Business Studies: HUMAN RESOURCES YEAR 12

Human Resource Management

• Manages the relationship between employers and employees so the busienss can achieve it goals.

Employer

• One who exercises control over employees

Employee

• A worker under the control of an employer

HR Management Functions

HR management has its own life cycle with four main functions involved

○ Acquisition = Involves attracting and hiring staff

↓

○ Development = Involves improving employee skills and knowledge

↓

○ Maintenance = Includes managing legal responsibilities of the business and rewarding staff for their

performance

↓

○ Separation = Employees leave the business

Effective HR mangement….. sees an employee as an …

• Sees an employee as an asset rather than a cost

The Strategic Role of HRM - assits the busines in ach

The strategic role of HR is to assist the business in achieving its overall goal of profit maximisation

How does it help businesses (3)

• Improves competitveness

• Sustainable competitive advantage

• Recongise employee as valuablke resources

Strategic Challenges of HR (3)

• Develping and retaining staff

• Managing an ageing workforce

• Analysing increased role of technology

Interdependance

• Refers to when two or more business functions rely on each other to achieve business sucess

Interdependance with other Business Functions

• Finance

• Marketing

• Operations

1 Finance

• HR needs to finance to provide it with funds so that they can pay salaries and benefits as well as training courses. HR policies affect staffing costs.

2. Markeitng

• HR needs marketing to help understand the nature of the workforce they should employ, which is highly influenced by the opinion strategies.

  Customer services and brand reputation depend on employee conduct and training.

3. Operations

HR needs operations to provide it with information about the nature, skills and number of job hires, high talent individuals

HR Managers Responsibility

• Planning and Job design

• Acquistion

• Development

• Maintencance of Staff

Outsourcing

When a business hires an external business to peform tasks or functions

Aim of Outsourcing (skill, reduc labour cos, achiev better qua.)

• Use specialised skills

• Help them achieve redution in labour costs

• Achieve better quality

Outsourcing Human Resources

Most HR tasks are done internally such as

• rewards

• desiging job roles

Other aspects in HR that might be outsources include:

• A business might use a recruitment agency to find employes

• Send employes to training

Advantages of Outsourcing (3)

• Focus on core functions, dont waste time and energy

• Can reduce costs if cheaper then in house

• Improve quality w/ specialised skills

Disadvanatges of Outsoucing (3)

• Conflict between employees and outsourced

• Loss of control

• Cost savings arent always achieved

Using Contractors

Contractor

• External workers or business hired to peform specific taks for business

Advantages of Contractor (reduc cos, skil, main goa)

• Reduce costs

• Specialised skills

• Allows employees to focus on main goals

Risks/ Disadvantages (3)

• Increased Costs

• Loss of quality

• Difficultu coordinating

Domestic Subcontracting

• Contractors that operate within the same country

• Normally for small businesses

Advantages of Domestic (2)

• Expert knowledge on local market

• Convenicnes

Global Subcontracting

• Buisness contract activities overseas

Global contractors help business develop knowledge of…

overseas market if they want to expand

Advantages

• Cheaper labour/materials as exchange rate different

• Specialised skils, and increased prodctivity

• Improved abiloty to serve diverse range of customers

Disadvantages

• Hidden costs

• Language barriers

• Different Laws

• Loss of secutity

2 main forms of Outsoucing

1. Process Outsourcing

2. Project Outosourcing

1. Process outsoucing

• Outsourcing a repetitve routine task

• Easy to emasure and follow

2. Project Outsourcing

• Larger more complex projects that require specialised knowlegd and skills

• REQUIRE EXPERTISE

Key Influences on HR Management (S, L, E, T, S, E AND CSR)

• Stakeholders

• Legal

• Economic

• Technoligical

• Social

• Ethics and Corporate Social Responsibility

Stakeholders

• Any indiviidual or a group that has a common intrest or affected by a businness

Major Stakeholders ( E, E, EA, U, GO, S)

• Employer

• Employee

• Employer Associations

• Unions

• Government Organisations

• Society

1. Employers

• Someone who exercises control over employees, is responsible for paying them and has greater authority

• Goal orientated

Role of Employer (emplo, safe and hea, deal w h, lega…)

• Provide employment opportunites for employees

• Operate a safe and healthy workplace

• Deal with HR Issues

• Legal Responsbilities

2. Employees

• Under the supervison of an employer, and peform tasks for monetary rewards

Role of Employees

• Perform work according to their job responsibilities.

• Follow workplace rules and safety procedures.

• Communication in the workforce

3. Employer Associations

• Organisationsthat represent and assist employers in broader issues

Role of Employer Associations ( repre in cou, lobb- govnt, nego agreemn)

• Represent employers in courts or tribunals when it comes to unfair dismissal or discrimination

• Lobby government with the views and interest of employees

• Assist in negotiating agreements between employers, employees and unions

Example of Employer Association (ACCI)

The Australian Chamber of Commerce and Industry

• Australia's largest employer association representing over 350,000 employers at a national and international level

4. Trade Unions

• Organisation formed by employees to represent employees on a broad range of issues

Role of Trade Unions (pay and work cond, represent in dispu, advic on lega, lob gove)

• Helps employees negotiate pay and working conditions with employers

• Represent employees in dispute

• Advice employees on legal rights and responiolities

• Lobby Government

Example of Trade Union (Australian counci. of trade uni..)

• Australian Council of Trade Union

5. Government organisation

• Organisations run by the government that creates law and policies that affect employers and employees

5 Roles of Governments (L, E, REM, adminstra of gov pol.., rep aus intera)

1. Legislator

2. Employer

3. Responsible econimic manager

4. Administrator of GOVT policies

5. Representive of Australia Internationally

1. Legislator

• Creates laws that establish rules for workplace

• Wages and working conditions

2. Employer

• Employs public sector workers sich as teachers, nurse

3. Responsible Econmic Manager

• Aim to maintain econmic growth, low inflation and high living standards

Administrator of Government Policies

• Implement and enforce laws

Rep. of Australia Internationally

• Represents Australia in the international orgination

3 types of government power (lowest- highest) (L, E, J

1. Legislaitve Power: Passed by parliment

2. Executive Power: Enforce regulations

3. Judicial Power: Courts deal with legal matters

Industrial Relations

• How employees and employers interact and deal with workplace issues

Fair Work Commison

• Australia's national workplace relations tribunal.

• It deals with workplace disputes and sets or approves certain employment conditions.

Tribunal

• Independant body that resolves disputes, similar to court

Key role to enforce Fair Work Act (2009) (3)

• Settle dispute

• Min wages and employee conditions

• Ensures fair dismissal

6. Society

• Society refers to the general public and the communities affected by a business's activities.

Roles of HR for Society

1. Compliance with employment laws

• Pay fair wages

2. Ethical practises

• Treat forehin workers fairly

3. Wellbeing of Workers

• Workplace should provide equal employment and not discriminate over certain groups

Legal Influence

The Employment Contract (defintion and role)

• A legally binding agreement between and employer and employee

• Describes the rights and responsibilities of employer and employees

Indefinite contract

• Has no set end date

Fixed term contract

• Ends on a specified date

Legal influences on Employment Contracts (CL, NES, MWR, A, EA, OTHE….)

1. Common Law

2. Mininmum Employment Standards

3. Minimum Wage rates

4. Awards

5. Enterprise Agreement

6. Other Employment Contracts

1. Common Law (definition + role)

key word: obligati…

• Law develped by judges through court descions

• Established basic obligations for both employers and employees

EMPLOYER obligations (wor, paymen of , probide rep

• Provide work

• Payment of income and expenses

• Provide an annual business report

EMPLOYER rights (bein notif, hir…)

• Being notified to agreement of an employees intention to leave

• Hire and dismiss employees

Employee Obligations

• Carry out duties to benefit the business

• Honesty and carry out fair work

• Obey reasonable and lawful commands

Employee Rights

• Being paid for time they work

• Having all pay recordded

• Access to paid/unpaid leave entitlements

2. Minimum Employment Standards

• Given to all employees regardless of Job

• 10 standards

Aim of NES + examples

• To protect employees with a minimum set of legally enforceable employment entitlements and protections.

- Max hours worked

- Annual leave

- How much redudancy pay of leave job

3. Minimum Wage Rates

• The basic wage every worker should recieve

• Employers can pay more but never less

• Reviewed regulary and generaly increases each year

4. Awards (set of legal enfor t and c, that appl to )

• A set of legally enforcable minimum terms and conditions that apply to business or industry

Awards cover:

• Pay rates

• Hours

• Breaks

• Dispute solution methods

Individual Flexibility Agreement - ONLY APPLICIBLE IN AWARDS

• An agreement between an employer and employee to vary conditions in award to suit their conditions

5. Enterprise Agreements (collecti.. agree, sets out tc of emp)

• Collective agreeement, meaning a group of employees/ employers, are made at a workplace level and sets out the Terms and Conditons of employment

• Approved by FWC

What must enterprise agreeemnet be approved by (fw…)

• FAIR WORK COMMISION

Need to past “ “ Test

BOOT test

Better of overall test

Enterpruse agreeemnts cannot contain any …. but contain a dispute sette…

UNLAWFUL terms and conditons

CONTAIN DISPUTE SETTLEMENT PROCEDURE

How are Enterprise Agreement different to award? (important)

Enterpise Agreement

- Workpalce specific

- Must pass BOOT test

- Collective Agreement

- May be negotiated

- Approved by FWC

Awards

- Conditions in a modern award are in addition to the minimum conditions in the National Employment Standards.

- Made by the Fair Work Commission

Advantage and Disadvantage of Enterprise Agreement

Advantages

• Increased productivity: Employees may be more motivated to work efficiently because they have negotiated working conditions and benefits LEADS TO = reduced staff turnover helping business save costs

Disdavantage

• Potential workplace conflict: Disagreements during negotiations can create tension between employers and employees.

3 types of Enterprise Agreement (simpl, mult, green)

1. Simple

2. Multi

3. Greenfield

Simple Enterprise Agreement

• Made between single employer and group of employees

Multi Enterprise Agreement

• 2 or more employer and a group of employees

3. Greenfield Agreement (made by empl est a new busines and no employee)

• Made by employer establishing a new business and oen trade uniton, before employees are hired

6. Other Employment contracts

• Individual common law

• Casual contract

• Part time contract

1. Individual Common Law Contract

• A personal employment contract between one employer and one employee

2. Casual Contract

• Shorter and irregular season work

• Helps employees as it reduces on costs (super, holiday, OT)

• Recieve higher rates of pay but no benefits

3. Part Time contracts

• Anything less then 38 hours is part time

• Recieve benefits sich as sick pay and holiday pay

Work Health and Safety

WHS (defintion)

• The laws and practises designed to protect the safety and welfare of people in the workplace

WHS under which ACT?

• Work Health Safety Act 2011

Employer obligation under WHS Act (3)

• Provide safe systeme of work

• Provide Workers compensation

• Maintain safe equipment

Employee obligaitons

• Take reasonable care

• Avoid dangerous behaviour

Safe Work NSW

• State government agency responsible for regulating and enforcing WHS Laws