Unit 3 AOS 2 Flashcards
Role of human resource manager
Coordinates all the activities involved in acquiring, developing, maintaining and terminating employees from an organisation’s human resources.
Business objectives
The stated, measurable targets of how to achieve business goals
Human resource management
The management of a wide range of responsibilities relating to
the human (employees) function within a business in order to increase the efficiency of both employees and the business
Business strategy
The long term plan of action adopted by a business to achieve its goals and objectives
Management by objectives (MBO)
A process of setting goals, using the SMART principle, that relate to an employee’s key areas of responsibility. It creates a sense of direction and provides a measure for assessing the work performance of the employee.
Productivity
The ratio of the output of goods and services to the inputs used to achieve that output
Employee engagement
The commitment that employees feel towards a business based on identifying with its values, vision and objectives and the way the business operates
Motivation
The willingness of a person to expend energy and effort in doing a job or task
Hierarchy of needs (Maslow)
An employee’s level of need in one level of the hierarchy must be substantially satisfied before moving up to the next level, which is then activated as a motivator. Once that level of need is satisfied, it is no longer effective in motivating an employee’s behaviour
5 levels in hierarchy of needs
1-physiological needs
2-safety needs
3-social needs
4-self-esteem needs
5-self-actualisation
Physiological needs
Basic needs like food, water, air, shelter and other physical requirements.
When managing employees involves providing the employee with the job and payment for the job (wages, salary)
Safety needs
Security and protection from physical and emotional harm. When managing employees creating job security, safe and healthy work conditions, super and insurance, competent and fair management
Social needs
Love, belonging, affection, affiliation, acceptance and friendship in peer groups. Involves having friendly work associates, team-based activities and identifying with the culture of the business.
Self-esteem needs
The feeling of satisfaction that someone has in themselves or their own abilities. External needs of status-recognition and attention, internal needs of self respect, autonomy and achievement.
Involves job title, merit rewards and promotion
Self-actualisation needs
Ultimate need: personal growth, achieving own potential, self- fulfilment and using own creative talent. Involves challenging work allowing for creativity, participative decision making and opportunities for advancement.
Goal setting theory (Locke and Latham)
A theory of motivation that focuses on the process of setting and attaining goals
Five goal setting principles
-Set clear goals
-Set challenging (but achievable goals)
-Secure commitment to goals
-Provide feedback
-Complexity of task
SMART
Specific
Measurable
Achievable
Relevant
Time-bound
Four drive model of employee motivation (Lawrence & Nohria)
A holistic approach of looking at employee motivation beyond the typical ‘pay’ model that is prevalent in the corporate world today
Drive to acquire
Will be activated when there is something on offer that the individual has something to acquire for themselves
Drive to bond
Will be activated whenever an individual has an opportunity to form, maintain or experience positive, meaningful relationships.
Drive to comprehend
A person will be motivated when they have a chance to improve themselves and fulfil their potential
Drive to defend
Will be activated any time there are consequences involving lost opportunities, or revocation of property, responsibilities, public regard, money etc.
Differences between all three theories
-Goal setting theory is about setting goals whereas none of the other theories are
-Maslow presents his motivators in a hierarchy whereas none of the other theories do
-All written at different times
When were each of the theories written
Maslow’s theory- 1943
Locke and Lathams- 1990
Lawrence Nohria’s theory- 2002
Similarities for all three theories
-One similarity is they are all theories of motivation all three theories are referring to how humans can be motivated
-A similarity is all three theories describe the opportunity to be challenged as a source of motivation
Hierarchy vs goal setting similarity
Locke and Latham state that goals should be challenging, which is similar to Maslow’s step of self-actualisation which involves challenging work
Hierarchy vs goal setting differences
-Locke and Lathams provide a goals-based theory whereas Maslow provides a needs-based theory
-Locke and Latham argue that every employee will be motivated towards achieving goals, whereas according to Maslow, each employee will be motivated differently depending on where they currently sit in the hierarchy
Four drive vs goal setting similarities
-Setting goals to motivate an employee can be seen as similar to the drive to comprehend that is present in the four drive theory
-Both Locke and Nohria argue that the same aspects will motivate all employees
Four drive vs goal setting differences
-Locke and Latham present a goals-based theory, whereas Lawrence and Nohria present a needs-based theory
-Locke and Latham argue that goal setting will motivate every employee in a similar way, whereas Lawrence and Nohria argue that each drive will be present to a different level in each individual employee
Hierarchy vs four drive similarities
-Both of the theories are needs-based
-Both Maslow and Lawrence and Norris discuss the need to have relationships with coworkers for motivation
Hierarchy vs four drive differences
-Maslow states each employee will move up levels in a hierarchy of needs, whereas Lawrence and Nohria argue that each employee must have all four drives stimulated at the same time for motivation to occur
-Lawrence and Nohria argue that you can always use all four drives to motivate employees, whereas Maslow says that once a level of the hierarchy is achieved, it will no longer work to motivate employees.
Performance related pay
A financial reward to employees whose work has reached or exceeded a set standard. Can be recognised and rewarded as sales commission, profit sharing, employees being allocated shares, bonuses.
Features of performance related schemes
-Undertaken annually
-Performance reviewed against set standards
-Employes categorised at the end of review to determine the reward
-Usually involves a cash bonus/increased salary
Advantages of performance related pay
Tangible way of recognising achievement
Can improve productivity levels
Rewards best performance
Disadvantages of performance related pay
Reduces equality in employees pay
Generates a ‘performer’ culture
Short term focus (quantifiable goals)
Renumeration
The amount a person is paid for performing work tasks. It can take the form of cash / fringe benefits. Referred to as a wage / salary
Salary
An agreed amount of money paid to employees for their labour during a year, expressed as an amount per annum
Wage
The monetary reward for labour, paid on a weekly basis, calculated by multiplying the hourly rate by the number of hours worked
Promotion
An employee is moved up to a higher level position within the business
Career advancement
Promoting employees to positions that include more responsibility
Motivates by fostering a desire for increased renumeration, providing job experience and ambition and status
Career advancement advantages
Acts as a reward to employees for their past performance
Helps the business to retain it’s talented employees
Retains intellectual property and continuity of knowledge
Career advancement disadvantages
Potential to de-motivate employees overlooked for promotion
Employees can be promoted beyond their capability level
Creates feelings of unrest if the promotion was not carried out in a fair manner
Investement in training
Employees gain skill and job knowledge through training and job experience, can foster a greater sense of loyalty, can be a short term or long term motivator
Investment in training advantages
Demonstrates that the business wants to advance the careers of their employees
Creates a sense of loyalty and attachment to the business
Creates a positive corporate culture
Investment in training disadvantages
If employees are in wrong jobs it won’t act to motivate them
Can be expensive if business has inefficient systems and non-performing equipment
May highlight areas in which the business is lacking
Support strategies
Involves recognising employees as people and communicating effectively. Means that problems can be identified early and addressed before they escalate.
Support strategies advantages
Employees who feel supported are more likely to work diligently
Support doesn’t cost the business money
Can act as a long-term motivator
Support strategies disadvantages
Requires a positive corporate culture at the business
Relies on manager exercising good communication skills
Sanctions strategies
A strategy for poor performing employees who fail to respond to other motivations. Includes penalties, disciplinary action and termination of employment. Must be tied with positive strategies to help employees improve
Sanctions strategies advantages
Can act as a short term motivator by scaring employees into compliance
Fear created by sanction may bring underperforming employees into line
Sanctions strategies disadvantages
Won’t work for long-term as fear wears off
Can cause resentment as loss of productivity
Training
The process of providing employees with the skills and/or knowledge required to do a particular job
On the job training
Practical training that takes place within the workplace, and while conducting the tasks required for the position
Off the job training
Theoretical or practical training that takes place away from the workplace and is generally administered by an expert or specialist.
List the five on the job training methods
-Coaching/tutoring
-Role modelling
-Apprenticeship
-Participation in a planned work activity
-Job rotation
Advantages of on the job training methods
-Employees can be trained on specific tools an equipment they will use in their role
-Tailored to the specific needs of the business
-Cost effective (not paying for outside course providers)
Disadvantages of on the job training methods
-May be sub standard if the coach is not trained on how to act in the specific role
-May not be adequately planned and too disjoined it’s delivery
-Mentor/coach may try to cram too much info into one training session which can be counterproductive
List the four off the job training methods
-Information presentation style
-Information processing style
-Simulations
-Role plays
Information presentation style
Lectures held for a large number of attendees with little opportunity for interaction. Material is presented in written and visual format.
Information processing style
Specialists from inside and outside the business are involved in conference and discussion groups. Greater interaction takes place and trainee’s input is sought.
Simulations
Visual games and case studies are used to model real life situations.
Advantages of off the job training methods
-Wide range of skills taught/learned
-Learning from specialists and experts
-Provides opportunity for networking with other businesses and peer groups
Disadvantages of off the job training methods
-More expensive if paying course fees, transport, accomodation
-Lost working time and potential input from employees
-Employees with new skills/qualifications may leave the business to gain a job elsewhere, possibly for higher pay
Performance management
The system used to improve organisational, functional
and individual performance through linking the objectives of each; it assesses all phases of the employment cycle
Performance mamagement strategies
Management by objectives
Appraisals
Self-evaluation
Employee observation
Management by objectives
A form of performance management that relies on goal setting, including SMART goals. Also requires ‘goal congruence.’
Goal congruence
The link between individual and organisational objectives
MBO process
- Define organisational objectives
- Define employee’s objectives
- Continuous monitoring of performance and progress
- Performance evaluation
- Providing feedback
- Performance appraisal
Performance appraisal
A process that measures how well an employee has performed their job, provides feedback to employees
and establishes plans to improve performance
What does performance appraisal show
- tells the business whether its staff selection devices have been effective
- gauges whether current training and development programs have been effective
- shows where training, development and motivational programs are required
- provides the basis for decisions relating to remuneration and reward, promotion
and dismissal.
Self evaluation
Where an employee self- assesses both their performance related to their predetermined objectives and their contribution to their business team or unit
Employee observation
360 degree multi source feedback process. Can overcome bias, tension or clash of personalities, collected on a regular basis
360 degree multi source feedback
Feedback provided to employees from each group of people they work with, including other managers, colleagues, subordinates and often customers
Voluntary termination methods
Resignation: when an employee leaves the workplace, usually to go to another job
Retirement: where an employee decides to leave the paid workforce
Involuntary termination methods
Redundancy: when there is no longer sufficient work for the employee to perform
Dismissal: termination of an employment contract due to incompetence or indiscipline
Retrenchment
Occurs to an employee whose employment is terminated by reason of his or her job becoming redundant
Periods of service –> period of notice
Less than 1 year: 1 week notice
1-3 years: 2 weeks
3-5 years: 3 weeks
5+ years: 4 weeks
Entitlements for employees when terminated
Pay/salary still owing
Pay-out for accrued annual leave
Pay-out for long service leave entitlements
Redundancy payments
Fair work commission
Australia’s national workplace relations tribunal. Its role is to assist employees and employers
to maintain fair and productive workplaces.
Transition considerations
-Helping retiring employees with finances (superannuation, pension, investments) and guidance on transitioning into retirement
-Outplacement services for retrenched employees
Outplacement services
Specialised assistance given to retrenched employees to assist them to find jobs with other businesses
Workplace relations
The relationship between employers and employees in determining wages, conditions and methods of resolving disputes should they arise
Potential causes of disputes between employees and employers
(viewpoints of how profits are generated)
Employers: wish to promote business growth seek capital reinvestment in the business and payment of dividends to shareholders
Employees: seek better pay and working conditions.
Trade union
An organisation formed to represent and protect the rights of workers in
a particular industry
Shop steward
An employee at a workplace elected by local union members to represent members
The Australian Council of Trade Unions (ACTU)
formed in 1927, is the national peak body of the Australian union movement. The ACTU also represents the union movement in dealings
with governments and at Fair Work Commission (FWC) hearings.
The Victorian Trades Hall Council (VTHC)
Is responsible for implementing ACTU policy within Victoria. The Victorian branch of each union elects representatives to attend monthly VTHC meetings.
Employer association
A body of employers that promotes the economic and social interests of its members by providing advice to employers and representing their interests
in employee relations issues
Three types of employee associations
Industry associations
Professional associations
Broad based/peak bodies
Better off overall test (BOOT) test
A test used by
the Fair Work Commission to assess registered agreements and see if employees are better off compared to the relevant award
National employment standards
The Fair Work Act 2009 sets out 11 minimum employment entitlements called the National Employment Standards (NES), which all employees are legally entitled to, with casual employees having reduced entitlements. Employees cannot have conditions lower than the NES or national minimum wage, and casual workers can request a more permanent arrangement after 12 months with the same employer.
11 National employment standards
- Maximum weekly hours
- Requests for flexible working arrangements
- Offers and requests in becoming a permanent employee
- Parental leave
- Annual leave
6.Personal/carers.compassionate/family & domestic violence leave - Community service leave
- Long service leave
- Public holidays
- Notice of termination and redundancy pay
- Fair Work Information Statement (FWIS) and Casual Employment Information Statement (CEIS)
Industry
All the businesses in a particular field
Award
Outlines minimum pay raises and conditions of work for an entire Australian industry
Enterprise agreement
Results from negotiations between an employer and union (employees) and is registered (ratified) by
the Fair Work Commission, setting out the terms and conditions of employment at a workplace
Individual employment contract
An individual employment contract outlines the employee’s rights, responsibilities, wages, and conditions, including details on their position, hours, benefits, and dispute resolution. The contract must meet or exceed the minimum standards set by the National Employment Standards or relevant awards/agreements and is typically used for high-skill positions, often including clauses to protect the business.
Dispute resolution procedure
a formal process that enables employees to complain about matters that affect them and their work
Negotiation
where the matter is settled within the business
Mediation
where an independent third party
is required
to support discussions
Conciliation
where a third- party (conciliator) facilitates agreement between management and employees in relation to a dispute
Arbitration
a method of industrial dispute resolution where an independent third party listens to both sides in the dispute, then makes a decision based on these arguments that is legally binding on both parties
Forms of industrial action
Passive resistance
Work to rule
Boycott
Stop-work meeting
Picket line
Strike
Lock-out
