Human Resources Content Flashcards
Define human resource management
Human Resource Management is the management of the total relationship between an employer and employee
Define employer
Employer is one who exercises control over employees, has responsibility for the payment of wages and/or salaries and has the power to dismiss employees
Define employee
Employee is a worker under the control of an employer. This control includes the workplace location, the way that the work is to be performed and the extent to which supervision will be exercised
Define outsourcing
Outsourcing is when business functions are contracted out to third-party specialist businesses; for example, recruitment firms. It aims to take advantage of the specialist skills provided by them and to achieve a reduction in labour costs
Discuss the advantages and disadvantages of outsourcing human resources
Advantages:
- The business can focus on and specialise in its main tasks
- Improve quality
- Foster innovation
- The HR expert/business can specialise
- Managers can be unwilling perform elements of the human resources, such as firing or making workers redundant
Disadvantages:
- Can be expensive
- May not suit the business
Define contractor
Contractor is an external provider of services to a business. It may be an individual or a business
Identify the types of contractors
Types of contractors:
- Domestic
- Global
Identify human resource functions
Human Resource Functions:
- recruitment
- induction
- training
- payroll
Discuss the advantages and disadvantages of using domestic contractors
Advantages:
- Less problematic
- Can be contacted easily (no timezone issues or language barriers)
Disadvantages:
- Expensive
- Poor quality work can cause PR problems
Discuss the advantages and disadvantages of using global contractors
Advantages:
- Extended capacity and flexibility
- Reduced costs
- Access to new networks
Disadvantages:
- Consultants may not understand corporate culture
- Less integrated organisations
True or False. Stakeholders, all with their own interests, conflict and cooperate with each other
True
Define employer association
Employer Association is an organisation that represents and assists employer groups. They are usually respondents to the awards covering the employees of their members, and covering employers in the same or related industry
Define log of claims
Log of Claims is a list of demands made by workers (often through their union) against their employers. These demands cover specific wages and conditions. Employers may also serve a counter-log of claims on the union
Identify the responsibilities of employer associations
Employers associations:
- provide advice (especially to small businesses) on such matters as awards, unfair dismissals and discrimination issues
- negotiate agreements
- lobby governments and other organisations with the views and interests of employers, industries and trade
Define trade union
Trade union is an organisation formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions of their members
True or False. An increasing percentage of the workforce is unionised
False. Unionisation rates have fallen
Identify reasons for the decline in unionisation
Reasons for decline in union membership:
- Poor depiction of unions in the media
- Legislative changes reduced their power
- Collapse of centralised wage-fixing system
- Community attitudes favour individualism rather than a collective approach
Identify general workplace and economic trends
Workforce and economic changes:
- Decline in workforce size
- Decline in manufacturing employment due to technological and structural changes
- Growth of service industry
- Growth of casual/part-time hours
- Feminisation of workforce
Define centralised industrial relations systems
Centralised Industrial Relations System is a collectivist approach in which disputes are referred to industrial tribunals, such as the Fair Work Commission, for conciliation and arbitration
Define decentralised industrial relations systems
Decentralised Industrial Relations System is a system in which employers and employees negotiate wages and working conditions in the individual workplace, through collective or individual bargaining and without the involvement of tribunals
Define employment contract
Employment Contract is a legally binding, formal agreement between employer and employee
Contracts does not need to be written, but it is valid and legally enforceable when…
Contracts does not need to be written, but it is valid and legally enforceable when:
- the parties involved intend to create a legal relationship
- one party offers and the other accepts the offer
- both parties obtain a benefit
- both parties have the capacity to contract; for example, they are old enough to make the contract
- consent is genuine and not pressured
- the offer does not contravene any public interest
Define common law
Common Law is a law developed in courts and tribunals
Define statute law
Statute Law is a law passed in parliament
Identify the obligations of employers
Employers have an obligation to:
- Provide work
- Payment of income and expenses –> provide compensation for work injuries
- Ensure a safe working environment
Identify the rights of employers
Employers have a right to:
- Employees working with care and responsibility
- Employees carrying out their work according to their agreement/award,
Being notified according to agreement/award of an employee’s intention to:
- take their leave entitlements
- formally leave the business
Identify the obligation of employees
Employees have an obligation to:
- Exercise due care and competence
- Maintain confidentiality
- Account for money and property recieved
- Follow written and verbal procedures and policies
- Be honest, fair and work with integrity in all dealings
- Obey lawful commands that are considered reasonable
- Complete forms related to taxation and its deduction from income
- Give appropriate notice of termination of employment in accordance with the relevant award
Identify the rights of employees
Employees have a right to:
- being paid for all the time they work, including overtime
- receiving the minimum set out in the award or enterprise agreement
- having all pay recorded by the employer (some awards/agreements state that employees must receive a pay slip)
- receiving extra pay such as loading for casuals and penalty rates for work outside of usual hours
- access to paid and unpaid leave entitlements
Explain what are the National Employment Standards
The National Employment Standards are 10 minimum standards regarding the workplace
Define modern award
Modern Award is an industry or occupation-based award that covers all private sector employers and employees who perform work that falls within their scope. They replace all existing national system awards (except those applying to a single enterprise). They do not cover employees earning higher incomes
Define award simplification
Award Simplification is the process of reducing the number of matters in each award and eliminating inefficient work practices
Identify what modern awards concern
The Content of Modern Awards are:
- base pay rates
- conditions and requirements for different types of employment
- overtime and penalty rates
- allowances (such as travel allowances)
- leave and leave loading
- hours of work
- requirements for annual wage or salary arrangements
- superannuation entitlement
- conditions and procedures for consultation, representation and settling disputes
- outsourcers
- redundancy conditions
Define individual flexibility plan
Individual Flexibility Agreements (IFA) allow an employer and an employee to come to an agreement that varies the modern award or enterprise agreement to address their individual circumstances
Define enterprise agreement
Enterprise Agreement is a collective agreement made at a workplace level between an employer and a group of employees about terms and conditions of employment
Define collective agreement
Collective Agreement is an agreement made between a group of employees (or one or more unions representing employees) and an employer or group of employers
Define ‘better off overall test’
‘better off overall test’ (BOOT) requires that each of the employees to be covered by the agreement is better off overall than under the relevant modern award
Recall alternate terms for independent contractor
Independent contractors are often known as a consultant or freelancer
Define casual employee
Casual Employee is an employee in employment that is short term, irregular and uncertain; they are not entitled to paid holiday or sick leave
Define on-costs
On-costs are additional costs involved in hiring an employee, above the cost of their wages. These costs traditionally add around 25% of the cost of the wage and include sick leave, holiday leave, leave loading, superannuation, retirement and redundancy payments, and other costs
Distinguish between a part-time and full-time employee
A part-time and full-time employee has the same worker rights but the difference is work hours
Identify what laws SafeWorkNSW enforces
SafeWork NSW enforces:
- Work Health and Safety Act 2011
- Workers Compensation Act 1987
Define workers’ compensation
Workers’ Compensation is when a business provides a range of benefits to an employee suffering from an injury or disease related to their work. It is also provided to families of injured employees when the injury/disease was caused by, or related to, their work
Define equal employment opportunities
Equal Employment Opportunity (EEO) refers to equitable policies and practices in recruitment, selection, training and promotion
As technology improves, what alternations are made to the responsibilities of human resources
As technology improves, HR has to deal with:
- The decision of operations to replace workers with machinery
- The training decisions that need to be made for workers to use it
- The motivation of workers who are concerned about technological changes in the business
Define affirmative action
Affirmative Action are measures taken to eliminate direct and indirect discrimination, and for implementing positive steps to overcome the current and historical causes of lack of equal employment opportunity for women
Define discrimination
Discrimination is when a policy or a practice disadvantages a person or a group of people because of a personal characteristic that is irrelevant to the performance of the work
Define structural change
Structural Change is a change in the nature and pattern of production of goods and services within an economy. This includes a significant growth in the level of services in an economy compared to other sectors
Provide an example of structural change
Example of structural change – structural change in the Australian economy has resulted in rapid growth in the services sector
Identify changing work patterns
Work patterns:
- Increase in part time and casual workers (casualisation)
- Increase in female employment
- Increasing living standards raises workers’ expectations
Describe the economic cycle
The economic cycle:
- a naturally recurring changes in the level of business activity and economy
- dictates the demand for labour and products and therefore, the health of the economy
Provide a reason for the increase in part time and casual workers
The increase in part time and casual workers is caused by a desire for flexibility
Define unfair dismissal
Unfair Dismissal occurs when an employee is dismissed by their employer and they believe the action is harsh, unreasonable, or unjust
Define code of practice
Code of Practice is a statement of the principles used by a business in its operations. It generally refers to practices that are seen as ethical or socially responsible
Define acquisition
Acquisition is the process of attracting and recruiting the right staff for roles in a business
Define best practice
Best Practice refers to business practices that are regarded as the best or of the highest standard in the industry
Define maintenance
Maintenance is the process of managing the needs of staff for health and safety, industrial relations and legal responsibilities, including compensation and benefits, of all staff
Define development
Development refers to enhancing the skills of the employee in line with the changing and future needs of the organisation
Define separation
Separation the process of employees leaving voluntarily or through dismissal or retrenchment processes
Define recruitment
Recruitment is the process of finding and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost
Identify types of training
Training:
- On-the-job training
- Off-the-job training
Define placement
Placement involves locating the employee in a position that best utilises the skills of the individual to meet the needs of the business
Define induction program
Induction Program is a program that involving the introduction of a new employee to the job, their co-workers, the business and its culture
Identify benefits of training for the employer
Benefits of training for the business:
- 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, and fewer errors and accidents
- A more capable, ‘mobile’ workforce
Define job sharing
Job Sharing is when two people share the same job
Define critical incident method
Critical Incident Method is similar to the essay method except only extremely good or bad aspects of work performance is recorded
Define performal appraisal
Performance Appraisal a systematic process of assessing the performance of an employee, generally against a set of criteria or standards
Define job enlargement
Job Enlargement involves increasing the breadth of tasks in a job
Identify types of remuneration
Types of remuneration:
- Time based wages
- Salaries
- Piece rates
- Sales commission
- Percentage of business profits
Define job enrichment
Job Enrichment involves increasing the responsibilities of a staff member
Define essay method
Essay Method is when a manager keeps a journal on each employee being appraised
Identify types of involuntary separation
Involuntary Separation:
- Contract expiration
- Retrenchment
- Dismissal
- Involuntary redundancy
Identify types of voluntary separation
Voluntary Separation:
- Resignation
- Relocation
- Voluntary redundancy
- Retirement
Define coaching
Coaching is focused on improving skills and performance, and on helping individuals manage specific work roles more effectively
Recall what percentage of Australian employees cite a need for work–life balance as a major consideration in future work choices
Approximately one-third of Australian employees cite a need for work–life balance as a major consideration in future work choices
Define mentoring
Mentoring is a mutually agreed role, which suits experienced staff keen to transfer knowledge and skills through succession planning
Identify the methods of appraisal
Methods of Appraisal:
- Essay method
- Critical incident method
- Comparison method
Define comparison method
Comparison Method is when employees are ranked according to a list of predetermined performance criteria
Define job rotation
Job Rotation involves moving staff from one task to another over a period of time in order to multiskill employees
Recall what job rotation is also known as
Job rotation is also known as multi skilling
Identify benefits of training for the employee
Benefits of training for employees:
- Opportunity for promotion and self-improvement
- Improved job satisfaction
- Challenging
Define fringe benefit tax
Fringe benefits Tax (FBT) is a tax that employers must pay on certain benefits they provide to their employees or their employees’ associates. It is based on the taxable value of the various fringe benefits provided
Define summary dismissal
Summary Dismissal is an instant form of dismissal for employees involved in serious misconduct
Define leadership style
Leadership Style refers to ways that managers communicate with their employees to inspire and motivate them to work together to achieve an organisation’s goals
Identify types of leadership styles
Types of leadership styles:
- Autocratic
- Democratic
- Laissez-Faire
Define job design
Job Design is the number, kind and variety of tasks that a worker is expected to carry out in the course of performing their job
Identify types of recruitment
Types of recruitment:
- External recruitment
- Internal recruitment
Define internal recruitment
Internal Recruitment involves filling job vacancies with people from within the business
Define external recruitment
External Recruitment involves filling job vacancies with people from outside the business
Discuss the advantages and disadvantages of internal recruitment
Advantages:
- Motivates staff with opportunities
- Builds commitment and loyalty
- Employees know the culture and operations
- Recognises and rewards staff for achievement
- Cheaper than external recruitment
Disadvantages:
- Can reinforce negative culture
- Can lead to rivalry for positions
- Need an established framework for training and merit-based appraisal system
- Often attracts a number of internal applicants, so need to manage unsuccessful applicants
- Little value added, no new skills
Discuss the advantages and disadvantages of external recruitment
Advantages:
- Wider applicant pool
- Introduction of new ideas, perspectives, and skills
- Get specific skills needed which saves on training
- More diversity in employment
Disadvantages:
- Risk of unknown staff
- Lost productivity in the initial phases of orientation and induction
- New employee may not fit culture
- Takes a lot of time and effort
Define general skills
General Skills include flexibility and versatility, social confidence, positive attitude, motivation, and the ability to work as a team and/or independently
Define specific skills
Specific Skills are highly specialised skills that are required for some jobs within science, technology and engineering sectors employee poaching the practice of enticing employees to work for another business
Define employee poaching
Employee Poaching is the practice of enticing employees to work for another business
Define training
Training aims to develop skills, knowledge, and attitudes that lead to superior work
Define insourcing
Insourcing is the delegation of a job to someone within the business, as opposed to someone outside the business
True or False. Performance management addresses both individual and business performance
True
Define developmental performance management
Developmental Performance Management improves individual performance through establishing objectives such as reaching sales targets that are consistent with achieving the organisation’s goals
Define administrative performance management
Administrative Performance Management assesses the progress of a business in meeting its strategic goals and where necessary identifying the areas for improvement, such as establishing new goals or employee performance
Identify the benefits of effective developmental performance management
Benefits:
- Assists with human resource planning
- Identifies training or legal compliance needs
- Evaluation of rewards and benefits programs
- Help identify, motivate, and retain talented staff
Identify the benefits of effective administrative performance management
Benefits:
- Higher productivity
- Better financial performance
- Helps assess rewards and benefits
- Creates opportunity for feedback
Identify the types of performance management
Types of performance management:
- Developmental performance management
- Administrative performance management
Define remuneration
Remuneration is the financial and non-financial benefits that employees receive in return for their work
Define monetary rewards
Monetary Rewards are reflected in pay or having financial value
Define non-monetary rewards
Non-monetary Rewards do not have a financial value
Discuss the advantages and disadvantages of monetary rewards
Advantages:
- Easy and simplistic
Disadvantages:
- Money may not be a strong motivator for high earners
Discuss the advantages and disadvantages of non-monetary rewards
Advantages:
- Add prestige to the company
- Can be free
Disadvantages:
- Employees may feel frustrated, desiring cash
- May be worthless to some employees
Discuss the advantages and disadvantages of individual rewards
Advantages:
- Fair
- Incentive to work harder
Disadvantages:
- Lead to unhealthy competition
- Resentment towards unequal pay
Discuss the advantages and disadvantages of group rewards
Advantages:
- Encourages teamwork
- Accountability and responsibility
Disadvantages:
- Freeloaders galore
- Resentment towards unequal workload
Define performance pay
Performance Pay is remuneration that is based on distributing rewards according to individual employee performance
Explore the relationship between globalisation and costs, skills, and supply
Globalisation has provided foreign markets and competition, resulting in higher demands, having a knock on effect of higher costs, a skills shortage
Define negotiation
Negotiation is a method of resolving disputes when discussions between the parties result in a compromise and a formal or informal agreement
Define mediation
Mediation is the confidential discussion of issues in a non-threatening environment in the presence of an objective third party
Identify who the mediator can be
The mediator can be a representative from:
- An independent party
- A business, tribunal, or governmental agency
Define grievance procedures
Grievance Procedures are formal procedures generally written into an award or agreement that states the agreed processes to resolve disputes in the workplace
Identify the processes that involve courts or tribunals
Processes:
- Conciliation
- Arbitration
Define conciliation
Conciliation is a process where a third party is involved to help the other two parties reach an agreement
Define arbitration
Arbitration is a process where a third party is involved to hear both sides and makes a legally binding decision
Define indicators
Indicators are performance measures that are used to evaluate organisational and individual effectiveness
Define corporate culture
Corporate (business/workplace) Culture refers to the values, ideas, and expectations and beliefs shared by members of the business
Recall alternate terms for corporate culture
Corporate culture is also known as business or workplace culture
Identify indicators of corporate culture
Indicators of corporate culture:
- Staff turnover
- Levels of absenteeism
- Disputes and internal conflict
Define benchmarking
Benchmarking is a process in which indicators are used to compare business performance between internal sections of a business or between businesses
Define absenteeism
Absenteeism refers to a worker who neglects to turn up for work when they are supposed to
Describe the effect of high levels of absenteeism
High levels of absenteeism results in lost revenue, decreased productivity, and higher labour costs
Identify overt manifestation by employees
Overt manifestation by employees
- Picket
- Strikes
- Work-to-rule
- Work bans and boycotts
- Go-slow
Identify overt manifestations by employers
Overt manifestations by employers
- Lockouts
- Stand downs
- Dismissals and retrenchment
Identify covert manifestation by employees
Covert manifestation by employees
- Absenteeism
- Higher labour turnover rates
- Theft and sabotage
- Reduced productivity
Define staff turnover
Staff Turnover refers to the loss of employees by a business who leave for a variety of reasons
Identify covert manifestations by employers
Covert manifestations by employers
- Discrimination
- Harassment
- Lack of cooperation
- Exclusion from decision making
True or False. Worker satisfaction is a key factor in employee commitment, job performance, and reducing staff turnover
True
Identify how worker satisfaction is measured
Worker satisfaction can be measured through:
- Polls
- Focus groups
- Performance feedback
Identify matters that cause workplace disputes
External matters causing workplace disputes:
- Work Health and Safety
- Remuneration
- Employment conditions
- Job security issues
Provide examples of monetary rewards
- wage increase
- bonuses
- commissions
- company car
- insurance
Provide examples of non-monetary rewards
- Recognition –> employee of the month
- Reduction in menial tasks in job
