Unit 4Business Management

Outcome 1PART A

The human resource management function

SAC Details

• Monday August 4th

• One session• 40/60 marks (Part A)• There will be a 10 mark question included. (The end of year exam has

a 10 mark question so you will need to start practising these types of questions)

• Revise - Chapter 4 & 5 Text• If a question contains a case study ALWAYS make reference to it in

your response.

Study Design Key KnowledgeFactors involved in managing human resources:Relationship of human resource function to business objectives and

business strategyEmployee expectations, including conditions of employment,

occupational health and safety (OH&S), job security and work–life balance

Key principles of Maslow’s, Hertzberg’s and Locke’s theories of motivation

Ethical and socially responsible human resource management;

Study Design Key Knowledge (continued)management practices and processes associated with the key phases of the

employment cycle:Establishment phase:– human resource planning related to business strategy– job analysis and job design– types of recruitment methods and selection processes– employment arrangements and remunerationMaintenance phase:– induction– training and development– recognition and reward– performance management

Study Design Key Knowledge (continued)Termination phase:– termination management, including entitlement and transition issues;

Key Skills (Study Design)

These skills include the ability to• accurately use relevant management terms;• research related aspects of human resource management using print

and online sources;• analyse business literature, information and data;• evaluate key aspects of human resource management theory;• apply human resource management knowledge and concepts to

practical and/or simulated situations;• evaluate different practices and processes for managing human

resources.

Factors involved in managing human resources:

Relationship of human resource function to business objectives and business strategy

• Strong relationship.• The human resource (HR) department is central to the success of all

organisations. • The HR manager is responsible for translating the overall corporate objectives

into department objectives. • HR must ensure the LSO has highly trained, productive and motivated

workforce. • Achieving this aim means the business is more likely to be competitive. • If a business has objectives that include increasing market share and profit,

then a productive workforce along with other successful management functions, such as operations and marketing, will greatly assist the organisation to achieve its objectives.

This table shows some practical examples of how company

objectives can be translated into HR objectives and strategies.

Company objectives HR objectives HR strategiesMost reliable supplier Increase worker

productivityThorough selection process

Increase in sales Develop sales skills Ongoing training

Increase in profits Improve product knowledge

Regular performance appraisal

Provide safe workplace Reduce number of accidents

Establishment of work teams

Key Terms

• Human resource manager• Human resource management.• Human resources.

Employee expectations, including conditions of employment, occupational health and safety

• to be paid a fair wage/salary• to finish work at the designated finishing time• to gain satisfaction from the work they perform• to have time off for legitimate reasons, such as illness and family carer

responsibilities• to have an opportunity for promotion• to have manageable, satisfying work to perform• to work in a safe and healthy work environment• to be able to negotiate flexible working arrangements• to work in a positive culture that does not support discrimination, harassment or bullying

Employer expectations

• that workers complete all work assigned to them• that they complete assigned work to a satisfactory standard• that they arrive at work on time (that is, are punctual) and leave

at the designated finishing time• that they maintain good attendance and are reliable• that employees are skilled and willing to be trained and developed• that employees comply with all health and safety policies and procedures

OH&S

• Concerned with protecting the safety, health and welfare of workers.• OH&S aims to foster safe and healthy workplaces. • All employees expect to work in a safe environment. • All employers have a duty of care to ensure that employees and any other

people who come on to work sites remain safe at all times. • This duty of care is supported by laws and regulations relating to working

conditions, such as the provision of safety equipment and signs, establishing and running OH&S committees, and procedures for the safe handling of heavy loads and goods such as chemicals.

• In addition to maintaining a safe workplace, OH&S laws require that employers have workers compensation insurance coverage.

Job security

• Where an employee knows that they have a: • permanent, • ongoing position within an organisation. • If an employee has a permanent position they are less likely to feel

stressed and concerned about whether or not they will have a job in the future, particularly given the rise in casual employment.

• Permanent employees with job security generally feel loyalty and commitment to their employer and are therefore likely to be motivated and productive.

Work Life Balance

• Refers to having enough time for work and enough time for life. • Varies from person to person as the best work–life balance depends on

individual circumstances and priorities. • Organisations have also placed greater emphasis on work–life balance

practices as meeting this need helps to enhance organisational performance. • Work–life balance practices involve providing a workplace that helps workers

get the right balance between completing work tasks and meeting personal and family commitments.

• To create a workplace environment that fosters a work–life balance, employers can offer their employees flexible working conditions in relation to hours/days worked, work location, leave arrangements (such as carer or parental leave), and through the provision of subsidised child care facilities

Expectations of people working for large scale organisations

Key terms you must learn• Employer of choice• Flexible working conditions• Work life balance• Occupational Health & safety• Job security

Key principles of Maslow’s, Hertzberg’s and Locke’s theories of motivation

Define Motivation

See handout emailed that explains and compares each theory.

For sac & exam must be able to explain each theory and explain the similarities and differences between the three.

MASLOW

HERTZBERG

HUMAN RESOURCE MANAGEMENT - MOTIVATION

Physical

SAFETY

ESTEEM

SOCIAL

SELF ACTUALISATION

PHYSIOLOGICAL

HYGIENE MOTIVATING

PAY CONDITIONS

PRAISESELF RESPECT

HUMAN RESOURCE MANAGEMENT - MOTIVATION

GOAL SPECIFICITY

GOAL DIFFICULTY

LOCKE

GOAL SETTING THEORY

Why is it important to motivate employees?

• More likely to be focused, adaptable, committed and productive.• Employees will care about the success of the organisation they work

for and make a strong commitment.• Satisfied workers stay longer (LSO retains and can actively use the

employees’ skills and experience)• ‘employer of choice’ (attract talented and skilled employees when it is

recruiting new employees).• Will help an organisation achieve its goals and remain competitive

Strategies to motivate employees

• Lockes goal setting theory – set objectives with each employee.• Regular meetings – give feedback.• Provide opportunities for employees to expand their skills and knowledge.• Training and development to help employees perform their jobs to a

higher standard and to improve their chances of career advancement.• Recognition and reward system. Eg performance-based pay or a bonus,

Employee of the month.• Well defined job description after job analysis.• Encourage teamwork.• Self actualisation – professional development & job rotation.CAN YOU THINK OF OTHER STRATEGIES? LINK THEM TO THEORIES??

Ethical and socially responsible human resource management

Ethical and socially responsible human resource management

• Make sure you define business ethics & social responsibility• Why do employees want to work for socially responsible and ethical

organisations?• Employees often want to contribute to the community beyond the

workplace and organisations that have these types of programs will attract employees.

• There would bepositive corporate culture and policies in place to ensure that employees are treated fairly and ethically, which will encourage them to stay.

Human Resource Planning

Recruitment

Selection

Induction

Termination

Exit Interview

Counselling

Performance Management

Training & DevelopmentRecognition

& reward

Maintenance

Termination

Establishment

HUMAN RESOURCE MANAGEMENT- EMPLOYMENT CYCLE

Job Analysis

Establishment Phase of employment cycle

Human Resource Planning

• The most important stage of employment cycle.• The process of anticipating the future staffing needs of an

organisation.• HRM’s need to be aware of strategic plans of LSO.• More or fewer staff needed?• Which areas of LSO likely to grow?• Specific skills or languages needed?

HR Planning

If there is a surplus of employees the HR manager may:• Encourage early retirement.• Retrench workers.• Cut back employees hours & overtime.If there is a deficit of employees the HR manager may:• Ask retiring employees to work longer.• Increase casual & part time hours.• Hire new staff.

Job analysis

• The process of finding out exactly what the job involves.• Finding out the true duties that a person will perform and help identify

the knowledge, competencies, skills required of the applicant.• The findings are used to complete a:

job description & job specification• These documents are used to advertise the position and to cross-check

with the résumé of each job applicant when recruiting new employees.

Job Design

• Job design occurs after the job has been analysed. • The tasks documented in the job analysis are identified, grouped

together and then checked to ensure they relate to that particular job.

• The process also involves identifying the required attributes, skills and experience needed to perform the job and determining if the job provides sufficient challenge to develop the job holder.

• It is important that the job has a combination of routine and more challenging tasks.

Job description & Job specification

• Job description – summary of what the worker will be doing. The employees tasks

Types of recruitment methods and selection processes

Recruitment• Locating of a person with the necessary skills, personality & capabilities to

undertake the required job.Methods that could be used for recruitment: (internal & external)• Promotion within the organisation.• Referrals• Head hunting• Employment Agencies• Advertisements on the internet (LSO website)• Advertisements in newspapersWHAT ARE THE ADVANTAGES OF RECRUITING INTERNALLY & EXTERNALLY?

selection processes• Screening –reading through all applications & deciding which applicants

should be shortlisted for an interview.• The interview- sometimes a panel with pre-prepared questions to ask

relating to selection criteria for the particular job.• Testing- To see if the person has the skills listed on their resume & to see if

their personality will suit LSO. Helps build an overall profile of candidate in a short time.

• After the interview- panel rank applicants based on interviews & test results. Performance in relation to selection criteria. Final decision made after reference checks.

• Referee checks – involves ringing applicants current or previous employer to receive feedback on their work ability.

• Selection – last part of recruitment process where best candidate is chosen.• Successful & unsuccessful applicants are notified.

Employment arrangements and remuneration

Employees can be employed as:• Full time workers• Part time workers• Casual workers

Remuneration: (pay & package)Remuneration is the money paid to an employee in return for the work they perform. It can take the form of a wage, usually paid weekly or fortnightly (calculated on the number of hours worked by a dollar amount per hour) or a salary, expressed as an annual amount and generally paid in monthly instalments. Remuneration can include other items or benefits such as bonuses, superannuation, a company car or a phone or laptop

Maintenance phase: – induction

• Induction is the process of introducing a new employee to a position or organisation.

• Involves orientation and training.• Can be a formal program where employees are introduced to the company’s

goals, vision, values, policies, procedures, strategic plan and corporate culture. • Some LSO’s conduct a less formal process, such as on-the-job training or

appointing a mentor or ‘buddy’ to work with a new employee to assist them to adjust to their new job and work environment.

• Important that induction training is properly planned and conducted to ensure that new employees are retained.

• Poor induction training is a reason that some employees leave an organisation after a very short time, as new employees tend to decide within the first few days whether the decision to accept the job was a good one.

Training and development (formal & informal)

Training• Process of providing an employee with specific knowledge & skills they

will need to undertake the job. • Developing workplace skills.• Eg Learning how to operate new machinery or new software program.

(skill based)Development• Focus on increasing the knowledge base of employees.• Eg teachers attend professional development in latest educational

theories.WHY IS IT IMPORTANT FOR LSO TO PROVIDE TRAINING & DEVELOPMENT?

Recognition and reward

• Recognition – process of ensuring someone is acknowledged for making valuable contribution to the workplace.

• Reward – intrinsic (relate to the job eg responsibility, job promotions) & extrinsic (for performing job eg wages, phone, car)

• Examples include performance-based pay, a bonus or participation in share purchase plans where employees receive shares in the organisation as a way of motivating them to work harder or more effectively (in the hope the share price will increase).

• Non-financial rewards include personal and public recognition of work well done (such as an award, for example ‘Employee of the Month’), a larger office, a changed job title, or positive feedback by the manager at the end of a job or project.

• If recognition, rewards, training and development are all used in a positive manner, it is likely that the organisation will have a more productive and motivated workforce.

Recognition and reward

Performance Management• Involves various methods of achieving maximum performance levels

that are possible from employees.• Close link with motivation

Performance Management

• A process of motivating employees through setting goals, • Measuring the achievement of those goals, • Giving feedback, and • Training for improved work performance. • Can be applied to an organisation, department, team or employee. • A component of performance management is performance reviews (appraisals), which aim

to examine and evaluate the work performance of employees against predetermined standards, and to provide feedback to the employee to show where improvements are needed.

Organisations can use a range of performance management systems to make a judgement, including: • Management by Objectives where the focus is on continuous improvement and goals

being set across the entire organisation; • or a comparative standard system where employees are rated against one another in

terms of their performance.

Performance Appraisals 360* Feedback

Employee to be

appraised

Supervising manager or HR manager

A customer or client

An employee under the person to be appraised

A colleague

Termination phase

Termination• When an employee leaves the particular workplace, ending the

employment relationship.• Voluntary & involuntaryRetirement• A form of voluntary termination of employment, but the employee does

not intend to continue working as they have decided to permanently leave the workforce.

Resignation• When an employee decides to voluntarily leave one organisation and

take up a paid position with another organisation. If an organisation experiences high resignation rates, then in the exit interview, management should investigate why employees are leaving.

Redundancy & RetrenchmentRedundancy• When the job a person does no longer exists eg technological

changes, merger.• Permanent elimination of job• Voluntary & involuntary

Retrenchment• Due to lack of sufficient work to keep employee fully occupied.• Related to economic activity

Dismissal (summary & dismissal on notice)

Where the behaviour of employee is unacceptable and organisation terminates their employment.Summary – Serious breach, instant terminationDismissal on notice – identified during appraisal process and given time frame.

Revision Strategies

• Learn each dot point in study design.• View online video tutorials in WIKI.• Complete EDROLO activites• Textbook end of chapter review questions & prac sacs • Summarise notes.• Past VCAA exam questions• ASK TEACHER FOR HELP/CLARIFICATION

Termination issues