u3 aos 2 busmam HR, motivation strats, training, prefromance, awards

What is Human Resource Management (HRM)?

• involves effectively managing the relationship between employees and the business to ensure business objectives are met.

• It encompasses all activities related to employees, including:

  • Recruitment and selection

  • Training and development

  • Motivation

  • Performance Management

  • Termination

Business Objectives Drive HRM:

The overall business objectives of a business will determine the objectives and strategies adopted by human resources.

HRM Drives Achievement of Business Objectives:

• Staff are who achieve the business’s objectives and human resource strategies help ensure objectives are achieved.

• Example:

  • Business Objective: Increase market share by 10%

  • HRM Strategy: Implement a sales training program to improve employee skills and performance.

  • Outcome: Increased sales, contributing to increased market share.

The Role of the Human Resource Manager

• Plays a key role in determining business objectives, along with other senior managers.

• Ensures that HRM strategies align with the objectives and strategies of the entire business.

• Responsible for all aspects of staffing, including recruitment, training, performance management, and workplace relations.

Measuring HRM Effectiveness - Employee Turnover Rate

A high turnover rate may indicate problems with employee satisfaction or management practices.

Measuring HRM Effectiveness - Absenteeism Rate:

High absenteeism can be a sign of employee disengagement or health and safety issues.

Measuring HRM Effectiveness - Employee Satisfaction Surveys:

Provide valuable feedback on employee morale and identify areas for improvement.

Measuring HRM Effectiveness - Productivity Metrics

Measure the output and efficiency of employees to assess the impact of HRM strategies.

Measuring HRM Effectiveness - Training ROI:

Calculating the return on investment (ROI) of training programs helps to determine their effectiveness.

Benefits of Effective HRM

• Increased productivity

• Improved employee morale

• Reduced turnover

• Better customer service

• Enhanced innovation

• Stronger financial performance

Theories of Motivation - Maslow Hierarchy of Needs - define

A motivational theory comprising a five-tier model of human needs. Maslow stated that individuals must satisfy lower-level needs before progressing on to meet higher needs.

Theories of Motivation - Maslow Hierarchy of Needs - 5 needs pyramid

• Physiological: Providing adequate wages, comfortable working conditions.

• Safety: Job security, safe working environment, superannuation.

• Social: Teamwork, social events, supportive management.

• Esteem: Recognition, promotions, challenging projects.

• Self-Actualization: Opportunities for creativity, autonomy, and personal growth.

DIS/AD of Maslows needs

Advantages

• Easy to understand and apply.

• Addresses a wide range of employee needs.

Disadvantages

• Assumes a rigid hierarchy, which may not be true for all individuals.

• Difficult to accurately assess where each employee is on the hierarchy.

• Individual needs may vary based on culture and personal circumstances.

Theories of Motivation - Locke and Latham Goal Setting Theory - define

specific and challenging goals, combined with appropriate feedback, contribute to higher task performance.

Theories of Motivation - Locke and Latham Goal Setting Theory - five principles

• Setting SMART Goals: Specific, Measurable, Achievable, Relevant, Time-bound.

• Employee Involvement: Involve employees in the goal-setting process.

• Regular Feedback: Provide frequent and constructive feedback.

• Recognition and Rewards: Recognize and reward goal achievement.

DIS/AD of Locke and Latham Goal Setting Theory

Advantages

• Focuses on tangible targets, leading to improved performance.

• Encourages employee involvement and commitment.

• Relatively easy to implement.

Disadvantages

• Overemphasis on goals may lead to unethical behavior or neglect of other important tasks.

• Can be demotivating if goals are perceived as unattainable.

• May not be suitable for all types of jobs or individuals.

Theories of Motivation - Lawrence and Nohria Four Drive Theory - define

identifies four basic human drives that underlie all human behaviour and motivation.

• drive to acquire, bond, learn and defend

Theories of Motivation - Lawrence and Nohria Four Drive Theory - 4 drives

• Drive to Acquire: Performance-related pay, bonuses, promotions, recognition.

• Drive to Bond: Teamwork, social events, mentoring programs, collaborative projects.

• Drive to Learn: Training opportunities, challenging assignments, career development programs.

• Drive to Defend: Fair treatment, transparent decision-making, grievance procedures, supportive management.

DIS/AD Lawrence and Nohria Four Drive Theory

Advantages

• Addresses a wide range of motivational factors.

• Provides a holistic view of employee motivation.

Disadvantages

• Can be complex to implement effectively.

• Requires a deep understanding of individual employee needs.

• Balancing all four drives can be challenging.

Motivation Strategy - Performance-Related Pay

Employees receive financial rewards based on their performance, measured against pre-defined standards.

• Advantages:

  • Directly links performance to reward, providing a clear incentive.

  • Can improve productivity and engagement.

  • Rewards are generally predictable and easily calculated.

• Disadvantages:

  • May lead to jealousy and lower morale among employees who don’t receive the reward.

  • The business may not be able to afford it.

  • If the value of the rewards is not maintained or increased each year, it may lead to employee dissatisfaction.

Motivation Strategy - Career Advancement

Providing opportunities for employees to progress in their careers through promotions, new roles, or increased responsibilities.

• Advantages:

  • Motivates employees seeking achievement and responsibility.

  • Can improve employee retention by providing a clear career path.

  • Utilises existing talent within the organisation.

• Disadvantages:

  • Opportunities may be limited, leading to disappointment for some employees.

  • Promoting an employee beyond their capabilities can be detrimental.

  • Can create internal competition and resentment.

Motivation Strategy - . Investment in Training

Allocating resources (time, money, personnel) to improve employees’ skills and knowledge.

• Advantages:

  • Enhances employees’ skills and confidence.

  • Improves productivity and quality of work.

  • Demonstrates the business values employee development.

• Disadvantages:

  • Can be costly.

  • Employees may leave the business after receiving training.

  • Training may be ineffective if systems, facilities, or job design are poor.

Motivation Strategy - Support Strategies

Providing employees with assistance, resources, and a positive work environment to help them succeed.

• Advantages:

  • Improves employee well-being and morale.

  • Reduces stress and burnout.

  • Encourages open communication and collaboration.

• Disadvantages:

  • Can be time-consuming and require significant management commitment.

  • May not address underlying issues causing poor performance.

  • Some employees may be reluctant to seek support.

Motivation Strategy - Sanction Strategies

Using penalties or disciplinary actions to address poor performance or unacceptable behaviour.

• Advantages:

  • Can deter negative behaviour and improve compliance.

  • Sends a clear message that poor performance is not tolerated.

  • May motivate some employees to improve.

• Disadvantages:

  • Can damage employee morale and create a negative work environment.

  • May lead to resentment and decreased productivity.

  • Can be time-consuming and require legal compliance.

On-the-Job Training

learning new skills and knowledge within the workplace while performing the actual job.

• coaching

• mentoring

• job rotation

• apprenticeships

• demonstrations

Advantages of On-the-Job Training

• Cost-effective: Generally less expensive than off-the-job training as it utilizes existing resources.

• Practical: Directly relevant to the job, allowing for immediate application of skills.

• Familiar Environment: Employees learn in a comfortable and familiar setting.

• Specific Skills: Develops skills tailored to the specific needs of the business.

• Productivity: Employees are productive while learning, contributing to output.

Disadvantages of On-the-Job Training

• Quality of Trainer: The skills and abilities of the trainer may vary, potentially leading to inconsistent training.

• Bad Habits: Poor work practices or bad habits of older staff may be passed on to trainees.

• Disruptions: Training can disrupt workflow and productivity if not managed effectively.

• Lack of Structure: May lack a structured and formal approach to learning.

• Safety Risks: Potential safety risks if training is not conducted properly, especially with machinery.

Off-the-Job Training

learning new skills and knowledge away from the workplace, often at external institutions.

• conferences

• lectures

• simulations

• TAFE/uni

• Online courses

Advantages of Off-the-Job Training

• Wider Range of Skills: Access to a broader range of skills and qualifications than available in-house.

• Expert Trainers: Training is delivered by qualified professionals and specialists.

• Structured Learning: More structured and organized learning environment with clear assessment processes.

• Formal Qualifications: Can lead to formally recognized qualifications, enhancing employee value.

• Reduced Workplace Distractions: Learning occurs away from workplace distractions, allowing for focused attention.

Disadvantages of Off-the-Job Training

• Cost: More expensive than on-the-job training due to fees, travel, and accommodation costs.

• Lost Working Time: Employees are absent from the workplace, leading to lost productivity.

• Transfer of Skills: Difficulty in transferring theoretical knowledge to practical workplace applications.

• Relevance: May not directly relate to the exact skills required in the workplace.

• Potential Turnover: Employees with new qualifications may be tempted to leave for better opportunities.

The Importance of Training

• Increased Productivity: Skilled employees are more efficient and productive.

• Improved Quality: Training reduces errors and improves the quality of products or services.

• Reduced Accidents: Proper training enhances safety awareness and reduces workplace accidents.

• Higher Morale: Employees feel valued and motivated when they receive training.

• Better Customer Service: Trained employees are better equipped to handle customer inquiries and complaints.

• Adaptability: Training helps employees adapt to new technologies and changing business environments.

• Staff Retention: Employees are more likely to stay with a business that invests in their development.

Performance Management Strategies - Management by Objectives (MBO)

A process where managers and employees jointly identify, plan, organize, and communicate objectives to focus on during a specific period.

1. Setting Objectives: Managers and employees collaborate to define clear, measurable, achievable, relevant, and time-bound (SMART) objectives.

2. Action Planning: Develop a plan outlining the steps required to achieve the objectives.

3. Implementation: Employees work towards achieving their objectives.

4. Monitoring and Feedback: Regular check-ins to track progress and provide feedback.

5. Performance Appraisal: Evaluate performance against the set objectives.

Performance Management Strategies - Performance Appraisals

A formal assessment of how efficiently and effectively an employee is performing their role in the business.

• Process:

  1. Setting Expectations: Discussing the standards of performance required by the employee.

  2. Regular Reviews: Conducting periodic meetings between the employee and manager to discuss performance.

  3. Feedback: Providing constructive feedback on strengths and areas for improvement.

  4. Documentation: Recording the appraisal results and any agreed-upon action plans.

Performance Management Strategies - Self-Evaluation

A process where employees assess their own performance against predetermined criteria.

• Process:

  1. Self-Assessment: Employees complete a self-assessment form, rating their performance and providing examples.

  2. Reflection: Employees reflect on their strengths, weaknesses, and areas for improvement.

  3. Discussion: Employees discuss their self-evaluation with their manager.

  4. Action Planning: Develop an action plan to address areas for improvement.

Performance Management Strategies - Employee Observation

Monitoring and evaluating employee performance through direct observation of their work.

Methods:

• Direct Observation: Managers observe employees performing their job tasks.

• Customer Feedback: Gathering feedback from customers about their experiences with employees.

• Mystery Shoppers: Using trained observers to evaluate employee performance in customer service roles.

Types of performance Appraisal Methods:

• Essay Method: Manager writes a narrative assessment of the employee’s performance.

• Critical Incident Method: Recording specific examples of effective and ineffective behavior.

• Graphic Rating Scale: Rating employees on a range of performance dimensions using a numerical scale.

• 360-Degree Feedback: Gathering feedback from multiple sources (supervisors, peers, subordinates, customers).

Termination of employment is when..

An employee leaves a business, ending the employment relationship. It can be either voluntary or involuntary. The HR manager usually manages this process, ensuring fairness and legal compliance.

2 types of Voluntary Termination:

• Retirement: Employee permanently leaves the workforce.

• Resignation: Employee leaves to work elsewhere.

2 types of Involuntary Termination:

• Redundancy: Employee’s job no longer exists or there is insufficient work.

• Dismissal: Employer terminates employee against their will.

vol term - Retirement

• Involves an employee leaving the workforce permanently.

• Often involves superannuation and long service leave payouts.

• Can be used by a business to downsize by not replacing the retiree.

vol term - Resignation

• Employee voluntarily leaves the business, usually to take another job.

• Requires the employee to give the employer a period of notice.

• Can be used by a business to downsize by not replacing the resigning employee.

invol term- Redundancy

Occurs when a job is no longer required, often due to:

• Technological changes

• Restructuring

• Downsizing

• Reduced demand

• Can be voluntary (employee volunteers for redundancy) or involuntary (employer selects employees).

invol term- Dismissal

Termination of employment due to:

• Poor performance: Employee consistently fails to meet performance standards.

• Misconduct: Employee engages in unacceptable behavior.

• Must be handled carefully to avoid unfair dismissal claims.

Entitlement Considerations

the legal obligations an employer must uphold when terminating an employee.

• Wages and Salary Owing: All outstanding payments.

• Accrued Leave: Payment for untaken annual leave and long service leave.

• Notice Period or Payment in Lieu: Required notice period or payment in its place.

• Redundancy Payment: Compensation based on years of service (for redundancy).

Transition considerations

involve supporting employees during and after termination to help them find new employment or adjust to retirement.

Redundancy

• Outplacement Services: Career coaching, resume writing, interview training.

• Time Off for Interviews: Allowing employees paid time off to attend job interviews.

• Positive References: Providing references to potential employers.

• Counselling Services: Offering counselling to help employees cope with the stress of job loss.

Retirement

• Financial Planning Advice: Helping employees manage their retirement funds.

• Counselling Services: Offering counselling to help employees adjust to retirement.

• Gradual Retirement Options: Phasing out work hours over time.

Unfair Dismissal

• Occurs when an employee is dismissed for discriminatory reasons, such as:

• Race, Color, Sex, Age, Disability, Marital status, Pregnancy

• Employees can lodge a claim for unfair dismissal with the Fair Work Commission.

Managing Dismissal - HR managers must be aware of

• Relevant legislation (unfair dismissal, unlawful termination, anti-discrimination).

• Notice requirements (contract or award).

• Employee entitlements (accrued leave).

• Providing advice and training to improve performance before dismissal.

• Employment classification (casual, permanent, probationary, fixed-term).

Role of HR Managers in Termination

• Ensuring compliance with legal requirements.

• Managing the termination process fairly and ethically.

• Providing support and assistance to terminated employees.

• Minimizing the negative impact on remaining employees.

• Negotiating employment agreements with employees and their representatives.

• Training other managers and supervisors to facilitate the implementation of agreements within their areas of responsibility.

• Ensuring the implementation of all key terms of agreements.

• Dealing with disputes and conflict that may arise during the life of an agreement.

HR Managers role

Managing the employment cycle, negotiating agreements, training, dispute resolution, ensuring legal compliance.

employees role

Performing duties, following policies, negotiating conditions, taking industrial action (if necessary), raising concerns.

Employer Associations role

Representing employers, providing advice and support, lobbying, networking, creating policies, increasing awareness.

unions role

Representing employers, providing advice and support, lobbying, networking, creating policies, increasing awareness.

FWC role

Setting minimum wages, creating and maintaining awards, approving agreements, dispute resolution, unfair dismissal claims, anti-bullying, providing information and advice.

Awards

Legally binding documents that outline the minimum terms and conditions of employment for specific industries or occupations.

• They are determined by the Fair Work Commission (FWC).

• Awards act as a safety net, ensuring that all employees in a particular industry receive at least a minimum standard of pay and conditions.

Key Features of awards

• Industry-wide: Awards apply to all businesses within a specific industry (e.g., retail, hospitality, fast food).

• Minimum Standards: They set the minimum acceptable standards for wages, working hours, overtime rates, leave entitlements, and other conditions.

• Legally Binding: Employers must comply with the terms of the relevant award.

• Reviewed Regularly: The Fair Work Commission reviews awards every four years to ensure they remain relevant and up-to-date.

• Fair Work Commission Role: The FWC sets the minimum wage each year for Australia’s lowest paid workers and reviews all Awards every four years.

DIS/AD of awards

Advantages

• Fairness: Ensures all employees within an industry receive at least a minimum standard of pay and conditions.

• Simplicity: Provides a clear and straightforward framework for determining wages and conditions.

• Protection: Protects vulnerable employees from exploitation.

Disadvantages

• Inflexibility: May not be suitable for businesses with unique needs or circumstances.

• Lack of Customization: Does not allow for individual negotiation of wages and conditions.

• Potential for Higher Costs: Some businesses may find it costly to implement award conditions.

Enterprise Agreements

collective agreements made at the enterprise level between an employer and a group of employees or their representatives (usually a union).

• They outline the terms and conditions of employment for those employees.

• Enterprise agreements must be approved by the Fair Work Commission and cannot offer conditions that are below the relevant award.

Key Features of enterprise agreements

• Workplace-Specific: Tailored to the specific needs and circumstances of a particular business.

• Negotiated: Terms and conditions are negotiated between the employer and employees (or their representatives).

• Collective: Cover a group of employees, rather than individual employees.

• Better than Award: Generally, enterprise agreements provide wages and conditions that are better than the minimum standards set by the relevant award, usually in return for improved productivity.

• Fair Work Commission Approval: Must be approved by the FWC to ensure they meet legal requirements and are fair to employees.

Negotiation Process - enterprise agreements

1. Initiation: Either the employer or the employees can initiate the negotiation process.

2. Bargaining: The employer and employees (or their representatives) engage in bargaining to reach an agreement on wages and conditions.

3. Agreement: Once an agreement is reached, it is documented in writing.

4. Employee Vote: The agreement must be put to a vote of the employees who will be covered by it.

5. Fair Work Commission Approval: The agreement is submitted to the FWC for approval.

DIS/AD of enterprise agreements

Advantages

• Flexibility: Allows for customized wages and conditions that meet the specific needs of the business and its employees.

• Improved Productivity: Can incentivize employees to improve productivity in exchange for better pay and conditions.

• Better Employee Relations: The negotiation process can improve communication and build trust between employers and employees.

Disadvantages

• Complexity: The negotiation process can be complex and time-consuming.

• Potential for Conflict: Disagreements during negotiations can lead to conflict and industrial action.

• Higher Costs: May result in higher labor costs for the business.

The Role of the Fair Work Commission (FWC)

• The Fair Work Commission is Australia’s national workplace tribunal.

• Approving Enterprise Agreements: The FWC approves enterprise agreements between employers and employees.

• Dispute Resolution: It can help resolve disputes at the workplace level through mediation.

• Unfair Dismissal: Deals with matters relating to unfair dismissal allegations.

• Minimum Wage: Sets the minimum wage each year for Australia’s lowest paid workers.

• Industrial Action: Approves protected industrial action, by ensuring that all processes have been followed.

• Award Review: Reviews all Awards every four years.

• Conciliation and Arbitration: An independent tribunal that can resolve disputes through its formal conciliation and arbitration procedures.

Mediation - dispute resolution process

involves an impartial third party (the mediator) who assists the parties in dispute to reach a mutually agreeable resolution.

• Role of the Mediator:

  • Facilitate communication between the parties.

  • Help identify the issues in dispute.

  • Encourage parties to explore options for resolution.

  • Does not offer solutions or make decisions.

• Key Characteristics:

  • Voluntary: Parties must agree to participate.

  • Confidential: Discussions are private and cannot be used in court.

  • Non-binding: The agreement reached is not legally enforceable unless formalized.

Arbitration- dispute resolution process

An independent third party (the arbitrator) hears evidence and submissions from both parties and makes a binding decision.

• Role of the Arbitrator:

  • Hear evidence and arguments from both sides.

  • Make a fair and impartial decision based on the evidence.

  • Issue a binding order that both parties must comply with.

• Key Characteristics:

  • Adversarial: Parties present their case to the arbitrator.

  • Formal: Follows legal rules of evidence and procedure.

  • Binding: The arbitrator’s decision is legally enforceable.