unit 3 aos2 human resource management Flashcards
human resource management
the effective management of the formal relationship between the employer and employees
human resource manager
human resource manager coordinates all the activities involved in acquiring, developing, maintaining and terminating employees from a business’s human resources
productivity
a measure of performance that indicates how many inputs (resources) it takes to produce an output (goods or services)
outline the relationship between human resource management and business objectives
HRM ensures employees are working productively and are motivated to contribute to achieving the business’s goals. For example, if a business wants to grow its sales, HRM can help by ensuring employees are well-supported and have the skills needed to perform their roles effectively.
What is HR’s main focus?
on positive work and employment relationships should lead to a motivated staff, increased productivity and consequently the achievement of business objectives
motivation
the individual, internal process that directs, energises and sustains a person’s behaviour
extrinsic motivation
comes from external factors associated with working on a task, outside of the individual. pay and/or fear of punishment
intrinsic motivation
comes from the satisfaction derived from working on and completing the task. within the individual. includes sense of achievement, pride, personal challenge and emotional fulfillment.
maslow’s hierarchy of needs
a motivational theory that suggests people have five fundamental needs, and their sequential attainment of each need acts as a source of motivation.
maslow’s 5 hierarchy of needs (in order)
physiological, safety, social, self-esteem, self-actualisation
physiological needs + how to achieve
include food, water, warmth. to achieve you must have adequate pay to meet survival needs
safety needs + how to achieve
security and safety. to achieve you must have training, long term contracts (job security), OH&S, superannuation, fair management
social needs + how to achieve
intimate relationships & friends. to achieve you must have teamwork, social activities, involvement in decision making, feeling part of a group.
self-esteem needs + how to achieve
prestige and feeling of accomplishment. to achieve you must have recognition + reward, responsibility, empowerment and promotion
self-actualisation needs + how to achieve
achieving one’s full potential. to achieve you must get opportunities to advance your career and personal growth.
2 advantages of maslow’s hierarchy of needs
Allows management to be aware that employees will be at different stages of development and that they will need to be motivated using a variety of methods, the theory is fairly easy to understand and less time consuming to understand and implement.
2 disadvantages of maslow’s hierarchy of needs
Maslow’s Hierarchy of Needs is only a theory - it is not supported by empirical evidence and the stages in the hierarchy do not apply to everyone, A manager making use of the theory may struggle to identify the stage at which each individual employee is - this may make it difficult to determine an appropriate strategy to motivate each employee
goal setting theory
is a motivation theory that states that employees are motivated by clearly defined goals that fulfil five key principles
5 principles of the goal setting theory
clarity, commitment, challenge, task complexity, feedback
commitment
the goal should be set in collaboration with the employee
clarity
set a goal that is clear and specific
challenge
the goal should be difficult, but not overwhelming and impossible to achieve
feedback
manager gives ongoing constructive feedback to employee to ensure they are on the right path to achieve their goal
2 advantages of locke and latham goal setting
- Setting goals that are clear and specific, challenging, will motivate employees and improve their performance, thereby contributing to business objectives
- Better relationships between management and employees will occur as managers work with each employee to collaboratively set goals and provide feedback.
2 disadvantages of locke and latham goal setting
Assumes ALL employees will be motivated by goals and it does not look at the individual motivational needs of each employee, Time consuming for HR to hold meetings to negotiate goals and give regular feedback and support
Lawrence and Nohria’s Four Drive Theory
a motivational theory that suggests that people strive to balance four fundamental desires.
what are the 4 drives?
drive to acquire, bond, learn, defend.
what is the drive to acquire?
To own material goods, and the desire for status, power or influence. it is active
2 HR strategies to achieve drive to acquire
Providing promotions and career advancement. Recognising and rewarding good performance (performance related pay such as bonuses)
what is the drive to bond?
Strong need to form relationships with individuals and groups. it is active
2 HR strategies to achieve the drive to bond.
Organise social gatherings. Create opportunities to work in teams/ to encourage teamwork and collaboration
what is the drive to learn
To satisfy our curiosity, to learn new skills and to explore the world around us. it is active
2 HR strategies to achieve the drive to learn
Training opportunities, to learn new skills on a regular and ongoing basis.
Job design/job rotation: making tasks interesting and ensuring a variety of tasks to prevent boredom from constant repetition.
what is the drive to defend
To remove threats to our safety and security and to protect what we regard as ‘ours’. it is latent.
2 HR strategies to prevent the drive to defend.
Induction program to provide employees with a welcoming and supportive environment
Ongoing contracts to provide employees with ongoing security.
2 advantages of the four drive theory
- The four drives do not need to be met in a specific order or hierarchy so their application can be more flexible
- Offers a more individualised approach by attempting to specifically target each employees drive factors
2 disadvantages of the four drive theory
- Very time consuming to identify employee drives especially if drives are constantly changing for individuals
- If the HR manager offers motivation strategies that relate strongly to a single drive area, some employees will not be motivated
3 similarities between the 3 theories
- Each aim to direct and energise employees towards the achievement of organisational goals.
- Each motivational theory has been developed by experts who have studied the motivation of employees and believe that strategies are needed in order for motivation to occur, rather than trusting that employees are self-motivated.
- Each of the motivation theories adds a significant workload to the HRM and assumes that the HRM has the skills and understanding to implement each theory ( Eg Maslow’s = understanding employee’s individual needs, L&L ability to communicate and negotiate goals effectively, L&N = ability to understand the drives of employees)
differences with pay between the 3 theories
maslow says that pay is a motivator but only in the short term.
locke and latham says that pay is not a motivator because all motivation comes from the setting of challenging and difficult goals.
four drive states that pay is a motivator, but will only motivate those workers whose dominant drive is acquire
differences with goals between the 3 theories
Maslow says that the way to motivate employees is to meet their lower and higher order needs
Locke and Latham says that goal setting in critical to the motivation of employees and that once difficult and challenging goals are set, the employee will be motivated
Four Drive theory states that the achievement of goals would be motivating for employees with a strong drive to acquire due to the recognition of the achievement of the goal as well as the drive to learn as achieving difficult and complex goals will encourage skill development
differences with training between the 3 theories
Maslow says that training employees would meet self actualisation needs which will provide long term motivation and opportunities for growth and development.
Locke and Latham says that training could be used to assist and support an employee in achieving goals or might be used if a goal was at risk of not being achieved.
Four Drive theory states that training would satisfy those workers whose drive relates to the drive to comprehend but would not necessarily motivate employees who do not value this drive area.
what are the 5 motivation strategies? SCIPS
Sanctions, Career advancement, investment in training, performance related pay, support
sanction strategies
involve penalising employees for poor performance or breaching business policies.
2 advantages of sanction strategies
Can motivate employees immediately as they will improve performance quickly to avoid punishment, does not incur any immediate cost to implement.
2 disadvantages of sanction strategies
Prolonged use can lead to increased staff turnover, Replacing employees who have left due to excessive penalties can be time consuming & expensive
sanction’s effect on short term motivation (positive and negative)
- Employees may be motivated to quickly follow instructions in order to avoid punishment.
- Employees may become resentful of their managers if they utilise threats and punishments, potentially leading to resignations and decreases in productivity.
sanction’s effect on long term motivation (negative only)
- The use of sanctions can contribute to a negative workplace environment, decreasing employee satisfaction and motivation.
career advancement as a motivation strategy
Career advancement is the upwards progression of an employee’s job position. This can be achieved through promoting employees or giving them more challenging tasks.
2 advantages of career advancement
Promoting employees from within the business can be cheaper than recruiting new employees, Promoting employees from within the business helps retain high-performing employees as they will feel valued
2 disadvantages of career advancement
Limited senior positions can prevent career advancement from being used for a large number of employees, Some employees may be promoted beyond their capabilities which may negatively impact business performance.
career advancement’s effect on short term motivation (positive and negative)
- Employees may be rapidly motivated if they are taking on more responsibility in the workplace.
- Employees may become resentful and demotivated if they believe they were not considered for a promotion.
career advancement’s effect on long term motivation (positive and negative)
- Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities.
- There may be a limited number of responsibilities an employee can absorb into their role within a business; therefore, there are fewer career advancement opportunities
investment in training as a motivation strategy
Investment in training is allocating resources to improve employee skills and knowledge. It can motivate them by providing opportunities to develop their abilities through their work
3 advantages of investing in training
Employees can complete tasks more efficiently and effectively after improving their skill set.
Employees may feel more valued as the business wants to advance their skills.
The skills and knowledge gained from training may assist employees to complete tasks quicker
2 disadvantages of investing in training
time consuming to train employees and will take them away from performing their work duties that could be urgent, costly
investment in training’s effect on short term motivation (positive and negative)
- Employees may be motivated in the short term by the opportunity to learn new skills.
- Taking time off work to participate in training programs may cause employees to lose momentum and consequently lack motivation.
investment in training’s effect on long term motivation (positive and negative)
- Employees may be constantly motivated as they feel valued by the business when they are provided with opportunities to develop their skills.
- Employees may become demotivated by the consistent workflow interruptions caused by training programs.
performance related pay
is a financial reward that employees receive for reaching or exceeding a set business goal.
performance related pay’s effect on short term motivation (positive and negative)
- Employees may be motivated to improve performance quickly in order to gain financial rewards.
- Employees may be demotivated if they are competing against their colleagues for financial rewards.
performance related pay’s effect on long term motivation (positive and negative)
*When there is a history of reward and recognition for high-performing employees within the business, employees are more likely to be motivated by the expectation that they will receive rewards in the future.
* Employees may become demotivated if they continually have to compete with their peers to achieve financial rewards.
2 advantages of performance related pay
Employees can be motivated quickly through the incentive of financial rewards.
Employees can personally gain from achieving objectives through the tangible reward of increasing their wealth.
2 disadvantages of performance related pay
A business may not be able to afford performance-related pay, May create conflict if incentives or rewards are unequal between employees
support as a motivation strategy (+2 examples)
involve providing employees with any assistance that improves their satisfaction at work. includes praising good performance and accomodating personal obligations (being a carer)
2 advantages of support as a motivation strategy
Employees may feel more valued by managers and are less likely to leave.
Implementation involves very few additional expenses.
2 disadvantages of support as a motivation strategy
may be ineffective if a manager does not have good interpersonal skills, it can be time consuming for a manager to maintain relationships with staff
support strategies’s effect on short term motivation (positive only)
Employees may be motivated by working in a business where their wellbeing is considered and valued.
support strategies’s effect on long term motivation (positive only)
- Employees may be motivated for a long period of time when they feel valued by management and are able to resolve issues efficiently.
what are 2 short term motivation strategies
performance related pay and sanctions
what are 3 long term motivation strategies
career advancement, investment in training, support
on the job training
occurs when employees learn a specific set of skills to perform particular tasks within the workplace. This training usually occurs in the working environment, and uses the equipment, machinery and documents that are present in that workplace.
2 advantages of on the job training
Employees can quickly become familiar with work equipment, performing their role more efficiently.
Training employees internally is often less expensive than performing training externally
2 disadvantages of on the job training
Employees may learn bad habits from being trained by existing staff.
Senior staff who are responsible for training new employees are taken away from their own work duties, meaning they cannot focus on their other work responsibilities.
off the job training
involves employees improving their knowledge and skills in a location external to the business.
2 advantages of off the job training
An employee’s employability may improve if they receive qualifications or accreditations
Errors made by employees during training do not occur on site, decreasing expenses associated with waste.
2 disadvantages of off the job training
Employees may struggle to apply new knowledge in the workplace if it is only information-based.
Paying external organisations to train employees may be expensive.
performance management
the process used to evaluate and improve both individual and business performance
4 performance management strategies
self evaluation, appraisals, mangement by objectives, employee observation
management by objectives
involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives.
2 advantages of management by objectives
Aligning employee objectives with the business’s overall objectives means that employees are always working towards business goals, leading to improvements in business performance.
Collaboration between managers and employees when setting objectives can foster positive workplace relationships
2 disadvantages of management by objectives
A failure to meet objectives could become demoralising for some employees, resulting in a lack of motivation.
Can be time consuming meetings and reports required can add to the responsibilities and burden of both management and employees.
performance appraisals
involve a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for future improvements.
2 advantages of performance appraisals
Communication between managers and employees during one-on-one reviews can improve workplace relationships.
Information regarding extremely poor performance can be provided to managers to determine if any staff should be dismissed due to sub-standard work ethic
2 disadvantages of performance appraisals
Employees may lose motivation if they receive multiple poor performance appraisals.
This process can be time consuming as managers individually review each employee’s performance.
self evaluation
involves an employee assessing their individual performance against a set of criteria.
2 advantages of self evaluation
The employer can gain insight into an employee’s understanding of their own strengths and weaknesses and assign work accordingly.
Employees may be empowered to improve performance, as they are directly involved in their own performance management
2 disadvantages of self evaluation
If an employee is biased or dishonest in assessing their performance, a manager will not gain reliable information.
Training courses provided to address employee weaknesses can increase business expenses.
employee observation
involves a range of employees from different levels of authority assessing another employee’s performance against a set of criteria.
2 advantages of employee observation
Where an employee is unaware they are being observed, this allows for an accurate analysis of an employee’s performance.
Employees that are observing others may identify the strengths of other employees and then mimic this behaviour.
2 disadvantages of employee observation
Results may be misleading if employees are aware they are being evaluated, as they may only work harder in the presence of an observer.
Employees may feel stressed if they are made aware that they are being observed, leading to poorer performance.
termination phase
phase refers to the formal ending of the relationship between the employer and employee. There are two categories of termination – voluntary and involuntary.
3 voluntary termination
resignation, retirement, redundancy
2 involuntary terminations
redundancy and dismissal
retirement
involves an individual deciding to leave the workforce permanently as they no longer wish to work.
redundancy
involves an employee no longer working for a business because there is insufficient work or their job no longer exists.
resignation
involves an employee voluntarily terminating their own employment, usually to take another job position elsewhere.
dismissal
involves the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behaviour.
entitlement considerations
are legal obligations an employer owes to its employees following the termination of their employment contract.
4 entitlement considerations
annual or long service leave, redundancy pay, notice of termination, justifiabile reasons for employment termination
transition considerations
are social and ethical practices that a manager can consider implementing when terminating employment.
6 transition considerations
- offering interview training to employees to improve their employability.
- providing contacts so that they can use to gain future employment.
- providing flexible working hours that allow employees to attend job interviews.
- giving counselling and financial services to ease the uncertainty of leaving the business.
- holding celebrations and providing recognition of the achievements of employees who are leaving the business.
- slowly reducing the working hours of retiring employees to help them a djust to a change in their lifestyle.
workplace relations
the relationship between employees/their representatives and employers/their representatives, in terms of the establishment of conditions of work (otherwise known as workplace/employment/enterprise agreements) and issues surrounding these conditions
why are positive workplace relations important?
Good morale and motivation levels; Reduced conflict; High productivity and competitiveness.
2 internal participants in the workplace
employees, HR Manager
3 external participants in the workplace
unions, employer associations, fair work commission
HRM’s interest/role in workplace relations
The HRM aims to provide effective pay, conditions and dispute resolution systems using awards or effectively negotiate employment agreements with employees and/or their representatives
what are the five roles of HRM
negotiate agreements, implement agreements, dispute resolution, disciplinary action, termination
- negotiating agreements
the relevant managers need to be aware of all legal issues, Awards and National Employment Standards, so that any negotiated agreement satisfies all of these requirements.
- implement the agreement
The HRM must lodge the enterprise agreement with the Fair Work Commission. All aspects of the agreement need to be put into place in the business (e.g. wages, hours of work, leave entitlements and flexible work conditions) by the starting date
- dispute resolution
Any disputes (disagreements) that arise involving the enterprise agreement need to be managed by the HR manager. HRM represents the business
- disciplinary action
verbal or written warning against an employee can occur due to:
- Not following policies and procedures
- Breaching the code of conduct
- Not doing the work set out in their employee contract
employee’s role/interest in workplace relations
Employees want to maximise their pay and entitlements within a safe working environment whilst enjoying job security and opportunities for skill development.
employee’s role/interest in dispute resolution
They will usually be the complainant, raising issues in relation to pay/entitlements/safety within the workplace and will want the dispute resolved quickly and in their favour.
employer associations
groups of employers who unite to provide a range of advice to employers and represent their interests on employee relations issues.
employer associations’ interest/role in workplace relations
Represent the employer in the achievement of business objectives by advising and supporting the rights of the employer in relation to disputes over pay and conditions for a workplace.
employer associations’ interest/role in dispute resolution
To represent and advise employers of their legal rights and obligations in relation to workplace disputes
unions
an organisation formed to represent and protect the rights of workers in relation to their pay and conditions in a particular industry.
union’s interest/role in workplace relations:
Unions aim to protect workers rights to fair pay and generous/safe working conditions and represent workers collectively by negotiating with management on behalf of their members.
union’s role in dispute resolution
Unions will represent a worker or groups of workers when a dispute arises and will advise employees about their rights in relation to the law. Unions will want disputes to be resolved quickly and in favour of the employees they represent.
fair work commission
exists to ensure that the rights and responsibilities of employers and employees is enforced and has the power to make legally binding decisions and orders relating to workplace relations.
fair work commission’s interest/role in workplace relations
To establish wages and conditions for Australian workers and implement and enforce fair laws that enable businesses and employees to contribute to the economy.
fair work commission’s interest/role in dispute resolution process
To act as an independent umpire (court) and advise or make orders to resolve workplace disputes through mediation or arbitration.
awards
legally binding minimum requirement for wages and conditions applying to specific industry. It is reviewed by Fair Work Commission every four years.
2 advantages of awards
Cost effective for the business as they are offering the minimum wages and conditions allowed for their industry, Fewer disputes over wages and conditions as they cannot be negotiated
2 disadvantages of awards
Business many find it difficult to attract talented employees as they are only offering the industry minimum, Awards provide less flexibility as the business cannot alter terms in the award to suit their needs
enterprise agreements
are legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of businesses. made between the employee and employer during enterprise bargaining.
2 advantages of enterprise agreements
Ability to attract high quality employees by offering competitive wages and conditions of work, Agreement can be negotiated, leading to potential productivity gains being rewarded with higher wages
2 disadvantages of enterprise agreements
Time consuming to negotiate the agreement, Increased cost to the business due to providing increased wages and/or improved working conditions.
mediation
A dispute resolution method where an independent third party will aim to facilitate the conversation between the two disputing parties
2 advantages of mediation
The disputing parties to come to a resolution themselves, making it more likely that both parties will be happy with the outcome, Relationship can be maintained as the disputing parties work together on a solution
2 disadvantages of mediation
There is no guarantee that a resolution will be achieved which means that the dispute can be ongoing, Decisions is not legally binding
arbitration
A dispute resolution method where the disputing parties present their arguments and an independent third party makes a legally binding decision on the outcome
2 advantages of arbitration
There is guarantee outcome to the dispute, The outcome is legally binding ensuring that neither party can change their mind
2 disadvantages of arbitration
Often more expensive than mediation, The decision is taken away from the disputing parties resulting in one or more parties being unhappy with the outcome
