Human Resources In-Depth

Role of Human Resources

Human resource management is about efficiently managing people to meet business goals; it focuses on acquiring, developing, maintaining, and separating staff to maximise productivity.

Strategic Role of HR

Ensures employees are effective and efficient so business productivity reaches its potential; aims to develop an environment where employees can successfully carry out tasks.

Interdependence of HR and Operations

HR plans, recruits, and trains staff to meet production needs; operations rely on HR for skilled labour and motivation to ensure quality output.

Interdependence of HR and Marketing

HR provides skilled sales and customer service staff to implement marketing objectives; marketing success depends on motivated personnel.

Interdependence of HR and Finance

Finance funds HR activities (training, remuneration); HR ensures staff productivity aligns with financial goals.

Outsourcing in HR

Use of external specialists to perform HR functions such as recruitment, training, payroll, and IT to reduce costs and access expertise.

Domestic vs Global Outsourcing

Domestic outsourcing uses local agencies; global outsourcing uses overseas providers (e.g. payroll, call centres) for cost efficiency but increases risk of cultural and data issues.

Contractors

External providers hired for specific tasks; not employees and cover their own costs (superannuation, leave, insurance); provide flexibility and expertise.

Benefits of Contractors

No on-costs, high skill specialisation, paid only for completed tasks, no redundancy costs.

Risks of Global Outsourcing

Cultural and language issues, security concerns, quality control risks, potential skill dilution.

Stakeholders in HR

Employers, employees, employer associations, unions, government organisations, and society—all influence HR policies and outcomes.

Employers

Individuals or organisations that hire labour; must comply with WHS laws, provide guidance, and motivate employees.

Employees

Individuals performing tasks under contract; rights and responsibilities defined by employment terms; poor HR leads to low productivity and high turnover.

Employer Associations

Groups that represent employers collectively, assist with negotiations, policy advice, dispute resolution, and legal compliance (e.g. ACCI, BCA).

Unions

Organisations representing employees; advocate for better wages, conditions, and rights using collective bargaining and industrial action.

Government Organisations

Set the legal framework for employment (Fair Work Act), resolve disputes, determine minimum conditions, and act as a major employer.

Society and HR

Societal values influence workplace standards; poor HR affects workers' families and community perceptions; public opinion can drive law reform.

Technological Influences on HR

Technology changes job design, recruitment, and monitoring; enables flexible work (remote, hybrid) and automates HR processes.

Economic Influences on HR

Economic conditions affect labour demand, wage levels, and bargaining power; booms tighten labour markets, recessions increase unemployment.

Ethics and Social Responsibility in HR

Ethical HR management values fairness, safety, and equity; socially responsible businesses attract motivated employees and community support.

Legal Framework of HR

Employment relationships are governed by laws and regulations that define minimum standards and restrict employer decision-making.

Employment Contract

Legal agreement between employer and employee defining wages, hours, leave, and conditions; can be written or verbal.

Common Law

Developed through court decisions; covers rights and obligations not explicitly stated in statute law.

Employer Rights and Obligations

Must pay agreed wages, provide safe work conditions, not damage reputation, and offer agreed work per contract.

Employee Rights and Obligations

Must follow lawful instructions, act in employer's interest, perform with care, and disclose relevant information.

Fair Work Legislation

Fair Work Commission resolves disputes, sets minimum wages, reviews unfair dismissal claims, and applies the Better Off Overall Test (BOOT).

National Employment Standards (NES)

Eleven minimum entitlements (hours, leave, termination notice) applying to all employees; cannot be reduced by contracts or agreements.

Minimum Wage

Government-set lowest legal pay; ensures social inclusion; employers cannot pay less; in 2023: $23.20/hr or $882.80/week.

Awards

Industry-specific minimum wages and conditions set by Fair Work; contracts cannot undercut awards.

Enterprise Agreements

Workplace-level collective agreements above award conditions; must pass BOOT and include dispute-resolution clauses.

Individual Employment Contracts

Negotiated between employer and employee; flexible and tailored but must comply with law and NES.

Part-Time Employment

Permanent staff working under 38 hours/week with pro-rata access to leave and superannuation.

Casual Employment

Short-term or irregular work; no leave entitlements but receive 20-25 % pay loading for flexibility and insecurity.

Independent Contractors

Self-employed workers providing services to clients; manage own tax, insurance, and super; not entitled to employee benefits.

Work Health and Safety (WHS)

Employers have legal duty of care to provide safe conditions under WHS Act 2012; failure risks fines or closure.

Workers Compensation

Compulsory insurance covering workplace injuries; includes treatment, income support, and return-to-work plans.

Anti-Discrimination Laws

Prohibit discrimination on basis of gender, race, age, religion, etc.; ensures fairness and diversity in hiring and promotion.

Equal Employment Opportunity (EEO)

Providing equal job access and eliminating workplace discrimination; may include affirmative action to redress imbalances.

Social Influences on HR

Changing attitudes toward work and flexibility, ageing workforce, cultural diversity, and higher female participation shape HR policies.

Changing Work Patterns

Growth of part-time and casual work due to service economy; driven by flexibility and work-life balance priorities.

Casualisation of Work

Shift from permanent to casual employment; benefits employers with flexibility but reduces job security for workers.

Career Flexibility and Job Mobility

Increase in job-sharing, freelancing, and consulting; workers seek autonomy and varied career paths.

Ageing Workforce

Rising average worker age leads to potential skill shortages; businesses retain older staff through flexible arrangements.

Cultural Diversity

Employing people from varied cultural backgrounds enhances innovation, creativity, and communication.

Female Workforce Participation

Increased participation due to education, childcare access, and flexibility; female rate now 61 %, above OECD average.

Working from Home

Accelerated by COVID-19; 67 % sometimes or always work remotely; improves flexibility but can blur work-life boundaries.

Responding to Social Trends

Flexible work options, upskilling, anti-discrimination, WHS programs, and family-friendly policies maintain workforce engagement.

HR Process Overview

The HR cycle involves acquisition, development, maintenance, and separation to manage employees throughout employment.

Acquisition

Process of attracting and selecting suitable staff through identifying needs, recruitment, and selection.

Identifying Staffing Needs

Analyse job description (duties) and specification (skills, qualifications) to determine staffing requirements.

Recruitment

Attracting candidates internally or externally via ads, agencies, or referrals; internal promotion motivates staff, external adds new talent.

Selection

Assessing applicants using interviews, tests, and reference checks to choose the best fit; aims to reduce bias and costs.

Development

Training employees to improve performance and prepare for future roles; enhances flexibility, motivation, and retention.

Training Methods

Induction (orientation), on-the-job (coaching, rotation), off-the-job (courses, seminars), mentoring and job enrichment.

Maintenance

Maintaining motivation, morale, and commitment through remuneration, conditions, and work-life balance.

Monetary Rewards

Wages, salaries, bonuses, commissions, shares, and fringe benefits.

Non-Monetary Rewards

Recognition, flexible hours, autonomy, meaningful work, and workplace culture benefits.

Separation

Ending employment relationship through voluntary or involuntary means.

Voluntary Separation

Employee initiates departure via resignation, retirement, or voluntary redundancy.

Involuntary Separation

Employer terminates employment due to redundancy, retrenchment, or dismissal.

Redundancy

Job is no longer required due to restructure or technology; employees receive severance payments per legislation.

Retrenchment

Job losses from decreased demand or downsizing; may rehire later.

Dismissal

Termination for misconduct or poor performance; may be summary (instant) or after warnings.

Leadership Style

Manager's approach to decision-making and employee interaction; affects motivation and communication.

Autocratic Leadership

Manager makes decisions unilaterally; best for emergencies or inexperienced teams; one-way communication.

Democratic Leadership

Manager consults staff in decisions; encourages motivation, ownership, and teamwork; uses two-way communication.

Job Design

Creating roles that align with business goals and employee motivation through enrichment, variety, and flexibility.

Recruitment Strategies

Attracting candidates using internal or external sources depending on cost, culture fit, and skill needs.

General Skills (Soft Skills)

Flexibility, teamwork, communication, motivation—valuable across all jobs and emphasised in modern recruitment.

Specific Skills (Hard Skills)

Technical or professional expertise required for specialised roles (e.g. coding, engineering).

Training and Development

Improves employee efficiency, adaptability, and competitiveness; may be internal or external.

Induction

Introduces new staff to company culture, policies, and safety procedures for smooth integration.

Current vs Future Skills

Training for current roles increases productivity now; future skills prepare for promotion or innovation.

Performance Management

Ongoing evaluation of employee performance to align with business goals and personal development.

Developmental PM

Focused on improving individual performance and skills through feedback and support.

Administrative PM

Used for appraisal, promotion, and reward decisions across the organisation.

Rewards Systems

Programs linking pay and benefits to performance to attract, retain, and motivate employees.

Monetary Rewards

Bonuses, commissions, profit sharing, overtime pay, or performance-linked salary increases.

Non-Monetary Rewards

Job satisfaction, responsibility, recognition, career progression, or flexible work conditions.

Individual Performance Pay

Employees earn income based on results achieved; can motivate but may cause inequity or stress.

Group Performance Pay

Rewards teams for collective outcomes like productivity or cost savings; promotes cooperation but may create conflict.

Global HR - Costs, Skills, Supply

Globalisation allows access to international labour; decisions depend on wage costs, skill availability, and labour supply.

Polycentric Staffing

Uses host-country nationals for local operations; cost-effective and culturally appropriate.

Ethnocentric Staffing

Uses parent-country nationals to maintain control but may reduce local responsiveness.

Geocentric Staffing

Employs best-qualified people globally; maximises talent but expensive due to relocation/training.

Workplace Disputes

Conflicts between employers and employees over pay, conditions, or job security; can disrupt operations.

Employee Causes of Disputes

Demands for higher pay, better conditions, and job security; opposition to outsourcing or redundancies.

Management Causes of Disputes

Attempts to increase productivity, restructure, or cut costs may reduce employee benefits or hours.

Industrial Action

Visible actions like strikes, lockouts, and pickets; or covert actions like work-to-rule; affect productivity.

Strike

Employees withdraw labour to pressure employer; must be approved by Fair Work to be lawful.

Lockout

Employer denies staff access to workplace to pressure settlement during dispute.

Work-to-Rule

Employees perform only minimal required duties, reducing efficiency without stopping work.

Dispute Consequences

High absenteeism, low morale, reduced productivity, increased costs, and poor HR effectiveness.

Dispute Resolution - Negotiation

First step; direct discussion between parties to reach compromise quickly and cheaply.

Mediation

Independent third party assists in voluntary, confidential discussions; not legally binding.

Conciliation

Formal mediation through Fair Work Commission; parties must attend; outcome not legally binding.

Arbitration

Final, legally binding resolution by Fair Work Commission or court; most formal and costly stage.

Grievance Procedures

Written processes in awards or agreements outlining steps to resolve disputes fairly and consistently.

Effective Dispute Management

Requires clear communication, early negotiation, and trained managers to identify and resolve issues quickly.

Effectiveness Indicators (BC LAAWS)

Benchmarking, Corporate Culture, Level of Disputation, Absenteeism, Accidents, Worker Satisfaction, Staff Turnover.