AOS 2 Flashcards
Define human resource management
the effective management of the formal relationship between the employer and employees
Define objective
a desired outcome or specific result that a business intends to achieve
Define motivation
the individual, internal process that directs, energises and sustains a person’s behaviour
Define Maslow’s Hierarchy of Needs
Maslow’s hierarchy of needs suggests that individuals are motivated by five needs that are to be satisfied in sequential order.
Maslow’s Hierarchy of 5 needs:
- Physiological: Pay that covers the basic needs
- Safety: Safe working conditions + job security
- Social: Teamwork, involvement in decision making, support from management
- Esteem: Responsibility for tasks, promotion, recognition
- Self-Actualisation: Opportunities for advancement, creative interesting jobs
3
Maslow’s Hierarchy of Needs 2 Advantages
- Helps managers identify people’s needs are different and that employees are at different stages of development
- easy and simple to understand
3
Maslow’s Hierarchy of Needs 3 Disadvantages
- Just a theory not supported by evidence,
- Difficult for managers to identify stage each person is at,
- Assumes needs fit into stages
Define Locke and Latham’s Goal Setting Theory
The establishment of clear, challenging goals as a way to motivate staff and improve their performance.
5
Locke and Latham’s 5 Principles:
- Clarity: Clear, specific goals + time frame
- Challenge: Achievable but extend employees
- Commitment: Give employee input on goal to motivate them
- Feedback: Recognition of progress, clear expectations, adjustments when needed
- Task Complexity: Not overwhelm, support provided (training)
3
Locke and Latham’s Goal Setting Theory 3 Advantages
- Clear + specific + challenging goals motivate employees + staff,
- Builds better relationship between manager + employees due to collaboration on goals + feedback,
- Supported by research
5
Locke and Latham’s Goal Setting Theory 5 Disadvantages
- Failure to meet goals may hurt confidence of staff
- Unclear goals can reduce motivation + lead to poor performance
- Individual goals may clash with business objectives,
- Employees may focus on goals but neglect other parts of their job,
- Theory only looks at goal setting ignoring other motivator,
Lawrence and Nohria’s Four Drive Theory
The four basic human drives that determine all human behaviour and applied these to the motivation of employees in the workplace.
Lawrence and Nohria’s Four Drives
- Drive to Bond: The need to form relationships with individuals and groups
- Drive to Acquire: The need to own materials, and have status + influence
- Drive to Learn: The need to learn new skills and about surroundings
- Drive to Defend: The need for safety, security and protection
3
Lawrence and Nohria’s Four Drive Theory 3 Advantages
- Adaptable to different environments + situations,
- Drives motivate effort that helps achieve objectives,
- Drives work independently allowing flexibility for strategies used
3
Lawrence and Nohria’s Four Drive Theory 3 Disadvantages
- Limited to only 4 drives when there are more
- May cause competition and reduce collaboration
- Lack of teamwork due to focus on individual goals
3
Maslow’s and Locke & Latham’s 3 Similarties
- Both can be used to encourage employees to achieve business objectives
- Both recognise that personal gain is a factor that can motivate employees:
- L+L goal achievement = motivation
- Maslow accomplishment = personal growth - Both demonstrate the importance of intrinsic (internal) motivators :
- Maslow higher order needs (esteem) = motivation
- L + L achieving goals = boost productivity + morale
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Maslow’s (3) and Locke & Latham’s (3) Differences
Maslow’s
1. Motivated through 5 needs in sequential order
2. Applied by the manager alone by observing the needs of an employee
3. Ongoing process = one level complete before moving onto next
Locke + Latham
1. Motivated through clear, challenging goals that include feedback
2. Requires employee input to create goals collaboratively
3. Locke and Latham’s theory is short-term
Achieving goal = end of process
New goal = start of process
2
Maslow’s and Lawrence & Noria’s 2 Similarities
- Both theories motivate all aspects of employees
(addressing their physical, social and emotional desires) - Overlaps in both frameworks allow managers to apply to right situation
- Belonging = Bond
- Self-actualisation = Learn
- Physiological = Acquire
- Safety = Defend
4
Locke & Latham’s (2) and Lawrence & Noria’s (2) Differences
Locke & Latham’s
1. Believes that an individual can be motivated through intrinsic (internal) factors
2. Goal setting as a motivator
(showing 5 principles)
Lawrence & Noria’s
1. L+N motivates through intrinsic (learn) + extrinsic (acquire)
2 . Satisfying all four drives simultaneously is key to balanced motivation.
4
Maslow’s (2) and Lawrence & Noria’s (2)
Differences
Maslow’s
1. The needs must be satisfied in sequential order
2. Once a need has been satisfied it no longer provides motivation
Lawrence & Noria’s
1. Each drive can be achieved and satisfied at the same time, no need to be met in a specific order
2. The drives work independently and can be used simultaneously.
4
Locke & Latham’s and Lawrence & Noria’s 4 Similarities
- Both recognise employees are motivated to achieve success
- Both suggest multiple factors motivate an employee at any time
- Both have a sense of achievement + financial reward
Achieving goals – acquire - Both show importance of managers understanding employee needs to motivation:
- L + L managers involved in goal setting
- L + N satisfying internal drive
Define performance-related pay
The monetary compensation provided to employees relative to how their performance is assessed according to set standards
Examples: Bonuses, increased salary
3
performance-related pay 3 advantages
- Direct financial reward when employees improve their performance,
- Rewards are predictable and easy to calculate,
- Physical way of recognising achievement motivating employees
Performance-related pay 4 disadvantages
- Expensive - The business might not be able to afford to pay extra rewards to everyone,
- Some employees aren’t motivated by money,
- If the rewards don’t increase over time employees may feel unmotivated,
- Potential to cause conflict due to inequal pay
Define career advancement
the assignment of more authority or promotion of employees to positions that bring rewards, such as increased salary, responsibilities
Examples: Promotion of position, resulting in increased salary, responsibility
3
Career advancement 3 disadvantages
- Need to create purposeful promotion positions
- Increased competitiveness due to limited number of promotions
- Employees may be promoted beyond their capacity
4
Career advancement 4 advantages
- Retain valuable employees
- Increase employee contribution
- Satisfy 3 of high-level needs in Maslow’s theory (Social, esteem, self-actualisation)
- Satisfy four drives theory (bond, acquire, learn, drive)
Define investment in training
The direction of finances, or resources such as time, into the teaching of skills to employees
Examples: Extra skills training, giving access to higher skilled jobs in future
3
Investment in training 3 advantages
- Shows business values employees (improve culture)
- Employees gain more skills (increase productivity/ efficiency)
- Increase staff retention because of positive culture
3
Investment in training 3 disadvantages
- Expensive
- Wasteful if no career advancement opportunity
- Employees may leave after training
Define support
The assistance or services provided by the business to help employees cope with difficulties that may impede their work performance
Examples: counselling and mentoring
3
Support 3 advantages
- Doesn’t cost business money
- Improve employee confidence
- Helps employees develop positive relationships (collaboration)
3
support 3 disadvantages
- Only works with positive culture
- Difficult to find reasons to support/ encourage employees
- Employees may be too dependent on support
Define sanction
a form of penalty or discipline imposed on an employee for poor performance
Examples: Demotion, reduction in salary, termination
2
Sanction 3 advantages
- Motivate employees to improve their work
- Stop inappropriate behaviour
- Quick short-term motivator
3
Sanction 3 disadvantages
- Excessive sanction can have a negative effect on motivation
- Only a short-term motivator
- May cause conflict and resentment towards management
Performance-related pay: 2 Short Term Benefits
- Provides immediate financial rewards such as pay increases, bonuses, and commissions,
- Encourages employees to work harder for short-term gains.
Performance-related pay: 1 Long Term Benefit
1 . Provide long term motivation if financial rewards are consistently available
(e.g share plans and profit-sharing)
Career advancement: 2 Short Term Benefit
- Greater job security - due to a pay rise and increase in responsibility
- Immediate motivation to perform well in the new role.
Career advancement: 2 Long Term Benefits
- Encourages long-term retention as employees see a pathway for growth,
- Fulfilling higher-level needs like esteem and self-actualisation.
Sanction strategies: 1 Short Term Benefit
- Creates fear of consequences
(Immediate compliance with workplace rules and performance expectations)
Sanction Strategy:1 Long term Benefit
- Minimal long-term impact, as it does not build employee commitment or motivation beyond avoiding punishment.
Investment in training: 1 Short Term Benefit
- Encourages employees to take on training for immediate job satisfaction + access to better-paying roles.
Investment in training: 1 Long Term Benefit
- Builds a sense of accomplishment and career growth, leading to long-term engagement and loyalty.
Support strategies: 1 Short Term Benefit
- Encourages employees by recognising good performance and providing assistance when needed.
Support strategies: 1 Long Term Benefit
- Fosters loyalty and commitment to the workplace, leading to a more engaged and motivated workforce.
off-the-job training
When employees learn skills in a location away from the workplace.
It usually involves sending individuals or groups of employees to a particular specialised training institution (such as a university or TAFE college).
off-the-job training 5 advantages
- Provide formal recognised qualification
- More intense without workplace distractions
- More structure + organisation (clear assessment processes)
- Outside experts provide broader experience
- Wider range of skills + qualifications that in workplace
on-the-job training 5 disadvantages
- Trainer quality varies
- Bad habits of old staff passed on
- Trainer may have to leave own duties to carry out training,
- Bad learning environment (distractions from other work activities)
- May disrupt production (if real tools + equipment are used)
off-the-job training 5 disadvantages
- To theoretical without access to workplace tools
- Expensive
- Lost working time
- Doesn’t relate directly to required skills in workplace
- External qualifications may tempt employees to move business
on-the-job training
occurs when employees learn a specific set of skills to perform particular tasks within the workplace. This training usually occurs in the working environment, and uses the equipment, machinery and documents that are present in that workplace.
on-the-job training 5 advantages
- Cost effective as no travel expenses,
- Employees are in a familiar environment (comfortable),
- Immediate feedback from experiences colleagues,
- Use actual equipment required for job,
- More productive as employees are working while training
On the Job and Off the Job training: 3 Similarites
- Both aim to enhance employee skills, job performance and support career progression
(leads to increase motivation + achievement of business objectives) - Both require time + resource invest
- Training can be tailored to business needs
On the Job and Off the Job training: On the Job 4 differences
- Training occurs while employee performs their job
(allows hands on experience in real work conditions) - Lower cost, due to internal resources being used and no need for travel
- Reduce productivity (trainers take time away from their tasks + mistakes made in training may effect workflow)
- Employees learn through practical experience
(effectiveness depends on trainers ability to teach)
On the Job and Off the Job training: Off the Job 4 differences
- Training conducted away from job
(in structured learning environment: classrooms, workshops) - Expensive, due to external trainers, course fees and travel costs
(employers may need to compensate employees for training time + business may experience staff shortages due to employees attending training) - Immediate application of skills is delayed due to learning being non practical
- Allows employees to focus without workplace distractions
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Define self-evaluation
a process whereby employees carry out self-assessment, based on a set of agreed criteria
Self-evaluation 4 advantages
- Employees are actively involved in performance management process, improving understanding of role
- Employees assess contribution to the business, so they can improve their performance
- Allows business to understand employee strengths + weaknesses, and how employees perceive their performance
- Highlights the need for training + allows employees to request training to improve performance + productivity
Self-evaluation 4 disadvantages
- May be completed dishonestly, causing incorrect evaluation
- Management may need to take responsibility for monitoring performance, documenting strengths + weaknesses, correct poor performance
- Some employees may be ill-equipped to undertake self-assessment
- Provision of training will increase business expenses
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appraisal
the formal assessment of how efficiently and effectively an employee is performing their role in the business
Appraisal 3 advantages
- Develops communication and allows positive relationship to grow between management + employees
- Feedback can help employees improve performance + provide areas for improvement
- Assist managers when making decision about promotions, dismissals + pay increases
Appraisal 3 disadvantages
- Stressful for managers + employees
- Time consuming (particularly if cycle becomes shorter, monthly or weekly)
- Expensive - staff who meet performance standards may expect promotion/ pay rise
*
management by objectives
a process by which management and employees agree on a set of goals for each employee, with these goals all contributing to the objectives of the business as a whole
management by objectives 4 advantages
- Employees are more likely to be motivated to achieve goals as they have set them
- Clear expectations for manager + employees
- Highlight areas where employee needs training (leading to career development)
- Improve communication + result in employees being more aware of business objectives
management by objectives 4 disadvantages
- Not useful for all types of employee
- Failure to meet objective could decrease motivation
- Expensive – staff who meet objectives may expect promotion/ pay rise
- Time consuming – meeting and reports can add responsibilities for management + employees
employee observation
a strategy where a variety of opinions on the performance of employees is sought with the aim of a more comprehensive picture of past and current performance
employee observation 3 advantages
- Overcome bias + tension between manager and employees
- Good to assess certain skills (leadership, team work, interpersonal capability)
- Feedback from different perspectives can give better picture of employee performance
employee observation 3 disadvantages
- Expensive + time consuming
- Requires high positive culture (damaging if participants have personal vendetta)
- Not as valuable to assess technique skills or achievement of business objectives
Define termination
the ending of the employment of an employee
Define retirement
occurs when an employee decides to give up full-time or part-time work and no longer be part of the labour force
Define redundancy
When a person’s job no longer exists, usually due to technological changes, a business restructure, or a merger
Define involuntary redundancy
when an employee is asked to leave the business against his or her will because their job no longer exists.
Define voluntary redundancy
when employees are informed of the situation and given the opportunity to nominate themselves for voluntary redundancy.
Define resignation
the voluntary ending of employment by the employee resigning from their job
Define dismissal
When the behaviour of an employee is unacceptable and a business terminates their employment
Define entitlement considerations
the rights to benefits that employees have when leaving the workplace, either on a voluntary or an involuntary basis
Define transition considerations
issues relating to the process of changing from one job to another or from one set of circumstances to another
2 Similaritites Between Entitlement and Transition considerations
- Both contribute to business’s labour expenses
- Both are part of the process in which employees end their relationship with the business
Differences Between Entitlement (2) and Transition considerations (2)
Entitlement Considerations
1. Required by law
2. Covers areas such as outstanding leave entitlements, including long service and holiday leave.
Transition considerations
1. Not required by law (ethical obligation)
2. Include activities such as workshops for resumé writing and interviewing skills (outplacement service)
Define workplace relations
the interactions between employers, employees, and representatives, to achieve a set of working conditions that will meet the needs of employees, as well as allowing the business to achieve its objectives
Define Human resource manager
coordinates all the activities involved in acquiring, developing, maintaining and terminating employees from a business’s human resources
Human resource manager 5 roles
Role: to create harmonious and productive workplace staffed by motivated, skilled and fulfilled employees by:
- Making sure employees receive correct wages and entitlements
- Negotiating between employees and/or representatives regarding workplace relation issues
- Training employees
- Dealing with disputes
- Implementation of agreement
- Termination management
Define Employees
the people who work for the business and who expect to be paid fairly, trained properly and treated ethically in return for their contribution to production
Employees 4 roles
- work towards the achievement of business objectives
- carry out duties allocated to them in their job description
- follow company policies to the best of their ability
- display the desired behaviours while carrying out their work
Define employer associations
organisations that represent and assist employer groups
employer associations 4 roles
- Workplace relations: Advise in areas related to disputes between the business and employees as well as workplace relations legislation. (May offer advice or represent employer)
- Changes in laws: Stay up to date with changes in laws. (May offer support + advice on how businesses need to adapt)
- Network: Connect members that can gain mutual benefit from each other (allow businesses to build beneficial relationship with other owners)
- HR: Offer routine HR services (training for members or provide recruitment support)
Define Union
a group of employees combining to protect common interest in all matters relating to their employment
Union 5 roles
Provide:
1. Negotiate and bargain on behalf of employees during collective bargaining process
- acts as official spokesperson to the media on behalf of the members
- argues employee’s case during hearing to determine awards
- provide support and advice to local union shop stewards and workers
- provide information to members on matters relevant to their workplace situation
Define Fair Work Commission
Australia’s national workplace tribunal that has a number of responsibilities under the Fair Work Act 2009
Fair Work Commision Role
- Check the new enterprise agreement to see it meets their requirements:
- the employees would be better off overall on this agreement than they would on an industry Award
- there is nominated expiry date
- disputes resolution procedure are specified in agreement
Define award
a legally binding document determined by the Fair Work Commission that sets out minimum wages and conditions for whole industries or occupations
Award 4 advantages
- Less costly for the business
- Less time consumed and fewer disputes over wages and conditions as awards cannot be negotiated
- Less work for management as allowances are already determined for each occupation
- Provides a stable and secure safety net for employees (wages cannot be offered below conditions)
enterprise agreement 4 advantages
- Flexible — can be tailored to specific workplace needs.
2.May be used to attract talented or highly skilled employees to the business through offering competitive wages
- Reward employees for greater effort and contribution to productivity
- A simpler method for determining wages and conditions of work
(business might make an enterprise agreement that incorporates Award entitlements into a base rate that will be paid to employees)
define enterprise agreement
an agreement on pay and conditions of work made at the workplace level and negotiated between groups of employees (or their union) and employers
Award 3 disadvantages
- Less flexibility — cannot be customised to the needs of a workplace
- Business using Awards may not attract the best or most talented candidates for a position, as they are offering industry minimum
- Unable to increase productivity through higher wages
enterprise agreement 3 disadvantages
- Time-consuming to negotiate — employees must be consulted during enterprise bargaining and proposed agreement must go through approval process before approved by the Fair Work Commission.
- Expensive to provide conditions that are better than the relevant Award
- Negotiations can break down causing disputes and industrial action, as well as harming relationship + productivity
Define mediation
the confidential discussion of issues with a neutral third party, who helps the parties in dispute to work towards an agreement, but does not offer suggestions or solutions
mediation 4 advantages
- Cost effective as it usually occurs in a less formal setting
- More time efficient if the parties can compromise
(mediation may last from a few hours to a few days) - Positive working relationships are maintained as the parties in dispute are encouraged to work together in reaching a decision.
- Mediation is voluntary — if both parties have agreed to it, they are both clearly willing to work towards a solution.
Mediation 4 disadvantages
- Decisions made are not legally binding (depending on the terms of settlement) meaning parties may not honour their commitments.
- Potential waste of time/ money as parties may refuse to attend mediation and it is also not compulsory to reach agreement.
- Power imbalance - One party may be stronger than the other, so the other party may feel intimidated.
(Management – Employee, Management may be able to control proceedings and achieve a more favourable outcome) - Information shared during mediation may benefit the other party.
Define arbitration
method to resolve workplace conflict involving an independent third party (such as a commissioner of the Fair Work Commission) hearing both arguments in a dispute and determining the legally binding outcome
arbitration 4 advantages
- The decision made by the arbitrator is legally binding and enforceable
- Arbitrations are compulsory to attend
- There is a guarantee of an outcome as the arbitrator will make a decision if the parties are unable to agree
- Process of coming to an outcome is quicker than mediation
Arbitration 3 disadvantages
- Parties have reduced control over the outcome, as the decision will be imposed by the arbitrator.
- Process may be more time consuming + expensive than mediation
- Relationship may be harmed during the process as arbitration does no aim to create a ‘win-win’ situation
Dispute resolution
formal systematic process that allows employees to complain about matters that affect them and their work
Tranition Considerations
5 outplacement services
- counselling.
- skills development
- resume writing.
- interview techniques
- job search.
Transition Considerations
3 Methods of assisting employees in their transition
- superannuation and pension entitlements.
- lifestyle planning.
- farewell parties and speeches.
4 entitlement considerations
- Redundancy pay or entitlements if the employees has been made redundant and is eligible (Up to 16 weeks of pay for employees of over a year)
- Any outstanding wages or other remuneration that have not been paid at the time of notice of termination
- Financial compensation for any accumulated annual and long service leave entitlements
- Financial compensation for untaken overtime
Woolworths: Case Study Introduction
Founded in 1924, Woolworths Group has grown into Australia’s leading supermarket chain. Now employing thousands nationwide, it continues to innovate in technology, sustainability, and customer experience to maintain its industry leadership.
Woolworths: 4 Drive Theory
- Defend: Camera’s placed on staff due to an increase in 131% increase in physical assault to staff
Woolworths: Relationship Between HR and Business Objectives
- Providing training to employees to increase efficiency and productivity
Woolworths: Maslow Theory
- Safety: Camera’s placed on staff due to an increase in 131% increase in physical assault to staff
Woolworths: Motivation Strategy
- Performance Related Pay: New enterprise agreement includes a wage increase of 11% over 3 years
Woolworths: Performance Management Strategies
- Management By Objectives: Used to track warehouse employee performance through headset communication
Woolworths: On the Job
- Tangata Moana Mentoring Program: For Māori team members, 30% moved into more advanced positions post training
Woolworths: Off the Job
- Future Work Fund: Investment of $50m into the FWF to improve employee technological skills
Woolworths: Pros (2) cons (2) of MBO
Cons:
* Stress, pressures, humiliation
* Decrease in motivation as scores are shown
* To challenging decreasing motivation
Pros:
* Improves efficiency and productivity of Woolworths achieving its objectives
* Areas of improvement highlighted + training provided
Woolworths: Entitlement Considerations
- Provides redundancy package to employees
Woolworths: Unions (United Workers Union)
- Push for higher worker wages and working conditions
Woolworths; Enterprise Agreement
- Effective 21/10/2024
Woolworths: Fair Work Commission
- Arbitrator during Wharehouse strike
- Stopped the strike as it breached good faith bargaining obligations and employees went back to work
Woolworths: Arbitration
- Stopped the Wharehouse strike as it breached good faith bargaining obligations and employees went back to work
