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MODULE 8: HUMAN RESOURCE MANAGEMENT 1.

Module 8. HUMAN RESOURCE MANAGEMENT

IntroductionThis module sets out good practice in Human Resource Management (HRM) in TAFE and outlines the responsibilities of Councillors in relation toit.

HRM includes issues about the management of people and their development; from traditional selection, training, compensation and performancemanagement to the alignment of HRM functions and activities with strategic goals.

Arguably the human resources of an Institute are its greatest resource and can provide a competitive edge through excellence in teachingstandards, professional behaviour, efficient and externally focussed administration, and community leadership.

Council and the senior management team have a profound influence on an Institute through their respective inputs to HRM issues. Typically,Council members have input to HRM at the strategic planning and review level. Senior managers also participate at the strategic level and areresponsible for implementation at the operational level.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 2.

Why is Human Resource Management Needed?

Effective HRM at a strategic level is a crucial source of sustaining an Institutes competitive advantage and continuous improvement particularly

when it enables the following outcomes:

Employees to contribute more fully to organisational objectives and

Organisations to respond more positively and creatively to changes in their environment.

It is a truism that nothing happens without people making it happen and systems, tools and techniques are becoming increasingly moresophisticated and useful. However, these systems cannot operate at all unless people use them by providing appropriate inputs and makeinterpretations and decisions based on the information available.

Human resources, people, are THE critical ingredient in organisational success.

For TAFE, people are an integral part of that competitive edge that lies between a community that is engaged with learning and a communitythat is not. They are critical in building the respect and value that the community has to have for TAFE to become the knowledge provider ofchoice.

Management practice has evolved to a point where HRM is a distinct function that must be aligned with other strategic functions and directlyaffects the performance and sustainability of an Institute.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 3.

Essential Thinking For Councillors

The Challenges Issues & Implications Actions & Responses

Compliance with generalworkplace regulations

Many organisations have taken an ad hoc approachto understanding Occupational Health and Safety,Equal Opportunity, and Sexual Harassment,assuming such issues are the domain of others.

Individuals and organisations are liable, andorganisations must be able to demonstrate that theyhave fulfilled their obligations under the relevant Act.

Councillors need to be familiar with a broad range ofissues in HRM, but they are not expected to beexperts in the detail.

In particular Councillors need to ensure the Instituteprovides an appropriate working environment,training and education for all staff, and appropriateresponses to any HRM issues raised.

Enterprise BargainingAgreements (EBA)

A key plank of the current industrial climate is thenegotiation and implementation of Enterprise BasedAgreements between the organisation and

representative Unions. The process of negotiation of an Enterprise

Agreement can facilitate the development of a moreopen and productive industrial relationship that isintegral to the achievement of organisational goals.

Council would expect the CEO to drive EBA planningnegotiations, but they should ensure that they arefamiliar with the main issues.

Performance Management In a more accountable environment, TAFE Institutesgenerally have implemented a performancemanagement system to establish, measure, andrecognise the achievement of key accountabilities orkey performance indicators.

Performance Management leads to agreed

expectations and performance standards betweenmanagers and staff, and to the linking of developmentneeds to the organisations strategic goals.

Measurement must be conducted in the context ofthe strategic priorities set by Council and asarticulated in the Strategic Plan.

Councillors must be confident that measurement isbeing well conducted, including the rigour and scopeof Key Performance Indicators.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 4.

The Challenges Issues & Implications Actions & Responses

Remuneration The remuneration of the majority of staff is generallypart of the EBA process and the subject of periodicreports to OTTE.

The remuneration of Executive Officers in Institutesmust be endorsed by the State Government.

Councillors need to be familiar with their role in theVictorian Governments Executive OfficersRemuneration process.

Workforce Development Workforce Development is a broad term that coversareas such as workforce statistics and broad humanresource development planning.

The government report Trends in the Victorian TAFEInstitute Workforce outlined the major characteristicsof the workforce in the period 1993 to 1998 and theimplications for future training and development. Thisreport is available at www.otfe.vic.gov.au/workforce

The workforce is ageing, with the majority of olderteachers employed on an ongoing basis.

It is predicted that 60% of executive and other keyteaching and support staff will retire from the TAFEworkforce in the next few years.

There is a shortage of future managers with thenecessary knowledge of business and keytechniques such as strategic planning.

Councillors need to be familiar with workforcecharacteristics, trends and the implication for theInstitute.

Comprehensive workforce development plans needto be in place, and Council must be aware of howtheir Institutes plan is aligned with other parts of theStrategic Planning and Reporting System.

Recruitment Recruitment and retention of quality staff is part ofWorkforce Development. Executive recruitment and

retention is a matter that Councillors mustunderstand.

Councillors may become involved in Recruitment andSelection Panels where the appointment of an

executive fulfils a key strategic objective. Councillors, and specifically the President, need to be

involved with the selection of the CEO.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 5.

The Challenges Issues & Implications Actions & Responses

Flexible workforce The realisation is growing that a flexible workforce isfundamental to achieving business plans. Flexibilityin terms of skills and working arrangements, in orderto respond effectively to the changing need ofcustomer groups, will become a key capability oforganisations.

The CEO would be expected to drive this as part ofthe EBA process. However, Council should beinformed on what is being done to ensure adequateflexibility in the workforce.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 6.

The Role of a Councillor

The development and operation of an HRM Plan is the responsibility of the Management. Councillors must ensure that such a plan is active and

should request periodic briefings on the results of its implementation.

This plan should ensure that the organisation has well understood Human Resource policies in place and that those policies includeimplementation plans and monitoring procedures that reflect its strategic objectives.

The areas that Human Resource Policies should address include:

Occupational Health and Safety

WorkCover

Anti-Discrimination

Equal Opportunity

Racial Hatred

Privacy

Protection of Whistle blowers

The sources of the legislation that govern these requirements are shown in Appendix I of Module 1 of this Guide.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 7.

How To Ensure that Human Resource Management is Satisfactory

It is not the role of a Councillor to contribute to the detail of Human Resource Management, but Councillors do have a responsibility to ensure that

satisfactory policies and plans are in place.

It has been mentioned elsewhere in this Guide that many Institutes are now engaging in non-traditional activities, and this involvement raises anew and complex range of legislative issues involving Institute staff at home and abroad. Again, Councillors need to be assured that appropriatepolicies and risk management processes have been developed and implemented.

Councillors need to be assured that key people understand the strategic priorities and direction developed at Council level for the Institute, andthat critical HRM components such as performance appraisals, training and development, enterprise bargaining agreements and successionplanning have been given proper attention by management.

Normally the CEO or his or her delegate would keep Councillors informed about these matters. If Councillors have concerns about theinformation provided or the risk element of HRM practices, they should raise them and insist on receiving timely and satisfactory answers.

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MODULE 8: HUMAN RESOURCE MANAGEMENT 8.

Examples of Good Practice

Key Elements of HRM Plans include:

A well designed integrated organisational structure, and commentary on how it aligns with the Institutes strategic objectives

Modern employment relations practices linked to strategic objectives

A performance management system that includes a system for matching an individuals development to the organisations strategic needs

A program to achieve workforce productivity and flexibility

Valuable Enterprise Agreements and processes

Documented recruitment and selection processes, based on job analysis and core competencies

A Succession Plan

A documented HR strategy which specifies that workforce development will facilitate the achievement of business objectives and bring aboutthe changes required

Regular review and assessment of HRM implementation, including an annual review of workforce development objectives and achievements

Processes and practices that enable clear and genuine communication between staff members and their managers.

Further references:

A key reference document is Managing People for Performance: Leadership and People Management in TAFE Institutes, VTA 1998.

A CD Rom from OTTE (2001) Defining and Scoping Human Resource Development in the Victorian TAFE System, OTTE, 2001.

The website http://www.summaries.com is a site showing subscribers the latest developments in HRM and best practice examples.

TAFE Workforce: The Continuous Transition, A VTA Discussion Paper (Nov 2001).