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RESOURCES
ROLE OF HUMAN RESOURCE MANAGEMENT
Human resource management refers to the management of the total relationship
between an employer and employee in the workplace. It includes functions such
as recruitment, equal opportunity, training, development, separation and how
they can be aligned to the business goals.
HRM is one of the most important business functions as staff costs are often
more than 60 per cent.
Over the next decade, the major challenges for HR management are:
-
HR and operations
The operations function & Human resources department work closely to ensure
that the business has recruited staff with the relevant skills and experience
necessary to produce the product. The human resource department will monitor
OUTSOURCING ***
- HUMAN RESOURCE functions
- USING CONTRACTORS DOMESTIC, GLOBAL
Provides the ability to access staff whose specialty is HRM. These staff
would have a better understanding of issues can advise the firm on the
most appropriate strategy
Allows managers to focus on the core business operations. This means the
firm can focus on production & attending to the needs of its customers
The decision can generate cost savings as this reduces the need to
employ full time staff for Human relations
There is the
chance that the
chosen may lack an
aspects of the
business E.g.
Business Culture
The key relationship
line managers
developed within
the business to
the work on
be handled
provider of services
individual or a
recommended for
staff to focus on
managing a firm.
KEY INFLUENCES
Employers
Are individuals or organisations that pay others to work for their business. They
are often the owners and take responsibility in the organisations goals. They are
vital as they provide employment opportunities and determine wages and
working conditions.
In large businesses:
-
Employees
An individual who provides his or her skills to a business in return for a regular
source of income. This may be full-time, part-time or casual.
They were traditionally just workers, but are now considered in the decision
making process, hence allowing for increased motivation and workplace
efficiency.
Currently, Employees are seeking a greater recognition of the role that leisure
and family have in their lives. Thus employees, with the assistance of trade
unions have encouraged employers to introduce a number of initiatives aimed at
developing family-friendly practices (i.e. provision of childcare centres)
Employer Associations
-
Unions
-
Government Organisations
-
{Fair Work Australia Organisation established under the Fair Work Act 2009
(Cth). Their primary function is to encourage the prevention and settlement of
industrial disputes between employers & employees through a process of
conciliation and arbitration}
Society
Employee
- Look out for employer
interests
- Obey employer
Employer
- Pay employees fairly
and as agreed in the
contract
instructions (must be
reasonable and lawful)
- Perform work with due
care
- Disclose information
they receive that is
relevant to the
employer as well as
access to processes
they invent.
Rights
- To work in an
environment that does
not unreasonably
damage their physical,
emotional or mental
well-being
Statutes are laws passed by parliaments and they take priority over common
law. They are often amended to reflect changing workplace conditions and
government policy. The current statute law that establishes employment
contracts is Fair Work Act 2009 (Cth), which provides a safety net of enforceable
minimum employment terms and conditions though the National Employment
Standards.
Minimum Employment Standards Fair Work Act provides a safety net of
enforceable minimum employment terms and conditions through the National
Employment Standards which sets out ten minimum workplace entitlements
which apply to all employers and employees in the national workplace relations
system. (Do we need to know the 10 Employment Standards?)
Minimum wage rates Applies to employees not covered by awards or
agreements whereby contracts must offer at least the minimum wage for it to be
valid. The Minimum Wage Panel determines the minimum wage at national level
for each industry, reviewing wage rates annually. The panels aim is to establish
and maintain a safety net of fair minimum wages.
Awards are legally binding documents containing minimum terms and
conditions of employment, in addition to any legislated minimum terms for an
industry or occupation. They must contain the minimum employment standards
and differ from industry to industry. Currently 15% of workers are covered by
awards. The process for making an award requires lodgement of a dispute
(paper or real) by a union or employer association, as the Constitution only
allows for dispute settlement at the federal level.
Enterprise Agreements are collective agreements made at a workplace level
between an employer and a group of employees about terms and conditions of
employment. Enterprise agreements are the main way working conditions are
determined in Australia and unions usually negotiate on behalf of employees.
Under the national system employees must be better off under an enterprise
agreement than the relevant award for it to be valid.
Other Employment Contracts:
o
Fixed term contracts - The use of labour for only a specific period
of time. Both parties are in agreement to this time period.
The Occupational Health and Safety Act 2000 (NSW) establishes the
rights and responsibilities of employers in the workplace in regards to
employers and employees.
ECONOMIC
Economic Cycle
Business is the fuel that drives production, price changes, employment and our
standard of living. The level of economic activity in an economy is primarily
determined by the level of consumer and business spending.
Employment is fundamental for all economies. Labour is derived demand (ie.
Derived from the demand for goods and services)
In periods of strong economic growth there is an increased willingness for
employees to spend more of their income on consumer goods. Hence, labour will
be in strong demand and wages should improve, as more goods and services
need to be produced. In a recession, opposite situation would occur.
During periods of wage negotiations, employees will seek higher wages from
employers due to inflation. This leads to increases in the costs of production of
any business. Workers would need to be sacked making staff needing to increase
their workload.
Globalisation
- The integration of the worlds economies into a single market where goods and
services can be traded with ease.
- Due to more competition, workers are retrenched when their services are no
longer needed.
- Employees need to receive their legal entitlements if they are retrenched and
workplaces must be free of discrimination and harassment.
TECHNOLOGICAL
State of technology affects the labour needs of the business (i.e. loss
of employment as technology itself becomes the main tool of
production)
Living Standards
Less educated people, who lack skills and qualifications, may often be employed
in industries with low wage rates. Many of which would be scared to challenge
their employers for fear of losing their jobs.
As living standards rise, workers and the society expects better working
conditions as businesses have most likely profited from rising economic
prosperity (e.g. higher wages, flexible work hours). It may also lead to a shrink in
the size of the labour force in the short term as people return to studying which
in the longer term produces a more skilled workforce.
Staff retention and absenteeism rates improve as staff feel more valued
and motivated.
Business costs (such as recruitment and training) are reduced and
business performance is enhanced.
There are significant marketing and business opportunities best
practice employers enjoy regular publicity in the media, in journals and on
the internet.
o
o
ACQUISITION
The stage in the human resource cycle that involves identifying staffing needs,
recruitment and selection.
In order to examine whether it has the appropriate staff to meet the firms needs,
it needs to:
o
Identify the skills and number of employees required in the future
o Analyse its existing workforce
Identifying staffing needs- If staff cannot cope with changes, more employees
are needed.
o The job needs to be identified and analysed and a job description (a
written statement describing the duties tasks and responsibilities
associated with the job) needs to be created.
o A job specification (Written statement describing the key skills,
experience and qualifications needed for a job) must be made after.
DEVELOPMENT
Training provides employees with the right knowledge and skills to perform their
job effectively and efficiently.
Development refers to activities that prepare staff to take greater responsibility
in the future. Developing staff often involves training.
The aim of training and development is to seek long-term change in employees
skills, knowledge, attitudes and behaviour in order to improve work performance
in the business.
Well-organised and well-presented training and development provides benefits
for both the employee and the employer
By retaining productive and efficient employees who are loyal and display a high
degree of commitment to their work, a business is able to increase its
productivity, achieve high levels of morale, lower the rate of absenteeism and
reduce the costs of staff turnover.
A business can therefore offer a range of monetary and non-monetary benefits
as compensation for their labour.
Compensation refers to the payment or benefits (or both) an employee receives
in exchange for their labour.
The combination of monetary and non-monetary benefits is referred to as the
remuneration package.
-
> The final stage in the employment cycle is the separation stage, in which
employees leave the workplace on a voluntary or involuntary basis. This stage
must be handled carefully and sensitively by the human resource manager.
- Voluntary separation:
Is where the employee decides to leave the business on their own free will and
includes:
O Retirement - The employee has decided to give up full-time or part-time work.
People may retire due to ill health, lack of motivation, or leisure activities.
O Resignation - When an employee leaves their jobs for reasons such as a need
for change in their lives or moving interstate. The employee needs to provide the
employer with notice of the intention to leave.
LEADERSHIP STYLE
Kurt Lewin identified three different styles of leadership, each offering managers
alternatives to the process of interacting with staff.
Autocratic leadership - Managers lead, based on the view that they are
responsible for telling their employees what they want done and how to
accomplish the task. Employees cannot contribute to the decision making
process. Decisions must be made quickly.
General skills are transferable from one job to another. Key general skills
include flexibility, motivation, ability to work as a team/independently, leadership
and ability to work under pressure. General skills are important because many
jobs today require individuals to work independently and undertake many
different tasks. HRM value these skills as they generally indicate the employees
capacity and willingness to learn.
Specific skills are those that need specialist training at a school, TAFE,
university or other accredited educational provider. Most businesses are
concerned about skill shortages and still need to target employees with specific
skills to fill gaps in their business.
Informal training
When an employee is either shown or modelled the correct skills through the use
of a coach or mentor, or learning the work on the job.
-
Benefits
Negatives
Performance Pay
WORKPLACE DISPUTES
o RESOLUTION NEGOTIATION, MEDIATION, GRIEVANCE
PROCEDURES, INVOLVEMENT OF COURTS AND TRIBUNALS
The process of resolving an industrial dispute can be complex & depends on the
willingness of stakeholders to cooperatively work together to reach a settlement.
The interests of employers and employees conflict at many times. Employers will
seek to use the services of labour at the lowest possible cost, while employees
will attempt to gain the best possible income and working conditions.
NEGOTIATION
Conciliation - When the Fair Work of Australia acts as a mediator and offers
suggestions in a dispute to resolve the problem. While all parties must make
every reasonable attempt to reach a settlement, the conditions of the agreement
are not legally binding.
Arbitration - The final stage of the dispute, it Involves a commissioner hearing
the cases put forward by both parties in an industrial dispute and then making a
decision, which is legally binding on both parties. The decision is legally binding
on all parties.
{Involvement of courts and tribunals includes Fair Work Australia (FWA), the
Australian Human Rights Commission & the NSW Industrial Relations
Commission}
INDICATORS
o CORPORATE CULTURE
o BENCHMARKING KEY VARIABLES
o CHANGES IN STAFF TURNOVER
o ABSENTEEISM
o ACCIDENTS
o LEVELS OF DISPUTATION
o WORKER SATISFACTION
Satisfied employees often work more efficiently and value the organisation that
they work for.