Human Resource Management and Marketing Review

Stakeholders in the Human Resource Framework

• Employers: The individuals or organizations that hire and oversee employees.

• Employees: The individuals provided with employment under a contract of service.

• Employer Associations: These act as a "union for employers," providing support and representation for business owners in industrial relations matters.

• Unions: Organizations that represent the interests of employees in the workplace to negotiate better pay and working conditions.

• Government Organisations: These entities are responsible for the wellbeing of employers throughout Australia and oversee the legislative framework governing work.

Legal Influences and the Current Framework

• Fair Work Laws: The current legal structure is defined by the National Industrial Relations system, primarily governed by the Fair Work Act.

• The Employment Contract: This is the legally binding agreement between an employer and employee. It is underpinned by several layers of regulation:

  • National Employment Standards (NES): These provide the absolute minimum entitlements for all employees in Australia.

  • National Minimum Wage: The lowest legal rate of pay for employees.

  • Industry Awards: These set the minimum pay and conditions for an entire industry or occupation. They cover the majority of Australian employees.

  • Enterprise Agreements: These set minimum pay and conditions for a specific workplace. They are negotiated between the employer and a group of employees and must be approved through a formal process.

  • Individual Employment Contracts: These provide additional conditions for an individual employee. Critically, these contracts cannot reduce or remove the minimum entitlements established by the NES or relevant awards.

• The Better Off Overall Test (BOOT): This test is conducted to ensure that an agreement is valid. It considers whether the terms of a new agreement are more beneficial to employees when compared to the terms of the relevant industry award.

Work Health and Safety (WHS) and Workers Compensation

• Legislative Responsibility: Employers have a mandatory duty of care that they must fulfill under the Work Health and Safety Act $2011$.

• The WHS Body: This Act established a specific body tasked with researching and developing national standards, creating codes of practice, and ensuring a safe workplace environemnt.

• Consequences for Breach of WHS Policies:

  • Employees: A breach of WHS policy is considered valid grounds for dismissal. Employees may also face personal fines. If a breach causes injury, it may lead to criminal charges.

  • Employers: Businesses may have work sites closed until recertification is achieved. They face significant fines and potential criminal charges for breaches of safety protocols.

Anti-Discrimination and Equal Employment Opportunity

• Definition: Discrimination occurs when individuals are excluded from an opportunity due to a specific characteristic.

• Key Legislation:

  • Race Discrimination Act $1975$

  • Sex Discrimination Act $1984$

  • Disability Discrimination Act $1992$

Economic Influences

• The Economic Cycle: The demand for labour is directly linked to the state of the economy.

  • Economic Growth: As growth increases, the demand for labour increases. Consequently, businesses often offer higher wages and better conditions to attract staff.

  • Recession: When demand falls, businesses typically downsize their workforce and freeze wages.

• Adaptation: Businesses must constantly adapt their workforce size, skill sets, wages, and flexibility based on prevailing economic conditions.

Technological and Social Influences

• Technological Influences:

  • Technology improves efficiency and productivity.

  • It causes job transformation, leading to the redundancy of certain roles while creating entirely new ones.

  • It has fostered the growth of remote work, telecommunications, and the use of digital platforms.

• Social Influences:

  • Workforce Composition: There is a notable increase in part-time and casual work. There is also increased participation by women and older workers.

  • Ageing Workforce: This demographic shift leads to potential skill shortages in the economy.

  • Employee Demands: Modern employees increasingly demand flexible hours, remote work options, and family-friendly policies.

Ethics and Corporate Social Responsibility (CSR)

• Ethical HRM: This involves the fair and legal treatment of all employees.

• Key Workplace Issues: These include discrimination, harassment, and unsafe working conditions.

• Practices: Ethical practice includes providing a safe environment, ensuring fair pay, and maintaining equal opportunity.

• Benefits of Ethical HRM:

  • Higher employee motivation.

  • Lower risk of legal complications.

  • Improved business reputation.

Human Resource Processes

• Acquisition: The process of attracting and hIring the right staff.

• Development: Enhancing the skills and knowledge of employees.

• Maintenance: Providing the conditions and rewards to retain staff and keep them productive.

• Separation: The process of employees leaving the business, whether voluntarily or involuntarily.

Human Resource Strategies and Indicators

Recruitment and Training Details

• Internal Recruitment:

  • Advantages: Cheaper, motivates existing staff, knowledge of business is already present.

  • Disadvantages: Limited new ideas, potential for workplace tension, no new skills brought into the firm.

• External Recruitment:

  • Advantages: Brings in new ideas and skills, accesses a larger talent pool.

  • Disadvantages: Expensive, longer process, requires induction and training.

• Induction: The introduction of a new employee to the workplace and its specific policies.

• Training Focus:

  • Current Skills: Provides an immediate boost in productivity and allows employees to perform current roles more efficiently. However, it may be repetitive.

  • Future Skills: Provides skills for future roles and career stages. It allows for succession planning and flexibility, though there is no benefit if the employee leaves the business quickly.

Rewards and Leadership Styles

• Financial Rewards: Includes wages, pay increases, profit sharing, superannuation, and insurance.

• Non-Financial Rewards: Includes recognition, promotions, flexible work arrangements, positive culture, and challenging work.

• Leadership Styles:

  • Autocratic: Managers control all decisions. This allows for fast decision-making but offers low employee input.

  • Democratic: Employees are involved in decision-making. This leads to better morale and teamwork, but slower decisions.

  • Laissez-Faire: Employees have freedom to make decisions, which encourages creativity but offers less management control.

Performance Management Models

• Definition: Focusing on developing the individual skills and abilities of employees to improve turnover and motivation.

• Developmental Model: Focuses on using data to develop employee skills.

  • Uses: Justifying staffing selection, identifying training needs, providing feedback.

  • Benefits: Overcoming performance weaknesses and building self-efficacy (culture).

• Administrative Model: Assesses business progress toward long-term goals and identifies areas for improvement.

  • Benefits: Identifying/retaining talented staff (reduces turnover) and linking rewards to performance.

Workplace Disputes and Objectives

• Causes of Disputes: Remuneration, working conditions, job security, WHS issues, and workplace policies.

• Resolution Methods:

  • Negotiation: One party acknowledges the problem; a solution or compromise is reached.

  • Mediation: A neutral third party hosts talks to maintain control but cannot recommend or enforce solutions (non-binding).

  • Fair Work Commission (FWC): The formal industrial relations tribunal.

• HR Objectives: Improve productivity, reduce staff turnover, increase employee satisfaction, and achieve overall business goals.

Case Study: Computers Plus Pty Ltd

• Context: Large Australian manufacturer of laptop computers with $400$ staff members.

• Issues: Poor publicity from customer complaints regarding order delays and faulty products; loss of market share; failed financial objectives.

• Staffing Issue: Talented staff are being headhunted by competitors.

• Industrial Relations: Negotiation for a new enterprise agreement is stalled; after $4$ meetings with the union, no agreement has been made.

• Report Recommendations:

  • Maintenance: Crucial to retain staff and boost culture. Suggested strategies include interesting job design and monetary/non-monetary rewards.

  • Marketing Processes: Utilise situational analysis to identify the cause of faulty laptops and delays. Establish marketing objectives (increased sales) and marketing strategies focused on quality control to rebuild reputation.

Case Study: Gym Plus

• Context: Urban network of $18$ outlets. Business is in the maturity stage with aging equipment.

• Demographics: All trainers and $95 \%$ of members are men.

• Management Proposal: Attract women via a line of activewear and "female only" classes led by women instructors.

• Employee Conflict: Existing staff are unhappy, feel unconsulted, and believe the changes will "soften" the gym's image.

• Report Focus:

  • Market Research: Assess the viability of the female market plan.

  • Ethical Issues: Consider "good taste" in advertising when promoting to a new demographic.

  • HR Strategies: Recommended to use rewards and a behavioural/democratic leadership approach to consult trainers, reduce turnover, and improve corporate culture.