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Role of human resource managementStrategic role of human resourcesInterdependence with other key business functionsOutsourcingHuman resource functionsUsing contractors – Domestic, Global-98755319456400Strategic role of human resourcesHuman Resources Management – refers to the management of the total relationship between an employer and employee in order to achieve the strategic goals of the business.Interdependence with other key business functionsFinance – Profitability gains, share prices increases and higher incidence of long-term survivalMarketing – Stronger relationships between the business and its customersOperations – Better relationship with the business and their employees mean a better work performance from employeesOutsourcingOutsourcing - Or contracting out business functions involves the use of third-party specialist businesses, for example, recruitment firms. It aims to take advantage of the specialist skills provided by them and to achieve a reduction in labour costs.Human resource functionsHuman resource functions commonly outsourcedHuman resource areas commonly outsourced for review or developmentRecruitment Induction Leadership training Mediation Outplacement PayrollHuman resources information systems (HRIS) Change managementTraining needs evaluationCompensation (wages and salaries) systems Performance management systems Succession planningHigh performance coaching Employee surveysWritten policies and programs Training and development BenchmarkingUsing contractors - Is an external provider of services to a business. It may be an individual or a business. Primarily used by most businesses to create costs savings or to access greater expertise and capabilities to improve competitiveness.Domestic – Is very common today and avoids the need to employ additional ‘in-house’ staff, along with all the overhead expenses involved.Global – During the last decade, many firms under pressure from global competition turned to offshore contractors in countries such as India and the Philippines to reduce costs. Process outsourcing – Is the dominant form of outsourcing of repetitive, easilymeasured and documented workProject outsourcing – is most commonly found in areas such as human resources, marketing, design, information technology (IT) and research.-10698481662430Key influencesStakeholders – Employers, Employees, Employer associations, Unions, Government organisations, SocietyLegal – The current legal frameworkThe employment contract – Common law (Rights and obligations of employers and employees), Minimum employment standards, Minimum wage rates, Awards, Enterprise agreements, Other employment contractsWork health and safety and workers compensationAntidiscrimination and equal employment opportunityEconomicTechnologySocial – Changing work patterns, Living standardsEthics and corporate social responsibility -10668001669560StakeholdersEmployers – Are those who exercise control over employees, have responsibility for the payment of wages and/or salaries and have the power to dismiss employees.Employees – Are workers under the control of an employer. This control includes the workplace location, the way that the work is to be performed and the extent to which supervision will be exercised.Employer associations – Are organisations that represent and assist employer groups. They are usually respondents to the awards covering the employees of their members, and covering employers in the same or related industry.Trade Unions – Are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions of their ernment organisations – Governments are important stakeholders in the human resource management process, they have significantly affected the industrial relations system as a result of their key roles.Legislator – Our elected representatives pass laws in parliaments (state and federal), which provide the legal framework for industrial relations.Employer – Regarded as pacesetters in terms of responsible industrial relations policies, having introduced practices such as maternity leave, flexitime and affirmative action for women that were eventually adopted in the private sector.Responsible economic manager – Governments operating at the macro level are keen to ensure non-inflationary, stable economic growth and a high standard of living for all Australians. Administrations of Government policies on industrial relations – Through the departments and agencies established, governments are able to implement the legislation they enact.Representative of Australia in the international arena, in foreign affairs, trade and international labour matters – The government generally implements legislation based on the treaties and conventions it signs with international organisations.Statutes - Are laws made by federal and state parliaments; for example, laws relating to employment conditions.Society – Influences HR by its expectations that certain measures be adopted to protect the workers welfare [Safety, Fair treatment]LegalThe current legal framework – The employment contract creates obligations for both employer and employee, and all businesses operate within a legal framework of common law and statute law. The influence of government on the process of determining employment contracts – The Department of Jobs and Small Business is the federal government’s official industrial relations watchdog. Its role is to ensure that national policies and programs are operational, maintain and find employment for Australians and ensure safe, fair and productive workplaces. The employment contract – Is a legally binding, formal agreement betweenemployer and mon law – Is developed by courts and tribunals. [Not made by parliament like statutes]Employer rights and obligations – Provide work, Payment of income and expenses, meet requirements of industrial relations legislation, equity in the work place, duty of care Employee rights and obligations – Carry out duties, maintain confidentiality, account for all money that comes into the business, take care and act appropriately in the workplaceMinimum employment standards – They must be provided by employers and state minimum conditions for employees. 10 National Employment Standards are:Maximum weekly hours of workRequests for flexible working arrangementsParental leave and related entitlementsAnnual leavePersonal/carer’s leave and compassionate leaveCommunity service leaveLong service leavePublic holidaysNotice of termination and redundancy payProvision of a Fair Work Information StatementMinimum wage rates – Is an employee’s base rate of pay for the number of ordinary hours that they have worked and is generally determined by a modern award, enterprise agreement or the national minimum wage.Awards – Is a determination that explains the legally enforceable minimum terms and conditions that apply to a business or industry. [Must be better than national minimum wage]Enterprise agreements – Are collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment. [Must be better than the award]Better off overall test (BOOT) – requires that each of the employees to be covered by the agreement is better off overall than under the relevant modern award.Other employment contracts – As the nature of work changes, greater variety is occurring in the types and features of employment contracts available.Individual contracts – Exist when an employer and an individual employee negotiate a contract covering pay and conditions.Independent contractors – Undertake work for others; however, they do not have the same legal status as an employee.Casual employees – Are in employment that is short term, irregular and uncertain; they are not entitled to paid holiday or sick leave.Part-time contacts - Part-time employees have a continuing employment contract and work less than 38 hours per week.Work health and safety (WHS act 2011) – Designed to encourage safe work practices, provide financial assistance to workers who are injured in the workplace, and assist workers to return to work.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 mon law redress – Can be sought where the employer or another employee has been negligent or breached their duty, leading to serious injury or death.Anti-discrimination – A legislation has been enacted to protect employees from direct and indirect discrimination in recruitment, selection, training, promotion, remuneration, termination and opportunities to access any other employment benefits or practices.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. Equal employment opportunity (EEO) – Refers to equitable policies and practices in recruitment, selection, training and promotion. Affirmative action – Refers to measures taken to eliminate direct and indirect discrimination, and for implementing positive steps to overcome the current and historical causes of lack of equal employment opportunity for women.Unfair dismissal – Is when a worker has been dismissed or threatened with dismissal from their job and believes that this action is 'harsh, unjust and unreasonable'.Economic49435163423700The economic cycle – The demand for labour (employees) is determined by the demand for goods and services within the economy. [In labour shortages people compete for labour by offering higher wages]Structural change – Refers to a change in the nature and pattern of production of goods and services within an economy. This includes a significant growth in the level of services in an economy compared to other sectors.Globalisation – Has increased competitive pressures on Australian businesses, with many increasingly recruiting or outsourcing function offshore. Business many restructure, outsource non-core functions, or subcontract production in order to compete effectively. Corporations are willing to relocate production in order to lower costs [Ford moved to Mexico]Technology Improvements in productivity, communication and competition between businesses. It is causing the nature of production and services to change, and new jobs to be created, while others are made redundant. SocialChanging work patterns – Over the last two decades there has been a dramatic growth in part-time and casual work, largely due to growth in the finance, retail, hospitality and community service industries.Career flexibility and job mobility – Career flexibility and job mobility have increased. Workers are taking more control over their own careers.Increased participation rates for women – The increase in the participation rate over the past three decades has been due to the increased participation by women and older people in the workforce. Ageing of the workforce – Refers to the growth in the average age of the population, due to sustained low fertility and increasing life expectancy. As a result, there are proportionally fewer children under 15 in the population, and more people in older age groups.Early retirement – Early retirement from full-time work is popular today. The average age of retirement from full-time work has increased to an average age of 53 years.Living standards – Standards include work health and safety, regular wage increases, performance bonuses, fringe benefits, leave and superannuation benefits, which they remain keen to preserve. Concerns of Australian workplaces – Businesses that seek to undercut conditions through excessive outsourcing and casualisation of the workforce will be challenged by unions keen to avoid erosion of our living standards.Ethics and corporate social responsibilityEthical business practices – Are those practices that are socially responsible, morally right, honourable and fair.8382004635500Society place expectations on businesses to behave in an ethical way.Ethical business practices: socially responsible, morally right, honourable and fair.For HR, this involves:Providing employees with a pleasant working environment and good working conditionsMaking staff feel secure, confident, equally valued and rewarded for their effortsPerformance motivation and maximised securityGood working relationships and teamworkCommunity supportEthical workplace culture An ability to demonstrate ethical behaviour improves staff retention and absenteeism rates as staff feel more valued and motivated, and attracts positive publicity for the business.Code of conduct – Is a statement of acceptable and unacceptable behaviours in a business.Code of ethics – Is a statement of a firm’s values and principles.Best Practice – Refers to business practices that are regarded as the best or of the highest standard in the industry.Code of practice – Is a statement of the principles used by a business in its operations. It generally refers to practices that are seen as ethical or socially responsible.-96050414385200Process of human resources management Acquisition DevelopmentMaintenance-9625263565020SeparationAcquisitionAcquisition – Is the process of attracting and recruiting the right staff for roles in a businessThe internal environment — particularly the business’s goals and culture. The focusmay be on cost containment, growth, downsizing, improved customer service or quality, or other internal goals. The external environment — including economic conditions, competition, technology, and legal, political and social factors.Recruitment – Is the process of locating and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost.Employee selection – Involves gathering information about each applicant and using that information to choose the most appropriate applicant.Placement – Involves locating the employee in a position that best utilises the skills of the individual to meet the needs of the business.Development Development – refers to enhancing the skills of the employee in line with the changing and future needs of the organisation.Induction – An effective induction program is carefully planned to introduce a new employee to the job, their co-workers, the business and its culture. A well-prepared induction program:Gives employees a positive attitude to the job and the businessBuilds a new employee’s confidence in the jobTraining – The aim of training is to seek a long-term change in employees’ skills, knowledge, attitudes and behaviour in order to improve work performance in the anisational development – Organisational structures are less hierarchical and flatter in structure.Job enlargement – Involves increasing the breadth of tasks in a job.Job rotation – Involves moving staff from one task to another over a period of time in order to multiskill employees.Job enrichment – Involves increasing the responsibilities of a staff member.Job sharing – Occurs when two people share the same job.Mentoring and coaching – Mentoring and coaching are increasingly used to motivate and develop staff with leadership potential. Mentoring – Is a mutually agreed role, which suits experienced staff keen to transfer knowledge and skills through succession planning.Coaching – Is focused on improving skills and performance, and on helping individuals manage specific work roles more effectively.Performance appraisal – Is a process of assessing the performance of an employee, generally against a set of criteria or standards.Maintenance Maintenance – Is the process of managing the needs of staff for health and safety, industrial relations and legal responsibilities, including compensation and benefits, of all munication and workplace culture – Effective workplace relationships depend heavily on the strength of a business’s communications systems.Relationships depend heavily on the communicationMethods include: team meetings, newsletters, surveys, emailsPrevents conflicts and issues, builds positive cultureShould always be constructiveEmployee participation – Improves communication, empowers employees and develops commitmentExample – suggestion boxes, surveys, briefingsBuilds a sense of shared purpose and company identityBenefits – Are often a litmus test of the workplace culture as they are available to all staff.Examples – Paid training, health insurance, flexible working arrangements, leaveFringe benefits tax (FBT) – Is a tax employers must pay on certain benefits they provide to their employees or their employees’ associates, such as a family member. It is based on the taxable value of the various fringe benefits provided. SeparationSeparation – Is the process of employees leaving voluntarily or through dismissal or retrenchment processes.Redundancy and retrenchment – Refer to employees losing their jobs, where the employees’ job or work no longer needs to be done.Dismissals – May occur due to serious misconduct, poor performance or redundancy due to organisational restructuring.Unfair dismissal – Occurs where an employee is dismissed by their employer and they believe the action is harsh, unreasonable or unjust. Strategies in human resource managementLeadership styleJob design – General or specific tasksRecruitment – Internal or external, General or specific skillsTraining and development – Current or future skillsPerformance management – Developmental or administrativeRewards – Monetary and non-monetary, Individual or group, Performance payGlobal – Costs, Skills, SupplyWorkplace disputesResolution – Negotiation, Mediation, Grievance procedures, Involvement of courts and Tribunals-905347110792Leadership styleLeadership style – Refers to ways that managers communicate with their employees to inspire and motivate them to work together to achieve an organisation’s goals.0203835000Job designJob design – Is the number, kind and variety of tasks that a worker is expected to carry out in the course of performing their job.Specific tasks – Is best represented through the Scientific management approach developed by Fredrick Taylor that identified one best way of doing a job and that worker skills should be matched to job requirements.General tasks – Refers to a greater variety of tasks to be performed by workers. The main objective of the provision of a wider variety of tasks is to improve worker satisfaction and productivity.RecruitmentRecruitment – Is the process of locating and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost.Internal recruitment – Involves filling job vacancies with people from within the business.AdvantagesDisadvantagesMotivation for staffBuilds commitment and loyaltyCheaperReinforce negative cultureLead to rivalryNo new skill addedExternal recruitment – Involves filling job vacancies with people from outside the business.AdvantagesDisadvantagesWider applicant poolNew skillsMore diversityHigher riskLoss of productivity at inductionMay not be accepted by internalGeneral skills – Include flexibility and versatility, social confidence, positive attitude, motivation, and the ability to work as a team and/or independently.Specific skills – Are highly specialised and are required for some jobs within science, technology and engineering sectors.Training and developmentTraining – Aims to develop skills, knowledge and attitudes that lead to superior work performance.Development – Refers to enhancing the skills of the employee in line with the changing and future needs of the organisation.Performance management Performance management – Addresses both individual and business performance. Successful individual performance will often translate into the business’s strategic objectives being met.Developmental – Model improves individual performance through establishing objectives such as reaching sales targets that are consistent with achieving the organisation’s goals.Administrative – Model assesses the progress of the business in meeting its strategic goals and where necessary identifying the areas for improvement, such as establishing new goals or employee performance.Benefits of effective performance management:Development benefitsAdministrative benefitsAssist with HR planningEvaluates rewards and benefits programsHelps build best practice cultureHigher productivityBetter financial performanceHelps assess rewards and benefits linked to performanceRewardsMonetary – Are those reflected in pay or having financial value.Non-monetary – Are those that do not have a financial value, such as social activities or retirement planning.Individuals – Are dependent on others and on efficient workplace systems to achieve high-quality performance.Groups – Involves the benefits of improvements and success, such as productivity improvements, cost savings and sales and profit increases, being reflected in rewards for teams, such as shares, cash bonuses or annual bonuses.Performance pay – Refers to remuneration that is based on distributing rewards according to individual employee performance.GlobalIssues such as high domestic labour costs, a skills shortage, especially apparent in some industries, and a relatively small labour pool have made businesses re-think the management of human resources.PolycentricUses host country in staffing with parent country in managementCost Efficient, Good market knowledge, Satisfies local labour demandLimits management experience for host country staffGeocentricUses staff with the most appropriate skillset for a particular role and locationBuilds a pool of managers with global experienceComplex and expensive due to local employment regulations, relocation and retraining costsEthnocentricUses parent country staff in its organisationSatisfies parent country labour demand, brings business culture/practices over thus reducing retraining costsLimits ability to interact with customer and learn from overseas marketsWorkplace disputesIndustrial dispute – Is a disagreement over an issue or group of issues between an employer and its employees, which results in employees ceasing work.Strikes – Refer to situations in which workers withdraw their labour.Lockouts – Occur when employers close the entrance to a workplace and refuse admission to the workers.Pickets – Are protests that take place outside the workplace, generally associated with a strike. Unionists stop the delivery of goods and try to stop the entry of non-union labour into the workplace.Resolution – The Fair Work Commission describes dispute resolution as the processes whereby disputes are brought to an end.Negotiation – Is a method of resolving disputes when discussions between the parties result in a compromise and a formal or informal agreement.Mediation – Is the confidential discussion of issues in a non- threatening environment, in the presence of a neutral, objective third party.Grievance procedures – Are formal procedures, generally written into an award or agreement, that state agreed processes to resolve disputes in the workplace.Involvement of courts and tribunals – Most likely to occur when disputes have passed their nominal expiry date, bargaining has commenced towards a new agreement, and negotiations have failed.Effectiveness of human resource managementIndicatorsCorporate cultureBenchmarking key variablesChanges in staff turnoverAbsenteeismAccidentsLevels of disputation-882869311084Worker satisfactionIndicators Indicators – Are performance measures that are used to evaluate organisational or individual effectiveness.Cooperate culture – Refers to the values, ideas, expectations and beliefs shared by members of the business.798786-210200Benchmarking key variables Informal benchmarking – Includes any strategies such as networking through informal discussions with colleagues in other businesses, undertaking visits to other businesses, researching best practice online and attending conferences.Performance benchmarking – Involves comparing the performance levels of a process/activity with other businesses.Best practice benchmarking – Involves comparing performance levels with those of another best practice business in specific areas using a structured process to gain skills and knowledge and to modify organisational processes.Balanced scorecard benchmarking – Is used for measuring whether the activities of a business are meeting its objectives established in the strategic plan. It benchmarks key performance variables with targets aligned with the strategic plan.Changes in staff turnoverStaff turnover – Refers to the loss of employees by a business who leave for a variety of reasons.In assessing the significance of turnover, it is important for businesses to benchmark their turnover against that of other businesses in the industry; and to determine the type of staff leaving and their reasons.Absenteeism – Refers to a worker who neglects to turn up for work when they were scheduled to do so.Firms need to have much higher staffing levels to cope with high absentee levels. Therefore, revenue is lost as work is disrupted and can lead to lower productivity and higher labour costs.Accidents 173401051875100Accidents at work result in direct and indirect costs to the business. All business need to adopt a systematic, legally compliant approach to OHS.Levels of disputationEmployers need to closely monitor both overt and covert manifestations of industrial disputes to evaluate relationships in the workplace. Employers should be concerned if there are a number of formal grievances reported, as this is an indicator of poor relationships.Work bans – A ban is a refusal of workWork-to-rule – Refusal to perform any additional dutiesSabotage – Action to harm the image or productionGo slow – Work at a slower rateWorker satisfaction Employee satisfaction is a key factor in employee commitment, job performance and staff turnover.Employees who have good relationships with co-workers, enjoy their work activities, receive relevant training that allows them to do their job well, and gain opportunities to grow are more likely to be satisfied and stay with the business.Employee satisfaction is improved by matching the purpose of the business with the skills and cultural fit of the employee.Measure worker satisfaction Turn-over-ratio = Number of people in and out of the business for specific reasons ................
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