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Business Studies > Human Resources > Flashcards

Human Resources Flashcards

1
Q

Human resource management

A

The management of the total relationship between an employer and an employee in order to achieve the strategic goals of the business

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2
Q

Operations (interdependence)

A
  • Operations monitors employee performance and initiates training and development programs
  • HR ensures that the staff recruited are equipped with the relevant skills and experience necessary for the job
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3
Q

Marketing (interdependence)

A
  • Staff must be skilled and motivated to develop products
  • Marketing process determines skills required
  • Staff are the public face of the business and can influence consumer choice
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4
Q

Finance (interdependence)

A
  • Recruiting the right staff benefits profitability
  • Budgets allocate training and development funds, workplace education funds, WHS funds and remuneration
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5
Q

Outsourcing

A

Using a third party to carry out business functions
+ Access to resources unavailable internally
+ Cost reductions
+ Easier to increase output on demand
+ More efficient
– Negative publicity
– Creates redundancies
– Can cause unproductivity

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6
Q

Contractors

A

An external provider of services to a business

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7
Q

Insourcing

A

Bringing outsourced business functions back into the business

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8
Q

Employees

A

People who supply physical labour, skills and knowledge in return for an income such as a wage or salary. Changes that have occurred as a result of a more educated and rights aware workforce include:
- Flexibility to work from home, job share and alter hours
- Increase in casual employment and decrease in full-time employment
- Provision of childcare
- Australia’s ageing population opening up opportunities for young people

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9
Q

Employers

A

Group that hires workers in order to perform certain business tasks
- Some employers outsource their HRM but large businesses usually have a HR division

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10
Q

Trade unions

A

Body that aims to protect a particular group of workers’ rights and conditions
- Unions are generally affiliated with the Australian Council of Trade Unions who lobbies governments towards policies which would improve workers’ pay and conditions
- Casualisation has led to a decline in union memberships

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11
Q

Employer associations

A

Organisations that lobby governments in favour of business and employer interests

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12
Q

Governments/government organisations

A
  • FWA is the national industrial tribunal that makes decisions on minimum wages, enterprise agreements and their certification as well as arbitration on major industrial disputes
  • Industrial Relations Commission handles all state issues and disputes in NSW according to the Industrial Relations Act 1996
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13
Q

Society

A
  • Policies by political parties can swindle voters in elections
  • IT and community issue attention are presenting greater pressure towards businesses
  • Discrimination and harassment are also more noticed and can influence societal perception
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14
Q

Boom economy

A

When demand is high and businesses invest:
- Labour demand increases
- Encouraged to offer extra remuneration to attract recruits
- Demand for training services increases
- Employers may be expected to work overtime to meet demand

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15
Q

Bust economy

A

When demand falls, businesses reduce supply levels and hence lower investment:
- Job losses
- Hours reduced
- Job security falls
- Increase in outsourcing
- Remaining staff will have to cover more jobs

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16
Q

Structural change

A

Change in nature and pattern of production in an economy, including growth in the services sector
- Increased training and development required for upskilling
- Increase in manufacturing outsourcing
- Changes brought by technological advancements

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17
Q

Globalisation

A

Integration of global economies into a single market
- Increased competition
- Increased outsourcing, leading to an increase in redundancies and retrenchments
- Increased workplace diversity

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18
Q

Technological change

A

An accepted business practice that is the main driver of productivity improvements
- Greater flexibility
- New workplace rules regarding online behaviour
- Impacts work-life balance and can lead to burnout
- Altered job descriptions
- Computer literacy required
- Redundancies due to capital-labour substitution

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19
Q

Career flexibility and job mobility

A

Businesses are more likely to offer part-time jobs to workers in favour of an improved work-life balance. WFH is becoming more popular as employees are able to perform aspects of their job at home.
- Businesses need to upgrade IT Services to maintain security
- New WFH policies need developing
- More part-time and casual work

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20
Q

Feminisation of the workplace

A

The past three decades have seen an increase of 20% in female workforce participation as a result of changing social expectations, increased education levels and childcare access and more work arrangement flexibility
- All policies comply with EEO principles
- Must be flexible with family friendly hours
- Must adhere to new legislation regarding work-life balance

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21
Q

Ageing workforce

A

A growth in the average age due to sustained low fertility and increasing life expectancy will see a shortage of skills arise over time
- May require more flexibility
- Upskilling existing staff members
- Incentivising retirement postponsement

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22
Q

Living standards

A

Higher living standards have increased employee wage expectations as well as improved working conditions
- Need to be prepared to meet expectations otherwise industrial action could arise

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23
Q

Acquisition (ethics)

A
  • Recruitment and selection must be based on criteria where the most suitable individual is chosen for a position
  • Hiring policies and criteria must be public and transparent
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24
Q

Development (ethics)

A
  • Training and development must be available to all employees, not just a few
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25
Q

Maintenance (ethics)

A
  • Allowing for individual needs through flexible work arrangements
  • Offering equitable performance-based rewards
  • Fostering teamwork and empowerment
  • Creating challenging and meaningful work to employee satisfaction
  • Ensure staff collaboration in any proposed changes
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26
Q

Separation (ethics)

A
  • Redundancies must be genuine
  • Unfair dismissal cases can be avoided through openness and honesty
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27
Q

Privacy

A
  • Employers must maintain the privacy of employees despite access to personal information
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28
Q

Common law obligations

A

Employer:
- Providing work
- Payment of income and expenses
- Duty of care
- Meeting industrial relations legislation
Employee:
- Obey lawful and reasonable commands
- Use care and skill in the performance of work activities
- Act in good faith and in the employer’s interests

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29
Q

Fair Work Act 2009

A
  • National awards for specific industries and occupations
  • National minimum wage ($21.38 per hour/$812.60 per 38-hour week)
  • Unfair dismissal protection
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30
Q

National Employment Standards

A
  • Maximum weekly hours (38)
  • Requests for flexible working arrangements
  • Offers and requests to convert from casual to permanent employment
  • Parental leave and related entitlements
  • Annual leave
  • Personal/carer’s leave, compassionate leave and unpaid family and domestic violence leave
  • Community service leave
  • Long service leave
  • Public holidays
  • Notice of termination and redundancy pay
  • Fair Work Information Statement and Casual Employment Information Statement
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31
Q

Modern awards

A

Determination that explains the legally enforceable minimum terms and conditions that apply to a business or industry
- Covers a whole industry
- Underpins all employment contracts
- Established by FWC

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32
Q

Enterprise agreements

A

Collective agreements made at a workplace level between an employer and an employee group about employment terms and conditions
- Covers a workplace
- Modified version improving the modern award
- FWC approves after passing the Better Off Overall Test (BOOT), which is a comparison of the EA against the MA where collective bargaining occurs
- Has an expiry date within four years

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33
Q

Types of enterprise agreement

A
  • Single-enterprise agreements
  • Multi-enterprise agreements
  • Greenfield agreements
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34
Q

Individual common law contract

A

Civil contract where the employee agrees to perform work for the employer in exchange for payment
- Covers an individual
- Must contain NES
- More flexible than MA or EA
- Most common for private sector and higher income workers
- Disputes go through common law courts not FWC

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35
Q

Independent contractors

A

Undertake work for others without the same legal status as employees
- Also known as consultants or freelancers

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36
Q

Casual contracts

A

Short-term, irregular or uncertain employment without leave entitlements

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37
Q

Part-time contracts

A

Have a continuing employment contract, working under 38 hours a week
- Entitled to employee entitlements on a pro-rata basis

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38
Q

WHS Act 2011

A

Designed to ensure a safe workplace to prevent preventable deaths and injuries
- Failure to comply can result in fines up to $3 million for corporations and $300,000/5 years imprisonment for individuals
- Administered by SafeWork Australia and SafeWork NSW

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39
Q

WHS obligations

A

Employer:
- Workplace is safe, including safe to use materials and facilities, protective clothing, adequate training and supervision provision
- Workers’ compensation insurance
- WHS rule enforcement committees
- Written WHS policy
- On-site non-employees must not be risk exposed

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40
Q

Workers’ compensation

A

Safety Rehab and Compensation Act 1988 (Cwlth) and Workers’ Compensation Act 1987 No. 70 (NSW) govern the process of employees getting financial compensation for work-related injuries. Ensures HRM must:
- Have a policy with a licensed insurer
- Have an injury management plan and return to work plan for injured workers
- Pass on compensation ASAP
- Insured by CareNSW and regulated by State Insurance Regulation Authority

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41
Q

Anti-discrimination

A

Unlawful workplace discrimination occurs when an employer takes adverse action against an individual because of features such as race, sex, age and sexual preference. Support agencies include:
- Australian Human Rights Commission
- Anti-Discrimination Board NSW
- Employers with more than 100 employees and all higher education institutions are obliged to develop Affirmative Action programs and provide a report to the Equal Opportunity for Women Agency

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42
Q

Resolution of workplace discrimination claims

A

Individuals who suffer discrimination may take a range of actions, internally, formally or informally which can lead to:
- Formal apology
- Counselling
- Official warnings
- Mediation/conciliation
- Disciplinary action

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43
Q

Acquisition (process)

A

Critical process of identifying needs, attracting, recruiting and selecting the right staff for roles in a firm. This is at the front end of a firm’s HR practices

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44
Q

Identifying needs

A

HR must analyse both the internal and external environments to determine HR firm requirements to meet strategic goals. Involves both internal and external considerations

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45
Q

Recruitment (process)

A

Process of locating and attracting a candidate pool for the role
- Involves internal and external along with advertising
- Firm reputation can influence desirability to work for

46
Q

Selection

A

Process of filtering information on recruited applicant pool
- Involves resumes, interviews, background checks and referee checks to determine the best candidate

47
Q

Placement

A

Placing or locating the employee in a position that best utilises their skills, experiences and personality

48
Q

Development (process)

A

Process of enhancing employee skills through training, mentoring, coaching and performance management
- Focused upon employee retention through increased satisfaction and continued performance improvement; higher motivation and skills improve performance

49
Q

Induction

A

Initial training/orientation for new recruits where information on practices, processes, work culture, location, code of conduct and expectations are provided

50
Q

Training (process)

A
  • Enhances attitudes and performance
  • Adapts workforce to changing business conditions to ensure competitive edge is retained
  • Refers to improving skills for current job
51
Q

Organisational development

A
  • Altering systems and hierarchies to improve employee autonomy and retain talented staff
  • Provide learning opportunities and targeted delegation of responsibility to identified future leaders
52
Q

Coaching

A

Establishing systems to ensure lower skilled workers can improve their skills and performance in specific work roles
- Typically focused on the transferral of set skills in a more impersonal relationship with the firm

53
Q

Mentoring

A

Establishing systems to pair younger employees with those more experienced
- Helps transfer knowledge and career growth advice
- Typically focused more on a personal relationship
- Increases loyalty to the firm

54
Q

Performance appraisals

A

Systematic process of analysing and evaluating employee performance for strengths and weaknesses
- Provides clear direction in terms of training and development for staff

55
Q

Maintenance (process)

A

Process of attending to the wellbeing, safety and health of employees in order to keep employees at the business.
- Focuses on communications management, conflict management and legal compliance.
Involves:
- Developing record systems to manage employee information
- Legislation compliance in remuneration and conditions
- Catering to flexibility whilst ensuring organisational goals are met
- Performance appraisal system management
- Equitable reward and incentive distribution
- Establishing grievance procedures to deal with workplace conflict

56
Q

Separation (process)

A

The ending of the employment relationship
- Last stage of the HR cycle
- Can be expensive and time consuming so business try to limit separation rate

57
Q

Voluntary separation

A

When an employee leaves on their own accord

58
Q

Retirement

A

The employee has decided to give up full–time or part-time work
- Australia has no official retirement age

59
Q

Resignation

A

Employee leaves job for reasons like needing a change in their lives of moving interstate
- Employee is required to give usually 1-4 weeks notice to their employer about their intention in leaving

60
Q

Voluntary redundancy

A

An employee’s existing job is no longer required by the firm, possibly due to technology or a restructure, so they may be offered a redundancy package and find it in their best interests to leave the job earlier than planned

61
Q

Involuntary separation

A

When an employer forces an employee to leave

62
Q

Involuntary redundancy

A

Termination of employment due to the firm closing down or the job not being required due to rationalisation, restructuring or new technology
- The worker’s skill is outdated and no longer required

63
Q

Retrenchment

A

Employment is terminated because the job/work is no longer required
- Can arise due to a lack of work, fall in demand for product, restructuring or technology
- Payouts are required based on position and tenure length

64
Q

Dismissal

A

An employee’s contract is terminated due to unacceptable conduct or behaviour

65
Q

Summary dismissal

A

Immediate termination of contract without notice
- Caused by theft, gross negligence, absenteeism, drunkenness or misconduct

66
Q

Dismissal after a series of warnings

A

Employee may be issued with a written warning and provided with counselling/assistance to improve behaviour
- Can arise from issues like repeated lateness or failing to perform required duties
- After three warnings the employee may be dismissed

67
Q

Unfair dismissal

A

If a dismissal is deemed “harsh, unjust or unreasonable” as per government regulation, such as discrimination, it can be referred to the FWC or AIRC to be appealed and potentially overturned

68
Q

Leadership stule

A

The way a manager approaches their work; how they work with and through others to achieve business goals

69
Q

Autocratic style

A
  • Very hierarchical and inflexible
  • Leader makes decisions for those below allowing little employee contribution
  • Classical/scientific management approach
  • May suit groups requiring constant direction and guidance or those that are inexperienced
70
Q

Democratic style

A
  • More inclusive with employee participation, allowing for employee empowerment
  • Boss-employee relationship is built on mutual respect, trust and recognition of contribution
  • Behavioural management approach
  • Involves multi-skilling to enhance morale and job satisfaction
  • Suits government departments and insurance companies
71
Q

Laissez-faire

A
  • Manager simply ‘lets things be’, with little to no guidance or emphasis on hierarchical structure
  • Best suited to management of professional/para-professional employees who are highly motivated and skilled in their profession, like law firms and school teaching
72
Q

Job design

A

Process of designing the specific content and responsibilities of a job and how it will interact with other jobs and employees
- Depends upon job analysis and is closely determined in partnership with operations

73
Q

Core elements of a well-designed job

A
  • Challenge
  • Variety
  • Discretion
  • Autonomy
  • Well-resourced and supported
  • Social interaction
  • Opportunities to take on extra responsibilities
74
Q

Job rotation

A

Moving employees through different divisions of an operation to learn new skills and improve challenging role nature

75
Q

Job enlargement

A

Employees given additional tasks on top of existing work requirements to add challenge to role

76
Q

Job enrichment

A

Employees given more responsibility and autonomy over certain role aspects

77
Q

Semi-autonomous work groups

A

Distribution of responsibility across a core employee team working together to establish high performance professional relationships

78
Q

Cross-functional team-based structures

A

Full delegation of responsibility and accountability to a project team (challenge and reward of success)

79
Q

Recruitment (strategy)

A

Strategic process of locating and attracting the right quantity and quality of staff to apply for employment vacancies in a firm
- Critical for business performance, culture and employee morale
- Done wrong can lead to increased costs and low productivity

80
Q

Internal recruitment

A

Target current employees, former applicants and former employees
+ Build loyalty
+ No time spent on orientation
+ Cheaper and faster
+ Recognises and rewards staff
+ Less risk of external appointment
+ No productivity loss
+ Business only needs to hire at base level
– Can lead to rivalry and tension
– No new ideas brought in
– May reinforce negative culture
– Need established framework and merit-based appraisal system
– Attracts significant number of internal applicants

81
Q

External recruitment

A

Acquiring new candidates through advertising methods
+ Wider applicant pool
+ New ideas and perspectives
+ Can obtain required skills quickly
+ Adds diversity
+ Dilutes internal politics
+ Builds brand through publicity
– Early productivity loss
– Higher culture mismatch risk
– Unknown staff risk
– Increased time and effort required
– Legal claim risk

81
Q

External recruitment

A

Acquiring new candidates through advertising methods
+ Wider applicant pool
+ New ideas and perspectives
+ Can obtain required skills quickly
+ Adds diversity
+ Dilutes internal politics
+ Builds brand through publicity
– Early productivity loss
– Higher culture mismatch risk
– Unknown staff risk
– Increased time and effort required
– Legal claim risk

82
Q

General skills

A

Attracting staff with skills, attitudes and behaviours that are a good cultural fit for the firm, learning their role’s specifics on the job. Includes flexibility, communication skills, social confidence and work under pressure.
- Can lead to time and productivity loss in learning the role’s specific nature

83
Q

Specific skills

A

Targeting recruits with specific skills to fill organisational gaps
- Faster productivity gains but risk of poor cultural mismatch

84
Q

Training (strategy)

A

Efforts to develop skills, knowledge and attitudes that lead to superior work performance in an employee’s current role in the business as it is currently structured
- Can be both internal or external

85
Q

Development (strategy)

A

Efforts focused upon enhancing skills and qualities to upgrade employee capability in line with changing needs and future strategic direction of the business
- Identify and develop employees to move into higher roles

86
Q

Current skills

A

Employees taught skills to do job better such as learning new technologies and processes
+ Allow employees to do job better
+ Can motivate staff as they feel they can improve
+ Leads to higher productivity and work standard
– May get bored learning same things
– Further improvements can become minor once competent

87
Q

Future skills

A

Employees taught skills that can be used in the future, such as management and leadership skills
+ Great for succession planning
+ Can be a very effective motivational tool
+ Reduce staff turnover
– Employees may leave the business before applying their new skills

88
Q

Performance management

A

Systematic process of gathering, analysing and evaluating data and information on employee performance. Required in order to determine the relative value for money that each employee represents to the firm
- Usually undertaken poorly and disliked by employees
- HR need to ensure it is equitable and unbiased

89
Q

Developmental performance management

A
  • Focused upon using data to identify areas for future development
  • Improve firm effectiveness by targeting weaknesses
  • Annual feedback and shared discussion of career trajectory
90
Q

Administrative performance management

A
  • Use of data in allocating rewards and pay
  • Data collection and record keeping systems required to manage more effectively
91
Q

Rewards management

A

Implementation of an incentive structure to build employee motivation, target specific operational aspects, build firm loyalty and provide opportunities to reward hard work

92
Q

Monetary rewards

A

Rewards which arise directly, through pay, or indirectly, through benefits
Direct:
- Base pay
- Incentive pay (bonuses, commissions)
- Allowances (overtime, shift work)
- Pay rises
- Share plans
- Profit sharing
- Gainsharing
Indirect
- Insurance
- Superannuation
- Medical and health
- Childcare
- Employee assistance
- Flexible work schedule
- Holidays

93
Q

Non-monetary rewards

A

Rewards which do not have financial value
Job:
- Challenge
- Interesting work
- Responsibility
- Recognition (e.g. employee of the month)
- Advancement
- Performance feedback
Environment
- Good HR practices
- Safe working environment
- Fair treatment
- Career security
- Learning opportunities
- Open communication

94
Q

Extrinic reward

A

An external motivator that requires transferring monetary value to an employee
- Can be interpreted as buying loyalty and rejected

95
Q

Intrinsic reward

A

Sense of satisfaction and drive employees feel that is derived from the role itself
- Cost the firm only time and consideration
- Validates hard work making the employee feel valued

96
Q

Key reward considerations

A
  • Performance management systems
  • Rewards appropriate behaviour
  • Group incentives vs individual
97
Q

Global strategies

A

HR departments that expand/operate globally must consider the increased complexity, levels of core firm control and the cost and skill of global labour forces

98
Q

Polycentric staffing

A

Host-nation staffing with parent-nation management
- Allows control, some degree of HN input but limits upwards mobility for HM staff

99
Q

Geocentric staffing

A

Utilises staff most suited to the role without factoring in location of origin
- Generates global pool of staff but complex to manage

100
Q

Ethnocentric staffing

A

Sole use of parent-nation staffing in global operations
- Easier to control and administer, no HN knowledge, communication challenges

101
Q

Workplace disputes

A

Conflict at any level in the workplace involving a key employee-employer disagreement

102
Q

Causes of workplace disputes

A
  • Remuneration
  • Employment conditions
  • Job security issues
  • Health and safety
  • Managerial policy
  • Union issues
  • Political/social issues
103
Q

Types of dispute

A
  • Formal – FWC receives paperwork recognising it
  • Informal – Within firm only
  • Overt – Clearly recognisable actions
  • Covert – Beneath the surface, not obvious
  • Strikes – Organised labour is removed as leverage
  • Lockouts – Employer closes doors to unionised workers
104
Q

Dispute resolution processes

A

The strategies and systems used to resolve issues in the workplace as quickly as possible to ensure minimal productivity disruption

105
Q

Grievance procedure

A

Formal procedures generally written into an award/EA that state processes to resolve workplace disputes

106
Q

Negotiation

A

Discussion between disputing parties in an attempt to reach an agreement without third party intervention
- Most cost-effective
- Least disruptive
- Disparity can lead to stress, tension and fear of retribution

107
Q

Mediation

A

Confidential discussion of issues in a non-threatening environment with presence of a neutral third party
- More expensive and formal
- Allows for objectivity from obstinate third party

108
Q

Conciliation

A

Formal version of mediation where the third party is the FWC who help reach an agreement

109
Q

Arbitration

A

Dispute is heard in court and a legally binding resolution is made
- Very expensive and time consuming

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