Professional Documents
Culture Documents
Topic 1A
Chapter 4 The Human Resources Management Function Factors Involved
Ceo
Marketin
g
Director
Financial
Control
Operatio
ns
Personnel
Contemporary HMR
HMR is a strategic role. The HR Manager reports directly to the CEO and works
closely with other upper level managers
Senior Management
CEO
Financial
Controlle
r
Marketin
g
Director
Operatio
ns
HRM
It Makes Cents
People Service Profits Philosophy
Achieve
Organisation
al Goals
Invest in
Humans
Employee
Expertise
Employee Expectations
Thing people want in the workplace:
- Safe Work Environment OH&S
- Job Security
- Flexible work conditions
Employee expectations are thing employees require their employers to do or
provide during their employment.
These include:
1. Honesty & fairness
2. Safety
3. Training
4. Correct payment, etc.
Changing Expectations
Todays workforce
1. More educated
2. Want to be challenged
3. Want more autonomy
4. Aware of OH&S
5. Increased equity/gender equality
6. Work life balance
Industrial Democracy/Empowerment
- Employees demand the right to be involved in the decision making process.
- Acknowledgement that workers can take initiative and make decisions for
themselves.
- This places new demands on HR managers when recruiting, developing and
terminating staff.
Employee Conditions
(part of the employment agreement)
Hours of work
- Minimum?
- Overtime?
Leave Entitlements
- Sick?
- Long Service?
- Family?
- Holiday?
Other Benefits
- Flexitime?
- Maxiflex?
- Bonuses?
Achieving Work Life Balance
- Work Life Balance is achieving the right combination of hours spent at work
and hours spent in personal life.
Better Work Life Balance:
- Increased productivity & decreased absenteeism
- Increased retention & decreased costs of re- Increased motivation & decreased stress
KPIs
employing
OH&S
- Employers must make sure they take all possible steps to ensure workplaces
are safe for workers.
This Includes:
- Maintaining machines & equipment in proper working order.
- Training staff to operate machines correctly.
Why get OH&S right?
3 key reasons:
1. The law says so
2. It makes good economic sense
3. It is the ethical thing to do.
Job Security
- Job Security refers to workers feelings/beliefs about whether they will lose
their job or not.
- The threat of losing your job is the greatest setback to employee loyalty, even
to those not in immediate danger.
- Perceived security is receiving increased recognition as a key determinant of
employee work outcome.
- Job Insecurity decreases productivity and increases stress and ill health of
workers.
Employee Motivation
Factors that drive workers to achieve in the workplace
Motivation
Motivation is the force that drives people to exert effort to achieve desired end.
Maslows Need Hierarchy
Sel
Sel
ff
Act
Act
ual
ual
isa
isa
tio
tio
n
n
Self
Esteem
Self Esteem
Belonging
Belonging
Safety
Safety
Physiological
Physiological
3. Working conditions
4. Job security
5. Policies & procedures
Getting the environment right allows motivators to function.
Hertzberg 2: Creating Motivation
Motivators:
- These are things that will provide workers with motivation and energise them
in the workplace.
Examples:
1. Responsibility
2. Important/rewarding work
3. Achievement
4. Recognition
Lockes Goal Setting Theory
Theory says that setting challenging but achievable goals motivates people to
improve performance.
Focus on:
1. Challenging
2.
S
s
lb
Im
e
P
rfo
n
p
a
c
v
F
d
k Achievable
tiG
M
Imp
rfo
e
P
e
v
ro
c
n
a
m
e tG
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e
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a
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ao
tiv
n
Topic 1B
a
M
g
E
n
liT
tb
s
rh
e
m
Ma
tg in
in
li s
b
ta
s
E
iT
h
e rm
t in
a
in
g g
n
HR Planning
- More than any other resource, people are what is critical to achieving an
organisations goals. Humans are the most important resource.
- Choosing the right staff is therefore the most crucial decision a HR manager
makes.
- The HRM must have a detailed knowledge of the position that needs to be
filled to best assess applicants for the job.
Planning HR Needs
The following questions need to be asked:
- How many workers are needed?
- What qualifications and skills are needed?
- When and where workers are needed?
HR Planning Considerations
Internal Factors:
- Future production
- New Equipment acquisitions
- Expansion
- Downsizing
- Current worker profiles (age, gender, etc.)
- Current staff turnover
External Factors:
- Economic outlook
- New technologies
- Changes to the law
Job Analysis
- Job Analysis is a systematic study of each employees studies, tasks and
work environment.
It examines:
- Job activities
- Equipment needed
- Behaviours required
- Working conditions
- Level of supervision
Job Description is a written statement of tasks, duties and responsibilities.
Job Specification is a list of key qualifications, skills and expertise required for a job.
Job Description
Job Specification
Job Analysis
Job Design
A satisfying job includes interesting and challenging tasks,
and has a high level of autonomy over When and How questions.
What
What
Tasks?
Tasks?
How
How
Performe
Performe
d
d
Job
Desig
n
When
When
Performe
Performe
d
d
Who
Who
Performs
Performs
Job
Specificati
on
Recruitment
& Selection
Recruitment
- Recruitment is the process of finding suitable
applicants/candidates for the position.
The search for candidates may be Internal or External
The aim is to gather information about possible/potential employees.
Internal Search
- The consideration of existing employees as applicants for available positions.
- It can work as a good motivator for current employees.
- It is cost effective (i.e. cheaper).
- It is more likely to be effective in larger organisations.
External Search
- Organisations will choose the most appropriate method for them.
- An organisation wants to bring in new people.
Advertis
Advertis
e
e
Externa
Externa
ll
Search
Search
Graduat
Graduat
es
es
Agencie
Agencie
s
s
Selection
- This involves sorting through the list of applicants and choosing the most
appropriate applicant.
- It is important that you choose the applicant with the qualifications that best
match the position/job.
The Selection Process
Outsourc
Outsourc
e
e
Option
Option
s
s
Part
Part
Time
Time
Casual
Casual
Family
Leave
Full
Tim
e
Holida
y Pay
Sick
Leave
Long
Servic
e
Leave
Casual Employment
Advantages:
- Hourly rate of pay is usually higher
- Give flexibility to both employers and employees
- Increases the skill bank of the organisation
- Easier to discard underperforming workers
Disadvantages:
- Loss of benefits such as sick leave and long service leave
- Workers can be less committed and less motivated
Outsourcing
- Outsourcing is using a contractor to complete tasks rather than employing a
staff member
- A contractor is not an employee and therefore does not have the same rights
as an employee
- Contractors are paid a contract price and must account for their own taxation
- Contractors may work for more than one employer simultaneously
Remuneration Financial Reward
Remuneration is the financial reward a person gets for working for an organisation.
The National Employment Standards contain so minimum conditions each
employee must get.
Remuneration Package is the overall bundle of benefits an employee receives.
Remuneration packages will reflect the value of a workplace to the organisation.
Wage
Wage
Salary
Salary
Sacrifi
Sacrifi
ce
ce
$
Rewar
d
Salary
Salary
Benefit
Benefit
s
s
Enterprise Bargaining
EB allows variations to particular workplace as agreed by both the employer &
employees
Variations Include:
- Start and finish times
- Overtime
- Leave without pay
- Work from home
- Additional family leave
- Job sharing
Such variations can attract a different type of worker. E.g. A working mother
Not able to bargain for conditions less than the set minimums
Practices
Practices
Structure
Structure
Familia
r
Environmen
Environmen
tt
Policies
Policies
Culture
Culture
Good Induction
Good Induction is:
- Planned
- Organised
- Lead
- Controlled
The aim of induction is to make sure new employees are made comfortable as soon
as possible so that they do not leave.
The highest rates of staff turnover occur in staff that have been with the
organisations less than 6 months.
Focus on Training
Training
Benefits of Training
To the Worker:
1. Opportunities promotion and self improvement
2. Satisfaction perform tasks better
3. Challenge learning new things
4. Adaptable better able to adapt to change
OSCA
To The Organisation:
1. Improves work quality
2. Increases worker productivity
3. Better able to initiate and cope with change
4. Achieve objectives more easily
5. Reduce Costs
Technology and Training
- Effective introduction of new technologies requires workers to be trained
HMR must Plan, Organise, Lead & Control the training of workers in new
technologies
Training is expensive but essential
Untrained workers often resist change
Types of Training
On
the Job
On the
Job
ICT/Online
ICT/Online
Off
the Job
Job
Off the
Trainin
g
Action
Action
Learning
Learning
University
University
Industry
Industry
Training
Training
Competen
Competen
cy
cy
Motivate
Motivate
Integrate
Integrate
d
d with
with
objective
s
Cost
Effective
Equitable
R&
R
Clear
Defensibl
Defensibl
e
Relevant
Relevant
Consiste
nt
Potential Problems:
1. Where workers perceive their work & effort are not recognised
2. It may cause competition between workers rather than cooperation
3. Some performances are difficult to accurately measure and therefore reward
Poor systems can cause serious employee problems.
Reward
Reward
s
s
Effectiv
e PM
Skills
Skills
Training
Training
1
1
2
2
3
3
4
4
5
5
Management by
(mutually agreed)
objectives
Comparison Method
Expectations
Expectations
Awar
e
Policie
s
Ethic
s
4 Ways to Terminate
Resign
Resign
Dismiss
Dismiss
Terminatio
Terminatio
n
Options
n Options
Retire
Retire
Retrenchme
Retrenchme
nt
nt
Resignation
- This is where the employee chooses to terminate the employment relationship
- It is usual to give an agreed period of notice
- Notice varies according to the industry.
- There can be penalties for failure to give adequate notice in the form of
withholding of wages.
- Sometimes people are entitled to resignation benefits such as accumulated
long service leave and accumulated holiday leave when they resign.
Retirement
- This is similar to resignation except the employee is ceasing work and
accessing the aged pension and/or superannuation
- The qualifying age for me and women to access the aged pension is
progressively increasing such that by around 2020 the qualifying age will be
67 years for both men & women.
Retrenchment
(Redundancy)
- This is where the employer decides a position is no longer required and the
employee is made redundant.
- Redundancies may be voluntary (ask employees to be made redundant) or
involuntary (force a worker to be redundant.
- Redundant employees are entitled to compensation known as redundancy
package the value of this is usually linked to the length of service given by a
worker.
- The main reasons for retrenchments are technological advances and lost or
expired contracts.
Dismissal
The Employer terminates the employment agreement.
Summary Dismissal:
- Instant dismissal as a result of gross breach of discipline.
- Examples include: theft, violence, intoxication, misconduct, refusing to work,
etc.
Due Process:
- Employer initiated process of counselling that may result in termination or
resolution of the issue.
- This is a formal process that has clear steps that must be followed and
documented.
Unfair Dismissal
- Unfair Dismissal is where the termination of employment by the employer is
harsh, unreasonable or unfair.
- Laws help protect workers from unfair dismissal.
- Dismissals considered unfair include things such as: illness, association with
legal organisations, race, religious beliefs, disability, pregnancy, failure to give
adequate notice of termination, etc.
Unfair Dismissal Remedies:
1. Reinstatement at the same or equivalent position.
2. Compensation (remuneration) in lieu of reinstatement.
3. Reinstatement and compensation for lost income.
Organisations usually want to avoid unfair dismissal and do this by following clear
guidelines for termination.
Topic 1C
Employee Relations
Introduction
What
-
is ER?
ER refers to the total relationship between the employer and the employee.
The ER process is used to build an effective workforce.
An effective workforce improves organisational performance.
Working Conditions
The accepted working conditions must:
1. Satisfy the needs of the workers
2. Allow the organisation to achieve its goals
ER Stakeholders
Employers & Employees
Internal Stakeholders
Employers:
- Manage ER issues on a daily basis.
- Include ER specialists in the HRM tea, (e.g. Industrial lawyers, etc.)
Employees:
- Workers are increasingly included in the negotiation and establishment of
working conditions.
- Societys values have shifted to make this involvement an expectation.
Operating Stakeholders
Trade Unions:
- Unions are called on to represent their members in the ER process and
agreements.
- Unions aim to get the best possible deal for the members (i.e. workers)
Employer Associations:
- Employer Associations originally counteracted the power if trade unions.
- Now, they provide advice to member organisations on issues relating to the
particular industry (e.g. Retail Traders Association and Sunday pay rates)
Macro Stakeholders
Peak Union Bodies:
- Australian Council of Trade Unions. ACTU
The ACTU:
1. formulates policies for the union movement
2. assists unions in the settlement of large disputes.
Peak Employer Bodies:
- Victorian Employers Chamber of Commerce & Industry. VECCI
- VECCI & other bodies perform a similar role for employers as that provided by
the ACTU for unions.
The Role of Government in ER
Make
ER
Make ER
Laws
Laws
Represen
Represen
tt
Australia
Administ
Administ
er
er
Policies
Policies
Gov
t
Role
s
Employer
Employer
Economi
Economi
c
c
Manager
Manager
In the past:
- Awards contained the terms and conditions of employment which applied to
particular industries.
- Awards were the only set of conditions.
- Awards were entailed detailed and complex.
Today:
- Awards exist as a minimum set of conditions that apply where no enterprise
agreement has been reached.
- Awards are a safety net to protect workers and provide ten basic
entitlements.
Collective or Enterprise Agreement
- Is an agreement between an employer and its employees as a group or
collective.
- Unions may be used by employees to represent them
- Bargaining is to be in Good Faith
- Agreements must adhere to the 10 National Employment Standards and
contain several other components. E.g. Expiry dates.
- Enterprise agreements must be approved by Fair Work Australia
Individual Agreements
AWAs:
- No longer allowed
- A small number still exists but will cease when their expiry date occurs.
- Allowed pay & conditions below Award levels
Common Law Contracts:
- Very common in professional employment (E.g. Accountants, Lawyers, etc.)
- Cannot erode Award minimums unless pay is greater than $130,000 pa.
Deal
with
Deal with
Dispute
Dispute
Implemet
Implemet
the
the
Agreeme
Agreeme
nt
nt
HRM
Role
s
Negotiate
Negotiate
Agreeme
Agreeme
nts
nts
Train
Train
inform
inform
Others
Others
Negotiating Agreements
1. Be aware of awards and the national employment standards
2. Table all relevant information to allow proper negotiation (good faith)
3. Consult widely
4. Keep an open mind
5. Remember the big picture
6. Exercise care
7. Lodge the agreement
Training Other Managers & Supervisors
- Production and operations managers are responsible for the implementation
of the elements of the agreement
- For instance, if shift work hours are changed, the operations manager will
need to make changes to the daily structure
Implement the Agreement
1. Prepare and distribute all documents
2. Change all details (e.g. hourly rates of pay)
3. Assist in preparing necessary KPIs
4. Gather feedback on performance
Dealing With Disputes
- HRM is central to the resolution of any dispute that arises under an enterprise
agreement.
- The clever strategy is to set up an agreement that is not likely to cause
dispute
HR Management Styles
Autocratic & Persuasive are more likely to deliver unacceptable agreements and
more conflicts.
Participative & Consultative styles are more likely to deliver acceptable agreements
and fewer conflicts.
Autocratic
Autocratic
Persuasive
Persuasive
Whic
h
Style
?
Consultati
Consultati
ve
ve
Patricipativ
Patricipativ
e
e
HR Management Skills
Managers will need the skills that are consistent with the participative and
consultative styles.
Communicati
Communicati
ve
ve
Delegation
Delegation
Negotiation
Negotiation
Teamwork
Teamwork
Skill
s
Problem
Problem
Solving
Solving
Other
Other
(E.g.
(E.g.
Gov.
Gov.
Policies)
Policies)
Major
Cause
s
Pay &
Pay
&
Conditions
Conditions
Physical
Physical
Conditions
Conditions
(OH&S)
(OH&S)
Negotiatio
Negotiatio
n
n
Commo
Commo
n
Law
n Law
Action
Action
Mediatio
Mediatio
n
n
Resolutio
n
Options
Arbitratio
Arbitratio
n
n
Grievanc
Grievanc
es
es
Conciliatio
Conciliatio
n
n
Negotiation
- The least formal method
- No third party involvement
- Requires good communication and negotiation skills
- Used by participative and consultative managers
Mediation
- Involves a third party to help the disputing parties
- Does not suggest a resolution
- Assist parties to keep negotiating
- Are usually independent
Conciliation & Arbitration
- A conciliator assists the feuding parties to come to an agreement
- An arbiter hands the feuding parties a resolution that is binding
Common Law (Legal) Action
- If the industrial action occurs during the bargaining period of an agreement,
neither party can be sued in the courts.
- Otherwise, adversaries and other stakeholders are free to use the courts to
seek resolution of conflicts and damages.
- Legal action is expensive, time consuming and leads to mistrust and hostility
in the workplace.
Grievance Procedures
- These are formal steps that can be followed when a party is dissatisfied with a
situation
- Complaint is handled internally
- Move up the chain of command each time a resolution is not achieved.
Other
Body
Senior
Middle
Operation
al
Topic 2
Change Management
Defining Change
- Organisational Change is the planned or unplanned response of an
organisation to internal and external pressures.
- E.g. technology, the economy, social values, etc.
Organisational options
Organisations can:
- Ignore change pressures
- Be reactive to change pressures
- Be proactive about change
Being change ready
- A change ready organisation is committed to building its competency to
respond as needed to a complex and ever-changing environment.
- Organisational survival is dependent on the capacity to change effectively.
- A change ready organisation is both proactive and reactive in its nature.
Internal Forces driving organisational change
Profit
Profit
Policies
Policies
Crisis
Crisis
Intern
al
Forces
Innovatio
Innovatio
n
n
Culture
Culture
Interest
Interest
Groups
Groups
Operatin
Operatin
g
g
Competitor
Competitor
s
s
Suppliers
Suppliers
Economic Need, political will, technological advancement and social attitudes can
work in harmony.
Economic
Economic
Environmen
Environmen
tt
Social
Social
Macr
o
Force
s
Politics
Politics &
&
Law
Law
Technology
Technology
Resistance to Change:
1. Lack of trust in managers, workers are suspicious
2. Loss of jobs (e.g. Organisational Restructure)
3. Fear of the new, untried and unknown
4. Follower mentality and poor culture
5. Poor management
6. The Law
7. Costs
New Plant & Equipment
Redundancies
Training & Development
Structural Changes
Before
CEO
A
B
1
2
3
After
CEO
1
2