human resource management Flashcards
human resource management
the effective management of the formal relationship between the employer and employees including the organisation of employee’s roles, pay and working conditions.
human resource manager
an individual who coordinates activities involved in acquiring, developing, maintaining and terminating employees from a business’ human resources.
managing employees and business objectives
how effective management of employees help to achieve business objectives. (see HR -> managing employees and business objectives)
maslow’s hierarchy of needs
the motivational theory that suggests people have five fundamental needs, and their sequential attainment of each acts as a source of motivation.
hierarchy of needs
- physiological needs
- safety and security needs
- social needs
- esteem needs
- self actualisation needs
physiological needs
the basic requirements for human survival such as food, water and shelter.
safety and security needs
the desires for protection from dangerous or threatening environments.
social needs
the desires for a sense of belonging and friendship among groups, both inside and outside the workplace.
esteem needs
an individual’s desire to feel important, valuable and respected.
self actualisation needs
desires of an individual to reach their full potential thorugh creativity and personal growth.
motivation
the willingness of an individual to expend energy and effort in completing a task.
advantages of maslows theory
- can give managers a clear path to motivate employees
- can help to determine which level of the hierarchy is motivating employees
- employees can work in an environment that allows them to reach their full potential
- motivation can occur quickly as employees progress through lower levels
disadvantages of maslows theory
- difficult to measure the success
- assumes all employees are motivated in the same order
- not all employees will be motivated by the same needs at once
- time consuming to determine levels of each individual employee
lawrence and nohria’s four drive theory
a motivational theory that suggests people strive to balance four fundamental desires.
lawrence and nohria’s four drives
- drive to acquire
- drive to bond
- drive to learn
- drive to defend
drive to acquire
the desire to achieve rewards and high status.
drive to bond
the desire to participate in social interactions and feel a sense of belonging.
drive to learn
the desire to gain knowledge, skills and experience.
drive to defend
the desire to protect personal security as well as the values of the business.
advantages of four drive theory
- model is a simple approach for motivating employees
- drives can be attained simultaneously
- satisfying drives can improve employee performance and business productivity
disadvantages of four drive theory
- managers may find it difficult to manage four drives simultaneously
- some drives can be overlooked
- rewarding individuals can lead to unhealthy competition within workplace
- excessive time may be lost as managers spend time analysing different drives to cater to employees
- financial incentives come at a cost to the business
locke and latham’s goal setting theory
a motivational theory that states that employees are motivated by clearly defined goals that fulfill five key principles.
- clarity
- commitments
- challenge
- task complexity
- feedback
employment cycle
the relationship between a business and its employees throughout the stages of each employee’s time with the business.
three phases of cycle:
1. establishment phase
2. maintenance phase
3. termination phase
establishment phase
the planning of staff needs, recruitment and selection of staff as well as the determination of employment arrangements and remuneration.
planning -> business decides to cosnider staffing needs, recruitment and selection of staff
recruitment -> the process of attracting suitable applicants to the job identified
selection -> the process by which the most suitable applicant is chosen to undertake the job
employment arrangements -> the schedule agreed to in a designated period of time which an employee works
remuneration -> the wages or salary package provided to employees for work or service performed
maintenance phase
the period of time which the employee actually works for the business.
induction -> the process of ensuring a new employee is familiar with the business
training -> learning new skills and knowledge that may be necessary in order to adapt to change in business processes
performance management -> improving productivity and getting the best out of employees to achieve business objectives
termination phase
the termination of the employment relationships and dealing with entitlement and transition issues
termination management
the employment relationship ending.
voluntary termination
when an employee decides to retire, happens when an employee seeks out a different position with a different company.
involuntary termination
when positions become redundant, happens when an employee expresses unsatisfactory behaviour
maslow vs locke and latham
similarities:
- successful achievement of a goal in locke and latham is similar to meeting esteem and self actualisation needs in maslow
- both theories highlight the importance of achieving job satisfaction as a key motivator
- both theories focus on achieving one thing at a time
differences:
- maslow’s theory is a long term process through a series of steps whereas when a goal is achieved in locke and latham, the process ends
- maslow’s concentrates on internal needs of employees while locke and latham focus on the setting of the goals (external)
- employees are significantly important in goal setting while managers are more significant in maslow’s
locke and latham vs lawrence and nohria
similarities:
- rewards that come from the achievement of a goal in locke and latham can be linked to lawrence and nohria’s drive to acquire
- both theories require the manager to understand the needs of the employees
- both theories primarily focus on employees
differences:
- two different sets of ideas, lawrence and nohria’s theorise that individuals are motivated to satisfy internal drives, whereas locke and latham theorises that individuals are moticavated to achieve external goals
- locke and latham is where a person works through one goal at a time and lawrence and nohria assumes that all four drives can be satisfied simultaneously
- goal setting aligns more with business objectives whereas the drive theory focuses more on internal motivating forces
maslow vs lawrence and nohria
similarities:
- both theories explain human behaviour in general and have been adapted for application as theories of workplace motivation
- both theories place a great deal of importance on the achievement of employee satisfaction
- drive to acquire can be compared to maslow’s physiological needs
differences:
- maslows hierarchy has five different levels of needs whereas nohrias has four drives of equal significance
- maslow’s theory assumes a sequential set of steps where a person will satisfy one level at a time whereas the four drives can be satisfied simultaneously
- satisfying drive to defend is minimising negatives whereas maslow hierarchy concentrates on positive motivators
motivational strategies
- performance related pay
- career advancement
- investment in training
- support strategies
- sanction strategies
performance related pay
the monetary compensation provided to employees relative to how their performance is assessed according to set standards.
advantages of performance related pay
advantages:
- direct financial rewards to employess directly related to improved performance
- should improve productivity levels -> improves levels of engagement and commitment to the business
- rewards are easily calculated and predictable
disadvantages of performance related pay
disadvantages:
- employees doing similar work may expect similar rewards which could potentially lead to jealousies
- businesses may not be able to affort performance related pay
- not all employees are motivated by pay
direct payments (performance related pay)
- pay increases
- bonuses
- commissions
- share plans
- profit sharing
- gain sharing
career advancement
the assignment of more responsibilities / authority to employees or the promotion of employees to positions that bring rewards, such as increased salary.
advantages of career advancement
advantages:
- can retrain valuable employees
- can be used to reward past performance -> increasing contribution from employees
- will satisfy employees who desire a sense of achievement or extra responsibility
disadvantages of career advancement
disadvantages:
- promotion positions cannot be created
- employees may need to compete for limited promotion positions, creating rivalries and conflict
- some employees may be promoted beyond their capacity
investment in training
the direction of finances or resources into the teaching of skills to employees.
advantages of investment in training
advantages:
- indicates to employees that the business values contribution and will support advancement in careers
- can improve the skills of employees, which can foster feelings of confidence and work can be performed more productively
- may improve employee retention as staff loyalty and motivation are improved
disadvantages of investment in training
disadvantages:
- training may be wasted if there is not a sufficient number of jobs requiring higher skill levels by the business
- businesses may not be able to afford the costs of training
- businesses may pay for training only for employees to leave the position for another business
support strategies
the assistance or services provided by the business to help employees cope with difficulties that may impede their work performance.
advantages of support strategies
advantages:
- forms of support can be provided with little to no cost to the business
- services such as counselling and mentoring can help employees develop meaningful professional relationships
- can positively influence employee attitudes and help to improve confidence, improving motivation
disadvantages support strategies
disadvantages:
- can be difficult reasons to support and encourage some employees
- employees may become too dependent on support services provided
- requires a business to have a positive corporate culture
sanction strategies
a form of penalty or discipline imposed on an employee for poor peformance.
advantages of sanction strategies
advantages:
- sanctions for poor behaviour in the work place can motivate some employees to improve work performance
- may quickly stop inappropiate behaviour of some employees
disadvantages of sanction strategies
disadvantages:
- excessive emphasis on sanctions can reduce employee sense of belonging and therefore have a negative impact on motivation
- can cause resentment in employees -> conflict between management and staff
- tends to act as only a short term motivator
training
the process of teaching staff how to do their jobs more efficiently and effectively by boosting their knowledge and skills.
benefits of training for employees and the business
employee benefits:
- opportunity for promotion and self improvement
- improved job satisfaction through better job performance
- a challenge
- adaptability
business benefits:
- higher productivity through better job performance and more efficient use of human resources
- goals and objectives more effectively met
- reduced costs due to less labour turnover and absenteeism as well as fewer errors and accidents
- a more capable ‘mobile’ workforce
on the job training
employees learning a specific set of skills to perform particular tasks in the workpkace.
advantages of on the job training
- cost effective alternative as there are no travel expenses or other costs incurred
- employees are working while training
- trainees can familiarise themselves with equipment that is required to do jobs
- immediate feedback from experienced employees
disadvantages of on the job training
- quality of trainers can vary
- bad habits of older saff can be passed on to younger employees
- leadning environments can be noisy and cause distractions
- tools and equipments used may disrupt production
- trainers may need to leave their own duties to carry out training
off the job training
the conduct of training outside of the workplace.
advantages of off the job training
- ability of a wider range of skills and qualifications than those in the workplace
- outside experts and specialists can provide broader experience
- more structured and organised with clear assessment processes
- can provide formally recognised qualification for employees
disadvantages of off the job training
- may be theoretical without access to workplace tools or equipment
- more expensive, fee charges, travel costs
- lost working time while employee is absent from workplace
- employees with an externally recognised job qualification may be tempted to leave to find a better job
development
the process of preparing employees to take on more responsibilities in the future, acquiring better knowledge and skills as well as gaining more experience.
programs aiming to train
- job rotation
- mentoring
- formal business training
job rotation
the employee experiencing many aspects of a business.
mentoring
a coach supporting an employee as they learn.
formal business training
the participation in programs such as Masters of Business Administration (MBA)
performance management
improvement of business and individual employee performance by relating the business’ performance objectives to the employee’s performance objectives.
management by objectives
a process in which management and employees agree on a set of goals for each employee, with these goals all contributing to the objectives of the business.
advantages of management by objectives
- employees involved in goal setting are more likely to work productively and fulfill their responsibilities
- managers and employees know what is expected of the both of them
- can improve communication and result in employees aware of business objectives
disadvantages of management by objectives
- can be time consuming
- faliure to meet objectives could become demoralising for some employees -> results in a lack of motivation
- staff who meet objectives may expect a pay rise or promotion -> costly for the business
appraisal
the formal assessment of how efficiently and effectively an employee is performing their role in the business.
purposes of appraisal
- provide feedback from management to employees regarding work performance
- act as a measurement against which promotion and pay rises can be determined
- help the business monitor employee performance
- identify employee training and development needs
- identify new objectives for employees and put a plan in to improve future performance
- review employee objectives in line with business objectives
common methods of appraisal
- essay method
- critical incident method
- comparison method
essay method
a manager keeping a journal on each employee being appraised.
critical incident method
the manager recording only exceptionally good or bad aspects of work performance.
comparison method
each employee being ranked according to a list of predetermined criteria.
advantages of performance appraisals
- facilitates communication and allows positive relationships to develop between management and employees
- feedback can help employees improve their performance -> provided with areas for improvement
- information can assist managers to make decisions about pay increases, promotions or dismissals
disadvantages of performance appraisals
- can be time consuming when cycles are shorter (monthly, weekly)
- can be stressful for managers and employees
- staff meeting performance standards may seek a pay rise or promotion which is costly
self evaluation
a process whereby employees carry out self assessment based on a set of agreed criteria.
advantages of self evaluation
- allows employees to be actively involved in the process of performance management and assists understanding of roles in the business
- enables employees to assess on contribution to the business (strengths and weaknesses)
- provides opportunity for businesses to gain insiht into employee perception of performance + strengths and weaknesses
disadvantages of self evaluation
- employees often overstate their peformance (dishonesty)
- some employees may think they are incapable of taking a self assessment
- provision of training will be costly
employee observation
a strategy where a variety of opinions on performance of employees is sought using past and current performance.
advantages of employee observation
- allows managers to gain a broad range of observations on an employee
- helps to identigy strengths and weaknesses
- employees can imitate strengths of other colleagues
disadvantages of employee observation
- staff may feel stressed when observed
- not always valuable in assessing technical skills or achievements of objectives
- staff receiving positive feedback may expect a pay eise or promotion -> costly
termination
the ending of the employment of an employee.
retirement
an employee deciding to give up full time or part time work to longer be part of the labour force.
redundancy
an individual’s job no longer existing usually due to technological changes, a business restructure or a merger or acquisition.
dismissal
the behaviour of an employee being unacceptable and a business termination their employment as a result.
unfair dismissal
an employee being dismissed because the employer has discriminated against them in some way.
entitlement considerations
the rights and benefits that employees have when leaving the workplace, either on a voluntary or involuntary basis.
pay in lieu of notice
paying out the notice to an employee.
transition considerations
issues relating to the job process of changing from one job to another or from one set of circumstances to another.
workplace relations
the interactions between employers and employees or their representatives, toa cheive a set of working conditions that will meet the needs of employees.
trade unions
organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members.
employer associations
groups that represent and assist employers.
government role in employee relations
- legislator
- employer
- economic manager
- administrator of government policies on employee relations
- representative of australia in the international arena
fair work commission
australia’s national workplace tribunal that has a number of responsibilities under the Fair Work Act 2009.
award
a legally binding document determined by the Fair Work Commission that sets out minimum wages and conditions for whole industries or occupations.
collective bargaining
determining the terms and conditions of employment through direct negotiation between unions and employers.
advantages of awards
- less costly for the business
- less time consuming in determining appropiate terms and conditions
- less work for management to complete as allowances are predetermined for each occupations
- provides a stable and secure net for employees
disadvantages of awards
- less flexibility
- modern awards can be complex
- businesses using awards may not attract the best or most talented candidates for a position
penalty rates
the additional wages paid to employees who work outside of normal working hours.
enterprise agreement
a negotiation on pay and conditions of work made at the workplace level and negotiated between groups of employees and employers.
advantages of enterprise agreement
- flexible
- greater effor and contribution to productivity improvements by employees can be rewarded
- can attract talented or highly skilled employees to the business
- simpler method for determining wages and conditions of work
disadvantages of enterprise agreement
- time consuming to negotiate
- conditions that are better than relevant awards can be more costly for businesses
- varying pay or conditions of work can result in industrial action
common law individual employment contract
a contract employees who are not under any award or collective / enterprise agreements.
disputes in workplace relations
- strike
- lockout
- picket lines
- work bans
- work to rule
dispute
a result of disagreements or dissatisfaction between individuals and / or groups.
strike
employees withdrawing their labour for a period of time in pursuit of improvements in their employment conditions.
lockout
employers closing the workplace for a period of time as a means of applying pressure to employees during a period of industrial conflict.
picket lines
refers to protests that take place outside the workplace typically associated with a strike.
protected industrial action
action taken by either party to a dispute that has been approved by the FWC.
negotiation
a method of resolving disputes whereby discussions between parties result in a compromise and a formal or informal agreement about the dispute.
mediation
the confidential discussion of issues in a non threatening environment, in the presence of a neutral, objective third party who does not offer suggestions or solutions.
advantages of mediation
- cost effective because of the less formal setting
- less time consuming if both parties compromise
- continue positive working relationships as both parties reach a decision together
disadvantages of mediation
- may not be legally binding -> parties may not honour their end of the deal
- one party may refuse to attend as it is not compulsory
- one party may be stronger than the other -> unfair influence
arbitration
a means of dispute resolution involving an independent third party hearing both arguments in a dispute and determining an outcome.
advantages of arbitration
- decision made by the arbitrator is legally binding and enforceable
- arbitrations are compulsory to attend
- arbitrator will make a decision if both parties are unable to agree
- resolved quicker than if taken to court
disadvantages of arbitration
- parties have reduced control over outcomes
- more time consuming and expensive in comparison to other dispute resolutions
- less effective at preserving relationships between parties
councillation
a process that occurs when a third party participates in the resolution of a dispute and attempts to resolve differences through discussion.
