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Unit 3/4 - Business Management > Unit 3 AOS 2 > Flashcards

Unit 3 AOS 2 Flashcards

1
Q

Define Human Resource Management

A

the organisation of the employee’s roles, pay and working conditions

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2
Q

What are HR Managers responsible for?

A
  • employee motivation
  • employees ability to contribute to business objectives (through training, supporting employees and performance management)
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3
Q

Link b/w make a profit and managing employees

A

Lower staff turn over lower costs b/c don’t have to pay expenses to replace (recruitment and training)

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4
Q

Define motivation

A

factors that drive an employee to strive to achieve in the workplace

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5
Q

Why do organisations want motivated employees

A

= more productive → profit

= more pride in work → better quality → increased market share

= less likely to take leave or resign = lower staff absenteeism and lower staff turnover = more productive + less costs

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6
Q

4 things that must be in any description of Maslow’s theory

A
  • needs based → motivation comes from needs being met
  • needs = physiological, safety and security, belonging, esteem and self-actualisation
  • needs = hierarchical
  • once need met it is no longer a motivator
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7
Q

What are physiological needs?

A

Basic requirements for human survival (food, water and shelter) – fulfilled in the workplace through minimum pay and working conditions

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8
Q

Sign Physiological needs are not being met

A

under payment

insufficient hours

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9
Q

What are safety and security needs

A

desire to be free form harm = OH&S (physical and psychological) + job security

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10
Q

Sign security needs are not being met

A

Threat to continued employment/threat of job losses

Fear of change - e.g. new tech and not being able to adapt

Bullying/harassment

Unsafe working conditions

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11
Q

What are belonging needs?

A

Desire for sense of belonging/connection - both to others and to the business

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12
Q

What are esteem needs

A

The desire to feel important, valuable and respected

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13
Q

What are self-actualisation needs

A

the realisation of one’s full potential

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14
Q

How to meet security needs

A
  • Create job security - e.g. contracts OR offering training during change to help adapt
  • Ensure employees have safe and healthy work conditions (OH&S or harassment policies)
  • Superannuation and insurance
  • Competent, consistent and fair management
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15
Q

How to meet belonging needs

A

Organise groups of staff to work on projects/solve problems
Organise staff gatherings. Morning tea, after work events
Events to interact with clients
Celebrating milestones

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16
Q

How to meet esteem needs

A

Performance pay
Recognition for work at whole staff events/meetings
Being made an example of in the day to day operations-→ Praise
Promotions

Expanding responsibilities

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17
Q

How to meet self-actualisation needs

A

Provide challenging work

Provide opportunities for skill and knowledge development

Allow them to express creativity/innovation/capacity

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18
Q

5 elements of a description of Lawrence’s theory

A
  • employees motivated by drives
  • drives = bond, acquire, learn, defend
  • different employees place different levels of importance on specific drives
  • drives can vary in importance for individuals at different times
  • Role of manager = diagnose what drives are not being satisfied and devise a strategy to satisfy
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19
Q

What is the drive to bond?

A

desire to form relationships with other individuals and groups and to feel supported and included.

Business context = feeling proud to belong to a business – greatly impacted if business does something to betray feeling of pride

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20
Q

How can drive to bond be satsified?

A

HR Manager strategy = develop and maintain culture that creates strong sense of collaboration, openness, pride
Line Manager strategy = encourage teamwork within their area of responsibility

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21
Q

What is the drive to acquire?

A

Basic = desire to own material goods necessary for survival (e.g. clothing, housing, money)

+

complex = desire for status, power and influence (e.g. promotion/private office)

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22
Q

How can the drive to acquire be satisfied?

A
  • HR Manager strategy = develop a reward system linked to performance, offer best performers opportunities for advancement
  • Line manager strategy = reward an individual employee with praise, recognition or interesting assignments
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23
Q

What is the drive to learn?

A

= desire to gain knowledge, skills and experience

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24
Q

How can the drive to learn be satisfied?

A
  • HR Manager strategy = job designs that are challenging, encourage growth, exploration, create interesting training/development opportunities, job rotation
  • Line Manager = ensure jobs within area are meaningful, interesting and challenging
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25
Q

What is the drive to defend?

A

= desire to protect personal security as well as the values of a business

•Motivates in 2 ways – protect themselves from harm + protect business from harm

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26
Q

How can the drive to defend be satisfied?

A
  • HR Manager = create fair, trustworthy and transparent processes related to grievance resolution, decision-making, performance management, work-life balance
  • Line Manager = open and honest communication
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27
Q

What is Locke and Latham’s Motivation theory?

A

•: A motivation theory based on the view that motivation at work comes from setting, progressing towards and achieving goals

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28
Q

What 5 conditions must goals meet to be motivating (Locke and Latham)?

A
  1. Commitment – process for setting goals = negotiation b/w employee and manager à employee involvement in process is central to Locke’s theory
  2. Clarity - Clear goals = measurable and unambiguous (these goals should align with the business goals)
  3. Level of Challenge – the more challenging the goal the more effort from employees BUT only if goals are accepted by the employee; therefore, need to feel achievable (i.e. a stretch NOT a leap)
  4. Task complexity - Give the person sufficient time to meet the goal or improve performance. Provide enough time for the person to practice or learn what is expected and required for success.
  5. Feedback – regular + linked to goals throughout process = provide recognition + adjust goals if necessary
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29
Q

If the question asks you to recommend a motivational theory, what are your options?

A

Locke and Latham Goal Setting

Maslow’s Hierarchy of Needs

Lawrence and Nohira 4 drive theory

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30
Q

If the question asks you to recommend a motivational strategy what are your options?

A

Performance related Pay

Career Advancement

Investment in Training

Support Sanction

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31
Q

What is Performance Related Pay?

A

= financial reward for employees whose work is considered to have reached OR exceeded a required standard (can be allocated to individuals or teams)

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32
Q

How can the strategy of Performance Related Pay be used?

A

Bonuses
Commissions
Share plan or profit share
Pay rise

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33
Q

When is performance related pay appropriate

A

Looking for Short-Term Motiviation + When the work directly relates to the output and output can be quantitatively measured (e.g. sales) NOT tied to outcomes the employee cannot exert significant control over

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34
Q

Advantages of using Performance Related Pay

A

Can help attract and retain highly skilled employees to the business
Aligns efforts of employees to aims and objectives of the organisation = ↑ productivity
Tangible way of recognising achievement

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35
Q

Disadvantages of using Performance Related Pay

A

If assessment is subjective, employees can feel hard done by if they aren’t fairly assessed
Can cause conflict between workers  e.g. can lead to ‘competition’ therefore reduce teamwork OR if groups are rewarded equally can create friction if one member of team is not pulling their weight
Generates a ‘performer culture’  values outcome over process  compromise of values (e.g. quality)
Can lead to safe work practices being sacrificed (focus on volume)
If goals too challenging = demotivating b/c not achievable

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36
Q

What is Career Advancement and how does it motivate?

A

preparing employees for promotion OR promotion

Long-term motivator b/c fulfils:
- Desire for ↑ remuneration + ↑ challenge + ↑ status = satisfies ambition

37
Q

How can the strategy of career advancement be implemented?

A

Job enlargement  ↑ size of current job by combining various roles at same level in one
Job enrichment  ↑challenge by providing more control/scope/autonomy to employee in role
Job rotation  moving employees b/w different jobs to ↑ variety and understanding of workplace = broaden knowledge + ↓ boredom

38
Q

Advantages of using Career Advancement

A

Reduce staff turnover of talented staff as staff can move up through the business rather than leaving for a “better” job  retains intellectual property and continuity of knowledge
Helps build and maintain culture (if the business has a strong culture)
Opportunity to ↑ employee’s contribution to the business

39
Q

Disadvantages of using Career Advancement

A

Potential to demotivate those overlooked
Employees can be promoted above capability
Creates unrest if promotion not fair/warranted
Job enlargement/enrichment  ↓ productivity as employees have broader responsibilities
There is a limit on senior positions that prevents career advances being used with many employees

40
Q

What is the strategy of Investment in Training and how can it motivate?

A

Organisation devotes resources (time and money) to the process of enhancing the knowledge and skills of employees so that they increase expertise to perform at a higher level
Demonstrates organisations commitment to employee performance + training improves employee efficiency + increased confidence (mastery) + impact on culture (demonstrated value of employees)

41
Q

Advantages of investment in training

A

Indicates the business values employees t/f improves r/ship b/w management and employees
Improves employee capability and performance = increased job satisfaction
Develops learning culture

42
Q

Disadvantages of investment in training

A

Expensive
Lack of productivity while employees are being trained
If up-skilled employees are not given the opportunity to use skills it leads to disenchantment

43
Q

Impact of investment in training on long-term and short term motivation

A

Short term IF focussed on improving current role = reduces stress and anxiety POTENTIAL to lower short-term motivation if training is seen as inconvenient or a waste of time
Long term IF focussed on continuous training and new skills – linked to career advancement t/f feel constantly being given opportunities to increase skills + motivated as more mastery in current role + positive working environment

44
Q

What is the strategy of Support and how does it provide motivation?

A

individual assistance to help employees cope with problems that negatively effect their lives and work performance

Can assist in motivation by helping employees regain focus and as a result motivation
Mentoring creates connections for employees/demonstrates investment in individuals = feel valued, understood and considered by mgmt
Long term = contributes to a culture where employees feel mgmt. will help them if they face an issue + increased feeling of value leads to long-term commitment to the business

45
Q

Advantages of Support

A

Improves mental wellbeing of the employees (what theory does this link to?)
Can lead to reduction in absenteeism + turnover
Assist employees to learn from mistakes

46
Q

Disadvantages of support

A

Can be costly to the business without direct increases in output
Confidentially may lead managers to have a lack of understanding of employee issues
Can be difficult to find the right support
Relies heavily on manager’s interpersonal skills

47
Q

What is the strategy of Sanction and how does it impact motivation?

A

penalty for poor performance or disobeying a business policy

Impact on employees observing sanction  motivate them to do the “right” thing due to fear of sanction
Increases adherence to policies
SHORT TERM – motivated to avoid penalties BUT may lead to overwhelming fear
LONG TERM – negative impact only – employees become desensitised to penalties and punishments + decrease connection to workplace –ve working environment

48
Q

How can the strategy of support be used?

A

Confidential counselling services
Mentoring programs
Financial planning – e.g. advice on superannuation or insurance
Accommodating out of work obligations – e.g. increased carers leave or providing leave of absences

49
Q

How can the strategy of sanction be used?

A

Threat of sanction
Official warnings and meetings
Delegation of less desirable jobs
Missing promotions
Dismissal
If casual, reducing employment hours

50
Q

What are the advantages of sanction?

A

Can stop undesirable behaviours quickly
Can expose those who don’t comply

51
Q

What are the disadvantages of sanction?

A

Impact on culture  Can lead to cover ups + Can reduce sense of belonging and mutual respect therefore have a negative impact on motivation
Research = never turns an under-performing employee into a high-performing one (get minimum standard only)
Reduces level of trust b/w employees and mgmt.  increase turnover

52
Q

Define training

A

Training is the process of increasing knowledge, skills and capacity of an employee to help them perform more effectively and efficiently in their role. Can include development which is focussed on preparing employees for long-term opportunities

53
Q

Define off the job training

A

the employee is removed from the usual work environment to complete training (e.g. a seminar/workshop)

54
Q

Define on the job training

A

the employee is remains in the usual work environment and complete their job while training occurs (e.g. observation and feedback OR mentoring)

55
Q

When is off the job training suitable?

A

Training is delivered by someone outside the business
Training is being delivered to a large group of people
Training is information based
Training is ‘high risk’ for learning to occur ‘in the wild’ (e.g. related to OH&S)

56
Q

How is off the job training conducted?

A

Lectures and conferences
Simulation/role plays
Additional certificate, diplomas, degrees

57
Q

Advantages of off the job training

A

Training delivered by professionals
External experts provide new perspectives
Removing employees from usual workplace reduces distractions and allows them to focus
Increases employability (e.g. if it is a qualification)

58
Q

Disadvantages of off the job training

A

Employee is away from workplace – lowers productivity while training is occurring
Training is not contextualised to the business – can be difficult to translate back
Travel time
Increased costs

59
Q

When is on the job training suitable?

A

Training is focussed on something that is particular/unique to the organisation
Training is directly focussed on completing a specific task
Small numbers for development purposes
Training is application based
Training requires a small adjustment to employee procedures

60
Q

How is on the job training conducted?

A

coaching, tutoring/mentoring by a supervisor or colleague
Job shadowing a more experienced employee (follow to observe how they do their role)
apprenticeships
participation in particular work activities and assignments
job rotation within the organisation

61
Q

What are the advantages of on the job training?

A

Employees can perform role while training = minimises loss of productivity
Increased r/ship w/ mgmt. if they are training
More tailored to organisational needs
Often quicker + no time lost due to travel
Lower cost

62
Q

What are the disadvantages of on the job training

A

Business can lack experienced staff to conduct training OR experienced staff may not have skills to effectively train
Employees who are not being trained can be disrupted
Employees can be distracted while being trained
Employees can learn bad habits from staff who are training them
Can distract senior management from focus on other work responsibilities

63
Q

Define performance management

A

the process used to improve business and employee performance to ensure that goals and objectives are met, it involves evaluation and using information to drive decisions about:
remuneration,
promotion,
transfers,
disciplinary procedures,
training and development
Terminations

If used correctly the process aligns individual objectives with organisational objectives and communication b/w management and employees is improved by the process

64
Q

If the question asks for performance management strategies what are your options?

A

Management by objectives

Appraisals

Self evaluation

Employee observation

65
Q

What is Management by Objectives?

A

Involves the manager and employee to setting SMART goals with each employee, periodically discussing their progress towards these goals and at the end of the review period measure performance against objectives

Assessment based on what the employee achieved  accomplishments are rewarded

66
Q

Advantages of Management by Objectives

A

Provides employees with clarity about their responsibilities and the results expected of them
Aligns employee goals and business objectives
Leads to greater understanding of how activities relate to the achievement of their team, business unit and overall goals of the business
Continuous feedback builds r/ship b/w employee and manager

67
Q

Disadvantages of Management by Objectives

A

Time consuming for managers
Employees may take harmful shortcuts to achieve objectives
Failure to meet objectives can be out of employee control + demoralising

68
Q

What is appraisal?

A

process for evaluating how well an employee has performed against a range of criteria, provides feedback to employees and establishes plans to improve performance

69
Q

Advantages of appraisal

A

Informs decisions – e.g. promotions, transfers, and terminations
Identifies training and development needs
Provides information about how the organisation is going in other areas – e.g. effectiveness of recruitment/selection/training

70
Q

Disadvantages of appraisal

A

Requires managers to be objective focussing only on work performance in period being appraised – otherwise can be seen as unfair
Can lead to conflict and resentment
Time consuming to conduct for all employees
Some employees find it difficult to take constructive feedback  ↑ stress

71
Q

What is the strategy of self-evaluation

A

Employees self-assess their performance related to predetermined objectives and their contribution to the business team or unit

Self-evaluation = first step in review process (used with other strategies)

Difference b/w employee assessment and manager assessment can be used to focus two-way communication

72
Q

Advantages of Self-Evaluation

A

Provides employees with a role in process + ↑ drive to achieve objectives
Provides manager with insight into employee’s perceptions of their performance

73
Q

Disadvantages of Self-Evaluation

A
  • Difficult for employees to give themselves a fair assessment

+ risk of appearing either conceited OR being too harsh leading to managers to think less of their actual performance

Risk of conflict if management and employee disagree

74
Q

What is the strategy of employee observation?

A

Involves a range of employees from different levels assessing another employee’s performance against set criteria
Often known as 360-degree feedback
Important that implement aligns with objectives

75
Q

Advantages of employee observation

A

Range of sources improves accuracy
Manager gains different perspectives
Can build culture

Employees observing can identify others strengths and mimic

76
Q

Disadvantages of employee observation

A

Some observers will not be privy to all of the objectives of the employee
Some feedback may be inaccurate as some could have a poor r/ship with person being reviewed and wish to harm their
reputation

t/f results may be misleading

77
Q

Define termination management

A

the management of all the processes relating to staff leaving the organisation

Employment can be ended voluntarily by the employee (resignation or retirement) or involuntarily (redundancy or dismissal)

78
Q

What are entitlement issues?

A

rights that must be adhered to legally  in all cases it includes payment for work already completed + pay out of holiday and long service leave (if due) NB sick leave is not a accrued benefit = common misconception

79
Q

What are transition issues

A

areas that a business will go above and beyond their legal obligations in the area of terminations  aimed at assisting the employee to adjust to new direction (e.g. obtain a new job OR preparation for retirement)

80
Q

How can a business demonstrate CSR when managing termination

A

Go above and beyond entitlement issues (e.g. give more notice or redundancy pay)

Provide transitional issues

81
Q

Define resignation

A

Resignation is an employee voluntarily terminating their own employment, usually to take another job position elsewhere

82
Q

What are the entitlement and transition issues when someone has resigned?

A

Entitlement:
Employee must give notice (the length of which is dependent on terms of their employment)
Employees are entitled to receive any accrued benefits – e.g. annual leave, long-service leave or money for work they have completed

Transition issues
Conduct exit interviews to identify reasons why people are leaving the organisation.
Plan for replacement to fill role
Provide recognition of their service and achievements when leaving by holding a celebration

83
Q

Define retirement

A

Retirement is an individual voluntarily deciding to leave the workforce as they no longer wish to work

84
Q

What are the entitlement issues and transition issues related to retirement?

A

Entitlement:
Employees are entitled to receive any accrued benefits – e.g. annual leave, long-service leave or money for work they have completed
At 65 superannuation can be accessed, also maybe entitled to a pension (dependent on terms of employment)
There is a length of notice that employees must give (dependent on terms of employment)

Transition issues
Support employees with access to financial advice and assistance to help prepare them for retirement
Retirement = major change in persons life – therefore support may be required (e.g. access to counselling or lifestyle planning)
Some employers allow employees to reduce hours in the lead up
Succession planning for the business (particularly if they have an ageing workforce)

85
Q

Define redundancy

A

An involuntary form of termination, where the employer makes the decision to terminate employment b/w that the position is no longer required as the job doesn’t exist and the employees position is terminated (very important this decision is about the position NOT the performance of the employee – if someone is made redundant the organisation CANNOT replace them legally)

86
Q

What are the entitlement issues for redundancy

A

Time off to attend job interviews/look for alternate employment
Notice in writing with reason, period of notice (below), actual date of termination and redundancy pay – Set out in Fair Work Act
Minimum notice period
Redundancy payment (NB this applies for organisations over 15 employees) – set out by National Employment Standards (NES) DOES NOT APPLY TO CASUAL EMPLOYEES
Employees are entitled to receive any accrued benefits – e.g. long-service leave or money for work they have completed
Any other payments that are part of Conditions of Employment

87
Q

What that are transition issues related to redundancy

A

Provide counselling
Provide career counselling
Provide assistance on writing resumes
Provide training to enhance employability (e.g. interview skills)
Outplacement services – use an external organisation that help manage transition of redundancy

88
Q

Define dismissal

A

The involuntary termination of an employee who fails to meet required standards or displays unacceptable or unlawful behaviour

2 types

Summary dismissal

•Immediate dismissal for serious breach of conduct – e.g. theft, harassment, fraud, or breaching safety standards – i.e. illegal behaviour

Due process/on notice

•Is an employer-initiated process of counselling and discipline due to underperformance which may lead either to termination or resolution of the problem.

89
Q

What are entitlement and transition issues related to dismissal?

A

Entitlement:

•Must provide written notice with reason for termination•Must be allowed to have a support person at any meeting that relates to dismissal, must be notified of the reasons for concern before a meeting and be provided an opportunity to respond to reasons given•On Notice Dismissal = 1-5 weeks notice or pay in lieu of notice•Summary dismissal = no notice entitlements•Payment of outstanding wages, long service, annual leave•Apply for unfair dismissal (if employed for six months or 12 months if a small business)

Transition issues

  • Career transition services (likely to only be if a result of on notice)

Unit 3/4 - Business Management (5 decks)

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