HSC Summary Notes- Human resources management

10.4    HSC topic: Human resources -> Refers to systems that have been developed to manage people within an organization or business.

                                                                                                                25% of indicative time

The focus of this topic is the contribution of human resource management to business performance.

Outcomes 

The student:

H2     evaluates management strategies in response to changes in internal and external influences

H3     discusses the social and ethical responsibilities of management

H4     analyses business functions and processes in large and global businesses

H5     explains management strategies and their impact on businesses

H6     evaluates the effectiveness of management in the performance of businesses

H7     plans and conducts investigations into contemporary business issues

H8     organises and evaluates information for actual and hypothetical business situations

H9     communicates business information, issues and concepts in appropriate formats

Content

Students learn to:

examine contemporary business issues to:

·         discuss the influence of government on the process of determining employment contracts

·         explain how businesses exhibit corporate social responsibility in the management of human resources

·         analyse the causes of two workplace disputes and the strategies used to resolve them

·         examine the advantages of a diverse, culturally competent workforce for a global business

investigate aspects of business using hypothetical situations and actual business case studies to:

·         explain the interdependence between human resources and other key business functions

·         compare the process of negotiating enterprise/collective agreements with the negotiation of individual contracts

·         discuss the advantages and disadvantages of outsourcing in the global market

·         evaluate the effectiveness of human resource management for one business and recommend appropriate alternative strategies

Key Concepts: outsourcing, stakeholders, employment standards, OH&S, workplace disputes, corporate culture, grievance procedures, benchmarking, agreement, induction, ‘laissez-faire’, national employment standards, contract,

Students learn about:

role of human resource management

·         strategic role of human resources – deals with all aspects of employee/employer realationship: -acquisition –training –equal employment opp. –development –separation

-When HRM is successful employees should be motivated & productive

·         interdependence with other key business function –HRM ensures the correct people are working properly in their roles in operations, marketing or finance

·         outsourcing –Often used to obtain superior servie, better funcitional quality at a lower cost than when completed internally –cost advantages/savings + ability to focuss on core bus. activities are the major reasons for outsourcing

–        human resource functions -> HR is the 2^nd most outsourced function (after IT) it can have disadvantages though: -loss of control –expensive –employee unrest -> if a business decides to outsource HR it must have clear objectives to make sure goals are achieved and make the transition smooth

–        using contractors -> contractors are independent and are not subject to the regulations and directives of a business – domestic -> simplifies communication, knowledge of HR relevant to the area e.g. Aust. Bus. , global ->cost advantage, specific skill, cultural sensitivity -> it is most important instructions are clear -> hiring may be –ethnocentric (parent country) –polycentric (outsourced country base) or –geocentric (best for the job)

key influences

·         stakeholders – employers- role: run bus. efficiently, employ sufficient staff, earn profit objectives; increased profitability, productivity, efficiency & competitivness, employees-role: earn income, secure employment, personal satisfaction objectives: better pay/working conditions, flexibile working conditions, fair/ethical treatment, employer associations-support groups of employers in the same/related industry, purpose: to represent the industrial/commercial interests of member orgs. & bus. -role: interpret economic trends/impact on bus. improve efficiency of workplace, provide a voice for bus. in economic/social debate , unions –represent groups of employees within particular occupational groups –role: lobby gov. on employment/workplace matters, increased job security, follow-up on issues for employess, government organisations –involved in industrial realations –Fair Work Australia –individual states have their own industrial relations –provide a legislative background for industrial relations, society-seek the best price/service/quality –changes to work conditions often influence their opinions on the bus./service etc.

·         legal – the current legal framework -> Fair Work Act 2009 –enforcable minimum employment terms and conditions which include –minimum weekly hrs of work –flexiable work arangements for parents –annual leave –parental leave –compassionate leave –long-service leave –community service leave –paid public holidays -4 weeks notice for termination –provision of fair work info. statement

–        the employment contract –many conditions controlled by state/fed. Laws –employee is ‘a person subject to a contract of service’ –can be ‘for service’ –not ongoing but for a fixed term e.g. tradie OR ‘of service’ –regular and continuous e.g. salary teacher– common law (rights and obligations of employers –duty of care –duty to pay agreed wage –duty to provide work and employees –duty to obey lawful instructions –duty to work with skill –duty to disclose relevant information), minimum employment standards, minimum wage rates, awards –legal document outlining minimum wages/working conditions –apply to all bus. in that industry –established through negotiation w/ dominant employers, employer associations and trade unions, enterprise agreements –exclusive to the business and its employees, must be approved by majority of staff, other employment contracts –part-time, permanent, casual, fixed-term

–        occupational health and safety –employers must provide a safe system of work, ensure employees are trained and supervised –employers are also responsible for taking reasonable care –investigated by Work Cover and workers compensation –benefits for employees suffering injury or disease related to their work –administered by Work Cover

–        antidiscrimination –enacted to protect employees from direct and indirect discrimination throughout HR process –Legislation: Affirmative Action Act 1986 –Sex Discrimination Act 1984 and equal employment opportunity –refers to equitable policies –level of equity = extent to which women/minority groups have access to different occupations/positions –affirmative action plan

·         economic –economic cycle/globalisation can change employment requirements by changing demand and variety of skills required by staff –e.g. staff have more bargaining power in economic ‘boom’ as employees are in demand –globalisation changes the location and nature of employment –home office/tele-communing increased and changed the work place

·         technological –globalisation/technology revolutionised work places –payroll, records, hiring, work can be completed online –self-service streamlines activities e.g. applying for leave –increases flexibility but also expectations

·         social – -increased education qualifications, changes in family dynamics, aging population changing work patterns –incease in womens participation –inceased casualitation, outsourcing, flexibility and service knowledge based jobs, living standards –level of material wellbeing –desire to improve standard of livng will push people into the workforce –rising gender gap –paid parental leave

·         ethics and corporate social responsibility –issues in the work place: -unethical practices/conditions, bullying, harrassment, injury, discrimination, work overload, stress, unfair/unlawful dismissal

-Benefits of ethical practise: -pleasant work environment, community support, motivated staff, improved performance, equal opportunity, staff retained

processes of human resource management

·         acquisition –HR planning, recruitment, celection and induction -having appropriate number of staff, achieved by –identifying staffing needs-lack of training/motivation can hinder performance if this is not the case new staff may be required –recruitment –main aim is to accummuate a pool of potential candidates for a job, internally or externally, it’s from this pool the bus. makes its selection –selection-involves reviewing the information gathered about applicants to choose the most appropriate candidate

·         development –developing existing staff with new skills and expertise –motivation + adding value to staff –retaining them-process of preparing emplottes for advancement to jobs where their capabilities are used to the greatest extent -4 standards, induction, performance appraisal, training & development

·         maintenance –monetary/non-monetary rewards + legal compliance –motivate + retain -providing working condictions/environment that motivate staff to increase productivity, gain satisfaction and remain loyal to the firm. It increases productivity, moral and communication, lowering absenteeism and costs. Achieved through monertary (bonus, pay rise, fringe benefits) or non-monetary (promotion, flexibility, recognition) benefits

·         separation –breaking of the labour contract -Voluntary (resignation, relocation, retirement, voluntary redundancy) or involuntary (contract expiry, entrenchment, dismissal)

strategies in human resource management

-Many strategies in HRM have to do with choice; the manager must make appropriate choices for their particular bus.

·         leadership style –style of management will impact the  bus. –Autocratic, my way or the highway, directed, works well with less skilled staff & aiming for product consistency –Lassez faire, you can work it out, collegial/friendly, great for creative/highly skilled employees, motivated workers –Democratic, what do you think, middle ground, lots of team building activites, management retains control but staff input is valued (some schools operate like this)

·         job design – general or specific tasks –process of describing and defining specific and general tasks that need to be performed –determines responsibilties/requirements –job depth/content –content= tasks/responsibilities depth=degree of authority of empoyee

·         recruitment – internal –within the bus. motivates staff, right ‘cultural fit’ or external outside bus. –wider pool of candidates, diversity, specific skill, general –non specific e.g. motivation, word processing or specific skills –specialist e.g. engenering

·         training and development – current or future skills –continual training improves bus. skill base, motivates staff and can be subsidised by the gov. -> training involves educating an employee in the skills and processes of the job that they currently hold. Development involves selecting employees for educational programs that focuss on future roles. Current skills = training Future skills = development

·         performance management – developmental –to improve staff and encourage progress or administrative –ensuring employees are achieving work outcomes

 *both ensure employees are on task and are performing –benefit productivity & profitability

·         rewards – monetary –financial incentives = loyalty + sustained work ethic and non-monetary –recognition/personal growth = motivation + belonging, individual or group -> rewards allocated to work groups/teams or individuals?,  performance pay -> individuals or groups rewarded for work towards a specific goal

·         global – costs, skills, supply ->location will impact heavily on labour costs, where to produce is a decision that needs to be made, skill of workers in that country is also important –labour force is declinign in advanced industrial areas = encouragement of movement of production to other places

·         workplace disputes -> disagreement over an issue/s between and employer and its employees resulting in cease of work ->causes negotiation of awards/agreements OR matters outside agreement e.g. health/safety, managerial poliy, union issues -> action –strikes, lockouts (employer refuse entry to workplace), pickets (outside workplace, unions stop delivery of goods)

–        resolution – negotiation –discussions resulting in formal/informal agreement, mediation-confidential discussion with a neutral 3^rd party, grievance procedures –formal procedure usually in an agreement involving the agreed process to resolve a dispute, involvement of courts and tribunals –conciliation 3^rd party is involved to help reach an agreement –arbitration 3^rd party make a legally binding decision to resolve the dispute

effectiveness of human resource management

·         indicators

–        corporate culture -> values, ideas, norms shared by people of the bus. –measured by internal process approach, effectiveness is measured by the internal health + efficiency of the bus.

–        benchmarking key variables -> setting standards for measurement e.g. output per worker can be internally set or recognized standards –allows the bus. To pinpoint areas they are not performing well in = motivation

–        changes in staff turnover -> higher than normal rate indicates lack of job satisfaction –assessing factors behind the rate can help to eliminate the problem

–        absenteeism -> failure of an employee to turn up to work like staff turnover rate seeking the reason can help to eliminate the problem

–        accidents -> to improve safety bus. Can implement an accident and safety improvement plan

–        levels of disputation -> frequency/severity of disputes can indicate the effectiveness of grievance procedure

–        worker satisfaction -> can be assessed through surveys, polls, suggestion boxes can help to develop plans for the future

·         Disputes case studies

o   Nurses Causes  –the award for public system nurses& midwives expired in June 2008 NSW nurses association put in a claim involving -5% pay increase per year –increase in employer superannuation contributions -25% penalty loading for night work –balance between permanent/temp. staff –flexibility in shift patterns –fairness for part time staff Action –no real strike action –negotiation/mediation successfully managed because nurses didn’t have to force strike action Resolution –NSW gov. offered improved pay offer of 7.95% over 2 years –ongoing nurse education and referred night duty issue to the industrial relations commission

o   Toohey’s Drives Causes –Toohey’s originally told drivers they would lose their contract after July 31 when they replaced Toll Holdings with Linfox –Linfox offered drivers their contracts back under a new agreement cutting pay by up to 42% and requiring them to install $50000 protective coverings Action –blockade/pickets -57 drivers blockaded outside the brewery, vowing to stay put until management agreed to hear their concerns –Public service association banned the serving of Toohey’s products in parliament on June 22 Resolution –Grievance procedures –there was no originally discussion –NSW Industrial Relations Commission ordered drivers to return to work and for managers to meet with drivers –talks with the company and drivers did not resolve the dispute negotiation was the next step, after an 8hr meeting with Tooheys and other parties a fair rate of pay and more secure contract was determined