Role of human resource management

Question 1

What is “Human resource management”?

Answer 1

Human resource management refers to systems that have been developed to manage people within an organisation or business.

Question 2

What is involved in the human management process?

Answer 2

• The planning of staff needs
• the acquisition and maintenance of employees
• training and development
• The supervision and management of the performance of all employees
• The separation of employees when they leave the business
• The management of issues such as conflict resolution and the changing nature of the workplace

Question 3

What is the Strategic role of Human resources (HR)?

Answer 3

To ensure that the productivity of a business or its outputs per person can achieve its fullest potential because the employees are effective and efficient in the way they go about their tasks.

Question 4

What are the three major areas of strategic HR management?

Answer 4

Best practice, Best fit, Resource-based view

Question 5

What is Best practice?

Answer 5

Includes employment security, merit selection in hiring, extensive training and development, sharing information, self-managed teams, high pay based on business performance and the reduction of levels of status within and organisation

Question 6

What is best fit?

Answer 6

Best fit, where it is argued that Hr management works best where there is a close relationship between HR methods and the strategy of the business

Question 7

What is a resource-based view?

Answer 7

Focuses on the internal resources of the organisation and the contribution that they make to the competitive advantage of the business

Question 8

What is the interndpendance between HR and Operaitons?

Answer 8

HR management contributes to the core business function of operations through planning staff needs, acquiring employees, training and developing them, supervision and maintained and conflict resolution

Question 9

What is the interdependence between HR and marketing?

Answer 9

A major part of the HR management function will be to hire and train employees of the business and this will be important in the marketing area. It will be the function of marketing to bring the product of the business to the customer and this will be performed successfully with the best Hr that have access to quality training and development.

Question 10

What is the interdependence between human resources and finance?

Answer 10

Fiancee is a key position to help HR achieve its objectives. This is because in many businesses finance is becoming the main source of performance measurement data. The information finance gathers on earnings, productivity and customer satisfaction provides tremendous insight into the staffing and development needs of a business. Unless this information is shared with HR, this key function will find it difficult to do its job

Question 11

Give three reasons as to why a business may choose to outsource business functions?

Answer 11

• Outsourcing enables businesses to concentrate on their core business.
• Outsourcing means a specialist business is managing that function. This gives access to the skills of a specialist rather than having to develop those skills in-house
• It can reduce costs

Question 12

When a business chooses to outsource what does it do?

Answer 12

By outsourcing, a business enters into a contract with another business. This means that the outsourcing business can seek compensation if good or services are not delivered in terms of the contract

Question 13

Name three disadvantages of outsourcing HR

Answer 13

• Cost savings are not always achieved
• Employee unrest- Employees can be displaced when outsourcing occurs and there can be problems of incompatibility working with people from other businesses
• Loss of control- once the HR function is outsourced, the business loses a degree of control over issues such as selection policy.

Question 14

What does a business need to have if it chooses to outsource?

Answer 14

If a business decides to outsource its HR function it needs to have clear objectives established in terms of what it wants to achieve

Question 15

When a business outsources what will it need to decide?

Answer 15

The outsourcing business needs to decide which functions are core business and which functions will be outsourced (for example, training and development may be considered core business while acquisition, payroll and pensions may not be and may be outsourced)

Question 16

What is the difference between a contractor and an employee?

Answer 16

With an employee, there is a contract of service that is established between the employee and the employer. Part of this contract will involve ‘exclusivity’. This does not happen with a contractor who is employed on a contract for services. Contractors have independence and are not subject to the regulations and directives of a business.

Question 17

What are some reasons a business may choose to employ a contractor?

Answer 17

• A business may wish to fill a temporary position that may only exist for a short time
• Employment ceases when the contract is completed
• It can be less expensive to hire a contractor as they have less on-costs such as workers compensation

Question 18

What problems may arise from hiring a contractor?

Answer 18

• Time lags may exist between the need for a contractor and the position being filled
• Independent contractors do not necessarily have loyalty to the hiring business
• Problems will arise if the work specified in the contract is not performed

Question 19

What is the advantage of hiring domestic contractors?

Answer 19

The main advantage of outsourcing to domestic contractors is that they have developed an expert knowledge of the HR function based on their knowledge of how Australian businesses operate

Question 20

What are three reasons a business may choose to use a global contractor over a domestic contractor?

Answer 20

• Using a HR business in which locals will have confidence without minimising the global status of the outsourcing business
• Using a business that is sensitive to local cultural issues: this would include training and development
• Remaining globally competitive

Question 21

What will the outsourcing business need to instruct the local HR business on with regards to staff policy?

Answer 21

When employing staff in its overseas office or subsidiary, a business may adopt a policy of hiring from the parent country, hiring from the host country, or hiring the best person for the job

Question 22

What is the main problem with outsourcing to a global contractor?

Answer 22

The main problem with outsourcing to a global contractor is that instructions must be very clear and not lose anything by translation into local language

Question 23

What are the key influences in the processes of human resources?

Answer 23

• Stakeholders
• Legal influences including current legislation that governs the workplace
• economic influences
• the influence of technology
• social influences
• Ethics and corporate social responsibility

Question 24

In recent times what has been a major change in regards to the relationship between employees and employers?

Answer 24

A major change has been the move from a centralised highly regulated industrial relations system to a more decentralised system where the emphasis is on what is negotiated at individual workplaces

Question 25

What are some examples of a stakeholder?

Answer 25

Stakeholders include employees, employers, unions, employers organisations, government organisations and society as a whole.

Question 26

Why is each stakeholder important?

Answer 26

Each stakeholder is important as each contributes to the employer-employee relationship and will be affected by the nature and outcomes of this relationship

Question 27

What is there increasing recognition of among stakeholders?

Answer 27

There is increasing recognition among stakeholders of the connection between effective employment relations and improved productivity and profits of a business, and economic growth and social wellbeing for the country.

Question 28

What are some employer goals

Answer 28

Operating an efficient, profitable business, being a successful competitor and having employees who reach high levels of productivity.

Question 29

Why are employers vital?

Answer 29

They provide employment opportunities and contribute to determining wages and working conditions

Question 30

What are some employers responsibilities?

Answer 30

Legal responsibilities, such as operating a safe and healthy workplace under workplace health and safety laws, and management responsibilities, such as guidance and supervision of employees to encourage high quality performance of their duties

Question 31

What are some employees goals?

Answer 31

To earn the highest possible wage, have the best working conditions enjoy job security and have a sense of achievement and satisfaction

Question 32

What are some examples of Employers associations?

Answer 32

These may be industry-based, such as the National Farmer’s Federation, or broader organisations such as the Business Council of Australia.

Question 33

What is the main purpose of Employers associations?

Answer 33

The main purpose of these organisations is to represent the interests of employers in specific areas such as negotiations with employees and unions, to develop policies and strategies for effective employment relations and to act as lobby groups to further the interests of their members

Question 34

What is a union?

Answer 34

Unions are organisations that represent groups of employees on issues such as pay and conditions, health and safety and job security.

Question 35

What is the role of a union?

Answer 35

The role of the union is to support, advise and represent employees when making collective agreements and in wage negotiations and industrial conflicts to advise them on their legal rights and responsibilities, and to act as a pressure group to highlight workers, concerns.

Question 36

What is the peak union body?

Answer 36

The peak union body is the Australian Council of Trade Unions (ACTU), which advocates issues that have an impact on workers on a countrywide basis

Question 37

How is the government a stakeholder in businesses?

Answer 37

Federal and state governments are actively involved in employment relations because of their role as an employer, as the manager of the economy and as the manager of the economy and as the developer and administrator of the laws related to employment relations

Question 38

What does the government develop?

Answer 38

The government develops the legal framework of employment and establishes independent organisations- such as the NSW industrial relations commission and Fair work Commission to support this legal framework

Question 39

What is the Fair Work commission?

Answer 39

The fair work commission is the national workplace relations tribunal.

Question 40

What are some of the functions of the Fair Work Commission?

Answer 40

• Industrial action
• The safety net of minimum wages and employment conditions
• Termination of employment