3WHAT IS HUMAN RESOURCES? ‘industrial relations’ is the term applied when conflict occurs between employee and employer (could be over pay/value from employee)HR involves all aspects of an employee’s relationship with the business: pay, conditions, legal obligations of employerHR department of big business is involved with every business department (even contractors who have been outsourced)
6Summary• Employees are the most important resources for business success.• Human resource management is the effective management of the formal relationship between the employer and the employee.• Most successful businesses maintain a balance between concern for success and regard for their employees.• The main functions of staffing are to attract and acquire, train and develop, reward, maintain, and separate the people needed to achieve the business’s goals.Chapter 8, Management process, pg. 248
7HSC TYPE QUESTION Comprehension. Describe the role of human resource management within a business
9RECRUITMENTAfter the need for a job is defined, a job description and person specifications are drawn upThe search for a person to fill the position beginsRecruitment is the process of attracting people to apply for vacanciesTwo major sources of recruiting new people: internal and external
10SEEK is Australia's largest job board SEEK is Australia's largest job board. It is the leading flag bearer of the job board industry, and continues to innovate and adapt to changes. With over 4.9 million monthly visitors, it is the most trafficked employment website in Australia. SEEK scored a total of 167 points. SEEK was rated highly on brand recognition in the market. It also leads the field in volume of traffic, and scored consistently high on technology, site visual and usability, and resources provided to job seekers.SEEK.com.au, Australia's largest online employment agency, with over jobs advertised at any given time
11INTERNAL VS EXTERNAL RECRUITMENT promotion or transfer.Investment already been made in the people and they will be familiar with the operations and culture of the organisationIncentive to try for promotionExternal:A particular job may require specialised training and expertise and it may be uneconomic for the business to develop its own workers.A person from outside may bring new ideas and processes to the firm and help increase morale and productivityAt lower levels new people causes little disruption. At higher levels more disruption as new directions for the whole operation may put into place. (change management)
12Different types of recruitment and selection Recruitment could be a poster on a window to an international advertising campaign.‘head hunting’Recruitment agencies: what do they get paid?Selection process: from filling in application to full resume, background checks, panel of interviewers, aptitude tests, psychometric tests
13TASK: JOB DESCRIPTIONS Go to and find a job description of a job that appeals to you! Does your job cover all of the below information?A job analysis examines:actual job activitiesequipment used on the jobspecific job behaviours requiredworking conditionsdegree of supervision necessary.The job analysis for a particular position typically consists of two parts:Job description: a written statement describing the employee's duties, tasks and responsibilities associated with the jobJob specification: a list of the key qualifications needed to perform a particular job in terms of education, skills and experience.
14JOB INTERVIEW Job interview Research effective job interview techniques and then, working in small groups, conduct a job interview. One person adopts the role of a human resource manager, and another adopts the role of the candidate for a position. The third person acts as an observer to assess the interview on the following criteria:Was the interview effective?How could it be improved?What standards/criteria would you apply?The student assessing the interview could award a score out of 20, giving a reason for the mark. All students should then swap roles.
15Summary• Human resource planning involves developing strategies to meet the business’s future staffing needs.• A job analysis is a systematic study of each employee’s duties, tasks and work environment. It comprises a job description and job specification.• After the planning stage, the recruitment of staff commences to find the best person for the job.• Recruitment involves finding and attracting the right people to apply for a job vacancy.• A business can recruit from staff within the business or seek new applicants from outside sources.• Once job applicants are found, the process of selecting the right applicant begins.• Employee selection is the means by which the employer chooses the most suitable applicant for the vacancy.Chapter 8, Management process, pg. 260
17TRAINING Training aims to improve specific skills and knowledge Induction program – esp if safety issues involvedNew skills acquired through training should increase performance which will benefit whole businessTraining helps staff reach full potentialAdvent of technology and trainingApprenticeships/traineeships/clerkships (on the job training)
19Summary• Training provides employees with the right knowledge and skills to perform their job effectively and efficiently.• Development focuses on preparing the employee to take on more responsibilities within the business in the future.• Ongoing training for all employees can be promoted by the business becoming a learning organisation.• Training needs must be identified well in advance of any proposed technological implementation.• Training should be viewed as an investment in the human capital of the business.Chapter 8, Management process, pg. 264
20SMART TALK: Naomi Simson on being generous Read article from BRWVisitQUESTION: Why, according to this article, is it beneficial to create a happy work environment and provide non-financial incentives to motivate staff? Give examples.
22Employment contractsAn employment contract is a legally binding, formal agreement between an employer and an employee.
233 types of employment contracts award — an employee’s minimum pay and conditionsenterprise agreement — a negotiated arrangement between an employer and a union or a group of employeescommon law — exists when employers and employees have the right to sue for compensation if either party does not fulfil l their part of the contract.The employment contract outlines the rights and responsibilities of the employer and the employee.
24Employment contractsLooking at examples provided to you of employment contracts in different industries and for different employment types (casual, permanent, part-time); identify similarities and differences between the contracts
25contractsThe National Employment Standards are a set of minimum employment conditions employees are entitled to. A modern award must not exclude these standards.As the nature of work and the characteristics of the workforce change, employees are seeking more involvement in the decision-making process.One of the most important pieces of legislation relating to employment arrangements is the Australian government’s Fair Work Act 2009.Businesses need to be aware of their legal responsibilities when employing staff, especially concerning discrimination and equal employment opportunities, and occupational health and safety
26Question to answerExplain why a business may choose to employ staff on a casual basis?
27HSC TYPE QUESTIONSExplain three issues a business must examine when considering outsourcing its human resource function.Outline the benefits to an Australian business of using a foreign contractor as opposed to an Australian-based contractor.Extended response:Describe the strategic role that human resource management has within a business and analyse this role in its interdependence with other key business functions
28Rights and responsibilities of employers As a general rule the relationship of employees adding value through labour ensures that a profit will be made by the employer. The rights of an employer relate to the behaviour and attitudes of employees. Employees must:Follow the rules, policies and instructions of the workplace, either written or verbal, and those that are reasonable with regards to issues such as safetyMaintain and safely use buildings, equipment and other itemsBehave in an ethical manner in regards to punctuality, attitude and loyaltyAn employer’s responsibilities to an employee include:Providing a non-discriminatory environment (fed/state laws)Paying an agreed amount of money through either an award or enterprise agreement or a contractReimbursing employees for expenses incurred during normal dutiesProviding a safe work environmentEnsuring the business has a policy in place to protect employees against unfair dismissalThese rights and responsibilities have their basis in government legislation that sets out the duty of care that the employer has towards employees.
29French rogue trader Kerviel found guilty http://www. nytimes October 05, 2010|By the CNN Wire StaffKerviel traded European index futures for French bank Societe Generale.Trader Jerome Kerviel was found guilty of all charges Tuesday for betting 50 billion euros ($61 billion) of a French bank's money without its knowledge.The judge sentenced Kerviel to a five-year sentence but suspended two years of it, meaning he will serve three years in prison. He was also ordered to pay 4.9 billion euros ($6.75 billion) in damages to the bank.Kerviel was not immediately jailed and left court after the verdict and sentencing.Kerviel, a former employee of French bank Societe Generale, went on trial in June on charges of forgery, breach of trust and unauthorized computer use. The banks says the unhedged bets cost it almost $6 billion.
30Rights and responsibilities of employees The employee is often in a more vulnerable position than an employer. An employee’s rights include:Receiving payment and conditions that are set out in an award or have been negotiated through enterprise bargaining or a contractHaving policies in place to ensure that unfair dismissal does not occurBeing provided with a safe working environmentHaving a working environment that is free from all forms of discriminationHaving access to equal opportunity in all areas of work within the business (which includes the availability of affirmative action policies)The ability and freedom to join or be part of a union or professional group if desired by the employeeThese rights are balanced by the employee’s responsibility to:Act and behave in a correct and proper mannerUse care and exercise skills that are appropriate in the performance of the jobFollow and obey lawful and reasonable instructions to do with the jobBehave in a manner that shows honesty, integrity and keeps confidentialityEmployee’s must be efficient – employers need to be fair
31Summary• An employment contract is a legally binding, formal agreement between an employer and an employee.• There are three different types of employment contract:– award — an employee’s minimum pay and conditions– enterprise agreement — a negotiated arrangement between an employer and a union or a group of employees– common law — exists when employers and employees have the right to sue for compensation if either party does not fulfi l their part of the contract.• The employment contract outlines the rights and responsibilities of the employer and the employee.• The National Employment Standards are a set of minimum employment conditions employees are entitled to. A modern award must not exclude these standards.• As the nature of work and the characteristics of the workforce change, employees are seeking more involvement in the decision-making process.• One of the most important pieces of legislation relating to employment arrangements is the Australian government’s Fair Work Act 2009.• Businesses need to be aware of their legal responsibilities when employing staff, especially concerning discrimination and equal employment opportunities, and occupational health and safety.Chapter 8, Management process, pg. 274
32HSC type questionsDescribe how changes in a country’s economic conditions can impact on the employment relationship in that country.List and describe three pieces of government legislation aimed at promoting a workforce that is more tolerant or differences.Extended responseAnalyse the extent to which social and economic influences impact on the employment relationship
33DiscussionEvaluate the following statement: ‘When people say they want reward and recognition they really just want a pay increase and that's all.’
34HSC TYPE QUESTION: Ethical issue Should Australian businesses deal with foreign contractors who may not follow labour law requirements in the foreign country, despite the cost-saving benefits that this might bring?
35separation – voluntary/involuntary Employees leave an organisation for many reasons. HR department responsible for organising the separation process.Occurs through:RetirementResignationRedundancyRetrenchmentDismissalTASK: You are to research your term and then find a contemporary example of this type of separation in the media..Attrition often refers to the retirement of workers when they reach the legally accepted retirement age. ‘natural attrition’ downsizing naturally.Information gained from accounting, sales and marketing managers indicates that a reduction in staff is necessary. The HR department will need to work out how such a policy can be put into practice.
36Voluntary separationEmployees choose to leave an organisation of their own free will.The HR department will provide a series of steps to assist the employee to leave and as well begin the process of recruiting a new employee to fill the vacancyRetirement:In Australia retirement generally accepted as 65 years. In 2009 the Federal Government changed the retirement age for superannuation purposes and the age to qualification for the aged pension to 67 years.Retirement is voluntary. ‘ Golden handshakes’Resignation:Today it is unusual for an employee to stay in one job for their whole working life.Employees leave for a variety of reasons..such as?Employees are required to provide an adequate amount of notice: based on contractual obligations to assist the employer’s reorganisation.Resignations may be loosely linked to factors such as the business cycle but as there are numerous reasons no real pattern can be determined.Resignation creates a problem when the skills are hard to find.Large number of resignations from a particular department might indicate interpersonal problems within that department or health and safety issues that need to be addressed by the HR department.
37Involuntary separation Occurs when a business wishes to shed workers and the workers have no choice in the situation.There are a number of different ways in which employees leave a business involuntarily.Redundancy:where employees lose their jobs because they are no longer required by the organisation or because the employees do not possess the necessary skills to complete the tasks as required.Often redundancy is caused by technological changeCertain employees may not have the right skills to operate new equipment or new equipment means that fewer employees are needed.Downsizing, cost cutting and process of multi-skilling can all lead to a reduction in staff.Voluntary redundancy:When a business perceives the need to reduce the number of employees, an analysis by the HR department will reveal how many employees should be ‘let go’This information is then relayed to the workers, who will be offered the opportunity to leave voluntarily and will be offered a redundancy packagePackage could be a few weeks pay or involve complicated calculations involving years of service and bonus entitlementsInvoluntary redundancy:Refers to the situation where the employer makes the decision as to which workers will be dismissed.Most employers first ask for employees who are prepared to leave the organisation voluntarily.If not enough employees opt to leave through retirement, resignation or voluntary redundancy, the decision for involuntary redundancy candidates will be made.What factors determine who will be kept?
38INVOLUTARY SEPARATION Retrenchment:Occurs when an employer dismisses employees because their is insufficient work to justify their continued employment.Common way to shed workers from a business during times when product sales and orders are down.Employer decides who will be dismissedOccurs with downturn in economyOne of the main reasons for involuntary job lossDISMISSAL:When an employee not doing their job properlySummary dismissal: when engaging in illegal/disorderly conduct while doing your jobEmployer must give notice and opportunity to improve behaviourUnfair dismissal – dismissal on the basis of discrimination
39MEDIA AND HUMAN RESOURCES TASK: On a separate poster of Notepad, create a media file of current issues surrounding human resources
41Summary• The final stage in the employment cycle is the ‘separation stage’, in which employees leave the workplace on a voluntary or involuntary basis.• This stage must be handled carefully and sensitively by the human resource manager.• Voluntary separation occurs when an employee decides to give up full-time or part-time work and includes:– retirement– resignation– redundancy.• Involuntary separation occurs when an employee is asked to leave the business against their will and includes:– retrenchment– dismissal• Unfair dismissal occurs when an employer dismisses an employee for discriminatory reasons.Chapter 8, Management process, pg. 278
42ScenarioYou are the human resource manager in a large manufacturing company. You have become concerned about the performance of two valuable employees. Carlo has worked in the business for many years and is on a high salary because of his experience and skill development. However, he seems to have lost some interest in his work, especially after being recently overlooked for promotion in the business. Hermione is a single mother with young children. She is scheduled to start work at am, but is often late to arrive. She says she is unhappy with the poor pay she receives and is looking for a new job. She is a very good worker, who produces good results and is well liked in the business.Using this information, determine what motivates each employee.Propose the strategies you would adopt to motivate each employee.
43HOLDEN JOB CUTS: http://www. abc. net Lateline Lateline BusinessHome Vodcast Archives Contact Us AboutHolden pulls off U-turn on balance sheetPrintAustralian Broadcasting CorporationBroadcast: 12/04/2011Reporter:Holden has posted its first profit after six years of belt-tightening and job cuts thanks to a major restructure and a more local focus.TranscriptTICKY FULLERTON: After years of belt-tightening and job cuts, Holden is beginning to bounce back, posting its first profit in six years. The car manufacturer has bounced back from a $211 million loss in 2009, recording a $112 million after-tax profit last year. It's a significant improvement for Holden, which was forced to cut jobs at the peak of its financial woes. DAVE OLIVER, NATIONAL SECRETARY, AMWU: This company has turned around in a relatively short period and the benefit for the workers certainly is going to be in the area of job security. TICKY FULLERTON: Holden attributes its improved financial results to a major restructure and less reliance on exports. Growth is forecast to continue, with the first run of the Australian built Cruze now in dealerships around the country.
44Ethical and socially responsible business behaviour
45‘Businesses should only consider the law when making decisions’ DEBATE‘Businesses should only consider the law when making decisions’
47Summary• Social responsibility refers to a business’s management of the social, environmental, political and human consequences of its actions.• A socially responsible business tries to achieve two goals simultaneously:– expanding the business– providing for the greater good of society.• Social responsibility is good business.• Some businesses argue that making a legal profit is all that is required to act responsibly.• Today’s society has high expectations of business practices and greater awareness of business’s social responsibility.• A sustainability report/social audit is a report that details what a business has done, and is doing, concerning the social issues that affect it.Chapter 8, Management process, pg. 289
50ENRONFinancial Statements fudged: ABC radio national.
51Summary• The majority of businesses want to be seen as responsible corporate citizens.• The triple bottom line refers to the economic, environmental and social performance of a business.• Ethics are standards that define what is acceptable and unacceptable behaviour.• Business ethics is the application of moral standards to business behaviour such as:– fair and honest business practices– decent workplace relations– conflict of interest situations– accurate financial management– truthful communication.• A corporate code of conduct encourages ethical business behaviour.Chapter 8, Management process, pg. 285