10.

4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

(1) Role of human reosurce management

o Strategic role of human resources
 Responsible for relationship between a business and employees
 Designed to help business meet needs of their employees and promote company goals
 Look at employees as assets developed through training, development not costs
 Create an environment which fosters a loyal, dedicated and motivated workforce
 Leads to high levels of productivity and improved business performance
 Helps to achieve broader strategic goals of business performance
oHighly qualified workforce
oEffectively deal with workplace grievances
oAligning corporate and individual goals
oProviding right training and development
oProviding effective communication systems
oCreate constructive workplace culture - change and innovation encouraged
oWork place itself becoming a competitive advantage

o Interdependence with other key business functions

 Integrated through all business activities
 Medium size business HR function performed by other functional managers
 Larger organisation have specialist HR department
oHiring right people eg. Transforming inputs in operations
oImplementing 4Ps in marketing eg. Sales team
oGathering, interpreting and acting on financial flows eg accounts team
oAppropriate training and development is available
oHelp resolve disputes

Apple HR need to communicate with KBF to gather info about job design, acquisition, training new employees.
Operations communicate requirement to HR, enabling them to recruit and select suitable candidates –
prevent issues with quality management and defects. Marketing communicate with HR to ensure retail
employees adequately trained in marketing strategies. Finance impose limitation on HR activities by
allocating budget, cost centres, expense minimisation.

o Outsourcing
 Involves contracting of companies outside of business to perform certain business activities
 Benefits
oAbility to access staff whose specifically is HRM
oManagers focus on core business activities
oGenerate cost savings
oObtain specialist support and improve productivity
 Concerns
oHR lack understanding of key aspects of business
oManagement within business still take some responsibility for staff
oRedundancies

Apple outsource not just for cheap labour but move manufacturing to Asia as a result of foreign companies
tremendous ability to scale and their dominance of supply chain. Apple initially estimated it would take up
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

to 9 month for US to find 8700 workers, factories in china generated workforce in 15 days. Supply chain
now being china – everything needed is next door or a block away
 Human resources functions
 Some or all human resource functions can be outsourced
 Recommended business should only consider outsourcing process orientated tasks

 Using contractors – domestic, global

 The employment contract in the Australian workforce is between an employer and
employee
 Working conditions are controlled by state and federal laws
 Law regards an employee of a person who is subject to a contract service
 Independent contractors - employment is not ongoing, agreed feed for service provided

Global contractors
 Globalisation has created easy access to use foreign labour resources
 No minimum wage requirements, less or no WHS laws or regulation on termination
 Can be risky not being able to check up on work, language barriers
 More difficult to enforce contractors

(2) Key Influences of human reosurce management

o Stakeholders
 Individual or group that has an interest in or is affected by actions of a business
 Common interest in survival of business – interests are shared but conflicts can arise

oEmployees provides skills to business in return for a regular source of income, responsibility
to complete tasks in a manner that is lawful, included in decision-making process to
provide increased sense of responsibility lead to higher productivity

oEmployers individual or organisation that pay others to work for their business. Rely on HR
to perform business activities. They need to find right balance between providing a
productive and harmonious work environment

oEmployer associations they represent interests of a group of employers, usually industry

based, with the aim to gain more favourable outcomes for its member’s by lobbying govt
and to assist their member in disputes

oUnions represent interest of workers aiming to gain more favourable outcomes for its
members by lobbying govt and assist in disputes. Their influence and power reduced
over, but retained important role within current industrial/legal framework.
Apple Retail Workers Union (ARWU) represent interest to Apple Retail employees “movement to
empower workers to discuss working conditions and demand improvements to compensation”

oGovt organisations influential for two reasons – major employer (25% of workforce) and
determined and enforce legal frame work for industry relations eg Fair Work Australia
Govt in China paid subsidies of 200 RMB to encourage new employed to work at Foxconn in meeting its
production targets and continue to be leading outsourcing partner for companies

oSociety made up of individuals that are directly and indirectly affected by HR outcomes. Also
influence HR outcomes because they’re consumers and they set expectations
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

o Legal – the current legal framework

 Employment relationship subject to number of regulation and laws
 Govt established legal framework employers and employees encouraged to coexist
 Fair Work Australia centre piece of legal framework under  Fair work act 2009 (Cth)
 Challenge to be aware of all employment related laws and ensure compliance

Variation of employment laws of different countries has an influence on HR decisions for Apple ie outsourcing
partners in China means employment costs are reduced however Foxconn have been reported to be
preaching Chinese Labour Laws such as employing children under legal minimum wage. US based human
rights movement in China, China Labour Watch reported September 2013 “among infringement
uncovered by CLW include million in unpaid overtime wages, 3 times in excess legal limits, more than 11
hours standing work every day with no rest outside of 30 minute meal breaks.

 Employment control - Employment contract

 Agreement signed by both employer and employee setting out terms and conditions
 Based on employee offering service and being subject to lawful control of employee
 Key features: hours, location, salary/wages, duties, leave, benefits, bonus, superannuation
 Outlines promotion and discipline and procedures
 Individual contracts or common law contracts – don’t have to be
approved by FWA
-       Higher levels of flexibility
-       Must incorporate minimum employment standards
 Collective employment contracts – award or enterprise agreement
-       Required to be approved by FWA
-       Have the same minimum standard requirements as individual
contracts
 These are enforceable by laws such as those governing:
-       A safe workplace
-       Minimum wage entitlements
-       Anti discrimination and equal employment opportunity

 Common law (rights and obligations of employers and employees)

 Common law is developed by courts and tribunals
 Under this law employees have basic obligations in any employment relationship
 Duties of employers:
- Duty of care
- Duty to pay the agreed wage
- Duty to provide work
 Duties of employees:
- Duty to obey lawful instructions and command
- Duty to work with skill
- Duty to disclose relevant information

 Minimum employment standards

 Must be incorporated into all employment contracts
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

 FWA codified National Employment Standards (NES) which are 10 minimum standards
 Planned to provide greater safety net for employees
 Eg min wage rates, annual and long services leave, redundancy pay, flexible working
conditions
 Fines and potentially negative publicity will apply if standards not met
 Minimum wage rates
 Minimum rate of pay for hours worked received in national relations system
 Apply various industries and across various ages
 Reviewed regularly by Minimum Wage Panel of FWA
 FCW is responsible for ensuring employers and employees cannot agree to a lower rate of
pay
 Federal minimum wage currently $16.87 per hour or $640.90 per 38 hour week (before tax)

 Awards
 Set out minimum wages and working conditions must be granted to employees
 Conditions must at least include NES and be approved by FWA

 Enterprise agreements
 Apply across a single company or group of companies
 Produced as a result of collective bargaining between employee and employer
 Under the Fair Work Act 2009, there are three types of enterprise agreements:
oSingle-enterprise agreements between a single employer and group of employees, involve
more than one employer in limited cases
oMulti-enterprise agreements between 2 or more employers and groups of their employees
(share common funding, operate collaboratively, common regulatory system)
oGreenfields agreements single /multi-enterprise agreements relating to new enterprise of
employer(s) made before any employees covered by agreement are employed
 FWA will not approve them if employee is worse off than would they would be on an award
 BOOT Test – Better Off Overall Test
 Offer more flexibility because they can be tailored to individuals for individual companies

 Other employment contracts

 Individual contracts which aren’t collectively agreed by awards or enterprise agreements
 Independent contracts consultants or freelancers, undertake work for others
 Part-time working a fixed set of hours per week, entitled to all the benefits of full-time staff
 Permanent provided with continuing employment within the organization, 35-40 h per week
 Casual employed for short periods of time, shifts subject to demand of employer
 Fixed term use of labour for specific period, both parties in agreement to time period

 Workplace Health and Safety and Workers Compensation

 Enforced by WorkCover NSW
 Work, Health & Safety Act 2011 (NSW)
 WH&S legislation designed to protect physical and emotional wellbeing of employees
 Employers provide safe premises, safe equipment, safe systems and procedures
 Fines and criminal prosecutions can follow breaches
 Workers Compensation Act 1987 (NSW)
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

 WC compulsory insurance payable by employers to insure against having injury at work

 Premiums payable increase cost of employment
 Employer must notify insurer within 48 hours of injury and pay insurance
 Worker must notify employer of injury asap, not make false claims and return to work asap

 Antidiscrimination and equal employment opportunity

 Antidiscrimination laws make it illegal to discriminate against employee on gender, age,
religion
 Equal employment opportunity where all people have equal access to jobs and benefits
 EEO might apply if one person is denied an opportunity for a promotion
 Must implement an ‘Affirmative Action Program to promote equal opportunity for women
 Key pieces of employment legislation include:
- Anti-Discrimination Act 1977 (NSW)
- Racial discrimination Act 1975 (Cth)
- Sex Discrimination Act 1984 (Cth)
- Human Rights & Equal Opportunity Commission Act 1986 (Cth)

 
o Economic
 Reflects changes in demand for goods and services over time that impact economic activity
 As consumption increases, production, employment, investment does
 Strong growth – strong demand for high quality staff, training programs for skill shortages
 Downturn – employment falls, downsizing, or flexible form of employments, temporary
forms of employment which reduce, rights and security of employees

o Technological
 Technology is an important source of change to the way a business:
- produces/provides goods and/or services
- communicates within the business and to customers
- competes in the market place
 Seeks to improve quality of products and the efficiency which they have been produced
 Positive impacts on HR:
- Allows business to develop more efficient production techniques
- Employees can be upskilled in new technologies
- Encourage innovation
- Fosters teamwork through the process of learning the new technologies
 Negative impacts on HR:
- Loss of employment
- Employee resistance to change
- Reduced employee morale
- Lower levels of employee empowerment and decision-making

Employment opportunities can be advertised globally using company website and other internet sources,
broadening potential pool of applicants as geographical boundaries become less relevant. Success of
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

Apple founded in tremendous market growth for technological products, creating significant employment
opportunities, majority being marketing, repair and distribution

o Social-changing work patterns, living standards

 Over past 20 years declining number of employees working standard 35-40 h per week
 Increased use of casual workers – more flexible but less motivated
 More informal HR, less job security, lower levels of unionisation
 More mobile workforce – greater range of skills but more difficult to maintain workers
 Rapid growth of contracting or outsourcing to reduce costs
 Increasing ageing of population
 Increase cultural diversity
 Increasing credentialism ie level of education/training required in workforce
 Increasing female employment – more work available but maternity leave issues
oGreater focus on women issues due to rising participation rates
oAgeing population resulting in skill shortages
ohealth burdens encouraging postponement of retirement
ofocus on greater flexibility in working arrangements, family friendly programs
oAnti-discrimination, training and retraining of women
oWell educated workforce demands more challenging work, greater responsibility
oGreater awareness of WH&S, stress, balance between work and leisure
 Living standards
oAustralia has one of highest living standards in world
oIncluding WHS, wage increases, fringe benefits, superannuation, leave entitlements
oRaise workers expectations and attract workers
oHence business outsource work to countries with lower living standards
oPeople loose jobs because to expensive

Relatively low cost of HR in china significant benefit of producing iPhone, having worlds largest population also
makes china highly flexible location for operations with additional employees be recruit without delay to
changes in demand or launch of a new product

o Ethics and corporate social responsibility

 Ethics are standards that society expect business to maintain
 Ethical practices that are socially responsible, morally right, honourable and fair
 Benefit to business adopting ethical practices
oStaff relation and absenteeism rates improve
oStaff feel more values and motivated
oRequirements and training decrease and performance is enhanced
oGood reputation
 Degree of responsibility for economic consequences of activities, social, enviro obligations
 CSR recognises being a good corporate citizen in making lasting contributions to community
 Investing in community projects, supporting research initiatives, OHS measures
 Triple bottom line approach – considers economic, social and environmental aspects
 Strategies to promote CSR
oPromoting effective affirmative action and ant-discrimination programs
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

oDeveloping initiatives that reduce the business impact on environment

oEngaging in strategies that promote work-lie bland and enhance workplace flexibility
oEncouraging staff to volunteer their time to participate in community building activities

McDonalds motto of ‘giving back’ form an integral part

of everything they do. Ronald McDonald House
Charities is an example of how this business provides
seriously ill children with facilities and support that help
them to improve live a brighter and healthier life

(3) Processes of human reosurce management

 Service, skills, talents & expertise workforce
provides business with a competitive advantage
 Role of employment relations is to provide business with workforce that it requires
 Support function aims to find, attract, develop & motivate people who provide services
 Human element of business must be maintained & sufficiently motivated
 Employment Relations (ER) deals with relationships between employer & employees
 HR management focuses on acquiring, developing, maintaining & managing staff
productively
 Employees who feel committed are empowered to respond quickly & positively to change

o Acquisition
 Involves analysing
oInternal Environment business goals & culture
oExternal Environment economic conditions, comp, tech, legal, political & social factors
 Involves attracting, locating & selecting a person w right skills who will add value to business:
oIdentifying the HR needs
oJob analysis of responsibilities
oRecruiting & selecting staff
oOrientation – integrating employees
 Job analysis & Job design are required to meet the needs of new positions
 Through staff interviews, observations, reports from performance appraisals & evaluation
 Job specification descriptions developed and prepared for applications – external/internal
 Recruitment locating/attracting right quantity/quality of staff to apply for vacancies at right
cost
 Employee Selection gathering info about each applicant to choose appropriate applicant
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

 Placement locating employee in a position that best utilises skills to meet business needs

o Development
 Process of developing and improving skills, abilities and knowledge of staff
 Through induction, ongoing training and further professional development
 Effective development programs ensure that experienced and talented staff are retrained
 Involves enhancing skills of employee to develop a career within the business
 Eg training, mentoring, coaching and performance management so
 Major role - establish effective T&D programs, train managers to implement T&D programs
 Evaluate training programs to determine whether performance has improved as a result
Induction
 Equips a new employee with the skills to carry out their job
 Work effectively with co-workers within the business & its culture
oGood reputation
oGives employees a positive attitude to job & business
oBuilds a new employee’s confidence in the job
oStresses major safety policies & procedures & how they operate in the business
oHelps establish good working relationships with co-workers & supervisors
 Necessary for all new employees because there’s a greater chance employees will leave
 Support in form of induction will reduce likelihood of this occurring

Provide induction – range from a few days to few weeks depending on position. Strong focus on customer
service and provides training retail to ensure attuned to apples philosophy and etiquette

Training
Seek long-term change in employees skills, knowledge, attitudes, behaviour - improve work. Ongoing
training should be part of every workplace. Change including new tech and global competition
increase need for training. Benefits:
oenhance an employees motivation and commitment
ostaff retention
ogreater staff satisfaction
ohigher levels of performance

Apple promote training as a benefit of working for company. Every location provides regular training, counts as
work time, keep up to date on latest products, move ahead as a Genius, creative or manager.

Planning
Training can take a number of forms: formal training (off the job –university tertiary institution),
informal training (on the job training), consultancy (professional coming and talking to employees
in the workplace, experience qualified professionals BUT costly, time away from job)

Organizational development
 Businesses are using flatter structures to improve efficiency and competitiveness
 Creates more opportunities for employees to innovate and participate in solving problems
 Teams and project based structures now being widely
 Strategies used to help motivate and retain talented staff:
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

ojob enlargement (increasing breadth of task)

ojob rotation (multiskilling)
ojob enrichment (increasing responsibilities)
ojob sharing (two people share a job)
omentoring and coaching – more experienced member of staff provides advice

Performance appraisal (PA)

 Used to evaluate employee performance, against a set of criteria or standard
 Identity areas for mentoring, coaching, leadership development or performance
management enable the employee to contribute most effectively to a business’s success.
 May assist in development through feedback given to employees work performance
 Types of performance appraisal: interview, Behaviour observation, Performance ranking

o Maintenance
 Concerned with building a long-term relationship with the employee and focuses on the
processes needed to retain staff and manage their wellbeing at work

Communication and workplace culture:

 Effective workplace relations depend heavily on strength of a business’s communications
 Poor communication often reflected in workplace conflict and high turnover rates
 Strategies to improve communication and workplace culture involve
oChanging layout of offices to increase communication
oBeing interactive and walking around
oImplementing various team building activities

Employee participation:
 Encouraged to improve communication and empower employees
 Develops their commitment to improving quality and efficiency
 Regular team meeting/briefings to discuss customer feedback, company trends and issues
helps to build a sense of shared purpose and company identity

Benefits:
 Benefits may be monetary (money) in value or non-monetary
oTravel allowances, health insurance, subsidised gym memberships
oFlexible working arrangements
oPaid training opportunities
oHousing and company car

Flexible and family work arrangements

 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

Legal compliance and corporate social responsibility:

 Anti-discrimination
 Equal Employment Opportunities
 Work, Health and Safety
 Taxation
 Social justice legislation
 Bullying and sexual harassment

Apple adopted a new strategy called “blue sky” allow small group of staff to spend few weeks on pet
engineering project. Moving to address long-standing employee gripes, flexibility on what they work on

o Separation
 Ending of an employment relationship and can be either voluntary or involuntary
 Voluntary form of resignation, relocation, voluntary redundancy or retirement
 Involuntary separation may take the form of contract expiry, retrenchment or dismissal
 Managed carefully to avoid claims of discrimination, adverse effect on morale, productivity
 Redundancy/retrenchment losing job where employees’ work or job is no longer needed
 Necessary due to lack of work, fall in demand for g/s or position restructured or sub w
capital
 Determine who will be retrenched – length of service, performance, future potential

Dismissal
 Terminates employee’s employment contract due to unacceptable conduct/behaviour
 HR managers aware of legislation and industrial agreements, provide written statements
 Consult with staff prior, support with outplacement, pay out their notice

Unfair Dismissal
 Dismissed by their employer and they believe action is harsh, unreasonable or unjust
 Fair Work Commission provide grounds for claims for employees of unfair dismissal
 Business respond to risk of unfair dismissal by hiring casuals or contractors, tighten contracts
 Create adverse publicity – potentially lose customers

Example of redundancy and retrenchment of apple employees in 2014, Apple acquired Beats making 200 Beats
employees in overlapping positions. Included employee in HR, finance, administration

(4) Strategies in human resources management

o Leadership style
 Vary between individuals also dependent in nature of work, type of employee ect
 Classical approach planning, organizing and controlling
 Behavioral approach leading, communicating and motivating
 Contingency approach using most appropriate approach depending situation

Authoritarian
 Hierarchal structure
 Classical scientific approach
 Managers lead – no consulting
 Employees cannot contribute to the decision-making process
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

 Suits were constant directions and guidance is required

Participative/Democratic
 Encourage collaboration
 Involves employees in the decision-making process
 Encourages employees to become empowered
 Take ownership of tasks and set own goals
 Behavioral approach
 Suit team and flatter structures

Apple outsourcing partner FOXCONN crities for autocratic leadership style where as Apple itself Steve jobs,
“high-maintaenance co-worker”, bring staff, investors, customers together.

Delegative/Laissez-faire
 Minimal intervention by manager
 Employers trust employees to make the right decisions
 Suit experienced professional and skilled teams

o Job design – general or specific

 Process of developing the content of the job and how it will interact with other jobs
 To motivate and retain employees and to achieve the business objectives
 General variety of tasks needed to be undertaken by employee
 Specific employee skills to be matched to job requirements
 Several methods used to design for better jobs:
oJob enrichment- employees are provided with challenging tasks, responsibility, autonomy
and decision-making power.
oJob rotation- employees move around to perform a number of varied tasks during a day or
week-reduces boredom
oJob enlargement- employees are given additional tasks to increase the variety and challenge
involved in a position.
oSemi-autonomous work groups-increases skills and team work
oCross functional, team based matrix structures
oFlexible work structures

Apple more interested in personality than technical knowledge of candidate applying for position. Contrast to
outsourcing partners have minimal requirements of factory employees due to high turnover and constant
need to recruit.

o Recruitment – internal or external, general or specific

 Process of locating and attracting right quantity and quality of staff
 Apply for employment vacancies or anticipated vacancies at the right cost
 Can be recruited for general or specific skills – depends what business looking for
 Internal filling job vacancies with people from within business
oIncentive for staff to improve their performance
oPromotions seen as a reward for hard work, cheaper than external
oBUT Staff may be overlooked, lose motivation reinforce negative culture, no new skills
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

 External filling job vacancies with people from outside the business
oWider applicant pool - get specific skills needed
oBusiness is encouraging new ideas
oMore diversity in employment
oBUT risk of unknown staff, may take time to settle in, takes a lot of effort and time

 General skills attitudes and behaviors that are a good cultural fit for the business, job
customised to suit individual, flexibility, social confidence, positive attitude, motivation, ability
to work as a team, etc.
 Specific skills specialized training - recruiting overseas or outsourcing, employee poaching
(the practice of enticing employees to work for another business) is commonly used
 Business should consider if work load can be spread amongst staff rather than replacing staff
 Allow upskilling of staff and save cost of recruitment and complex process
 Employee Poaching is enticing employees to work for another business

Apple look for candidate that are affable and self-directed rather than tech-savvy. Applicants submit
resume through site and culled before and during seminar eg if your late. Apple outsourcing partners use
newspapers advertisements, signs, posters
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

o Training and development – current or future skills

 Aim of T&D is a long-term change to develop skills, knowledge, attitudes, behaviors
 Help lead to superior work performance
 Two main focuses – current skills needed and future skills needed for growth
 Decisions needed to be considered
oJob sharing across companies
oInvest in-house training and development
oOutsource functions to specialist firms

Current or Future Skills:

 Provide its employees with an avenue to develop and enhance their knowledge, skills
 Understanding of various activities related to the operations of a business
 Development focused on enhancing skills of employee in line with changing and future
needs
 Consider mix of skills they can develop internally and those for which they need to recruit

Approach customers with personalized warm welcome, Probe politely to understand all customers needs,
Present solution, Listen for and resolve issues, End with a fond farewell ad invitation to return

o Performance management – developmental and administrative

 Systematic process of evaluating and managing employee performance
 In order to achieve best outcomes and objective for a business:
oEvaluate an individual’s performance and provide feedback
oUse that information to develop the individual
oShared vision of long-term direction
oProvide opportunities induction, T&D to become competent
oRecognise and reward employees

 Benefits
oEmployer is able to identify and problems
oAssist with HR planning to overcome
oAllows the employee to be aware of their personal goals
oEmployee improved understanding of their role and what needs to be done

Developmental
 Using data to develop individual skills and abilities of employees
 Improve effectiveness in their role, overcome weaknesses and better prepared for
promotion
 Year round periodic feedback and shared discussion that is both emphatic and goal focused
Administrative
 Annual appraisal used by management for planning in human resource functions
 Eg training, development, rewards, pay levels, benefits and performance improvements
 Focus on collecting data to manage human resource management function more efficiently
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

o Rewards management – monetary and non-monetary, individual or group, performance

pay
 Motivate employees to work to their potential and cooperate with each other
 Different to benefits – increasing linked to performance management ie enterprise
bargaining
 Considerations in designing rewards & benefits systems;
o Performance related; incentive plans for performance above standards or criteria,
bonuses, piece rates, commission, production related incentives
o Job Related; role and level of responsibility, scope of supervision, base pay,
interpersonal skills, knowledge and skills, experience, value to the company
o Other Individual considerations; group incentives, the employees value, specific job
considerations & individual bargaining power
 Key issues when designing reward systems:
o Business strategy
o Economic conditions (supply & demand for labor & skills shortages)
o Organisational objectives of rewards
o Rewards & benefits for competitors
o Relevant awards and agreements, minimum employment standards
o Union power
o Profitability/ visibility of the business

 Effective system:
oEquitable and clearly communicated
oCost effective and simple to administer
oAligned with business goals ie relevant

Monetary or non-monetary
 Using data to develop individual skills and abilities of employees
 Monetary reflected in pay or having financial value
 Non-monetary don’t have a financial value (social activities, retirement planning)
 Intrinsic those that individual derives from the task or job itself (sense of achievement)
 Extrinsic given or provided outside the job itself
 Remuneration both monetary and non-monetary rewards – encourage and reward
employees

Individual or group
 Indv are more fair and provide greater incentive to work harder BUT lead to conflict and
rivalry
 High quality work is achieved by an individual with reliance on other and other systems
 Induction of group awards encourages cooperation
 A fair rewards system can encourage a greater sense of team work
 Employees can become more motivated

Performance pay
 Process of linking part of an employee’s income to their performance at work
 Recognises that employee motivation comes from financial benefits
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

 Advantages = performance improve, encourages unmotivated staff and inefficient

individuals, lower turnover rate
 Disadvantages = performance may be difficult to measure, some employees may seek non-
financial rewards, unhealthy competition, short-term outlooks, worker feel undervalued

2003 Apple release employee stock plan that permits granting of:
incentive stock options, stock purchase rights, performance-based
awards

o Global strategies– cost, skills, supply

 Globalisation increased competitions, complexity of
managing staff, restructuring, outsourcing
 More companies entering international markets by
exporting their products overseas
 Access to cheaper workforce that possesses required
skills
 HR management in global context issues
oCost – firing from other countries, settling family, accommodation, relocating, quality
oSkills – level of employee in host country, how skills translate to other countries
oSupply – experienced and qualified employees, willingness to relocate (education system)
oEthical – not exploiting cheap labour
oLegislation – comply with local govt regulations
oCultural awareness – language to foster effective communication between staff

Polycentric Staffing Approach:

 Uses host-country staffing with parent-country staff in corporate management as
headquarters
 Helps the company access good market knowledge
 Often cost effective
 Satisfies local pressure for employment opportunities
 May limit management experience for host-country staff

Geocentric Staffing Approach:

 Uses the staff with the most appropriate skills for a particular role and location
 Builds a pool of managers with global experience
 Can be complex and expensive - local employment regulations, relocation and retraining
costs

Ethnocentric Staffing Approach:

 Uses parent-country staff in its business
 May limit ability to interact with customers and learn from overseas markets

Supplier Responsibility report 2012 – employees regularly worked 60 hr +, children as young as 15 (legal age
16), overtime payments often not paid, improper safety precautions, discrimination
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

o Work place disputes

 Disputes conflicts, disagreements or dissatisfaction between individuals and/or groups
 Industrial Dispute disagreement over an issue between an employer and its employees
oStrikes – withdraw labour
oLockouts – close entrance to workplace refusing admission by workers
oPickets – stop delivery of goods and entry of non-union labour into workplace
 Results in employees ceasing work
 Causes of disputes:
oRemuneration
oEmployment conditions
oJob security issues
oHealth and Safety issues
oManagerial or union issues
oPolitical or social protests
 Can undermine management and lead to time lost in the production process

 Resolution: negotiating, mediation, grievance, procedures, involvement of courts and

tribunals
 Grievance Procedures formal, written into an award/agreement to resolve workplace
dispute
o Apply to all stakeholders
o Provide clear outline of issues regarded
o Illustrates correct and appropriate processes
o Provides mechanism use to achieve quick resolution
 Most workplaces don’t experience industrial disputes
 Encourage collaborative working relationships
 Requires prompt and equitable settlement of a dispute
 Negotiation discuss between parties result in a compromise and formal/informal agreement
 Mediation confidential discussion of issues in a non-threatening environment with 3 rd party
 Arbitration independent judicial officer that will make decisions and how matters solved
 Involvement of Courts and Tribunals
oConciliation- a process where a third party is involved in helping two other parties reach an
agreement
oArbitration- the process where a third party hears both sides of a dispute and makes a legally
binding decision to resolve disputes
oOrders- decisions that require employees or employers to carry out a direction from the
tribunal. They may be inserted in awards or agreements.
 Fair Work Act 2009 provides protection rights:
o Workplace rights
o Right to engage in industrial activities
o Right to be free from unlawful discrimination
o Free from undue influence of pressure in negotiating individual arrangements
 Common law action open to any party involved in or affect by industrial action
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

(5)

Effectiveness of human resources management

 Managers look for indicators of effectiveness
 Strategies holistic view taken of important of building a workplace

o Indicators
 Performance measures that are used to evaluate organizational or individual effectiveness
 Businesses use a range of indicators to reflect on effectiveness of the HR functions

 Corporate culture’
 Values, ideas, expectations and beliefs shared by members
 Indicators of a poor corporate culture include:
o Workplace rights
o High staff turnover
o Poor customer service
o High levels of absenteeism
o Accidents
o Disputes and internal conflicts

 Benchmarking key variables

 Measuring employees performance against established standards
 Standards often set by businesses regarded as leaders in their industry, global and
competitors
 Used to compare business performance between internal sections or between businesses
o Disputes and internal conflicts
 10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

o Involves measuring employee’s performance against established standards

o Aiming to achieve ‘best practice’
o Uses real facts and figures rather than assuming
 Benchmarking methods
o Performance appraisals
o Productivity levels
o Management consultants to come in and use benchmarks

 Changes in staff turnover

 Separation of employees from an employer – voluntary or involuntary
 Average turnover 17.4%
 High in retail/construction and low in law/accounting
 Number of employees leaving an organisation relative to number been employed
o High turnover rates indicate employees are dissatisfied with their job
o Problem with HR in the organisation and poor employment relations
o Not enough being done during maintenance process
o High rates lead to a loss of productivity, profitability, corporate knowledge and skills

Managers at Apple often tell new employees that they hope to get six years of service, but the average tenure
is 2.5 years, as Apple retail stores have become increasingly busy, turnover rates have increased too.
Internal surveys also found dissatisfaction levels, particularly among technicians, or “geniuses” who work
at the Genius Bar.
 Absenteeism
 Employee absences, on an average day, without sick leave or leave approves in advance
 Majority entitled to 10 days sick leave per year for full-time
 5.3% Aust 12 million employees experience a work related injury
 High levels may indicate
o Problem with job design
o Disengaged employees
o Workers are dissatisfied
o Conflict within workplace, leadership styles or working conditions
o Stressed, sickness, and personal needs/family issues

 Accidents
 Injuries and these increase due to lack of concentration, commitment and other distractions
 Benchmarking methods
 Approx. 5.3% of Aust employees experience a work-related injury or illness each year.
 A low level of accidents indicate effective human resource strategies
 Best practices
o Conduct regular safety audits and safety programs
o Build a culture of safety – effective communication about health and safety
o Provide careful instruction and regular ongoing training
o Consult employees and health and safety personnel on implications of changes

Two years ago, 137 workers at an Apple supplier in eastern China were injured after they were ordered to
10.4 HSC topic: (HUMAN RESOURCES) The focus of this topic is the contribution of human resource
management to business performance

use a poisonous chemical to clean iPhone screens. Within 7 months last year, two explosions at iPad
factories killed 4 people and injured 77.

 Levels of disputation
 Disputes or disagreements can be costly to a business
 Greater number of disputes more likely that workforce is unhappy or poor working
relationship
 Disputes may arise as a result of managerial policy, discrimination and use of outsourcing
 Formal grievance procedures are an indicator of poor quality relationships in the workplace
 Indicate HR strategies
o Problems with maintenance process
o Possible safety issues
o Might not be acting in a socially responsible manner
o Ineffective dispute resolution

Dispute erupted between assembly line workers and quality control managers as a result of the new
iPhone 5 aluminum casing being scratched in production process. Workers disputed the lack of training
and abuse by managers, resulting more than 3000 factory workers going on strike, according to advocacy
group China Labour Watch (2013).

 Worker satisfaction
 Refers to whether employees are happy and content and fulfilling their desires at work
 Employee satisfaction is a key factor in developing a committed and motivated workforce
 Satisfied employees often work more efficiently and value the organisation that they work
 Employee satisfaction improved by matching purpose of business with skills and cultural fit
Indication of effective human resource management strategies
 Low level of accidents – measured by Lost Time Injury frequency Rate
 Employees need to closely monitor both overt and covert manifestations of industrial
disputes
 Employee should be concerned if number of formal grievances reported
 Employee satisfaction key factor in employee commitment, performance, staff turnover
 Should be concerned if a number of formal grievances are reported
 Indicates poor quality relationship in workplace
 Employee who have good relationships enjoy work activities, receive relevant training, gain
opportunities to grow are more likely to be satisfied and stay with the business