Best Practice – Refers to business raciest that are regarded as the best or of the highest standard in the industry. Includes employment security, merit selection in hiring, extensive training and development, sharing information, pay based on performance and self-managed teams. Best Fit – A close relationship between HRS methods and the strategy of the business Resource based view – Focusing on the internal resources of the business and the contribution they make to the competitive advantage of the business. Interdependence with other key business functions HRS and Operations: Most of the employment in your business is in the operations.
HRS contributes to operations through planning staff needs, acquiring employees, training and developing them, supervision and maintenance and conflict resolution. HRS and Marketing: Marketing is heavily involved with new product design and development as well as customer satisfaction. HRS has the role to train and develop employees to successfully bring the product to the customer HRS and Penance: HRS needs to ensure that there are a sufficient amount of employees to complete the favor of the business. Employees need to be paid competitively and receive rewards to be motivated to complete their tasks efficiently and effectively.
Finance is becoming the main source of performance measurement data. Specialist HRS managers should be responsible for: HRS planning and job design Acquisition: recruitment, selection and placement Development: induction, training, development, performance appraisal Maintenance of staff: wellbeing, legal responsibilities, communication Performance management and rewards Separation Managing diversity, EYE, affirmative legal action Outsourcing Human resource functions Outsourcing allows firms to focus on their core business as they grow, while experts assist in HRS by planning for growth, development and management of Taft.
It may also be used to review business practices and implement strategies to transform the business using independent consultants. HRS functions commonly outsource recruitment, induction, leadership training, mediation, outplacement and payroll. Using contractors -? domestic, global A contractor is an external provider of services to a business. It may be an individual or a business. They are used to Create cost savings or to access greater expertise and capabilities to improve competitiveness.
Domestic- Contractors Within the country. They have an expert knowledge Of the HRS function based n their knowledge on how Australian businesses operate. It has simple communication. Global – Contractors that are from overseas. They need to be sensitive to the customs, language and cultural identity of the host country. They will bring new ideas and skills they have developed overseas. Key influences Stakeholders Employers Individuals, companies, governments, and non-profit organizations that seek and employ labor.
These internal stakeholders are vital in providing employment opportunities, determining wages and working conditions. They also have legal responsibilities such as WISH and have a goal of business success. Employees Individuals engaged by employers to perform tasks for a reward. These internal stakeholders work tort the employer to help achieve business success. Employees may want a high wage, good working conditions, job security and a sense of achievement Employer associations e. G.
Australian medical association Employer associations -? organizations that represent and assist employer groups. They are usually respondents to the awards covering the employees of their members, and covering employers in the same or related industry Log of claims – A list of demands made by employees against their employers. Unions e. G. Australian Council Of Trade Unions Trade union – organizations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members.
Government organizations Federal and State governments are involved in employment relations because of their role as an employer (public service), as the manager of the economy and as the developer and administrator of the laws related to employment relations. They oversee the framework. Society Society as a whole has an interest in the outcomes of HRS processes in businesses. Compliance with the legal framework of employment, ethical practices in HRS operations and social responsibility are HRS outcomes in which society is interest in.
Legal – the current legal framework The employment contract An employment contract is a legally binding, formal agreement between employer and employee. The contract includes: Employer obligations – Providing work, payment of income and expenses. Employee obligations -? Obey lawful and reasonable commands made by employers, use care and skill, act in good faith. Minimum employment standards – Basic rates of pay, casual loading, maximum ordinary hours of work, annual/personal/parental leave. Minimum wage rates – Rates can not be below the minimum wage.
Awards – Legally binding documents containing minimum terms and conditions of employment. They include minimum wages, penalty rates, types of employment, flexible work arrangements hours of favor etc. Enterprise agreements – Collective agreements made at a workplace level between an employers and a group of employees about terms and conditions of employment. Other employment contracts – Individual contracts – an employer and an employee negotiate a contract covering pay and conditions. Independent contractor – undertake work for Others but do not have the same legal Status as an employee.
Casual employees – Short term, irregular and uncertain workers that are untitled to paid holiday and sick leave. OCHS and Workers compensation OCHS – covers employees, employers and self-employed workers. 1. Employers must ensure the health, safety and welfare at work of all employees 2. All employers must take out workers compensation insurance 3. Employees must take reasonable care for the health and safety of others etc. Workers compensation – provides a range of benefits to an employee suffering from an injury or disease related to their work.
It is provided to families of injured employees when the injury/disease was cause by, or related to, their work. Anti- discrimination Discrimination occurs when a policy or practice disadvantages a person or group of people because of a personal characteristic that is irrelevant to the performance of the work. Anti-discrimination legislation has been enacted to protect employees from direct and indirect discrimination in recruitment, selection, training, promotion etc. It is illegal to take adverse action based on race, sex, sexual preference, color, age, appearance, disability, pregnancy, martial status etc.
Equal employment opportunity refers to equitable policies and practices in recruitment, selection, training and promotion. Affirmative action refers to measures taken to eliminate direct and indirect discrimination and implement steps to overcome it. Economic The demand for labor is determined by the demand for goods and services. Unions may demand wage increases, leading towards increased costs and inflation. During downturns, the demands for goods and services fall and businesses are forced to downsize. Structural change – refers to a change in the nature and pattern of production of goods and services within an economy.
This includes a significant growth in the level of services in an economy compared to other services. Globalization – refers to the removal of barriers of trade between nations. It has increased the level of international competition, Businesses are prepared to relocate production units in other countries where dispute levels, labor and regulatory costs are lower. This has improved business profitability significantly. Technological Technological change is the major source of reinforcement in productivity, communication and competition between businesses. New jobs are being created and other being made redundant.
Electronic communication allows businesses to operate anywhere, anytime and has increased access to employees at home. Communications technology increased the need for training and new protocols to ensure work-life balance is maintained. Social – changing work patterns, living standard Changing work patterns – growth in part-time and casual work as it offers flexibility. Career flexibility and job mobility is increasing as workers are taking more control over their careers. There has been a rise in female participation in the workplace. Aging of the workforce is likely to see a shortage in skills n the community.
There is a need for a transferal of skills and delayed retirement. Early retirement is becoming more popular today due to eligibility to superannuation or for health reasons. Living standards – Australia has one Of the highest living standards. These standards include OCHS, wage increases, performance bonuses, fringe benefits, and leave and superannuation benefits. Casualties workers have difficulty in purchasing assets like homes and have trouble managing finance. Ethics and corporate social responsibility Ethical business practices – Practices that are socially responsible, morally eight, honorable and fair.
A socially responsible and ethical employer will create a pleasant working environment where employees feel secure. An ethical framework must be developed and may include a: Code of conduct – A statement of acceptable and unacceptable behaviors in a business. Code of ethics – A statement of a firm’s values and principles, Working Conditions – An ethical employer will provide sate and Atari working conditions that improve employee welfare, Provided through a safe and healthy working environment. Code of practice – A statement to the principles used by a business in its operations.
Practices that are seen as ethical and socially responsible, processes of human resource management Acquisition Acquisition is the process of attracting and recruiting the right staff for roles in a It involves analyzing the internal environment (business goals and culture) and external environment (economic conditions, competition, technology, political and social factors). Job analysis and job design are required to meet the needs of new positions. Recruitment- locating and attracting the right quantity and quality Of staff to apply for employment vacancies or anticipated vacancies at the right cost.
Employee selection – gathering information about each applicant and using it to choose the most appropriate applicant. Placement – locating the employee in a position that best utilizes the skills, to meet the business needs. Development Development is the process of developing and improving the skills, abilities and knowledge of staff, through induction, ongoing training and further professional development, It ensures that experienced and talented staff are retained through motivation and commitment to the business (via promotion opportunities).
Induction -A program used to introduce new employees to he job, their co-workers, the business and its culture. Give new employees confidence. Training-? used to seek long term change in employee?s skills, knowledge, attitudes and behavior in order to improve work performance in the business, It allows the business to remain competitive. Organization development – Doffs structures are less hierarchical and more flat. Flatter structures have improved employee efficiency, effectiveness and response to customer needs as they can share and develop solutions to problems. Job enlargement – giving employees additional tasks to increase variety and halogen the employee. ->Job rotation – moving staff from one job to another over a period of time to multi-skill employees ->job enrichment – increasing responsibilities of a staff member ->job sharing – where two people share the same job Mentoring and coaching – where a leader or more experienced staff member provides advice and support to another person developing skills in the area. Performance appraisal – A process analyzing and evaluating employee performance for strengths, weaknesses and opportunities for employment.
It can also be used to assess an employee’s suitability for promotion. Maintenance Maintenance is the process Of managing the needs Of staff for health and safety, industrial relations and legal responsibilities, and compensation and benefits. It focuses on retaining staff and managing their well. Being at work. Communication and workplace culture – Staff well-being is maximizes through encouraging staff to participate in decision making and giving employers some control over their work lives.
Effective workplace relationships depend on business’s communication systems. Poor communication leads to high turnover rates. Employee participation – Helps improve communication, empower employees, and develop their commitment to improving quality and efficiency. Businesses benefit from employee experience and knowledge as they increase competitiveness and success. Benefits – Include: Monetary (financial incentives) -? salary, overtime pay, commission. Non- monetary (non-financial) – flexible work hours, family friendly work arrangements.
Legal compliance and corporate social responsibility – HRS management must ensure policies comply with legislation including anti- discrimination, sex discrimination, OCHS, taxation, social justice and industrial relations. Bullying, harassment and conflict leads to stress, absenteeism, turnover and low productivity. HRS must minimize exposure to risks by implementing strategies. Separation Separating is the process Of employees leaving voluntarily, or through dismissal or retrenchment processes.
Voluntary separation -an employee chooses to leave the business on their own terms. E. G. Resignation, relocation, voluntary redundancy, retirement. Involuntary separation – an employee is forced to leave the business. E. G. Contract expiry, retrenchment, dismissal. Dismissal – Occur due to serious misconduct, poor performance or redundancy due to organizational restructuring. Landfill Dismissal – Occurs when an employee is dismissed by their employer and they believe the action is harsh, unreasonable or unjust.
Strategies in human resource management Leadership style Classical authoritative, autocratic approach – touches on planning, organizing and controlling, It has emphasis on immediate compliance from employees, Works best in a crisis “Do it the way I tell you” E. G. Army Behavioral approach – sees management as leading, motivating and communicating and is most commonly seen in a participative or democratic style. Has an emphasis on group consensus. Contingency approach (Modern day approach) -? Adopting a range of options to suit the organization or environment.
Flexibility is the key. Job design general or specific tasks Job Design – The process of designing the content of a job and how it will interact with other jobs and employees. This aims to motivate and train employees and achieve the business’s goals. Methods include job rotation, enlargement, enrichment and sharing. General tasks -? tasks that require basic skills. Specific tasks – tasks that are broken down into specialist skilled areas in order o improve knowledge and skill, to increase output, to reduce errors and labor costs and to control quality.
Job Analysis – An ongoing process, which is a detailed analysis Of all tasks, responsibilities, personal attributes and reporting relationships needed in a position. Recruitment – internal or external, general or specific skills Diverse workforce – Employees from a Wide range Of cultural and ethnic backgrounds, who are able to speak more than one language, and have the ability to demonstrate cultural awareness and sensitivity. Internal recruitment – Involves filling job vacancies with people from within the business. External recruitment – involves filling job vacancies with people from outside the business.
General skills – Skills that are transferable from one job to another. This allows business’s to shape the job to suit the recruits who can be trained according to the business needs. Key general skills involve flexibility, social confidence, a positive attitude, motivation, willingness to learn and ability to work under pressure. Specific skills -? Skills that are acquired through specialist training at school, TAFT, university which lead to an award to qualification. Businesses target employees with specific skills to fill gaps.
Training and development – current or future skills Training aims to develop skills, knowledge and attitudes that lead to superior work performance. Development is focused on enhancing the skills of the employee to upgrade their skills in line with the changing and future needs of the business. Businesses are worried about shortages of skilled labor and have focused on ongoing training and development. They will need to consider: Recruiting staff for specific skills, retain experts, retain women, in sourcing and further in-house Training and development. Performance management -? developmental or administrative
Performance management is the systematic process Of evaluating and managing employee performance in order to achieve the best outcomes for a business. Feedback from performance management and appraisal provides benefits to the business and individual. Developmental – Focused on using data to develop the individual skills and abilities of employees, so they improve their effectiveness in their roles, overcome weaknesses and are prepared for promotion, Achieved through feedback and shared discussion. Administrative – Provides information, following an annual appraisal, which can be used by management to plan
HRS functions such as training, development, rewards, pay levels, benefits and performance improvement, Focus on collecting data to manage HRS more efficiently. Rewards – monetary, non-monetary, individual or group, performance pay Monetary – Reflected in pay or have financial value Non-monetary – Do not have financial value, but include social activities or retirement planning Intrinsic -? Those that the individual derives from the task or the job itself, a sense to achievement Extrinsic – Rewards that are provided outside the job.
They may be monetary, incentive payments, or Nan-monetary, flexible work hours. Individual or group – Rewards are usually based on individual performance however this can lead to conflict. Gain-sharing plans and group incentive schemes are used to support a team based culture, which increase cooperation and create a better working environment. Performance pay – incentive plans for performance above standards or criteria Global – costs, skills, supply Polytechnic – uses host country staffing with parent country staff in corporate management at its headquarters.
Access to good market knowledge, cost efficient, satisfies local pressure for employment opportunities. It may limit management experience for host-country staff. Geocentric – uses the staff With the most appropriate skill set for a particular role and location, and builds a pool of managers with global experience. It can be complex and expensive due to local employment regulations, relocation and retraining costs. Ethnocentric – uses a parent-country staff in its organization.
May limit the business’s ability to interact and learn with overseas markets, Workplace disputes A dispute is a conflict, disagreement or dissatisfaction between individuals and/or groups. An industrial dispute is a disagreement over an issue or group t issues between an employer and its employees which results in employees ceasing work. Covert -? hidden,’masked Overt – obvious Strikes – Situations where workers withdraw their labor Lockouts – employers close the entrance to a workplace and refuse admission to workers. Pickets – protests that take place outside the workplace, generally associated with a strike.
Unionists stop the delivery of goods and try to stop the entry of non-union labor into the workplace. Resolutions Negotiation – A method of resolving disputes when discussions between the parties result in compromise and a formal or informal agreement. Mediation – The confidential discussion of issues in a non-threatening environment, in the presence Of a neutral third party. Grievance procedures -? Formal procedures, generally written into an award or agreement, that states agreed processes to resolve disputes in the workplace.
Involvement Of courts and tribunals – Courts and tribunals are involved when disputes have passed their nominal expiry date, bargaining has commenced towards a new agreement and when negotiations have failed. Conciliation – A process where a third party (conciliation member is appointed) is involved in helping two other parties reach an agreement. Arbitration – The process where a third party hears both sides of a dispute and makes a legally binding decision to resolve the dispute. Orders – decisions that require employees or employers to carry out a direction from the tribunal.
Common law – This is opened to any parties involved or affected by industrial action. Parties may make direct claims for damages cause by parties taking the action or tort a breach in contract. Benefits and costs – improved relationships and conditions. Effectiveness of human resource management Indicators are performance measures that are used to evaluate organizational or individual effectiveness. Corporate culture Corporate culture refers to the values, ideas, expectations and beliefs shared by members of the business. People are the business’s most valuable asset.
A cooperative and effective workplace culture and positive relationships lead to dedicated, trained and motivated employees. Effective workplace relationships rely heavily on the communications systems. Indicators of a workplace with poor corporate culture are: High staff turnover Poor customer service High levels Of absenteeism Accidents Disputes and internal conflict Benchmarking key variables The purpose Of benchmarking is to compare a business’s performance in specific areas against other similar businesses. The aim is then to make changes to improve business performance.
Informal benchmarking – strategies such as networking through informal discussions with colleagues in other businesses, undertaking visits to other businesses, researching best practice online and attending conferences, Performance benchmarking – comparing the performance levels of a process/activity with other businesses. Best practice benchmarking – comparing performance levels with those of another best reactive business in specific areas using a structured process to gain skills and knowledge. Balanced scorecard benchmarking – used to measure if business activities are meeting objectives established in the strategic plan.
Benchmarks key performance variables with targets in the strategic plan, Human resource audits – used to systematically analyses and evaluate HRS activities and their effectiveness Quantitative measures -? Demonstrate the effect of indicators in economic terms – in terms of cost and profit. E. G. Time costs of injuries Qualitative evaluation – Detailed feedback and research on key issues, which lows judgments on changes in behavior, quality of the service provided. E. G. Increasing absenteeism are indicators Of boredom, poor relationships etc.
Changes in staff turnover Staff turnover refers to the separation Of employees from employers, both voluntary and involuntary. It is important for businesses to benchmark their turnover against Other businesses and to determine the reason Of leaving. Absenteeism Absenteeism refers to employee absences without sick leave or leave approved in advance. High levels indicate dissatisfaction and conflict. It can lead to lower productivity and higher labor costs. Accidents Young males engaged in physical activity are most likely to experience accidents. Women in hospitality and health related services are the most likely to have an accident.
Most common fatalities are with road crashes, while injuries with lifting, pushing and pulling object or being hit. Work-related and deaths cost $60 billion in direct and indirect costs, OCHS indicators Lost tine injury frequency rates, Safe Work Australia rates. Levels to disputation Work bans -? refusal to work overtime, handle products, equipment, work with people, or harm the environment. Work-to-rule – refusal to perform any duties additional to work required, Go slow – working at a slower rate than normal Sabotage – employees taking action to harm or destroy the image of the business.