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Unit 4

Topic 1A
Chapter 4 The Human Resources Management Function Factors Involved

What is Human Resource Management?


Simple Definition Human Resource Management is the management of human
relationships in the workplace.
Complex Definition Human Resource Management is a series of activities focused
on obtaining, training and maintaining an effective workforce that is capable of
achieving an organisations goals and objectives.
Humans are the most critical input!
HMR Historical Role
In the olden days
Personnel Functions
- Payroll
- Annual Leave
- Recruitment Procedures
Middle Management

Ceo
Marketin
g
Director

Financial
Control

Operatio
ns

Personnel
Contemporary HMR
HMR is a strategic role. The HR Manager reports directly to the CEO and works
closely with other upper level managers
Senior Management

CEO
Financial
Controlle
r

Marketin
g
Director

Operatio
ns

HRM

HMR is High profile? Why?


1. Investment
2. Competitive Advantage
3. Legal Compliance
Investment in Human Capital
HR processes are expensive and are now seen as an investment in human capital.
Expensive investments must be managed with expertise.
Managing humans well improves profits.

It Makes Cents
People Service Profits Philosophy

Achieve
Organisation
al Goals

Invest in
Humans

Employee
Expertise

Why Train Staff


What if we train them and they leave?
What if we dont rain them and they stay?
Competitive Advantage
Training & development can give a competitive advantage over rival
organisations.
Good HR management improves organisational stability and therefore its long term
service.
Legal Compliance
Policies and procedures must comply with laws relating to employment & employee
relations.
Example:
1. Equal Employment Opportunity
2. Affirmative Action
3. Anti Discrimination Laws
4. Occupational Health & Safety Laws

Employee Expectations
Thing people want in the workplace:
- Safe Work Environment OH&S
- Job Security
- Flexible work conditions
Employee expectations are thing employees require their employers to do or
provide during their employment.
These include:
1. Honesty & fairness
2. Safety
3. Training
4. Correct payment, etc.
Changing Expectations
Todays workforce
1. More educated
2. Want to be challenged
3. Want more autonomy
4. Aware of OH&S
5. Increased equity/gender equality
6. Work life balance
Industrial Democracy/Empowerment
- Employees demand the right to be involved in the decision making process.
- Acknowledgement that workers can take initiative and make decisions for
themselves.
- This places new demands on HR managers when recruiting, developing and
terminating staff.
Employee Conditions
(part of the employment agreement)
Hours of work
- Minimum?
- Overtime?
Leave Entitlements
- Sick?
- Long Service?
- Family?
- Holiday?
Other Benefits
- Flexitime?
- Maxiflex?
- Bonuses?
Achieving Work Life Balance
- Work Life Balance is achieving the right combination of hours spent at work
and hours spent in personal life.
Better Work Life Balance:
- Increased productivity & decreased absenteeism
- Increased retention & decreased costs of re- Increased motivation & decreased stress

KPIs
employing

OH&S
- Employers must make sure they take all possible steps to ensure workplaces
are safe for workers.
This Includes:
- Maintaining machines & equipment in proper working order.
- Training staff to operate machines correctly.
Why get OH&S right?
3 key reasons:
1. The law says so
2. It makes good economic sense
3. It is the ethical thing to do.
Job Security
- Job Security refers to workers feelings/beliefs about whether they will lose
their job or not.
- The threat of losing your job is the greatest setback to employee loyalty, even
to those not in immediate danger.
- Perceived security is receiving increased recognition as a key determinant of
employee work outcome.
- Job Insecurity decreases productivity and increases stress and ill health of
workers.

Employee Motivation
Factors that drive workers to achieve in the workplace
Motivation
Motivation is the force that drives people to exert effort to achieve desired end.
Maslows Need Hierarchy
Sel
Sel
ff
Act
Act
ual
ual
isa
isa
tio
tio
n
n
Self
Esteem
Self Esteem

Needs are arranged in a


hierarchy of importance.
Must satisfy the lower before
you can satisfy the nest
Unmet needs are motivators.

Belonging
Belonging

Think about The Simpsons

Safety
Safety

Physiological
Physiological

Maslow and the Workplace


Maslows hierarchy of needs has significant implications for treatment of labour and
the design of jobs in the workplace.

Creative, interesting jobs

Responsibility & Recognition


Teamwork, involvement &
support
Safe Conditions

Satisfactory pay for survival

Hertzbergs Two Factor Theory


This theory is based on the idea that some things stop people becoming dissatisfied
(Environment) and other things motivate people (Motivators)
Environment: These are the extrinsic to the worker.
Motivator: These are intrinsic to the worker.
Hertzberg 1: Preventing Dissatisfaction!
Environment (Hygiene):
- Hygiene does not lead to satisfaction but rather prevents dissatisfaction.
- If hygiene needs are not met then dissatisfaction can result.
Examples:
1. Pay
2. Relationships/supervision

3. Working conditions
4. Job security
5. Policies & procedures
Getting the environment right allows motivators to function.
Hertzberg 2: Creating Motivation
Motivators:
- These are things that will provide workers with motivation and energise them
in the workplace.
Examples:
1. Responsibility
2. Important/rewarding work
3. Achievement
4. Recognition
Lockes Goal Setting Theory
Theory says that setting challenging but achievable goals motivates people to
improve performance.
Focus on:
1. Challenging
2.
S
s
lb
Im
e
P
rfo
n
p
a
c
v
F
d
k Achievable
tiG
M
Imp
rfo
e
P
e
v
ro
c
n
a
m

e tG
S
a ls
o
db
e
F
k
c
a
Mo
ao
tiv
n

Topic 1B

Chapter 5 The Human Resources Management Function The Employment Cycle

HMR Function: The Employment Cycle


Planning, Analysis and Design
The Employment Cycle

a
M
g
E
n
liT
tb
s
rh
e
m
Ma
tg in
in
li s
b
ta
s
E
iT
h
e rm
t in
a
in
g g
n

HR Planning
- More than any other resource, people are what is critical to achieving an
organisations goals. Humans are the most important resource.
- Choosing the right staff is therefore the most crucial decision a HR manager
makes.
- The HRM must have a detailed knowledge of the position that needs to be
filled to best assess applicants for the job.
Planning HR Needs
The following questions need to be asked:
- How many workers are needed?
- What qualifications and skills are needed?
- When and where workers are needed?
HR Planning Considerations
Internal Factors:
- Future production
- New Equipment acquisitions
- Expansion
- Downsizing
- Current worker profiles (age, gender, etc.)
- Current staff turnover
External Factors:
- Economic outlook
- New technologies
- Changes to the law
Job Analysis
- Job Analysis is a systematic study of each employees studies, tasks and
work environment.
It examines:
- Job activities
- Equipment needed
- Behaviours required

- Working conditions
- Level of supervision
Job Description is a written statement of tasks, duties and responsibilities.
Job Specification is a list of key qualifications, skills and expertise required for a job.
Job Description

Job Specification

Job Analysis

Job Design
A satisfying job includes interesting and challenging tasks,
and has a high level of autonomy over When and How questions.

What
What
Tasks?
Tasks?

How
How
Performe
Performe
d
d

Job
Desig
n
When
When
Performe
Performe
d
d

Who
Who
Performs
Performs

The Employment Cycle: Establishing Phase


Recruitment & Selection
Before you Begin
Job
Descriptio
n

Job
Specificati
on

Recruitment
& Selection

Recruitment
- Recruitment is the process of finding suitable
applicants/candidates for the position.
The search for candidates may be Internal or External
The aim is to gather information about possible/potential employees.

Internal Search
- The consideration of existing employees as applicants for available positions.
- It can work as a good motivator for current employees.
- It is cost effective (i.e. cheaper).
- It is more likely to be effective in larger organisations.
External Search
- Organisations will choose the most appropriate method for them.
- An organisation wants to bring in new people.
Advertis
Advertis
e
e

Externa
Externa
ll
Search
Search
Graduat
Graduat
es
es

Agencie
Agencie
s
s

Selection
- This involves sorting through the list of applicants and choosing the most
appropriate applicant.
- It is important that you choose the applicant with the qualifications that best
match the position/job.
The Selection Process

Short List Applications


Tests
Interviews
Background Checks
Select (Better) Candidate

Making the Choice


- An organisation should select the candidate with the skills that best meet the
requirements of the position.
- The costs of getting it wrong can be high.
- Organisations must ensure they do not breach anti discrimination laws.
- Organisations are compelled to act within the law and should aim to act
ethically when choosing new staff.

The Establishment Phase


Employment Arrangements & Remuneration
Employment Arrangements
There are 4 basic arrangments for employing people.
Full
Time
Full Time

Outsourc
Outsourc
e
e

Option
Option
s
s

Part
Part
Time
Time

Casual
Casual

Full Time Employment


This is what you get
38
Hours
Paid
Family
Leave

Family
Leave

Full
Tim
e
Holida
y Pay

Sick
Leave

Long
Servic
e
Leave

Part Time Employment: <38 Hours


Advantages:
- Work is on going of continual
- Normal benefits are accrued of a pro-rata basis
- Can be more productive as workers are more motivated and less fatigued
- Overall increase in skill bank of organisation
Disadvantages:
- Can be difficult to organise meetings
- Can be difficult to communicate
- Less continuity of service for customers/clients
- Increased need for facilities
- Increased training costs

Casual Employment

Advantages:
- Hourly rate of pay is usually higher
- Give flexibility to both employers and employees
- Increases the skill bank of the organisation
- Easier to discard underperforming workers
Disadvantages:
- Loss of benefits such as sick leave and long service leave
- Workers can be less committed and less motivated
Outsourcing
- Outsourcing is using a contractor to complete tasks rather than employing a
staff member
- A contractor is not an employee and therefore does not have the same rights
as an employee
- Contractors are paid a contract price and must account for their own taxation
- Contractors may work for more than one employer simultaneously
Remuneration Financial Reward
Remuneration is the financial reward a person gets for working for an organisation.
The National Employment Standards contain so minimum conditions each
employee must get.
Remuneration Package is the overall bundle of benefits an employee receives.
Remuneration packages will reflect the value of a workplace to the organisation.
Wage
Wage

Salary
Salary
Sacrifi
Sacrifi
ce
ce

$
Rewar
d

Salary
Salary

Benefit
Benefit
s
s

Enterprise Bargaining
EB allows variations to particular workplace as agreed by both the employer &
employees
Variations Include:
- Start and finish times
- Overtime
- Leave without pay
- Work from home
- Additional family leave
- Job sharing
Such variations can attract a different type of worker. E.g. A working mother
Not able to bargain for conditions less than the set minimums

The Maintenance Phase of the Employment Cycle


Induction
Induction
Induction is the process of acquainting new employees with the organisation.
Sometime called Orientation and Onboarding.
History
History

Practices
Practices

Structure
Structure

Familia
r
Environmen
Environmen
tt

Policies
Policies

Culture
Culture

Good Induction
Good Induction is:
- Planned
- Organised
- Lead
- Controlled
The aim of induction is to make sure new employees are made comfortable as soon
as possible so that they do not leave.
The highest rates of staff turnover occur in staff that have been with the
organisations less than 6 months.

The Maintenance Phase of the Employment Cycle


Training & Developing
Training & Development
Training
Is the process of teaching workers to perform their tasks more effectively by
improving their knowledge and skill. I am being trained to use the new computer
software.
Development
Refers to activities that prepare people to take on more responsibility in the future.
Sometimes called grooming. I am being groomed for a management position.
The Importance of Training
Training
Opportunities (experiences)
Development

Focus on Training
Training

Skills & Knowledge


Financial KPIs

Long Term Changes


Attitudes & Behaviour
Improved Organisational Perfromance
Non Financial KPIs

Benefits of Training
To the Worker:
1. Opportunities promotion and self improvement
2. Satisfaction perform tasks better
3. Challenge learning new things
4. Adaptable better able to adapt to change
OSCA
To The Organisation:
1. Improves work quality
2. Increases worker productivity
3. Better able to initiate and cope with change
4. Achieve objectives more easily
5. Reduce Costs
Technology and Training
- Effective introduction of new technologies requires workers to be trained

HMR must Plan, Organise, Lead & Control the training of workers in new
technologies
Training is expensive but essential
Untrained workers often resist change

Types of Training

On
the Job
On the
Job

ICT/Online
ICT/Online

Off
the Job
Job
Off the

Trainin
g

Action
Action
Learning
Learning

University
University

Industry
Industry
Training
Training

Competen
Competen
cy
cy

Training and Developing Managers


- Job Rotation: Moving around the organisation
- Mentoring: Using another person as a coach for guidance and support
- Formal Training: Undertaking specific management training such as an MBA
(Masters in Business Administration)
Succession Planning
This is planning for the replacement of existing managers so that the organisation
has a leader ready to take over when the current leader leaves.

The Maintenance Phase of the Employment Cycle


Reward & Recognition
R&R Programs
Recognition involves acknowledging the efforts & achievements of someone
Reward is one tool used for recognition
An effective Recognition & Reward program should help to attract, retain and
motivate workers.
Attributes of a Good Recognition and Reward Program

Motivate
Motivate
Integrate
Integrate
d
d with
with
objective
s

Cost
Effective

Equitable

R&
R

Clear

Defensibl
Defensibl
e

Relevant
Relevant
Consiste
nt

Potential Problems:
1. Where workers perceive their work & effort are not recognised
2. It may cause competition between workers rather than cooperation
3. Some performances are difficult to accurately measure and therefore reward
Poor systems can cause serious employee problems.

The Maintenance Phase of the Employment Cycle


Performance Management
Performance Management
- PM is about ensuring individual workers achieve their stated objectives.
- Worker objectives should be consistent with the objectives of the organisation.
- PM is therefore about ensuring the organisations goals are achieved.
- E.g. If the organisational goal is to increase sales by 10% then personal goals
of the sales staff should be to increase sales by 10%.
Effective Performance Management
Examines the following
1. Are the jobs well designed?
2. Do workers have the right skills?
3. Is training in place?
4. Are appropriate rewards in place?
- You should not set people up for failure!
The
Job
The Job

Reward
Reward
s
s

Effectiv
e PM

Skills
Skills

Training
Training

Performance Appraisal Definition:


- Managing an individual employees performance in the organisation.
- Results are discussed with employees. Appraisal without feedback is pointless
as nothing changes.
- Appraisal should be objective and not subjective.
Performance Appraisal Aims:
Provide feedback to workers
A measure for promotion, pay rises, etc.
Helps the organisation monitor its workers
Identify training & development needs
Identify new objectives & plan future
performance

1
1
2
2
3
3
4
4
5
5

Performance Appraisal Methods

Management by
(mutually agreed)
objectives

Essay (journal) Method


Critical Incident
Method

Comparison Method

The Employment Cycle


Termination
Awareness & Sensitivity:
HR managers must be aware and sensitive to:
- Industrial & employment laws
- Organisational policies
- Ethical behaviours
- Expectations of society
Law

Expectations
Expectations

Awar
e

Policie
s

Ethic
s

4 Ways to Terminate

Resign
Resign

Dismiss
Dismiss

Terminatio
Terminatio
n
Options
n Options

Retire
Retire

Retrenchme
Retrenchme
nt
nt

Resignation
- This is where the employee chooses to terminate the employment relationship
- It is usual to give an agreed period of notice
- Notice varies according to the industry.
- There can be penalties for failure to give adequate notice in the form of
withholding of wages.
- Sometimes people are entitled to resignation benefits such as accumulated
long service leave and accumulated holiday leave when they resign.
Retirement
- This is similar to resignation except the employee is ceasing work and
accessing the aged pension and/or superannuation
- The qualifying age for me and women to access the aged pension is
progressively increasing such that by around 2020 the qualifying age will be
67 years for both men & women.

Retrenchment
(Redundancy)
- This is where the employer decides a position is no longer required and the
employee is made redundant.
- Redundancies may be voluntary (ask employees to be made redundant) or
involuntary (force a worker to be redundant.
- Redundant employees are entitled to compensation known as redundancy
package the value of this is usually linked to the length of service given by a
worker.
- The main reasons for retrenchments are technological advances and lost or
expired contracts.
Dismissal
The Employer terminates the employment agreement.
Summary Dismissal:
- Instant dismissal as a result of gross breach of discipline.
- Examples include: theft, violence, intoxication, misconduct, refusing to work,
etc.
Due Process:
- Employer initiated process of counselling that may result in termination or
resolution of the issue.
- This is a formal process that has clear steps that must be followed and
documented.
Unfair Dismissal
- Unfair Dismissal is where the termination of employment by the employer is
harsh, unreasonable or unfair.
- Laws help protect workers from unfair dismissal.
- Dismissals considered unfair include things such as: illness, association with
legal organisations, race, religious beliefs, disability, pregnancy, failure to give
adequate notice of termination, etc.
Unfair Dismissal Remedies:
1. Reinstatement at the same or equivalent position.
2. Compensation (remuneration) in lieu of reinstatement.
3. Reinstatement and compensation for lost income.
Organisations usually want to avoid unfair dismissal and do this by following clear
guidelines for termination.

Topic 1C

Chapter 6 The Human Resources Management Function Employee Relations

Employee Relations
Introduction
What
-

is ER?
ER refers to the total relationship between the employer and the employee.
The ER process is used to build an effective workforce.
An effective workforce improves organisational performance.

Working Conditions
The accepted working conditions must:
1. Satisfy the needs of the workers
2. Allow the organisation to achieve its goals
ER Stakeholders
Employers & Employees

Unions & Employer Associations


Peak Union Bodies & Peak Employer Bodies

Internal Stakeholders
Employers:
- Manage ER issues on a daily basis.
- Include ER specialists in the HRM tea, (e.g. Industrial lawyers, etc.)
Employees:
- Workers are increasingly included in the negotiation and establishment of
working conditions.
- Societys values have shifted to make this involvement an expectation.
Operating Stakeholders
Trade Unions:
- Unions are called on to represent their members in the ER process and
agreements.
- Unions aim to get the best possible deal for the members (i.e. workers)
Employer Associations:
- Employer Associations originally counteracted the power if trade unions.
- Now, they provide advice to member organisations on issues relating to the
particular industry (e.g. Retail Traders Association and Sunday pay rates)
Macro Stakeholders
Peak Union Bodies:
- Australian Council of Trade Unions. ACTU

The ACTU:
1. formulates policies for the union movement
2. assists unions in the settlement of large disputes.
Peak Employer Bodies:
- Victorian Employers Chamber of Commerce & Industry. VECCI
- VECCI & other bodies perform a similar role for employers as that provided by
the ACTU for unions.
The Role of Government in ER

Make
ER
Make ER
Laws
Laws

Represen
Represen
tt
Australia

Administ
Administ
er
er
Policies
Policies

Gov
t
Role
s

Employer
Employer

Economi
Economi
c
c
Manager
Manager

Centralised & Decentralised Employee Relations Systems


The Centralised System
1904-1990
Features:
- The government controlled the system of determining wages & conditions.
- All wages & conditions were formalised in legal documents called Awards.
- Awards applied to occupations & industries. E.g. Hospitality Industry,
Construction Industry, etc.
- Awards were established by the Australian Conciliation & Arbitration
Commission (later to become the Australian Industrial Relations Commission)
after hearing submissions from Trade Unions and Employer groups.
Conciliation & Arbitration
Conciliation:
Using a third party Conciliator to help two disputing parties resolve their
differences through discussion and negotiation.
Arbitration:
Using a third party Arbitrator/Arbiter (Judge-Like) to hear both sides and make a
formal, binding judgement. Arbitration occurred only after conciliation had been
attempted and failed.
Centralised Decisions today
The Minimum Wage
- Each year the minimum wage panel of Fair Work Australia determines the
minimum wage for vulnerable groups such as:
1. Casual workers
2. Junior Workers
3. Trainees
4. Disabled workers
5. Full time adults not covered by awards
A More Decentralised System
Post 1990
- A Decentralised system is where employees and employers are able to
directly negotiate pay and conditions in individual workplaces.
- Decentralised means that decision making is not controlled at one (central)
point, but is spread out, defrayed, dispersed not centralised.
Enterprise Bargaining
- EB is the process of directly negotiating pay and conditions between
employers and employees at the enterprise (organisational) level.
- Allows workplace practices to change to suit workplace needs.
- Link productivity increases wage increases.
- Encourages conflict resolution at the local level.
Types of Agreements
Agreement Options:
- Awards
- Collective Agreements
- Individual Agreements
Awards

In the past:
- Awards contained the terms and conditions of employment which applied to
particular industries.
- Awards were the only set of conditions.
- Awards were entailed detailed and complex.
Today:
- Awards exist as a minimum set of conditions that apply where no enterprise
agreement has been reached.
- Awards are a safety net to protect workers and provide ten basic
entitlements.
Collective or Enterprise Agreement
- Is an agreement between an employer and its employees as a group or
collective.
- Unions may be used by employees to represent them
- Bargaining is to be in Good Faith
- Agreements must adhere to the 10 National Employment Standards and
contain several other components. E.g. Expiry dates.
- Enterprise agreements must be approved by Fair Work Australia
Individual Agreements
AWAs:
- No longer allowed
- A small number still exists but will cease when their expiry date occurs.
- Allowed pay & conditions below Award levels
Common Law Contracts:
- Very common in professional employment (E.g. Accountants, Lawyers, etc.)
- Cannot erode Award minimums unless pay is greater than $130,000 pa.

The Role of HRM in Decentralised ER

Deal
with
Deal with
Dispute
Dispute

Implemet
Implemet
the
the
Agreeme
Agreeme
nt
nt

HRM
Role
s

Negotiate
Negotiate
Agreeme
Agreeme
nts
nts

Train
Train
inform
inform
Others
Others

Negotiating Agreements
1. Be aware of awards and the national employment standards
2. Table all relevant information to allow proper negotiation (good faith)
3. Consult widely
4. Keep an open mind
5. Remember the big picture
6. Exercise care
7. Lodge the agreement
Training Other Managers & Supervisors
- Production and operations managers are responsible for the implementation
of the elements of the agreement
- For instance, if shift work hours are changed, the operations manager will
need to make changes to the daily structure
Implement the Agreement
1. Prepare and distribute all documents
2. Change all details (e.g. hourly rates of pay)
3. Assist in preparing necessary KPIs
4. Gather feedback on performance
Dealing With Disputes
- HRM is central to the resolution of any dispute that arises under an enterprise
agreement.
- The clever strategy is to set up an agreement that is not likely to cause
dispute
HR Management Styles
Autocratic & Persuasive are more likely to deliver unacceptable agreements and
more conflicts.
Participative & Consultative styles are more likely to deliver acceptable agreements
and fewer conflicts.

Autocratic
Autocratic

Persuasive
Persuasive

Whic
h
Style
?

Consultati
Consultati
ve
ve

Patricipativ
Patricipativ
e
e

HR Management Skills
Managers will need the skills that are consistent with the participative and
consultative styles.
Communicati
Communicati
ve
ve

Delegation
Delegation

Negotiation
Negotiation

Teamwork
Teamwork

Skill
s
Problem
Problem
Solving
Solving

Responsible & Cooperative ER


Promise of good employee relations
1. Better performance on financial KPIs (sales, profit, etc.)
2. Fewer individual disputes
3. Fewer workplace accidents and absenteeism
4. Increased positivity

Conflict and Resolution of Conflict in ER


Fighting Fire With Fire
Strike:
- Where workers withdraw their labour in support of improved working
conditions.
Lockout:
- Where employer closes the workplace for a period of time to put pressure on
workers.
Major Causes of Conflict
Organisati
Organisati
onal
onal
Policies
Policies

Other
Other
(E.g.
(E.g.
Gov.
Gov.
Policies)
Policies)

Major
Cause
s

Pay &
Pay
&
Conditions
Conditions

Physical
Physical
Conditions
Conditions
(OH&S)
(OH&S)

Taking Industrial Action


Protected:
- This is legitimate action taken during the negotiation period when
establishing a new enterprise agreement.
Unions Must:
1. Conduct a secret ballot of members
2. Obtain a majority vote from members
3. Give 3 work days notice to employers
Unprotected:
This includes:
1. Industrial action that takes place before the expiration of a workplace
agreement
2. Strikes without proper warning
These are unlawful
FWA Special Powers:
- Fair Work Australia can order an end to industrial action and set up a
conciliation process where
o The Action threatens the economy
o The action threatens other businesses that have a commercial
relationship with the organisation involved in the dispute.
- If conciliation fails, it can arbitrate a decision
Conflict Resolution

Negotiatio
Negotiatio
n
n

Commo
Commo
n
Law
n Law
Action
Action

Mediatio
Mediatio
n
n

Resolutio
n
Options
Arbitratio
Arbitratio
n
n

Grievanc
Grievanc
es
es

Conciliatio
Conciliatio
n
n

Negotiation
- The least formal method
- No third party involvement
- Requires good communication and negotiation skills
- Used by participative and consultative managers
Mediation
- Involves a third party to help the disputing parties
- Does not suggest a resolution
- Assist parties to keep negotiating
- Are usually independent
Conciliation & Arbitration
- A conciliator assists the feuding parties to come to an agreement
- An arbiter hands the feuding parties a resolution that is binding
Common Law (Legal) Action
- If the industrial action occurs during the bargaining period of an agreement,
neither party can be sued in the courts.
- Otherwise, adversaries and other stakeholders are free to use the courts to
seek resolution of conflicts and damages.
- Legal action is expensive, time consuming and leads to mistrust and hostility
in the workplace.
Grievance Procedures
- These are formal steps that can be followed when a party is dissatisfied with a
situation
- Complaint is handled internally
- Move up the chain of command each time a resolution is not achieved.

Other
Body
Senior
Middle
Operation
al

Topic 2

Chapter 7 The Management of Time

Change Management
Defining Change
- Organisational Change is the planned or unplanned response of an
organisation to internal and external pressures.
- E.g. technology, the economy, social values, etc.
Organisational options
Organisations can:
- Ignore change pressures
- Be reactive to change pressures
- Be proactive about change
Being change ready
- A change ready organisation is committed to building its competency to
respond as needed to a complex and ever-changing environment.
- Organisational survival is dependent on the capacity to change effectively.
- A change ready organisation is both proactive and reactive in its nature.
Internal Forces driving organisational change
Profit
Profit

Policies
Policies

Crisis
Crisis

Intern
al
Forces

Innovatio
Innovatio
n
n

Culture
Culture

Operating forces driving organisational change


Customers
Customers

Interest
Interest
Groups
Groups

Operatin
Operatin
g
g

Competitor
Competitor
s
s

Suppliers
Suppliers

Macro forces driving organisational change

Economic Need, political will, technological advancement and social attitudes can
work in harmony.
Economic
Economic

Environmen
Environmen
tt

Social
Social

Macr
o
Force
s

Politics
Politics &
&
Law
Law

Technology
Technology

Resistance to Change:
1. Lack of trust in managers, workers are suspicious
2. Loss of jobs (e.g. Organisational Restructure)
3. Fear of the new, untried and unknown
4. Follower mentality and poor culture
5. Poor management
6. The Law
7. Costs
New Plant & Equipment
Redundancies
Training & Development

Kotters Theory of Change Management


1: Establish the necessity
- Undertake a SWOT analysis to get the evidence.
- People embrace change better when it is seen as a response to a potential or
current problem.
- Create a sense of urgency.
2: Establish a Guiding Group
- Form a team of facilitators to get the job done
- The team must have authority and respect
3: Create a Vision
- Provide a clear direction for the organisation
- No vision means no commitment
- Clear and shared vision is critical to getting effective change
4: Communicate the Vision
- Use as many mediums as is necessary
- Broadcast your vision to all stakeholders
- Use consistent language and images throughout
5: Empower People
- Involvement reduces fear and suspicion
- Involvement creates ownership
- Provide training where needed
6: Recognise & Reward achievement and involvement
- Do this throughout the change process
- On-Going praise helps to drive further risk taking
7: Consolidate improvements
- Modify policies, systems and procedures to reflect and sustain the new
positions
The new positions become the solid base from which to undergo further change.
E.g. continuous improvement.
8: Institutionalise the change
- Make clear statements about the success of the organisation and the changes
- Close the loop on the process
- New behaviours become the standard

Managing Change Effectively


High and Low rise approaches
Low Rise Strategies
- Change is more accepted in an environment where time and energy have
been invested in making people comfortable with change.
Make the organisation change ready
Strategies Include:
1. Inclusive management style
2. Identifying the need for change
3. Setting achievable objectives
4. Encouraging teamwork
High Rise Strategies
The consequences of getting it wrong can be enormous.
Are these tactics ethical?
Manipulation
- Threat and ultimatum
- High rise
- Cooption
The Role of Leadership
Leadership: positively influencing and encouraging people to act and achieve.
Focus On:
1. People rather than tasks
2. Feelings rather than facts
3. Listening rather than speaking
4. Displaying empathy
In Addition:
1. Promotion the change
2. Resolve conflict
3. Share ideas and information
4. Share the credit

Impact of Change on LSO


Large and Small changes
Transformational Change
What changes?
- Hierarchy changes
- Culture
- Technology
- Employment arrangement
- Systems and procedures
Incremental Change
What changes?
- Tasks
- Locations
- Team members
- Specific tools
The work practices of a few people only are changed.

Structural Changes
Before

CEO

A
B

1
2
3

After

CEO

1
2

Structural change is a change in the organisational chart or chain of command.


Impact of Change on Culture
- Organisations may need to adopt a new mindset when confronted with new
circumstances
- Deregulation and privatisation caused organisations like QANTAS, CBA and
Telstra to change their cultures
- These organisations had to become profit and survival driven as they are
exposed to changed market structures.
Medibank Private GBE Government Business
Private health insurer owned by the Federal Government
Privatised, sold to shareholders
Impact of change on HRM
HRM will need to:
1. Change recruitment and selection to get skilled workers
2. Make some workers redundant
3. Organise training for some workers
4. Introduce new appraisal system
5. Communicate the changed vision
Impact of change on operations management
Movement away from human labour, towards robotics and manufacture
Highly capital intensive, about larger markets
Other Effects of change
1. Outsorcing; using contractors not employees
2. Flatter Organisational Structures; less hierarchical
3. Work teams; inclusive management styles