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BUSINESS STUDIES TOPIC 4: HUMAN RESOURCESROLE OF HUMAN RESOURCE MANAGEMENTHuman resources are the processes of managing employees in a workplace which involves:Reviewing goals of the businessRewarding valued employeesWorking within the legal framework that regulates the employment relationshipStrategic role of human resourcesHuman Resource Management: is the process of managing staff within an organisation, focusing on the relationship between the employer and employeeEmployer: for legal purposesExercises control over employeesHas responsibility for payment of wagesHolds power to dismiss employeesEmployee: is a worker under an employer’s control which may involve:Location of workplaceWay in which work is performedDegree of supervision involvedHR sees employees as an asset rather than a cost, encouraging open communication & goal orientationHR is extremely important as labour is 60% of a business’ operational costsstrategic role is designed to assist businesses to better meet the needs of their employees while promoting company goalsHR management deals with: recruitment, training & development work incentives & firingAbility of being proactive & adopting long-term think approachManagers may seek to affect & improve HR policies Business must also develop appropriate performance review measuresBenefits of long term (strategic) role to HR:Development of highly qualified workforceEmployment of a workforce relevant to organisation needs of a businessInterdependence of key business functionsInterdependence: relationship between each of the key functional areas within an organisation and how this impacts on its ability to achieve goalsEach area will rely upon the other to conduct their role & activities in a way that contributed to the successful operation of a businessHR is heavily dependent with other key business functionsOperations & HR: the operations function works closely with human resources to ensure that the business has recruited staff with relevant skills & experience to produce the productHR will monitor performance of employees involved in the production of g & s e.g. training and developmentQANTAS Case StudyHR AND OPERATIONSEffectiveness of operations affected by quality of human resources Adoption of new technology e.g. new aircraft, new check in system (Amadeus) requires staff to be trained Operational changes such as cutting of flights during GFC change size and shape of workforceMarketing & HR: staff must be motivated & skilled to develop products within the business that cater to the needs & wants of potential customersThrough marketing that business is able to determine skills for employees to produce desired productsQANTAS Case StudyHR AND MARKETING Right staff must be employed and trained to create service that satisfies QANTAS’ consumers Features of product come through market research Finance & HR: budgets are often established that allocate funds towards training and workplace education issuesHR must also work within these budget to provide needs for its employeesQANTAS Case StudyHR AND FINANCERecent financial management decisions e.g. outsourcing, cutting flights have affected staff levels and level of industrial disputes Staffing is QANTAS’ biggest expense and effective management of staff is essential for QANTAS to maintain profitability and productivityOutsourcing48895001333500Outsourcing: is when a company takes part of its business functions and gives it to another company to complete Outsourcing: or contracting out business functions involves the use of third-party specialist businesses e.g. recruitment firms. It aims to take advantage of the specialist skills provided by them to achieve a reduction in labour costs Some businesses lack funds to employ specialist HR managers to manage the role of employment relationsOften used to obtain a superior service better functional quality & lower cost service than would be provided internallyMajor areas outsourced in Aus.:Properly & facilities managementPayroll, administration support services, call centres etc. Human resource functionsoutsourcing allow firms to focus on their core business, while HR assist by planning growth, development & management of staff may also be used to review business practises & implemented strategies to transform the business using ‘independent’ consultantsreasons for outsourcing provides ability to access staff who specialise in the management, who have better understanding of employment relations Allows managers of business to focus on core business functions (recruitment, training development)Decision of a business to outscore its HR function can generate cost savings reduces need for full-time staffIssues concerning outsourcing human resource functionChance that company to which HR is outsourced to may lack an understanding of the key aspects of the business e.g. business culture/workplace conflictKey relationship between management and staff must continue to be developed within the business itselfUsing contractorsContractor: is an external provider of services to a business. It may be individual or a business Contractors are obtained for primarily processing functions (repetitive & easily measured)Recommended for non-core functions allowing staff to focus on the broader aspects of managing a firm D: cost increases, loss of quality, difficult coordinating activities’ & difficulty monitoring quality & performanceIndependent contractors: exist in a situation where an individual’s employment by one employer is not ongoing & agreed fee is paid for the service e.g. lawyers, buildersContract of service: is where an employee offers his/her services to an organisation on a regular basis & is subject to lawful control & authority of the employerDomestic contractors Contracting people within your country Attractive for SMEs lacking capacity to undertake internal auditing, compliance updatesQANTAS Case StudyOUTSOURCING - DOMESTIC SUBCONTRACTINGUses domestic subcontractors to create cost savings, access greater expertise and improve competitivenessDomestic voice, data and domestic services – Telstra Data centres, mid-range computing operations – IBM Global contractorsUse of foreign contractors involves using global contractors as an external provider of services Allows Australian business to access use of labour without having to consider minimum labour requirements and WH&SQANTAS Case StudyOUTSOURCING - GLOBAL SUBCONTRACTING Cost savings, access greater expertise and improve competitiveness Maintenance jobs – Singapore and NZ IT applications support and maintenance – India Reservation system (Amadeus) – Munich based (involves moving of inventory of fares, seats and boarding passesKEY INFLUENCESStakeholders Are any individual/group that has a common interest in/is affected by the actions of an organisation 12972-14986000Stakeholders need to be considered apart from employer & employeeEach stakeholder seeks to protect & promote its own interestInclude unions, employers, society, employer organisations, employees & government organisationsemployersis the individual/organisation that pays others to work for its businessoften the owners & take responsibility for the organisations goalsin large businesses:managers are voted on by shareholders to take on this responsibility and to consult with owners to develop strategiesHuman resources department specialist units un a business that have the main role of managing the issues involved in the employment relationship are also hiredTheir roles include:Working with other departments to recruit the appropriate staffImplementing a range of training and development programs to cater for the changing staffing needs QANTAS Case StudyINFLUENCE ON HR - EMPLOYERS Has recently reformed employment relations practices to cut costs and increase labour flexibility Restructured organisation, increased outsourcing, hired more casual staff etc employeesemployees: refer to an individual who provides his/her skills to a business in return for regular source of incomewere traditionally just workers but are now more often considered in decision making processfamily-friendly practises such as childcare centres, flexibility in working times have been initiatedemployees with the assistance of trade unions have encourages employers to introduce family centred entitlementsincrease job mobility in the workforceQANTAS Case StudyEMPLOYEES Employs over 33 000 full time employees Employees’ concerned with maintenance of existing levels of pay, working conditions and job securityHave heavily supported union action in recent years employers’ associationsemployer associations: are organisations that aim to promote the interest of employers within the business environmentthey lobby governments to develop policies that enhance the interest of employers & consult with governments on changes to key policy issues e.g. the Business Council of Australia & NSW Nurses AssociationThe Australia Council of Trade (ACTU): lobbies the government and federal government provide improved working conditions and wage increases for Australian employeesNational wage case: where trade unions, employer associations and the federal governments provide arguments to FWA on the appropriate level of increase to minimum wagesShop steward: the unions representative in the workplace. They act as the first point of contact between the union and its members McDonald’s Case StudyMcDonald’s Australia is a member of The Franchise Council of Australia (FCA).The FCA represents franchisors, franchisees and suppliers. McDonald’s is also a member of the Australian Industry Group (AIG), which is an employer organisation promoting members’ views to "government, regulatory agencies, tribunals, interest groups, the community and the media.” For example, AIG used its influence to try to prevent fast-food employers having to pay employees penalty (higher) rates on weekends Unions 374713512827000Unions: are organisations formed by employees in an industry trade/occupation to represent them in efforts to improve wages and the working conditions of their members 1904 unions were established, giving them a powerful role in Human Resourcesunions assist with workplace disputes and act as a bargaining agent in wage negotiationsadvise members on rights, wage levels WH& S etc.e.g. Australian Liquor, Hospitality & NSW Nurses Associations ACTU: Australian Council of Trade Unions lobbies the government for improved working conditions and wage increases Also works with other unionsUnion membership has declined since 1980s due to:Move toward private sector organisations providing services on behalf of the government rather than public sectorMove from manufacturing based economy service based as traditionally service has lack of unions (structural ?)Growing number of casual and part-time workers ($$)Unions are not as used by women vs. men Shop steward: the unions representative in the workplace. They act as the first point of contact between the union and its membersMcDonald’s Case StudyTrade unions have traditionally had a minor impact on the way McDonald’s conducts human resource management worldwide. over 4,000 McDonald’s employees in Australia now belong to the Shop, Distributive & Allied Employees’ Association (SDA) which makes up only around 4% of the national workforce, the SDA was the party that negotiated the enterprise agreement for all McDonald’s workers in Australia. The SDA has come under media scrutiny for signing off on the McDonald’s Australia Enterprises on loss of penalty rates on weekend work Government organisations1270027114500Government organisations established the legal framework by which employers, employees and trade unions co-exist and operate within the employment relationshipAwards: a legal document that specifies the minimum working conditions that apply to all people employed in a common industryModern award: an industry/occupation-based award which covers all private sector employers & employees who fall within their scope, replacing all existing national system awardsWorking conditions: non-wage features of employees’ workplace contractCertified agreement: negotiated between an employer & all its employeesEnterprise bargaining: the process of negotiating an enterprise agreementBOOT (better off overall test): a test by FWA to examine whether employees will be any worse off if they sign a new wage agreementIndustrial dispute: a problem that arises between an employer & employee/group of employees in the workplaceConciliation: when FWA offers suggestions to help resolve a disputeFair Work Australia (FWA): an organisation established under the Fair Work Act in 2009. Their primary functions encourage the prevention and settlement of industrial disputes between employers & employees through conciliation and arbitrationFederal court: government federal organisations where appeals about Fair Work can be placedMcDonald’s Case StudyState Governments – Around Australia, state governments collect payroll tax and administer Workplace Health and Safety (WHS) legislation through such agencies as SafeWork NSW. SafeWork NSW influences human resource management by mandating that all tasks McDonald’s employees carry out are performed it a safe manner. The NSW Government also partly funds McDonald's training. This funding amounted to $1.8 million in the 2016 financial year. Society Society is often ignored but most important stakeholder in the management processThis is because businesses operate within society and the decisions they make impact on societyPeople who own businesses and people who work in them make up most of societyDecision making in the human resources process influences the availability of goods and services and the prices they are sold at McDonald’s Case StudyThe way in which McDonald’s manages human resources is impacted by societal expectations. As an example, society place a great value on high school education. As a result, McDonald’s has a Responsible Student Employment Policy which restricts the hours school students are allowed to work. Legal The current legal frameworkEmployment relationship is subject to considerable number of regulations and lawsThe government has established the legal framework by which employers and employees are encourages to coexist cooperativelySocial, political & economic forces have a considerable impact on employment relationshipSocial justice: in the workplace involves businesses being responsible & behaving in a fair and ethical manner towards their employees, customers and the broader societyCentralised industrial relations system: is a collectivist approach in which disputes are referred to industrial tribunals e.g. Fair Work Commission for conciliation and arbitrationDecentralised industrialised relations system: employers and employees negotiate wages and working conditions in the individual workplace through collective/individual bargaining and without the involvement of tribunals Productivity commission is the government’s independent research and advisory body in respect to a variety of economic, social & environmental issues affecting the welfare of AustraliansIts feature is to help governments make more effective policies in the long term interest of the Australian communityMcDonald’s Case StudyCurrently, all Australian employees of McDonald’s, whether at a company or a franchised store,?fall under the McDonald’s Australia Enterprise Agreement 2013.This enterprise agreement was negotiated between McDonald’s Australia and the Shop, Distributive & Allied Employees’ Association (SDA), which represented the workers. 97% of McDonald’s employees voted to accept the enterprise agreement. The agreement is one of the largest enterprise agreements in Australian labour history. With such a large workforce, & similar tasks, an enterprise agreement can be a quicker, easier and fairer method of industrial relations negotiation than individual contracts. Individual contracts can often be time-consuming to negotiate, difficult to administer and may potentially leave McDonald’s exposed to claims of using its size and strength against its workforce – predominately young people in their first job. A 2017 report in the Sydney Morning Herald claimed that some McDonald’s employees are worse off under the current enterprise agreement.The employment contractEmployment contract: is a contract in the Australian workforce between an employer and their employees Employment contract is based on the employee offering his/her services on a regular basis and being subject to the lawful control and authority of the employerAn employment contract creates rights & responsibilities for employers and employees e.g. safe workplace, minimum wage and anti-discriminationWritten contract is the bestCommon law (rights & obligations of employers & employees)Common law: is developed by courts and tribunals Under common law employers and employees have basic obligations in any employment relationship, regardless of nature of contract Duty of care: is a business’ legal obligation to provide all its employees with a safe & healthy workplace. Skills, knowledge and tools must be provided (includes warning employees of risks)Duty to pay agreed wage: the legal obligation to pay the employee the correct, legal wage. Employees in a contract must be paid the amount in the agreement Duty to provide work: the responsibility of the employer to provide full-time and part-time staffEmployees must be given the opportunity to leave the business with financial compensationsDuty of employees: employees must offer their labour to a businessDuty to obey lawful instructions & commands: the employees are expected to follow the instructions of supervisors & senior management. These instructions must be lawfulMinimum employment standards10 national employment standards have been developedthese include:maximum weekly hours of workrequests for flexible working arrangementsparental leave and related entitlementsannual leavepersonal/ carers leave & compensation leave community service leavelong service leave public holidaysnotice of termination and redundancy payprovision of Fair Work Information Statement Minimum wage ratesare an employee’s minimum rate of pay for hours worked FWA is responsible for ensuring that employers & employees have to agree to pay on the minimum or above rateMinimum wages are determined yearly & different according to experience & qualifications AwardsAre legal documents that outline the minimum wage & working conditions for all employees in a particular industryEstablished through negotiations b/w employers & associations Under the Fair Work Act, parties to a wage agreement may apply to Fair Work Australia to have an award changedModern awards replace 2400 existing awardsIndividual flexibility arrangements: allow an employer and employee to come to an agreement that varies the modern award/enterprise agreement to address their individual circumstancesContent in modern awards: base pay rate, overtime and penalty rates, allowances, leave & loading, superannuation entitlementsEnterprise AgreementsAre collective agreements made at a workplace level b/w an employers and a group of employees about T& C’s of employment Collective agreements: are made b/w a group of employees (or one or more union representing employees) and an employer or group of employersKey features: pay rates, penalty rates, overtime, allowances, hours, leave 3 types of enterprise agreements:single enterprise agreement: single employer, group of employeesmulti-enterprise agreements: 2+ employers & groups of their employee. May occur if they share common funding, operate collaboratively & have common regulatory system e.g. groups of hospitalsGreenfields agreements: single-enterprise & multi-enterprise relating to genuine new enterprise of the employers that are made before any employees to be covered by the agreement are employedBOOT (Better Off Overall Test): requires each of the employees to be covered by the agreement is better off overall then under the relevant modern awardOther employment contractsIndividual contracts: exist when an employer & an individual employee negotiate a contract covering pay & conditionsIndependent contractors: often known as consultants or freelancers, undertake work for others; however, they don’t have the same legal status as an employee Causal employees: employees employed by a business for short periods of time. They must do a minimum of 1-3 shifts a week. Receive no holiday/sick leave entitlement. Employer can choose when they workPart-time: work >38 hours per week Fixed term contracts: the use of labour for only a specific period of time. Bother parties must agree to this time periodWorkplace health and safety & workers’ compensationOccupational Health & Safety Act 2000 NSW: establishes the rights & responsibilities of employers in the workplace in regard to employers & employeesWork Health and Safety (WHS) Act 2011: employers must ensure the health, safety & welfare at work of all employees by providing a safe system at workSafe Work Australia has harmonised WHS laws which they have created a national system for WHSWorkers compensation: provides a range of benefits to an employee suffering from an injury/disease was caused by/related to their workLaws & regulation work injuries are done by WorkCover Workers Compensation Act 1987 (NSW): govern the process of employees gaining financial compensation for injuries sustained at workEnsure the health, safety & welfare of employees by providing a safe system of workTake steps to ensure that people on-site who are not employers are not exposed to various risks from workMcDonald’s Case StudyThe Standards of Business Conduct – The Promise of the Golden Arches outlines that McDonald's is committed to providing a safe working environment. It mandates that accidents and unsafe practices must be reported promptlyMcDonald's Australia's main measurement of workplace injuries is known as the Lost Time Injury Frequency Rate (LTIFR), which?is calculated as the number of hours lost to injury per 1 million hours worked. The latest available statistics show McDonald’s Australia has work to do in this areaAs a self-insurer in NSW, McDonald’s Australia is regularly audited by NSW WorkCover. The company has received favourable results in these audits. McDonald’s Australia also makes some of its Work Health and Safety Policy available publicly. Anti-discrimination and equal employment opportunitydiscrimination occurs when a policy/practice disadvantages a person/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 & practises in recruitment, selection, training & promotion Anti-Discrimination laws include:Sex discrimination Act 1984Racial Discrimination Act 1975Human Rights & Equal Opportunity Commission Act 1986Disability Discrimination Act 1992McDonald’s Case StudyMcDonald’s employs a Chief Diversity Officer who oversees worldwide efforts to make the business a diverse and fair workplaceMcDonald's aims for a diverse workforce. More than 70% of US employees are either women or from an ethnic minority.In Australia, McDonald’s has a partnership with Job Centre Australia who run a program called “Golden Opportunities”. This program aims to place job seekers with a disability into employment with McDonald’s. To date, over 600 such jobs have been filled.McDonald’s uses all of these avenues in its aim to maintain a diversified workforce free from discrimination. Economic16954511811000Labour is a derived demand from the demand for goods and servicesPeaks in business cycle: shortages of labour due to higher demand for g & s higher wages Wage increase demand may lead to speculative πTroughs in business cycle are downturns Recession: decrease in demand for g & s U/E increasesStructural ?: refers to a ? in the nature & pattern of production of g & s: within an economyThis increases a significant growth in the level of service in an economy compared to other sectorsBusinesses fuel production, price changes, employment & standard of living Level of economic activity determined by C + IEmployment increases increased Consumption & InvestmentImpact of π: during periods of wage negotiations, employees seek higher wages increased cost of productionRise in prices of g & s (π expectations)Globalisation: is the integration of the world’s economies into a single market where g & s can be traded with easeCauses increased competition & workers are retrenched when services are no longer needed increase U/EEmployees need to receive legal entitlements if retrenched McDonald’s Case StudyHuman resource management at McDonald’s is greatly impacted by economic conditions. “The numbers don’t lie,” said CEO Steve Easterbrook when he announced a major restructuring program at McDonald’s US corporate headquarters in early 2015.This included making redundant 135 employees from the United States and 90 employees based outside the US. This restructure was expanded at the November 2015 investor meeting.Technological Technology: seeks to improve the quality of products & efficiency with which they have been producedIts impact on labour has been both positive & negative Technology has caused nature of production & services to change, new jobs to be createdUse of new communication methods POSITIVE NEGATIVEMore efficient production techniquesFosters teamwork whereby staff become mentors to colleagues through learning technologiesEncourages employees to deliver product/service in new & improve wayLoss of employmentEmployee resistance to change as the workforce becomes reluctant to the use of new technologiesReduced employee morale as workforce feels less valuedMcDonald’s Case Studyall McDonald’s employees use Metime – an online platform that is used for such things as rostering, pay and training. Each employee has a personal login to this system. This helps McDonald’s to maintain effective communication with employees. Another example of the impact of technology is how tasks at the restaurant are carried out. McDonald’s has been rolling out self-service kiosks and mobile ordering apps, which remove the need for the customer to interact directly with an employee to place an order. SocialSociocultural shifts have drastically altered the typical workforce More multicultural workplaces & increase in womenMany employees want to achieve balance between work and family- changing work patterns Growth in casual & part-time work due to increased service industries Greater flexibility and job mobility in the workforceCasualisation of the workforceWomen now account for greater proportion of Australian workforce and are in under-represented positions of power Technological developments have facilitated the considerable decline in employment in Australia’s manufacturing sector Fewer unskilled jobs available within the market Ageing workforce: growth in average age of population due to sustained low fertility and increasing life expectancyEarly retirement causing government to raise the working ageLiving standardsLess educated people, who lack skills & qualifications may often be employed in industries with low wage rates Many people are scared to challenge their employers for fear of losing their jobsAustralia has high living standardsThis is due to W H & S, wages increases, performance bonuses, fringe benefits & super benefitsMcDonald’s Case StudyAt its corporate headquarters, McDonald’s Australia tries to recognise and cater for individual staff needs. For example, it has a work from home policy in place, allowing greater flexibility of when and how work is completed. It also allows employees to start work earlier or finish later during Monday to Thursday to allow a 1pm finish on Fridays. On top of this, it offers eighteen weeks paid parental leave for company employees, and for parents returning to work, it offers discounted child care and designated breast-feeding rooms. Employees also have the option of gaining an additional four weeks leave per year by reducing their pay, giving them greater choice and flexibility. Ethics & corporate social responsibilityEthical business practises: are those practises that are socially responsible, morally right, honourable and fairCode of conduct: is a statement of acceptable & unacceptable behaviours in a businessCode of ethics: statement of firms’ values & principlesBest practice: refers to business practises that are regarded as the best or of the highest standard in the industry CSR: is the continuing commitment by companies to behave ethically & to contribute economic development while quality of life of the workforce & their families + communityStakeholders apart from shareholders: employees, employers, customers, suppliers, community organisations & local communities 306133516002000Examples of CSR include:Investing in community projects Supporting research activitiesAdopting environmentally friendly products This enhances the reputation & standing of the business & may be used to promote recruitment of staff for the businessStrategies to promote CSR within the workforce include:Promote effective affirmative action & anti-discrimination programsEncourage staff to volunteer their time & participate in community building activities Develop initiative that reduce the business’s impact upon the environment McDonald’s Case StudyIn Australia, McDonald’s employs approximately 70% of staff on a casual basis. Many of these are young people (85% of all employees are aged between 14 and 18)working in their first job who are not part of a trade union. This creates a potential power imbalance, with managers having the upper hand. To prevent this, McDonald’s provide a number of confidential communication channels where employees can attempt to get issues resolved. As many of its employees are still completing secondary school, McDonald’s Australia also has a Responsible Student Employment Policy. Processes of human resource management127006858000Employment relations: the function that deals specifically with the relationships between the employers & employees of the businessRole of employment relations is to provide the business with the workforce that it requiresAlso aim to find, attract, develop & motivate the people who can provide services the business needsHuman Resource Cycle: process of acquiring people with skills for the job & continued development of employees’ knowledge & capabilities Cycle also involves providing incentive for effective, reliable employees to remain motivated & stay with the businessHas four stages: acquisition, development, maintenance & separationAcquisition Acquisition: is the process of attracting & recruiting the right staff for roles in a businessIs the stage in the HR cycle that involves identifying staff needs, recruitment & selectionIn order to examine whether it has the appropriate staff to meet the firm’s needs, a business needs to:Identify skills & number of employees required in the future Analyse its existing workforceAcquisition involves identifying:Internal environment: particularly business’s goals & cultureExternal environment: including economic conditions, competition, technology, legal, political and social factorsRecruitment: the goals of recruitment is to accumulate a pool of potential candidates for a jobIt is form this pool that the business must make its selectionThe business can fill a vacancy by recruiting applicant internally (from existing staff) or externally (from outside the business)Existing staff could receive a promotion, resulting in other staff to improve their performanceThe business can advertise externally for job applicants through methods such as:Outsourcing to private employment agenciesInterviews on university campusesTrainee position may be offered to HSC students to complete cadetship coursesJob needs to be identified and analysed & job description (a written statement describing duties, tasks & responsibilities associated) needs to be created 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 bets utilises the skill of the individual to meet the needs of the businessIdentifying staff needs: if staff cannot cope with changes more employees are needed Selection: a screening process in staff acquisition Information gathered about job applicants is reviewed and most appropriate applicant chosenIndividual are assessed on their ability to interact with each otherThis may involve: interviews, applications, written tests QANTAS Case StudyACQUISITIONSourced from external & internalCosts are considerable for recruitment e.g. advertising – methods are evaluatedSelection can include: personality tests, reference and background tests and physical examinationsdevelopmentDevelopment: is the process of developing & improving the skills, abilities and knowledge of staff, through induction, ongoing training & further professional development Businesses need to develop skills & capabilities of its staff to maintain competitive advantageEach business has different cultures and must adapt these development processes accordingly Induction: a procedure which introduces the new employee to the businessallows them to become familiar with workings of the firmnew employees should feel they know where they fit in & where the business is headed; its goals Training: encompasses all activities aimed at improving an employee’s present & further performance in the workforce. This falls into 2 categoriesOn-the-job training (traineeships & apprenticeships)Off-the-job training (TAFE & university courses)Performance appraisals: a formal, assessment of how well a person is working, including strengths & weaknesses Provides a basis for matters e.g. future training, pay rises, promotions & possible further developmentTraining & development increased motivation for employees, greater business flexibility & improved use of technology & innovationsOrganised development: due to flatter hierarchical structure in the workforce as of recently, structures which benefits shared & problem-solving work improve efficiency, effectiveness & responseThese strategies include:Job enlargement: increasing breadth of tasks in one jobJob rotation: involves moving staff from one task to another over a period of time in order to multi-skill employeesJob enrichment: involves increasing the responsibilities of a staff memberJob sharing: occurs when two people share the same jobQANTAS Case Study2. DEVELOPMENT Spends $275 million a year on training and developmentHas objectives of:Increased efficiencyImproved quality of serviceFewer accidents and damage to equipmentTRAINING - Training methods include:On the job techniques e.g. apprenticeships, demonstration, coaching, job rotation, mentoringOff the job techniques e.g. simulation, QANTAS College Online, day release at QANTAS’ Centre of Service Excellence Maintenance Maintenance: is the process of managing the needs of staff for health & safety, industrial relations & legal responsibilities (compensation & benefits of all staff)Is maximised through encouraging staff to participate in decision making, giving employees control of their livesE.g. involvement in teams, collective bargaining, workplace surveys & activitiesEffective workplace relationships depend heavily on communication including:Team meetingsStaff bulletins & newslettersStaff seminarsSocial functionsSuggestion boxesStaff surveysStrategies focus on building trust & direct communication b/w peopleEmployee participation in the workforce has improve communication & empowered employeesMaintenance of databases: it is important for maintaining the records of a business e.g. employee informationSkills inventory database that contains information on skills, expertise & qualifications of current staffA: able to access specific information when neededMaintenance of HR staff: staff can be maintained through providing working conditions & work environment to motivate staff to be increasingly productive & gain satisfaction from their workIf staff remain loyal and stay business will have increased productivity, improved morale amongst workers and decreased absenteeismemployee benefits: are added perks given out by businesses which can be monetary/non-monetaryremuneration packages: total pay/reduced to workers & managers for their labour services & may include both monetary, non-monetary benefits & intrinsic satisfaction (personal satisfaction)monetary benefits may be:according to sales e.g. real estate agent get commissionbased on individual output e.g. payment of piece rates for fruit pickingbonuses – paid usually end of yearthrough shares ownership scheme pay increases & incentive of workers ‘owning’ part of the businessfringe benefits e.g. company carnon-monetary benefits include:greater job-varietyflexible working hoursincreased status in the job/communitybeing allowed to manage yourself/access to an employee subsidised cafeterianegotiated benefits may include:4 weeks leave + full pay after working one year in jobAustralian workers on awards are entitled to 17.5% loading on their annual leave10 + years working long service leave (8 weeks’ pay)employees are currently to have an additional 9% of their annual wage/salary paid into superannuation fringe benefits tax: tax employers must pay on certain benefits they provide to their employees QANTAS Case StudyHas aimed at keeping pay increases to 3% per yearRemuneration is systematic and based on job descriptions and performance appraisals Businesses consider value of benefits in terms of retention of staff and workplace culture – are expenses and can attract employer paid fringe benefits tax (FBT)Flexible working conditions – attract and retain talented staff Can include:Flexible working hoursFlexible reward optionsWork from home arrangements e.g. rostered days offFamily leaveJob sharing – popular with women returning to workforce?FAMILY FRIENDLY PROGRAMS Increasing paid maternity leave from 10-12 weeks Keep in touch programme for staff on maternity leave Building new child care facilities in Sydney, Melbourne and BrisbaneWORK- LIFE BALANCE Qantas supports employees to manage work, family and personal commitments through a range of initiatives including access to health and wellbeing programs, child care (Qantas has built three on-site The Joey Club day care centres in Brisbane, Melbourne and Sydney) and a free Employee Assistance Program counselling service. REMUNERATION AND BENEFITS Around 95 per cent of Australia-based Qantas Group staff are covered by awards and various collective agreements. Qantas works with 16 national unions to negotiate around 45 Enterprise Bargaining Agreements. The remuneration strategy for executive management is detailed in the Qantas Annual Report. Employees have access to a wide range of benefits including airline travel. separationseparation: is the process of employees leaving voluntarily, or through dismissal or retrenchment processesis the ending of employment relationshipredundancy/retrenchment: refer to employees losing their jobs, where the employees; job or work no longer need to be doneit may be necessary due to a lack of work e.g. fall in demand for a product or service or position may have been restructured/replaced by technology may come from either employee or employer (voluntary/involuntary)voluntary separation: may take one of the following forms:4585335000retirement: when an employee retires they have decided to give up full-time/part-time workpeople pay retire due to illness, lack of motivation/desire to pursue leisure activitiesresignation: is when an employee leaves their job for reasons e.g. need for change, moving locationvoluntary redundancy: is where the existing job is no longer required by the firm & the employee may be offered a redundancy package involuntary separation: is where management decides which employees will no longer be requiredEmployment Protection Act 1982 (NSW): provides a minimum scale for severance payments for all permanent employees under NSW awards who work for an employees’ with more than its employees Dismissal: occurs when the employer terminate am employment contract due to the unacceptable conduct/behaviour of the employeeCan be instant/ summary dismissal or dismissal after series of warningsInstant/summary dismissal: the immediate termination of the employee’s contract without notice (e.g. cases of theft, flouting a drug policy)Dismissal after a series of warnings: follow incidents e.g. continual lateness/failing to perform duties as requiredUnfair dismissal: occurs where an employee is dismissed by their employer & they believe the action is harsh, unreasonable or unjustFair Work Commission may provide these grounds for an unfair dismissal:Employee was dismissed in a case which was deemed unjust/not genuine redundancyEmployees are able to claim unfair dismissal if:Business has 15+ full-time employees (worked 6 months or more)Process of dismissal have not been carried out correctly Employer has right to objectBusinesses will be slandered by such claimsWorkers may be classified as on probation/temporaryprobation workers are often hired & given a probationary period approx., 3-12 months to ‘prove’ themselvestemporary: those employed for short periods of time to replace an absent workerthis could be for a day or several months McDonald’s Case StudyThe nature of the fast-food industry, plus the fact that McDonald’s employees are often young people in their first job, means that McDonald’s has a significantly higher staff turnover than many other companies. McDonald's Australia reported that its staff turnover rate is 42% for crew and 20% for management In the UK, staff turnover is 40%.Some estimates put the average turnover rate in the hospitality industry at 70%.McDonald’s Australia also conducts anonymous exit surveys of employees. These can help management ascertain why staff are leaving and put in place strategies to prevent this.Strategies in human resource managementLeadership styleLeadership style: refers to ways that managers communicate with their employees to inspire and motivate them to work together to achieve an organisation’s goalsLeaders make decisions, develop strategies for the development of the business and interact with employeesLeadership style is based on providing staff with directions, implementing plans & motivating and organising staffAuthoritarian leadershipManagers lead based on telling employees how and what to doEmployees cannot contribute to decision making processDecisions must be made quicklyUsually high task, low process jobsFocus on planning, controlling & monitoring Works best for: In times of change and uncertainty, need for strong leadership and stabilityParticipative leadership (democratic/behavioural)Involves the leader including one or more employees in decision making processEmployees are consulted about what to/how to do jobsEncourage employees to be empowered Leading, motivating and communicating Works best for: Skilled workforce, staff are needing to be motivated, encouraging staff to become empoweredDelegative leadershipLeader allows employees to make decisionsEmployees have relevant knowledge and skills to make decisionsManagers trust employees to make the right callWorks best for: Skilled workforce, has to be an element of trust, accountability amongst staff for wrong decisions, motivates skilled staff to have greater involvement?Contingency approach Uses most appropriate approach depending situation and changes in circumstances McDonald’s Case StudyMcDonald’s has more than 37,000 stores worldwide and operates using strict business guidelines, it follows that the management of the corporation might somewhat autocraticComplaints have been made that corporate management decisions such as increasing store rent, running promotions and changing menu items sometimes occur without proper consultation with franchisees.The very nature of a franchise implies that all staff must precisely follow detailed operational instructions that limit the scope for participative, democratic decision making. McDonald’s has a very structured hierarchy, starting with a crew member all the way up to store manager and consultant. This sets a defined chain of command through the local store, consistent with autocratic leadership. This leadership strategy allows for consistency and uniformityJob designJob design: is the number, kind and variety of tasks that a worker is expected to carry out in the course of performing their jobInvolves process of determining the type of tasks an employee needs to completeEffective job design should seek to meet needs of employer + employeeTask must allow employee to work to achieving objectivesJob satisfaction and enrichment must also be considered Job enrichment: the extent to which a business develops tasks with the abilities of existing staff in mind. Job enrichment reduces boredom by giving employees more challenging tasks, responsibility, autonomy and decision makingApple Case StudyMcDonald’s employees have specific skills built into their job design with little or no scope for changeTask oriented job design is contemporary example of Taylor’s scientific job methodology in actionA sheet of instructions and specific timeframe for a job is evidence of a task-oriented approach Strategy allows for consistency, efficiency and uniformityGeneralRecently job design has expanded to incorporate more general approach with greater variety of tasksWider amount of tasks improve worker enlargement, satisfaction & productivity JOB ROTATION: employees move from one job to another POSITIVENEGATIVEMultiskilling of staffFlexibilityVariety and challenge Better understanding of businessImproved resolution of problems ( reduces work stress) Loss of employmentEmployee resistance to change as the workforce becomes reluctant to the use of new technologiesReduced employee morale as workforce feels less valuedJOB ENLARGEMENT: employees are given additional tasks to increase the variety and challenge involved in a position POSITIVENEGATIVEIncreased employee motivationIncreased participation in decision making Pathway to promotion Work overload Problems if employees aren’t trained properly JOB ENRICHMENT: employees are given more challenging tasks, responsibility, autonomy & decision-making powerPOSITIVENEGATIVEEmployee satisfaction Pathway to promotion Higher retention ratesOpportunity for greater rewardsMay over extend employeeLead to burnout from too much workSEMI-AUTONOMOUS WORK GROUPS: a multi-functional work groups of employees who take responsibility for a production process, or project, share and manage tasks to achieve targets without direct supervisionPOSITIVENEGATIVE Employee commitmentGreater empowerment, teamwork, team responsibilitiesOpportunities to multitask & develop problem solving skills and decision making There may be conflict within the groupSpecific tasks Best represented through scientific management which identifies there is a best way of doing a job & that a workers’ skills should be matched to job requirementsBased on specialisation, efficiency (low skills, cheap labour)Specialisation: involves jobs being broken down into specific skillsIncreased knowledge increased output decreased labour costs & errors Controls qualityRecruitment Recruitment: the process of locating & attracting right quantity & quality of staff to apply for employment vacancies/ anticipated vacancies at the right cost Internal recruitmentOccurs when the position is filled by existing employees within a businessCan act as incentive for staff to improve performancePromotion may be seen as reward for effective workStaff who are overlooked for position may be demotivated May occur through intranet positing, promotion lists, word of mouth, email etc.)Staff referrals are popularADVANTAGESDISADVANTAGESMotivation for staffEmployees know the culture, operations productivity maintainedCheaper than external recruitmentBuilds commitment and loyalty Can reinforce negative cultureCause rivalry for positionsUnsuccessful internal applicant may feel discouraged of unmotivated Little value added, no skills External recruitment Occurs when position is filled by individual who has not yet worked for the businessEncourages new ideas as new employees may bring new solutionMay take time to settle in, potential resistance from existing staffIssues: time needed to replace staff, recruitment firms *ADVANTAGESDISADVANTAGESWider applicant poolDilutes internal politicsMore diversity in employmentNew ideas, perspectives and skills better business solutions Risk of unknown staffRisk of legal claimsNew employee may not fit culture, may not be accepted by internal rivalsLoss of productivity in initial stages of induction phase QANTAS Case StudyAlan Joyce (CEO) was CEO of Jetstar before QANTAS – internal recruitment External – obtained through traditional methods such as: newspaper advertisements and recruitment agenciesThey need to be genuine, friendly and able to deal with any eventuality.Qantas believes that creating a diverse workforce will provide the best talent to deliver our strategy to be the world’s best premium and low cost airline. Recruitment and selection is based on merit, and when making hiring decisions managers are encouraged to not only comply with Equal Employment Opportunity and anti-discrimination requirements, but also to bolster a diverse workplace culture when selecting from the pool of qualified candidates. Qantas aims to make its recruitment process accessible to all candidates by advertising positions both broadly and in specific publications, using professional recruitment services where required and providing guidance on its recruitment processesMcDonald’s Case Study51% of restaurant managers in store owned by the company started their careers as crew members General skills Includes flexibility, versatility, social confidence, positive attitude, motivation & ability to work as a team and/or independentlyGeneral ‘soft’ skills are critical in building a successful workforce (more service based skills)Important as many tasks today require individuals to work independently & undertake different tasksSpecific skillsAre highly specialised & are required for some jobs within science, technology & engineering sectorsMany businesses recruit overseas/ outsource to overcome skills gaps in their businessEmployee poaching; practice of enticing employees to work for another businessTraining and development Training: aims to develop skills, knowledge and attitudes that lead to superior work performanceDevelopment: refers to enhancing the skills of the employee in line with the changing & future needs of the organisationTraining may be informal or formal & allows employees with opportunity to acquire skills & experience needed Informal training: when an employee is either shown or modelled the correct skills through a coach or mentor of learning on the jobFormal training when an employee takes on a role similar to students within the organisation and are shown how to apply themselves to the new operations of a business then later assessed on their level of understanding Induction: process of providing new employees with the knowledge and skills necessary to ensure they are familiar with the organisation day-to-day operations of the businessEmployees are given some history, company policies, work rules & a code of conductEmployees are notified of leave arrangements, starting/finishing times, dress codes, union memberships & grievance handling procedures Current skills Skills currently required from employees by businessLength of training time to acquire these skillsFuture skills Predict the future requirements of the business and skill level needed by employeesTraining for future skills needed will mean business has competitive advantage against competitors The business is attempting to train it staff in the present with skills needed in the futureQANTAS Case StudyInvests more than $275 million a year in training and developmentTraining – done due to repaid technological change and need to keep up with global competition e.g. QANTAS’ pilots do in total more than 48,000 hours of annual trainingBenefits of this includeEnhanced productivityImproved quality of outputsEnhanced ability to cope with change because employees have a variety of skillsall flight attendants undertake the latest service and safety training.New flight attendants receive up to six weeks initial training, as well as recurrent training, in security, medical and emergency procedures. Qantas is a registered training facility, in accordance with Australian National Training Organisation standards, and has 90 certified course facilitators and designers delivering contemporary training through eLearning, workshops and coaching at work. In December 2008, Qantas opened a Centre of Service Excellence in Sydney, which provides an enhanced training program for over 18,000 staff from across the business each yearThe 5,000 square metre facility features customer experience zones dedicated to the airline’s international First, Business, Premium Economy, Economy, as well as Domestic and QantasLink offerings. The Centre also includes a 132-seat auditorium, a central stage with seating for 125 people, four cabin crew training pods, a Qantas Innovation Zone, sponsored by Panasonic and designed to capture employees’ ideas and initiatives for exceptional service, an intranet workstation area, a wine training and epicurean wing, learning and development rooms, and two image and presentation rooms. QANTAS uses online learning to train its staffPerformance management Addresses both individual & business performance Successful performance will often translate into the business’s strategic objectives being metIs the process of recognising the efforts & contributions of employees to their workIt is an ongoing process of communication between supervisors and employees3 stages of performance managementPlanning: focused on goals/expectations between ad employee and employer Checking in: involves regularly observing employees performanceAssessment: measuring employee’s performance against objectives Benefits of performance management Employee has improved understanding of role Employee able to identify problems earlierPerformance review and improvement allow employee to be aware of personal goals Developmental (improving skills)Improves individual performance through establishing objectives May include: reaching sales targets consistent with achieving organisation’s goalsDiscussing with the employee how to better do their jobDiscussing what skills and training initiatives are needed by an employee to better do their jobAdministrativeAssesses the progress of the business in meeting its strategic goals and where necessary identifying areas for its strategic goals and where necessary identifying areas for improvementE.g. establishing new goals/ employee performance The efforts/achievements of employeesHow employees can be recognised/rewarded for their effortMcDonald’s Case StudyUK: employees are subject to biannual performance reviews to assess their progress and set training and development goals for the future.Australia: McDonald’s corporate employees and restaurant managers undertake annual performance and salary reviews.McDonald’s performance reviews allow a regular, formal opportunity to ensure that company goals and individual staff goals are aligned. At the store level, crew members are encouraged with “pins” (small badges) that they wear to signify achievement. The company also rewards performance with awards such as “Crew Member of the Month”. Rewards Rewards motivate employees to work to their potential & cooperate to achieve goals of the businessInclude: superannuation, sick/annual leave Remuneration: refers to both financial & non-financial benefits that employees receive in return for their work effortMonetary rewardsAdditional money or payments givenE.g. bonuses, commissions, overtime, insurance, superannuation, medical & healthcareNon-monetary Non-financial benefits associated with the job itselfE.g. fringe benefits, challenges, safe environment, performance feedback & recognition)Individual/group If rewards are only individual cause conflict Group rewards have increased need for cooperation & difficult to distinguish performance of individuals within teams Issues: not all employees apply same effort, employees may have different personal goals, conflict may occur within groupGain sharing plans Performance payProcess of linking part of employee’s income to their performance at workConcept recognises that employee motivation comes from financial benefitsMay be performance, job or individually relatedA: performance improves as employees work more efficiently, encourages unmotivated individuals D: performance of employees may be difficult to measure for some jobs, some employees may seek non-financial rewardsMcDonald’s Case StudyMcDonald’s offers a range of rewards for staff memberE.g. discounted food & beverages (up to 50%), promotions, group & individual pay, awards and prizesMcDonald’s Australia rewards top performing employees with what is known as the "Macca’s Enjoyment Bonus” where top employees are rewarded with the granting of wishesEmployees at McDonald’s corporate headquarters may be eligible for company cars, healthcare services, discounted child care and fitness membershipsGlobal Globalisation has increased competition and complexity of Human resources More companies are entering international markets by exporting their products overseasAccess to cheaper workforce that possesses the required skills will be a key consideration for a business Ability of labour to learn new skills will be affected by country’s education system Polycentric: using host country staffing with parent=country staff in corporate management at its HQGeocentric: using staff with the most appropriate skillset for a particular role and location, building pool of managers with experienceEthnocentric: using parent country staff in its organisationcostsIncrease availability to low cost labour economiesPrimarily in the manufacturing sectorAble to reduce costs of productionSkills Developing economies are fast improving their skill set, i.e. high expertise occupationsIt provides the business with an advantage of accessing highly skilled individuals at lower costsAlso employing senior management from other countries to take advantage of the skills offered by foreign managementSupply Developing countries have greater access to large pools of labourAs a result of this increased supply to a business volume of production can be increasedQANTAS Case StudyTries to hire host country staff instead of transferring domestic staff to work in senior management positions overseasHost country staff understand local laws & cultureAvoids relocation expensesHost country staff need to be retrained to become familiar with QANTAS businessIf suitable staff cannot be found, ethnocentric approach will be used ( parent staff used)Provides good working conditions which help prevent shortage of skilled labour Workplace disputes -215909461500Conflicting interest of employees & employers can cause dispute Industrial dispute is a disagreement over an issue or group of issues between an employer and its employees which result in employees ceasing work Strike: situations in which workers withdraw their labour Major causes of disputes: remuneration: wages, allowances, entitlements and superannuation.employment conditions: working hours, leave, benefits and other general employment conditions.job security issues: retrenchment of employees, downsizing, restructuring, use of contractors, outsourcing, re-classification of the workforce, and other industry-related matters health and safety: physical working conditions, including safety matters, and workers’ compensation provisions, protective clothing and equipment, uncomfortable working conditions, employee amenities, equipment condition, and overly strenuous physical tasks.managerial policy: decisions and policies of line managers, such as disciplinary matters, suspensions, discrimination, decisions that impact upon work and family issues, production limits or quotas, principles of promotion, and other work practices.union issuespolitical or social protestsTypes of Industrial ActionLockout – when employers close entrance to a workplace, action taken by an employerStrike – when an employee withdraws their labour, they cease to work in protestPickets – protests taking place outside the workplacenegotiationis the first stage in the resolution of a disputeinvolves discussion between both parties in an attempt to resolve the dispute mediation occurs where independent parties with no ties to either stakeholder is asked to assist the conflicting stakeholders to reach a settlement grievance procedures the rules and procedures that employees, unions & employers must follow in order to resolve a dispute may include:provide clear outline of issuesillustrates correct and appropriate processes when raising a complaintprovides a mechanism that can be used to achieve a quick resolution of disputesinvolvement of courts and tribunals conciliation: when Fair Work Commission acts as a mediator and offers suggestions in a dispute to resolve the problem both parties must make reasonable attempt to reach a settlement, however conditions are not legally binding arbitration: final stage of the dispute involves commissioner hearing cases put forward by both parties in an industrial dispute and then making a decision which is legally binding McDonald’s Case StudyMcDonald’s has clear employee grievance procedures set out in the Standards of Business Conduct – The Promise of the Golden Arches booklet. Employees can discuss issues with direct supervisors (or other managers) or the employee can directly contact the Global Compliance Office and report an issue which may sometimes lead to mediation.In Australia, McDonald’s has a Workplace Relations Team which takes calls directly from employees who have unresolved issues from 8am to 6pm for employees enquiries and complaintsMcDonald’s also involves trade unions and other legal institutions when necessary to negotiate employee pay and conditions. As an example, the current award for McDonald’s Australia employees was negotiated between McDonald’s and the SDA and was checked and approved by FWC. Under the compliance partnership between McDonald's and the Fair Work Ombudsman (FWO), a report is issued about the number of McDonald's staff that request assistance from FWO. The total requests received compared to the total number of employees is around 0.03%. Given that a large majority of the McDonald’s workforce is comprised of young people, the FWO considers this to be an exceptionally positive outcomeEffectiveness of human resource managementIndicators are performance measures that are used to evaluate organisation/individual effectivenesseffective HR management is one where management and employees work well together in efforts to achieve goals of business Indicators are collated in human resource audits- diagnostic tools used to evaluate HR policies and practices in order to identify problems and develop solutionsCan be compared to best practice businesses or internal divisions to determine strengths and weaknesses as well as create basis for improvement- benchmarkingresults must be communicated and acted upon by improvement planscorporate culture the culture within an organisationrelates to values and beliefs within a businesseffective corporate culture is one that is believed, demonstrated and acted upon by management and employeespeople are most important business assetbuilding good corporate culture Indicators of poor corporate culture are high staff turnover, poor customer service, absenteeism, accidents4981912463300Better work and employment relationships begin with an understanding of how to develop a positive corporate culture- values ideas, expectations and beliefsSuccessful businesses maintain balance between concern for success and regard for employeesApple Case StudyApple’s culture has been shapes by innovation, its leaders & peer pressure among employees are the contributor to the final product the customer seesApple doesn’t rely on posters or motivation slogans instead every communication process, product launch to make it clear that innovative is the heart of Apple’s successInnovative has driven Apple’s past & current success and will continue to drive future success benchmarking key variablesprocess of measuring an employee’s performance against established standardsif employees are unable to meet performance goals on a regular basis management need to reconsiderinformal benching marking: includes strategies such as networking, informal discussions with colleagues, visits at other businesses, researching best practise & attending conferencesperformance benchmarking: involves comparing performance levels of a process/ activity with other businessesbest practise benchmarking: comparing performance levels with those of another best practise business in specific areas using a structured process to gain skills & knowledge to modify organisational processbalance scorecard benchmarking: used for whether activities of business are meeting objectives business may also use audits, quantitative measure & qualitative evaluationchanges in staff turnover staff turnover is the rate at which employees leave a business high turnover caused by voluntary separation is indicative of poor employment relations within a businessaverage in Australia is 12-15%Important to benchmark turnover against those of other businesses in same industry to determine type of staff leaving and reasonsStaff may leave to seek new opportunities, promotion, whilst others may leave due to toxic workplaceHigh turnover is expensive as there are costs involved with payout for entitlements, hiring, inducting and training new staffApple Case StudyApple turnover is 2.5 years as Apple retail stores have become increasingly busy, turnover rates have increased tooInternal surveys at store show high dissatisfaction levels, especially amongst ‘geniuses’ Apple claims: annual retention rate for Geniuses is almost 90%absenteeismrefers to a worker who neglects to turn up for work when they are scheduled to do soemployees being unable to attend work for reasons e.g. illness/ family responsibilitiesis costly as employee’s work is not doneplaces additional demand on existing staff and hostilityRevenue lost as work is disrupted and business needs to have higher staffing levels tocopeMeasured as the average rate of employee absenteeism on an average day, without sickleave or leave approved in advanceaccidents all work places across Australia must be aware of potential hazardsless accidents better & safe working environment 5.3% of Australian workers experience work related injury or illness each year and young males in physical work are most likely$60 billion cost per year in direct and indirect costsDirect- medical bills, compensation, insuranceIndirect- wages and time lost, production delaysSystematic, legally compliant approach to managing OHS necessaryOHS indicators are benchmarked by:Lost Time Injury Frequency Rates (number of lost time injuries x 1000000/total hour worked in accounting period)Best practice businesses have regular safety audits, comprehensive safety programs, build culture of safety and provide careful induction and ongoing trainingApple Case StudyApple’s outsourcing partners have been criticised for unsafe working conditions & high rates of accidents occurring in their factoriesEmployees assembling iPhones, iPads and other Apple devices work excessive overtime, 7 seven days and live in crowded dorms 2 years ago 137 workers at an Apple supplier in East China were injured after they were ordered to use a poisonous chemical to clean iPhone screens Seven months later two explosions occurred at iPad factories, killing four people and injuring 77levels of disputationmore disputes less effective HR managing employment relationsemployers would need to examine why disputes are occurring and rectify practises that cause disputesVarious overt and covert manifestations of disputes that employers need to monitor and evaluate? Overt (open dispute): pickets, strikes, lockouts, dismissals? Covert (closed dispute): absenteeism, labour turnover rates, sabotage and discrimination Indicators of industrial disputationWork bans- ban or boycott, refusal to work overtime, handle a product, piece of equipmentWork-to-rule- refuse to perform any additional dutiesGo slow- work slower rate than normalSabotage- vandalism, cyber-attacks, theftGrievance reports indicators of poor quality relationships in workplaceDetermine whether issues relate to policies and processes operating within the business or to specific individuals who require further trainingMaking of awards and agreements and managerial policy are main causes of disputesMost common in large businesses where relationships and communication is more impersonalApple Case StudyRecent disputes involving Apple, and specifically the manufacturer of their products Foxconn include:October 2013: dispute between assembly line workers & quality control managers due to iPhone 5 casing being scratched in production which workers disputed due to lack of training & abuse by managers 3000+ factory workers going on strike April 2012: 200 company employees threatened suicide at a Foxconn facility, threatening to jump off the factory roof due as a threat over wages and working conditions at the plantworker satisfactionrefers to whether employees are happy and content in fulfilling their desires and needs at worksatisfied employees often work more efficiently and value their organisation Key factor in employee commitment, job performance and staff turnoverSurveys useful in helping employers measure and understand how staff feel about work, management and culture of organisationUsed to improve management style and processes, benefits and reward systems Feedback confidential and analysed by professionals qualified to interpret such feedback Satisfaction mainly comes from good relationships with co-workers and enjoying work activities, receiving relevant trainingFamily-friendly culture, adequate breaks, rewards for effortHolistic approach to employees which values and cares for them- this is most effective in building commitment, satisfaction and retaining effective employeesMcDonald’s Case Study83% of McDonald‘s restaurant managers in its top markets globally think it is a great place to work 75% of managers feel favourable about the training they receive on the job In 2014, McDonald’s was ranked 7th in North America and 11th globally in the AON Hewitt Top Companies for Leaders report In2013,89% of crew members were satisfied that they receive the training needed to do a good job In 2013, 87% of managers felt that the person they reported to supported their professional developmentIn 2016, McDonald's UK was ranked 2nd by the "Great Place to Work? Institute" in the Best Workplaces list (for large organisations)McDonald’s UK has indicated that “the average length of time a crew member stays with us has increased from 18 moths to 2/2.5 years” Lower staff turnover usually indicated happier, content workforce ................
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