VCE Business Management Unit 3 AOS 2 KK1-KK7

Human resource management

Human resource management is the process involving activities that coordinate employees and their relationship with the business.

Role of a HR manager

Coordinates activities of acquiring, developing, maintaining and terminating employees in a business' human resources.

Purpose of HR managers in a business

Ensure a business has appropriate employees with appropriate skills available to perform duties at the required time and location.

Effective management of employees — impact on business performance

When employees are managed well it leads to increased motivation, productivity and tasks being completed correctly.

Human resource management — responsibility area of the business

The area of a business responsible for managing the relationship between employees and the business.

HRM — purpose regardless of business size

Whether HR is a team or the owner in a small business, the aim is to manage employees effectively.

Effective HRM — impact on employee performance

Ensures employees perform at a high level by placing them in the most suitable roles.

Employment cycle — establishment phase

The stage where businesses prepare to acquire employees and establish employment arrangements.

Planning human resource needs (employment cycle activity)

Determining the number and types of employees required by the business.

Creating job descriptions (employment cycle activity)

Developing documents outlining duties and responsibilities for a job role.

Recruiting new employees (employment cycle activity)

Seeking potential candidates to fill available job positions.

Developing and managing selection processes (employment cycle activity)

Creating and implementing methods to choose the most suitable candidate for a role.

Organising employee contracts (employment cycle activity)

Preparing formal agreements outlining employment conditions.

Employment cycle — induction phase

The stage where new employees are introduced and integrated into the business.

Inducting employees (employment cycle activity)

Introducing employees to the workplace, procedures and expectations.

Employment cycle — termination phase

The stage where employment relationships are ended.

Managing redundancies (employment cycle activity)

Handling situations where jobs no longer exist and employees leave the business.

Motivation

The reason or drive behind why a person puts in effort.

Understanding motivation — role of managers

Managers must understand what motivates employees to gain the best performance from staff.

HR managers — role in motivation

HR managers support and advise other managers on how to motivate employees.

Maslow's hierarchy of needs — core assumption

Assumes people are motivated by their needs.

Maslow's hierarchy — order of needs

Lower needs must be satisfied before higher, more important needs.

Maslow's hierarchy — satisfied needs

Satisfied needs no longer motivate individuals.

Maslow's hierarchy — extrinsic vs intrinsic needs

Lower order needs are extrinsic while higher order needs are intrinsic.

Locke and Latham goal setting theory — core idea

Motivation is increased when employees work towards clear goals.

Goal setting theory — clear goals

Goals should be specific and have an accurate measure of achievement.

Goal setting theory — challenging goals

Goals should not be too easy or too difficult and must be realistic.

Goal setting theory — commitment to goals

Employees must be dedicated to achieving the goals.

Goal setting theory — team environment

Goals should be set in a team environment.

Goal setting theory — management style when setting goals

A more decentralised management style should be used when setting goals.

Goal setting theory — feedback

Employees should receive feedback about their progress.

Goal setting theory — complex goals

Complex goals should be broken into smaller sub-goals.

Four drive theory — overview

Suggests individuals are motivated by four core drives.

Four drive theory — drive to acquire

The desire to gain goods and services in life.

Four drive theory — drive to bond

The desire to form long-term relationships.

Four drive theory — drive to learn

The desire to continually develop new skills and knowledge.

Four drive theory — drive to defend

The desire to protect oneself and others they care about.

Drive to defend — activation

It is a latent drive and only occurs when an individual feels threatened.

Performance-related pay

A motivation strategy where a percentage of an employee's pay is linked to their performance.

Career advancement

The opportunity for employees to develop their job through promotion or new roles.

Career advancement — effect on motivation

It can motivate employees to perform well and gain new skills and knowledge.

Investment in training — motivation strategy

Occurs when employees increase their skills and knowledge to perform their jobs better.

Support — motivation strategy

Managers encourage employees and mentor them to overcome problems and take opportunities.

Sanctions — motivation strategy

Punishments applied when employees fail to meet business objectives.

Sanctions — examples

Pay penalties, lost promotion opportunities, repeating tasks or dismissal.

Performance management

The process of assessing employees' work to ensure organisational objectives are met.

Management by objectives

A participative performance management approach where employees are assessed based on clearly defined goals agreed by both management and employees.

Appraisals — purpose

Measure employee performance against set standards determined by management.

Appraisals — HR decisions

Provide a basis for decisions about pay, promotion or dismissal.

Self-evaluation

Employees assess their own performance, strengths and weaknesses.

Employee observation

An objective perspective of employee performance through observation and recording of work behaviour.

360-degree feedback

Feedback on performance provided by subordinates, colleagues and superiors.

Employee objective — income

Employees work to earn an income.

Employee objective — conditions of employment

Employees seek good working conditions.

Employee objective — job security

Employees want stability in their employment.

Employee objective — skills development

Employees aim to develop their skills and knowledge.

Employee objective — career advancement

Employees want opportunities for promotion or new roles.

Training

The process of providing employees with the knowledge or specific skills required to do a job.

Training — purpose

Developing employees' skills and knowledge so they can perform their role more efficiently and effectively.

On-the-job training

Learning from existing employees within the business to perform the job better.

On-the-job training — examples

Coaching, tutoring, mentoring, role modelling, job rotation, apprenticeships, planned work activities, special assignments and committees.

Off-the-job training

Learning away from the business to improve ability to perform the job.

Off-the-job training — examples

Conferences, lectures, simulations, role plays, workshops, online tutorials, and TAFE or university seminars.

Termination

The ending of employment of an employee.

Termination — legal requirement

Termination must be handled fairly and within the law.

Termination types

Termination can be voluntary or involuntary.

Voluntary termination examples

Retirement, resignation and redundancy.

Involuntary termination examples

Dismissal and redundancy.

Retirement

When an employee permanently leaves the paid workforce.

Resignation

The act of leaving a workplace, usually to move to another job.

Redundancy

A termination occurring when an employee leaves because their job no longer exists.

Redundancy — causes

New technology, downsizing, relocation, closure or restructuring.

Voluntary redundancy

Employees are offered the option to leave when the business wishes to reduce its workforce.

Involuntary redundancy

Employees are required to leave the business against their will due to workforce reduction.

Dismissal

Termination by the employer against the will of the employee due to poor performance or illegal behaviour.

Summary dismissal

Immediate termination without notice due to serious misconduct.

Unfair dismissal

Dismissal that occurs in an unjust, harsh or unreasonable manner.

Authority handling unfair dismissal cases

The Fair Work Commission.

Entitlement considerations

Rights to benefits employees receive when leaving employment according to their contract.

Redundancy pay — entitlement

Employees are entitled to redundancy pay when leaving the workforce.

Severance packages

Based on the employee's length of service under National Employment Standards or enterprise agreements.

Entitlement examples

Notice period, accrued leave payout, superannuation payments and unpaid wages.

Authority ensuring legal entitlements

The Fair Work Ombudsman.

Transition considerations

Support provided to employees moving from one job or situation to another.

Transition considerations — CSR application

Businesses should consider both affected employees and the morale of remaining workers.

Outplacement services

Services helping employees find new employment such as resume writing, interview skills and job searching.

Retirement transition support

Counselling, pension advice, lifestyle planning and superannuation advice.

Other transition support examples

Retraining programs, emotional support, networking opportunities and financial planning assistance.