1
Q
Human resource management
A
The management of the total relationship between an employer and an employee in order to achieve the strategic goals of the business
2
Q
Operations (interdependence)
A
- Operations monitors employee performance and initiates training and development programs
- HR ensures that the staff recruited are equipped with the relevant skills and experience necessary for the job
3
Q
Marketing (interdependence)
A
- Staff must be skilled and motivated to develop products
- Marketing process determines skills required
- Staff are the public face of the business and can influence consumer choice
4
Q
Finance (interdependence)
A
- Recruiting the right staff benefits profitability
- Budgets allocate training and development funds, workplace education funds, WHS funds and remuneration
5
Q
Outsourcing
A
Using a third party to carry out business functions
+ Access to resources unavailable internally
+ Cost reductions
+ Easier to increase output on demand
+ More efficient
– Negative publicity
– Creates redundancies
– Can cause unproductivity
6
Q
Contractors
A
An external provider of services to a business
7
Q
Insourcing
A
Bringing outsourced business functions back into the business
8
Q
Employees
A
People who supply physical labour, skills and knowledge in return for an income such as a wage or salary. Changes that have occurred as a result of a more educated and rights aware workforce include:
- Flexibility to work from home, job share and alter hours
- Increase in casual employment and decrease in full-time employment
- Provision of childcare
- Australia’s ageing population opening up opportunities for young people
9
Q
Employers
A
Group that hires workers in order to perform certain business tasks
- Some employers outsource their HRM but large businesses usually have a HR division
10
Q
Trade unions
A
Body that aims to protect a particular group of workers’ rights and conditions
- Unions are generally affiliated with the Australian Council of Trade Unions who lobbies governments towards policies which would improve workers’ pay and conditions
- Casualisation has led to a decline in union memberships
11
Q
Employer associations
A
Organisations that lobby governments in favour of business and employer interests
12
Q
Governments/government organisations
A
- FWA is the national industrial tribunal that makes decisions on minimum wages, enterprise agreements and their certification as well as arbitration on major industrial disputes
- Industrial Relations Commission handles all state issues and disputes in NSW according to the Industrial Relations Act 1996
13
Q
Society
A
- Policies by political parties can swindle voters in elections
- IT and community issue attention are presenting greater pressure towards businesses
- Discrimination and harassment are also more noticed and can influence societal perception
14
Q
Boom economy
A
When demand is high and businesses invest:
- Labour demand increases
- Encouraged to offer extra remuneration to attract recruits
- Demand for training services increases
- Employers may be expected to work overtime to meet demand
15
Q
Bust economy
A
When demand falls, businesses reduce supply levels and hence lower investment:
- Job losses
- Hours reduced
- Job security falls
- Increase in outsourcing
- Remaining staff will have to cover more jobs
16
Q
Structural change
A
Change in nature and pattern of production in an economy, including growth in the services sector
- Increased training and development required for upskilling
- Increase in manufacturing outsourcing
- Changes brought by technological advancements
17
Q
Globalisation
A
Integration of global economies into a single market
- Increased competition
- Increased outsourcing, leading to an increase in redundancies and retrenchments
- Increased workplace diversity
18
Q
Technological change
A
An accepted business practice that is the main driver of productivity improvements
- Greater flexibility
- New workplace rules regarding online behaviour
- Impacts work-life balance and can lead to burnout
- Altered job descriptions
- Computer literacy required
- Redundancies due to capital-labour substitution
19
Q
Career flexibility and job mobility
A
Businesses are more likely to offer part-time jobs to workers in favour of an improved work-life balance. WFH is becoming more popular as employees are able to perform aspects of their job at home.
- Businesses need to upgrade IT Services to maintain security
- New WFH policies need developing
- More part-time and casual work
20
Q
Feminisation of the workplace
A
The past three decades have seen an increase of 20% in female workforce participation as a result of changing social expectations, increased education levels and childcare access and more work arrangement flexibility
- All policies comply with EEO principles
- Must be flexible with family friendly hours
- Must adhere to new legislation regarding work-life balance
21
Q
Ageing workforce
A
A growth in the average age due to sustained low fertility and increasing life expectancy will see a shortage of skills arise over time
- May require more flexibility
- Upskilling existing staff members
- Incentivising retirement postponsement
22
Q
Living standards
A
Higher living standards have increased employee wage expectations as well as improved working conditions
- Need to be prepared to meet expectations otherwise industrial action could arise
23
Q
Acquisition (ethics)
A
- Recruitment and selection must be based on criteria where the most suitable individual is chosen for a position
- Hiring policies and criteria must be public and transparent
24
Q
Development (ethics)
A
- Training and development must be available to all employees, not just a few
25
Maintenance (ethics)
- Allowing for individual needs through flexible work arrangements
- Offering equitable performance-based rewards
- Fostering teamwork and empowerment
- Creating challenging and meaningful work to employee satisfaction
- Ensure staff collaboration in any proposed changes
26
Separation (ethics)
- Redundancies must be genuine
- Unfair dismissal cases can be avoided through openness and honesty
27
Privacy
- Employers must maintain the privacy of employees despite access to personal information
28
Common law obligations
Employer:
- Providing work
- Payment of income and expenses
- Duty of care
- Meeting industrial relations legislation
Employee:
- Obey lawful and reasonable commands
- Use care and skill in the performance of work activities
- Act in good faith and in the employer's interests
29
Fair Work Act 2009
- National awards for specific industries and occupations
- National minimum wage ($21.38 per hour/$812.60 per 38-hour week)
- Unfair dismissal protection
30
National Employment Standards
- Maximum weekly hours (38)
- Requests for flexible working arrangements
- Offers and requests to convert from casual to permanent employment
- Parental leave and related entitlements
- Annual leave
- Personal/carer's leave, compassionate leave and unpaid family and domestic violence leave
- Community service leave
- Long service leave
- Public holidays
- Notice of termination and redundancy pay
- Fair Work Information Statement and Casual Employment Information Statement
31
Modern awards
Determination that explains the legally enforceable minimum terms and conditions that apply to a business or industry
- Covers a whole industry
- Underpins all employment contracts
- Established by FWC
32
Enterprise agreements
Collective agreements made at a workplace level between an employer and an employee group about employment terms and conditions
- Covers a workplace
- Modified version improving the modern award
- FWC approves after passing the Better Off Overall Test (BOOT), which is a comparison of the EA against the MA where collective bargaining occurs
- Has an expiry date within four years
33
Types of enterprise agreement
- Single-enterprise agreements
- Multi-enterprise agreements
- Greenfield agreements
34
Individual common law contract
Civil contract where the employee agrees to perform work for the employer in exchange for payment
- Covers an individual
- Must contain NES
- More flexible than MA or EA
- Most common for private sector and higher income workers
- Disputes go through common law courts not FWC
35
Independent contractors
Undertake work for others without the same legal status as employees
- Also known as consultants or freelancers
36
Casual contracts
Short-term, irregular or uncertain employment without leave entitlements
37
Part-time contracts
Have a continuing employment contract, working under 38 hours a week
- Entitled to employee entitlements on a pro-rata basis
38
WHS Act 2011
Designed to ensure a safe workplace to prevent preventable deaths and injuries
- Failure to comply can result in fines up to $3 million for corporations and $300,000/5 years imprisonment for individuals
- Administered by SafeWork Australia and SafeWork NSW
39
WHS obligations
Employer:
- Workplace is safe, including safe to use materials and facilities, protective clothing, adequate training and supervision provision
- Workers' compensation insurance
- WHS rule enforcement committees
- Written WHS policy
- On-site non-employees must not be risk exposed
40
Workers' compensation
Safety Rehab and Compensation Act 1988 (Cwlth) and Workers' Compensation Act 1987 No. 70 (NSW) govern the process of employees getting financial compensation for work-related injuries. Ensures HRM must:
- Have a policy with a licensed insurer
- Have an injury management plan and return to work plan for injured workers
- Pass on compensation ASAP
- Insured by CareNSW and regulated by State Insurance Regulation Authority
41
Anti-discrimination
Unlawful workplace discrimination occurs when an employer takes adverse action against an individual because of features such as race, sex, age and sexual preference. Support agencies include:
- Australian Human Rights Commission
- Anti-Discrimination Board NSW
- Employers with more than 100 employees and all higher education institutions are obliged to develop Affirmative Action programs and provide a report to the Equal Opportunity for Women Agency
42
Resolution of workplace discrimination claims
Individuals who suffer discrimination may take a range of actions, internally, formally or informally which can lead to:
- Formal apology
- Counselling
- Official warnings
- Mediation/conciliation
- Disciplinary action
43
Acquisition (process)
Critical process of identifying needs, attracting, recruiting and selecting the right staff for roles in a firm. This is at the front end of a firm's HR practices
44
Identifying needs
HR must analyse both the internal and external environments to determine HR firm requirements to meet strategic goals. Involves both internal and external considerations
45
Recruitment (process)
Process of locating and attracting a candidate pool for the role
- Involves internal and external along with advertising
- Firm reputation can influence desirability to work for
46
Selection
Process of filtering information on recruited applicant pool
- Involves resumes, interviews, background checks and referee checks to determine the best candidate
47
Placement
Placing or locating the employee in a position that best utilises their skills, experiences and personality
48
Development (process)
Process of enhancing employee skills through training, mentoring, coaching and performance management
- Focused upon employee retention through increased satisfaction and continued performance improvement; higher motivation and skills improve performance
49
Induction
Initial training/orientation for new recruits where information on practices, processes, work culture, location, code of conduct and expectations are provided
50
Training (process)
- Enhances attitudes and performance
- Adapts workforce to changing business conditions to ensure competitive edge is retained
- Refers to improving skills for current job
51
Organisational development
- Altering systems and hierarchies to improve employee autonomy and retain talented staff
- Provide learning opportunities and targeted delegation of responsibility to identified future leaders
52
Coaching
Establishing systems to ensure lower skilled workers can improve their skills and performance in specific work roles
- Typically focused on the transferral of set skills in a more impersonal relationship with the firm
53
Mentoring
Establishing systems to pair younger employees with those more experienced
- Helps transfer knowledge and career growth advice
- Typically focused more on a personal relationship
- Increases loyalty to the firm
54
Performance appraisals
Systematic process of analysing and evaluating employee performance for strengths and weaknesses
- Provides clear direction in terms of training and development for staff
55
Maintenance (process)
Process of attending to the wellbeing, safety and health of employees in order to keep employees at the business.
- Focuses on communications management, conflict management and legal compliance.
Involves:
- Developing record systems to manage employee information
- Legislation compliance in remuneration and conditions
- Catering to flexibility whilst ensuring organisational goals are met
- Performance appraisal system management
- Equitable reward and incentive distribution
- Establishing grievance procedures to deal with workplace conflict
56
Separation (process)
The ending of the employment relationship
- Last stage of the HR cycle
- Can be expensive and time consuming so business try to limit separation rate
57
Voluntary separation
When an employee leaves on their own accord
58
Retirement
The employee has decided to give up full--time or part-time work
- Australia has no official retirement age
59
Resignation
Employee leaves job for reasons like needing a change in their lives of moving interstate
- Employee is required to give usually 1-4 weeks notice to their employer about their intention in leaving
60
Voluntary redundancy
An employee's existing job is no longer required by the firm, possibly due to technology or a restructure, so they may be offered a redundancy package and find it in their best interests to leave the job earlier than planned
61
Involuntary separation
When an employer forces an employee to leave
62
Involuntary redundancy
Termination of employment due to the firm closing down or the job not being required due to rationalisation, restructuring or new technology
- The worker's skill is outdated and no longer required
63
Retrenchment
Employment is terminated because the job/work is no longer required
- Can arise due to a lack of work, fall in demand for product, restructuring or technology
- Payouts are required based on position and tenure length
64
Dismissal
An employee's contract is terminated due to unacceptable conduct or behaviour
65
Summary dismissal
Immediate termination of contract without notice
- Caused by theft, gross negligence, absenteeism, drunkenness or misconduct
66
Dismissal after a series of warnings
Employee may be issued with a written warning and provided with counselling/assistance to improve behaviour
- Can arise from issues like repeated lateness or failing to perform required duties
- After three warnings the employee may be dismissed
67
Unfair dismissal
If a dismissal is deemed "harsh, unjust or unreasonable" as per government regulation, such as discrimination, it can be referred to the FWC or AIRC to be appealed and potentially overturned
68
Leadership stule
The way a manager approaches their work; how they work with and through others to achieve business goals
69
Autocratic style
- Very hierarchical and inflexible
- Leader makes decisions for those below allowing little employee contribution
- Classical/scientific management approach
- May suit groups requiring constant direction and guidance or those that are inexperienced
70
Democratic style
- More inclusive with employee participation, allowing for employee empowerment
- Boss-employee relationship is built on mutual respect, trust and recognition of contribution
- Behavioural management approach
- Involves multi-skilling to enhance morale and job satisfaction
- Suits government departments and insurance companies
71
Laissez-faire
- Manager simply 'lets things be', with little to no guidance or emphasis on hierarchical structure
- Best suited to management of professional/para-professional employees who are highly motivated and skilled in their profession, like law firms and school teaching
72
Job design
Process of designing the specific content and responsibilities of a job and how it will interact with other jobs and employees
- Depends upon job analysis and is closely determined in partnership with operations
73
Core elements of a well-designed job
- Challenge
- Variety
- Discretion
- Autonomy
- Well-resourced and supported
- Social interaction
- Opportunities to take on extra responsibilities
74
Job rotation
Moving employees through different divisions of an operation to learn new skills and improve challenging role nature
75
Job enlargement
Employees given additional tasks on top of existing work requirements to add challenge to role
76
Job enrichment
Employees given more responsibility and autonomy over certain role aspects
77
Semi-autonomous work groups
Distribution of responsibility across a core employee team working together to establish high performance professional relationships
78
Cross-functional team-based structures
Full delegation of responsibility and accountability to a project team (challenge and reward of success)
79
Recruitment (strategy)
Strategic process of locating and attracting the right quantity and quality of staff to apply for employment vacancies in a firm
- Critical for business performance, culture and employee morale
- Done wrong can lead to increased costs and low productivity
80
Internal recruitment
Target current employees, former applicants and former employees
+ Build loyalty
+ No time spent on orientation
+ Cheaper and faster
+ Recognises and rewards staff
+ Less risk of external appointment
+ No productivity loss
+ Business only needs to hire at base level
– Can lead to rivalry and tension
– No new ideas brought in
– May reinforce negative culture
– Need established framework and merit-based appraisal system
– Attracts significant number of internal applicants
81
External recruitment
Acquiring new candidates through advertising methods
+ Wider applicant pool
+ New ideas and perspectives
+ Can obtain required skills quickly
+ Adds diversity
+ Dilutes internal politics
+ Builds brand through publicity
– Early productivity loss
– Higher culture mismatch risk
– Unknown staff risk
– Increased time and effort required
– Legal claim risk
81
External recruitment
Acquiring new candidates through advertising methods
+ Wider applicant pool
+ New ideas and perspectives
+ Can obtain required skills quickly
+ Adds diversity
+ Dilutes internal politics
+ Builds brand through publicity
– Early productivity loss
– Higher culture mismatch risk
– Unknown staff risk
– Increased time and effort required
– Legal claim risk
82
General skills
Attracting staff with skills, attitudes and behaviours that are a good cultural fit for the firm, learning their role's specifics on the job. Includes flexibility, communication skills, social confidence and work under pressure.
- Can lead to time and productivity loss in learning the role's specific nature
83
Specific skills
Targeting recruits with specific skills to fill organisational gaps
- Faster productivity gains but risk of poor cultural mismatch
84
Training (strategy)
Efforts to develop skills, knowledge and attitudes that lead to superior work performance in an employee's current role in the business as it is currently structured
- Can be both internal or external
85
Development (strategy)
Efforts focused upon enhancing skills and qualities to upgrade employee capability in line with changing needs and future strategic direction of the business
- Identify and develop employees to move into higher roles
86
Current skills
Employees taught skills to do job better such as learning new technologies and processes
+ Allow employees to do job better
+ Can motivate staff as they feel they can improve
+ Leads to higher productivity and work standard
– May get bored learning same things
– Further improvements can become minor once competent
87
Future skills
Employees taught skills that can be used in the future, such as management and leadership skills
+ Great for succession planning
+ Can be a very effective motivational tool
+ Reduce staff turnover
– Employees may leave the business before applying their new skills
88
Performance management
Systematic process of gathering, analysing and evaluating data and information on employee performance. Required in order to determine the relative value for money that each employee represents to the firm
- Usually undertaken poorly and disliked by employees
- HR need to ensure it is equitable and unbiased
89
Developmental performance management
- Focused upon using data to identify areas for future development
- Improve firm effectiveness by targeting weaknesses
- Annual feedback and shared discussion of career trajectory
90
Administrative performance management
- Use of data in allocating rewards and pay
- Data collection and record keeping systems required to manage more effectively
91
Rewards management
Implementation of an incentive structure to build employee motivation, target specific operational aspects, build firm loyalty and provide opportunities to reward hard work
92
Monetary rewards
Rewards which arise directly, through pay, or indirectly, through benefits
Direct:
- Base pay
- Incentive pay (bonuses, commissions)
- Allowances (overtime, shift work)
- Pay rises
- Share plans
- Profit sharing
- Gainsharing
Indirect
- Insurance
- Superannuation
- Medical and health
- Childcare
- Employee assistance
- Flexible work schedule
- Holidays
93
Non-monetary rewards
Rewards which do not have financial value
Job:
- Challenge
- Interesting work
- Responsibility
- Recognition (e.g. employee of the month)
- Advancement
- Performance feedback
Environment
- Good HR practices
- Safe working environment
- Fair treatment
- Career security
- Learning opportunities
- Open communication
94
Extrinic reward
An external motivator that requires transferring monetary value to an employee
- Can be interpreted as buying loyalty and rejected
95
Intrinsic reward
Sense of satisfaction and drive employees feel that is derived from the role itself
- Cost the firm only time and consideration
- Validates hard work making the employee feel valued
96
Key reward considerations
- Performance management systems
- Rewards appropriate behaviour
- Group incentives vs individual
97
Global strategies
HR departments that expand/operate globally must consider the increased complexity, levels of core firm control and the cost and skill of global labour forces
98
Polycentric staffing
Host-nation staffing with parent-nation management
- Allows control, some degree of HN input but limits upwards mobility for HM staff
99
Geocentric staffing
Utilises staff most suited to the role without factoring in location of origin
- Generates global pool of staff but complex to manage
100
Ethnocentric staffing
Sole use of parent-nation staffing in global operations
- Easier to control and administer, no HN knowledge, communication challenges
101
Workplace disputes
Conflict at any level in the workplace involving a key employee-employer disagreement
102
Causes of workplace disputes
- Remuneration
- Employment conditions
- Job security issues
- Health and safety
- Managerial policy
- Union issues
- Political/social issues
103
Types of dispute
- Formal – FWC receives paperwork recognising it
- Informal – Within firm only
- Overt – Clearly recognisable actions
- Covert – Beneath the surface, not obvious
- Strikes – Organised labour is removed as leverage
- Lockouts – Employer closes doors to unionised workers
104
Dispute resolution processes
The strategies and systems used to resolve issues in the workplace as quickly as possible to ensure minimal productivity disruption
105
Grievance procedure
Formal procedures generally written into an award/EA that state processes to resolve workplace disputes
106
Negotiation
Discussion between disputing parties in an attempt to reach an agreement without third party intervention
- Most cost-effective
- Least disruptive
- Disparity can lead to stress, tension and fear of retribution
107
Mediation
Confidential discussion of issues in a non-threatening environment with presence of a neutral third party
- More expensive and formal
- Allows for objectivity from obstinate third party
108
Conciliation
Formal version of mediation where the third party is the FWC who help reach an agreement
109
Arbitration
Dispute is heard in court and a legally binding resolution is made
- Very expensive and time consuming
