AOS 2 Human Resource Management

Human Resource Management

An individual or group manages the relationship between an employer and employee to achieve the overall strategic goals and objectives of a business.

Can do this by looking after employment cycle by establishing, maintaining, and terminating employees.

7 Business Objectives

To make a profit, increase market share, fulfil a market need, fulfil a social need, improve effectiveness, improve efficiency, meet shareholder expectations

Relationship between Human Resource Management and Business Objectives

The successful management of employees through implementing strategies such as motivation

strategies, training, and performance management should lead to employees being more inclined to

put effort into the work they do.

This helps achieve business objectives, such as making a profit or fulfilling market needs.

HR Management and Responsibilities

Recruitment and Selection

Induction of Policies and procedures

Motivation

Training

Performance Management

Termination Management

Awards and Agreements

Culture

3 Motivational Theories

Maslow’s Hierarchy of Needs

Goal Setting Theory (Locke and Latham)

Four Drive Theory (Lawrence and Nohria)

Maslow’s Hierarchy of Needs (Ninja Acronym)

SA- Self Actualization

E- Esteem needs

SO- Social Needs

SA- Safety and Security Needs

Physio- Physiological needs

Maslow’s Hierarchy in Business Context

BOTTOM TO TOP

Physio- Job and income for necessities

Safety and Security Needs- Pay, safety at job site, job security ex, 11 National Employment Standards, OHS steady income

Social Needs- Teamwork and social activities, functions ex, Staff dinner birthdays

Esteem Needs- Recognition of work, delegation, ex, employee of month

Self Actualization- Opportunities for Advancement, ex, promotion,

S & W Of Maslow’s Hierarchy Of Needs

Allows management to develop an understanding of individual needs, as employees are different and have specific needs

Allows management to be aware that employees will be at different stages of development and will need to be motivated by a variety of methods

Easy to understand with a more set, implement and do strategy to progress higher up hierachy.

Not supported by empirical evidence, and the stages do not apply to all individuals

A manager may struggle to identify which stage employees are in, making it difficult to determine which strategy to use to motivate each employee

Hierarchy is very simplistic, and one motivation strategy can cater to nearly all needs at the same time

4 Drive Theory

An interpretation of human behaviour that covers all the emotions and motivations of humans. Encompassing

The drive to acquire, to bond, and to learn are all active, whereas the drive to defend is only active in the face of threat.

To Drive to acquire

includes both material and non-material items, such as status and influence.

Important for managers to set up recognition and reward programs to help employees work towards their goal of acquiring more material possessions.

Example tying monetary rewards to performance

Drive to bond

Involves building relationships and connections with other human beings and colleagues.

Collaboration and teamwork should be vauled to develop a positive culture and improve job satisfaction.
Example teambuilding events, employee dinners

Drive to learn

Work environments that stimulate curiosity and allow for exploration and developing understanding.

Manager needs to ensure that employees are constantly challenged so that tasks to not become routine.

For example ongoing trainning and opportunities to learn new skills

To defend

The desire to remove threats to our safety and security and to protect what we regard as ours.

Can be applied to the workplace by making the workplace welcoming and supportive, treat employees fairly

Not using intimidation as a management technique.

S & W Of 4 Drive Theory

The drives work independently, allowing management and employees to be flexible in the behaviours or strategies selected or implemented.

Four Drive Theory is very adaptable to complicated environments or situations.

The Four Drives will convert into effort that is directed at improving behaviour, thereby improving business performance and achieving objectives.

Other drives besides the four outlined may exist, but the drives don’t explain all the individual characteristics that motivate a person.

Some of the workplace applications involve competition between employees, which can have detrimental effects.
For example, a workplace can have a lack of cooperation or a lack of information sharing due to.

Goal Setting Theory

The theory that employees are motivated by clear goals and appropriate feedback regarding their achievement.

5 Principals of Goal Setting theory

Clarity- Employees must be able to know what is to be achieved and how it is measured

Challenge- Goals need to be able to extend employees’ skillset with current training, so they work hard, but not too ambitious to where the goal feels beyond reach/

Commitment- Employees are more likely to do or achieve a goal if they have input into it, as it is more likely to serve as motivation.

Feedback- provides an opportunity for adjustments to be made to the goal, and if needed, to break the goal down into smaller milestones and direct employees. It also helps to provide recognition to the employee

Task Complexity- tasks should not be overwhelming for the employee and should be straightforward enough that they can achieve them. Additionally trainning may be required for an employee to be able to complete tasks

S & W of Goal Setting Theory

Setting a goal is clear and specific for an individual employee, and will motivate contributing to business objectives

Increased staff performance due to clear and specific goals, increasing the rate of productivity

Better relationships between management and employees will occur as managers work with employees to collaboratively set goals and provide feedback

Setting goals that are vaugue can lead to poor performance and not challenging can become demotivaitng

Employee goals may clash with each other or with business objectives, or may not support the attainment of business objectives

Employees may only focus on attainment of foals and ignore other aspects of the job such as collaboration and communication.

Compare Maslow’s Hierarchy and 4 Drive Theory

Both are concerned with physical, social and emotional needs of employees.

This is seen with the physiological needs of maslow’s hierarchy and to the drive to acquire, and social needs and drive to bond which are closely related.

Both suggest different employees will value different motivators.

As Maslow’s hierarchy has 5 factors in a rigid pyramid scheme while 4 drive theory has 4 sub branches of motivation

Maslow’s theory must be in sequential order where one is addressed at a time, whereas the four drives can be targeted in any order and even simultaneously.

The drive to defend is unlike any of the levels in the hierarchy as it is only applied when a person feels threatened

Compare Maslow’s Hierarchy and Goal Setting Theory

Both recognize personal employee motivations.

Seen as in Maslow’s each employee is motivated by progressive stage on hierarch and in goal setting they set specific and measurable goals that challenge them.

Both recognize feedback from manager is important as feedback allows employees to know how they are progressing to goal and as well as improvements that need to be made.

Both aims to improve performance and productivity of employees by motivating them to work more efficiently

Motivators in Goal setting can be unique and personal as manager will decide with employee and has no set foundation, while Maslow’ hierarchy is already provided and set by manager.

Maslow’s can be applied from manager alone, while Goal Setting theory requires employee input

Compare Four Drive and Goal setting theory

Goal achieving can be similar to the drive to learn and acquire, plus both theories recognize these personal drives and objectives are important for employees.

Both recognize feedback from manager is important as feedback allows employees to know how they are progressing to goal and as well as improvements that need to be made.

Both aims to improve performance and productivity of employees by motivating them to work more efficiently

4 drive motivation is based from 4 innate biological factors, while goal setting motivation is a specific and challenging goal directed by employee and manager choice.

The pursuit of goals is normally gone one at a time while the drive theory can be done simultaneously.

Comparing All Motivation Theories (image)

Motivation

A persons individual and internal processes that direct and energies a persons behavior.

Motivation can be intrinsic or extrinsic

5 Main Motivational Strategies

Performance related pay

Career advancement

Investment in training

Support

Sanction

Performance Related pay (Extrinsic)

The wages and pay provided to employees according to set standards.

Extrinsic motivator as employees strive to receive financial rewards.

S & W of Performance Related Pay (Extrinsic)

Helps attract highly skilled employees that believe they can comfortably achieve targets to be rewarded.

Goals and targets are normally clear and specific.

Potential to weed out lazy workers, improving efficiency of workforce by only having high performing workeres

Assessment can be subjective, employees can feel demotivated if their is bias or are not fairly assessed

Can create competition based culture, causing conflict

Performance Related Pay S&L Motivational Effects

Short term- Employees powerfully motivated to seek financial rewards

Long Term- can also provide long-term motivation as gainsharing, profit sharing and share plans are rewarded over many years.

However employees can feel demotivated if constantly competing for financial rewards

Career Advancement (Motivational Strategy)

The assignment of more responsibility or authority to an employee such as increased salary, and increases responsibilities

S & W Of Career Advancement

Can provide a means of retaining valuable employees

Promoted employees is likely to feel that they can contribute more to the business, improving productivity, and the commitment to the business

Will satisfy employees who desire a sense of

achievement or extra responsibility.

Employees may have to compete for a limited number of promotions positions available which can create some conflict.

Employees may not be interested in the increased responsibility of a career advancement

Employees may be promoted beyond their

capacity

Career advancement S&L Motivational Effects

Short term- employees are powerfully motivated due to, career advancement providing a pay rise and greater job security.

Long Term- Employees can be motivated to position themselves for future roles

Investment in Training (Motivational Strategy)

The direction of finances, or resources such as time, into the teaching of skills to employees.

This can be on the job such as mentoring or off the job such as attending external workshops.

S & W Of Investment in Training

Benefits business by improving skills of employee meaning they are better at their jobs and achieving business objectives

Has potential to create long term motivation by creating better cooperate culture filled by upskilling and learning.

Can satisfy higher level needs in Maslow’s hierarchy such as self actualization as well as for goal setting and some of 4 drive theory.

Unless there are sufficient jobs within the business requiring higher level skills, training may be wasted

Loss of productivity when employees are being trained, decreasing business output

The business may pay cost for training only for employee to leave for a position in another job, can increase staff turnover rate.

Investment In Training S&L Motivational Effects

Short Term Effects- Employees can be motivated by an opportunity to upskill

However can be demotivated if training is seen as an interruption to their work deadlines

Long Term Effects- undergoing training

provides employees with a sense of accomplishment, and gaining new skills can assist with personal growth

Support (Motivational Strategy)

The assistance and encouragement given to employees to cope with difficulties that may minder performance

S & W of Support

Many forms of support such as encouragement,

can be provided with little to no cost

Support and encouragement can positively influence employee attitudes and help them to improve in confidence, improving motivation

It can be difficult to find reasons to support and encourage some employees

Requires the business to have a positive

corporate culture.

Support S&L on Motivation

Short term- Employees feel cared and concerned about

Can Motivate employees to perform better in workplace

Long Term-

Employees feel nurtured and supported by encouraging culture of workplace

Encourages a sense of loyalty and willingness to remain in the work environment

Sanction (Motivational Strategy)

A form of penalty or discipline imposed on an employee for poor performance such as termination or demotion

S & W Sanction

Can remove poor behaviour in the workplace

can motivate some workers to improve their

work performance.

May quickly stop inappropriate behaviour of

some employees.

Excessive emphasize on sanctions can reduce employees sense of belonging, negative impact on motivators

Resentment can be caused resulting in conflicts between management and staff

Only a short term motivator.

Sanction S&L on Motivation

Short Term- Employees are powerfully motivated to avoid further sanctions

Long Term- Employees can begin to feel demotivated by a negative and fearful working environment

Can create a negative fearful work culture

Training

The process of teaching staff how to do their job efficiently and effectively by boosting their knowledge and skills.

Can be on the job such as mentoring and off the job such as attending workshops

2 types of training

On the job and off the job trainning

On the Job Training

When employees learn a specific set of skills to perform particular tasks in the workplace.

Can be informal where employees mentor employees or formal which is more structured training.

Off the job trainning

When employees learn skills away from their regular workplace.

This normally involves sending workers to external institutions such as lectures and conferences to gain skills.

S & W On The Job Training

Cost effective due to no extra expenses such as travel

Employees work while training, so productivity is not excessively hindered as production is still occurring

Employees are in familiar environment with collogues they are used to working with, more comfortable and willing to be trainned

Quality of trainer may vary, as not everyone can teach or be a mentor

Bad habits of employees may transfer to newer staff.

Trainer may be put out of the workforce to mentor reducing labor force.

S & W Off the job training

Availability of a wider range of skills and

qualifications than those in the workplace

Outside experts can provide broader experiences to gain skills, and can be more structured and organized with professionals.

Can give formal qualifications for employees

More expensive due to increases expenses such as fees and transport

Lost working time due to employees being absent from workplace

The skills gained may not relate to the exact skills needed in workplace.

Training Summary Table

Development Not Needed

The process designed to develop knowledge and skills necessary for future work activities and responsibilities.

Helps retain employees and motivates them as they take on new responsibilities

Performance management

Performance management is a system where managers and employees work together to assess and improve an employee’s performance. It involves setting goals aligned with business objectives and using strategies/feedback to identify areas for improvement and support future performance.

Performance Appraisal

The formal assessment how well employees are efficient and effective employees are working to pre determined standards.

S & W Performance Appraisal

Facilitates communication and allows positive relationships to develop between management and employees

Feedback can help employees improve their performance due to clear areas of improvement

Information from an appraisal can assist managers when making decisions about pay or termination

Can be time consuming if the meeting cycles become shorter such as weekly

Can be stressful for both manager and employees due to unwillingness to critique or discuss performance

Staff who meet performance standards may expect a rise or promotion which is expensive for the business

Management by objectives (MBO)

A strategy that aims achieve business objectives with goals agreed by management and employees.

Processes include setting clear and specific goals with regular feedback to employees.

S & W Management by objectives

Employees are involved in setting goals and choosing a course of action to achieve them. Thus more likely to work productivity and fulfil their responsibility.

Collaborative setting of goals helps build relationships between management
Information from feedback from objective management can assist managers when making decisions about pay or termination.

Can be time consuming due to added responsibilities to employees.

Extra workload can cause stress onto workers, demoralizing them and decreasing productivity.

Staff who meet objectives may expect a pay rise or promotion, which is expensive for business.

Self Evaluation

Form of self assessment where employees evaluate their own preface against set objectives.

Allows employees to see and document their strengths and weaknesses for development

S & W Self Evaluation

Allows employees to be actively involved in their performance reviews assisting them in understanding of role in business.

Helps managers to get an insight not how employees are viewing their performance and addressing training required.

Open communication setting can help build relationships between management and employees.

Employees can overstate their own performance leading to dishonestly in evaluation

People may also be too harsh on assessment leading to manager to think less of performance

Extra workload and responsibilities can cause stress onto workers, demoralizing them and decreasing productivity.

Employee Observation

Where an employee is being monitored or assessed to give a comprehensive picture of past and present performances.

Provides a broader view of strength and weaknesses and training needs workers.

S & W Employee Observation

Allows management to gain a broad range of observations on an employee from variety of different sources, providing bigger picture of employee performance

Helps managers pinpoint areas for improvement and training needs.

Information from employee observation can help assist in decisions for pay increases or termination.

Not as useful for assessing skills or the achievement of objectives as observants may not fully understand business processes.

Can be damaging to peoples self esteem and team cohesion due to fearful stress in workplace

Staff who receive positive feedback may expect a pay rise or promotion, which is expensive for business.

4 Types of Performance Management

Management by objectives, Performance appraisals, self evaluation, employee observation

6 Types of Termination management

Retirement, redundancy, resignation, dismissal, entitlement considerations, transition considerations

Termination

The process where a business and worker end their employee contract.

Retirement

The voluntary form of termination where a worker decides to leave workforce.

Redundancy

The involuntary termination of an employee when a job no longer exists usually due to technological changes or a business restructure

Resignation

the voluntary termination of employment when a worker decides to leave the business

Dismissal

The involuntary termination of an employees contract.

Unfair Dismissal

The unjust termination of an employee contract.

Entitlement Considerations

The legal requirements that employees have when leaving the workplace, either on a voluntary

or involuntary basis, such as owing wages

Transition Considerations

Concerns associated with changing jobs or working conditions that are addressed above the beyond the legal requirement for a business, such as outplacement services.

Termination management table

6 Main Participants in a workplace and definition

Employees- Individuals who work for a business and receive a form of pay in exchange for physical or mental labor

Unions- Organizations whose role is to represent and protect the rights of employees in a particular industry

Employer- Someone who assigns work to employees in order to achieve business objectives

Employer Associations- Organizations that represent and assist employer groups, upholding their legal obligations

Human Resource Managers (HRM)- Individuals plan, direct, and coordinate an organization's workforce, bridging staff and management objectives

Fair Work Commission- Australia's national workplace tribunal, with power to carry out a range of functions to create fair and safe workplaces.

Workplace Relations

The interactions between employers and employees or their representatives within a business’ internal environment

Employees Role in Business

Perform duties with care and diligence

Improve Productivity to achieve business objectives

Unions Role in Business

Representation and Advice in large numbers for employees

Help to resolve workplace issues, acting as an advocate for employees

Employer Role In Business

Ensure pay and working conditions meet national requirements.

Provide a safe and healthy workspace.

Employer Associations Role In Business

Develop workplace policies and manage records of claims served on their members by unions.

Keep members informed of policy changes from workplace agreements or updated legislations that could affect business.

HRM Role in Business

Recruiting staff and organize training

Negotiating employment agreements with employees and their representatives, such as pay and working conditions

Maintain positive working conditions so chances for disputes are reduced

Fair Work Commission Role in Business

Deal with applications of unfair dismissals

Set minimum wage and minimum wage in awards

Administer regulation of industrial action

Employee Contract

A legally binding document that outlines the terms and conditions of employment set by employers.

Awards

Awards are legally binding documents set by the Fair Work Commission that outline minimum wages and conditions across an entire industry.

Distinguish between Employee Contracts/ Agreements and Awards

Employee contracts are legally binding documents that outline the terms and conditions of employment set internally by a company for an individual employee.

Awards are legally binding documents set by the Fair Work Commission that outline minimum wages and conditions across an entire industry.

While employee contracts set company-specific terms and conditions, awards provide the national minimum standards that all employees must receive.

National Employment Standards

11 employment entitlements that must be provided to all employees, such as 38 hours per week maximum, annual and sick leaves.

S&W Awards

Wage equality and transparency across industry for workers, as consistent throughout

Less Costly for the business as already created by FWC

Provides less flexibility as it cannot be to the needs of a workplace

Strong unions can exert enormous influence on the award

Modern awards can be complex

Agreements

A legally binding document that outlines the wages and conditions for an employee at a particular business

S&W Agreements

More flexible as t&c’s can be tailored to business needs

Improves relationships with employees as t&c’s are negotiated

May be used to attract talented or highly skilled employees to the business

There is less wage equality and transparency across the industry

Time consuming to negotiate as employees must be consulted during enterprise bargaining.

Awards and Agreements summary table

Dispute

A conflict that occurs in any a businessdue to an unsolved disagreement

Mediation

A method of dispute resolution where a third party (mediator) helps the parties in dispute to arrive at their own agreement.

S&W Mediation

Promotes positive working conditions as the parties often make decision together

More cost effective less time consuming and formal than arbitration.

Mediator is likely to prevent parties relationship from breaking down

No guarantee that an agreement to dispute will be achieved

Decision may not be legally binding, which could be dismissed in the future

Arbitration

A method of dispute resolution where a third party such as FWC listens to both parties arguments and makes a legally binding order to how it must be resolved.

S&W Arbitration

There is a guarantee that dispute will be solved as decision will have a winner or loser.

Legally binding, meaning both parties must adhere to it

Can destroy positive working conditions due to win/loss nature of decision

More formal time consuming and expensive than mediation

Dispute resolutions summary

Extrinsic Rewards

Extrinsic Motivation

behaviour driven by external rewards such as money, often as a short term motivator

Intrinsic Motivation

Whereby the employees are motivated from within to enhance their career, often long term motivator