AOS2 Flashcards
what is human resource management?
the organisation of employee’s roles, pay, and working conditions
What does effective human resource management give
enable a business to
* retain its employees,
* giving them high levels of motivation
* job satisfaction
What does poor human resource management give
employees being unsatisfied and demotivated by their work task (affecting business objective completion)
what is motivation
the willingness of an individual to expend energy and effort in completing a task.
what does more motivation by employees lead to?
increase productivity of them, and the willingness to work hard to achieve business objectives
what are 3 benefits of motivated employees
- Likely be more focused, adaptable, and productive
- Employees feel valued, appreciated
- More satisfied employees mean a business can retain and use employees’ skills and experiences
what is Maslow’s Hierarchy of Needs
a motivational theory that suggests people have five fundamental needs, and their sequential (in sequence) attainment of each need acts as a source of motivation.
what are the 5 fundamental needs (Maslow’s)
- physiological
- safety and security
- social
- esteem
- self-actualisation
what are the 3 intrinsic (higher-order) needs (Maslow’s)
social, esteem, self-actualisation
what are the 2 extrinsic (lower-order) needs (Maslow’s)
physiological, safety and security
what are physiological needs
the basic requirements for human survival, such as food, water, and shelter
what are 2 examples of physiological needs in a business
- wage
- working conditions
what are safety and security needs
the desires for protection from dangerous or threatening environments
what are 3 examples of safety and security needs in a business?
- job security (long term contracts)
- safe and healthy workplace (safety equipment)
- required training is given
what are social needs
the desires for a sense of belonging and friendship among groups, both inside and outside the workplace
what are 2 examples of social needs in a business
- having friendly associates
- having organised employee activities
what are esteem needs
an individual’s desires to feel important, valuable, and respected
what are 2 examples of esteem needs in a business
- working for a promotion
- pay being risen due to status of role
what are self-actualisation needs
the desires for an employee to reach their full potential through creativity and personal growth
what are 3 examples of self-actualisation needs in a business
- challenging work allowing for creativity
- participative decision-making
- opportunities for personal growth and advancement
what are 2 advantages of Maslow’s Hierarchy of Needs
- Simple and easy to understand, so easy to implement
- managers can observe employee behaviour and figure out what motivates them (increasing efficiency, productivity, and profitability of the business)
what are 3 disadvantages of Maslow’s Hierarchy of Needs
- time-consuming for management to assess which needs have been met for each individual employee
- no explanation of what motivates employees once they have achieved self-actualisation.
- no way to measure precisely how satisfied one level of need must be before the next higher need becomes a motivator
what is Lawrence and Nohria’s four drive theory
a motivational theory that suggests that people strive to balance four fundamental desires
what are these 4 fundamental desires (lawrence and nohria)
- drive to acquire
- drive to bond
- drive to learn
- drive to defend
drive to acquire definition
the desire to achieve rewards and high status
what types of rewards can the drive to acquire give
non-financial and financial
what are 3 non-financial rewards that employees can get
- pathways for promotion
- prestigious job title
- increased range of responsibilities
what are 3 financial rewards that employees can get
- performance-based bonuses
- higher wages
- increase in salary due to promotion
drive to bond definition
the desire to participate in social interactions and feel a sense of belonging
how can a manager fulfil the drive to bond
creating an environment that promotes both work-related and personal interactions
what are 3 examples of how a manager can implement strategies to fulfil the drive to bond
- Celebrating employee milestones and birthdays
- Encouraging group work instead of tasks to be done by a single person
- Holding social events that employees can regularly attend and participate in
drive to learn definition
desire to gain knowledge, skills, and experience
what should managers do to fulfil the drive to learn
provide employees with opportunities to grow, face and overcome challenges and enhance their knowledge and skills
what are 3 examples of manager implementing strategies to fulfil the drive to learn
- Adopting a mentoring system between junior and senior employees
- Regularly rotating the types of tasks assigned to employees
- Assigning challenging work tasks to employees to broaden their range of skills
drive to defend definition
the desire to protect personal security as well as the values of the business
how can managers fulfil the drive to defend
ensure that employees can defend themselves and the business when required
what are 3 ways that managers can fulfil the drive to defend
- Implementing policies using employee input
- Developing a vision that employees agree with
- Building trust by supporting and collaborating with employees
What are 3 advantages of Lawrence and Nohria’s four drive theory
- is a model for managers for an increase in employee engagement and motivation
- managers can use any 4 drives at one time
- Strategies that motivate employees through the drive to acquire can also boost productivity
What are 3 disadvantages of Lawrence and Nohria’s four drive theory
- time-consuming (determining each strength for each drive in each employee)
- Should one drive dominate, an imbalance can occur between the personal and business outcomes
- Dominant drives for each employee can change over time, (management has to regularly assess effectiveness)
What is Locke and Latham’s goal setting theory
A motivational theory that states that employees are motivated by clearly defined goals that fulfil five key principles
what are the 5 key principles for goal setting
- clarity
- commitment
- task complexity
- feedback
- challenge
what should does a clear (clarity) goal include
Clear and specific goals, that are easy to measure
As well as having a time-frame to coordinate resource use
What does a committed goal include
a goal that an employee want to work towards
With more input of the goal creation, the more likeliness of goal completion
what is a complex goal include (task complexity)
It is important that goals are challenging enough to motivate employees, though the level of complexity should not overwhelm them.
what happens if the goal is too complex
motivation will decrease as it may be out of their reach
what should a challenging goal include
challenging goals create more motivation, because people are more motivated to complete something that they haven’t done before.
The goal should still be achievable. There is no point setting a goal that is unachievable or beyond the capabilities of the employee (setting up to fail).
what does feedback of the goal include
include opportunities for ongoing, constructive feedback for the employee.
why is feedback on goal important (what does it give)
It provides opportunities to offer recognition for progress achieved, to make adjustments to the goal if necessary
how should goals be made
Managers need to sit down with individual employees or small teams of employees to collaboratively create a set of goals that they could work towards achieving over a specific period of time.
what are 3 advantages of the goal setting theory
- Goals that align employee goals with achieving business objectives are likely to improve business performance
- The process of managers setting goals with employees can improve levels of trust and the relationship between employees and management.
- Employees may be more motivated to complete tasks if work goals align with their personal interest
what are 3 disadvantages of the goal setting theory
- Goals that are too difficult can become overwhelming and lead to dissatisfaction
- If goals are not specific enough, employees be confused and can lack focus.
- The process of collaboratively establishing goals with individual employees or teams and providing regular feedback is very time consuming
what is a strategy?
A strategy is a set of specific actions used to achieve a particular outcome (this case to motivate employees)
what are financial motivating strats
(motivational strategies)
strategies that generate motivation by providing some monetary incentive
what are non-financial motivating strats
(motivational strategies)
strategies that provide an incentive or benefit to the employee through non-monetary means
what are the 5 main motivation strategies
- performance-related pay
- career advancement
- investment in training
- support
- sanction
performance-related pay definition
a financial reward that employees receive for reaching or exceeding a set business goal
what are 3 examples of performace-related pay being used in a business
- pay increases
- bonuses
- commissions (extra money with sales)
what are 3 advantages of using performance-related pay
- Can provide immediate motivation
- Clear criteria on how to achieve the incentive
- Can be used to motivate many employees at once improving overall business performance.
what are 3 disadvantages of using performance-related pay
- Can cause conflict among employees if they feel assessment is unfair
- Safe work practices may be sacrificed to achieve set outcomes
- time-consuming for the manager to review each employee’s performance against criteria and determine who receives a financial reward
what is the short-term advantage of performance-related pay
Employees may be motivated to improve performance quickly in order to gain financial rewards
what is a short-term disadvantage of performance-related pay
Employees may be demotivated if they are competing against their colleagues for financial rewards.
what is the long-term advantage of performance-related pay
With history of reward and recognition for high-performing employees, employees are more likely to be motivated by the expectation that they will receive rewards in the future
what is the long-term disadvantage of performance-related pay
In the long term, employees may become demotivated if they continually have to compete with their peers to achieve financial rewards
what can career advancement in a business look like
job enlargement
job enrichment
simple terms what is job enrichment
increased authority over their work and a greater depth of content
simple terms what is job enlargment
giving employees more tasks to do (could be more complex or more variety)
career advancement definition
the upwards progression of an employee’s job position
what are 3 advantages of career advancement
- Can provide a means of retaining valuable employees, (can develop inside the business, with promotion or more responsibilties)
- Employees may develop broader skills and knowledge base which may help with long term career opportunities
- cheaper than recruiting new employees
what is the short-term advantage of career advancement
Employees may be rapidly motivated if they are taking on more responsibility in the workplace
what are 3 disadvantages of career advancement
- conflict due to limited number of roles available
- May not motivate employees immediately as a promotion can take time to earn
- May cause resentment from those overlooked for promotion
what is the short-term disadvantage of career advancement
Employees may become resentful and demotivated if they believe they were not considered for a promotion.
what is the long-term advantage of career advancement
Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities.
what is the long-term disadvantage of career advancement
There may be a limited number of responsibilities an employee can absorb into their role within a business.
investment in training definition
allocating resources to improve employee skills and knowledge
what can investment in training look like in a business
- providing employees with mentoring
- training programs within the business
- paying for employees to be trained by other professionals outside of the business
what are 3 advantages of investment in training
- Employees feel valued as the business recognises their work and is willing to invest in them
- productivity gains and quality improvements as employees are increasing their skills and knowledge
- Can provide a sense of job security for employees as the business is making an investment in the employee
what are 3 disadvantages of investment in training
- Training can be financially expensive, especially for off-the-job training
- There may be a loss of productivity temporarily while the employee is being trained
- Training may not be directly relevant to tasks undertaken by employees.
what is the short-term advantage of investment in training
Employees may be motivated in the short term by the opportunity to learn new skills
what is the short-term disadvantage of investment in training
Taking time off work to participate in training programs may cause employees to lose momentum and consequently lack motivation.
what is the long-term advantage of investment in training
Employees may be constantly motivated as they feel valued by the business when they are provided with opportunities to develop their skills
what is the long-term disadvantage of investment in training
Employees may become demotivated by the consistent workflow interruptions caused by training programs.
support (motivational strategy) definition
involve providing employees with any assistance that improves their satisfaction at work
what can support look like in a business (2)
- regularly checking on their health and wellbeing.
- praising and encouraging good performance.
what are 3 advantages of using support
- Problems can be dealt with efficiently before they escalate, saving time.
- Support is generally financially cheap
- Employees who feel supported are less likely to leave the business.
what are 3 disadvantages of using support
- It can be time-consuming for a manager to maintain relationships with staff
- May be ineffective if a manager does not have good interpersonal skills.
- It can be costly to provide ongoing support
what is the short-term advantage of support
Employees may be motivated by working in a business where their wellbeing is considered and valued.
what is the long-term advantage of support
Employees may be motivated for a long period of time when they feel valued by management and are able to resolve issues efficiently.
what is 3 examples of sanction being used in a business
written warnings, demotion, lost promotional opportunity
sanction definition
involve penalising employees for poor performance or breaching business policies
what are 3 advantages of sanction being used
- can motivate some workers to improve their performance
- It can get some employees motivated to act quickly as they feel guilty
- Does not incur any immediate cost to implement.
what are 3 disadvantages of sanction being used
- Can create a negative corporate culture as tasks are completed out of fear.
- Excessive emphasis on sanctions can reduce employee sense of belonging
- Levels of trust between employees and management may decrease.
what is the long-term disadvantage of sanction
The use of sanctions can contribute to a negative workplace environment, decreasing employee satisfaction and motivation.
what is the short-term disadvantage of sanction
Employees may become resentful of their managers using sanction, potentially leading to resignations and decreases in productivity.
what is the short-term advantage of sanction
Employees may be motivated to quickly follow instructions in order to avoid punishment.
what are the 2 types of training
- on the job
- off the job
what is training
the process of increasing the knowledge and improving the skills of an employee to help them perform more effectively and efficiently in their role.
what does on the job training involve
employees improving their knowledge and skills within the workplace
what are 3 examples of on the job training being used in the workplace
- Being coached by an existing employee on how to perform a role
- Job shadowing (watching over experienced employee working in the same position)
- senior staff member acts as a mentor
what are 3 advantages of on the job training
- No travel is required, expenses and costs are reduced
- Employees can quickly become familiar with work equipment, reducing the time to complete their training
- Training is tailored to meet the specific needs of the business
what are 3 disadvantages of on the job training
- Poor habits of staff may be passed on to other employees
- Quality of the trainer may vary (teaching skills of other employees low)
- Senior staff who are responsible for training new employees are taken away from their own work duties
what does off the job training involve
employees improving their knowledge and skills in a location external to the business
what are 3 examples of off-the-job training
- Attending conferences that provide theoretical knowledge
- Performing simulations or workshops external to the workplace
- Online training courses that are performed outside of traditional working hours
what are 3 advantages of off the job training
- training from professionals gives employees new perspectives on how to perform their roles to a higher standard
- It does not take more experienced employees away from their jobs to train other employees
- Errors made by employees during training do not occur on site, decreasing expenses associated with waste
what are 3 disadvantages of off the job training
- More expensive, with fees charged for travel costs, loss of productivity, possibly accommodation
- Lost working time and potential output while the employee is absent from work
- Employees may try to find a job elsewhere with the external qualifications they gain, causing this investment in training to be redundant
what is performance management
the process used to improve business and individual employee
performance to ensure that goals and objectives are being met.
what are the 4 performance management strategies
- management by objectives
- performance appraisals
- self-evaluation
- employee observation
what does management by objectives involve
both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives.
what are 3 advantages of management by objectives
- Promotional opportunities may arise for employees who consistently achieve their objectives
- Collaboration between managers and employees when setting objectives can foster positive workplace relationships
- Aligning employee objectives with the business’s overall objectives means that employees are always working towards business goals
what are 3 disadvantages of management by objectives
- Developing objectives that benefit both the business and employees can take time
- Employees may take harmful shortcuts in their work in order to achieve their objectives, negatively impacting progress of objective
- Employees that achieve objectives may desire monetary rewards or promotions, increasing the business’s expenses.
what does performance appraisals involve
a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for future improvements
what is a way that performance appraisals can be undertaken, and how does it work
Essay Method, manager will keep a journal on each employee being appraised, these may be about the performance of different aspects of the employees tasks
what are 3 advantages of performance appraisals
- Employees who demonstrate strong performance may be recognised for promotional opportunities.
- Communication between managers and employees during one-on-one reviews, improving workplace relationships.
- The results from the performance appraisal process can outline areas where employees are struggling, training can be given
what are 2 disadvantages of performance appraisals
- Employees may lose motivation if they receive multiple poor performance appraisals
- This process can be time consuming as managers individually review each employee’s performance
what does self-evaluation involve
an employee assessing their individual performance against a set of criteria
what are 3 advantages of self-evaluation
- Self-evaluation can save managers time, as employees evaluate their own performance
- The employer can gain insight into an employee’s understanding of their own strengths and weaknesses and assign work accordingly
- Employees may be empowered to improve performance (directly involved in performance management)
what are 3 disadvantages of self-evaluation
- If an employee is biased or dishonest in assessing their performance, a manager will not gain reliable information
- Employees may underestimate or exaggerate their own skills, (not reliable or accurate eval)
- Training courses provided to address employee weaknesses can increase business expenses
what does employee observation involve
a range of employees from different levels of authority assessing another employee’s performance against a set of criteria
what are 3 advantages of employee observation
- Employees may be responsive to feedback provided by peers as they value their opinion
- Where an employee is unaware, they are being observed, this allows for an accurate analysis of an employee’s performance
- The manager can gain multiple different perspectives about an employee
what are 3 disadvantages of employee observation
- Results may be misleading if employees are aware they are being evaluated
- Employees may feel stressed if they are made aware that they are being observed, leading to poorer performance
- The development of criteria for observers to use can be time consuming
what is termination
the process whereby a business ends its employment contract with an employee
what are the types of ways employees can be terminated
voluntarily, involuntarily
what is the termination method that is both voluntary and involuntary
redundancy
what are the 2 termination methods that are exclusively voluntary
retirement, resignation
what is the termination method that is exclusively involuntary
dismissal
what does retirement involve
an individual deciding to leave the workforce permanently as they no longer wish to work
what does resignation involve
an employee voluntarily terminating their own employment, usually to take another job position elsewhere
what does redundancy involve
an employee no longer working for a business because there is insufficient work or their job no longer exists
what is voluntary redundancy
a business allows employees to nominate themselves to become redundant after the business announces that this process will occur
what is involuntary redundancy
a manager notifies employees that their position in the business has been made redundant, providing them with no choice in the matter.
what does dismissal involve
the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behaviour
what are the two considerations a business may have when terminating an employee
transition, entitlement
what are entitlement considerations
legal obligations an employer owes to its employees following the termination of their employment contract
what is an example of an entitlement consideration for retirement
entitled to receive their accrued entitlements including payment of untaken annual leave and untaken long service leave
what is an example of an entitlement consideration for resignation
The employee must give a period of notice to the employer. The amount of notice is stipulated in the employment agreement. An employer can withhold money if the employee does not give the minimum required notice.
what is an example of an entitlement consideration for redundancy
notified in writing about the redundancy which should include matters such as reasons for termination, period of notice, actual date of termination and the redundancy payment
what is an example of an entitlement consideration for dismissal
to full payment for the work they have completed
what are transition considerations
social and ethical practices that a manager can consider implementing when terminating employment.
what are 3 examples of transition considerations
can apply to many types of termination
- offering resume writing or interview training to employees to improve their employability
- introducing counselling and financial services to ease the uncertainty of leaving the business
- providing retiring employees with reduced number of hours as getting closer to retiring
what are the 5 main participants in the workplace
- HR managers
- employers/employer associations
- employees
- unions
- Fair Work Commision
what are 3 roles of HR managers
- Act as mediating party
- Implementing agreements
- Resolving conflicts
employees definition
individuals who are hired by a business to complete work tasks and support the achievement of its objectives
what is the main goal of employees
to work towards completing business objectives
what are 3 examples of roles employees can have
- Complete tasks with proper care and diligence
- Avoid misusing confidential information
- Obey terms in their contract
employer association definition
Employer associations are advisory bodies that assist employers in understanding and upholding their legal business obligations.
what are 3 roles of employer association
- Employee relations
- Changes in laws
- Provide support
in depth role of employer association - employee relations
they advise in areas related to disputes between businesses and employees, They may offer advice or even be a representative of an employer during a collective bargaining period
what is the collective barganing period
the negotiation between employer and employees in regards to wages and conditions
in depth of employer association - change in laws
The associations keep their members informed of the implications of these legislative changes, making employers aware of their rights and obligations.
union definition
organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions.
what are 2 roles of unions
- Seek better wages and work conditions (for emps)
- Represent employees and negotiate these new wages and conditions (for emps)
fair work commision definition
Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by the Fair Work Act.
what are 3 roles of the fair work commision
- Set national minimum working standards
- Approve and monitor enterprise agreements
- Act as a mediator
what are the 2 main ways of determining wages and working conditions
awards and agreements
what are awards
legal documents that outline the minimum wages and conditions of work for employees across an entire industry
who develops the awards
FWC, bases on considering submissions made by employees and employers (or representatives)
what are 2 advantages of using awards
- All employees within a particular industry, receive the same minimum wage and working conditions (level playing field)
- the use of Awards is time efficient, (no bargaining process)
what are 2 disadvantages of awards
- Businesses lack the opportunity to develop a relationship with their employees, as awards are based upon predetermined standards
- Employees may be unsatisfied by only receiving the minimum wages and conditions.
what are agreements
legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of businesses
how is the agreement developed
collective bargaining, done by employees and employers (or the representatives) at the workplace level
what does collective bargaining involve
negotiation between employees or employees (or representatives)
does the FWC have to approve the agreements
yes
what are 3 advantages of agreements
- positive relationships between employees and employers may develop in the negotiation process
- Greater flexibility for both the employer and the employee in having a collective agreement that reflects the needs of individual workplaces
- Can improve employee satisfaction and performance (better wages and working conditions)
what are 3 disadvantages of agreements
- More time-consuming for employers to undertake negotiations
- Employees who cannot gain representation from unions may be exploited by employers (power imbalance)
- As they provide wages and/or working conditions above the Award, they are generally more expensive to implement
4
what are disputes commonly about
wages and working conditions, safety, and business policies
when a dispute occurs, what are the 4 simple steps for an outcome
- try to resolve in the business
- if cannot be solved, get a third party to try to help
- attempt mediation
- if mediation doesn’t work, go to arbitration
what does mediation involve
an impartial third-party facilitating discussions between disputing parties to help each side of the conflict reach a resolution themselves
what can the third party do in mediation
third party only assists the conversation to help the disputing parties to work towards their own agreement but will not offer suggestions or make any decisions on their behalf
which dispute resolution method results in a legally binding decision
arbitration
what are 3 advantages of mediaition
- Participants in mediation are generally more satisfied with the agreed outcome
- It is less expensive than more formal dispute resolution processes (informal setting)
- When parties reach decisions together, it promotes positive working relationships for the future
what are 3 disadvantages of mediation
- Each party is under no obligation to reach an agreement
- There may be an unbalanced power dynamic between employees and managers (employees are tentatitive/nervous)
- If a final decision is not reached, the process can be a waste of time.
what does arbitration involve
an independent third-party hearing arguments from both disputing parties and making a legally binding decision to resolve the conflict
what are 2 advantages of arbitration
- It guarantees that a final decision is made by a third party
- The final decision is legally binding (argument cannot happen again)
what are 3 disadvantages of arbitration
- expensive, due to the costs incurred from conducting hearings.
- Employees have reduced control over the final decision and therefore may be unhappy at the end of this process.
- may harm future workplace relations (people may be unhappy (both parties))
what are 2 similarities between arbitration and mediation
- Both methods require an independent body or individual to be involved in resolving the dispute
- Both methods are more formal than resolving disputes within a workplace without a third party
what are the 2 dispute resolution methods
mediation and arbitration
