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Introduction to Human Resources (MGMT1007) - Coggle Diagram
Introduction to Human Resources (MGMT1007)
External
The context of HRM
sustainable HRM
It shifts the focus from societal and corporate sustainable development to the level of the individual employee and the HR systems
key concepts of sustainable HRM
Acknowledges that HR practices will influence the extent to which people are attracted to work for an organisation.
Considers the relationship between HRM practices and outcomes beyond financial outcomes.
Acknowledges the detrimental impact of work intensification, temporary employment, excessive performance standards & low pay.
Some research has demonstrated that positive social/human and environmental practices flow positively to financial performance
Health is considered an important indicator of well being for both individuals and societies. Measures of the health of a population (e.g. life expectancy, mortality rates) are frequently used as indicators of societal effectiveness and country’s development.
Pfeffer found that operational decisions about how organisations reward and manage their employees have profound effects on human health and mortality. E.g. Having health insurance effects people’s well being. In the US, medical bills are a large contributor to bankruptcy.
The evidence links high working hours to poor health outcomes. It also increases the likelihood that people will face conflict between work and family responsibilities
Job design also has psychological consequences. High job demands which people can not control because they have little or no discretion over the way they work, coupled with socially isolating work, produces job stress.
There seems to be overwhelming evidence that organisational decisions about health insurance, redundancies, work design, work hours and the degree of inequality created by wage structures have profound effects on employee physical and mental health, and even life span.
sustainability categories and related HR activities
Foster employee wellbeing and health
improve workplace quality
create employee awareness for their health
promote a healthy lifestyle
keep the workforce fit
foster wellbeing of employees and their families
promote work-life balance
Reduce impact on HR
foster ergonomic workplace conditions (reduce risk of occupational illnesses
reduce and prevent stress
safety: reducing risk of work accidents, injuries and fatalities
Treating HR socially responsible
Ethics, caring for employees
support in job loss situations
Attracting talent and being recognised as the employer of choice
investing into employees and talent and their knowledge
offering career opportunities
offering an attractive and challenging work environment
cultural and gender diversity
fostering the company's reputation as a socially responsible and trustworthy employer, as a family friendly or working mothers friendly employer
recognise the importance of the work life balance
succession planning talent pool
job satisfaction, motivation
renumeration and employee benefits
Investing into the skills of the current workforce
investing in education
fostering life long learning
employee development and training programmes
vocational training programme or apprenticeships
talent management and internal succession management programmes
HRM's changing context
The global economic context
The standardisation of practices: the importance role of HRM
Receptivity of local workforce to adhere to corporate norms of behaviour
Effectiveness of expatriates as agents of socialisation
Whether localisation is timely (not just prompted by cost considerations)
Appropriateness to the local environment
Understanding the role of culture in HRM
Hofsteade's 6 cultural dimensions
Globalisation refers to the increased pace of economic and cultural interconnectedness between different countries. The interconnectedness of countries has deepened considerably in the past two decades
Increased labour mobility / decreased barriers for labour migration
Australia and free trade agreements
Impact of the Global Financial Crisis on HRM
The Australian context
Sector changes
increase in health and medical professions, professional, scientific and technical services, education and training and construction
Australia's minimum wage
The national minimum wage is currently $19.49 per hour or $740.80 per 38 hour week (before tax).
The national minimum wage provides a starting point to calculate your employees’ wages. However, most employees are covered by an award. Awards set minimum wages for employees based on the type of work they’re doing and the industry they’re in. Some employees may receive a decreased hourly rate if they are an apprentice or trainee
Changes in industry and occupational structure
Decline in agriculture- rise in importance of manufacturing
relative decline in manufacturing - rise of service/knowledge sector-
Digital disruption, internet services and virtual organisations
The ‘gig’ economy
Key features of the external environment
Hypercompetitive markets
Markets becoming increasingly competitive and subject to disruptive change. This is characterised by:
Shorter product and industry life cycles
Conditions undermine value of current resources and capabilities
Successful firms likely to be those that can respond rapidly to (short term) opportunities that appear. These organisations rapidly develop and more importantly implement changes in strategic direction. This is referred to as “dynamic capabilities”- the ability to rapidly respond to change
external influences on businesses and HR
Environmental
Government and community concerns affect job design, health and safety industrial relations and the image of an organisation as an employer.
Political
Political ideologies can range from supporting an interventionist approach – with extensive government regulation of HRM– to one of minimal involvement.
Legal
Laws and regulations regarding hours of work, holidays, EEO, sexual harassment, health and safety, privacy, terminations etc impact on HRM policy and practice.
Economical
For instance, economic activity, unemployment rates, public v private ownership, availability of credit, levels of taxes, degrees of economic planning influences recruitment, remuneration, labour turnover, industrial relations etc.
Industrial relations
Factors relating to IR, government policies, degree of unionisation, role of industrial tribunals, employee commitment and quality of work life shape job design, absenteeism, labour turnover, industrial disputes and the way pay and conditions are set in the organisation.
Labour force characteristics
Characteristics of the external labour market such as demographics, work force participation, geographical distribution, age, literacy, skill and education levels have a significant impact on HRM
Case Study: Challenges for HR managers in the Australian banking sector
NAB's turn to automaton
responses to the changes
new ways of working, a new challenge for HRM
new gig market
Current proportion of workforce which is casualised (2017): 22.6% of the workforce (2.32 million workers). How is quality controlled? What is the impact on organisational culture?
Outsourcing- (contracting out non-core functions of organisation)
Telecommuting – advantages and disadvantages
In 2012, Volkswagen blocked all emails to employees’ blackberries afterhours. Daimler took the step of deleting all emails received by employees while on vacation.
Emails after working hours
changing demographics
the gender pay gap
the principle of comparable work
Comparable worth prescribes that employees undertaking work of a similar content, same skills and qualifications but different occupations or in different organisational context should be remunerated at the same or similar rate/level.
fixing the gender pay gap
The full-time gender pay gap in 2015 was around 18%, with women earning on average only 82% of a man’s pay (ABS 2015). This means that a woman would have to work an additional 65 days each year to earn the same as a man.
Ageing population
Intergenerational conflict – multiple generations coexisting in the workplace.
Declining fertility rates
Declining mortality rates
Increasing working hours
Increased female participation rates in the workforce
changing nature of work and employment
working hours
Longer and harder
Non-standard working week
12-hour shifts
Evidence of work intensification and increased stress on homes and families
casualisation
Via casual employment, agency hire, sub-contracting etc
Short term and long-term employment
Limited access to benefits and leave
Deteriorating skill base
flexibility
Numerical - workforce divided into core & periphery workforce
Functional
Working time
Considerable debate over who benefits from the new flexibility
the new employment contract
Individualised agreements and fixed-term contracts
Effects on job security
Scaling down of employee entitlements over time
emergence of flexible work
The value of labour: informing HR strategy (the human capital characteristics and employment modes)
quadrant 2
Job based employment
Low in uniqueness
High in strategic value
quadrant 3
contractual work arrangements
Low in uniqueness
Low in strategic value
quadrant 1
Knowledge based employment
High in uniqueness
High in strategic value
quadrant 4
collaborative based HR configuration
High in uniqueness
Low in strategic value
The changing context in which HRM operates – globally and domestically, economically , politically and socially - has contributed to HRM’s rapidly changing role and its emergence as a key strategic partner in management.
HR practitioners need to continue to be responsive to changes in the organisation’s environment.
HRM and the Law
HRM issues
workplace policies
Articulate how human resource management issues will be dealt with
Communicate the organisation’s expectations of employee behaviours and performance
Ensure uniformity/consistency in decision-making and operational procedures
Workplace policies may regulate virtually every aspect of employment eg
Code of conduct
Recruitment
Internet, email & social media use
Drug and alcohol policy
health and safety
anti-discrimination and harassment
grievance handling
discipline and termination
Case studies: private vs public life- dismissals
blurred lines (Damien O’Keefe v Williams Muir’s Pty Ltd T/A Troy Williams The Good Guys [2011] FWA 4311 )
Focused on the comments made by Mr O’Keefe on Facebook regarding errors in payment for commissions he was owed
Mr O’Keefe’s statements deemed to be serious misconduct
Reference to handbooks and policies at the workplace which required workers to be courteous and polite to stakeholders
Conduct found to have undermined the business as well as the implied duty of trust and fidelity within the employment relationship
Application of unfair dismissal failed and appeal was not allowed
“The [employer] has rightfully submitted, in my view, that the separation between home and work is now less pronounced that it once used to be” – Deputy President Swan
Stutsel v Linfox Australia Pty Ltd (2011)
Mr Stutsel dismissed for alleged serious misconduct after posting comments that were both racially derogatory and sexually discriminatory towards two managers.
Key factors: that Mr Stutsel was inexperienced with facebook, the he used the maximum privacy setting (characterised NOT as a public forum), he had removed the comments quickly and had shown genuine contrition, and the fact that the company did not have a social media policy in force.
This conversation had ‘the flavour of a conversation in a pub or café, although conducted in an electronic form’
Statutes
Federal and State-based employment law also regulates employment relationships and industrial relations.
The Fair Work Act (2009) Cth aims to provide a unified system of industrial law in Australia. Some employees remain covered by state-level industrial law, where their employer is not a national system employer covered by the Fair Work Act.
The Fair Work Act is the current major federal industrial legislation. It replaced the Workplace Relations Amendment (Work Choices) Act 2005. However, the Commonwealth government’s intervention dated from the Conciliation and Arbitration Act (1904).
the national industrial law system
fair work system
The Fair Work system is the name used for the minimum employment laws and agency bodies that were created by the Fair Work Act 2009. It is the national employment relations system Modern awards for specific industries & occupations
10 minimum National Employment Standards (NES)
Modern awards
Modern awards reduced and simplified previous awards.
1560 awards were replaced with 122 Modern Awards.
The modern award conditions, together with the 10 NES form the safety net of working conditions
Enterprise agreements operate in addition to the above but must not undercut the minimum conditions Enterprise agreements must meet the Better Off Overall Test (BOOT)
Enterprise agreements
National minimum wage
Good faith bargaining requirements
Those involved in the bargaining process, including bargaining representatives are required to bargain in good faith.
Attending and participating in meetings;
Disclose relevant information in a timely manner;
Respond to proposals made by other bargaining representatives
Give genuine consideration to the proposals of bargaining representatives
Refrain from ‘capricious’ or ‘unfair’ conduct that undermines freedom of association or collective bargaining
Recognising elected bargaining representatives
Fair Work Ombudsman
Protection from unfair dismissal
BOOT test
Understanding the layers of regulation that form the employment relationship
Fair Work Commission
Fair Work Act
The Fair Work Act 2009: Implications
Micro-regulatory context
The rights of employees increased (compared to Workchoices)
Shifting the balance of power in the employment relationship.
Implications for HR
Requirement of good faith bargaining
Direct relations with employees
Legal liability and compliance
Macro-regulatory context
10 minimum standards of employment
Fair Work Commission is the main institution
Most private sector employees come under the one national system.
history of employment law
Australian industrial relations commision (AIRC), the Industrial relations act (1988)
Highly centralised and regulated system of employment law
Awards covered the majority of workers (80% until the late 1980s + up to 15% more influenced by awards)
(AIRC), Industrial Relations Reform Act (1993)
Emphasis on bargaining at the workplace level
Minimum standards protected via awards
Shift towards decentralisation
Commonwealth and conciliation and arbitration commission, and the commonwealth industrial court (1956)
Improved minimum standards. Eg equal pay, maternity leave
Workplace Relations Act (1996)
Continuing emphasis on direct relationships between employees and employers and greater labour market flexibiilty. Much reduced role for 3rd party intervention (ie shifting towards Unitarism). Voluntary unionism
Court of conciliation and Arbitration, legislation: conciliation and arbitration act (1904)
First body of its kind in the world.
Created to settle disputes between employees, unions and employers. Arbitral and judicial powers.
Decisions were known as Awards.
Minimum entitlements gradually introduced. EG: ‘Harvester case’ resulted in the introduction of a living wage, 40 hr working week, paid leave.
AIRC and Australian fair pay commision, on Work choices (2005)
Designed to improve employment levels and national economic performance by dispensing with unfair dismissal laws for companies <101 employees, removing the "no disadvantage test”
All employees of corporations were covered by this system (85% of workers)
Substantially changed the role of the Commission
Enabled workers to bargain for conditions without collectivised representation, and significantly restricting trade union activity.
It was argued that the laws stripped away basic employee rights and were fundamentally unfair.
legal obligations in the employment relationship
common law
created by judges
judges have made decisions pertinent
to employment. Eg contract law and negligence
statute law
created by parliament
Labour law – which governs the individual employment relationship
Industrial law – which regulates collective relationships
Discrimination law
Workplace Health and Safety laws
sources of legal obligations
The HR profession must be familiar with the legal framework which governs the employer/employee relationship and the legal issues which arise within employment relationships.
employment contracts
An employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. A contract can be in writing or verbal. An employment contract cannot provide for less than the legal minimum set out in the National Employment Standards or an Award/enterprise agreement
The common law also establishes the duties of both employers and employees which exist at law independently of the contract
the employer’s duty to pay an employee’s wages, to give reasonable notice of termination etc.
The employee’s duty of obedience, good conduct, and act with fidelity and good faith.
The FWA provides templates and guides for employers to reference
implications for HR policy
Legal issues for HRM
Discriminatory treatment of employees
State and Federal Discrimination Law potentially touches every functional area of HRM – eg recruitment, selection, opportunities for promotion, training and development etc.
Termination
Termination is regulated both by statute + common law.
Regulation pertains to various elements of the right to hire and fire – including reasons for termination, procedures, notice or termination payments required, complaint mechanisms and remedies for unfair or wrongful termination.
Workplace Health and Safety (WHS)
At state and federal level, governments have introduced legislation obliging employers to be responsible for occupational health and safety.
Currently, there is a move to unify all WHS regulation nationally.
HR and diversity management
3 dimensions
psychological diversity
values, beliefs, knowledge
organisational diversity
tenure, hierarchical level
demographic diversity
gender, ethnicity, age
Scholars have also defined diversity as
Observable attributes: ethnic, background, age, gender
Non-observable attributes: education, functional background, personal values
Functional characteristics: knowledge, skills, organisation experiences
It can be defined taking into account aspects of age, education, personality, sexual orientation, geographic origin, organisational tenure and function.
In simple terms, it emphasises the variety of race, ethnicity, nationality, religion and gender in the workplace.
In reality…’a strategy to create opportunities to attract the brightest talent from the entire human resource pool and then to develop and retain that talent in order to maintain a competitive position in the market’
The voluntary organisational actions that are designed to create greater inclusion of employees from various backgrounds into the formal and informal structures through deliberate policies and programs
Diversity Organisations
Negative
No equality or diversity policy; may act unlawfully; no business or social justice cases
Minimalist
It has a written policy, but senior managers unlikely to have much interest
complaint
Narrow business case of equality and diversity; has policies, but main focus on recruitment processes
comprehensive / proactive
Emphasises both the business case and social justice arguments; agenda about promoting and valuing equality and diversity
Australian legislation
Human Rights and Equal Opportunity Commission Act 1986
The Act requires commissions that are committed to working across levels of government and the community to assist in removing systemic and covert discrimination, where it exists, from being established in each state and territory
Equal Employment Opportunity (Commonwealth Authorities) Act 1987
The Act requires certain incorporated and unincorporated Commonwealth Government bodies to develop and implement an equal employment opportunity (EEO) program that is designed to ensure that appropriate action is taken to eliminate discrimination and to promote equal opportunity for women and persons in designated groups in relation to employment matters
Affirmative Action Act 1986
The Act is designed to ensure that appropriate action is taken to eliminate discrimination by the employer against women in relation to employment matters; and that measures are taken by the employer to promote equal opportunity for women in relation to employment matters.
Human Rights and Equal Opportunity Act 1991
Extended from the 1986 Act to specifically include religion.
Sex Discrimination Act 1984
The Act was designed to eliminate all forms of discrimination against women; to eliminate discrimination against persons on the grounds of sex, marital status, pregnancy or potential pregnancy; to eliminate discrimination involving dismissal of employees on the ground of family responsibilities; to eliminate discrimination involving sexual harassment in the workplace; and to promote recognition and acceptance within the community of the principle of the equality of men and women.
Disability Discrimination Act 1992
The Act was developed to eliminate, as far as possible, discrimination against persons on the ground of disability in a number of areas including work; to ensure that persons with disabilities have the same rights to equality before the law as the rest of the community; and to promote recognition and acceptance within the community of the principle that persons with disabilities have the same fundamental rights as the rest of the community.
Racial Discrimination Act 1975
The Act made it unlawful for anyone to behave in any way that would involve a distinction, exclusion, restriction or preference based on race, colour, descent or national or ethnic origin; or to offend, insult, humiliate or intimidate another person or a group of people on the basis of race, colour or national or ethnic origin.
Age Discrimination Act 2004
An Act developed to eliminate discrimination against people on the ground of age in various areas, including work; to ensure that everyone, regardless of age, has the same rights to equality before the law as the rest of the community; to allow appropriate benefits and other assistance to be given to people of a certain age, particularly younger and older persons, in recognition of their particular circumstances; to promote recognition and acceptance within the community of the principle that people of all ages have the same fundamental rights
Workplace Gender Equality Act 2012
An Act to require certain employers promote equal opportunity for women in employment and to establish the Workplace Gender Equality Agency (formerly the Equal Opportunity for Women in the Workplace Agency).
Definitions
Who is an employee?
No single factor determines whether a person is an employee or contractor
Instead, courts will look at each case and make a decision based on the totality of the relationship between the parties when determining the status of a person's employment.
Litigation leading to legislation
Working conditions within the gig economy and potential regulation in the space has been a major point of discussion in the recent years.
The Fair Work Ombudsman has launched legal proceedings against Foodora in what will be a major test case for the gig economy in Australia. The FWO used a “multi-factor test” to determine whether workers are employees or independent contractors, considering:
i. Foodora’s level of control over their hours and locations
ii. Requirement to wear a Foodorabranded t-shirt
iii. Non-negotiable hourly rate
iv. Performance criteria / consequences
A federal court recently found a truck driver who was employed as a casual for 2½ years by a labour hire firm was not a casual according the Fair Work Act due to the regular and continuous nature of his work on a fixed seven-day-on, seven-dayoff roster.
Hence, he was entitled to receive accrued annual leave pay on termination of his employment, even though he had received the casual loading.
The relationship
The relationship between an employer and employee is governed by a detailed set of laws. These legal obligations arise from contracts, legislation, statutory agreements, awards and the common law.
HR managers need to understand and comply with the legislation, and have an awareness of legal obligations owed by employers and employees to minimise an organisation’s exposure to disputes and litigation.
Despite a move towards a decentralised model of bargaining, the rise of HRM and enhancement of individual rights, the challenge of reconciling interests between employers and workers often remains
Industrial relations
Framework and key players
The bargaining framework
The Bargaining Framework is an umbrella term. It simply refers to the arrangements by which terms and conditions of work are determined. It refers to the ‘rules of the game’ and the ‘rules of the parties’.
It can include:
i. Legislation
ii. Institutions
iii. Participants/stakeholders
iv. Processes that are accepted
v. Instruments (eg Modern Awards or National Employment Standards)
Stakeholders in IR
Government
Employer
Governments act as employers in their own right – employing the public sector workforce
Governments often use their own workforce to role model new practices, - eg establishing pacesetting conditions
Tribunals
Establishing industrial tribunals charged with preventing and settling industrial disputes
Legislation
Legislation regulating dispute settlement, terms and conditions of employment, and the organisation and powers of other IR parties eg the Conciliation and Arbitration Act 1904 (now repealed); the current (Cth) Fair Work Act (2009)
Australia has had a rich history of government intervention in employment relations
1904 Conciliation & Arbitration Act
1980’s: Accords
1990’s: Shift to enterprise bargaining
2006: Work Choices
2009: Fair Work Act
The Fair Work Ombudsman & the Fair Work Commission are independent government organisations. They both regulate Australia’s workplace relations system but have different roles.
The Fair Work Commission is the Australian workplace relations tribunal, its key roles are:
Setting minimum wage & conditions
The minimum wage is the lowest base rate that an employee can be paid for ordinary hours worked. It must be adhered to by all businesses operating in Australia.
Every year, the Fair Work Commission’s (FWC) Expert Panel reviews the minimum wages received by employees in the national workplace relations system. The process involves
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The current National Minimum Wage is $18.93 per hour, or $719.20 per 38- hour week (before tax). Casual workers are covered by this national minimum wage, but they also must receive at least 25% casual loading.
Creating, updating and reviewing Modern Awards and penalty rates
The Fair Work Act provides that the Commission must conduct a 4 yearly review of Modern Awards.
Recent decision to vary certain penalty rate provisions in some awards for the hospitality, restaurant and retail industries.
The decision affects penalty rate provisions for some permanent and casual employees working on Sundays, public holidays, early mornings or late evenings in these industries.
Approving enterprise agreements
Dispute resolution
Decisions about industrial action
The Fair Work Ombudsman key responsibilities include
Enforce compliance with legislation, awards & agreements
Provide advice & education on pay rates and conditions of employment
Employers
Employees
Industrial tribunals
Employer associations (and employee associations)
in the past, employers formed employer associations to represent them in multi-employer bargaining and before industrial tribunals.
The emphasis of enterprise bargaining on single employer bargaining has led to a shift in the role of employer associations more to assisting individual employers.
Employer associations also provide services in training, award interpretation, legislation updates, HRM, dispute handling and how to counter union activity. Major employer associations include:
Business council of Australia
Australian chamber of commerce and industry
AI Group
Trade unions
A union is an organisation, consisting predominantly of employees, which aims to protect and promote the interests of its members.
Union membership enabled Australian employees to increase their bargaining power. By acting collectively, they could command higher wages and better working conditions than they might otherwise have received if they had bargained with their employer as individuals.
Union density contains the following patterns:
A higher proportion in the public sector than the private sector
Higher rates of unionisation among full-time than part-time workers
Higher unionisation levels for men than women
Highest rates of unionisation in power, water and gas supply; transport and government; administration and defence sectors
Trends in trade union density
In 1954, 59% of Australia’s workforce was unionised. Between 1990 and 2008 density declined from 40.5% to approximately 17%, but the slide has recently stagnated.
What might explain the decline in unionism?
Unions and the Fair Work Act 2009.
‘Industrial association’ is the term used to describe the organisations that may represent either employees or employers
‘Freedom of association’ refers to the rights of employees to belong or not belong to a union. The FW Act (s336) provides that employees are free to:
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Trade unions have no inherent privilege over other bargaining representatives that an employee may appoint
Applying frameworks to understand industrial relations
frames of reference comprises of the assumptions, values, beliefs that a person uses in their perspective of the world, it determines how managers manage, how employees respond and what other societal groups think
Alan Fox's industrial relations framework
Unitarist
Pluralist
Radical or marxist
Conflict between employer and employees is inevitable product of competing interests of employers and employees in our society;
Trade unions are logical employee reaction to exploitation and part of political process to fundamentally change society;
HRM is manipulative and exploitative of employees.
Organisations are coalitions of competing interest groups – it is management’s role to mediate those interests;
Unions are legitimate representatives of employee interests;
A strong union movement is a necessity;
Stability in IR is product of concessions and compromises between mgmt and unions.
IR is grounded in mutual cooperation, teamwork, and a sharing of common objectives.
There are no legitimate conflicting interests – conflict is pathological.
Trade unions are regarded as competitors for employee commitment and cooperation, interfering with managements’ right to manage.
Differing views of the employee relationship: case studies
7 eleven
$150M has been back paid to 3,600 workers (average $41,000 each!)
Company founder & CEO have resigned.
The company has also announced a new hardship program to help stores that were making almost no money & has changed the way it shares profits with store owners.
The Fair Work Ombudsman conducted an investigation into the systemic wage fraud and found that head office "compounded" the problems by failing to use systems and processes to detect or address deliberate worker exploitation.
The fallout prompted the government to beef up the resources and powers of the regulator, set up a Migrant Workers Taskforce (headed by Allan Fels) and change the legislation so that franchisors will now be held responsible for wage fraud by their franchisees.
Individual franchisees fined $200 – 400k
Qantas dispute 2011
the scene
Qantas is trying to ↓ costs by outsourcing to lower cost providers
Jetconnect is 100% owned Qantas subsidiary in NZ. NZ pilots were employed by Jetconnect to fly Qantas planes How will this reduce costs?
The AIPA lost their bid to require Qantas to extend AU pay and conditions to the Jetconnect pilots because they were covered by NZ employment laws. Why was this such a concern to Qantas pilots
Industrial action from pilots, engineers & baggage handlers continued
2011: Qantas locked out employees & grounded the fleet
the result
Government requested Fair Work Aust intervene due to the impact on the economy. FWA terminated the industrial action.
New redundancy pay arrangements.
Former agreement: 3 weeks pay for every year of service up to 5 and 4 weeks pay for years of service thereafter.
New determination: 7 weeks pay for every year of service up to 5 and 8 weeks pay for years of service thereafter.
Nothing on contracting out or off-shoring.
What is industrial relations?
concept
The term ‘industrial relations’ (or employment relations and workplace relations) is used to describe the formal relationships between employers and trade unions or other collective groupings of employees, together with the institutional arrangements that arise from those relationships.
relationship to HRM
The relationship between HRM and IR is often uneasy and contested
For many HR practitioners, IR refers specifically to the management of the employment relationship with a unionised workforce. However, a union presence is not necessary.
For HR managers to be effective ‘they need to understand IR and all that it covers; that is, the dynamics, contradictions and tensions of the
employment relationship
’. (Nankervis et al, text, p83 7th ed.)
What is the employment relationship?
The relationship is interdependent in nature, that is, both workers and employers have an interest in the organisation’s viability
An economic exchange
an agreement between the employer and employee over the sale of the employee’s potential to work.
A power relationship
whereby the employee agrees to submit to the authority and direction of the employer.
It is also a continuous and open-ended contract
employees can modify and restrict their work effort;
employees can combine collectively to challenge managerial authority
The various parties can have conflicting priorities (e.g. over wages, employment conditions and managerial prerogatives) and this can lead to industrial conflict
This gives rise to the
bargaining framework
; ‘the rules, regulations and institutions that govern the employment relationship and which set the terms and conditions of work and employment’ (see Nankervis, chapter 3).
HRM influences and is influenced by this system
. HR practitioners must work within the regulatory framework it provides and make corresponding strategic choices.
The implications on HR practices and policies
Industrial relations and HRM are both concerned with the relationships between employees and employers at work.
For HRM practitioners, the IR system – its participants, the framework, frames of reference, and the system’s outputs - provide a continuous source of regulation and influence over HRM policy and practice.
An understanding of this system is therefore crucial to the effective management of people.
Strategic employment relations
Strategic employment relations: A theory of change in Labor-Management Relations (Walton et al. Strategic Negotiations, 1994)
Strategic choices: role of regulation
Industrial relations processes
The processes of industrial relations deal with the mechanisms for establishing wages and employment conditions and handling industrial disputes
Collective bargaining
– the process of negotiating between management and groups of employees and/or their unions. The FWA requires compliance with Good Faith Bargaining practices
Dispute resolution processes include
Conciliation - the process of a third party such as the current national tribunal, Fair Work Australia (FWA) assisting management and unions to reach an agreed settlement.
An alternative may be private mediation.
Arbitration refers the process of a third party (eg FWC) making a judgment. This is rare now.
Fair Work Act “achieving productivity and fairness through an emphasis on enterprise level collective bargaining underpinned by simple good faith bargaining obligations” Section 3(f)
Commitment
Emphasis is on cooperative partnerships, manifested in joint structures and processes for sharing power & responsibility
Evidence of parties experimenting with quality circles and other forms of employee participation programs
Compliance
The parties acknowledge conflicting interests of employees and employers; emphasis on achieving equitable outcomes
The parties place joint emphasis on mutual goals and integrative potential, as well as on increasing the “size of the (resource) pie”
Power & responsibility for managing the business are concentrated in management while diminishing the union’s role
Cooperation / foster
The parties place joint emphasis on mutual goals and integrative potential, as well as on increasing the “size of the (resource) pie”
Emphasis is on cooperative partnerships, manifested in joint structures and processes for sharing power & responsibility
Accommodation / force
The parties acknowledge conflicting interests of employees and employers; emphasis on achieving equitable outcomes
Evidence of parties experimenting with quality circles and other forms of employee participation programs
Avoidance / escape
Power & responsibility for managing the business are concentrated in management while diminishing the union’s role
Internal
Managing Performance
performance management and HRM
What is performance management?
case studies
spotify
Spotify fundamentally believes that performance and development go hand in hand.
Spotify’s performance and development approach is loose and contains very few mandatory elements. No mandatory schedule or agenda. No ‘reporting back’ to HR.
It is all held together by tools and training programs for both managers and employees. Checklists are provided to ‘support and inspire’.
Key pillars:
Great conversations. Even if there is a continuous dialogue, two ‘development talks’ per year are recommended for a more in-depth conversation.
Every employee owns and drives their own development talks, they initiate the meetings and gather feedback from peers. In the talks, they look at the past a little, but the main focus is on the future and the potential.
Performance is not just about reaching a goal. It’s about being a role model.
Compensation review: the organisation ‘pays for performance’ and hence the performance development approach feeds into compensation review.
netflix
the performance management cycle
Managing performance is a cyclical process. It involves setting performance standards, evaluating performance, providing feedback, establishing improvement plans and managing ineffective performance.
week 9 slide 6
strategically aligned perfomance management
Ideally, it is also a developmental tool.
Performance management is the process through which managers ensure that employee activities and outputs are congruent with the organisation’s goals.
It includes defining, facilitating and encouraging performance, measuring performance, feeding back performance information and managing poor performance.
Remember, performance appraisal of review is simply one element in an integrated and continuous system of performance management
Establishing performance standards
Relevant to job
Relate to both quality and quantity of output
Able to identify individual contributions
Quantifiable and measurable
SMART goals
primary performance review methods
behaviourally based methods
Behaviourally Anchored Rating Scales (BARS)
example:
levels of performance
levels of seniority
Analytical Thinking is the ability to identify patterns across situations that are not obviously related, and to identify key or underlying issues in complex situations.
Level 1. E.g. Assistants, secretaries
Distinguishes between critical and irrelevant pieces of information.
Gathers information from a variety of sources to reach a conclusion.
Level 3. E.g. Statistician, Economists/Policy Analysts, IT Analysts and HR Advisers.
Identifies critical connections and patterns in information/data.;
Soundly analyses verbal and numerical data.
Independently engages in tasks requiring interpretation of complex and often vague data sets.
Identifies gaps in information and makes assumptions in order to continue analysis and/or take action.
Level 5. E.g. Heads of Division, Counsellors, Deputy Directors
Is sought out by others for advice and solutions on how to best interpret and use information.
Discerns the level of pressure or influence to apply in each aspect of the analysis in relation to the broader context.
criticism of BARS
Activity oriented, rather than results oriented
The process of creating and implementing BARS is timeconsuming
Gathering rich performance data can be time-consuming
If behavioural descriptors are not comprehensive managers may have difficulty identifying the correct rating.
Some argue that the model is subjective
advantages of BARS
Focuses the employee on desired behaviours
Clear behavioural indicators can make the process simple to follow
Can be tailored to any job - the manager simply needs to identify which behaviours are most important for success in a role.
Can be both qualitative and quantitative
What is BARS?
Define the behaviours associated with success in the role. Performance is assessed in terms of specific behaviours.
Qualitative & quantitative performance measurement instrument.
Descriptions of behaviour placed along a scale or continuum. These descriptions can help reduce rating errors & subjectivity.
BARS can be useful where how the work is performed is as important as the actual results achieved. It may be a useful complement to results based methods.
Focus on behaviour demonstrated
Rating scales are used to record behavioural observations, which include behavioural descriptors or ‘anchors’ (BARS)
results based methods
Management by Objectives (MBO)
criticisms of MBO
Time consuming
Positive / active participation from employees is not always forthcoming
SMART goals are not easy to formulate
Bureaucratic
Focuses employee only on outcomes (potentially at the expense of behaviours). Encourages instrumental goal-oriented behaviour
Problems arise when production cycle does not align to review cycle.
advantages
Employee goals are linked to organisational objectives
Focus on future rather than past
Motivating to see how your role contributes to the bigger picture. Employees understand how their role contributes to organisational success
Clarity of goals (e.g. SMART objectives)
what is MBO?
Focus on goals rather than activities or behavioural traits
Organisation goals trickle down to the individual employee level.
MBO requires consultation between managers and employees
The Balanced Scorecard model
Each of these perspectives focuses on a different side of the company, creating a ‘balanced’ view of the organisation.
Focus on goal setting & achievement.
Examples include Management By Objectives (MBO) & Balanced Scorecard
Performance reviews/ appraisals
The traditional approach
A performance review (or appraisal) is a systematic evaluation of employee performance. It gives the manager an opportunity to provide feedback to employees on how well they are performing and to discuss their future development. The key messages are usually documented.
Frequency of formal reviews vary, however many large organisations have traditionally had an annual review and a less formal ‘check in’ half way through the year. The results of performance reviews often - but not always - impact remuneration.
Factors which increase effectiveness of reviews:
Performance standards need to be valid…& communicated to employees
Manager needs to provide constructive & meaningful feedback (both positive and developmental feedback)
Two way conversation between the employee & manager
Focus on results & behaviour, not the person
Process needs to be perceived to be fair / applied consistently
who provides the feedback?
Supervisor Review
Self-review
Peer review
Subordinate review or upward review
360-degree feedback
Benefits of Performance Reviews
Managers can provide feedback on how employees can improve their work…which can enhance organisational performance
Identify employee performance gaps or training needs
Provides data to inform remuneration (salary increase or bonus) decisions
Can provide a rare chance for a managers and their employees to have an uninterrupted conversation about important work issues…that might not otherwise have been addressed
Development of psychological contract
Retention tool
Errors common to performance reviews
Overcoming common challenges
case study: deliotte
drivers for change
Deloitte identified it needed a more nimble, real time and more individualised system that focused on fueling performance in the future rather than assessing it in the past.
Completing forms, holding meetings & discussions about the outcomes of the process took Deloitte 2 million hours per year.
Conversations about year end ratings are generally less valuable than conversations conducted in the moment about actual performance.
what they did
The Performance Snapshot
After each project (or quarterly for long projects) team leaders respond to these 4 ‘future focused’ questions. The purpose is to highlight differences between employees, and measure performance
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Three objectives of the performance management process:
see performance
fuel performance
reward performance
3 interlocking rituals to support these objectives:
The weekly check in
The quarterly or per-project ‘performance snapshot’
The annual compensation decision
Effective reviews depend on managerial capability. E.g. ability to deliver quality feedback.
Assessor training (e.g. around how to give constructive feedback, awareness of rater errors etc).
Reviews hold people accountable for past achievements at the expense of grooming talent for the future / to maintain competitive advantage.
Split appraisals into separate conversations about accountability and growth.
Evaluations can be superficial or biased.
Feedback for multiple sources e.g. 360 or 180. Lack of reviewer ‘accountability’
Feedback only flows one way.
Subordinates can contribute to their supervisor’s own performance review.
Ambiguity around performance criteria.
SMART goals should be agreed upon at the beginning of the performance cycle.
Employee anxiety around the process. Concerns about the ‘element of surprise’. Feedback is not timely if it is not shared until the formal review.
Mandatory regular performance coaching. The performance review at the end of the performance period should be a summary of previous conversations.
Frustration that the discussion/outcomes don’t lead to anything meaningful.
Concentrate on opportunities for growth that exist within the framework of the employee’s present position.
Annual goals are not relevant in the ‘real time’ world today
Quarterly or project-based goals.
Lack of commitment to the process.
CEO / senior managers need to lead by example.
typical rating errors
Halo error Leniency or strictness
error
Error of central
tendency
Recency error Stereotyping
Creating a performance culture
Underperformance vs misconduct
misconduct
managing misconduct
Underperformance is not the same as misconduct. Misconduct refers to behaviour so serious that it warrants instant dismissal E.g. theft or assault.
underperfomance
Causes of Underperformance
The employee doesn't know what is expected of them
The employee does not have the knowledge or skills
Poor relationships between team members. Interpersonal differences. Workplace bullying.
The employee does not know if they are doing a good job because they have not received feedback
Lack of personal motivation. Poor’ job fit’
Personal issues. E.g. family related, health, financial, drugs or alcohol
Job structure / poor workforce planning
Examples of underperformance can include:
Unsatisfactory work performance, that is, a failure to perform the duties of the position or to perform them to the standard required
Non-compliance with workplace policies, rules or procedures
Unacceptable behaviour in the workplace. Eg disruptive or negative behaviour that impacts on co-workers.
Do’s & Don’ts
Dos
Keep in regular contact with each person that works for you. Regular feedback helps people to understand what they are getting right and the areas where they need to improve.
If needed, follow up to make sure work is done.
Address performance issues promptly – don’t wait until the formal review.
Provide clarity around expectations.
Document feedback shared to minimise legal exposure.
As your organisation grows, consider creating a performance management policy.
Don'ts
Forget that performance is a function of ability and motivation.
Assume people know how they are doing – tell them.
Assume that by staying silent, things will sort themselves out – they won’t.
Wait until the end of a probationary period to raise an issue.
Accept shoddy work or lame excuses.
Reward laziness by giving the work to someone else.
Forget to tell people when they do a great job.
Context is crucial in evaluating
One off or repetitive issue?
Has the employee received adequate training?
Consider overall performance
Is this a job fit issue?
Has feedback been shared previously? If so:
Did the employee clearly understand the gap between actual performance and required performance?
Was it documented?
How conscientiously has the employee tried to improve?
Have they been given adequate time to improve?
The degree to which the performance management program benefits the organisation depends upon the quality of techniques used and their implementation by managers.
Managing performance is not ‘in addition’ to the job of a manager - it is the job of a manager
No single ‘best practice’. No recipe to follow. It needs to be tailored to the organisation. However, both academic research & business experiences emphasise the importance of:
Replace isolated annual reviews with more frequent, informal check in’s
Short term (e.g. quarterly or project based) goals, rather than annual
Candor. Transparency.
Shift away from a single numerical rating
Focus on the future, not just the past
workplace counselling programs
Employee assistance programs
An Employee Assistance Program (EAP) is an employer funded counselling service to help employees deal with social and emotional problems that impact on their wellbeing and on their work.
most of the time they're implemented to support employee health and wellbeing, to implement best practice and to enhance perceived duty of care
Strategic Rewards Management
rewards and business objectives
what are rewards
‘Tangibles or intangibles that an organisation provides to its employees in exchange for the employee’s potential or actual work contribution to which individuals attach a positive value as a satisfier of certain selfdefined needs’
why do we need them
objectives of a rewards system
Motivate
managing employee motivation
Design of rewards systems needs to be informed by an understanding of motivation theory.
On a practical level, expectancy theory and the theory of psychological contracting tell us four quite important things:
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Understanding Motivation: Vroom’s Expectancy Theory
The expectancy theory of motivation focuses on outcomes (not needs like Maslow/Herzberg).
Vroom, hypothesises that in order for a person to be motivated that effort, performance and motivation must be linked. He proposes three variables to account for this: Valence, Expectancy and Instrumentality.
Ongoing motivation at work is affected by
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Employees to contribute to the best of their capability by recognising and rewarding high individual and group contributions to meeting the organisation's strategic objectives
Efficient administration of labour costs
Strengthening the psychological contract
Promoting ‘organisational citizenship’
Compliance with legal regulations
develop
The required workforce capabilities by recognising and rewarding employees for knowledge, skill and ability enhancement
Retain
The best people by satisfying their workrelated needs and aspirations and recognising & rewarding their contributions
Attract
The right people at the right time for the right jobs, tasks or roles
Remuneration is a critical part of strategic HRM
Aim is to maximise contribution of human resources to organisational effectiveness and success.
Aligning rewards & business strategy
Week 10 slide 7
things to keep in mind
One size does not fit all
Provide all legally mandated employee entitlements
Tailored to the strategy of each organisation and, where appropriate, to the specific strategies of distinct business units within the organisation.
reward systems
financial and non financial award
financial
direct
variable (incentive) pay
Bonuses
Commissions
Salary supplements
Merit-based increases
Share options
allowances
Overtime/ penalty rates
base pay
indirect
Insurance
Superannuation
Medical and health
Childcare
Employee assistance
Flexible work schedules
Company car
Subsidised loans
Subsidised gym membership
non financial
job
Job Security
Interesting work
Challenge
Responsibility
Recognition
Advancement
Performance feedback
environment
Good HR policies
Competent
Supervision
Congenial
Colleagues
Safe, healthy environment
Fair treatment
Opportunities for learning and development
Open communication
total reward managment
extrinsic rewards
Associated with, but external to the job
Financial rewards
i. base pay ii. benefits iii. performance-related
Development rewards
other indirect / non-cash benefits
career progression
succession planning
learning, training and development
Social rewards
other indirect / non-cash banefits
work/life balance
work group affinity
performance support
organisational climate / management culture
intrinsic rewards
…to the content of the job itself
task variety
autonomy
responsibility
task variety
the reward mix
base pay
options for base pay
person based
position based
Payment according to the ‘size’ of the job or position held
Remains the dominant mode of remuneration in most developed countries
Traditional job-based pay structures:
pay scales (or spines)
pay grades (narrow grades)
The foundational or fixed component of employee remuneration - this is generally regarded as the pay best suited to addressing the objectives of staff attraction and retention
benefits
mandatory benefits
Include such benefits as superannuation, workers’ compensation, various forms of paid leave.
Provision for employee economic security
voluntary benefits
Enhance an organisation’s ability to attract and retain high-value employees and offer employees a more appealing ‘value proposition’
Includes such benefits as company cars, self-education, computers, mobile phones, subsidized meals, discounted mortgages, and salary sacrificing for school fees, cars and gym membership.
Financial entitlements that directly supplement the cash base pay, including employer contributions to superannuation, low interest loans, school fee assistance etc.
performance related pay
critical issues
The behaviour/performance LINK must be clear;
Pay increases must follow immediately on performance for connection to be apparent;
The process for determining payment entitlement and amounts must be valid and reliable;
Implications for psychological contract
The importance of trust
Equity and fairness
Expectancy theory – what is essential is relative levels compared to past and future expectations and peers;
Pfeffer claims that, despite their popularity, most plans share two attributes:
They absorb vast amounts of management time and resources, and they make everyone unhappy.
perfomance based pay
case for
PBP motivates behaviour
Distributive justice
Reduce the need for other types of management control
Signal key desired behaviours – therefore focusing effort in desired directions
Supports a performance oriented culture and entrepreneurial behaviours.
case against
Can motivate people to pursue one thing above all else
Rewards can rupture cooperative work relationships. Encourages destructive, competitive behaviour
Rewards discourage risk-taking
Can undermine intrinsic interest in the job / can damage motivation
Performance incentives lead to an entitlement mentality;
Send symbolic message that management believe employees will not perform without material incentives.
‘Performance-based rewards (or incentives) are rewards given in recognition of past performance (individually or collectively) and in order to reinforce and enhance future performance.’
types of prp options
collective / group short term incentives (STIs)
Organisation-wide long term incentives (LTIs)
individual performance related award plans
Also known as incentive plans, these are financial rewards given in recognition of past performance and in order to reinforce and enhance future performance
No system for remunerating employees is perfect. However, a systematic approach reduces subjectivity and increased the likelihood of an organisation attracting, retaining and motivating suitable employees and gaining a competitive advantage.
Contemporary issues: executive pay
Executive pay. Does PRP deliver at the CEO/Executive level?
Community concerns regarding increasing inequality and unfair distribution of income
Remuneration Report – 'Two Strike' Rule
Retained bonuses / bonus claw backs
Learning, Development and Retention
Difference between training and development
What is human resource development?
Human resource development (HRD) can be defined as: ‘a set of systematic and planned activities designed by an organisation to provide its members with the opportunities to learn necessary skills to meet current and future job demands’
what is training
Training refers to specific, generally short-term methods to transfer knowledge and skills. Can be formal or informal.
what is development
Development is usually a longer-term process focused on the acquisition of more complex and deeper competencies
triggers to employee development
Regulatory requirements
Staff retention
New products
Changes in manufacturing process or management systems
Improving quality of existing services/products
Refocusing strategy – org/culture change
Compliance requirement
Learning organisations
What are they?
a company that is continually upskilling, sharing knowledge, learning organisations:
‘...continually improves by rapidly creating and refining the capabilities required for future success’ (Wick and Leon, 1995)
‘...facilitates the learning of all its members and continually transforms itself’ (Pedler et al, 1989)
‘...is skilled at creating, acquiring, and transferring knowledge, and at modifying its behaviour to reflect new knowledge and insights’ (Garvin, 1993)
Places strong emphasis on the strategic use of human resource development to enhance intellectual/human capital – and hence the ongoing contribution of people to an organisation’s goals.
A learning organisation is one in which people at all levels, individuals and collectively, are continually increasing their capacity to produce results that serve to achieve their shared vision.
Continual focus on learning, knowledge transfer, improving and evaluation.
characteristics of learning organisations
enablers of creating a learning organisation
Increased participation of individuals in decision/policy making
Empowerment of individuals
Strong leadership support
Enhanced dialogue and collaboration between individuals
Effective change and renewal of organisational culture
Cultivates open feedback. E.g. 360 reviews, customer feedback
Understand the root cause of problems
Employees try to achieve personal mastery. People create their own benchmarks for personal success
Failure is ok.
Cultivate a common vision.
Learning from others SIS (steal ideas shamelessly) aka benchmarking
Experimentation. Systematic search for new knowledge and continuous improvement
benefits of learning organisations
Agility. Ability to respond to competition or external pressure
Systematic problem solving
Employees are more resourceful, which can lead to innovation
Knowledge can be transferred quickly and efficiently through the organisation. E.g. via secondments
Aid employee retention
People learn faster
… all of which can create a competitive advantage
barriers to becoming a learning organsiation
learning and employee development
Insufficient buy in from employees.
Size of the organisation can be an inhibitor. As headcount increases, the nature of communication changes. Employee connectivity can reduce.
Organisational structure - traditional hierarchical structures can impede sharing of knowledge.
The environment/culture needs to tolerate/encourage failure.
Theories on how people learn
learning styles and methods
training programs
Research on learning styles and strategies suggests that people learn in very different ways – people have different preferences in relation to how they gather, select and process information.
When designing training and development programs, HRD practitioners need to consider matching techniques to the learning needs of employees.
James and Galbraith, for instance, identified different perceptual preferences
visual learner vs auditory learner vs learning by reading vs learning by doing
types of learning
didactic learning
Teacher centered method
Learner plays a relatively passive role. i.e. minimal interaction between students and teachers.
Content oriented. Information presented in logical way.
drawbacks
It does not satisfy the learning needs/preferences of all students.
One direction communication can be tedious for students to listen to.
experiential learning
Concept developed by David Kolb.
Focuses on the learning process for the individual.
Involves experimentation and learning firsthand and reflecting afterwards.
Many consider it an effective / motivating way to learn.
drawbacks
It requires self initiative.
The learner needs the ability to reflect on their experience, and problem-solving skills
how do people learn?
Honey and Mumford’s Typology
Key features of each type of learner include:
Activists learn by doing.
Activists have an open minded approach to learning. Learning activities for activists include brainstorming, problem solving, puzzles, role plays.
Reflectors learn by observing and thinking about what has happened.
Prefer to stand back and consider experiences from a number of perspectives, collect data and draw conclusions. Learning activities for reflectors can include time out, observing activities, coaching/feedback.
Theorists like to understand the theory behind the actions.
They like models, background information, facts and to analyse. Theorists respond well to logical, rational structure and clear aims, where they are given time for methodical exploration and opportunities to question and stretch their intellect.
Pragmatists need to be able to see how to put learning into practice in the real world.
They like to experiment to see what works. Learning activities for pragmatists are practically-based & immediately relevant. E.g. case studies.
Based on Daniel Kolb’s work (1984) and Honey and Mumford (1992) proposed four basis modes of learning
They suggested that effective learners use all four methods, but the emphasis may vary for each
Turning theory into practice: learning and HRM
Preconditions for learning
Employee motivation
Individuals recognise the need to acquire knowledge/skills
continuing desire to learn
Why do individual employee’s attitudes towards training, development and career management vary?
Life cycle issues include:
Work-family conflict issues
Dual career issues
Levinson et al (1978) Model of Adult Development – divides adulthood into early, middle and late stages, with transition phases between each stage – and at each stage of adult life cycle, employees may express different preferences.
Orientation to work e.g. instrumental orientation vs ‘living for the job’
Individual’s view of career e.g. traditional linear career, portfolio career, spiral careers.
Employee readiness
Maturity and experiential factors
Background knowledge and skills
Methods of Employee Development
On the job vs off the job learning
Off-the-job Learning
Classroom and laboratory training
E-learning
Simulation methods
Apprenticeships and internships (these involve combination of on and off-the-job learning)
Conferences, seminars and workshops
Case studies
Role-playing
Management games
Outdoor learning & adventure training
University and TAFE education
On-the-job Learning
Ease of organising and administering training
Lower costs associated with training
Commonly conducted by a supervisor or senior employee
Hands-on experience
Builds relationships
Can lack formal structure
Poor training skills can impede effectiveness
examples include
Coaching and mentoring
Understudy assignment
Shadow executive
Job rotation
Project and committee assignments
Staff meetings
A useful way of distinguishing various approaches to HRD
Developing Non-managerial & Managerial employees/capacities
Evaluation of the Training Function
Management will believe the money spent on L & D is worthwhile only if programs add measureable value.
It is therefore critical that HR managers assess and communicate the benefits of all HRD interventions.
There is a range of measures of HRD effectiveness including:
Reactions of participations – often called ‘happy sheets’
Tests of learning accomplished
Measures of behavioural change in the workplace e.g. improved onthe-job performance
Hard data on productivity, quality, sales and other measures of the bottom line – the return on in investment (ROI) question.
Talent Retention
reasons to leave
Job satisfaction
Lack of appreciation (not valued)
Workload, too many responsibilities
Career development (lack of)
reasons to stay
Flexible work arrangements
Leadership style with focus on employees’ development
Systematic approach to provide an environment where employees’ needs are addressed in order to keep talent in the organisation.
Retention strategies include
Incentives (financial, non-financial)
Norms and values
Coercion
Emphasis was on attraction, but it is moving to retention.
The costs of any learning and development investment cannot be sustained when employees (receiving such an investment) leave the organisation too quickly.
The old ‘one size fits all’ approach will be ineffective
A systematic approach to learning & development involves assessing needs, selecting methods with an eye to people’s learning preferences and styles, and evaluating the effectiveness of programs undertaken
importance of training and development
deloitte's human capital trends of 2017 importance outstrips readiness for all 10 trends
top three trends are learning, human experience and leadership
Contemporary issues: retention
changing values and motivations across generations
contemporary issues: employee development
Greater emphasis on experiential learning
More tailored forms of training
More mentoring and coaching
Customised career paths – ‘portfolio’ careers
Focus on ‘people skills’
Learning & development is now recognised not simply as a desirable HR activity but as critical to competitive success – human capital is viewed as a principal driver of competitive advantage.
Induction and orientation
beneifts of induction
Workplace safety
Increases operational efficiency
Deepen the psychological contract.
Educates new employees around the organisation’s culture, people, products/services, systems and goals.
Create a feeling of belonging. Integrate new employees into the company.
Increased employee retention, and therefore lower recruiting and training costs
A reduction in the new employee’s anxiety
Create a channel of communication between employee / their leader (and possibly HR)
Training starts when an employee enters the organisation and is taken through a formal orientation process
‘… the formal process of familiarising (or “orienting”) new employees with the organisation, their job and the work unit’.
Tailored to the individual:
Meet the team / key stakeholders
Role-specific information
Expectations & performance standards
Methods used in orientation:
Formal ‘corporate’ induction courses
Manager lead induction
Intelligent online/virtual systems
Organisational content:
Company structure
Employee benefits / facilities
Tour of premises
Corporate policies
Compliance training
Safety procedures
Negotiating at the Workplace
Conflict in the employment relationship
sources of conflict
Leaner organisations
Competitive global environment
Changing employment relationships
Cultural, personal differences
Philosophical differences (eg pluralism v unitarism).
The challenge for HR is how to manage the process of change and to effectively manage conflict.
workplace disputes
types of disputes
rights based disputes
concerned with the enforcement of a statutory based privilege
interest based disputes
where the parties are simply attempting to secure an outcome that is beneficial to them
workplace vs industrial disputes
industrial disputes
industrial action
Industrial Action under the Fair Work Act
The FWA has recognised the employment relationship can be contested
Individual right to appoint a bargaining representative
The bargaining process being governed by good faith bargaining obligations
If workers want to withdraw their labour, they need to take a vote. E.g. bus dispute
Employers can also take action (e.g. the Qantas dispute)
FWC’s power to resolve conflict is much less than earlier central bodies. Only if there is serious risk of economic harm, the parties can be ordered back to work. Eg Qantas
Each organisation needs to have a dispute resolution process
Democratisation of the process
Employers may lock out their employees (refusing to
allow them to work).
Employees may go on strike (refusing to attend or perform work) or impose work bans (refusing to perform one or more of their normal duties).
Industrial action can be taken by employees or employers.
Conditions of employment
Rights and privileges
workplace disputes
Lower level than industrial disputes
Result of differences of opinion
Do not generally involve the threat of lost time and/or bans
what are workplace disputes?
Disputes can arise at any workplace. A dispute is where people disagree and the matter remains unresolved.
Modern Awards & enterprise agreements should contain a dispute resolution process.
If the dispute remains unresolved after following the dispute resolution procedure in the workplace, the parties may jointly or individually apply for the matter to be heard by the Commission.
It is often less stressful and costly to resolve disputes at the workplace before involving the Fair Work Commission for help, as engaging to the Commission begins a formal legal process.
consequences of conflict
positive
Heightens awareness of issues
Catalyst for organisational change
Strengthens existing relationships
Heightens morale
Promotes awareness of self and others
Enhances personal development
negative
Increased competition between parties, less cooperation
Anxiety, fear, irritation and frustration
Breakdown in communication
Exclusion of others
Divergence from core issue
Lack of flexibility
Escalation of conflict
Alternative dispute resolution processes
historical perspective: how was conflict mediated by the law?
Failure to obey reasonable orders was seen as a breach of contract and common law duties
Could constitute unlawful interference in trade, or conspiracy to cause harm
Result? Workers could be sued for refusing to do their work
Alternative Dispute Resolution (ADR)
benefits
ADR can facilitate the resolution of disputes without going to court.
Saves time - resolution is possible in weeks or months compared to court which be years.
Saves money, including lawyers fees, experts, lost time at work.
Puts parties in control ,instead of their lawyers or the court. Parties have more say in the final decision.
Focus on the issues, rather than legal rights/obligations.
ADR can help people come up with flexible and creative options.
Preserve the ongoing relationships of disputants (litigation can destroy it). ADR helps people co-operate rather than creating a winner & a loser.
Result in heightened commitment to the resolution.
case study: sydney water
New Approaches complements the Commission’s existing dispute resolution and bargaining functions by providing a formal process to help parties to work together effectively to prevent disputes before they develop.
The services the Commission may provide include
training in dispute resolution
help with enterprise bargaining
training and assistance in collaborative workplace change, including training for consultative committees
the relationship between the company and the union could have been described as hostile, with up to a dozen different disputes before the Fair Work Commission. Now, not a single dispute has been notified to the Commission in almost two and a half years.
what is ADR?
Alternative dispute resolution (ADR) refers to the methods used to resolve a conflict without resorting to litigation. The word 'alternative' indicates that these processes are an alternative to having a decision made by a judge or magistrate in court.
Thousands of people use alternatives in court each year to resolve civil disputes. The shift towards unitarism government is encouraging organisations to resolve disputes locally.
Examples include negotiation, mediation, conciliation or arbitration.
Many contracts also require people to use ADR rather than court processes as a first step if any disputes about the contract arise.
ADR can be used at any time during the dispute - before, during or after legal proceedings.
Workplace conflict resolution and negotiation strategies
negotiation
what is negotiation?
skills
Active listening
Verbal communication
Empathy
Strong interpersonal skills
Problem solving and conflict resolution
Contractual knowledge and skills
‘Negotiation (or bargaining) involves the bringing together for examination, comparison and argument the opposing claims of employer(s) and employee(s).’
aims to
resolve or avert
produce mutually acceptable solution
Walton & McKersie’s Behavioural Theory of Labour Negotiations
Aim is to develop a mutually acceptable outcome to both parties, via
Ascertain bargaining agenda
Integrative Bargaining process
Distributive Bargaining process
Intra-Organisational Bargaining
Attitudinal restructuring
strategies
distributive bargaining
Goals of one party are in conflict to another party
To maximise benefits is the goal of both parties
Resources are limited ie. money, wages, etc
Also known as Hard bargaining, win-lose bargaining
Focus on current negotiation acting as there is no future relationship… long term relationship is less important
Negotiation strategies are plans designed to achieve objectives during the negotiation process
integrative bargaining
The parties approach the process by identifying their individual or shared interests, rather than focusing on their positions or log of claims.
Some interests are shared, some are different, and some are conflicting. Successful, productive negotiations recognise and find ways to balance these interests.
By identifying individual or shared interests, the integrative bargaining process uncovers ways that each party's interests can be met without disadvantaging the other party.
This bargaining process is usually facilitated by an independent person
Options/solutions may be trialed before they are fully implemented.
Understanding the “architecture of your crisis/incident”
What is the architecture of your incident?
Plurality of interests
What form does this incident take? Bilateral / multiparty
Context analysis
Does someone have ‘expert’ power to decipher this issue?
Structural and relational analysis
understanding power of stakeholders
Process analysis
the importance of temporal understanding of the crisis & solution
The dual concerns model
compromising
middle ground in both concern about people's and own outcomes
yielding
high on concern of other people's outcomes
low on concern of own outcome
contending
low on concern of other people's outcomes
high on concern of own outcome
inaction
low in both concern of other people's outcomes and own outcomes
problem solving
high in both concern of other people's outcomes and own outcomes
Awareness of the reality of negotiating through conflict
Crises are never ending
Negotiating solution is ambiguous due to framing inconsistencies
Most negotiations have an inherent level of built in conflict. How can you understand the cognition of the parties involved?
Negotiations are chaotic- they are comprised of micro negotiations
Controlling the ‘architecture’ of the negotiation is difficult
The pressure of time will dictate strategy
Organisation constraints on the negotiator
Organisations suffering ‘negotiation’ fatigue
Evaluating your efforts
Is there a common goal?
Greater faith in your negotiation ability?
3.How valid were the perspectives of yourself and the other side?
Parties remain committed to working together
5.How much trust exists between the parties? Were you able to generate/create trust?
Clear and effective communication
Recruitment and Selection
The difference between recruitment and selection
Why is the selection process so important?
The right people will help your company operate and grow.
Opportunity to start developing a strong psychological contract → discretionary effort
The correct channels need to be used to tap into the candidate pool. EG Social media recruitment
Employment branding opportunity
War for talent / global skills shortage
Increased pressure to enhance performance
differences between recruitment and selection
recruiment
Activities that aim to provide a pool of qualified candidates from which the successful candidate can be chosen. Candidates can be sourced internally or externally.
selection
The process that analyses and compares the candidates
against the selection criteria.
Principal recruitment sources of candidates
internal
Internal promotions
Lateral transfer e.g. job rotation or secondment.
Internal advertising
advantages and disadvantages
advantages
less costs involved in attracting pool of applicants
avoids 'leak plugging' strategy
necessary only to hire at base level
a succession for promotion developed
good performance is rewarded
easier to assess applicant's ability
aid employee morale
disadvantages
cloning by those doing the selection
old culture maintained
criticism from those outside the organisation who cannot get in
effective appraisal program required
political infighting for promotion
discontent among those not promoted
danger of inbreeding
external
Advertisements
Educational institutions
Social networking sites
Recruitment agencies
Employee referrals
Online talent attraction
advantages and disadvantages
advantages
can provide for a more diverse workforce
can be effective in changeing corporate culture quickly
more compatible with concepts of EEO / affirmative action strategies
forces insiders to compete, keeps skills and education up to date
new ideas brought inot organisation
no claims of favouritism from inside leading to resentment
disadvantages
evaluation of past work history more difficult
can be a very expensive exercise, particularly where interstate or overseas recruits are invloved
a long orientation period necessay
more training and development required of new recruits
outsider may not fit into organisation's culture
morale of those passed over declines
creative recruitment techniques
google
recruitment video
· Apply to three different roles which you meet the minimum requirements of and what you are interested in
· Resume- Don’t require degrees for certain roles
· Looking for people who have experience and can introduce new ways and methods to improve the workplace culture and productivity within teams
· Placed an importance on fairness and equality
· Recruiter reaches out to the possible candidates and gains more information on the type of worker you are, this evolves into phone interviewers relating to the role itself
· Main interview at Google- meeting people and demonstrate your abilities and learning about the workplace.
· Four attributes to look for
o General Cognitive ability
o Role related knowledge
o Leadership
o ‘Googleness’ how they fit in the business environment
Hiring committee decided if the candidate is appropriate =, this gets sends to a senior leader for final decision.
british army
start thinking soldier
The various ways to assess candidates
The selection process
souces of information
case study: graduate program
Dept of Human Services graduate recruitment process
Stage 1 - Online application Stage 2 - Online personality profiling, abstract reasoning Stage 3 - Online verbal and numeric reasoning Stage 4 - Video interview Stage 5 - Assessment centre and reference checks Stage 6 - Verbal offer, pre-employment checks and letter of offer Stage 7 - Start working
Commonly used sources of information about job candidates are:
Resume
Interviews
Background investigations e.g. References, police checks.
Job based simulations
Medical examinations
Cognitive ability testing
strategic selection
Selection refers to the process that analyses and compares the candidates against the selection criteria. At best, selection decisions are a prediction. But there are steps you can take to increase the likelihood of success:
Identify the criteria that distinguish successful from unsuccessful job performance. These are the inherent requirements of the job. It could include technical skills, qualifications, behavioural traits etc.
Use multiple selection techniques to assess candidates against these requirements. The best techniques that are valid and reliable:
Validity is the degree to which the test measures what it claims to measure. Does it accurately predicts job performance?
Reliability refers to consistency – the consistency of scores obtained by the same person when retested with the identical tests or an equivalent form of test.
interviews
Behavioural based interview questions
Behavioural interview questions are based on the assumption that past performance is the best predictor of future performance
These questions are structured to gain insight into the candidate’s experience/ability in competencies (skills) that are required to be successful in the job. Therefore, they are sometimes known as competency-based questions.
They require candidates to describe a specific task or situation (rather than to talk hypothetically)
benefits include
Provide examples/evidence of what has been done in the past
Harder for candidates to exaggerate or ‘fake’ answers (or it’s easily detected)
Allows candidates to demonstrate ‘transferrable skills’
Factors that impact the effectiveness
of interviews
Perceptual flaws associated with the process:
Expectancy effect – expectations formed from candidate’s CV & application
First impressions
Candidate-order error
Stereotypes
‘Halo’ and ‘horns’ effect
interviewer skills
Effective structuring of interview
Framing questions e.g. avoiding multiple, leading or embarrassing questions
Listening ability
Eliciting sufficient responses
Note taking
Retention (recall) and interpretation of responses.
sample questions
Interviews are the most commonly used selection tool. Interviews can be face to face, online & over the phone.
Interviews serve the following purposes:
Mutual preview function - employer assesses skills, personality and motivations for the job…but the candidate also assesses the organisation
Negotiation function: enables other negotiations to occur e.g. start date, flexible work arrangements, terms and conditions of employment
Public relations exercise – creates good will for the organisation. Develops the organisation's employment brand.
Job Simulations
Criticisms
Time consuming: time to create the task, conduct the test and review results
Expensive: especially if an external organisation facilitates the process
Assesses ability, not motivational fit
advantages
Predictive validity: it is an actual representation of the job
Reliability: If a candidate scores well on a job simulation, they are likely to perform the job well.
Strong applicant insight into the job role: Job applicants are exposed to the tasks they will perform & can decide if they like it. Decrease turnover
Fairness: Both actual and perceived
Job simulations are employment tests that ask candidates to perform tasks that they would perform on the job. By using job simulations, employers can move past the interview into experiencing candidates in realistic scenarios Must be job specific & realistic.
examples include
Respond to emails/voicemails.
Summarise data using pivot tables in Excel
Resolve customer complaint
Conduct hearing assessment.
Personality tests
Criticisms
They lack validity. Research shows limited links between personality and job performance
Lack reliability & therefore capacity to predict future performance
Can be costly
Potential ethical/legal issues. Research has shown cultural bias
Advantages
Tests provide data which facilitates comparisons among applicants
They provide ‘objective’ evidence to justify decisions – decisions have appearance of being rational and scientific.
They provide insights and explanations for behaviour;
Tests counterbalance the interview process
A personality test is designed to seek out information about a person’s temperament, decision making methods, communication style and general attitude towards work and recreation. The personality profile is a summary of those traits
Reference checking
Reference checking is commonly used as a follow up to other selection strategies
To verify key information provided by applicant and/or gained through the selection process.
To probe for more information in areas of interest or inconclusive results
Identify potential areas of concern (e.g. performance levels in past roles)
key issues
Mediocre validity and reliability of references - i.e. highly subjective, flawed in various ways (tendency to give good references);
Compliance with privacy laws;
Defamation risk
Best practice involves using a combination of tools using different
criteria.
The tools you would use in the early stages of assessment are designed to screen out obviously unsuitable candidates, while later stages are designed to provide more detailed information about candidate strengths and areas for development, the degree of person and job fit, potential red flags and indications of high performers.
Research shows that even in organisations with best practice selection procedures, decisions may be made according to personal judgment, experience and gut feelings. At best, it’s a predictor of performance…not a guarantee.
Contemporary recruitment issues,
emerging use of e-recruitment
the advantages/disadvantages of filling vacant roles with gig workers.
advantages
Lower cost.
Ability to scale quickly.
Diverse pool of flexible workers.
disadvantages
Less reliable workers.
Tight regulations on contractor status.
social media and recruitment
employers may use what they see on social media to judge a candidate
Workplace Health and Safety
Theoretical perspectives of WHS
Ergonomics and Occupational Hygiene
Aim to eliminate risks and improve productivity by modifying the physical arrangements and conditions of the workplace
Criticised for having an overly narrow focus and causative approach
Medical model
An emphasis on diagnosis and treatment rather than the prevention of illnesses and disease
Medical or physical approaches often seem narrowly focused or unable to fully explain causes or to devise suitable preventative strategies
Occupational Epidemiology
Research ‘epidemics’, or the incidence of diseases and illnesses in workplaces, and attempt to establish their causes and solutions
Industrial Psychology
The study of employees’ psychological reactions to their workplaces
Focus on individual workers – Michael Quinlan (UNSW) argues this undervalues structural causes.
Industrial Sociology
The study of interpersonal communications and relationships in the workplace
Attributes many WHS issues to aspects such as lack of work control over their work, production imperatives, associated reward (and bonus) systems etc.
The role of Safework Australia and the WHS Act
WHS in australia
Principal elements of Australian system are:
Australia’s tripartite approach
government
employee
employer
Self-regulation, with active involvement of employers, unions and government.
Duty of employers to provide a ‘safe system of work’.
Workplace-based tripartite committees with responsibilities to provide training, inspections, consultation, information, issue provisional improvement notices, order that unsafe work ceases etc.
Australian system reflects a UK influence in terms of self-regulation rather than the US model (standards and penalties)
Recent amendments in NSW and ACT to introduce offences of industrial manslaughter against negligent employers and senior managers.
Safe work australia
SWA is an Australian government statutory body established in 2008 to develop national policy relating to WHS and workers’ compensation
Tripartite body (governments, employers and employees) to drive national policy development on WHS and workers’ compensation matters.
SWA works to:
i. develop and evaluate national policy and strategies
ii. develop and evaluate the model WHS legislative framework
iii. undertake research, and
iv. collect, analyse and report data.
SWA does not regulate. The Commonwealth, states and territories retain responsibility for regulating and enforcing WHS laws in their jurisdictions.
WHS act
Safe Work Australia developed a ‘model’ WHS Act to create nationally harmonised work health & safely laws.
purpose of the act
key terminology
Reasonably practicable
A guiding principle of the WHS Act is that all people are given the highest level of health and safety protection from hazards arising from work, so far as is reasonably practicable. The term ‘reasonably practicable’ means what could reasonably be done at a particular time to ensure health and safety measures are in place.
In determining what is reasonably practicable, consideration is given to the probability of a person being exposed to harm, the potential seriousness of injury or harm, what the person does/should know about minimising the risk.
role in prevention
Duty to consult
Requirement to establish WHS Committee
Election of workplace health and safety representatives
Obligation to train health and safety representatives
Powers and functions of safety reps
Right to cease work
WHS considerations for HR managers
Managing WHS programs
Wellness programs
You also need to focus on organisational strategies to reduce demands in the workplace…work-life balance?
Improve job design
Reduce workload
The aim of wellness or wellbeing programs is
Reduce employee’s risks of heart disease and cancer
Encourage employees to maintain their fitness and health
These programs include broad preventative programs concerned with overall employee lifestyle issues eg need for regular exercise, weight control, proper nutrition – through nutrition education, exercise schedules, meditation classes, volunteering programs.
WHS information systems
An effective WHS database system provides strategic and operational benefits. Comprehensive workplace data and accurate records facilitate
Disease and accident cost-management
Control of cost reimbursement from insurance companies
Comprehensive approach to rehabilitation as well as to prevention programs
Identification of risk areas
Interface with other HR processes
Top management commitment
Cohesive approach to promotion, communication, training and development activities
Adequate protective and medical/first aid facilities
Risk management, recording, analysis and development systems
Consultative and monitoring mechanisms
Integrated approaches
Contemporary issues: Workplace stress, bullying
occupational stress
What is stress?
No agreed definition of stress:
Symptoms – fatigue, exhaustion, indigestion, high blood pressure, insomnia, inability to relax, increased drug use, physical or emotional breakdown, ‘burnout’.
Increased pressure on employees – work intensification, information overload, org change etc
Prominent source of legal action. $480 million the total compensation paid for work related mental disorders per year
Occupational suicide
Managing occupational stress
Implement a preventative strategy – including a stress diagnostic system and regular evaluation
Stress management programs
Employee counselling
Specific prevention measures (eg stress reduction programs – incl. improving supervisory skills, reallocating workloads)
Training individual employees to manage stress symptoms effectively (eg relaxation, exercise, diet, talk, planning and time management, delegation etc.)
workplace bullying
What is workplace bullying?
‘The systematic persecution of a colleague, subordinate or superior which, if continued, may cause severe social, psychological and psychosomatic problems for the victim’. (Einarsen, D. 1999, in the International Journal of Manpower)
what forms does it take?
Persecuting or ganging up on an individual
Making unreasonable demands or setting impossible work targets
Making restrictive or petty work rules
Constant intrusive surveillance
Shouting or abusive language
Physical assault
Open or implied threats of demotion or dismissal
Online bullying
consequences
for the victims
Depression, anxiety, decreased commitment, job satisfaction
Psychological and physical ill-health
for the organisation
Reduced efficiency, productivity and profitability
Adverse publicity
An unsafe work environment
Increased absenteeism, sick leave and staff turnover
Costs associated with counselling, legal action and compensation
Codification of bullying?
WHS is part of every manager’s job and not just the responsibility of the HR manager or safety specialists. Because it is so important, HR managers must be at the forefront of promoting safety, health and employee wellbeing in the workplace.
Accidents at work
Need to be able to:
Assess extent and costs to industry and society (imprecise)
Identify cause and build in prevention
Develop an effective framework for prevention and management
Accident reduction involves:
Comprehensive safety policies
Specialist WHS function
Safety awareness, prevention and training programs
Medical, first aid and workers’ compensation systems
Fire drills, protective clothing and equipment
Safety incentive and prevention programs
Accident investigation and analysis
Implications of this legislation for HR:
Operational level
from presence on workplace committees to support and advice
Administrative level
can range from coordination of collection of statistics to secretarial support for committees
Strategic level
of current issues, legislation to new work processes
‘While the success of a WHS program depends largely on managers, supervisors, union representatives and employees themselves, HR professionals can be involved in strategic, operational, coordinating and administrative roles that support all their activities.’
Why is WHS important?
Healthy and safe work environment both desirable and cost-effective
WHS pervades all aspects of HRM
Costs of workplace accidents and disease major factor in strategic focus.
WHS and strategic HRM
Adopt strategic interventions; they drive business productivity and profitability
Focus on the common causes and trends of site accidents and injuries
Develop appropriate preventive work systems or more effective administrative and rehabilitation programs
The extent of the problem
By May 21st there have been 76 Australian workers killed at work in 2020.
3751 workers died at work between 2003 - 2018
Potential hazards include:
Physical factors
Chemical agents or other hazardous substances
Workplace organisation
Stress
Violence or physical harm from work colleagues.
Direct costs include workers' compensation payments, medical expenses, and costs for legal services. Examples of indirect costs include training replacement employees, accident investigation and implementation of corrective measures, lost productivity, repairs of damaged equipment and property, and costs associated with lower employee morale and absenteeism
Organisations have ethical, legal and business obligations to provide their employees with a safe and health working environment
HR Planning
Understand HR Planning & its crucial relationship with strategic organisational planning
What is HR planning?
Estimating the future supply of and demand for human capital, and then figuring how to close the gap
Translating organisational plans into people plans
Comprehensive staffing plans will:
Incorporate all HR activities (recruitment, learning & development,remuneration and even separation)
Have a long term, strategic approach
The questions HRP asks
What are the strategic drivers impacting on the business over the next 5-10 years?
What work needs to be done to achieve these outcomes?
What organisational structure would best meet this need?
What are the high level capabilities required to successfully do the work?
What are the capabilities of the current workforce?
How can these capabilities be acquired and/or developed?
The impact of failed HR planning
labour shortage
employee
increased labour turnover
role overload
reduced job performance
decreased morale
burnout
increased pressure
longer hours
employer / organisation
employee relations problems
lost business opportunities
reduced productivity
production delays
inadequate supply of talent
increased overtime costs
labour surplus
employee
restricted career opportunities
loss of motivation
talents not fully ultilised
reduced job performance
decreased morale
job insecurity
rust out
employer
danger of losing top talent
employee relations problems
retrenchment and downsizing costs
loss of competitiveness
low productivity
employees underutilised
excessive payroll costs
case study: Blackberry bails on making its own phones
The Canadian company said Wednesday it will shut down its phone business after the failure of its latest bid to use Google's Android software to stimulate interest. Instead, BlackBerry will rely on others to design, build and sell the devices so it can save on capital.
The measure of effectiveness of HR planning is whether the right people are available in the organisation at the right place and the right time.
HR planning affects all HR activities and is the strategic link between organisational and HRM objectives
Apply the techniques of HRP
Best practice HRP
The systemiatic processes
labour demand forecasting
techniques
The Delphi technique
Specialists are consulted, using a structured and weighted questionnaire. These experts are deliberately kept apart.
All responses are collated and returned to the individual experts for further comment.
This process continues until consensus is achieved.
The forecasting problem is identified. Relevant data is collected.
Trend analysis – based on historical and current personnel data in the organisation – establishes trends in retirements, resignations, dismissals etc.
what is it?
Forecasting involves statistical (quantitative) and/or judgmental methods based on qualitative analysis.
Demand forecasts are developed around specific job categories and skill areas relevant to the organisation’s current and future state.
Once the job categories or skills are identified, information will be sought to help predict whether the need for people with those skills or people in that job category will increase or decrease in the future.
Methods used include:
Managerial judgments – to obtain informed estimates
Time series analysis – eg projecting how many teachers will be needed in 2020; seasonal work flows in hospitality industry.
Work studies – eg where new tasks/processes to be introduced.
Scenario planning and simulations
Correlating business data - sales predictions, projected turnover
Using the future budget as the starting point – working back from costs – to meet goals, how many people at what cost are required/ affordable?
Forecasting is the method used to determine the demand for human resources to help predict areas within the organisation where there will be future labour shortages or surpluses.
considerations
labour supply analysis
external
External Labour Supply Forecasting
Statistics (more/less relevant for national and international labour markets) include
7 more items...
Most labour markets are local: employers are interested in trends within ‘travel to work area’.
internal
Succession Plan
case study: Appointing a CEO at GE
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Internal Labour Supply Forecasting
Methods for forecasting internal supply include:
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Supply forecasts are used to predict worker flows and availabilities. Consider:
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The Markov model
or the transition probablitiy matrix
balancing supply and demand
reductions (surplus)
Managing a labour surplus
options to reduce labour surplus include
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recruitment )shortage)
Avoiding a labour shortage
Internal labour market strategies:
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external labour market strategies:
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what is it?
Based on the labour supply and demand forecasts determine if there will be a shortage or surplus of labour for each job.
Determining expected shortages and surpluses allows the organisation to plan how to address these challenges.
Usually a balance needs to be reached between recruiting for immediate needs and recruiting for internal training, development or promotion.
A long term view / goal setting process is required
SWOT analysis
PEST analysis
Quantitative - indexation
Suitable for small organisations within a relatively stable environment
Managerial judgement
Supervisors and managers assess their own labour requirements.
Each section, division and branch of an organisation develops its own labour targets, which are then consolidated into an overall HR plan.
Many small/medium sized businesses rely on a qualitative / bottom-up approach.
Understand the advantages and disadvantages of HRP
benefits
Strategic rather than reactionary decision making process
Anticipates resourcing requirements
Stronger alignment between org objectives and people practices
Enables the org to adjust to technological change
Increased productivity and profitability
Cost effective (eg controlling of labour surpluses)
disadvantages
Time consuming…therefore costly
Question over how essential it is to org effectiveness
Resistance / hostility to use statistical techniques
Tendency to focus on short-term priorities
Ignorance of existing HR planning techniques
Complexity and turbulence of business environment
Discuss HR information management systems
Legal Issues with the HRIMS
Confidentiality - who has access?
Protection of data
Ethical issues
Data ownership & collection challenges?
legal response with the Australian Privacy Principles
HRIMS are enabling increasing accuracy and sophistication in HR forecasting and analysis
What is HRIMS?
Early HRIMS were manual
More flexible, comprehensive information systems have developed as combined result of:
Technological change
Increased government reporting requirements
HRIMS increasingly used as strategic tool for HR planning and SHRM generally.
Facilitates more cost-efficient management of low value-added HR and payment activities.
Job analysis / competency profiling / job descriptions
The Importance of Job Analysis
Job Analysis Information
Job identification – title, dept, level
Tasks, duties and responsibilities to be performed
Relationships – superordinates, subordinates etc
Outputs/end results of job
Performance standards/objectives
Knowledge, skills and abilities
Competencies (technical and behavioural)
Working conditions – workspace and employment conditions
Other information – transfer opps, training available etc.
Job analysis is:
The process of gathering detailed information about jobs and Establishing the essential criteria for job performance and translating these into the qualities required.
and the critical building block of
The recruitment process
Learning & development
Performance management
Remuneration / benefits
Strategic model for job requirements
Competencies
A competency refers to ‘an area of personal capability that enables employees to successfully perform their jobs by achieving outcomes or accomplishing tasks’.
Competencies usually fall into two categories
Behavioural/attitudinal
Technical
Job / Position descriptions
After the job analysis and competencies have been selected, the Job or Position Description is then drafted.
A Position Description (PD) is a document which reflects the purpose, accountabilities, and duties of a job.
Today often it contains
Title
Org. chart
Position purpose
Key outcomes
KPIs
Technical & behavioural competencies
Traditionally contained
Title
Accountability statement
Roles and goals
Authority
Job evaluation and design continues to be of paramount importance in an era of new and evolving workplaces.
Job/position descriptions and person specifications are important tools of HRM. However, the changing nature of work has made it difficult for these documents to remain accurate and workable.
Explain the challenges of the changing nature of jobs and the emerging trends in job design
Human Resources Management
What are the key issues?
What quantity and quality of employees will be required now and in the future to satisfy or exceed organisational objectives?
Which strategies will be most effective in attracting, choosing and efficiently incorporating employees into the organisation?
How can well chosen employees be kept productive, satisfied and motivated to contribute to organisational growth and effectiveness?
What strategies are required to ensure that all HR activities are linked and accountable?
What is HRM?
Specifically it involves the effective and productive use of people in order to achieve an organisation’s strategic business objective and goals
Creation of a competitive advantage through labour
The focus of HRM is on managing people within the employer-employee relationship.
Evolution of HRM
The timeline
Stage 2
Welfare, administration, staffing and training 1940s to mid 1970s
Stage 3
HRM and SHRM mid 1970s – late 1990s
Stage 1
Welfare and Administration 1900-1940s
Stage 4
SHRM into the future 2000 +
Deloitte's captial trends of 2018
The workforce ecosystem
Structured careers are evaporating
Looming impact of global aging
Work in the era of ‘100 year lives’
New rewards: personalised and agile.
Wellbeing: strategy & responsibility
Shift in focus from business enterprises to social enterprises
What does HR do?
Recruitment
Workplace health and safety
Performance management
Employee advocate
Remuneration and Benefits
Negotiate
Navigate employment law
Business / strategic partner
Learning and Development
Conceptual frameworks
Hard or soft HRM
hard HRM
strategic, managerial issues
effective utilisation of HR towards broad goals and objectives.
The rational, quantitative and strategic aspects of managing human resources.
soft HRM
involvement of employees through consultation, empowerment, commitment and communication.
Strategic HRM
new linkages between HRM and strategic planning
these have emerged as a critical element in many models of SHRM one way linkages focus on the role of HRM activities in assisting strategy implementation, while a two way linkage describes a more proactive approach where HRM exerts influence ons trategy formulation as well
Proposed linkages between HRM and organisational practice
most models of SHRM include the proposition that HRM plays a key role in the achievement of strategic goals. since the expected outcome of company strategies is an improvement in the firm's economic value, HRM must thus directly contribute to the firm's bottom line in order to be judged effectively
a longer term focus
an inclusion of multiple year strategic plans for HR use is often considered the first step in the evolution of a strategically oriented HRM function
Inclusion of line managers in the HRM policy making process
the recognition of HRM's strategic importance may make it more of a line management responsibility, particularly in areas involving the selection and compensation of managers. a ceo of a large tracking company echoed the sentiment to us when he told us that HRM is too important to be left to the HRM department
Harvard model of HRM
The Harvard framework for HRM is an HR model comprised of six components.
The model starts, on the left, with stakeholder interest. These stakeholders include shareholders, management, employee groups, government, and more. These interests define the HRM policies.
At the same time, situational factors influence these interests. Situational factors and stakeholder interest influence HRM policies. These include the core HR activities, like recruitment, training, and reward systems.
When done well, HRM policies lead to positive HRM outcomes. These include the previously mentioned retention, cost-effectiveness, commitment, and competence.
These positive HRM outcomes lead to long-term consequences. These can be individual, organizational, and societal.
Overlapping contracts
The employment contract comprises a set of overlapping contracts:
The formal contract – this includes the employment contract, basic tasks/responsibilities (as outlined in the job description).
Psychological contract – this addresses aspects of the employment relationship which are mainly implicit. It incorporates mutual expectation and reciprocity. It underpins an employee’s commitment. There is an increasing emphasis on the psychological contract between organisations and their employees. Employee engagement is linked to a strong, positive psychological contract.
Sustainable HRM
CSR
… “encompass the economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time” (Carroll, 1979: 500).
Sustainability
Approach that considers ecological, social and economic dimensions. About meeting the needs of the present without compromising future generations.
Business ethics
“the study of business situations, activities and decisions where the issues of right and wrong are addressed” (Crane and Matten, 2007:52).
Triple bottom line
organization survival vs triple bottom line
Milton friedman: "...there is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays in the rules of the game, which is to say, engages in open and free competition, without deception or fraud."
the way in which “companies and other organizations create value in multiple dimensions … economic, social and environmental value added or destroyed” (Elkington, 2006: 523).
Business Ethics, Sustainability & HRM
The social impact of businesses
Emergence of standardisation
Businesses should uphold
The elimination of discrimination in employment and occupation
The effective abolition of child labour
The abolition of all forms of forced labour and compulsory labour
The freedom of association and its effective recognition, and the right to collective bargaining
reporting standards
Guidance to standardize disclosure on non-financial information related to social and environmental issues.(GRI)
integrating guidance based standards
To provide guidance about what is and how to implement CSR into an organisation (ISO26000)
Principle based standards
To promote principles related to social and environmental matters. (UN social contract)
Social sustainability is reflected in product responsibility, including product performance, safety, and standards.
Social sustainability refers to the ability of a community to develop processes and structures which not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community
“The rising generation, which of course is the generation which will produce the next set of business leaders, is much more conscious of the social impact of business and much more concerned about it” Lynn Stout Cornell University Law School
Focus on HR practices that address sustainability issues
Leadership development with a strong emphasis on creating a culture of sustainable development
Education and training for employees regarding sustainability
Workforce engagement practices to promote participation in sustainable initiatives
Sustainable HRM
It shifts the focus from societal and corporate sustainable development to the level of the individual employee and the HR systems
Acknowledges that HR practices will influence the extent to which people are attracted to work for an organisation.
Considers the relationship between HRM practices and outcomes beyond financial outcomes.
Acknowledges the detrimental impact of work intensification, temporary employment, excessive performance standards & low pay.
Some research has demonstrated that positive social/human and environmental practices flow positively to financial performance
