VCE Business Management - Unit 3: Area of Study 2B Summary

Human Resource Management (HRM)

Performance Management Strategies

  • Objective: Improve business and employee performance by aligning individual objectives with business goals.
  • Key Strategies:
  • Management by Objectives (MBO)
  • Appraisals
  • Self-Evaluation
  • Employee Observation
Management by Objectives (MBO)
  • Defines specific objectives collaboratively set by management and employees.
  • Employees are evaluated on their achievements against these objectives.
  • Adapts tasks and provides training to help employees meet their goals.
Appraisals
  • A documented evaluation of job performance, usually annual.
  • Objectives:
  1. Provide feedback
  2. Determine promotions/pay rises
  3. Monitor selection
  4. Identify training needs
  5. Set new objectives
Self-Evaluation
  • Employees assess their own performance against set objectives.
  • Encourages personal growth and opens communication between management and employees.
Employee Observation
  • Collects feedback from various stakeholders (e.g., 360-degree feedback).
  • Provides comprehensive insight into employee performance.

Termination Management

  • Types of Termination:
  • Retirement: Voluntary decision to leave the workforce.
  • Redundancy: Job no longer exists due to business decisions.
  • Resignation: Employee chooses to leave.
  • Dismissal: Forced termination due to performance issues.
Key Considerations for Termination
  • Entitlement Considerations: Ensure that employees receive all accrued benefits (e.g., annual leave).
  • Transition Considerations: Provide support services (e.g., exit interviews, references) to help employees transition.

Roles of Participants in the Workplace

  • Human Resource Managers: Manage relations, facilitate negotiations, resolve disputes.
  • Employees: Contribute to business objectives, vote on agreements, follow policies.
  • Employer Associations & Unions: Support employers/employees, negotiate agreements, advocate for rights.
  • Fair Work Commission: Ensures compliance with employment laws, resolves disputes.

Awards and Agreements

  • Awards: Legally binding minimum requirements for wages/conditions set by the Fair Work Commission.
  • Enterprise Agreements: Negotiated wage and condition agreements tailored to specific businesses.
  • Individual Contracts: Specific agreements between employer and individual employees.
  • National Employment Standards (NES): Sets minimum employment conditions for all employees.

Dispute Resolution Process

  • Definition of Dispute: Conflict arising from disagreements on workplace issues.
  • Importance of Resolution: Unresolved disputes can escalate into industrial action (e.g., strikes, work bans).
  • Common Methods of Resolution:
  • Mediation: An independent third party facilitates a resolution without making binding decisions.
  • Arbitration: An independent third party makes a legally binding decision after hearing both sides.
Key Points about Mediation and Arbitration
  • Mediation aims for self-resolution; arbitration results in a decision imposed by the mediator.
  • Mediation is non-binding, while arbitration is legally binding.

Keep these points in mind for your SAC and ensure to understand the application of these concepts in real-world scenarios.