human resources

• Strategic Role of Human Resources

  One of the most important KBFs as staff costs are often more that 60% of total costs

  • Retain, reward and motivate effective and skilled employees
  • Improve competitiveness and profitability by ensuring their employees are efficient
• Interdependence


  Influence performance, productivity, efficiency and competitiveness

  • Operations: HR must recruit staff with the relevant skills/experience to produce the product. HR monitors the performance of employees and may implement initiatives like training and development
  • Marketing: Staff must be motivated and skilled to develop products catered towards the target market. Staff actions influence consumers.
  • Finance: Skilled and motivated staff benefits the profitability of the business. Budgets allocate funds towards training and development.
• Outsourcing


  Reasons for outsourcing

  1. Provides the ability to access staff whose speciality is HR management
  2. Allows managers of the business to focus on core business operations
  3. Generates cost savings, reducing the need to employ full-time staff

  HR functions commonly outsourced:

  • Recruitment
  • Induction
  • Leadership training
  • Mediation
  • Outplacement
  • Payroll
• Contractors


  an external provider of services to a business. Can be individual or a business. 

  • Used to create cost savings or to access greater expertise and capabilities to improve competitiveness
  • Different to regular employee as they are on a fixed term contract with a fixed agreed rate, provide their own insurance, responsible for own tax requirements, no legal requirements
  • can be domestic or global
  • global can be cheaper but difficulty controlling quality and reliability, cultural differences
• Stakeholders


  any individual or group that has a common interest in or is affected by the actions of an organisation. conflict can arise from competing interests

  Six stakeholders are:

  • employers
  • employees
  • employer associations
  • unions
  • government organisations
  • society
• Employers


  • Handle human resource management issues
  • Develop programs that focus on improving business performance
  • Not all employers support government policy enough to engage in full confrontation with unions and employees, as the costs are high
• Employees


  • Employees today desire more challenging and interest work and involved in decision making processes
  • Increased mobility of work → businesses struggle to maintain staff
  • Current trends → casual workplace, people desire full-time work
• Employer Associations


  • Act on behalf of employers in collective bargaining sessions and before industrial tribunals, courts, commissions and committees
  • Provides advice and represents employers on a range of issues such as awards, unfair dismissal, discrimination, HR, policy change
  • Lobby governments with the interests of employers and industries
• Unions


  • Organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions of their members 
  • Acts as a voice for employees and a bargaining representative during negotiations for employment contracts
  • 12.5% of employees are trade union members
  • Common in dangerous workplaces or for vulnerable people
  • Top industries are education and training, public administration and safety, electricity, gas, water and waste services
• Government Organisations

  Roles of government

  • Legislator: pass laws in parliament to provide legal framework 
  • Employer: federal and state governments employ ⅓ of Australians
  • Economic manager: economic growth and high standards of living
  • Administrator of government politics on industrial relations e.g. ASIC
  • Representative of Australia globally: international treaties

  Influences HR

  • statute law
  • Industrial tribunals and courts (FWC)
  • federal court
  • other government agencies e.g. AHRC
• Society


  • Have no direct influence but workplace behaviours are reflective of behaviours that are upheld in society 
  • e.g. issues such as discrimination and unfair working conditions can look poorly on the business, must consider CSR
• The Employment Contract


  Employment contract: a legally binding, formal agreement between an employer and employee 

  • Includes awards, enterprise agreements and individual contracts
  • Valid and legally enforceable when: consent is genuine, both parties are benefited, both parties have the capacity to contract, one party offers and the other accepts
  • Key elements of contract: wages, leave, duties, supervision, hours, location, bonuses, overtime, superannuation, promotion policy
• Rights and Obligations

  Employers:

  • Duty of care: provide employees with safe workplace
  • Fair pay: pay agreed remuneration set in contract
  • Dismissal: if not meeting conditions of employment contract, not obeying lawful instructions
  • Provide work: can provide work, if not, must give paid leave
  • Leave: provide leave as agreed in contract
  • Workers compensation: must have insurance and return-to-work program

  Employees:

  • Obey reasonable commands
  • Work with skill, competence and care at best of ability
  • Duty of good faith and confidentiality: best interests of employer
• Minimum Employment Standards

  • Twelve national standards that must be provided by employers and state minimum conditions for employees
  • Provide a safety net for employees, particularly the vulnerable and low-paid employees

  Includes:

  1. Maximum weekly hours of work (38)
  2. Requests for flexible working arrangement
  3. Parental leave
  4. Offers and requests to convert from casual to permanent employment
  5. Annual leave
  6. Superannuation contributions (11%)
• Minimum Wage Rates


  The National Minimum Wage is $24.10 per hour or $915.90 per week (as of Oct 2024)

  Calculated by considering:

  • The performance and competitiveness of the national economy
  • Promoting social inclusion through increased workforce participation
  • Relative living standards and the needs of low income earners
• Awards


  collective legally binding documents containing minimum terms and conditions of employment, in addition to any legislated minimum terms for an industry or occupation

  • Includes: minimum wage, types of employment, flexible working arrangements, overtime and penalty rate, hours of work, allowances
  • Cover large proportion of employees in lower skilled occupational groups e.g. hospitality, retailing, trade
  • consistency amongst employees for large industry, more equal for employees, simple for employers
  • fair but limited negotiating power, lack of individual recognition
• Enterprise Agreements


  Collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment

  Must be approved by FWC and fulfil the criteria:

  • Passes the ‘better off overall test’ - compared to modern awards
  • Has a nominated expiry date
  • Representatives bargain in ‘good faith’ during the negotiations

  Advantages/Disadvantages

  • greater employee involvement and empowerment, greater flexibility on conditions, can better meet needs of employees
  • more time consuming to conduct, can be expensive
• Individual Common Law Contracts


  when an employer and an individual employee negotiate a contract covering pay and conditions

  • Common in the private sector (e.g. property and business services) and at the professional/managerial level
  • Apply to those who earn more than $142,000 (changes annually)
  • employee has all negotiating power, tailored to their needs, often relating to wages and bonuses
  • competitive/rivalry, inequality for other employees, no transparency
• Other employment contracts

  Independent contractors:

  • Consultant/freelancer that undertakes a contract, service or project for another business,
  • must cover own tax, superannuation and leave

  Casual work contracts:

  • Contracts for short-term, irregular, or seasonal work
  • Reduces costs of recruitment and dismissals
  • Miss out on training and promotion, less committed to the business

  Part time contracts

  • Have continuing employment contract and work less than 38 hours per week, less entitlements than full-time
  • Have increased over time - 29% of all employees (mostly women)
• Work Health and Safety


  Safe Work Australia: conducts research and develops national standards, codes of practice and common approaches to WHS legislation

  Requirements of the Work Health and Safety Act 2011: 

  • Employers ensure the health, safety and welfare of all employees → safe workplace, training, supervision
  • Workers’ compensation insurance
  • Employees who engage in bullying, skylarking or interfering with machinery can face fines
  • Health and safety committees must be established (if > 20 employees)
  • SafeWork inspectors may inspect the workplace, collect information, and issues notices
• Worker's Compensation


  a form of insurance payment to employees if they are injured at work or become sick due to their work.

  All employers must:

  • Take out a policy with a licensed insurer
  • Keep time and wage records, internal accident forms
  • Notify insurers of significant injuries in 48 hours
  • Establish a return to work plan

  Injured employee may claim compensation for:

  • Loss of wages for time off work
  • Medical and rehabilitation expenses
  • Permanent impairment of loss of use of body
• Anti-Discrimination


  Discrimination: occurs when a policy or a practice disadvantages a person or a group because of a personal characteristic that is irrelevant to the performance of the work 

  • protects employees from direct and indirect discrimination in recruitment, selection, training, promotion, termination and opportunities to access other employment benefits
  • Employers must comply with legislation and audit all policies and practices to ensure they do not discrimination
  • Racial Discrimination Act 1975 
  • Sex Discrimination Act 1984
  • Age Discrimination Act 2004
• Equal Employment Opportunity


  Equal employment opportunity: refers to equitable policies and practices in recruitment, selection, training and promotion

  • Ensures the best person for the job is chosen with the skills and abilities most appropriate to the job
• Economic Influence on HR


  The demand for labour (employees) is determined by the demand for goods and services within the economy

  • Boom: Sales increase, prices increase, production increase, inflation rises, demand for employment increases, wages increase
  • Recession: Sales decline, prices fall, decrease production, shifts are reduced, cost-cutting measures, unemployment rises, wages decrease
• Technological Influence of HR

  Positive impacts:

  • Businesses develop more efficient production techniques
  • Employees are upskilled
  • Fosters continuous learning and teamwork
  • Access employees at home - those restricted by location/traffic
  • Reduces repetitive-nature of labour intensive work

  Negative impacts:

  • Loss of employment as technology becomes main tool
  • Employee resistance to change
  • Reduced employee morale as they feel less valued
  • Lower levels of employee empowerment and decision making
• Social Influence - Changing Work Patterns

  1. Career flexibility and job mobility - Creative and knowledge based fields provide the most flexibility in the workplace
  2. Female participation rate - Has increased by 20% (since 1980) due to changing social expectations, increased education, access to childcare, and more flexible working arrangements
  3. Ageing workforce - Shortage of skills so government respond by upskilling population, incentives to encourage staff to postpone retirement and continue working
  4. Early retirement - Average age of retirement has increased (58 for males, 47 for females)
• Social Influence - Living Standards


  • Australia has high standards of living → e.g. WHS, regular wage increases, performance bonuses, leave and superannuation benefits
  • Concerns for erosion of living standards by unions are based on:
  • Excessive outsourcing and casualisation of workforce, shifting production overseas
  • Social expectations of home ownership, holidays, consumer goods
  • Loss of weekends for families working flexible hours
  • The blurring of work and home lives due to electronic communications, being ‘always on’
  • Lack of support for carers in out community
• Ethics and CSR


  Ethical business practices: practice that are socially responsible, morally right, honourable and fair

  • Performance and motivation are maximised when staff feel secure, confident, recognised, safe and equally valued
  • Unethical practices leads to poor morale, low productivity, heavy costs and industrial disputes
  • Current ethical issues → e.g. unequal pay, safety of employees, providing women with safe spaces (e.g. breastfeeding), diversity

  Code of conduct: a statement of acceptable and unacceptable behaviours in a business
• Ethics and CSR


  How employers can be ethical:

  • Compliance with social justice and legislation
  • Providing a safe and healthy work environment
  • Improved communication, teamwork, empowerment
  • Study leave and training opportunities
  • Flexible working hours and conditions 
  • Code of practice for employees, customers and suppliers
  • Evaluating and benchmarking performance against best practice
• Acquisition


  Acquisition involves analysing:

  • The internal environment: business goals and culture, cost, growth, downsizing
  • The external environment: economic conditions, competition, technology, legal factors 

  Three steps to acquisition:

  1. Recruitment: locating and attracting the right quantity and quality of staff to apply for employment vacancies at the right cost
  2. Selection: gathering information about each applicant to choose the most appropriate applicant
  3. Placement: locating the employee in a position that best utilise the skills of the individual to meet the needs of the business
• Development


  ensures that experienced and talented staff are retained by enhancing employee’s motivation and commitment to the business through promotional opportunities

  • Employees who feel competent and recognised for achievements are more motivated

  Development involves:

  • Induction
  • Training
  • Organisational Development
  • Mentoring and Coaching
  • Performance Appraisal
• Development - Induction


  To introduce a new employee to the job, their co-workers, the business and its culture to provide support by building confidence and establishing good working relationships.
• Development - Training


  Aims to seek long-term change in employees’ skills, knowledge, and behaviours to improve performance. Seen as an investment in the business to overcome weaknesses, maintain staff commitment and adapt to change.
• Development - Organisational Development


  Organisational structures today are less hierarchical and flatter in structure. This benefits employees through shared ideas, more autonomy and efficiency, however, it reduces promotional opportunities. 

  Strategies to motivate and retain staff

  • Job enlargement: increasing the breadth of tasks
  • Job rotation: moving staff from one task to another
  • Job enrichment: increasing responsibilities
  • Job sharing: where two people share the same job
  • Self managing teams: roles and decisions determined by members
• Development - Mentoring and Coaching

  Mentoring: a mutually agreed role, which suits experienced staff keen to transfer knowledge and skills to prepare for future roles

  • No time frame, personal relationship, unstructured, benefits individual through personal growth more than business

  Coaching: focused on improving skills and performance, helping individuals manage specific work roles more effectively 

  • Specific to employee’s work function, specific time frame, more structured, benefits business through improved performance 
• Development - Performance Appraisal


  A systematic process of analysing and evaluating employee performance against a criteria for strengths, weaknesses and opportunities for development. 

  • act as a measurement to determine promotion and pay rises
  • identify employees’ training and development needs

  Performance appraisal tools

  • Interview: formal discussion between supervisor and employee
  • Management by objective: objectives set for the employee, performance rewarded according to results
  • 360-degree feedback: employees receive feedback anonymously from peers or managers
• Maintenance


  processes needed to retain staff and manage their wellbeing at work, involves:

  • looking after staff wellbeing, health and safety,
  • managing communication effectively
  • complying with industrial agreements and legal responsibilities

  If the firm retains loyal and committed workers, it will:

  • Increase its productivity
  • Improve the level of morale among workers 
  • Improve communication between management and workers
  • Reduce level of absenteeism
  • Decrease costs through lower staff turnover
• Maintenance


  Following elements are key:

  1. Communication - includes team meetings, social functions, digital communications
  2. Workplace Culture - focus on building trust and direct communication, recognition of staff achievement
  3. Employee Participation: to improve communication, empower employees, develop their commitment to the business e.g. participation in collective bargaining, participation through ownership
• Maintenance


  Family friendly workplace features:

  • Workplace participation and training
  • Flexible working arrangements
  • Family support
  • Childcare
  • Leave
• Separation

  Voluntary Separation

  • Resignation: formal act of leaving
  • Relocation: transfers employee to another location and pays for expenses
  • Voluntary redundancy: employee agrees to leave their job because employer wants to reduce staff
  • Retirement: leaving job and ceasing work

  Involuntary Separation:

  • Dismissal: termination of employment
  • Unfair dismissal: employee believes dismissal was harsh, unreasonable or unjust
  • Contract expiry: agreement is over and employee must leave
  • Retrenchment: employee's job is no longer required and they are forced to leave