22
Grace De Leon HSC Business Studies HSC 10:4 – Human Resources Chapter 13: Role of human resource management Human Resources The employees who make up the workplace and put labour into the business Strategic role of human resource management To meet the needs of their employees whilst promoting company goals The assets (employees) of the business working together with other staff members of the key functions to achieve the long term goals of the business (profitability) HRM is the management of the relationship between an employer and employee in order to achieve strategic goals. It involves: - Reviewing the goals of the business and recruiting people with the necessary skills and expertise to operate successfully - Have programs that develop skills and knowledge of the staff - Rewarding valued employees, meeting employee needs - Working within the legal framework that regulates the employment relationship in such areas as wage negotiation, OH&S and unfair dismissal To manage employees; effective workforce adds value to all areas of their business performance And to retain, reward and motivate the employees towards the objectives Interdependence with other key business functions In larger businesses there is a specialist team/manager that oversees the business’ HRM In smaller businesses, the general manager and employees oversee that responsibility Operations, processing/manufacturing a particular good. Must have an employee that has the relevant skills/knowledge to produce the product. Marketing, staff must be motivated to find what (potential) customers want. Through marketing, the skills of making the product are determined Finance, to establish a budget to meet needs, so funding of T&D, workplace education and OH&S and remuneration Outsourcing This refers to the company taking a part of its business and getting an external business to complete that work Reasons for human resource function Provides the ability to access staff whose speciality is HRM. These staff would have a much better understanding of issues

acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

HSC 10:4 – Human Resources

Chapter 13: Role of human resource managementHuman Resources• The employees who make up the workplace and put labour into the businessStrategic role of human resource management• To meet the needs of their employees whilst promoting company goals• The assets (employees) of the business working together with other staff members of the

key functions to achieve the long term goals of the business (profitability)• HRM is the management of the relationship between an employer and employee in order to

achieve strategic goals. It involves:- Reviewing the goals of the business and recruiting people with the necessary skills and

expertise to operate successfully- Have programs that develop skills and knowledge of the staff- Rewarding valued employees, meeting employee needs- Working within the legal framework that regulates the employment relationship in such

areas as wage negotiation, OH&S and unfair dismissal• To manage employees; effective workforce adds value to all areas of their business

performance• And to retain, reward and motivate the employees towards the objectivesInterdependence with other key business functions• In larger businesses there is a specialist team/manager that oversees the business’ HRM• In smaller businesses, the general manager and employees oversee that responsibility• Operations, processing/manufacturing a particular good. Must have an employee that has

the relevant skills/knowledge to produce the product.• Marketing, staff must be motivated to find what (potential) customers want. Through

marketing, the skills of making the product are determined• Finance, to establish a budget to meet needs, so funding of T&D, workplace education and

OH&S and remunerationOutsourcing• This refers to the company taking a part of its business and getting an external business to

complete that workReasons for human resource function• Provides the ability to access staff whose speciality is HRM. These staff would have a much

better understanding of issues related to employment relations and can advise the business on the most appropriate HR strategies

• Allows managers of the business to focus on the core business operations. Focus on production and customers. Recruitment and T&D are handled by external business

• Generates cost savings, reduces need for full time staffIssues regarding outsourcing HR• May lack an understanding of the key aspects of the business i.e. culture, and current

workplace conflict issues• A strong relationship between employer and staffContractors• The employee contract in the workface is between an employee and their employer• Contracts, are an external provider of services to a business. Individual or business• Conditions outlined in contracts are controlled by state and federal laws• Due to outsourcing and self-employment, employees are an individual’s offering their

services on a regular basis and being subject to the lawful control and authority of the employer, not someone being paid for their labour

• Employee’s job is ongoing and will not be terminated once a task has been completed• Referred to as a contract for service, where the employee offers their service on a regular

Page 2: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

basis and is subject to lawful control and authority of the employer• Contractor’s job is not ongoing, and once completed they are paid for their service and leave

the business• Referred to as contract of service, employment is not ongoing and an agreed fee is paid to the

independent contractor for the service provided by the contractor, usually a fixed periodForeign contractors• By using external contractors in a foreign business, Australian businesses do not have to

worry about minimum labour requirements, OH&S and termination

Page 3: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

Chapter 14: Key influencesStakeholders• Stakeholders are those who have an interest or is affected by the activities of the business• Each stakeholder seeks to protect and promote its own interestsEmployers• An individual that pays others to work for its business• Take responsibility for ensuring that the business has the appropriate staff to achieve the

organisation’s goals• In large businesses shareholders may appoint a group of managers to take on this

responsibility• Large businesses have specialist departments concerning employment relations, they are

called HR, employee relations or personnel departments• The human resource department aims to focus on the management of employee-related

issues in the workplace.- Works with other departments to recruit the appropriate staff for the business- Ensure working conditions and benefits comply with federal and state regulations- Implement T&D programs to cater for the changing staffing needs- Develop rewards for staff to show that they are valued in the business

Employees• An individual who provides his/her skill to the business in exchange of a regular source of

income• Their responsibility is to complete their tasks in a manner that is lawfully described by the

employer• Employees were regarded as ‘servants’ who provide labour in exchange of wage/salary,

now employees are included in the decision making process, this gives a sense of responsibility and empowerment within the organisation

• By giving this sense, employees work more efficiently and more motivation• Other than steady income, businesses provide –alongside trade unions- family-friendly

practices for employees such as childcare centres, maternity leave and part time work• There is also the option of flexibility in start and finishing time and dressing casually• Also working at home if they wish toEmployer associations• They are the organisations that aim to promote the interests of employers within the

business environment• They lobby governments to develop policies that enhance the interests of the employer

within the employee-employer relationship• They also consult on changes to key policy issues, such as trade and industry assistance

schemes• Due to legislation, the laws made by parliament, employer associations advise and assist

members on matter such as equal employment opportunity, dismissal, wage negotiation and legislative changes

• Examples of employer associations, Business Council of Australia, Employers FirstUnions• Or trade unions, are Aan organisation that aims to protect and promote the interests of

employees within the workplace• They assist employees with disputes in the workplace and act as a bargaining agent in wage

negotiations• Also advise members on workplace rights, wage levels and OH&S issues• Union membership has declined due to private sector or service based organisations

opposed to government agencies, also employees on a part-time or casual basis and women not applying

• A shop steward is a union representative in the workplace; they are a first point of act between the union and its members within the workplace. They deal with minor workplace

Page 4: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

disputesGovernment organisations• The government is the most influential, they establish legal frameworks which employers,

employees and trade unions coexist and operate within the employment relationship• Key terms in government’s role in employment relations

- Award, a legal document that specifies minimum working conditions that applies to all employees. Covers matters such as wages, holidays, sick leave and overtime

- Working conditions, the non-wage features of an employee. Includes work hours, rostering issues, promotional policies and OH&S issues

- Certified agreement, an agreement that is negotiated between employer and all its employees. If requested, unions may assist employees in the negotiation process.

- Better off Overall Test, test used by Fair Work Australia to examine whether employees will be any worse off if they sign a new wage agreement rather than employed under an award and relevant laws

- Industrial dispute, a problem that arises between a group of employees or an individual employee at a workplace

- Conciliation, used when Fair Work Australia offers suggestions to resolve industrial dispute. These recommendations are not legally binding

• Fair Work Australia- Established under Fair Work Act 2009(Cth)- Encourages the prevention and settlement of industrial disputes between employers

and employees through a process of conciliation and arbitration,- Determine minimum wages through national wage case hearings- Arbitrate on unfair dismissal claims where the employee claims their dismissal was

harsh• Federal Court of Australia, acts an avenue for appeal regarding decisions from FWA. Can

apply penalties to parties who breach legally binding decisions made by FWA• The Human Rights and Equal Opportunity Commission, established 1996, enforces federal

government legislation on discrimination in the workplace• Equal Opportunity for Women in the Workplace Agency, promotes equal opportunity for

women in the workplace and administer the Equal Opportunity for Women in the Workplace Act 1999 (Cth)

Society• Although there is no direct influence from society, unethical workplace behaviours are often

published with strong media attention, businesses must uphold a good reputation and respond with a manner that is ethical in the eyes of society

• Society has a number of expectations regarding employment conditionsLegal – the current legal frameworkEmployment contract• A legally binding agreement that covers,• Working conditions (safe workplace)• Minimum pay standards• Anti-discrimination and equal employmentEmployees• Rights, safe workplace, remuneration, fair dismissal/chances, equal employment

opportunities (EEO), negotiate pay/conditions, free from discrimination and have work that is appropriate

• Responsibilities, provide labour, do the job properly, abide by contract, comply with company policy

• Duty to obey lawful instructions and commands, employee is expected follow out instructions set out by employer or senior manager, work must lawful and should not put employee at harm or risk

• Duty to work with skill, employee should perform the task to the best of their ability, use

Page 5: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

skills and knowledge in a competent manner• Duty to disclose relevant information, if employee is affected by medical injury, the employee

should disclose this information with their employer should it result in a serious workplace accident

Employers• Rights, work to be done, dismiss workers• Responsibilities, safe workplace, remuneration and T&D• Duty of care, legal obligation to provide employee with safe and healthy workplace, provide

necessary skills, know ledge and equipment to minimise risks associated with their work, provide safe + healthy workplace, also WH&S (warn employees of things such as slippery floors and provide protective clothing)

• Duty to pay the agreed wage, business is obliged to pay correct and legal wage to employee. Allows employees to be paid more, if it’s below they are breaching law

• Duty to provide work, employer must provide constant source of work to full and part time staff. If work isn’t provided, worker leaves with financial compensation, although casual employees isn’t always obliged to have constant work or financial compensation.

Minimum wage rates• An employee’s minimum rate of pay for hours worked. Fair Work Australia is responsible

for ensuring that employer’s do not pay employees lower than the minimum wage• Minimum wage is determined once a year by the Minimum Wage Panel of FWA• Differs among adults who have experience and qualifications and younger people, people

with disabilities and those who have training arrangements applyAwards• Refers to a legal document that outlines the minimum wage and working conditions for all

employees working in a particular industry• May include minimum wages, penalty rates, types of employment, flexible working

arrangements, hours of work, rest procedures, classifications, allowances, leave and leave loading, superannuation, redundancy entitlements, and procedures for consultations

• Established between negotiations between dominant employers, employee associations and trade unions

Agreements• In 1991 the federal government encouraged workplaces to develop their own wage

agreements• This meant businesses made their own agreements that could suit their own employees• Certified agreements , made between an employer and group of employees about terms and

conditions of employmentTypes of employment contractsPart-time employment

Page 6: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

• Involves an employee working a fixed set of hours per week, less than a full time employee• May choose to work additional hours• Entitled to sick and annual leave, holiday loading and meal and uniform allowances• Provided on pro rata basis, refers to proportion of hours worked by part time to a full time

employee• Entitlements are based on this proportionPermanent employee• Person who is continuing employment within the organisation• Works between 35 and 40 hours per week (depends on wage agreement), may work more• If they are requested to work more hours they will be paid overtime• Entitled to a minimum of four weeks holidays per year and 1.1 weeks long-service leave for

each yearCasual employee• Employed for short period of time• Must work for a minimum of 1 to 3 shifts• Regularity of their employment depends on employer’s demands• Not obliged to provide regular, ongoing work• Not entitled to receive sick or holiday pay, but 1.5 times the wage to a full time permanent

employee doing the same sort of workFixed-term contracts• Used by business that require the use of labour for a specific period of time• Both parties are in agreement to this time period, and contract is altered with the consent of

both parties• If the employer wishes to terminate contract it is referred to as ‘breach of contract’• Employee does have right to pursue court action or recover lost income earnings• Employees may seek legal compensation if the contractor did not do what the employee

requested and paid the contractor to doOccupational health & safety• OH&S Act 2000 (NSW), establishes the rights and responsibilities of employers and

employees in regard to safety in the workplace• Seeks to minimise any potential risk that may arise, aim is to address any work-related

health or safety concerns an employee may have• Businesses with more than 20 employees should have an OH&S committee• As well as employers, employees should also seek to reduce risk of injuryWorker’s Compensation• Worker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW)

governs the process of employees gaining financial compensation for injuries sustained at work and their subsequent return to work (unless Commonwealth Gvt employees)

• Aim is to maintain income of injured employee, and once rehabilitated, employee is able to return to work with some capacity. Supports employee by providing benefits/assistance to be able to return to work

• Administered under WorkCover• Employers must take out a policy with licensed insurer, keep records of time, wages,

register of injuries, complete accidental and investigation form or face penalty of $55,000 or six months in jail

• Also report to insurance of injury in up to 48 hours, establish contact with employee’s doctor and pass on compensation monies to person ASAP

• Employee should notify their employer of work related injury/sickness ASAP, compensation (financial benefit) is given to employee suffering injuries/sickness developed from work

Anti-Discrimination• Acts that prohibit discrimination against gender, ethnicity, sexual preference, religion or

disability• Includes, Sex Discrimination Act 1984 (Cth), Racial Discrimination Act 1975 (Act), Human

Rights and Equal Opportunity Commission Act 1986 (Cth)

Page 7: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

• Discrimination occurs when a policy or practice disadvantages a person at work because of a personal characteristic that is irrelevant to their performance at work

• All employers must implement anti-discrimination legislation, as well as audit all policies and practices to avoid large fines, legal orders and damages and loss of reputation

• Anti-discrimination legislation is supported by Australian Human Rights Commission, Equal Opportunity for Women Agency and the Anti-Discrimination Board (NSW)

Equal Employment Opportunity• Refers to equitable policies and practices in recruitment, selection, training and promotion• Affirmative action refers to measures taken to eliminate direct and indirect discrimination,

and for implementing positive steps to overcome the current and historical causes of lack of equal employment opportunity for women.

• There is significant gender inequity in management roles in Australia.• All employers with more than 100 employees, and all higher education authorities, must

report annually, unless exempted, on equal opportunity programs they develop in consultation with employees and progress achieved.

• Businesses who do not comply are likely to be named in parliament, excluded from government contracts and industry assistance grants.

• Strategies that are commonly used to resolve a complaint of discrimination include an apology, counselling, official warning, mediation, conciliation or disciplinary action.

• Developing a code of practice making EEO awareness a criterion in promotion and performance appraisal are two of the strategies that can be used to make affirmative action and gender equality

EconomicEconomic cycle• The level of economic activity in an economy is primarily determined by the level of

consumer and business spending within a given period of time• This significantly impacts on the size of the business• The level of consumption and investment changes over a period of time• Therefore, the demand of labour is impacted by the level of economic growth, in order to

produce the appropriate level of goods and services• HRM would need to give the proper amount of awards, wages etc. and manage a lot more

staff if level of demand increasedInflation• Refers to high prices of goods and services and also wages, but a low amount of spending• If inflation occurs, the demand for g +s decreases causing the economic cycle to downswing• Because of high prices wages are increased so employees are able to pay for g+s• Because of high prices workforce must decrease so business can pay for resourcesGlobalisation• Refers to the integration of the world’s economies into one, increasing the trade of good and

service to be easier• Increased global competition causes many national companies to be retrenched

- Retrenched, when workers services are no longer needed due to downsizing, closed division or service is outsourced

• Employees must receive their legal entitlements if they are retrenched and must be free of discrimination and harassment

Technological• Technology seeks to improve quality of products and the efficiency with which they have

been produced• Manufacturing sector is declining rapidly

Positive Impacts Negative Impacts• Able to develop more efficient production

techniques• Employees are up skilled in workforce

• Loss of employment as tech becomes main production tool

• Employees resistance to change, inertia

Page 8: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

• Encourages employee to deliver g+s in new and improved way

• Fosters process of continued learning within an organisation

• Reduces the repetitive nature of labour-intensive work

• Fosters teamwork whereby staff become mentors to colleagues through the process of learning the new technologies

• Reduced employee’s morale, feels like their importance has lessen due to importance of technology

• Lower levels of employee empowerment and decision making as technology becomes a key driver is production methods

Social• Australian workplaces are characterised by greater diversity in ethnic and cultural

backgrounds• Increased participation of women• Many employees want a balance between work and familyChanging work patterns• Part time workers have increased due to the growth of finance, retail, hospitality and

community service industries• Part time workers don’t want additional hours and part time work offers flexibility in

balancing their work and personal lives• Women having a greater proportion of the workforce• Fewer unskilled jobs in the market• Technological development has decreased manufacturing sector• Introduction of low-cost technological production methods at the expense of labour• Traditional work times have changed so customers can see services anytime of week• Workforce has aged meaning younger people are not working• People are more flexible of their workLiving standards• Less educated people are employed within industries that are considered to have low wages• Many are scared of losing their jobs so they are very committed to their jobEthics and corporate social responsibility• CSR, “the continuing commitment by companies to behave ethically and to contribute to

economic development, while improving the quality of life of the workforce and their families, as well as the local community and society at large”

• Ethical business practices, practices that are socially responsible, morally right, honourable and fair

• A good corporate citizen and making contributions to the community and takes care of stakeholders (employees, suppliers, customers, the local community and it’s organisations)

• Investing in community projects, support R&D initiatives, introduce OH&S measures, adopt environmentally friendly practices and drafting and applying code of ethics to company operations

• Being ethical and having CSR improves workforce production as they are motivated in an ethical business and trust is built towards employer

• It enhances the reputation and standing of the business and may be used to promote recruitment of staff for the business.

Working conditions• Comply with social justice and industrial legislations• Provide safe and healthy working environment• Creating challenges, interesting meaningful work to stimulate intrinsic rewards for staffStrategies to promote CSR within workforce• Promote affirmative action and anti-discrimination programs within workplace• Develop initiatives that reduce the business’ impact upon environment• Engage in strategies that promote work-life balance and enhance workforce flexibility• Encourage staff to volunteer their time to participate in community-building skills

Page 9: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

Chapter 15: Processes of human resource managementHuman resource cycle• Employee relations, function that deals with the relationships between employees and

employers• Role is to provide business the workforce it requires, also aims to find, attract, develop and

motivate the people who can provide services the business needs• Human resource cycle is, acquisition, development, maintenance and separation• Involves acquiring people with skills for the job, continued development of skills and

knowledge of employees, cycle also provides incentives for effective, reliable employees to remain with business

Acquisition• Involves staffing needs, recruitment and selection• To reach goals with appropriate staff, the business must

- identify the skills and number employees required, consider changes (tech) and goals (expansions)

- analyse its existing workforce (current skills)- compare expected future needs of business with the existing supply of staff

• Consider internal environment, business goals (growth, downsizing, improvement etc.) and culture and external (economic conditions, competition, tech and legal, political and social factors)

Identifying staffing needs• Apply updated T&D to existing staff, introduce incentive program to make them more

efficient and productive• If staff cannot cope with changes, more employees are needed• Then specific jobs need to be identified and analysed, which results in a job description

- Job description, written statement describing duties, tasks and responsibilities associated with the job

• Then a job specification is developed. Which is a written statement outlining the key skills, experience and qualifications required for the job

• HR would cooperate with other functions to develop/determine new jobs• To acquire new staff, the job needs to established and a remuneration figure attached

- Remuneration, how much the job is worth; the pay, entitlements to be provided- This will be determined on the conditions based on the wage agreements established

Recruitment• To accumulate a pool of potential candidates for a job, here the business makes its selection• They can fill vacancies by recruit applicants, internally, within the business or, externally,

outside the business• When recruiting within, the business may promote a staff member due their performance• By promoting, staff have an incentive to improve their performance• Staff can be recruited externally by

- Outsourced private employment agencies- Students or graduates through study programs

Page 10: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

- Cadetships/trainee positions for HSC students- Online career sites (seek.com)- Positions can be advertised through major or minor newspapers- Centrelink can provide services such as business and employer information- Current staff can be consulted if they know anyone who can fill the position- Poach employees from competitors by offering better remuneration packages

• Applicants will apply for the job by a specific date and provide a resume, outlining personal information, such as employment history, skills and qualifications

Selection• A screening process in staff acquisition. Information gathered from job applicants is

reviewed and the most appropriate candidate is chosen• The more effective the selection process is, the more appropriate candidate is chosen• Individuals are assessed on the ability to interact with each other, motivation, values and

goals aligned with the business and its culture• The selection process may involve

- Application forms, interviews, assessment centres (senior positions), written tests (maths English), computer interviews or handwritten tests (grammar, clarity etc)

• Applicants are selected in a fair, non-discriminatory and legally compliant manner• Applicants have a background check• Applicants are given a realistic understanding of the job description and responsibilities• Using strategies that will prove useful for later selection and placement decisions• Using strategies that are aligned with the business functionsStaff development• Business needs to develop skills and capabilities of staff in order to maintain competitive

edge• Each business has a different way of operating, their culture• An induction procedure allows new staff to be introduced to the business and its operations

- Induction, introduction to business operations and info about is day to day proceduresTraining• New employees should feel secure and safe, know where they are, where the business is

headed (goals), this makes them feel secure• Training, refers to activities aimed at improving an employee’s present and future

performance in the workforce. Some include- On the job, advisers, traineeships, apprenticeships and job rotations- Off the job, TAFE and university courses, in-services and seminars

Development• Involves preparing employees for future responsibilities within the organisation due to a

change in the business’ strategies or growth in its size or market share• Training, refers to the process of teaching staff how to perform their job more efficiently and

effectively by boosting their knowledge and skills• Development, refers to activities that prepare staff to take greater responsibility in the future• T&D of staff requires evaluation of training activities to measure effect on staff• Training needs to be established to determine that the programs matches business goals• Development enhances the skill of employees by further professional learning, mentoring/

coaching and performance appraisal and mgmt. to allow opportunities within the business• HR manager role is to establish effective T&D programs, train managers to implement them

and then evaluate training programs to determine if performance has improved• Benefits of T&D, promotion, job satisfaction, adaptability and future employability• Advances in tech create ongoing need for T&D, T ensures that workforce has necessary skill

to utilise tech in the most efficient mannerInduction• An effective program is carefully planned to introduce a new employee to their job, co-

workers, the business and its culture

Page 11: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

• A well prepared induction program:- Gives employees a positive attitude to the job and business- Builds confidence in the job- Stresses major safety policies and procedures, and applies their application- Helps establish good working relationships with co-workers and supervisors

Training• Aim is to seek a long term change in employee’s skills, knowledge, attitudes and behaviour

in order to improve work performance in biz.• Overcomes biz. weaknesses, builds strength and maintains staff commitment• By focusing on acquiring new skills and knowledge allows competitive edge• Types of training, formal off the job, informal on the job, action, competency based,

corporate unis and technology• Effective training program:

- Step 1, assess the needs of individual, job and business- Step 2, determine objectives of training program for biz., job and individual- Step 3, consider internal and external influences, internal attitude of employee and

resources to operate program. External, research of training issues, gov. prog or support- Step 4, determine process, content of prog, learning principles and methods, location

and participants involved- Step 5, evaluate training program, see if its effective

Mentoring and coaching

Performance appraisal• Performance appraisal, a formal assessment of how well a person is working – the person’s

strengths. Provides a basis for matters a future training needs, pay rises, promotions and possible further development

• It is a systematic process of analysing and evaluating employee performance for strengths, weaknesses and opportunities for development

• Aims to- Provide feedback from mgmt. to employees regarding work performance- Act as measurement against which promotion and pay rises can be determined- Help monitor employee selection- Identify employee’s T&D trends

Maintenance• Refers to the processes needed to retain staff and manage their wellbeing at work• Involves safety and health, communications and workplace culture, legal compliance and

CSR, staff participation in decision making• Database mgmt. helps keep track of info and useful for accountability and ref checks• Staff wellbeing is maximised through encouraging staff to participate in decision making

and giving control over their work livesCommunication and workplace culture

Page 12: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

• Effective relationships depends on heavily on the communication systems within the biz• Common methods, team meetings (supervisors, managers and employees), staff

bulletins/newsletters and seminars, functions, suggestion boxes, staff surveys and emails• Strategies in building trust and direct communication are critical in preventing conflicts and

escalating issues• As well as strategies help in building a positive workplace culture• Recognition in staff achievements is critical in building positive workplace cultureEmployee participation• Nature of communication involves staff participation• Benefits of participation include improved communication, empowerment and commitment

to improvement efficiency and quality

Maintenance of database• A database is used to maintain the records of a business, including its employee information• A skills inventory is a database that contains info. on skills , expertise and qualifications of

the current staff• Able to call up or search for specific information when neededMaintenance of HR staff• The firms aims to keep the employees who are valuable for the development of the business• Done through maintenance, provides the work conditions and environment that motivate

staff to be more productive, gain satisfaction from their work and remain loyal to firm• If the firm is able to retain loyal and committed workers, a business can:• Increase its productivity• Improve the level of morale among workers• Improve communication between mgmt.. and workers• Reduce the level of absenteeism decrease costs through lower staff turnover• A high level of staff turnover indicates the worker morale is low and dissatisfied with job• A major cause for this is low monetary benefitsMonetary benefits• Refers to rewarding employees’ efforts through financial compensation; pay rates• Minimum wage rates and working conditions are set out in an award, they are based on

specific occupational groups, workers also join contracts, agreements• Companies sometimes over-award payments in order to gain benefits from their staff• Wages, are received on hourly rates of pay and may include overtime• Salaries, involve annual rate of pay, divided into equal pay periods• Non-monetary benefits, rewards such as conditions; fringe benefits• Intrinsic rewards, rewards that comes from within the person, satisfaction of their labour• Remuneration awards, the total pay or reward to workers and managers for their labour

Page 13: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

services and may include both monetary non-monetary benefits• Non-monetary may include offices, cars, phones etc. or just value of income in objects• They attract employer-paid tax called Fringe Benefits Tax. This tax levies employers based

on the monetary value of a benefit given to an employee• Benefits from monetary, non-monetary and intrinsic

- Monetary may be paido According to sales – for instance, a real estate agent will receive a commissiono Based on an individual’s output – payment of piece rates for fruit pickingo As bonuses – these are often paid at Christmas time or at the end of theo Through a shared ownership scheme- pay increases and the incentive of

workers ‘owning’ part of the business.o As fringe benefits – examples are a company car

- Non-monetary benefitso Greater job variety, more flexible working hours,o Increased status in the job or community,o Being allowed to manage yourself or access to an employee-subsidised cafeteria.

- Intrinsic rewards-satisfaction from job and increased performance Many people negotiate conditions in their contract with their employer. Some of the

common benefits are: Four weeks’ leave with full pay after working one year in the same job Australian workers on awards are entitled to 17.5% loading on their annual leave. After working full-time for the same firm for a continuous period of 10 years people are

entitled to long-service leave, which is at least eight weeks pay. Employees are currently entitled to have an additional 9% of their annual wage or

salary paid into a superannuation account.Family friendly (flexible) working arrangements• Growing trend for a work-life balance• 10 National Employment Standards, Modern Awards and Enterprise bargaining have all

promoted the ability to provide staff with flexible working arrangements.• Methods, flexible remuneration options and working hours, study/work arrangements,

career break schemes, job sharing, work from home arrangements, family leave, part-year work arrangements, day care centre near work

Legal compliance• Compliance with legislation will help to maintain staff, WH&S, antidiscrimination, EEO, sex

discrimination, taxation, social justice, industrial relations legislation• Even though these are legal requirements, failure to adhere to them will not impress staff.• Not complying creates stress, absenteeism, turnover, low productivity and morale.CSR• It is then a matter of CSR to ensure that legislation is adhered to and matters that arise are

dealt with within the legal requirements and in a socially responsible manner.• E.g. Bullying in the workplace which is common among apprentices, young staff, migrant

workers etc• CSR implies that being proactive about such issues (educating staff through training etc) is a

good way to avoid issues in the first place.Separation• Involves the ending of the employment relationship• Can be voluntary or involuntary• Voluntary, employee chooses to leave, can take form in retirement, resignation or voluntary

redundancy- Retirement, when an employee retires they have given up full or part time work, may be

due to ill health, lack of motivation or leisure activities- Resignation, when an employee leaves their jobs for reasons such as a need for change in

their lives or moving interstate. The employee needs to provide the employer with

Page 14: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

notice of the intention to leave.- Voluntary redundancy, where their existing job is no longer required by the firm and

may have been offered a redundancy package• Involuntary, where management decide which employees will no longer be required.

- Involuntary redundancy, the termination of employment due to the firm closing down or the job no longer being required due to rationalisation, restructuring or new technology.

o The Employment Protection Act 1982 (NSW) provides a minimum scale for severance payments for all permanent employees under NSW awards who work for an employer with more than 15 employees.

- Dismissal, occurs when the employer terminates an employee’s employment contract due to the unacceptable conduct or behaviour of the employee. Can be an instant or summary dismissal or an dismissal after a series of warnings.

o Instant or summary dismissal, the immediate termination of the employee’s contract without notice. E.g. theft, drunkenness

o Dismissal after a series of warnings, follow incidents such as continual lateness or failing to perform the duties as required. E.g. lateness or failing to perform duties.

• Workers may be classified as on probation or temporary.- Probation, where workers are often hired and given a probationary period of

approximately 3–12 months to ‘prove’ themselves.- Temporary, those employed for short periods of time to replace an absent worker. This

could be for one day or several months.• Unfair dismissal is classified when the employee was

- Dismissed and it was harsh, unjust, unreasonable and not a case of genuine redundancy and not consistent with the Small Business Fair Dismissal Code

- Employee cannot claim unfair dismissal if business has more than 15 employees, either full time or equivalent, employed more than 6 months includes casual and dismissal process hasn’t been carried out correctly

- Can be claimed through informal and telephone conferences or formal hearing- Reinstatement will be the remedy for a claim that is upheld, unless it is not in the

interests of either of the parties, in which case compensation may be ordered- An employer has the right to object a claim on the basis that it is vexatious or frivolous,

not submitted in an appropriate time frame, not reasonably likely to succeed, not a case of unfair dismissal or that the person making claim is no eligible

Page 15: acehsc.b-cdn.net · Web viewWorker’s Compensation Act (1987) and Workplace Injury Management Act 1998 (NSW) governs the process of employees gaining financial compensation for injuries

Grace De Leon HSC Business Studies

Chapter 16: Strategies in human resource management• It is quite a broad process of managing employees and their relationship within the areas• Involves employees are encouraged to participate in decision making, to resolving disputes• Must develop the current skill of employees and future skills relevant to change of business• An effective way of rewarding staff members and groups to recognise achievementLeadership styles• Role is to make decisions, develop strategies for the development of the business and

interact with employees• Recognition of staff and product as competitive advantage gives the leader direction,

implement plans and motivate staff in a manner that enhances workplace performance• Leadership style is manner in which mgmt. leaders interact w/ staff, it is based on:

- Providing staff with directions and instructions- Implementing and organising staff- Motivating staff that promotes an effective workplace manner

• They must adopt strategies that inspire a positive culture within the organisationTypes of leadership stylesAuthoritarian (or autocratic)• Managers lead on the basis that they are responsible for telling employees what they want

done and how to accomplish that task• There is no room for employees to show initiative or contribute to decision-making process• Can be used when decisions must be made quickly, mgmt. has researched issue and

developed a way to solve the problem and when employees are learning a new job that requires supervision and instruction

Participative (democratic)• The concept is inclusion of employees into the decision making process• Employees are encouraged to be autonomous, though leader makes final decision• Can be used when managers have different yet effective ideas, knowledge and skill base of

staff are valued as part of culture within decision, managers are motivating staff to encourage ownership over work and makes employees empowered

Delegative (free-reign)• Leader allows employees to make all decisions but there is an understanding that final

decision is the responsibility of the employers• Used when employees have relevant knowledge and skills to make decisions, managers

trust them to make correct decision and managers are encouraging staff to take ownership of work

• An effective leader makes use of all styles, an appropriate choice is based on the skills, knowledge of staff and the time available

Job design