Business Studies- HUMAN RESOURCES

year 12 HSC course, includes definitions, role, strategies, processes and influences (+examples)

what is the strategic role of human resources?

manage the total relationship between an employer and its employees in order to achieve the strategic goals of the business.

what is the definition of interdependence?

the mutual dependence that the key functions have on one another

what is outsourcing?

the use of external providers to perform non core business activities.

What is outsourcing viewed as within HR?

contracting- use of contractors

what are examples of HR processes that are often outsourced?

• Recruitment

• Payroll

• Mediation

• Outplacement

• Induction & Training

• Leadership Training

what are advantages of outsourcing?

improved HR quality & legal compliance, more flexibility and allows business to focus resources on main activities

what are disadvantages of outsourcing?

loss of full control, increased dependency on external firm and secuirty issues

what is a contractor?

an external provider of services to a business

what is one advantage & one disadvantage of using global contractors? (versus domestic)

+ allow for 24hr work

- cultural, language or time zone differences

what is the HR process also called?

The HR Cycle

what does ADMS stand for?

Acquisition, Development, Maintenance & Seperation

what does Acqusition involve? (HR process)

identifying staffing needs, recruitment, selection and placement. 

what does Development involve? (HR process)

improving employees skills and abilities

what does Maintenance involve? (HR process)

retain staff and manage their wellbeing at work

what does Seperation involve? (HR process)

when an employee leaves the business

what are the two types of Seperation?

voluntary & involuntary

what are different types of VOLUNTARY Seperation?

retirement, resignation, voluntary redundancy

what are different types of INVOLUNTARY Seperation?

contract expiry, dismissal, summary dismissal & involuntary redundancy

what is the acronym for the effectiveness indicators?

CAB CLAW

what does each letter in CAB CLAW stand for? (effectiveness indicators)

Corporate Culture, Accidents, Benchmarking Key Variables, Changes in Staff Turnover, Levels of Disputation, Absenteeism & Worker Satisfaction

what does leadership style refer to?

the ways that managers communicate with their employees to inspire and motivate them to work together to achieve an organisation’s goals

what is leadership style most relevant to in the HR process?

maintenance

what are the three types of leadership styles?

autocratic, democratic and laissez-faire

what is an autocratic leadership style?

where an individual makes decisions without significant input from subordinates

what is a democratic leadership style?

more consultative approach between managers & workers that encourages them to be more involved in the decision-making process.

what is job design?

the number, kind and variety of tasks that a worker is expected to carry out in the course of performing their job

what are the two main parts of job design & what do they involve?

• general tasks: greater variety of tasks, more general & less specific

• specific tasks: specific particular job to be done with documentation

what are the three additional components of job design & what do they involve?

• job rotation: employees switch from one job to another. 

• job enlargement: employees are given more things to do within the same job. 

• job enrichment: employees are given more control and independence

what is recruitement?

attracting the right quantity & quality of candidates to job vacancies, in a cost efficient way

what four components does recruitement include?

• Internal: recruitment within business

• External: recruitment outside business

AND 

• General Skills: transferable attributes that apply to a broad range of roles

• Specific Skills: technical skills required for the role

what is training & development?

• Training aims to develop employee skills, knowledge and attitudes, improves current overall job performance

• Development aims to enhance employee skills to align with future needs of the, improves preparation for future roles

what are three reasons why HR should use training & development as a strategy?

• Supports worker satisfaction

• Reduces staff turnover, improving business culture

• Improves business’s sustained competitiveness (retaining experience & knowledge)

what are the two types of performance management?

developmental or administrative

what are the three stages of performance management?

1. Planning: goal setting

2. Checking In: feedback/assistance to meet goals

3. Assessment: employee performance against goals

what is developmental performance management?

using data to develop the individual skills and abilities of employees, so they improve their effectiveness in their roles

what is administrative performance management?

uses information to support decisions and processes within Human Resource Management (HRM). These include rewards, transfers or separations

what are rewards as a human resources strategy?

both monetary & non-monetary benefits employees receive in return for their work

why should human resources consider rewards?

rewards are key strategy to attract, motivate & retain workers

what are monetary rewards?

rewards which are reflected in pay or having clear financial value (extrinsic motivation)

what are non-monetary rewards?

rewards with no clear financial value (intrinsic motivation) 

what are examples of monetary rewards?

wages, bonuses, allowances & superannuation

what are examples of non-monetary rewards?

meaningful work, job security & flexible working hours

what are individual rewards?

approach where the employee earns the reward based on their own personal performance

what is one disadvantage and one advantage of individual rewards?

AD: Motivator for high performance, retains best performers

DIS: Increases rivalry and conflict, leading to lack of teamwork

what are group rewards?

approach where the employee earns the reward based on the performance of the group/team

what is one disadvantage and one advantage of group rewards?

AD: Fosters collaboration, supports team based culture

DIS: May not adequately reward individual top performers

what is performance pay, as part of rewards?

process of linking part of an employee's income to their performance at work, when they equal or exceed predetermined goals or criteria

what are examples of performance pay?

bonuses, profit sharing & commission 

what are workplace disputes?

conflicts or disagreements between individuals and/or groups (stakeholders) in the workplace

what are two examples of industrial action (workplace disputes strategy)?

Strike: employees refuse to attend or perform work.

Work Ban: employees stop performing specific tasks in protest.

what are five dispute resultion strategies?

grievance procedures, negotiation, mediation, concillation & arbitration

what are grievance procedures? (dispute resolution strategies)

formal procedures, generally written into an award or agreement, that state agreed processes to resolve disputes in the workplace

what is negotiation? (dispute resolution strategies)

where discussions between the parties result in a compromise and a formal or informal agreement

what is mediation? (dispute resolution strategies)

confidential discussion of issues in a non-threatening environment, in the presence of a neutral, objective third party

what is concillation? (dispute resolution strategies)

where a third party (conciliator) is involved in helping two other parties reach an agreement. This is similar to mediation, except the conciliator is a specialist

what is arbitration? (dispute resolution strategy)

where a third party hears both sides of a dispute and makes a legally binding decision to resolve the dispute

what is the role of the Fair Work Commission (FWC) in resolving disputes?

FWC (Australia’s workplace tribunal) assists with mediation, conciliation & arbitration

who are stakeholders? (influence)

any individual or group that have a common interest in or are affected by the actions of an organisation.

what are examples of stakeholders?

employers, employees, employer associations, unions, government assosciations & society

what are the objectives of employers?

• increased profit

• minimising costs

• expanding business

what are the objectives of employees?

• better pay and working conditions

• meaningful work

• job security 

• career progression and training/development

what is the role of employer associations?

to represent/support employers, provide advice and advocate for employer interests in policy-making and negotiations with unions and government bodies

what is the main role of unions?

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

what are the roles of government organisations?

• Role as employer - employes significant amount of people

• Role as economic manager - control economic conditions

• Role as legislator - legal framework for employment conditions

• Role as policy administrator - implement policies 

what are the four bodies government organisations administer policies through?

• Fair Work Commission

• Fair Work Ombudsman

• Federal Court of Australia

• State Governments

what is the current legal framework businesses’ must comply with?

Fair Work Act 2009 - Fair Work System

what is common law?

laws made in court when judges make a decision in a case, which then establishes a precedent

what is statute law?

acts made in parliament which are first introduced as bills

what are some legal rights of employees, under common law?

recieve payment of wages & work in a reasonably safe environment

what are some legal obligations of employees, under common law?

do duties with reasonable care, skill & good faith, & obey reasonable commands by employer

what are some legal rights of employers, under common law?

employees working under them with care/responsibility & employees being accountable for money/resources in their care

what are some legal obligations of employers, under common law?

pay employees wages in contract & excise duty of care toward employees

what are some examples of NES? (National Employment Standards)

• Maximum weekly hours

• Requests for flexible working arrangements

• Annual, sick, parental & long service leave (different types)

• Public holidays

what are modern awards?

set pay & conditions for a specific industry or occupation with 100+ which apply additional to the NES

how do modern awards influence HR?

HR must know which awards apply to which staff & ensure entitlements are properly attended to.

what are enterprise agreements?

Collective agreements made at a workplace level between an employer & employees about terms and conditions of employment.

how do enterprise agreements influence HR?

HR can offer opportunities to negotiate with workers, to increase worker satisfaction & decrease levels of disputation.

what are other employment contracts?

any other employer & individual employee negiation contracts, which are more common in the private sector at a professional/managerial level

What is Work Health & Safety (WHS)?

federal & state laws as part of the Work Health & Safety Act (2011) to protect employees, employers & the self-employed

What does Worker’s Compensation include?

• that employers must have licensed insurance

• that they keep time & wage records

• have established injury management & return-to-work plans

• pass on eligible compensation funds to injured employee

what are anti-discrimination laws for?

to protect employees from direct and indirect discrimination.

what are examples of anti-discrimination laws?

- Age Discrimination Act (2004)

- Disability Discrimination Act (1992) 

- Racial Discrimination Act (1975)

- Sex Discrimination Act (1984) 

what does equal employment opportunity refer to?

equitable policies and practices in all parts of HR to achieve gender equality in workplaces

what can HR do to maximise their Equal Employment Opportunities?

• provide equal pay/conditions for women & men completing equal or similar roles. 

• remove barriers for full participation of women in the workforce

• facilitate access to all jobs including leadership roles

what does economic influence refer to?

how changes in the size of an economy have a major impact on the demand for labour and the pressure on wage growth, which is part of HR’s processes

what is structural change, as part of economic influences?

change in the nature & pattern of production of goods and services

what does globalisation refer to, as part of economic influences?

the removal of trade barriers between nations

how has globalisation impacted HR?

• atttract & retain motivated staff

• restructure workforces (outsourcing & contractors)

• reducing costs effectively to compete better

what does technology (influence) refer to?

changes in the technology available

how is acquisition impacted by technology?

recruitement of staff easier/faster through internet

how is development impacted by technology?

training & development can be delivered online

how is maintenance impacted by technology?

increased employee self-service & flexible working arrangements (both rewards)

how is seperation impacted by technology?

technology replaces labour = increased seperations

what does social influence refer to?

changes in society which impact HR

what are the two sub-catergories under social influences?

changing work patterns & living standards

what are four changing work patterns (social influence)?

• Increased participation rates for women & over 55’s

• Shift to part-time work (casualisation)

• Ageing of the workforce

• Working from home

how does living standards (social influence) impact HR?

employers must align their businesses with living standards, ensuring they are not undermined or reduced

what is CSR (influence)?

acting ethically through practices which go above and beyond legal compliance

what are characteristics of ethical business practices?

• socially responsible

• morally right

• honourable

• fair

what are benefits of CSR?

• Mitigate negative publicity & declining corporate culture

• Reduced costs

• Enhanced reputation

• Attracting/retaining talent

• Improved performance