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13/06/2018
1
HSC BUSINESS STUDIES STUDENT LECTURE
PHIL MANOCCHIO – Moriah College
© Phil Manocchio 1
Human Resources in the 2017 Business Studies HSC exam
36 marks in total across three sections
– 16/60 across Sections I & II
– 3 Multiple Choice questions: 1, 11, 16, 19
– 12 marks of short answers: Q23 – part a (i) & (ii) 2 marks each, part b 2 marks, part c 6 marks
– 20 marks: Extended Response Q26 – State average 10.56/20
2© Phil Manocchio
Multiple Guess
What is Human Resource Management?
(A) The communication of goals and the provisions of resources to employees
(B) The daily supervision, allocation of duties and evaluation of employees
(C) The use of domestic and global contracts
(D) The organisational hierarchy of a business
3© Phil Manocchio
2017 HSC – Question 1
A recruitment officer is employed by a business.In which specific business function are they most likely to be engaged?
(a) Finance
(b) Human resources
(c) Marketing
(d) Operations
© Phil Manocchio 4
Importance of Human Resources
© Phil Manocchio 5
Jack Welch ‐ retired American businessman. Former CEO of General Electric. During his tenure the company’s value rose 4000%. When he retired in 2005 his severance pay was $417m.
https://www.youtube.com/watch?v=rByDmC0SqtM
Definition of HR
• Human Resource Management refers to the total relationship between the employer and employee so as to achieve the firm’s strategic goals.
• It includes functions such as:
– Strategic partner to achieve the business the goals– An employee sponsor or advocate– A change mentor– Staff development – creating leaders, fostering innovation– Workplace Culture– Engagement with internal and external stakeholders– Understanding of the legal framework– Managing and implementing change in the ethical, social and economic environment– Acquisition, development, maintenance, separation
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Strategic Role of HR
• Human resource management is a strategic or holistic aspect of managing the employee/employer relationship in the workplace.
• With labour costs in Australia at 67 cents for every $1 of revenue, businesses are taking a strategic approach to managing their employees by seeing an effective workplace as adding value to the businesses performance. Using specific human resource strategies to retain, reward and motivate employees to achieve business objectives.
• Some of the strategic challenges for human resource management include: developing and retaining staff, improving leadership development, managing an aging workforce, succession planning, the increased role of technology, ethics and corporate social responsibility and increased contracting (outsourcing) of employment.
7© Phil Manocchio
Strategic Role of HR
• Hhuman resource management should see employees as assets creating workplace environments that are safe, happy, rewarding, stimulating and interesting.
• If businesses are able to provide such environments they will be more efficient, productive, profitable, achieve lower levels of absenteeism and higher levels of work satisfaction while keeping staff turnover and workplace disputes to a minimum.
• Profit Maximisation HRM turns this goal into reality
by managing employee relationships.
8© Phil Manocchio
Interdependence with other Key Business Functions
• The human resource function, in its role of providing the labour for the business will directly impact the production, marketing and finance functions.
• If for example the business is producing goods that require skilled workers then the O__________ team will need to communicate to the human resources manager such labour requirements.
• Such a demand for workers will need to be a consideration for the F________ team, as recruitment, training and remuneration will all require an allocation of funds.
• M___________ is often a point of differentiation for a business’s products. Will the business have the expertise amongst its existing staff to deliver the marketing requirements or will it need to consider outsourcing this function?
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Outsourcing
• Outsourcing involves the use of specialist external providers to perform business activities at lower cost and greater effectiveness than if the business does the task itself.
• Domestic contracting is also known as outsourcing
• Many HR processes can be outsourced and include, but not limited to:
– Recruitment– Induction– Mediation– Performance management– Payroll– Training and development – Exit interviews– Diversity compliance – Work health and safety
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Global Outsourcing https://www.youtube.com/watch?v=KskY3sZibkE
• India and the Philippines have become hotspots for Australian firms when it comes to offshore contracting. Other firms use outsourcing first so as to get acquainted with the market needs before expanding with a greater physical presence.
Case Study
• In April 2016 Optus announced that it would be outsourcing its human resources and back office financial and accounting operations to the Phillipines, which will see numerous jobs (approximately 480) transferred offshore as part of a $200 million cost cutting venture.
Global Outsourcing ‐ Benefits Global Outsourcing ‐ Risks
• Economic benefits e.g. jobs, skills, quality of life for those in the host country
• Difficulty in controlling quality & reliability of service
• Cost savings • Cultural differences – language
• Quality improvements • Security issues – sharing confidential company & customer information
• Maintains competitive advantage • Lack of remedies for breach of contract or other legal matters under foreign legal systems
� Access to knowledge • High labour turnover especially in call centers
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EmployersEmployees
GovernmentFair WorkAct 2009
Fair Work
Commission & Ombudsman
Key Influences ‐ Stakeholders
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Key Influences ‐ Stakeholders
Society
Job security
Casualisation Flexibility
Ageing
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2017 HSC – Question 11
Whose interests is an organisation most likely to be representing when it meets with government to discuss business flexibility, expansion and competitiveness?
(a) Employees
(b) Employers
(c) Society
(d) Unions
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Key Influences – Legal Framework
1980s
Decentralisation
1996
Workplace Relations Act
Work Choices and the Individual
2010
Fair Work Australia Act
Centralised
1960‐70s
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Key Influences – Legal Framework• All employees are covered by an E C , which is a legally
binding, formal agreement between employer and employee.
• If there is a misunderstanding between an employee and employer over the job and duties, then employees need to refer to the contract when talking to the employer.
• The employment contract creates obligations for both employer and employee.
• Businesses operate within a legal framework of common law and statute law.– S__________ law (legislation) FWA 2009– C__________ law ‐ developed by courts and tribunals
• The Legislation covers the nature of employment contracts and agreements; dispute settling; protection of human rights in employment and employer responsibilities for tax payments on behalf of employees.
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Key Influences – Legal Framework
Employer obligations include the following:
• Providing work – Employers are not allowed to stand down employees if there is no work.
• Payment of income and expenses – Employers must pay the income and any work related expenses stipulated in the relevant work place agreement e.g. an award, EA or contract.
• Employers must also meet the requirements of industrial relations legislation, including:
– Providing a workplace that has equity policies, such as anti‐discrimination and EEO legislation
– Ensuring employees are protected from unfair dismissal. Employers can only dismiss employees who do not obey instructions; neglect their duties, are guilty of theft/dishonesty, exhibit misconduct, fail to meet conditions of their contract
– Duty of care ‐ Employers are legally bound under the Federal and State Work Health and Safety Acts (Cth) 2011 to provide reasonable care and safety of the employees by:
• Providing a safe workplace• Provide training supervision necessary to ensure health and safety of workers
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Key Influences – Legal Framework
Employee Obligations:
Obey lawful and reasonable commands made by the employer:
– When employees do not obey ‘reasonable’ order, they are at risk of dismissal– Reasonable orders are those that do not expose the employee to physical
danger or break awards/existing laws
Use care and skill in their performance
– Do not behave in a negligent manner
Act in good faith/the interests of the employer– For example, taking confidential information from one employer to another
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Minimum Employment standards
• The 10 National Employment Standards have been developed in consultation with business, unions and the community and provide employers with minimum standards for employee conditions and protect the safety of employees.
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Key Influences – Minimum Wage
https://www.youtube.com/watch?v=7_b2FLPLMS8
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Minimum Wage & Award Rates
• The Minimum Wage Panel at the FWC determines the National Minimum Wage for those outside of the award and/or agreement process and any increase on an annual basis. It is currently $ ____________ (before tax) or $ ___________ per hour (+25% casual loading)
• A special minimum wage exists for trainees, apprentices and junior employees, employees to whom training arrangements apply and for employees with a disability
• A___________ are a set of pay and working conditions that are specific to an employee’s work or industry sector (such as a shop assistant or a construction worker) under the FWA. Australia’s award system was restructured from 4300 to 122 awards.
• The award includes minimum wages, penalty rates, types of employment, flexible working arrangements, hours of work, rest breaks, classifications, allowances, leave and leave loading, superannuation, redundancy, entitlements, and procedures for consultation.
21© Phil Manocchio
Minimum wage – The Domino Effect
• https://www.smh.com.au/interactive/2017/the‐dominos‐effect/
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Enterprise Agreements
• Enterprise Agreements are the most common method of wage determination in Australia.
• Enterprise Agreements are negotiated between an employer (or employers) and employees, usually represented by unions.
• All Enterprise Agreements must comply with the NES and cannot offer pay below rates that mandated by the equivalent award.
• All Enterprise Agreements must include grievance producers in order to be approved by the FWC
• Enterprise Agreements must also pass the “B_________ O_____ O__________ T________” (BOOT), requiring all employees to be better off compared to an applicable award.
• Enterprise Agreements usually cover all of the workers up to management level in a company or workplace.
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Other Employment Contracts
• I____________ contracts ‐ Those earning more than $142 000 have minimal cover via the award (high income threshold) in respect to unfair dismissal. Most conditions will be established through the employment contract and usually applies to managers. Mana
• Independent contractors – often known as consultants or freelancers, undertake work for others (journalist, photographers). However, they do not have the same legal status as an employee.
• C__________employees – are in employment that is short term, irregular and uncertain, they are not entitled to paid holiday or sick leave.
• Part‐time Contractors ‐ employment that is short term and usually work less than 38 hours a week.
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Work, Health & Safety Work, Health & Safety
• In 2011, Safe Work Australia developed a single set of WHS laws to be implemented across Australia. Each state and territories must separately implement them as their own laws.
• In NSW it’s the Work Health & Safety Act 2011
– Employers must ensure health, safety and welfare of all employees, iea safe working environment
– All employers must take out workers compensation insurance
– Visitors must not be exposed to risks while being on‐site
– Employers must monitor bullying in the workplace
– WorkCover inspectors may inspect a workplace
26© Phil Manocchio
Workplace Fatalities
Source: www.theconverstionist.com, April 28, 2015
27© Phil Manocchio
Workers Compensation
• Provides a range of benefits to an employee suffering from an injury or disease related to their work.
• It is also provided to families of injured employees when the injury/disease was caused by, or related to their work.
• In NSW workers compensation is administered by WorkCover who also aim to achieve safe work practices, effective return to work and security for injured workers.
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Anti Discrimination
• Discrimination occurs when a policy or a practice disadvantages a person or a group of people because of a personal characteristic that is irrelevant to the performance of the work eg. racial, sexual preference, colour and age.
• The Federal government is responsible for administering the following federal laws:
– Age Discrimination Act 2004
– Disability Discrimination Act 1992
– Australian Human Right Commission Act 1986
– Sex Discrimination Act 1984
– The Anti‐Discrimination Act 1977 (NSW)
Unlawful discrimination https://www.youtube.com/watch?v=GH‐y17d‐v5o
29© Phil Manocchio
EQUAL EMPLOYMENT OPPORTUNITY
• Equal Employment Opportunity (EEO) is making sure that everyone has equal access to available employment by:
– Ensuring that workplaces are free from discrimination and harassment, and – Providing programs to assist people to overcome disadvantage.
• This means having workplace rules, policies, practices and behaviours that are fair and do not disadvantage people. In this environment, people are valued and respected and have opportunities to develop their full potential and pursue a career path of their choice.
• A number of people have been impacted in the past or continue to be disadvantaged or discriminated against in employment. These people include:
– Women – Aboriginal people and Torres Strait Islanders – Members of racial, ethnic, and ethno‐religious minority groups – People with a disability – Young people under 25
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Economic Influences
• In periods of high economic growth – strong demand for high quality staff, remuneration increases, training programs to overcome skills shortages
• In periods of economic downturns – employment falls – downsizing, more flexible forms of employment and more, temporary forms of employment which reduce, rights & security of employees
31© Phil Manocchio
Technology Influences
Businesses are:
• Restructuring offshore
• Virtual teams
• Electronic communications allow firms to operate anywhere, anytime –
• Allowing access to employees at home or offshore
• But requires on‐going training programs and new protocols to ensure work‐life balance is maintained – in an environment when everyone is on‐call 24/7
Impacts of technology
Positive:
• Allows business to develop more efficient production techniques
• Employees can be up‐skilled in new technologies
• Encourages innovation
Negative:
• Loss of employment
• Employee resistance to change
• Reduced employee morale
32© Phil Manocchio
Social Influences
Changing Work Patterns
• Over the last 25 years declining number of employees working standard 38 hours per week.
• Trend towards part‐time, casual, underemployment, contract and temporary employment in finance, retail and hospitality sectors. Less job security & lower levels of unionisation,more flexible workforce.
• Increasing ‘credentialism’ i.e. level of education/training required in the workplace.
• Greater awareness of wellbeing
Increasing importance of female employment
• Rapidly rising female participation rate in workforce
• Greater focus on women issues e.g. EEO policies
• Ageing population resulting in skills shortages and health burdens are encouraging postponement of retirement
33© Phil Manocchio
Influences – Ethics and Corporate Social Responsibility (CSR)
Ethical business practices are those that are socially responsible, m___________ right, honourable and fair.
A socially responsible ethical employer recognises that:
– pleasant working environment & good working conditions are valuable in motivating & retaining staff. It also reduces staff turnover, increases productivity, reduces training costs and rewards employees for their efforts, which all leads to improved profitability
– Some businesses develop code of practice or conduct of key principles that ensure equity & fairness in the workplace
34© Phil Manocchio
2017 HSC – Question 16
Which of the following actions is an example of corporate social responsibility?
(a) Sponsoring a sporting event
(b) Opening a manufacturing plant
(c) Introducing a community health program
(d) Paying compensation for a work‐related injury
© Phil Manocchio 35
2017 HSC – Question 19
A business implements a new policy that limits the use of work‐related email accounts before 8 am and after 8 pm.
Which consideration has most likely led to the development of this policy?
(a) Economic
(b) Legal
(c) Social
(d) Technological
© Phil Manocchio 36
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Process of HRM
Process of HRMProcess of HRM
Acquisition
‐ Staff needs
‐Recruitment
‐Selection
Acquisition
‐ Staff needs
‐Recruitment
‐Selection
Development
‐ Training
‐ Development & performance management
Development
‐ Training
‐ Development & performance management
Maintenance
‐Monetary & Non Monetary benefits
‐ Legal responsibility
Maintenance
‐Monetary & Non Monetary benefits
‐ Legal responsibility
Separation
‐ Voluntary & involuntary separation
Separation
‐ Voluntary & involuntary separation
37© Phil Manocchio
ProcessesAcquisition
• Analyse the external and internal business environment to determine staffing needs.
• Job analysis involves defining what duties must be performed as well as factors such as the time that will be required to complete the job and working conditions required.
• A job design outlines the duties involved in performing a particular job and how it will interact with other jobs and employees.
• R ________________________ involves attracting suitable applicants to apply for a job and selection involves choosing the right applicant to fill the position.
Development
• I______________ is the first part of the development phase in the employment cycle and involves providing the employee with a good introduction to the business.
• Training involves learning how to do a job more effectively. The aim is to increase the person's knowledge and skills.
• 3. Development focuses on preparing the employee to take on more responsibility.
• 4. Mentoring and c______________ can be used to motivate and develop employees.
• 5. Performance M_______________is used to evaluate employee performance and identify areas for development.
38© Phil Manocchio
Maintenance • Maintenance focuses on the processes needed to retain staff and manage
their wellbeing at work. Maintenance of staff involves looking after:
– Staff wellbeing – encouraging staff participation, staff autonomy– Safety and health – where stress and conflict is minimised– Managing communications effectively – support employee involvement such
as team meetings, social functions, email, newsletters– Complying with industrial agreements and legal responsibilities – work
conditions & superannuation, EEO, anti‐discrimination, bullying– Family Friendly programs – job sharing, flexible working hours e.g.leaving
work at 2pm every Tuesday, work from home, family leave, career break schemes, work‐life balance, helps attract and retain talented staff
• Benefits: increased productivity, improved employee morale, improved communications between managers and workers, reduced turnover, and reduced levels of absenteeism.
• Working at Google Australia ‐https://www.youtube.com/watch?v=MH6NS6NnMhY
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Separation
Voluntary Involuntary
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Strategies in HRM – Leadership Styles
Leadership Styles
autocratic
Democratic/Participative
Coaching/Mentorlaissez faire
bureaucratic
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Strategies in HRM – Leadership Styles
• In 2000 researcher Daniel Goleman, conducted a Harvard Business Review study with over 3,000 middle‐level managers. His goal was to uncover specific leadership behaviours and determine their effect on the corporate climate and each leadership style’s effect on bottom‐line profitability.
• The research determined that a manager’s leadership style was responsible for 30% of the company’s bottom‐line profitability.
• Business Studies Review article – Phil Manocchio July/August 2017
43© Phil Manocchio
Strategies in HRM – Leadership Styles
Case Study – Spotify
• Spotify, a leading technology company is one of many start‐ups to embrace a flatter approach to management. Spotify has small groups of units called ‘squads’ and each ‘squad’ behaves like a lean start‐up in its own right. Each of these squads has a different task yet they all operate a flat management structure.
• Spotify recognises the financial advantages of this participative style, since implementation they have found the more consultative approach between managers and workers has encouraged them to be more engaged in the decision‐making process and the business has been able to quickly adjust their product to suit changing demands from consumers.
• Since being founded in 2006, effective HRM strategies have contributed to the company’s financial success, most recently being valued at $US8bn.
Source: Michael Mankins & Eric Garton, Harvard Business Review, February 9 2017
44© Phil Manocchio
Strategies in HRM – Job Design
• Job design is the kind, variety and number of tasks that a worker is expected to carry out in the course of performing their job. Through job design businesses try to raise productivity levels by offering non‐monetary rewards (intrinsic) such as greater satisfaction from a sense of personal achievement in meeting the increased challenge and responsibility of one's work.
• Job enlargement, job enrichment, job rotation and job simplification are all various techniques used in job design
45© Phil Manocchio
Strategies in HRM – Job Design
• Job enlargement involves the expansion of tasks for a specific role. This is done to provide additional challenge and interest for those in the role. Example: airline ground crews could also have expanded duties such as passenger check in, customer service and on board flight services. This prevents boredom, avoids health and safety issues and grants employees a greater sense of accomplishment.
• Job E_____________ is a common motivational technique used by organisations to give an employee greater satisfaction in their work. It means giving employees additional responsibilities previously reserved for managers. Example: graduate schemes and internships offered by Qantas. These schemes allow the employees to rotate through different roles and departments in order to experience the business. This leads to increased motivation and specialisation, increasing efficiency.
• Job R______________ is where employees rotate from one job to another within the business. Job rotation was designed to promote employee flexibility and to keep employees interested into staying with the business they are employed with.
46© Phil Manocchio
Strategies in HRM ‐ Recruitment
internal
intranet, promotion and referrals
external
internet, newspapers and social media – FB, Twitter, Linkedin and
general skills
flexible and adaptable
specific skills
target shortages
47© Phil Manocchio
Strategies in HRM ‐ Recruitment
• According to the Australian government website Jobactive, as of 2016 the internet was the largest recruitment method. 50% of all vacancies were advertised on the internet via social networking sites such as Facebook, Twitter, Linkedin and Google.
• 15% of vacancies were advertised via employment agencies such as Seek while only 18% were advertised in newspapers – this figure has decreased over the last five years and is expected to decrease further over the next five years.
• It is expensive for businesses to recruit and train new people. In 2016 an Australian Institute of Management study showed that the cost of replacing staff is approximately half the employees wage or salary.
48© Phil Manocchio
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Strategies in HRM ‐ Training and Development
Benefits of training for employees Benefits of training for the business
Opportunity for promotion and self‐improvement
Higher productivity through better job performance and use of human resources
Improved job satisfaction through better job performance
Goals and objectives more effectively met
A challenge — the chance to learn new things
Reduced costs due to less staff turnover and absenteeism, and fewer errors and accidents
Adaptability — greater ability to adapt to and cope with changes
A more capable, ‘mobile’ workforce
49© Phil Manocchio
Skills Shortages in NSW
50© Phil Manocchio
Strategies in HRM – Performance Management
• It’s not about FIRING staff
• Performance management is a systematic process of evaluating and managing employee performance in order to achieve the best outcomes for a business. It aims to align the objectives of business with the employee’s agreed measures, skills, competency requirements, development plans and the diversity of results.
• The emphasis is on improvement, learning and development to create a high performance workforce.
© Phil Manocchio 51
Strategies in HRM – Performance Management
• Developmental – this model of performance management is focused on using data to give regular feedback to develop the individual skills and abilities of employees – so they improve performance and are ready for promotion.
• Administrative – this model of performance management provides information which can be used by management in planning training, development, rewards and benefits with a focus on collecting data to manage the HR function more efficiently.
52© Phil Manocchio
Strategies in HRM – Rewards
LinkedIn Top Companies 2018: Where Australia Wants To Work Now
• At global accounting powerhouse PwC Australia, newly hired employees can expect individual on‐boarding plans and a designated co‐worker to help them settle in even before their first day.
• The company prioritises wellness, with meditation spaces and meetings on treadmills, and also offers flexible scheduling so employees can choose how, where and when they work.
• Another sweet perk: Company policy says no one has to work on their birthdays.
Source: Cayla Dengate, News Editor at Linkedin – March 21, 2018.
53© Phil Manocchio
Strategies in HRM – Rewards
Monetary
• Monetary or extrinsic rewards are a money based reward given when an employee meets or exceeds expectations.
• Examples include cash bonuses, commissions, incentive payments, providing discounts on purchases, profit sharing, share ownership plans, discounts on health and gym fitness memberships, superannuation, holidays, flexible
Non‐Monetary
• Non‐monetary or intrinsic rewards are derived by the individual from the task itself –that is a sense of achievement.
• Some of the most effective motivational strategies include: providing opportunities for advancement, challenging and interesting work, job security, showing respect for efforts, praise for a job well done, employee of the month, a safe work environment and career security.
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Strategies in HRM
costs
skills
supply Ethnocentric
Polycentric
Geocentric
55© Phil Manocchio
Strategies in HRM – Workplace Disputes
Main causes of disputes
• wage demands
• job security & entitlements
• working conditions
• management policy
• WHS
• union & political issues
Effects of Disputes
• higher levels of absenteeism
• low productivity
• low staff morale
• legal claims
• high staff turnover
Statistics & Why:• 2017 (December)• 159 disputes (2016 ‐ 259 down by 100)• 148 400 working days lost (up by 23 900 )
• 80% of labour force employed in tertiary sector• Low union rates• Modern awards/ dispute resolution process• Low EG & low wage growth
56© Phil Manocchio
Strategies in HRM – Types of Disputes
© Phil Manocchio 57
• Lockout
• Work to rule
• Picket
• Strike
• Ban
OvertOvert
• Absenteeism
• Sabotage
• Exclusion from decision making
• Staff turnoverCovertCovert
Strategies in HRM ‐workplace disputes
Resolution
negotiation
mediation
grievance procedures
Conciliation/arbitration
Discussions between parties that result in a compromise and formal or informal agreement
Informal, confidential discussion of issues in a non‐threatening environment in the presence of a neutral third party e.g. FWC https://www.youtube.com/watch?v=zxrjO_cGQAo
More formal and included in awards or agreement , the agreed process to resolve a dispute
Courts/tribunals
58© Phil Manocchio
Strategies in HRM ‐ workplace disputes
Students learn to:
• Analyse the causes of two workplace disputes and the strategies used to resolve them
© Phil Manocchio 59 © Phil Manocchio 60
Indicators of the Effectiveness of
Human Resource
Management Low rates = effective HR
Indicators of the Effectiveness of
Human Resource
Management Low rates = effective HR
Corporate CultureCorporate Culture
Benchmarking Key VariablesBenchmarking Key Variables
Changes in staff turnoverChanges in
staff turnover
Absenteeism Absenteeism
Accidents Accidents
Levels of disputationLevels of
disputation
Workers satisfaction
Workers satisfaction
Quantitative V Qualitative
Quantitative V Qualitative
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Corporate Culture
Corporate culture refers to the values, ideas, expectations and beliefs shared by members of the business. Corporate culture involves assessments of fairness and honesty at the workplace, feelings of appreciation, positive reinforcement, constructive criticism, sensitive and appropriate treatment of conflict and creation of a harmonious atmosphere in the workplace.
Culture Inside Google
https://www.youtube.com/watch?v=c1jlmdkApTQ
© Phil Manocchio 61
Corporate Culture
A damning report into Uber’s ‘toxic’ workplace culture found the company condoned sexual harassment, bullying and retaliation against those who reported problems. (Source ABC News 21 June 2017)
© Phil Manocchio 62
Benchmarking Key Variables
• Benchmarking is a diagnostic tool used to evaluate HR policies and practices.
• Benchmarking compares business performance against industry standards or world’s best practice to determine effectiveness of workplace practices.
• Benchmarking can be either:
– Internal benchmarking – occurs when businesses monitor their own performance in order to identify change in key business activities over time. This means looking at the performance of the business as a whole or comparing the performance of individuals, teams or business units with each other.
– External benchmarking ‐ This involves comparing performance with that of other businesses.
– Best practice benchmarking ‐ comparing performance levels with those of another best practice business.
© Phil Manocchio 63
Staff Turnover
• Levels of staff turnover refers to the rate at which employees leave the business for reasons including dismissal, retirement, retrenchment, poor working conditions, higher rates of pay elsewhere, poor job satisfaction or a mismatch between the employee and the business corporate culture.
• Staff turnover can be voluntary i.e. resignation or in voluntary i.e. retrenchment.
• A survey of 650 people conducted by the ‘Australian Human Resource Institute’ in October 2015, found that the average staff turnover rate in Australia was 16%, a 3% increase from the previous 2012 survey.
© Phil Manocchio 64
Absenteeism
Employers brace for Australia Day sickies
EMPLOYERS are bracing for a financial hit of more than $50 million this Friday with nearly 380,000 workers expected to chuck post‐Australia Day sickies. With Australia Day falling on a Thursday this year, many will find it hard to resist the temptation of a four‐day public holiday long weekend.
Source ‐ Source: Frank Chung, news.com.au January 23 2017
© Phil Manocchio 65
Accidents
• Accidents in the workplace impact employees, employers, families and others on a personal, social, emotional, economic, professional, physical and financial level.
• According to ‘Safe Work Australia’s’ website in its ‘The Cost of Work‐related Injury & Illness report 2012 ‐13’ stated that accidents, illness and disease in the workplace cost the Australian economy $61.8 billion representing 4.1%of GDP.
© Phil Manocchio 66
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Worker Satisfaction
Best place to work in Australia
• According to LinkedIn March 2018, PwC is the best place to work in Australia as the business promotes flexible working arrangements, has no minimum employment requirement for parental leave.
• Staff are invited to take 18 weeks leave regardless of gender or time spent at the company.
67© Phil Manocchio
2017 HSC – Question 23
A business has been rapidly expanding and requires additional staff.
(a) (i) Describe ONE monetary reward that could be offered during the recruitment process. 2 marks
Answer:
Monetary rewards are those rewards reflected in pay or having financial value.
A salary is paid to the receptionist for the work they perform. It includes sick leave, long service leave and superannuation.
(ii) Describe ONE non‐monetary reward that could be offered during the recruitment process. 2 marks
Answer: Non‐monetary rewards do not have financial value. An employee of the month award is recognition either publicly or within the business of the contribution the employee has made.
© Phil Manocchio 68
2017 HSC – Question 23
(b) Outline an issue that could arise during the acquisition process. 2 marks
Answer:
One issue that may arise is the lack of suitable applicants for the position.
This may result in the business not being able to fill the position with an applicant who has the appropriate skills.
© Phil Manocchio 69
2017 HSC – Question 23
(c) The expansion of the business has led to conflict and uncertainty in the workplace. 6 marks
Recommend TWO indicators that could be used by the business to measure the effectiveness of human resource management.
• Level of disputation – if there have been workplace disputes, this could indicate workers have not adjusted to the rapid expansion of the company. The company may have failed to put into place adequate training and development to cope with the expansion. Human resource management has not been effective and must prepare the staff for changes within the workplace or further disputation may occur.
• Changes in staff turnover – high levels of staff turnover may indicate staff dissatisfaction with work. Human resource management needs to address the reasons why staff are leaving the business. To do this, management may conduct interviews with staff before they leave.
© Phil Manocchio 70