Human Resources

Strategic role of HR

Hire staff to maximise productivity, training to monitor staff, support employee needs, create competitive advantage

Outsourcing

The process by which an external business completes an activity for another business

Benefits of outsourcing

Cheap labour, specialised people, business can focus more on their core activites

Downsides of outsourcing

Too expensive, may lack understanding of the business culture

Domestic contractors

A contractor who comes from the same country in which the business is operating in

Global contractors

When an activity is outsourced to a global business in another country

Stakeholders

Employers, employees, employer associations, unions, government organisations, society (EEE AUS GO)

Employers

Recruiting, training and motivating staff to increase productivity

Employees

Skilled employees can create a competitive advantage for the business - higher wages and better conditions can motivate staff

Employer associations

Influence employment laws e.g. contracts, workplace safety, redundancy, and dismissal processes

Unions

Influence employment laws such as pay rise, and represent staff during workplace disputes

Government organisations

Create and enforce employment laws and administer industrial policies

Society

Pressures businesses to provide work-life balance and flexible working hours or arrangements

The current legal framework

Government sets laws that regulate relationships between employers and employees

Employment contract

A legally binding agreement between an employer and employee, outlines job role, responsibilities, pay, hours, and conditions

Common law

Judge-made laws based on court decisions Employer: must provide safe workplaces and fair treatment Employee: must follow lawful instructions and perform duties competently

Minimum employment standards

Set of basic entitlements for all employees e.g. leave, hours, termination rights

Minimum wage rates

$24.94/hr or $948/week for a 38-hour full time week (determines by fair work commission)

Awards

Legal documents that set minimum pay and conditions for specific industries or jobs (pay rates, hours, overtime)

Enterprise agreements

Negotiated between employers and employees or unions, tailored to specific workplaces, must meet awards and minimum legal standards

Work health and safety

Laws that ensure workplace safety (Work Health and Safety Act 2011)

Workers' compensation

Benefits an employee/employees family get from work related injuries. Administered by the State Insurance Regulatory Authority (SIRA) and Insurance & Care NSW (icare)

Anti-discrimination and EEO

Protects employees from direct and indirect discrimination, employers must pay particular attention to groups that have been disadvantaged.

Structural economic change

A change in the nature and pattern of production of goods and services within an economy (Increase in demand for services, ageing population)

Globalisation

HR focuses on hiring and training staff to increase productivity and gain a competitive advantage

Strong economy

More demand, production, and labour, higher wages

Impact on HRM of a strong economy

HRM focuses on the recruitment process

Weak economy

Less demand, production, and labour, lower wages.

Impact on HRM of a weak economy

HRM focuses on reducing labour costs, the size of the workforce, and improving efficiency.

Work life balance

Technology enables work to be more flexible, allowing employees to telecommute around the world

Benefits of technology

Improves employee work-life balance → motivates staff performance, and enables the business to gain access to skilled employees

Technological influence on recruitment and training

New jobs may be created with demand for workers competent in technology, but HR may have to train existing employees in new technologies

Redundancies

New technologies can do some employees’ jobs more efficiently and less costly

Changing work patterns

Demand for work-life balance, rise in job mobility, increase in the female workforce, increase in older workers

Demand for work-life balance

HR needs to provide flexible options for working (part-time/casual work/working from home) to improve productivity

Rise in job mobility

HR must offer incentives like rewards to keep staff working longer

Increase in the female workforce

Anti-discrimination laws ensure employers recruit men and women and pay them equally

Increase in older workers

Businesses need to provide options for part-time work or job sharing, opportunities for skill development, and targeted health and safety programs

Living standards

Aus has high living standards, which can be compromised when businesses outsource too much → employers must analyse their social responsibility

Ethics and corporate social responsibility

Positive working conditions, a safe environment

Positive working conditions

Motivating employees, flexible working conditions, work-life balance

Safe environment

Complying with social justice and industrial legislation, developing codes of conduct

Impact of positive workplace

Higher staff morale, staff turnover and absenteeism falls, reduces recruitment and training costs, positive business image

Unethical workplace

Leads to heavy legal costs and industrial disputes, and can damage the business’s image