Human Resources

Question 1

Strategic role of human resources (role)

Answer 1

• an approach that incorporates all aspects of managing the employer-employee relationship in the workplace
• includes functions such as recruitment, training, development, separation

Question 2

Interdependence with other key business functions (role)

Answer 2

• specialist human resource managers are responsible for HR planning and job design, acquisition, development, maintenance etc.

Question 3

Outsourcing (role)

Answer 3

• outsourcing human resource functions

- using contractors - domestic, global

Question 4

Outsourcing human resource functions - under outsourcing (role)

Answer 4

• 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

Question 5

Using contractors - domestic, global - under outsourcing (role)

Answer 5

• 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

Question 6

Stakeholders (influences)

Answer 6

• 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

Question 7

Legal - the current framework (influences)

Answer 7

• The employment contract
• work health & safety and workers compensation
• antidiscrimination and equal employment opportunity

Question 8

The employment contract - under legal (influences)

Answer 8

• 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.

Question 9

Work health & safety and workers compensation - under legal (influences)

Answer 9

• 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

Question 10

Antidiscrimination and equal employment opportunity (influences)

Answer 10

• 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

Question 11

Economic (influences)

Answer 11

• 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

Question 12

Technological (influences)

Answer 12

• 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

Question 13

Social - changing work patterns, living standards (influences)

Answer 13

• 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

Question 14

Ethics and corporate social responsibility (influences)

Answer 14

• 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

Question 15

Acquisition (processes)

Answer 15

• make sure the business has enough employees, with the right skills and experience
• forecasting future demand, recruiting potential candidates

Question 16

Development (processes)

Answer 16

• training increases the ability of the employee and improves performance
• training methods: on the job (apprentice) and off the job (lectures)

Question 17

Maintenance (processes)

Answer 17

• 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

Question 18

Separation (processes)

Answer 18

• termination of employment contract between employee and employer
• voluntary separation (retirement, resignation, voluntary redundancy
• involuntary separation (involuntary redundancy, dismissal)

Question 19

Leadership style (strategies)

Answer 19

• Classical authoritative: focus on planning, organising, controlling
• Behavioural approach: participative and democrative
• Contingency approach: changes with each circumstance

Question 20

Job design - general or specific tasks (strategies)

Answer 20

• 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.

Question 21

Recruitment - internal or external, general or specific skills (strategies)

Answer 21

• 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

Question 22

Training and development - current or future skills (strategies)

Answer 22

• Training aims to develop skills, knowledge and attitudes that lead to superior work performance
• business should consider current or future needs before developing skills

Question 23

Performance management - developmental or administrative (strategies)

Answer 23

• 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

Question 24

Rewards - monetary and non-monetary, individual or group, performance pay (strategies)

Answer 24

• 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

Question 25

Global - costs, skills, supply (strategies)

Answer 25

• 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

Question 26

Workplace disputes (strategies)

Answer 26

• 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

Question 27

Indicators (effectiveness)

Answer 27

• corporate culture
• benchmarking key variables
• changes in staff turnover
• absenteeism
• accidents
• levels of disputation
• worker satisfaction

Question 28

Corporate culture - under indicators (effectiveness)

Answer 28

• 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

Question 29

Benchmarking key variables - under indicators (effectiveness)

Answer 29

• Purpose is to compare business performance against similar businesses

Question 30

Changes in staff turnover - under indicators (effectiveness)

Answer 30

• the separation of employees from an employer, both voluntary and involuntary
• shown as a % of total staff number
• small level of turnover is healthy

Question 31

Absenteeism - under indicators (effectiveness)

Answer 31

• 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.

Question 32

Accidents - under indicators (effectiveness)

Answer 32

• 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

Question 33

Levels of disputation - under indicators (effectiveness)

Answer 33

• 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

Question 34

Worker satisfaction - under indicators (effectiveness)

Answer 34

• 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