Unit 3 Aos 2 Business Management

Human resource management

The management of the overall relationship between an employer and its employees, focusing on acquiring, developing, maintaining, and terminating staff to achieve business objectives.

Business objectives

The stated goals a business aims to achieve in a set timeframe, such as making a profit, increasing market share, or fulfilling a market/social need.

Efficiency

How well a business uses its resources to achieve its objectives by minimizing waste, reducing time, or lowering costs.

Effectiveness

The degree to which a business achieves its stated objectives and produces desired outcomes.

Maslow's Hierarchy of Needs

A motivation theory proposing that employees are motivated by five sequential levels of needs: physiological, safety, social, esteem, and self-actualisation.

Locke and Latham's Goal-Setting Theory

A motivation theory stating that setting clear, challenging goals and receiving feedback motivates employees and improves task performance.

Lawrence and Nohria's Four-Drive Theory

A motivation theory identifying four basic human drives that dictate behavior: the drive to acquire, bond, comprehend, and defend.

Performance-related pay

A financial motivation strategy where an employee's remuneration is tied directly to their performance against set standards or KPIs (e.g., bonuses, commissions).

Career advancement

A non-financial motivation strategy where employees are promoted to higher-level positions with increased responsibility, status, and remuneration.

Investment in training

A non-financial motivation strategy where a business pays for employees to gain new skills and knowledge to perform their jobs better.

Support

A non-financial motivation strategy involving practical or emotional assistance provided by the business to help employees overcome work-related issues.

Sanction

A non-financial motivation strategy using penalties or discipline imposed on an employee for poor performance or undesirable behavior.

Training

The process of developing and improving an employee's skills, knowledge, attitudes, and behaviors to allow them to perform their job more efficiently and effectively.

On-the-job training

Employees improving their knowledge and skills within the workplace while performing their actual job tasks.

Off-the-job training

Employees improving their knowledge and skills in a location external to the business, usually led by professional instructors.

Coaching

An on-the-job training method where an existing employee teaches a staff member how to perform a specific role.

Mentoring

An on-the-job training method where a senior staff member provides support, guidance, and advice to a less experienced employee.

Job rotation

An on-the-job training method where an employee completes roles in different functional departments to gain an understanding of how they interconnect.

Job shadowing

An on-the-job training method where an employee follows and observes a more experienced staff member carrying out their role.

Performance management

An assessment of an employee's present work performance, and how this can be directed in the future to achieve both business and employee objectives.

Management by objectives (MBO)

A performance management strategy that aims to improve business performance by clearly defining objectives that are agreed upon by both management and employees.

Performance appraisal

A method by which the job performance of an employee is documented and evaluated against pre-determined standards.

Self-evaluation

A performance management strategy where an employee reflects on their own performance using a set of criteria, often prior to a review meeting with their manager.

Employee observation

A performance management strategy where an employee is monitored and assessed against a range of criteria by other employees, managers, or external observers.

Resignation

The voluntary termination of employment where an employee chooses to leave the business, usually to take up employment elsewhere.

Retirement

The voluntary termination of employment where an employee decides to permanently leave the workforce.

Redundancy

The termination of employment when a specific job position is no longer required by the business due to restructuring or technological changes.

Dismissal

The involuntary termination of employment initiated by the employer due to poor performance or misconduct.

Entitlements

Legal obligations an employer must fulfill when an employee leaves the business, such as paying out unused annual leave and long-service leave.

Transition assistance

Support services provided by an employer to help departing employees transition out of the business or workforce (e.g., career counseling or outplacement services).

Workplace relations

The relationship and communication between employees and employers regarding pay, working conditions, and safety.

Fair Work Commission

Australia's national workplace relations tribunal that sets minimum wages, approves enterprise agreements, and resolves industrial disputes.

Unions

Organizations that represent and advocate for employees' rights, wages, and working conditions in the workplace.

Employer associations

Organizations that represent and assist employers with workplace relations, legal advice, and industry updates.

Award

A legally binding document set by the FWC that outlines the minimum terms and conditions of employment for an entire industry.

Enterprise agreement

A negotiated agreement between an employer and a group of employees specifying pay and working conditions for a specific business.

Individual employment contract

A legal agreement signed between an individual employee and employer detailing specific pay and conditions above the minimum award standard.

Grievance procedure

A formal, step-by-step process outlining how disputes between employees and employers will be handled within the business.

Mediation

A dispute resolution process where an independent third party facilitates discussion to help conflicting parties reach their own mutually agreeable solution.

Arbitration

A formal dispute resolution process where an independent third party listens to both sides and makes a legally binding decision.