimination act 1975
Sex discrimination act 1984
Under commission illegal to take adverse action in employment on the grounds of a person’s
race, sex, sexual preference, colour/age
physical/mental disability
religious faith/political opinion
social origin/national extraction
marital status + carer responsibilities
pregnancy/potential pregnancy
Equal Employment Opportunity
Refers to equitable policies + practices in recruitment, selection, training + promotion
Ensures the best person is chosen for the job
Affirmative Action
Measures taken to eliminate direct and indirect discrimination, and for implementing positive steps to overcome the current and historical causes of lack of equal employment opportunity for women
Workplace Gender Equality Act 2012 aims to promote + improve gender equality and outcomes for both women + men in workplace
Gender Equality Aims
achieve equal outcomes for both women + men, to achieve workplaces must
provide equal pay + conditions for women + men
remove anything that prevents the full participation of women in workplace
must facilitate access to all jobs and industries, including leadership roles for women and men
must eliminate discrimination on basis of gender, particularly in relation to personal responsibilities including family and caring for both women + men
Economic Influence
Several factors influenced by economic cycle including
Demand for labour
Employment levels
Bargaining power of labour
Structural Change — Economic Influence
a change in the nature and pattern of production of goods and services within an economy. Includes significant growth in the services sector e.g. closing of manufacturing
Globalisation — Economic Influence
Increased global competition forces employers to not only seek motivated, skilled staff but look to cut costs by reducing benefits, employing casual staff + contractors
Technological Influence
Has significant influence on HR through
Recording employee actions
Payroll
Labour in the operations process
Location of workplace
Recruitment
Job applications
Increased workplace flexibility
Social — Changing Work Patterns, Living Standards
Last 20 years seen significant growth of part-time + casual work
Result of growth in finance, retail, hospitality + community service industries
Part-time workers, including casual workers make up 30% of all workers
Many workers want part-time work as they are studying/wanting to reduce work hours before retirement
Casual employment grown from 17% in 1992 → 25% in 2016
Career Flexibility + Job mobility
Around 14-16% of employees are considered job mobile. Less than half of full-time employees have been in their job for 5 years
Creative and knowledge based fields like education, design + information technology provide flexibility in the workplace + many workers seek part-time, casual, flexible work days + work from home options
Increased participation rate for women
Rate for women rose to 62.7% November 2023 from 43% in 1978
Ageing workforce
Flexible working arrangements, including job share, part time + contracting, all critical in utilising ageing workforce, particularly women → concentrated in health, education + society and culture
Early retirement
Participation in part-time work much higher ⇒ suggesting older employees are using a gradual withdrawal approach to retirement
People are returning to work in a part time capacity following retirement for financial reasons/to relieve boredom
Living standards
Desire to improve living standards will motivate people to join workforce/if employed to achieve promotion + increase wages
Several issues with employment + standard of living
Casualisation of workforce
Increasing pressure to manage finances
A lack of work-life balances
Gender pay gap + growing income inequality
Ethics and CSR — Influence
Ethical Business Practices are practices are socially responsible, morally right, honourable + fair
Socially responsible, ethical employer recognises that
Pleasant working environment + good working conditions are valuable in motivating + retaining staff
Performance and motivation are maximised when staff feel secure, confident in their work, recognised, safe, valued and rewarded for efforts
An effective workplace benefits from good relationships + teamwork
Business depends on community support, as a source of staff and as a source of business and resources
Customers eventually find out which businesses are acting responsibly + which are not
Ethics
Ethical framework must be developed for workplace e.g. code of conduct + code of ethics
Benefits accruing from ethical practices are becoming increasing evident from research include
Staff retention + absenteeism rates improve
Business costs reduced
Significant marketing + business opportunities
Code of Conduct + code of ethics
Conduct: Statement of acceptable and unacceptable behaviours in a business
Ethics: Statement of a firm’s values and principles
Ethics + CSR Working Conditions
An ethical employer can be expected to achieve safe and fair working conditions that improve the welfare of employees achieved through
Compliance with social justice + industrial legislation
Providing safe + healthy working environment
Challenging/meaningful work
Improving communication, fostering teamwork + empowerment of staff
Providing study leave + training opportunities ⇒ improve skills
Offering flexible working hours + conditions that promote a balance between work and life
Strategic plan supported by management that incorporates specific ethical responsibilities
Establishes a code of practices for customers, employees+ suppliers
Acquisition
Process of attracting + recruiting the right staff
Acquisition involves analysing
Internal Environment: Focus on the business goals and culture
Goals + objectives
Current business performance
Corporate culture
Technology
Structure and size
Rates of turnover and promotion
Productivity levels
Budget
External Environment: Economic conditions, competition, technology and legal, political and social factors
Competition
Labour market trends
Economic trends
Labour costs — features
Changes in laws that affect HR
Changes n industrial relations practices
Once needs are determined, options may be considered — managing for a shortage/surplus of staff
Firstly, taking account of the business’ strategic plan
Forecast demand — what human resources are needed
Forecast supply — what human resources are currently available
Recruitment, — Acquisition
Process of locating + attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost
Employee Selection
Gathering information about each applicant and using that information to choose most appropriate applicant
The business can fill vacancies by recruiting staff
Internally
Externally
Outsourced to private employment aganecies
Graduate programs
Cadetships
Online career sites
Company websites
Newspapers
Government agencies
Poached/headhunted employees from competitors
Development
Process of developing and improving skills, abilities and knowledge of staff through induction, ongoing training and further professional development
Helps workers broaden capabilities to assist their career progress + helps business retain staff
Focuses on enhancing employee’s skills
Induction
Given to new recruits to prepare them for their roles — Includes:
Health and safety training
Tour of workplace + opportunity to meet colleagues
Information about values and expectations
Discussions about employment issues
Role-specific training
A well prepared induction program
Gives employees positive attitude to job and business
Builds employee’s confidence in job
Stresses safety policies + procedures
Helps establish good working relationships with co-workers + supervisors
Training
Provides work-related education which helps employees to acquire knowledge + skills needed to carry out their jobs
Key Features of an Effective Training Program
Assess needs of individual, the job, and business
Determine objectives of training program
Consider influences
Determine process of training
Evaluate program
Benefits of training
Greater productivity
Good quality products + services
More motivated staff
Lower labour turnover + absenteeism
Greater ability to deal with change
More flexibility
On the Job Training
Carried out in the workplace + related to an employee’s specific job role
3 Main methods
Observation
Coaching
Mentoring
Advantages of on-the-job training
- Cheaper
- Good transfer of learning
- Workers may feel more comfortable in familiar surroundings
- Employees still productive
- Employers have more control over training
Disadvantages of on-the-job training
- Training is provided by co-workers who may be
— unskilled providing training
— not given enough time to carry out training effectively
— pass out bad habits
Off the job training
Carried out away from the workplace
Examples:
Day courses at college
Evening classes
Events at specialist training firms
Advantages of off-the-job training
- Professional trainers and specialist training facilities are used
- No distractions from workplace
- Provides opportunity for networking
disadvantages of off-the-job training
- Can be expensive in terms of fees, transport, materials, accommodation + time out of work
- Transfer of learning back to workplace may not be high
- Training may lack relevance to trainee’s job
Organisation Development
Flatter organisational structure have been a key influence in improving efficiency + effectiveness in the workplace
Also means there is less availability for promotions for employees
Strategies to continue to motivate and retain staff
Job enlargement — increasing breadth of tasks in a job
Job rotation — multiskilling
Job enrichment — increased responsibility
Self-managed teams — teams choose own roles
Monitoring and coaching — more experienced staff lead teams support development employees
Mentoring + Coaching
Increasingly used to motivate + develop staff with leadership potential
Mentoring
Mutually agreed role, which suits experienced staff keen to transfer knowledge + skills through succession planning
More focused on building personal relationship that encompasses the life experience of both parties
Coaching
Focused on improving skills and performance, and on helping individuals manage specific work roles more effectively
Coaches may be provided by the business/may be sought by those seeking further development
Performance Appraisal
Systematic process of analysing and evaluating employee performance for strengths, weaknesses and opportunities for development
4 Main objectives of performance appraisal
Provide feedback
Act as measurement for promotions and pay rises
Helps monitor employees
Identify training and development needs of employees
Performance appraisal must be
Constructive + fair
Free of discrimination
Conducted by a trained appraiser
Maintenance
Process of managing the needs of staff for health and safety, industrial relations and legal responsibilities, including compensation and benefits, of all staff
Involves looking after staff wellbeing, safety + health, managing communications effectively + complying with industrial agreements + legal responsibilities
Staff wellbeing
involves encouraging staff to participate in decision-making and gives employees some control over their work lives
Communication + Workplace Culture
Methods of communication — regular team meetings between managers and employees; staff newsletters; seminars; surveys; email + internet
Focus on building trust + communication between people is critical in preventing conflicts
Creative firms are redesigning the layout of their offices to create spaces for people to meet together in one or two central locations
Recognition of staff achievements is critical in building positive workplace culture
Employee Participation
Used to improve communication, empower employees and drive commitment to improving quality and efficiency
The value and effectiveness of employee participation depends on the training, knowledge and skills of the employees involved
Effective participation is fostered through regular team meetings/briefing to discuss customer feedback, company trends and issues — builds a sense of shared purpose and company identity