Human Resources Flashcards
Strategic role of human resources (role)
- an approach that incorporates all aspects of managing the employer-employee relationship in the workplace
- includes functions such as recruitment, training, development, separation
Interdependence with other key business functions (role)
- specialist human resource managers are responsible for HR planning and job design, acquisition, development, maintenance etc.
Outsourcing (role)
- outsourcing human resource functions
- using contractors - domestic, global
Outsourcing human resource functions - under outsourcing (role)
- allows firms to focus more on their core business as they grow, while experts in HR assist by planning for growth, development and management of staff
- can also be used to review business practices
Using contractors - domestic, global - under outsourcing (role)
- a contractor is an external provider of services to a business, used to create cost savings or to access greater expertise
- domestic subcontracting avoids the need to employ additional ‘in-house’ staff, attractive to small to medium-sized businesses
- global subcontracting is used to get familiar with market needs overseas before resulting in a large physical presence
Stakeholders (influences)
- Employers: handle HR management, develop programs to improve business performance
- Employees: become bored more quickly and demand more challenging work, seek decision-making processes and autonomy in the workplace
- Employer associations: organisations that represent and assist employer groups, act on behalf of employers
- Trade unions: organisations formed by employees in an industry, trade or occupation to represent them in efforts to employee wages and working conditions
- Government organisations: affect industrial relations system as a result of their roles eg legislation
- Society: community demands safety and wellbeing, force governments to act
Legal - the current framework (influences)
- The employment contract
- work health & safety and workers compensation
- antidiscrimination and equal employment opportunity
The employment contract - under legal (influences)
- Common law: developed by courts and tribunals, guided by precedent. Employers and employees have both rights and obligations
- Minimum employment standards: cover basic rates, hours worked and leave. They must be provided
- Minimum wage rates: employee’s minimum wage is determined by their award or the national minimum wage
- Awards: legally binding documents containing minimum terms and conditions of employment, include factors such as leave, minimum wages etc
- Enterprise agreements: collective agreements made at a workplace level between an employer and a group of employees about terms about employment
- Other employment contracts: include individual common law employment contracts, independent contractors, contracts for casual work etc.
Work health & safety and workers compensation - under legal (influences)
- legislation on OHS covers employees, employers and the self-employed under the Work Health and Safety Act 2011
- workers compensation provides a range of benefits to an employee suffering from an injury or disease related to their work
Antidiscrimination and equal employment opportunity (influences)
- Discrimination occurs when a policy or practice disadvantages a person or group because of a personal characteristic
- Anti-Discrimination Act 1977 (NSW)
- Equal employment opportunity (EEO) refers to equitable policies and practices in recruitment, training, selection, training and promotion
Economic (influences)
- refers to the management of the limited resources in a country aimed at satisfying the needs and wants of its people
- globalisation: corporations are increasingly prepared to relocate production units in other places where costs are lower
Technological (influences)
- Major source of improvements in productivity, communication & competition between businesses
- advantages: creates new jobs, people can work from home
- Disadvantages: makes others redundant, needs ongoing training
Social - changing work patterns, living standards (influences)
- Changing work patterns: growth in part-time and casual work, earlier retirement (more part-time) and rising female participation rate
- Living standards: includes OH&S, wage increases, performance bonus’ and leave/superannuation benefits
Ethics and corporate social responsibility (influences)
- ethical business practices: socially responsible, morally right, fair
- working conditions: adhering to legislation and providing a safe and healthy work environment
- exploitation of workers is an ethical issue raised through outsourcing
Acquisition (processes)
- make sure the business has enough employees, with the right skills and experience
- forecasting future demand, recruiting potential candidates
Development (processes)
- training increases the ability of the employee and improves performance
- training methods: on the job (apprentice) and off the job (lectures)
Maintenance (processes)
- retaining loyalty and commitment to workers will result in an increase in productivity, improve morale and communication
- monetary benefits: minimum wage rates and minimum working conditions are set out in an award
- non-monetary benefits: greater job variety, more flexible working hours
Separation (processes)
- termination of employment contract between employee and employer
- voluntary separation (retirement, resignation, voluntary redundancy
- involuntary separation (involuntary redundancy, dismissal)
Leadership style (strategies)
- Classical authoritative: focus on planning, organising, controlling
- Behavioural approach: participative and democrative
- Contingency approach: changes with each circumstance
Job design - general or specific tasks (strategies)
- job design is the process of designing the content of a job and how it will interact with other jobs and employees
- develops knowledge and leadership skills of employees
- specialised job design improves knowledge and skills, increases outputs, reduces labour costs etc.
Recruitment - internal or external, general or specific skills (strategies)
- Recruitment is the process of locating and attracting the right quantity and quality of staff to apply for vacancies at the right cost
- Internal: filling vacancies with people from within the business
- External: filling vacancies with people from outside the business
- General skills: eg flexibility, motivation, these indicate an employee is willing to learn
- Specific skills: highly specialised. Businesses concerned about skills shortages will target employees with these skills
Training and development - current or future skills (strategies)
- Training aims to develop skills, knowledge and attitudes that lead to superior work performance
- business should consider current or future needs before developing skills
Performance management - developmental or administrative (strategies)
- performance management is a systematic process of evaluating and managing employee performance in order to achieve the best outcomes for a business
- two objectives: evaluating performance and using that info to develop the individual
- Developmental: focuses on data to develop skills and abilities
- Administrative: provides info, often following an annual appraisal
Rewards - monetary and non-monetary, individual or group, performance pay (strategies)
- Monetary rewards: those reflected in pay or having financial value.
- Non-monetary rewards: those that do not have a financial value, such as social activities or retirement planning.
- a gainsharing plan involves benefits of improvements and success, helping people work together which can result in bonuses
Global - costs, skills, supply (strategies)
- globalisation has lead to higher costs of skilled labour in Australia and a shortage in the supply of skilled labour
- businesses may go offshore to acquire skilled labour
Workplace disputes (strategies)
- Resolution of disputes: key stakeholders involved in resolving disputes includes employees, employers, governments, trade unions
- Negotiation: when discussions between parties result in a compromise
- Mediation: confidential discussion of issues in a non-threatening environment in the presence of a neutral, objective third party
- Grievance procedures: formal procedures written into an award or agreement, that state agreed processes to resolve disputes
- Involvement of courts and tribunals: include conciliation and arbitration
Indicators (effectiveness)
- corporate culture
- benchmarking key variables
- changes in staff turnover
- absenteeism
- accidents
- levels of disputation
- worker satisfaction
Corporate culture - under indicators (effectiveness)
- values, ideas, expectations shared by members of the business
- poor workplace culture is indicated by high staff turnover, poor customer service etc.
- building a culture involves flexible and family friendly practices, high training levels
Benchmarking key variables - under indicators (effectiveness)
- Purpose is to compare business performance against similar businesses
Changes in staff turnover - under indicators (effectiveness)
- the separation of employees from an employer, both voluntary and involuntary
- shown as a % of total staff number
- small level of turnover is healthy
Absenteeism - under indicators (effectiveness)
- refers to employee absences on an average day, without sick leave or approved in advance
- high absenteeism can indicate employee dissatisfaction
- can lead to lost revenue, higher costs etc.
Accidents - under indicators (effectiveness)
- 5.3% of 12 million employees in Australia experience a work-related injury/illness each year
- All businesses need to adopt a systematic, legally compliant approach to managing OH&S
- To prevent practices: regular safety awards, build culture of safety
Levels of disputation - under indicators (effectiveness)
- monitoring the frequency and severity of disputes is a method of determining how effective an organisation is in solving problems
- high frequency of disputes show that a business is having problems internally
Worker satisfaction - under indicators (effectiveness)
- happy workers are productive workers, tired employees are unproductive
- happy workers lead to employee commitment, performance, lower turnover rates
- worker satisfaction can be identified through surveys, polls etc.
- management should incorporate work-life balance strategies and flexible working conditions to reduce tiredness