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UNIT 2 AOS 2 Flashcards

Human Resource Management

1
Q

Define “Human Resource Management”

A

The effective management of the formal relationship between the employer and employees

  • In small/medium businesses HRM is the responsibility of the business owner
  • In larger businesses, the task is done by a Human Resource Manager
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2
Q

Define “Human Resource Manager”

A

Someone who coordinates all the activities involved in acquiring, developing, maintaining and terminating employees from a business’s human resources

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3
Q

Define “Motivation”

A

The individual, internal process that directs, energises and sustains a person’s behaviour

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4
Q

What are the 3 motivation theories?

A
  1. Hierarchy of Needs (Maslow)
  2. Goal Setting Principles (Locke and Latham)
  3. Four Drive Theory (Lawrence and Nohria)
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5
Q

List the stages in Maslow’s Hierarchy of Needs

A
  1. Physiological
  2. Safety
  3. Social
  4. Esteem
  5. Self-Actualisation
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6
Q

Explain the “Physiological” stage in Maslow’s Hierarchy

A

The most basic needs necessary for survival, including, air, food, water and shelter. Without these needs, individuals cannot function properly.

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7
Q

Explain the “Safety” stage in Maslow’s Hierarchy

A

Once physiological needs are met, individuals seek safety and security. This includes physical safety as well as job security. People seek stability in their work environment to feel safe.

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8
Q

Explain the “Social” stage in Maslow’s Hierarchy

A

After safety needs are satisfied, individuals seek social relations and a sense of belonging. Humans crave connection, require friendship and involvement in decision-making.

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9
Q

Explain the “Esteem” stage in Maslow’s Hierarchy

A

Once social needs are fulfilled, individuals strive for esteem. They seek feelings of recognition, accomplishment and respect. Esteem needs are satisfied through achievements, promotions and positive feedback.

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10
Q

Explain the “Self-actualisation” stage in Maslow’s Hierarchy

A

At the top of the hierarchy is self-actualisation, representing the fulfilment of one’s potential and the desire to become the best version of oneself. This involves personal growth and pursuing passions.

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11
Q

2 advantages of Maslow’s Hierarchy of Needs

A
  1. Following the theory should allow the business to increase motivation for all employees
  2. Demonstrates how motivation can be increased over the long term
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12
Q

2 disadvantages of Maslow’s Hierarchy of Needs

A
  1. Difficult to identify where employees are on the hierarchy
  2. Difficult to monitor progression through the hierarchy
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13
Q

Define “Locke and Latham’s Goal Setting Theory”

A

Locke and Latham argue that goals provide a strong sense of direction, and the desire to achieve goals motivates employees which increases their performance

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14
Q

List the 5 principles of the Goal Setting Theory

A
  1. Clarity
  2. Challenge
  3. Commitment
  4. Task Complexity
  5. Feedback
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15
Q

Explain the Goal Setting Principle “Clarity”

A

The goal should be clear and as specific as possible. It is important that everyone understands what is expected, and the reward.

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16
Q

Explain the Goal Setting Principle “Challenge”

A

People are often motivated by achieving something they have not completed before. A challenging goal can provide a level of challenge that motivates employees.

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17
Q

Explain the Goal Setting Principle “Task Complexity”

A

While goals should challenge employees, the level of complexity mustn’t be overwhelming. Additional training may be required to assist the employee in completing tasks.

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18
Q

Explain the Goal Setting Principle “Feedback”

A

Feedback provides opportunities for recognition of progress, to make adjustments to the goal if necessary and to ensure expectations are clear.

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19
Q

2 advantages of Locke and Latham’s Goal Setting Theory

A
  1. Improves relationships between employees and managers as they work together to collaboratively set goals and provide feedback
  2. Easy to assess whether a goal has been achieved
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20
Q

2 disadvantages of Locke and Latham’s Goal Setting Theory

A
  1. It could be time-consuming to individually set goals and provide feedback in a large business
  2. Failing to meet a goal could be detrimental to an employee’s confidence
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21
Q

Define “The Four Drive Theory”

A

Lawrence and Nohria identified what they believed were the four main drives that shape how all human beings think and behave

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22
Q

List the 4 drives in the Four Drive Theory

A

BLAD
1. Drive to bond
2. Drive to learn
3. Drive to acquire
4. Drive to defend

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23
Q

Explain the “Drive to bond” in the Four Drive Theory

A

Refers to the need to form relationships with other individuals and groups

Examples: Teamwork, friendships and being included in the business & its decisions

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24
Q

Explain the “Drive to learn” in the Four Drive Theory

A

Refers to our desire to satisfy our curiosity, to learn new skills and to explore the world around us

Examples: mentoring, challenging goals and training

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25
Q

Explain the “Drive to acquire” in the Four Drive Theory

A

Refers to the desire to own material goods, and encompasses the desire for status, power and influence

Examples: money, praise and status

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26
Q

Explain the “Drive to defend” in the Four Drive Theory

A

The desire to remove threats to our safety and security, protecting what we regard as ‘ours’

Examples: defending the company, job security and defending a work colleague

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27
Q

2 advantages of Lawrence and Nohria’s Four Drive Theory

A
  1. Managers may target the different drives of specific groups of employees
  2. Managers can attempt to motivate all employees by supporting all drives simultaneously
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28
Q

2 disadvantages of Lawrence and Nohria’s Four Drive Theory

A
  1. Employees may not value all drives equally
  2. Determining the specific needs of specific individuals could be time-consuming
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29
Q

List the Motivation Strategies

A

PICSS
1. Performance-related pay
2. Investment in training
3. Career Advancement
4. Support strategies
5. Sanction strategies

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30
Q

Explain “Performance-related pay” as a motivation strategy

A

The monetary compensation provided to employees relative to how their performance is assessed according to set standards

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31
Q

List the different types of performance-related pay

A
  1. Pay increases
  2. Bonuses
  3. Commissions
  4. Share plans
  5. Profit-sharing
  6. Gain-sharing
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32
Q

Define “Pay increases” as a type of Performance related pay

A

Any employee who makes a significant contribution to the business objectives may be offered a pay rise, usually an increase in the hourly wage or yearly salary

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33
Q

Define “Bonuses” as a type of Performance related pay

A

A one-off payment is given to a particular employee or group of employees as a reward

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34
Q

Define “Commissions” as a type of Performance related pay

A

An amount paid for accomplishing a sale, usually a fixed percentage of the sale price is paid to the person who accomplished the sale of the product

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35
Q

Define “Share plans” as a type of Performance related pay

A

A company can offer shares in the ownership of the business to its employees, if the business is successful the profit is paid as a dividend to its shareholders

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36
Q

Define “Profit-sharing” as a type of Performance related pay

A

A business may offer a percentage of its profits to employees an incentive to work hard and raise profits, usually employees are offered a fixed percentage of the profits

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37
Q

Define “Gain-sharing” as a type of Performance related pay

A

A method of rewarding employees for making suggestions on how to improve productivity in the business, the savings achieved from these improvements are distributed to the employees.

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38
Q

Explain the effect of Performance related pay on short-term motivation

A

Pay increases, bonuses and commissions can influence employees as they provide an immediate and tangible reward for their commitment to the business.

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39
Q

Explain the effect of Performance related pay on long-term motivation

A

Share plans, profit sharing and gainsharing are longer-term motivations as the rewards may take several years to be achieved.

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40
Q

2 advantages of “Performance related pay” as a motivation strategy

A
  1. Can attract high-quality employees
  2. Improves employee performance as they chase higher incomes
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41
Q

2 disadvantages of “Performance related pay” as a motivation strategy

A
  1. Can be expensive
  2. May develop a competitive culture, undermining teamwork
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42
Q

Explain “Investment in training” as a motivation strategy

A

When a business provides finances and resources for training programs to develop employee’s skills and knowledge to make them more efficient in their roles.

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43
Q

Explain the effect of Investment in training on short-term motivation

A

Training gives employees opportunities to learn, which provides them access to those types of jobs

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44
Q

Explain the effect of Investment in training on long-term motivation

A

Successful completion of additional training provides the employee with a sense of accomplishment

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45
Q

2 advantages of the “Investment in training” as a motivation strategy

A
  1. May improve employee retention as staff loyalty and motivation are improved
  2. Improving the skills of employees can benefit the business as they feel more confident and perform more productively
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46
Q

2 disadvantages of the “Investment in training” as a motivation strategy

A
  1. A business may pay the cost of training only to have the employee leave for another business
  2. A business may be unable to afford the cost of training
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47
Q

Explain “Support Strategies” as a motivation strategy

A

The assistance or services provided by the business to help employees to do better

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48
Q

Explain the effect of Support strategies on short-term motivation

A

Providing support and encouragement can motivate employees to do better

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49
Q

Explain the effect of Support strategies on long-term motivation

A

Supportive workplaces can encourage a sense of loyalty and willingness to remain in the work environment

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50
Q

2 advantages of “Support strategies” as a motivation strategy

A
  1. Support can be provided at little to no cost
  2. Counselling and mentoring help employees develop meaningful professional relationships
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51
Q

2 disadvantages of “Support strategies” as a motivation strategy

A
  1. Requires a business to have a positive corporate culture
  2. Employees may become too dependent on their mentor/counsellor
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52
Q

Explain “Sanction Strategies” as a motivation strategy

A

A form of penalty or discipline imposed on an employee for poor performance

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53
Q

List 3 different types of sanctions used for motivation

A
  • Verbal warnings
  • Demotion
  • Reduction in salary
  • Termination
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54
Q

Explain the effect of Sanction strategies on short-term motivation

A

Can influence the lower needs on Maslow’s hierarchy, such as physiological or safety needs. It can also influence the defence drive identified by Lawrence and Nohria.

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55
Q

Explain the effect of Sanction strategies on long-term motivation

A

Likely to only impact short-term motivation, it doesn’t encourage employees to make a long-term commitment to the business.

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56
Q

2 advantages of “Sanction strategies” as a motivation strategy

A
  1. Creates a sense of accountability around expectations
  2. May quickly stop inappropriate behaviour
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57
Q

2 disadvantages of “Sanction strategies” as a motivation strategy

A
  1. Reduces a sense of belonging, creating a culture of fear and mistrust
  2. Can create a negative environment over the long term
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58
Q

Define “Training”

A

The process of teaching staff how to do their job more efficiently and effectively by boosting their knowledge and skills

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59
Q

Who benefits from training?

A
  1. Employees
  2. Businesses
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60
Q

What are the benefits of training for businesses?

A
  1. Goals and objectives are more effectively met
  2. Higher productivity (fewer errors and accidents)
60
Q

What are the benefits of training for employees?

A
  1. Opportunity for promotion and self-improvement
  2. Greater ability to adapt to and cope with changes
61
Q

Explain the effect of training on short-term motivation

A

Improved job satisfaction

62
Q

Explain the effect of training on long-term motivation

A

Promotion and self-improvement, leading to a greater ability to adapt to changes

63
Q

What are the different types of training?

A
  1. On-the-job training
  2. Off-the-job training
64
Q

Define “On-the-job training”

A

When employees learn skills to perform particular tasks within the workplace. This occurs in the working environment and uses the equipment and machinery present.

65
Q

2 advantages of On-the-job training

A
  1. Cost-effective, as no travel expenses are incurred
  2. Employees are working while training so productivity is maintained
66
Q

2 disadvantages of On-the-job training

A
  1. The quality of the training may vary
  2. Bad habits from older staff may be passed down to younger employees
66
Q

2 advantages of Off-the-job training

A
  1. Usually more structured and organised, with clear assessment processes
  2. Availability of a wider range of skills and qualifications than those in the workplace
67
Q

Define “Off-the-job training”

A

When employees learn skills in a location away from the workplace. It involves sending employees to specialised training institutions (e.g uni or tafe)

68
Q

2 disadvantages of Off-the-job training

A
  1. More expensive, with fees charged, travel costs & etc
  2. Lost working time while the employee is absent from the workplace
69
Q

Define “Development”

A

The process of preparing employees to take on more responsibilities in the future, acquiring better knowledge and skills, and gaining more experience

70
Q

List 3 programs aimed at training managers

A
  1. Job rotation
  2. Mentoring
  3. Formal business training
71
Q

Explain “Job rotation” as a program aimed at training managers

A

The employee experiences many different aspects of a business. Which develops management skills whilst applying them to different situations

72
Q

Explain “Mentoring” as a program aimed at training managers

A

A mentor acts a bit like a coach, supporting the employee as they learn. The employee can gain experience and skills from another person in the business.

73
Q

Explain “Formal business training” as a program aimed at training managers

A

This may be done through programs in a location away from the workplace.

74
Q

Define “Performance Management”

A

A focus on improving both business and individual performance by relating business performance objectives to individual employee performance objectives

75
Q

List all the Performance management strategies

A
  1. Management by objectives
  2. Appraisal
  3. Employee self-evaluation
  4. Employee observation
76
Q

Explain “Management by objectives” as a Performance Management Strategy

A

A process by which management and employees agree on a set of goals for each employee, with these goals contributing to the business objectives

77
Q

List all the steps of the process of “Management by objectives”

A
  1. Business objectives are clearly defined
  2. Individual employee goals are negotiated
  3. Regular monitoring of progress
  4. Performance feedback
  5. Performance appraisal on achievement of goals
78
Q

2 advantages of “Management by objectives” as a Performance Management Strategy

A
  1. Can highlight areas that employees need training in
  2. If employees are more involved in goal setting they become more invested and motivated to fulfil their goal
79
Q

2 disadvantages of “Management by objectives” as a Performance Management Strategy

A
  1. Time-consuming
  2. Failure to meet objectives could be demoralising
80
Q

Explain “Appraisal” as a Performance Management Strategy

A

The formal assessment of how efficiently and effectively an employee is performing their role in the business

  • Typically occurs at frequent intervals, e.g every 12 months, 6 months or every quarter
81
Q

What are the 3 methods of appraisal

A
  1. Essay
  2. Critical incident
  3. Comparison
82
Q

Explain “Essay” as a method of appraisal

A

The manager keeps a journal on each employee

83
Q

Explain “Critical incident” as a method of appraisal

A

Only noting down exceptionally good or bad aspects of the employees work

84
Q

Explain “Comparison” as a method of appraisal

A

Employees are ranked according to predetermined performance criteria. This could include rating scales (1-5) etc.

85
Q

2 advantages of “Appraisal” as a Performance Management Strategy

A
  1. Information can assist managers in making decisions regarding pay increases or promotion
  2. Facilitates communication and positive relationships between management and employees
86
Q

2 disadvantages of “Appraisal” as a Performance Management Strategy

A
  1. Time-consuming
  2. Staff who meet or exceed standards may expect a promotion which can be expensive for a business
87
Q

Explain “Employee self-evaluation” as a Performance Management Strategy

A

A process whereby employees carry out self-assessment, based on a set of agreed criteria

Examples of questions:
- What are my strengths?
- What are my weaknesses?
- Where could I improve?

88
Q

2 advantages of “Employee self-evaluation” as a Performance Management Strategy

A
  1. Can highlight the need for training and allow employees to request access to training
  2. Allow employees to be actively involved in the process of performance management and assist them in understand their role in the business
89
Q

2 disadvantages of “Employee self-evaluation” as a Performance Management Strategy

A
  1. Employees can overstate their performance
  2. Management may need to take some responsibility for monitoring performance
90
Q

Explain “Employee observation” as a Performance Management Strategy

A

A strategy where a variety of opinions on the performance of employees is sought to arrive at a more comprehensive picture of past and current performance

91
Q

2 advantages of “Employee observation” as a Performance Management Strategy

A
  1. A broad range of opinions can provide a comprehensive picture of performance
  2. Employees may be more likely to respond to feedback if they value the opinions of their peers
92
Q

2 disadvantages of “Employee observation” as a Performance Management Strategy

A
  1. Staff stress can increase due to the observation
  2. Process could be damaging if any one of the participants has a personal vendetta against the employee
93
Q

Define “Termination”

A

The ending of the employment of an employee

94
Q

What are the 2 types of termination?

A
  1. Voluntary
  2. Involuntary
95
Q

Define “Voluntary Termination”

A

Employees nominate themselves because they are willing to leave the organisation

95
Q

What are the types of Voluntary Termination?

A
  1. Retirement
  2. Resignation
  3. Redundancy
95
Q

Explain “Retirement” as a type of Voluntary Termination

A

Occurs when an employee decides to give up full-time or part-time work and no longer be part of the labour force.

96
Q

Explain “Resignation” as a type of Voluntary Termination

A

The voluntary ending of employment by the employee by the employee ‘quitting’ their job

97
Q

Explain “Redundancy” as a type of Voluntary Termination

A

Occurs when a person’s job no longer exists, usually due to technological changes or a business restructure

98
Q

Define “Involuntary Termination”

A

Employees are forced to leave the organisation against their will

99
Q

What are the types of Involuntary Termination?

A
  1. Dismissal
  2. Redundancy
100
Q

Explain “Dismissal” as a type of Involuntary Termination

A

Occurs when the behaviour of an employee is unacceptable and a business terminates their employment

101
Q

What are the 2 types of Dismissal?

A
  1. Summary dismissal
  2. Dismissal on notice
102
Q

Define “Summary dismissal”

A

When an employee commits a serious breach of their employment contract. This is when no notice is required.

102
Q

Define “ Dismissal on notice”

A

When an employee is not performing the job satisfactorily. Poor performance may be identified during an appraisal or performance process

103
Q

Define “Unfair Dismissal”

A

When an employee is dismissed because the employer has discriminated against them in some way.

104
Q

Define “Entitlement issues”

A

The right to benefit that employees have when leaving the workplace, either on a voluntary or an involuntary basis

Examples:
- Salary owed
- Termination statement
- Redundancy payment

104
Q

Define “Transition considerations”

A

Issues relating to the process of changing from one job to another or from one set of circumstances to another

105
Q

Explain the “Transition considerations” for Retirement

A

The transition considerations that may be offered involve a gradual reduction in days worked over a period of time to allow the employee to make a smooth transition to retirement

106
Q

Explain the “Transition considerations” for Redundancy

A

The employee may assist in a form of help with writing job applications for other positions. Employees may ask for references for potential employers and time off to attend job interviews.

107
Q

Define “Workplace relations”

A

The interactions between employers and employees to achieve a set of working conditions that will meet the needs of employees.

107
Q

Define “Transitional outplacement services”

A

External organisations will typically provide the outplacement services, paid for by the business. The services consist of helping employees to transition to a new job or career.

Examples:
- job interview training
- career coaching and counselling
- assistance with resumes

107
Q

List all the participants in the workplace

A
  1. Human Resource Managers
  2. Employees
  3. Employer associations
  4. Unions
  5. Fair Work Commissions (FWC)
107
Q

Explain the role of Human Resources Managers: “Training of staff and other managers”

A

Provide employees with appropriate training to maximise their performance

108
Q

What are the roles of Human Resource Managers in workplace relations?

A
  1. Training of staff and other managers
  2. Dealing with disputes
  3. Negotiation of employment agreements
  4. Implementation of the agreement
109
Q

Explain the role of Human Resources Managers: “Dealing with disputes”

A

The HRM can act as a mediator and manage the resolution of disputes that may arise under an enterprise agreement

110
Q

Explain the role of Human Resources Managers: “Negotiation of employment agreements”

A

To carry out this task, the relevant managers need to be aware of all legal issues, so that the negotiated agreement satisfies the requirements.

111
Q

Explain the role of Human Resources Managers: “Implementation of the agreement”

A

Changes to wages, hours of work and leave entitlements are handled by human resource managers

112
Q

What are the roles of Employer Associations in workplace relations

A

Employer associations refer to organisations that represent and assist employer groups. They have the responsibility of keeping their members informed with legislative changes and negotiating workplace agreements.

112
Q

What are the roles of Fair Work Commissions (FWC) in workplace relations

A

FWC is Australia’s national workplace tribunal that has the power to carry out a range of functions under the Fair Work Act 2009.

They are responsible for:
- making awards in the national workplace relations system
- they approve agreements reached between employers and employees at an enterprise level, ensuring all parties comply with those agreements
- they help parties resolve workplace disputes when no agreement can be reached through conciliation, mediation and arbitration
- deal with unfair dismissals
- review and set a minimum wages

112
Q

What are the roles of Employees in workplace relations?

A

Employees are increasingly negotiating employment arrangements in the workplace and are closely involved when there are new or changed arrangements

113
Q

What are the roles of Unions in workplace relations

A

Unions are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members

114
Q

List the 11 National Employment Standards

A
  1. Maximum weekly hours
  2. Flexible work arrangements
  3. Changing from causal to permanent
  4. Parental leave
  5. Annual leave
  6. Other leave (personal, family & domestic violence leave)
  7. Community service leave
  8. Long service leave
  9. Public holidays
  10. Notice of termination
  11. Information statements
115
Q

Define “Awards”

A

A legally binding document determined by the Fair Work Commission that sets out minimum wages and conditions for employees across an entire industry or occupation.

116
Q

2 advantages of Awards

A
  1. They provide a safety net for employees, ensuring they cannot receive wages or conditions below
  2. Fewer disputes over wages due to no ability to negotiate at an enterprise level
116
Q

2 disadvantages of Awards

A
  1. Less flexibility to tailor the wages and conditions to the needs of the business and employees
  2. Business may need to implement multiple awards
117
Q

Define “Individual Employment Contract”

A

Covers those employees who are not under any award or collect/enterprise agreements

117
Q

Define “Agreements”

A

A legal agreement on the pay and conditions of work made at the workplace level and negotiated between employees and employers

118
Q

Define “Enterprise bargaining”

A

There is an expectation that both parties enter negotiations in good faith. By attending and participating in meetings and responding to proposals promptly

118
Q

2 advantages of Agreements

A
  1. Highly flexible as the wages and conditions can be tailored to the needs of employees and the business
  2. Can attract and retain high-quality employees
119
Q

2 disadvantages of Agreements

A
  1. More expensive for the business
  2. Time-consuming to negotiate and come to an agreement
120
Q

Define “Disputes”

A

A result of a disagreement or dissatisfaction between individuals or groups

121
Q

What are the types of industrial actions done in order to resolve disputes?

A
  1. Strikes (withdrawal of labour)
  2. Lock-out (closing the workplace for a period of time)
  3. Picket lines (protests)
  4. Absenteeism
122
Q

Define “Protected action”

A

Action taken by either party to a dispute that has been approved by the Fair Work Commission

123
Q

Define “Unprotected action”

A

Action that takes place before the expiry date of the previous agreement, without proper warning

124
Q

List the stages of the Dispute Resolution Process

A
  1. Listen to staff
  2. Negotiating
  3. Mediation
  4. Conciliation
  5. Arbitration
125
Q

Define “Negotiation”

A

A method of resolving disputes whereby discussions between the parties result in a compromise and an agreement about a dispute

126
Q

Define “Mediation”

A

The confidential discussions of issues in a non-threatening environment, in the presence of a neutral, objective third party, who helps the parties in a dispute to work towards an agreement, but does not offer suggestions or solutions

127
Q

2 advantages of Mediation

A
  1. The disputing parties come to their resolution. More likely accepting of the outcome
  2. Generally more cost-effective
128
Q

2 disadvantages of Mediation

A
  1. There is no guarantee there will be a resolution
  2. It is voluntary which means they do not need to turn up, which may delay the resolution
129
Q

Define “Arbitration”

A

A dispute resolution involving an independent third party hearing both arguments in a dispute and determining a legally binding outcome, after deciding which party is more right.

130
Q

Explain Arbitration at the FWC (Fair Work Commission)

A

FWC resolves workplace disputes through conciliation, mediation and in some cases arbitration.

131
Q

Define “Conciliation”

A

A process that occurs when a third party participates in the resolution of a dispute and attempts to resolve the differences through discussions

132
Q

What are the similarities between Mediation and Arbitration?

A
  1. Both are methods of dispute resolution and are included in the awards
  2. They both usually involve Fair Work Commissions (FWC)
  3. Both are used when the employer and employee are unable to resolve the dispute internally
133
Q

What are the different characteristics of Mediation?

A
  1. A quick and cheap way of resolving disputes
  2. Outcomes are not legally enforced
  3. Employers and employees must agree to take part
134
Q

What are the different characteristics of Arbitration

A
  1. Parties can be forced into arbitration
  2. Formal procedures and acts more like a court
  3. Decisions are legally enforceable

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