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The Human Resource function is imperative to achieving an organisation's objectives because it is within this function that employees are motivated, which can decrease staff turnover and increase staff morale, therefore productivity is maximised which would subsequently increase the success of the organisation.

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HRM's Relationship to Business Objectives

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The long term plan of action adopted by an organisation to achieve its goal and objectives.

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Business Strategy

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Commitment- Employee's identification with and attachment to their job and the organisation. Affects greater loyalty, increased team-work and reduced staff turnover Competence- Employee's ability to achieve the organisation's objectives Cost effectiveness- Eliminating unnecessary work, reducing staff turnover and improving employee's efficiency and productivity Congruence- Agreement between management and employees. Harmony in a working environment. Adaptability- The organisation's readiness for change and innovation Performance- Employee's productivity levels. Organisation's profitability and success. Job Satisfaction- Employees feeling good and positive at work and can decrease levels of staff turnover Employee Motivation- Employee's drive to achieve goals

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Measuring HRM Effectiveness

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What an employee demands from the organisation and employers. This includes: - to be paid a fair wage - to finish work on time - to work in a safe and healthy work environment - to have the opportunity for promotion - to be able to negotiate flexible working arrangements - to have time off

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Employee's Expectations

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What the employer expects or demands from the employee. This includes: - that employees comply with health and safety policies and procedures - that employees are skilled and willing to be trained and developed - that employees arrive on time and leave at the scheduled time - that customers are given good customer service - to achieve the organisational objectives in satisfactory manner

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Employer's Expectations

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What an employer has agreed to give the employee in return for their work. Such as: - number of hours from employee - annual leave entitlements, e.g. sick leave - public holidays - redundancy pay

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Conditions of Employment

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Providing a safe and healthy work environment.

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Occupational Health and Safety

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The probability that an individual will keep his or her job. Job insecurity can lead to decreased levels of motivation demonstrated by employees as well as decreased levels of loyalty and commitment to the organisation.

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Job Security

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Flexibility between personal life and job commitments. Such as the ability to leave work early to attend child's parent/teacher conference.

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Work-Life Balance

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Work practices that allow employees to balance work and family responsibilities, e.g. variable working days/weeks. Creating a work environment that takes into account the impact of family responsibilities on employees will lead to a more loyal and committed employee, which will translate into greater job satisfaction and better work performance.

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Flexible Work Practices

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The employee's willingness or drive to exert high levels of effort to reach organisational objectives, while also satisfying individual employee's need to achieve.

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Employee Motivation

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Recognition (financial and non-financial) for a job well done or to act as a motivator to perform a job

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Reward

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Making a job bigger or more challenging by combining various operations at a similar level (horizontal); acts to increase motivation and job satisfaction

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Job Enlargement

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Making a job more challenging so workers are required to use their full capabilities and gain personal growth

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Job enrichment

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Workers are moved between different jobs to increase variety of work and to create a flexible workforce

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Job Rotation

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A group of workers who meet regularly to discuss quality and production issues; any proposed changes to production methods are then put forward to management

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Quality Circle

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The shared values and beliefs of an organisation, which can influence the actions and decision-making style of managers and employees

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Corporate Culture

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1. Establishment phase - HR planning - Job analysis and job design - Recruitment - Selection - Employment arrangements - Remuneration 2 Maintenance phase - Induction - Training and development - Recognition and reward - Performance management 3 Termination phase - Termination management - Entitlements - Transition issues

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Three Phases of the Employment Cycle

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The first phase which involves establishing the employment relationship between an organisation and an employee.

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Establishment Phase

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Planning for future personnel needs, taking into account both internal activities and factors in the external environment. During human resource planning, management must ensure that the required human resources will be available to achieve the organisation's strategic plan.

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Human Resource (HR) Planning

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A group of tasks performed by an employee

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Job

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Systematic process of gathering information relating to a job being performed

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Job Analysis

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- interview - questionnaire - observation - supervisory reports - log books and daily work diaries

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Methods Used to Conduct Job Analysis

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A written description of a job's title, duties and responsibilities, including its location on the organisational chart

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Job Description

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Detailed listing of the personal skills and characteristics required to perform a particular job

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Job Specification

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Grouping together of tasks for a particular job, which should incorporate variety and challenge for the job holder

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Job Design

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The process of finding the best qualified pool of applicants

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Recruitment

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1. Identifying human resource requirements- ensuring that the people recruited and ultimately selected have the skills and attributes required by the organisation to assist in achieving corporate business objectives 2. Recruitment source- internal or external recruitment 3. Recruitment methods- advertising, electronic recruiting, government employment agencies, personnel and management recruitment consultants and outplacement firms

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Process of Recruitment

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Advertising the position within the organisation and allows for staff to be promoted Pro => Lower costs because an induction process and paying for advertising will not be required. It also acts as a motivator and morale booster for employees as they are promoted Con => No new ideas, skills and approaches to problem solving are introduced, which could stifle creativity and innovation

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Internal Recruitment

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Advertised outside the organisation and candidates can come from anywhere Pro => a larger pool of applicants who are likely to provide fresh insights, new approaches and new ways of solving problems to the organisation Con => advertising and interviewing new employees is time-consuming, more difficult and costly. There is also limited career advancement of existing employees, therefore decreasing their motivation.

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External Recruitment

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Providing people with a fair and equitable opportunity to succeed without any form of discrimination based on age, sex, race or nationality

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Equal employment opportunity (EEO)

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Process undertaken by an organisation to decide whether to make a job offer to a candidate

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Selection

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1. Receipt of application 2. Screen and short list 3. Interviews 4. Testing 5. Reference checking 6. Offer job to best applicant

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Selection Process

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The act of applying for a job or advertised vacancy; the letter or communication used in expressing interest in a job or advertised vacancy

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Application

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Basic source of employment information covering qualifications, experience and other job-related data

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Application Form

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Competence to perform a task

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Capabilities

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Test of special abilities (e.g. clerical, language, artistic) that are required for a specific job

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Aptitude Test

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Undertaken by using business games such as a role play or work stimulation exercises to judge how the applicant will handle various work situations.

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Competency Testing

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A formal written agreement between an employer and an employee setting out the legal obligations of each party; an informal or oral agreement may also be entered into

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Employment Contract

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- Permanent full-time basis => employees are entitled to receive a salary or wage, leave entitlements and superannuation - Permanent part-time basis => employees are entitled to receive a salary or wage, leave entitlements and superannuation. work fewer hours than full time - Casual basis => short term, irregular or seasonal work. paid on a daily or hourly basis and do not have access to sick leave and annual leave - Fixed-term basis

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Types of Employment Contracts

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An agreement that sets out minimum terms and conditions of employment relating to an industry

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Award

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A written collective agreement made between an employer and the employees, setting out terms and conditions of employment

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Employee Collective Agreement

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A written agreement made between an employer(s) and a union(s) that sets out the terms and conditions of employment; an agreement may cover businesses run by more than one employer

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Union Collective Agreement

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Payments and/or benefits paid to an employee in exchange for their labour

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Compensation

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Systematic method of determining what employees think about their job, supervision and the organisation

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Attitudinal Survey

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The amount a person is compensated (paid) for performing work tasks (job); it can take the form of cash and/or fringe benefits; it can be referred to as a salary or wages

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Remuneration

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- Wages => worked out on an hourly basis for a working week - Salary => annual figure usually paid on a monthly or fortnightly basis - Salary packages => performance-based pay (bonus), superannuation entitlements - Benefits => e.g. paid maternal leave

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Types if Remuneration

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The second phase where the role of the HR manager is to ensure the organisation retains productive and efficient employees who are loyal and committed to the organisation

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Maintenance Phase

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The process of introducing new workers to their place of work, their job role, their colleagues, supervisors, management and corporate culture. A good induction program is important as it includes welcoming new employees and helping them to feel like a part of the organisation, therefore reducing staff turnover. It also provides an opportunity to communicate and reinforce the corporate culture, and provide information that helps employees understand their entitlements and responsibilities and the performance expectations and means the new employee will become effective and reach expected performance levels more quickly.

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Induction

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The process of providing an employee with the knowledge of specific skills needed to do a job

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Training

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The process designed to develop skills necessary for future work activities and responsibilities

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Development

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Diagnoses the current problems and future challenges that need to be overcome through use of a training program

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Training Needs Analysis

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- Organisational analysis - the entire business is analysed to determine where training activities should be concentrated to best achieve its strategic objectives. - Task analysis - the individual jobs to be performed are analysed to determine whether any skill deficiencies are evident. - Person analysis - each employee is assessed to determine what kind of training is required

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Three Levels of Analysis

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Skills used by a manager when dealing with people on a personal basis, such as being able to lead, motivate, communicate, manage conflict and build team rapport

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Interpersonal Skills

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Training that focuses on the ability to perform specific tasks to a predetermined standard

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Competency-Based Training

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Financial Rewards: - wages - salary - superannuation - performance-related pay Non-financial Rewards: - promotion - career development - travel, entertainment vouchers or film tickets - recognition

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Rewards and Recognition

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The system used to improve organisational, functional and individual performance through linking the objectives of each; it assesses all phases of the employment cycle

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Performance Management

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Determining how well employees have performed their jobs, providing feedback to employees and establishing plans to improve performance

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Performance Appraisal

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1. Identify and establish performance appraisal objectives. 2. Evaluate or appraise the employee's performance through a combination of observation and analysis 3. Review performance and provide feedback to the employee. Strengths must be recognised and rewarded, weaknesses overcome with assistance

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Steps in Appraisal Process

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- Management by objectives (MBO)- involves setting specific, measurable objectives with an employee and then periodically reviewing the employee's performance - Comparative standards- a form of performance appraisal where one employee's performance is compared to or ranked against the performance of another employee - Absolute standards- a method of performance appraisal involving the independent evaluation of an employee's performance by their manager - Critical incidents- method of appraisal involving the appraiser/manager recording observations or events of good or poor employee performance

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Appraisal Methods

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- Remuneration and rewards - Training and development - Counselling - Job promotion - Job rotation/transfer - Termination

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Performance Appraisal Outcomes

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The third and final phase of the cycle and results from decisions made by either the employer or the employee to end the employment contract and relationship.

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Termination

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Voluntary termination that occurs when an employee leaves the workplace, usually to go to another job

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Resignation

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Voluntary termination where an employee decides to leave the paid workforce

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Retirement

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Positive: - cutting of non-productive employees - reduction in costs Negative: - loss of talent - cost of replacement - decline in morale - breakdown of effective teams - productivity could increase or decrease (depending on effectiveness of departing employee)

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Impact of Termination

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Occurs when an employee whose employment is terminated by reason of his or her job becoming redundant

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Retrenchment

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- an employer is closing part or all of its business - an internal organisational restructure occurs - new technology is introduced - a business is relocating - the duties of a position are reallocated to other employees - the business merges with or is acquired by another business

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Redundancies Commonly Arise When

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Termination of an employment contract due to incompetence or indiscipline

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Dismissal

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Outplacement services- services provided to assist employees who have been retrenched to gain new work and manage the stress associated with losing their job. Assistance can include counselling to counteract negative feelings, improving résumé-writing skills, preparing for job interviews including interview practice, and make phone calls to organise interviews and print relevant documents. Transition services- services provided to employees who are retiring and need assistance to organise their finances, lifestyle planning and volunteering activities.

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Termination Management

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The relationship between employees (or their representatives) and employers (or their representatives), encompassing all aspects of their working lives, including wages and conditions of employment based on optimum working relationships

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Employee Relations

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- To achieve optimum working relations between employees and management - To focus on using specific strategies to retain, reward and motivate effective and skilled employees - To create optimum worker and organisational productivity, which leads to increased business competitiveness

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Aim of Employee Relations

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The aim of employee relations is to achieve an optimum working relationship between the employees of an organisation and management. In doing so, the level of conflict will be decreased and leads to a harmonious work environment. This in turn will create optimum worker and organisational productivity, resulting in greater organisational competitiveness.

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Relationship of Employee Relations to Business Objectives

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An organisation formed to represent and protect the rights of workers in a particular industry Benefits: - Campaigns for better pay and work conditions - Provides support at the workplace level - Threat of unemployment - Taking action for safer workplace - Acts as a spokesperson to the media

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Trade Unions

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An organisation that provides a range of advice to employers and represent their interests on employee relations issues Benefits: - Represent and assist employer groups - Promote their common interest in employee relations - Share information and offer mutual support on their rights and obligations - Acts as a spokesperson for members of their organisational type - Represent employers during bargaining over wages and conditions

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Employer Associations

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- Industry associations- employers from the same industry group e.g. Mining Council of Australia - Professional associations- made up of members of professional groups e.g. Australia Medical Association - Peak bodies- employers from a variety of industry types e.g. Australian Industry Group

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Types of Employer Association

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Enacts laws that directly control and influences the conduct of employee relations in areas such as: - Employee contracts - Taxation - OH&S - Equal opportunity - Pay and working conditions- establishes institutions to manage this environment - Responsible for economic management which impacts on economic activity rates and wage levels

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Government

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One-stop shop for information, advice and assistance on workplace issues It has the power to: - Vary awards - Make minimum wage orders - Approve collective agreements - Determine unfair dismissal claims - Assist employers and employees to resolve workplace disputes

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Fair Work Australia

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Federal legislation that established the roles and powers of Fair Work Australia, the Office of Fair Work Ombudsman and the Fair Work Divisions of the Federal Court and the Federal Magistrates Court

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Fair Work Act 2009 (Commonwealth)

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1. Fair work Ombudsman- promotes legislative compliance, educates, informs and provides assistance. Appoints Fair Work Inspectors 2. Fair Work Inspectors- assists employers and employees to comply with National Employment Standards (NES), awards and collective agreements. Bring court proceedings to enforce employee and employer rights and obligations

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Fair Work Australia Institutions

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Where awards (pay and working conditions) were determined by a central body (AIRC) relating to an industry Pro => All documents about pay and work conditions are government-determined, therefore there is a certainty of pay and work conditions for employees working in the same industry. As a result, employees won't feel demotivated as their colleagues are being paid equal amounts. Con => Reduces the potential for employees to have flexible pay and work conditions, which can decrease motivations and therefore job satisfaction. It also eliminates the potential for rewarding and recognising employees for a job well done which can furthermore decrease staff morale and motivation

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Centralised system (of employee relations)

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Where employers and employees at each workplace determine their pay and working conditions and work through their differences without outside interference Pro => allow organisations and employees to negotiate pay and working conditions, thus increasing the opportunity for productivity gains through improved staff motivation and job satisfaction. It also creates a more inclusive environment where both parties are working together which can increase employee's loyalty and commitment to the organisation. Con => Can be more time-consuming as employers have to undertake negotiations. Can increase the likelihood of industrial disputes. Employers can take exploit employees

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Decentralised system (of employee relations)

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- The adoption of a participative management style facilitates a sense of ownership of decisions for employees as they feel their contribution is valued when they are part of the decision-making process. A team approach to planning and decision making develops employee trust. Employees who are consulted feel valued and in turn develop a loyalty to the organisation. - Effective communication skills and methods allow employees to interact openly with management, and feel valued and are less inclined to resort to industrial action when dealing with workplace conflict - Provision of fair pay and working conditions and recognition of employee achievement and effort creates a positive workplace atmosphere.

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Factors That Allow for Optimal Workplace Relations

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• Communication and listening skills - these are vital, as most disputes can be solved with effective communication • Negotiation skills • People skills • Team building • Planning and leadership skills • Understanding and knowledge of workplace relations laws and how they apply • Problem-solving skills • Decision-making skills.

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HR Manager Skills

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- Both use rewards as the minimum terms and conditions of employment for an entire industry - Both have some degree of union involvement - Both are legally binding

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Similarities Between Centralised and Decentralised Approaches

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- Decentralised approach is flexible whereas centralised is inflexible - In a centralised system, awards are industry-wide and were used as the main type of wage determination and contract whilst in a decentralised system, the awards are a 'safety net', acting as minimum standards, yet ultimately they are replaced by other contracts such as enterprise bargaining approaches

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Differences Between Centralised and Decentralised Approaches

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The process by which top management determines overall organizational purposes and objectives and how they are achieved.

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Strategic Planning

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Determining the number, skill, and location of employees the organization will need at future dates in order to meet its goals.

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Requirements Forecast

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Determination of whether the firm will be able to secure employees with the necessary skills, and from what sources.

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Availability Forecast

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Use the organization's current level of employment as the starting point for determining future staffing needs.

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Zero-Base Forecast

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Each successive level in the organization, starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of employees needed.

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Bottom-Up Forecast

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Process of ensuring that qualifed persons are available to assume key managerial positions once the positions are vacant.

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Succession Planning

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Use of software and the corporate network to automate paper based HR processes that require a manager's approval, recordkeeping or input and process that support the manager's job.

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Manager self-service (MSS)

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Processes that automate transactions that previously were labor intensive for both employees and HR professionals.

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Employee self service (ESS)

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Strategic endeavor to optimize the use of human capital, which enables an organization to drive short and long term results by building culture, engagement, capability, and capacity through integrated talent acquisition, development and deployment.

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Talent Management

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Fundamental rethinking and radical redesign of business processes .

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Reegineering

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