Unit 3 AOS2: Human Resource Management

Advantages of Maslow

- Understands employee needs are dynamic

- Provides structure

- Highlights the importance of non- financial motivators

Disadvantages of Maslow

- Hard to identify each employee's level

- Employees may be motivated by multiple needs; costly to satisfy all needs

- not all employees value the same things.

Founders Of Four Drive Theory

Lawrence and Nohria

Four Drive Theory

A motivation theory stating employees are driven by four universal drives: acquire, bond, learn, defend.

Drive to Acquire

The desire to gain rewards and status.

Drive to Acquire - Disadvantage

Can be expensive; employees may constantly want more rewards.

Drive to Bond

Desire to interact with others and develop relationships

Drive to Bond - Disadvantage

- Not all employees enjoy social interaction or group activities.

Drive to Learn

Desire to gain skills, knowledge, and experience; managers use training, mentoring, job rotation.

Drive to Learn - Disadvantage

Training can be costly and time‑consuming.

Drive to Defend

Desire to protect job security and the business's values

Drive to Defend - Disadvantage

Often triggered only when employees feel threatened.

Advantages of Four Drive Theory

- Identifies there are non-financial motivators

- Satisfied employees create a good work environment

- Drives can be managed simultaneously

Disadvantages of Four Drive Theory

- Hard to satisfy all drives equally

- drive to acquire can be expensive

- drive to defend is reactive.

Who are the founders of Goal Setting Theory?

Locke and Latham.

What is Locke and Latham's Goal Setting Theory?

A motivation theory stating employees are motivated by clear, specific goals that follow five key principles.

What are the five principles of Goal Setting Theory?

Clarity; Challenge; Commitment; Feedback; Task Complexity.

Clarity

Goals must be clear and specific so employees understand exactly what is required.

Challenge

Goals should be difficult enough to motivate effort but not overwhelming.

Commitment

Employees must be committed to the goal; involvement in setting goals increases motivation.

Feedback

Employees need regular, constructive feedback to stay on track and improve performance.

Complexity

Goals should consider the difficulty of the task and allow enough time, training, and resources.

What are the advantages of Goal Setting Theory?

- The goals are aligned with the business objectives

- Employees are likely to continue to develop their skills and knowledge

- Goals are clear and employees know what the objective is

What are the disadvantages of Goal Setting Theory?

- Time consuming to set goals

- Failure to achieve goal can hurt employee self-esteem

- Focusing on specific goals can make it difficult to focus on other areas of the business when needed

Motivation strategies

Methods used by managers to increase employee motivation, productivity and achievement of business objectives.

Identify the 5 Motivation Strategies

Performance-related pay, career advancement, investment in training, support strategies, and sanction strategies.

Performance-related pay

Financial rewards given to employees for achieving business objectives

Advantages of performance-related pay

Increases motivation and productivity; rewards high-performing employees; aligns employee goals with business goals.

Disadvantages of performance-related pay

Can create unhealthy competition; may reduce teamwork; motivation may decrease once rewards stop.

Career advancement

The upwards progression of an employee's job position.

Advantages of career advancement

Increases motivation and job satisfaction; encourages employees to work harder; helps retain skilled employees.

Disadvantages of career advancement

Limited promotion opportunities; employees may compete against each other; not all employees want extra responsibility.

Investment in training

Investment in training is allocating resources to improve employee skills and knowledge.

Advantages of investment in training

Improves employee skills and productivity; increases job satisfaction; benefits the business long term.

Disadvantages of investment in training

Expensive for the business; employees may leave after receiving training; takes time to see results.

Support strategies

Providing employees with any assistance hat improves their satisfaction at work.

Advantages of support strategies

Builds strong relationships; increases job satisfaction; improves long-term motivation and corporate culture.

Disadvantages of support strategies

Can take time to implement; managers must invest time and effort; may not quickly fix performance issues.

Sanction strategies

Punishments or disciplinary actions used by managers to correct poor employee behaviour or performance.

Advantages of sanction strategies

Quickly corrects poor behaviour; ensures rules and standards are followed; can increase short-term performance.

Disadvantages of sanction strategies

Can reduce morale and job satisfaction; may create fear or resentment; can harm workplace relationships.

Short-term employee motivation

Motivation strategies that increase employee effort quickly but usually for a limited period of time.

Long-term employee motivation

Sustained motivation over time, usually achieved through job satisfaction, support and development opportunities.

Employee Training

Training is the process of developing an employees skills, knowledge and abilities.

Why is employee training important

So that they can perform their role more effectively

On-the-job training

The process of developing an employees skills and knowledge within the workplace

Advantages of on-the-job training

- Cost Effective

- Employees learn on equipment they will use daily

- Employees can be productive while working

Disadvantages of on-the-job training

- Quality of trainer may vary

- Potential to pass on bad habits

- Workplace distraction can interrupt the learning

Off-the-job training

The process of developing an employees skills and knowledge away from their place of work.

Advantages of off the job training

- Employees learn from experts

- The quality of the training can be improved by having experienced trainers

- No workplace distractions

Disadvantages of off-the-job training

- Expensive

- Business does not have control over what is in the training

Performance Management

The process used to improve business and employee performance to meet goals and objectives.

What are the 4 Performance Management Strategies

- Managers By Objectives

- Appraisals

- Self Evaluation

- Employee Observation

Management by Objectives (MBO)

Manager and employee set specific, measurable goals together that align with the overall objectives of the business

Advantages of Management by Objectives (MBO)

Clear goals, aligns employee + business objectives, increases motivation, improves communication.

Disadvantages of Management by Objectives (MBO)

Time‑consuming, can create pressure, hard to set fair goals, may ignore non‑measurable work.

Human Resource Management (HRM)

The coordination of employees' roles, pay, and working conditions to maximise motivation and performance.

Role of a Human Resource Manager

To coordinate and direct employees through recruitment, training, performance management, and termination.

7 Business Objectives

Make a profit; Increase market share; Fulfil a market need; Fulfil a social need; Meet shareholder expectations; Improve productivity; Increase business growth.

Relationship Between HRM and Business Objectives

Motivated employees perform better, increasing productivity and helping the business achieve its objectives.

Maslow's Hierarchy of Needs

A motivation theory stating employees have five needs arranged in a hierarchy; lower needs must be satisfied before higher needs motivate behaviour.

Maslow - Physiological Needs

Basic human needs such as pay, breaks, and working conditions.

Maslow - Safety Needs

Need for being physically and mentally safe and sense of job security

Maslow - Social Needs

Need for strong relationships and a sense of belonging

Maslow - Esteem Needs

Need for respect, self esteem and status

Maslow - Self‑Actualisation

Desire for fulfillment and achieve one's full potential

Appraisals

Formal review of an employee's performance and evaluated over a set period of time.

Advantages of Appraisals

Identifies strengths + weaknesses, provides structured feedback, supports training + development, can improve performance over time.

Disadvantages of Appraisals

Can be biased, stressful for employees, time‑intensive, poorly delivered feedback lowers morale.

Self‑Evaluation

Employee assesses their own performance against expectations or goals.

Advantages of Self‑Evaluation

Encourages reflection, builds ownership of performance, helps employees recognise contribution to objectives, supports goal‑setting discussions.

Disadvantages of Self‑Evaluation

Employees may underrate or overrate themselves, can be uncomfortable admitting weaknesses, requires honesty + maturity, may not be accurate without evidence.

Employee Observation

Manager directly watches employee perform tasks to assess performance.

Advantages of Employee Observation

Real‑time assessment, identifies actual behaviour, not assumptions, can be formal or informal, 360‑degree feedback gives balanced view.

Disadvantages of Employee Observation

Employee may feel watched, can change behaviour (Hawthorne effect), time‑consuming, potential for bias if not structured.

Termination

The working relationship ends due to the employee leaving the business either voluntarily or involuntarily.

Advantages of Termination

Can reduce expenses, can improve efficiency, allows restructuring to improve profits.

Disadvantages of Termination

Can negatively influence corporate culture, can lower morale, loss of employees and experience.

Retirement

When the employee leaves the business voluntarily with the plan to no longer be part of the labour force. Often requires succession planning.

Resignation

When the employee decides to leave the business for reasons such as unhappiness, moving, better offers, starting a business, or changing careers.

Redundancy

When an employee leaves the business because their job no longer exists and the people who held those jobs are retrenched.

Voluntary Redundancy

Employees are given the option to leave the business and receive a redundancy package.

Involuntary Redundancy

Employees are told they will no longer have a position and are forced to leave the business.

Dismissal

When the employee is forced to leave the business for issues such as poor performance or serious misconduct.

Summary Dismissal

Employer dismisses an employee without notice or warning due to serious misconduct such as theft, harassment, fraud, or breaching safety standards.

Unfair Dismissal

Occurs when an employer dismisses an employee for discriminatory reasons such as illness, union status, race, sex, age, disability, pregnancy, religion, political opinion, etc.

Entitlement Considerations

Legal entitlements employees must receive when leaving the business, such as pay for work completed, accrued annual leave, long service leave, and redundancy pay (if applicable).

Transition Considerations

Factors that assist an employee leave a business and transition to another job or retirement, such as counselling, references, support, and financial counselling.

What are workplace relations?

The interactions between employers and employees to achieve working conditions that meet employee needs and business objectives.

Define a Human Resource Manager (HRM).

An individual who coordinates the relationship between employees and management within a business.

Define employees.

Individuals hired by a business to perform work tasks and help achieve business objectives.

What is the role of employees?

Complete tasks efficiently and safely, contribute to business objectives, influence corporate culture.

What are employer associations?

Advisory bodies that help employers understand and meet legal obligations.

What is the role of employer associations?

Provide legal advice to employers, assist in wage and condition negotiations, offer protection and guidance, require membership fees (optional to join).

What are unions?

Organisations that represent employees to improve wages and working conditions.

What is the role of unions?

Represent employees in negotiations, protect employee rights, improve wages and conditions, membership is voluntary but requires fees.

What is the Fair Work Commission (FWC)?

Australia's independent workplace relations tribunal established under the Fair Work Act 2009.

What is the role of the Fair Work Commission?

Resolve workplace disputes, set minimum wages and conditions, protect employee rights, oversee industrial action, prevent unlawful discrimination.

What is an Award?

A legal document that sets minimum wages and working conditions for an entire industry, created by the Fair Work Commission.

What are the advantages of Awards?

Provides a safety net for employees, ensures minimum standards are met, and is simple and consistent across an industry.