Business Studies Human Resources

role of human resource management

● strategic role of human resources

● interdependence with other key business functions
● outsourcing
○ human resource functions
○ using contractors – domestic, global

key influences

● stakeholders – employers, employees, employer associations, unions, government

organisations, society
● legal – the current legal framework
○ the employment contract – common law (rights and obligations of employers
and employees), minimum employment standards, minimum wage rates,
awards, enterprise agreements, other employment contracts
○ work health and safety and workers compensation
○ antidiscrimination and equal employment opportunity
● economic
● technological
● social – changing work patterns, living standards
● ethics and corporate social responsibility

processes of human resource management

● acquisition
● development
● maintenance
● separation

strategies in human resource management

● leadership style
● job design – general or specific tasks
● recruitment – internal or external, general or specific skills
● training and development – current or future skills
● performance management – developmental or administrative
● rewards – monetary and non-monetary, individual or group, performance pay
● global – costs, skills, supply
● workplace disputes
○ resolution – negotiation, mediation, grievance procedures, involvement of
courts and tribunals

effectiveness of human resource management

● indicators
○ corporate culture
○ benchmarking key variables
○ changes in staff turnover
○ Absenteeism
○ Accidents
○ levels of disputation
○ worker satisfaction
1. Role of human resource management

1.1 Strategic role of human resources

● to acquire, develop, maintain, and separate with workers to meet the needs of each
KBF
● Human resource management refers to the management of the total relationship
between an employer and employee
● To improve profitability through productivity (prod = max, costs = min)
● Employees are seen as an asset (not an expense), encouraged to be open in
communication and goal orientated
● Aims to reduce conflict through effective procedures and relationships
● Staff costs are generally at least 60% of operational costs
● Qantas is one of Australia’s largest employers, employing over 28000 people (92%
based in Australia) across 200 separate job categories

1.2 Interdependence with other key business functions

● In larger businesses, the HR manager is a member of the executive committee and

plays a significant role is strategic planning
● Most specialist HR managers are responsible for:
○ Human resource planning and job design
○ Acquisition: recruitment, selection and placement, attracting & hiring
○ Development: induction, training, career development and performance
appraisal, improving skills
○ Maintenance: wellbeing, legal responsibilities, communication, rewards
○ Performance management
○ Separation: employees leaving the business
○ Managing diversity: equal opportunities and legislation

● Operations – Staff need to be trained when new operations technology is adopted

(e.g. new aircraft and security systems). Operational changes such as cutting flights
during the GFC change size and type of workforce.
● Marketing – The right staff must be employed and trained to create the service that
satisfies Qantas’ consumers. People are an important part of marketing at Qantas.
● Finance – Recent financial decisions at Qantas like outsourcing, cutting flights,
launching new airlines in Asia have affected staff levels and the levels of industrial
disputes (e.g. industrial shut down in 2011). Staffing is Qantas’ biggest expense

1.3 Outsourcing

– Human resource functions

– Using contractors – domestic, global

 ● Outsourcing is often used to obtain a superior service, better functional quality and a
lower cost service than would be provided internally
● It is then process of contracting out business functions involving the use of third-party
specialist businesses
● Globalisation and rapid technological change have led to increased pressure to be
competitive
● Led to the development of new organisational structures, with the growth of
contracting out or outsourcing business functions

Outsourcing human resource functions:

● Allows firms to focus more on their core business as they grow, while experts in HR
assist by planning for growth, development and management of staff during this
phase
● May be used to review business practices and implement strategies to transform the
business using independent consultants with no perceived internal ‘agenda’
● Qantas has increased looked to outsourcing to become more cost-effective and to
simplify its business

Using contractors:

● Contractors are an external provider of services to a business → individual or a

business
● Used to create cost savings or to access greater expertise and capabilities to
improve competitiveness
● Particularly used for processing functions as they are repetitive and easily measured
● Recommended for non-core functions, allowing staff to focus on the broader aspects
of managing a firm
● Major risks include:
○ cost overruns (or cost increases),
○ loss of quality,
○ difficulty coordinating activities, and
○ difficulty monitoring quality and performance in outsourced activities
● Businesses should set clear and legally binding terms, timeframes and conditions in a
contractor agreement to avoid conflict and expensive litigation further down the
track
● Qantas uses subcontractors to create cost savings, access greater expertise and
improve its competitiveness.

● Domestic subcontracting:
○ allows firms to focus their resources on essential business activities, leaving
some of the detailed support or compliance related activities, to experts
(payroll management or order fulfilment)
○ Others seek the benefits of fresh ideas and perspectives such as leadership
development
○ By using this expertise, the business has the potential to improve the quality
and productivity of their service without the resource scale normally required
to achieve this level
○ risks include the potential loss of direct customer contact, which may impact
on sales over the long term
 ● Outsources domestic voice, data and domestic services to Telstra
● Outsourced data centres, its mainframe and mid-range computing operations and
project management to IBM

● Global subcontracting:
○ Outsourcing may take two forms:
■ Process outsourcing: dominant form of outsourcing of repetitive, easily
measured and documented work (recruitment, customer complaints,
food prep for an airline)
■ Project outsourcing: involves a greater use of intellectual property and
strategic business knowledge - operate in a longer time frame, more
difficult to measure and quality cannot be fully anticipated → more
risk (more commonly found in human resources, marketing, design, IT
and research areas)

○ Global outsourcing risks include:

■ Difficulty controlling quality and reliability
■ Cultural differences, which may impact on customer service
■ Security issues
■ The lack of remedies for breach of contract or other legal matters
under foreign legal systems
■ High labour turnover
■ Well qualified employees may be replaced with less qualified staff,
causing the quality of the service to decline
○ If the function to be outsourced can be clearly identified, measured,
managed and supported by a binding legal framework, then it may be more
suited to outsourcing

Advantages and disadvantages of global outsourcing of human resources

ADVANTAGES DISADVANTAGES

● Expand capacity/ flexibility ● Less integrated organisation

● Improve quality ● Quality may fall
● Save costs ● Consultants may not understand
● Access new networks your culture
● Conserve capital ● Costs may increase
● Allows business to focus resources on ● Hidden costs
main activities ● Morale and motivation may be
● Help in managing complex issues damaged
● Transform culture ● Less face-to-face client contact
● Improve legal compliance ● Reduce business learning through
● Train staff reliance on experts
● Access experts, by practice ● Loss of security and confidentiality of
management systems and research information

● Contracts some maintenance jobs overseas to Singapore and New Zealand

 ● Established a base in London for about 400 of its international flight
attendants saving them about $18 million through rostering efficiencies and
reduced accommodation and allowance costs
● Outsources its IT applications support and maintenance to 2 companies in
India
● Outsources the entire reservation system to a Munich based company called
Amadeus, including the moving of its inventory of fares, seats, departure
control and boarding passes.

2. Key influences

2.1 Stakeholders – employers, employees, employer associations, unions, government

organisations, society

● Employers and employees are the major stakeholders in a business

● Nature of their relation is influenced by other stakeholders
● Stakeholders are any individuals or groups that have a common interest in or is
affected by the actions of an organisation

Employers:

● one who exercises control over employees, has responsibility for the payment of
wages and/or salaries and has the power to dismiss employees
● Work on areas in HR - developing programs to improve performance of the business
● Recent legislation gives employers more power today
● encourage negotiation of agreements, resolve disputes and develop programs to
improve employee performance
● Improving management training in Australia is important in improving human
resource management
● The type of leadership and management style adopted by an organisation will have
important implications for its employment relations environment
● Qantas has restructured its organisation, outsourced more functions, relocated staff
overseas, launched discount airlines and hired more casual staff to cut costs and
increase flexibility. They have taken a confrontational stance with unions

Employees:

● a worker under the control of

○ an employer
○ the workplace location,
○ the way that the work is to be performed and
○ the extent to which supervision will be exercised
● Employees are the ‘human capital’ essential to the production process
 ● More highly educated than in the past - many feel driven to build their career
through a succession of jobs in a range of different organisations
● demand more challenges, interesting workdays, involvement in decision making,
independence and autonomy, career paths, a fair day’s wage and workplace
flexibility
● Businesses hoping to retain and motivate skilled staff need to put extra effort into
developing staff career and training plans, rewards and opportunities for greater
employee involvement
● Many unions have responded to worker fears and have made some employment
issues - such as job security and limitations on the use of casuals - a priority in
negotiating agreements
● Enterprise bargaining/ workplace agreements has impacted on the employee
workplace
● Qantas employs over 28000 full time employees. They are concerned with existing
levels of pay, working conditions and job security. They have been angered by
Qantas’s cost saving tactics

Employer associations:

● an organisation that represents and assists employer groups

○ act on behalf of employers in collective bargaining sessions and before
industrial tribunals, courts, commissions and committees
● Usually respondents to the awards covering the employees of their members, and
covering employers in the same or related industry
● Created by employers as a counterparty to unions in1904
● assisted employers in formulating policies and processed logs of claims served on
their members by unions
○ Logs of claims: a list of demands made by workers (often through their union)
against their employers
● activities include:
○ Proving advice
○ Making submissions to safety net wage cases
○ Negotiating agreements
○ Lobbying governments and other organisations
● Employer associations represent employers on a broader range of issues; human
resources and industrial relations matters makeup just one aspect of their role, eg:
○ Australian Medical Associations
○ Meat and livestock corporation
○ Australia Chamber of commerce and industry
○ Australian industry group
● Qantas is a member of the Australian International Airlines Operation Group. They
make sure Qantas’ concerns are represented to the government at the federal level
and to the community

Trade unions:

● organisations formed by employees in an industry, trade or occupation to represent

them in efforts to improve wages and the working conditions of their members
● Developed out of employee dissatisfaction after the Industrial Revolution
 ● The system for resolving industrial disputes, established in 1904, provided onions with
an official bargaining position in the making of industrial agreements
● In 1927, the Australian Council of Trade Unions was formed as the governing
organisation of all unions in Australia
● From this unions won major improvements in terms and conditions of employment
● Union memberships have fallen dramatically, as many have allowed their trade union
membership to lapse
● This may reflect employees moving on to managing roles, where individual
performance-based contacts are more common
● Unions are still represented in around ⅔ of workplaces (over 100 unions) with more
than 20 employees
● Unions are under pressure globally as membership declines to historically low levels -
● In response, unions are expanding their range of services and becoming more active
in recruiting to regain membership numbers. They are:
○ Proving representation in disputes
○ Free or discounted legal services
○ Superannuation schemes
○ Cheap home loans
○ Training programs through TAFE
○ Insurance
○ Cheap holiday units to rent
○ Income protection against illness or accident
○ WHS advice
● Reasons membership numbers have declined include:
○ Collapse of the centralised wage-fixing system
○ Community attitudes often favour individual rather than collective
approaches to problems
○ Poor image given of unions in media
○ Recent legislative changes → reduces power and role of unions
○ Unions becoming too dependent on tribunal systems in past, lost contact at
grass-root level
○ Globalisation
● Unions are developing global union structures to counterbalance the power of global
corporations and globalisation of businesses
● Qantas has a highly unionised workforce. They are represented by 18 different unions.
They have reacted angrily to Qantas’ drive to cut labour costs and have wages a
political, community and industrial campaign against Qantas

Governments and government organisations:

Governments are important stakeholders in the human resource management process and
overtime have significantly affected the industrial relations system as a result of their key roles

Legislator:
● Elected representative pass laws in parliament
● These provide the legal framework for industrial relations
 ● Legislation has led to the growth of the judicial system and the institutions/
processes used to settle disputes

Employer:
● Employ almost one-third of the Australian workforce as teachers, nurses, clerks,
police officers, postal workers, transport workers and in other roles
● often regarded as pacesetters in terms of responsible industrial relations
policies, having introduced practices like maternity leave, flexitime etc

Responsible economic manger:

● Governments operating at the macro level are keen to ensure
non-inflationary, stable economic growth and a high standard of living for all
Australia
● At times, may be conflict between governments’ economic goals which
impact on industrial relations

Administrator of government policies on industrial relations:

● Governments are able to implement the legislation they enact, through the
departments and agencies established
● Achieved through publishing information and guidelines providing advice to
the government and the public and investigating breaches of legislation

Representative of Australia in the international arena, in foreign affairs, trade and

international labour matters:
● As a result of its membership of Australia’s such organisations, the government
generally implements legislation based on the treaties and conventions it signs
with international organisations
● Social justice legislation

● Governments have attempted to increase their power to regulate the industrial

relations system through the use of the External Affairs and Corporations power, given
under the Constitution of Australia
● The Federal government is restricted in its power to act on industrial relations by the
Commonwealth Constitution
● Focused on reducing the powers of industrial tribunals and encouraging
decentralised bargaining in the workplace
● According to Section 51 of the Constitution, the powers to make laws on industrial
relations are derived from the:
○ Power to resolve disputes across state borders or
○ Corporations power or
○ External affairs power
Statutes:

● laws made by federal and state parliaments (eg. laws relating to employment
conditions)
● These statutes provide the framework for awards and agreements, the resolution of
disputes and require employers to:
○ Meet WHS requirement
 ○ Maintain workers’ compensation insurance
○ Provide superannuation, annual leave and long service
○ Ensure workplace is free from discrimination
○ Give each new employee a Fair Work Information sheet
● Since January 2010, Australia has shifted from a dual federal and state industrial
relations system to a national industrial relations framework
● This move recognises the efficiency of a more standardised system to business,
particularly national and foreign owned business that previously had to manage
employees operating under different state and national systems
● This system, implemented under the Fair Work Act 2009, is administered by the federal
government and covers all employees of constitutional corporations in all states and
most private employees formerly covered under state awards and enterprise
agreements (cc - one that falls under section 51(xx) of the Constitution of Australia -
identified as foreign corporations and trading or financial corporations formed within
the limits of the Commonwealth)
● The new system gives employers and employees the same workplace rights and
obligations regardless of what state they live in

Key elements of the new framework:

○ A national framework for industrial relations covering most private employees
of all states except WA
○ Ten National Employment Standards developed to provide basic protection
to all employees
○ Collective bargaining and good faith bargaining required by all parties
○ Modern awards for specific industries and occupations
○ Enterprise bargaining continued
○ Annual National Wage Vase sets minimum wage
○ Protection from unfair dismissal
○ Fair Work Australia administers Fair Work Act 2009, replaces Australian Industrial
Relations Commission, and absorbs the Industrial registry and the Workplace
Ombudsman
● The modern awards, NES and the national minimum wage order, make up a new
safety net for employees covered by the national workplace relations system
● The 122 modern awards replace thousands of previous state and federal awards,
and together with the NES and national minimum wage order, make up a new safety
net for employees
● They do not replace enterprise awards, which are made with a specific enterprise

Industrial tribunals and courts:

● Industrial tribunals exist at the federal and state levels to enforce laws established by
governments
● Fair work (follows in the steps of AIRC) Australia’s primary functions include settling
disputes through conciliation, supervising the making of agreements or awards and
award simplification, hearing appeals, and handling unfair dismissal cases
 ● They assist in resolving disputes involving employers, employees, unions and employer
associations who are covered by the national workplace relations system
● Their work is conducted by individual members or groups of members who are
responsible for specific industries or disputes, and are skilled in mediation, conciliation
and arbitration
○ award - the legally enforceable minimum terms and conditions that apply to
a business or industry
○ award simplification - the process of reducing the number of matters in each
award and eliminating inefficient work practices
● Members must have knowledge or experience in one or more of the fields of
workplace relations, economics, social policy, business, industry or commerce
● Breaches of Fair Work Australia orders can lead to fines of up to $12 600 for individual
workers and $63 000 for a corporate entity

Federal courts:
● The federal court of Australia is a judicial court
● Under the Constitution only courts have the judicial power (power of courts to
interpret and apply law) to determine disputes about existing rights and to make
decisions about these matters
● There is a division of the court that enforces industrial relations legislation by
administering court actions that arise under Australian industrial laws
● It handles cases relating to industrial action and breaches of industrial laws, interprets
industrial legislation
● It is able to impose penalties for the breach of an award or order, and discrimination
or victimisation under industrial and human rights legislation.
● It also has the power to approve the dis amalgamation (splitting up) of unions,
declare unauthorised action taken during a dispute and hear cases under the
Corporations Act 2001

Other government agencies:

● Other government stakeholders include:

○ Australian Human Rights Commission
○ Equal employment for Women Agency
○ Anti-discrimination board
● The federal National Occupational Health and Safety Commission Act 1985
established the National Occupational Health and Safety Commission, now Safe
Work Australia. Safe Work Australia began operating as an independent statutory
agency in 2008
● Its primary responsibility is to improve occupational health and safety, and workers’
compensation arrangements across Australia
● The government enacts employment relations legislation such as Fair work Act,
Corporations Law, Work Health and Safety Act and Workers Compensation.

Society:

● In 1948 the UN passed the Universal Declaration of Human Rights

 ● This recognised the importance of work to people’s lives and the need for fair and just
conditions and rights for those at work
● One of the most significant issues for any voter is their job - threats
● The relationship between employers and employees has often been a battleground,
as reflected in frequent disputes and changes in legislation in Australia over the last
decade
● Multinational corporations increasingly use contractors to supply or manufacture key
components or services, creating opportunities globally for suppliers with the most
cost effective operations
● Community demands for safety and wellbeing at work have increased over recent
decades, as has the pressure to eliminate discrimination against female, indigenous
and disabled members of the working community
● There is an ongoing battle between the need for the business to find ways to reduce
its biggest cost- labour- as pressure increases from global competition, and the needs
of employees, particularly those with dependent families
● Society wants as few disputes as possible as they rely on the dependability of Qantas
when travelling either domestically or internationally.

2.2 Legal – the current legal framework

– The employment contract – common law (rights and obligations of employers and
employees), minimum employment standards, minimum wage rates, awards, enterprise
agreements, other employment contracts

– Work health and safety and workers compensation

– Antidiscrimination and equal employment opportunity

The current legal framework:

● The employment contract creates obligations for both employer and employee
● All businesses operate within a legal framework of common law and statute law (law
passed by federal and state parliaments in Acts.
● Legislation covers the nature of employment contracts and agreements
● Employee welfare is provided for through occupational health and safety legislations
and specific legislation (social justice, environment, safety)
● Rudd Labor government in 2007, introduced a new legislative framework for industrial
relations- enacted through Fair Work Australia (2009)
● Work Choice laws were abolished
● Unregistered individual common law contracts of employment, casual work and
independent contracting remain common options for individual employment
● There arrangements shift the responsibility of organising employment conditions onto
the employee
● Shifted from a strongly centralised (government controlled) industrial relations system
in the 1980’s to a decentralised (business have more control) and more fragmented
system today
● centralised industrial relations system - a collectivist approach which disputes are
referred to industrial tribunals → FWC, for conciliation & arbitration
 ● decentralised industrial relations system - employers and employees negotiate wages
and working conditions in the individual workplace, through collective/individual
bargaining and without involvement of tribunals

The employment contract:

● legally binding, formal agreement between employers and employees

● Most basic workplace relationship is employee/ employer
● Written contract gives more protection to both parties than verbal as disputes occur
over contracts if working arrangements are not clear
● Encourages the parties to clarify the key duties + responsibilities of a job
● A contract is legally enforceable when:
○ The parties involved intend to create a legal relationship
○ One party offers and the other accepts the offer
○ Both parties obtain benefits
○ Both parties have the capacity to contract
○ Consent is genuine and not pressured
○ The offer does not contravene any public interest (break laws)
● Qantas have had to implement the 10 National Employment Standards into their
practises.
● Qantas will face big penalties if it is proved they do not bargain in good faith when
negotiating new enterprise agreements.

Common law:

● Developed by courts and tribunals (not parliaments)

● Judges make decisions based on the facts of a case, guided by precedent
● body of common law is developed from decisions made over time by judges
● Employers and employees have basic obligations in any employment relationship

● Employer obligations include:

○ Providing work - employers are not allowed to stand down employees if there
is no work
 ○ Payment of income and expenses - required to pay the income and
reimburse employees for expenses legitimately incurred as a result of
performing their work
● Employers rights in the workplace
○ Working with care and responsibility, in respect to WHS
○ Carrying out work according to their agreement/award
Meeting requirements of industrial relations legislation
○ Meeting requirements of industrial relations legislation - includes providing a
workplace and work practices (equity policies) and ensuring that workers are
protected against unfair dismissal
● Duty of care - employers are legally bound under the federal and state WHS Acts, to
provide reasonable care for safety of the employee by:
○ A safe system of work
○ Providing and maintaining premises
○ Providing resources, information, training, and supervision necessary to ensure
the health and safety of workers
○ Protecting workers against risks arising out of their work activities
● Employee obligations and rights include:
○ Obey lawful and reasonable commands made by the employer- when
employees do not obey such orders they place themselves at risk of dismissal
■ Reasonable orders are those that do not expose employees to
physical danger or contravene awards or existing laws
○ Use care and skill in the performance of their work activities
○ Act in good faith + honesty and in the interests of the employer
○ Follow all procedures
● Employees certain rights when carrying out their work:
○ being paid for all the time worked (overtime)
○ Having access to paid and unpaid leave entitlements
○ Receiving allowances for tools and uniforms

Minimum employment standards:

● From 2010, minimum employment standards have been expanded from the five
Australia Fair Pay and Conditions Standards
● The National Employment Standards have been developed in consultation with
business, unions and the community
● They provide the basis from which modern awards and enterprise agreements are
constructed
● must be provided by employers and state minimum conditions for employees
● have been planned to provide a greater safety net for employees, particularly for the
most vulnerable and low-paid employees in the workforce
● 11 standards:
○ Maximum weekly hours: 38 hours
○ Requests flexible working arrangement
○ Parental leave
○ Annual leave
○ Personal/carer’s leave
○ Community service leave
○ Long service leave
 ○ Public holidays
○ Notice of termination and redundancy pay
○ Provisions of Fair Work Information Statement

Minimum wage rates:

● The minimum wage rate in Australia is an employee’s base rate of pay for the number
of ordinary hours that they have worked
● From 2010, the employee’s base rate of pay for ordinary hours worked has been
determined by:
○ The award or agreement that covers the employee
○ The national minimum wage
● reviewed by a the Fair Work Commission’s Expert Wage Panel each year (take effect
from first pay period after 1 July of that year)
● employees and employers cannot agree on a pay rate < the minimum wage

Awards:

● Awards are legally binding documents containing minimum terms and conditions of
employment
● Include minimum wages, penalty rates, types of employment, flexible working
arrangements, hours of work, rest breaks, classifications, allowances, leave and
leave loading, superannuation, redundancy entitlements, and procedures for
consultation
● cover a large proportion of employees in lower skilled occupational groups in the
hospitality, retailing and community service sectors
● The process of simplifying awards aims to reduce the complexity and costs to
businesses involved with interpreting such agreements
● Under the national system, employees may now be covered by modern awards or
enterprise agreements, which can be developed or varied through Fair Work
Australia
● Fair work ombudsman- representatives of FWA that deal with complaints
● process for making an award requires lodgment of a dispute by a union or employer
association, as the Constitution only allows for dispute settlement at the federal level
● Award breaches may be reported by employees to Fair Work Australia
● FWA inspectors are able to investigate workplace complaints and provide
assistance in resolving them
● Employers who refuse, delay or obstruct a visit may be penalised

Enterprise agreements:

● Are collective agreements made at a workplace level between an employer and a

group of employees about terms and conditions of employment
● Collective agreements are made between a group of employees (or one or more
unions representing employees) and an employer or group of employers
● They offer broader terms and conditions than a modern award, and are an
alternative to a modern award n
● Under the new FWA Act 2009, there are three types of enterprise agreements:
○ Single-enterprise agreements- between a single employer and a group of
employees
 ○ Multi-enterprise agreements- made between two or more employers and
groups of their employees
○ Greenfields agreements: single- enterprise and multi-enterprise agreements
relating to a genuine new enterprise of the employer(s) that are made before
any employees to be covered by the agreement are employed
● Key features of the agreement:
○ Cover rates of pay, penalty rates and overtime, allowances, hours of work,
personal and annual leave, any matters related to the relationship between
the employer and the employees, plus their representative organisations
involved, and how the agreement will operate include a nominal expiry date
○ They must be approved by FWA, who must be satisfied that the agreement:
■ Has been made with the genuine agreement of those involved
■ Passes a better off overall test (BOOT) compared to the modern
award
■ Does not include any unlawful terms or designated outworker terms
■ Covers a representative group of employees
■ Covers matters that may be included in an enterprise agreement
■ Has a specific nominal expiry date (no more than 4 years)
■ Includes a dispute settlement procedure
■ Includes a flexibility clause and a consultation clause
■ Provides opportunities for employees to be represented by a
bargaining representative and to bargain in good faith during the
negotiation of an agreement

Other employment contracts:

● Individual contracts:
○ Exist when an employer and an individual employee negotiate a contract
covering pay and conditions
○ Cover employees not on federal agreements or specific state agreements,
particularly for those earning over the limit of award wages
○ More common in the private sector and at the professional and managerial
level
○ Many are informal and offer much less protection than other agreements
○ They are generally required to provide conditions that equate with minimum
provisions of related awards; if they do not, they are in breach of the law

● Independent contractors:
○ Often known as consultants or freelancers, undertake work for others;
however, they do not have the same legal status as an employee
○ Generally undertake a contact, service or project for another business and
work for multiple clients
○ Contractors tend to have a set term or specific project for their contract,
control their own work and may delegate some of their work to others
○ Submit an invoice on completion of a task, stage or project
○ A contractor carries most of the risk on a job undertaken, including covering
their own superannuation, tax, insurances and leave
 ○ Many employers prefer to rely on independent contractors as it allows
employment risks such as sickness to be shifted to the person undertaking the
work
● Contracts for casual work:
○ Casual employees are in employment that is short term, irregular and
uncertain; they are not entitled to paid holiday or sick leave
○ Have contracts with employers for short-term, irregular or seasonal work
○ Many employers prefer casual staff as it reduces costs for recruitment
dismissals and other on-costs
○ Often receive a 20-25% loading to compensate them for their lack of
entitlements and job security
○ Many casual employees find they miss out on training and promotion,
experience fluctuating income, and have difficulty obtaining credit
○ Also more likely to experience workplace accidents and are less committed
to the organisations that employ them
● Part-time contracts:
○ Part-time work is increasing in Australia
○ A factor of this is the GFC of 2008-09 as employers reduced hours for some
jobs in response to the downturn
○ Part-time employees have a continuing employment contract and work less
than 35 hours a week
○ They do have access to the employment entitlements offered to full-time
employees, but on a pro rata basis (in proportion to the percentage of time
they work compared to a full-time employee)

Work health and safety (WHS)

● In 1985, the Commonwealth Government, concerned at the high levels of injury,

accidents and disease in the workplace, introduced the National Occupation Health
and Safety Commission Act 1985
● Safe Work Australia was established to conduct research and develop national
standards, codes of practice and common approaches to WHS legislation - endorsed
by the state government
● Common law supports laws developed by the states, by requiring that employers
provide competent staff and a reasonably safe system of work
● WHS laws will improve productivity by reducing the compliance costs of businesses
and improve the quality of occupational health and safety conditions for all
Australians
● In NSW, under the Work Health and Safety Act 2011, the following are required:
○ Employers must ensure the health, safety and welfare at work of all employees
by providing a safe system of work
○ All employers must take out workers’ compensation insurance, or face
imprisonment or a $555000 fine
○ Employers must take steps to ensure that people on-site who are not
employees are not exposed to risks arising from work being undertaken
○ Employees are required to take reasonable care for the health and safety of
others, to cooperate with employers and comply with WHS requirements
 ○ Employees who engage in bullying, skylarking or interfering with machinery or
any other behaviour that outs other employees at risk are breaching their
duties and could be fined
○ Health and safety committees must be established at workplaces with more
than 20 employees if requested by a majority of employees or if directed by
WorkCover
○ WorkCover is a government organisation who enforce WH&S in the public
sector
○ WorkCover inspectors may inspect the workplace, collect information, and
issue improvement and prohibition notices under the Factories, Shops and
Industries Act 1962. This may in some cases, mean that work ceases
○ WorkCover must be notified of any deaths or serious injuries in the workplace,
ad any plans to carry out dangerous work
○ Corporations may be fined up to $555000, $825000 if repeat offenders and
individuals $10000 and $82500 respectively for breaches

● The Australian Council of Trade Unions (ACTU) conduct its own surveys
● In best practice businesses, management undertakes regular safety audits,
benchmarks their performance and implements comprehensive safety programs
● Policy statements, safety signs and reminders are visible and there is regular ongoing
training for staff who are aware of safety rules and prepared for emergencies
● Qantas WHS program has increased safety awareness and led to an 80% reduction in
employee injuries since 2001
Workers’ compensation:

● Workers’ compensation provides a range of benefits to an employee suffering from

an injury or disease related to their work.
● also provided to families of injured employees when the injury/ disease was caused
by, or related to, their work
● State legislation covers employees for workers’ compensation matters, unless they are
Commonwealth Government employees.
● In NSW WHS laws and workers’ compensation matters are administered by
WorkCover
○ WorkCover are a statutory body responsible for achieving safe workplaces,
effective return to work and security for injured workers
● All employers must:
○ Take out a policy with a licensed insurer
○ Keep time and wages records, a register of injuries, and complete accident
and internal investigation forms, or face a penalty of $55000 or six months jail
○ Notify insurers of significant injuries within 48 hours
○ Establish, in consultation with the insurer and the employee’s doctor, an injury
management plan and a return-to-work plan for all injured workers, when fit
for suitable duties
○ Pass on compensation monies to the person entitled as soon as possible
● Employees must notify their employer as soon as possible of an injury or work-related
illness
● Compensation is provided to employees suffering injuries or illnesses, substantially
developed from their work
● Absences or injuries made on a journey to or from work are also covered by the Act
● Supports injured workers through providing the benefits and assistance needed to
recover and return to safe, durable work, if possible
● Benefits are payable if employees experience total or partial incapacity to perform
work; there is a need for medical, hospital or rehabilitation treatment; or if there is
permanent or partial loss of use of parts of the body
● If an employee on a journey to or from work substantially increases the risk by
deviating from or interrupting the journey, benefits may not be payable
● An injured employee may claim compensation, a lump sum payment or sue for
common law damages for negligence
● different types of claims have specific eligibility criteria:
○ medical treatment and rehabilitation expenses
○ weekly payments
○ psychological injury
○ permanent impairment
○ workbreak and journey injuries
○ hearing impairment
● Legal assistance may be provided to support a claim
● Benefits may not be payable if employees have deliberately injured themselves or
are solely responsible for the injury through their willful misbehaviour or misconduct
● Permanent disablement or death in these circumstances does allow the payment of
benefits
● For more employees, ‘provisional liabilities payments’ are made for up to 12 weeks
after an injury
 ● Claims for medical expenses compensation up to $5000
● Formal claims are generally made for matters extending beyond this period or for
medical costs greater than $5000
● Eligibility for lump sum payments and the calculation of these payments under
statutory law is now based on the principle of thresholds for degree of body
‘permanent impairment’ and is capped at $250000, plus weekly income support and
medical costs for life
● Pain and suffering compensation is additional and only paid for a degree of
permanent impairment greater than 10% and is capped at $50000
● The maximum penalty for a false claim under the NSW Workers Compensation Act is
$5500 or 12 months’ imprisonment, and for insurers who delay commencing payments
penalties up to $50000 apply
● They must take out worker’s compensation insurance
● Common law redress:
○ Employees may take action against an employer when the employer or
another employee has been negligent or breached their duty, if the
employee has a permanent body impairment of more than 15% and if the
injury occurred at least 6 months prior to the claim
○ Common law action has been taken for serious disease
○ Such claims are heard in the district or supreme courts
○ If employees are unsuccessful in their actions, they will continue to receive
worker’s compensation as required under statutory law
○ Legal advice must be considered before seeking damages obtained under
common law redress
○ James Hardie Industries asbestos victims (class action was taken)

Anti-discrimination

● Discrimination occurs when a policy or a practice disadvantages a person or a group

of people because of a personal characteristic that is irrelevant to the performance
of the work
● includes harassment and vilification
● Anti-discrimination legislation has been enacted to protect employees from direct
and indirect discrimination
● To prevent discrimination and to avoid large fines, employers need to:
○ Comply with legislation
○ Audit all policies and practices to ensure they do not discriminate
● Employers and managers working in HR need to be familiar with the following
legislation:
○ Human rights and equal opportunity commission Act 1986
○ Affirmative Action Act 1986
○ Sex discrimination Act 1984
○ Anti-discrimination Act 1977
● The agencies available to support the legislation are the Australian Human Rights
Commission, the Equal Opportunity for Women Agency and the Anti-Discrimination
Board
● Under discrimination laws it is illegal to take adverse action in employment on the
grounds of person’s:
○ Race, sex, sexual preference, colour or age
 ○ Physical or mental disability
○ Religious faith or political opinion
○ Social origin or national extraction
○ Marital status and career responsibilities
○ Pregnancy or potential pregnancy
● Protection has been further enhanced under the FWA
● It allows freedom of association for members or non-members of a union and
protection in a wider range of employment aspects
● People who suffer discrimination may take a range of actions internally, formally or
informally

● Strategies used increasingly by businesses to eliminate discrimination include:

○ Committing to a workplace free from discrimination

○ Writing and communicating policies to prevent discrimination and
harassment, including a code of conduct
○ Making sure all policies and procedures are clearly documented and
accessible to employees, offer inform and formal options, and guarantee
timely responses, confidentiality and objectivity
○ Training managers and staff in cultural diversity issues and ways to prevent or
deal with discrimination and harassment, primarily using face-to-face and
interactive training programs
○ Appointing a grievance officer and specifying grievance procedures
involving issues such as sexual/ racial harassment
○ Regularly evaluating record keeping, implementation and effectiveness of
policies, workplace culture and action taken to resolve complaints
● All employers are required to take reasonable steps to eliminate discrimination
● Employers associations and anti-discrimination agencies can help business develop a
strategy that ensures consistency and fairness in handling of complaints
● Qantas investigates and takes seriously all claims of discrimination
● Qantas ensures female employees are treated with fairness and equity. They have
taken measures to increase the number of women in management (up by 11% since
2007) and on the Qantas Board (up by 15% since 2007) and support those in
executive roles.

Equal employment opportunity:

● Refers to equitable policies and practices in recruitment, selection, training and

promotion
● EEO ensures that the best person for the job is chosen, the business gains the person
with skills and abilities most appropriate to its needs, and a more positive work
environment is promoted
● The level of equity in a business is reflected in the extent to which women and
minority groups have access to different occupations and positions within the
business
● Also reflected in grievance expressed or legal action undertaken on the grounds of
discrimination or sex-based harassment
● Employers with more than 100 employees, and all higher education institutions, are
obliged to develop an affirmative action (measures taken to eliminate direct &
indirect discrimination & for implementing positive steps)
● to overcome the current and historical causes of lack of equal employment
opportunity for women
● The report must:
○ Established the workplace profile and analyse the issues in the specific
workplace
○ Report on the actions taken by the employer to address priority issues
○ Describe the action plans for the following period and evaluate the strategies
used
● Businesses are then assessed as complying or not complying with requirements
● The aim of the program is to remove discriminatory employment barriers and take
actions to promote equal opportunity for women in the workplace
● FWA must not take action to ensure that no existing or proposed award or enterprise
agreement discriminates on a wide variety of grounds
● The Equal Opportunity for Women in the Workplace Agency recommends that
businesses focus on six areas to improve equity within their business
○ Recruitment, promotion and separation
○ Access to all occupations and areas
○ Equitable total remuneration
○ Training and career development
○ Work and life balance
○ Sexual harassment and working relationships
● Some specific strategies businesses can use to improve equity include the following:
○ Establishing a strategic plan that incorporates the business objectives,
strategies and targets
○ Developing a policy statement and informing all staff that an affirmative
action program has been initiated
○ Developing a code of practice to communicate to customers and suppliers
the business’s commitment to equity
○ Implementing a system to gather, monitor and evaluate statistics on
employment
○ Evaluating all current work policies, practices and industrial agreements for
equity/ discrimination
○ Training all recruitment staff and interview panels in EEO awareness
○ Making awareness of EEO a criterion in performance appraisal and promotion
○ Keeping all staff, including those on leave, informed of vacancies or other
opportunities within the business
○ Conducting exit interviews to ascertain reasons for employee resignations
○ Benchmarking to analyse the effectiveness of the business’s strategies on EEO
 ● economic
● technological
● social – changing work patterns, living standards
● ethics and corporate social responsibility

2.3 Economic

The economic cycle:

● The demand for labour (employees) is determined by the demand for goods/
services in the economy
● If labour shortages develop during periods of economic growth, employers compete
for employees by offering higher wages
● During downturns in the economic cycle, the demand for goods and services falls

● Businesses are forced to reduce the size of their workforce (downsize) and limit their
capacity to provide significant wage increases

● Structural changes:
○ a change in the nature and pattern of production of goods and services
within an economy.
○ includes significant growth in the level of services in an economy compared
to other sectors
○ Led to rapid employment growth in the service sector (86% total)
○ As each sector grows, recruitment, selection and remuneration become
important industry issues
○ With an ageing population, flexible staffing arrangements, retention and
mentoring increase in importance
 ○ Effective training and staff empowerment are also critical to business success
in such customer service-based industries
○ In manufacturing, removal of protective tariffs and quotas has increased
business exposure to international competition
○ The subsequent fall in employment in manufacturing has been hastened by
rapid technological changes

Globalisation:

● Globalisation of business has increased the level of international competition

● Many restructure, outsource non-core functions or subcontract production in order to
compete effectively
● Increasingly prepared to relocate production units in other cities, states or countries
where dispute levels, labour and regulatory costs are much lower
● Enterprise bargaining has allowed many employers to trade-off restrictive/ inefficient
work practices for wage increases in industrial agreements
● Training in the management of multicultural workforces, with differing approaches to
power, authority and the role of groups/ individuals, is increasing with the
globalisation of business
● Increasing role for international organisations to promote trade between countries
that adhere to social justice principles

2.4 Technological influences

● Technological change is the major source of improvements in productivity,

communication and competition between businesses
● Causing the nature of production and services to change, new jobs to be created,
and others to be made redundant
● A suite of electronic communications options allow firms to operate ‘anywhere,
anytime’ and to harness staff through telecommunicating
● Use of new communications technology does increase the need for ongoing training
programs and new protocols to ensure that work-life balance is maintained in an
environment in which society often expects people to be ‘always on call’
● Technological change in Qantas includes:
○ New security systems in response to terrorism threats
○ New planes (Dreamliner and A380)
○ New inflight entertainment systems
○ New online check-in, self-service kiosks, etc.
● As a result, Qantas’ staff have had to learn new skills, or their jobs may have become
redundant

2.5 Social influences – changing work patterns, living standards

Changing work patterns:

● Dramatic growth in part-time and casual work over last 2 decades - largely due to
growth in the finance, retail, hospitality and community service industries
● Part-time work offers flexibility in balancing work and personal life
● Work patterns are changing, and commentators refer to this trend as ‘labour
fragmentation’
 ● In 1979 only 16% of the workforce were part-time employees, by 2012 this grew to
32%.
● The proportion of casual workers grew from 17% in 1992 to approx 25% today
● Indicates that the GFC in 2008 led to a lot of full time workers being forced into casual
and part-time work
● Career flexibility and job mobility:
○ Workers are taking more control over their own careers
○ Around 14-16% of employees are considered job mobile
○ 44% of full-time employees have worked for their current employer for more
than 5 years
○ The most mobile employees (aged 20-24) are found in the retail or hospitality
industry
○ Many leave full-time positions after developing specialists skills and experience
to become independent contractors or consultants
○ Many employees will find that they must learn new skills to adjust to changes
in their jobs
○ Others will have to train themselves for new jobs that open up when old ones
disappear
● Increased participation rates for women and older workers:
○ The increase in the participation rate over the past 3 decades is due to the
increased participation by women and older people in the workforce
○ Since 1980, the participation rate of females aged 25 to 54 has increased by
over 20%, reflecting changing social expectations, increased education
levels, improved access to child care and more flexible work arrangements
○ The participation rate of people aged 55 and over has increased by 10% as
people have incentives to work longer, better employment opportunities,
increased employment opportunities in the physically less demanding services
sector, and better health and longer lives.
● Ageing of the workforce:
○ Likely to see a significant shortage of skills in the community over the next few
years
○ Flexible working arrangements will be critical in utilising this ageing workforce -
health, education and society and culture
○ Businesses and government will need to respond by upskilling the population,
creating incentives to encourage staff to postpone retirement and
implementing appropriate human resource strategies to transfer skills to those
remaining in the workforce
○ Removing discrimination in the recruitment of older workers, providing
opportunities to update skills and offering targeted health and safety
programs will also be essential
● Early retirement:
○ The average age of retirement from full-time work has increase and is 53 (58
for males and 47 for females)
○ Participation in part-time work is much higher
○ Older employees are using a gradual withdrawal approach to retirement -
eligibility for superannuation, health reasons, financial reasons or to relieve
boredom

Living standards:
 ● Australians are aware of the pressure from the global competition on these hard-won
benefits and our high living standards
● All political parties recognise the importance of these conditions to the average
Australian at work, and are unlikely to challenge these rights in future
● Companies who seek to undercut conditions will be challenged by unions keen to
avoid erosion of our living standards
● Casualised workers suffer from higher levels of stress due to difficult in purchasing
assets, including homes and managing finances and debt with unstable or uncertain
income
● Social expectations in terms of home ownership, holidays and ownership of consumer
goods are an important factor in the rising participation of women in full-time and
part-time work and in the rising retirement age for women
● Concerns are frequently rained about the loss of weekends for families working
flexible hours and shifts
● The blurring of work and home lives is creating an expectation that employees and
businesses will be ‘always on’
● Governments have responded by implementing legislation to make workplaces more
family friendly, through providing carer’s leave, job share, part- time and flexible
working hours
● Major concern for Australians about their living standards and working life has been
present over the last few years
● Main concerns include:
○ Increasing income equality in Australia, as growth in real wages has lagged
behind profit growth in recent years and the widening gap between average
male and female wages
○ The casualization of the workforce, with 2 million Australians now working
part-time or casually, and the pressure this creates on family finances and life
○ Increasing pressure to manage the finances in their lives as governments
retreat from welfare and encourage individual responsibility for retirement,
healthcare, education and debt management
○ Lack of work-life balance, with long working hours and loss of holidays and
weekends with families
● About 24% if staff at Qantas are now part-time or casual
● Female employees now comprise 41% of Qantas’ total workforce following an
increase in the participation rate of women
● Qantas have adopted more family friendly practises such as building new child care
facilities and a keep in touch program for staff on maternity leave
● The number of women accepted into its graduate intake and leadership program
has increased
● Population shifts have created a more ethnically and culturally diverse workforce at
Qantas requiring more cultural awareness

2.6 Ethics and corporate social responsibility

● Ethical business practices are those practices that are socially responsible, morally
right, honourable and fair
● A socially responsible, ethical employer recognises that:
○ A pleasant working environment and good working conditions are valuable in
motivation and retaining staff
 ○ Performance and motivation are maximised when staff feel secure, confident
in their work, recognised, safe, equally valued and rewarded for their efforts
○ An effective workplace benefits from good working relationships and
teamwork
○ The business depends on community support, as a source of staff and as a
source of business (that is, customers) and resources
○ Management should be committed to an ethical workplace culture
○ Customers eventually find out which businesses are acting responsibly and
which are not
● An ethical framework must be developed for the workplace, in collaboration with the
major stakeholders
● Modern society expects more from Qantas than just making profits. Example of HR
programs implemented by Qantas are:
● Working life – a health surveillance program, including flexible work practises
● Cultural diversity – Reconciliation Action Plan focusing on employing Indigenous
Australians
● Key principles may include ensuring equity in workplace processes, legal compliance,
and commitment to customers
● The benefits accruing from ethical practices are becoming increasingly evident from
research and include the following:
○ Staff retention and absenteeism rates improve as staff feel more valued and
motivated
○ Business costs (such as recruitment and training) are reduced and business
performance is enhanced
○ There are significant marketing and business opportunities- best practice
employers enjoy regular publicity in the media, in journals and on the internet

Working conditions:

● An ethical employer can be expected to achieve safe and fair working conditions
that improve the welfare of employees
● These include:
○ Compliance with social justice and industrial legislation (WHS,
anti-discrimination etc.)
○ Providing a safe and healthy working environment, safe working practices
and equipment, appropriate supervision and training in safety and health,
without which, workplace incidents may occur
○ Creating challenging, interesting and meaningful work to stimulate intrinsic
rewards for staff
○ Improving communication and fostering teamwork and empowerment of
staff
○ Providing study leave and training opportunities to reduce skill obsolescence
and improve access to management positions
○ Offering equitable and open rewards and benefits subject to clear criteria
○ Offering flexible working hours and conditions that promote a balance
between work and life
○ A strategic plan supported by management that incorporates specific ethical
responsibility
○ Implementing change through collaboration with staff
 ○ Establishing a code of practice for customers, employees and suppliers
○ Evaluating and benchmarking its performance to ensure it is operating at best
practice
● Working conditions have come under focus over the last 2 decades
● The pressure to become competitive has been reflected in the rapid growth of
precarious employment (predominantly casual/ part-time)
● Exploitation of adult workers through outworking and subcontracting locally and
offshore is often raised as a major ethical issue
● There are concerns surrounding child labour globally and the ‘race to the bottom’ by
businesses to secure cheap labour
● Businesses argue that only jobs that are unskilled and offer a major labour cost
differential are shifted offshore
● Also argue that shareholder pressure for ongoing profits requires them to constantly
search for more efficient approaches to managing their most costly resource
(employees)
● Businesses are sensitive to consumer concerns due to the success of consumer lobby
groups and actions, and media scrutiny
● Responses demonstrate corporate social responsibility through such strategies as
regularly undertaking audits of their factories abroad, and working with agencies to
support ethical practices in their local and offshore operations

3. Processes of human resource management

processes of human resource management

● acquisition
● development
● maintenance
● separation

HRM is focused on acquiring, developing, maintaining and managing staff productively to

achieve the business’s goals. This involves managing the relationship between employer and
employees effectively to develop and retain talented, competent, productive employees

3.1 Acquisition

● Acquiring the right staff is a critical process in managing human resource

management processes
● Acquisition involves analysing:
○ The internal environment - particularly the business’s goals and culture
■ The focus may be on cost containment, growth, downsizing, improved
customer service or quality, or other internal goals
○ The external environment- including economic conditions, competition,
technology, and legal, political and social factors
● Job analysis and job design are required to meet the needs of new positions
● These are undertaken through staff interviews, observations, and reports from
performance appraisals and evaluations
● Job specifications and descriptions can then be developed and prepared for
applications through external recruitment
 ● Identifying staffing needs – Qantas will conduct a job analysis to produce a job
description which defines the scope of job activities, major responsibilities and
positioning of the job at Qantas
● Recruitment – Sources or recruitment for Qantas are internal and external. Due to
high recruitment costs (advertising), these methods are constantly evaluated
● Employee selection – Qantas conducts interviews, personality tests, background
checks, selection decisions, physical examinations which ends in a job offer and
contract of employment. The wrong choice can be costly for Qantas

Recruitment, selections and placement:

● Recruitment is the process of locating and attracting the right quantity and quality of
staff to apply for employment vacancies or anticipated vacancies at the right cost
● Employment selection involves gathering information about each applicant and
using that information to choose the most appropriate applicant
● Placement involves locating the employee in a position that best utilise the skills of the
individual to meet the needs of the business
● Effective recruitment and employment selection involves:
○ Evaluating and hiring qualified job applicants who are motivated and have
values and goals aligned with the business and its culture
○ A fair, non-discriminatory and legally compliant selection policy and process
○ Giving applicants a realistic understanding of their job description and
responsibilities
○ Using strategies that will prove useful for later selection and placement
decisions
○ Using strategies that are aligned with other human resource strategies and the
business’s needs
● Most businesses use a mixture of internal and external recruitment

3.2 Development

● Effective development programs ensure that experienced and talented staff are
retained
● They enhance employees’ motivation and commitment to the business through
promotion opportunities over the longer term
● Training and development needs change as an employee’s career develops
● Training and development at Qantas is about a $275 million a year investment. Its
objectives include:
○ Increased efficiency
○ Improved quality of service
○ Fewer accidents and damage to equipment
○ Personal growth of employees
○ Make employees more flexible and adaptable to change
○ Reduce absenteeism and staff turnover
● Training includes:
○ On the job (apprenticeships, coaching, job rotation, mentoring, etc.)
○ Off the job (simulation, Qantas College Online, day and block release at
Qantas’ Centre of Service Excellence)
● Development focuses on enhancing the skills of the employee through:
○ Further professional learning
 ○ Mentoring or coaching
○ Performance appraisal and management to allow them to take advantage
of opportunities to develop a career with the business

Induction:

● An effective induction program is carefully planned to introduce a new employee to

the job, their co-workers, the business and its culture
● Most employees who leave a business depart in the first three months; therefore, the
need for support is greatest when an employee is in a new job
● A well-prepared induction program:
○ Gives employees a positive attitude to the job and the business
○ Builds a new employee’s confidence in the job
○ Stresses the major safety policies and procedures, and explains their
application
○ Helps establish good working relationships with co-workers and supervisors

Training:

● The aim of training is to seek a long-term change in employees’ skills, knowledge,

attitudes and behaviour in order to improve work performance in the business
● It is essential in overcoming business weaknesses, building on strengths and
maintaining staff commitment
● A focus on acquiring new skills and knowledge helps a business adapt to change
and stay ahead of the competition
● The majority of employees who attend a formal course or study for an educational
qualifications receive some assistance from their employer
● A business’s ability to remain competitive can be affected by the extent of training it
offers
● A lack of training may be damaging in the long run because it could result in higher
turnover rates as staff seek development in other businesses
● The key features of an effective training program include:
○ Assessing the needs of an individual, the job and the business
○ Determining the objectives of the training program for the business, job and
individual
○ Consider the internal and external influences- including the attitude of the
employee to training, staffing, financial and physical resources available to
operate the program, as well as any new research on relevant training issues
and government programs or support available for training
○ Determine the process:
○ The content of the training program
○ The learning principles to be applied, including participation,
repetition, demonstration and feedback
○ The learning methods to be applied, such as simulation training,
lectures
○ The location of the training program, whether on-site or off-site
○ The participants involved
○ Evaluate the training program. Strategies include:
■ Tests and surveys - both prior to and after training
■ Performance appraisal
 ■ Observation
■ Benchmarking of key indicators- such as defects, customer complaints
and accident rates

Organisational development:

● In the current era, businesses tend to have a flatter management structure

● Businesses with flatter structures benefit from employees’ ability to develop shared
ideas and solutions to problems
● It can improve efficiency, effectiveness and response to customer needs, however it
can reduce the promotional opportunities of employee’s
● Managers therefore need to use strategies to help motivate and retain talented staff.
Strategies include:
○ Job enlargement - increasing the breadth of tasks in a job
○ Job rotation - (multitasking) moving staff from one task to another over a
period of time
○ Job enrichment - increasing the responsibilities of a staff member
○ Job sharing - where two people share the same job
○ Self-managing teams - teams in which roles and decisions are determined by
their members
○ Mentoring and coaching - where a leader or more experienced member of
staff provides advice and support to another person developing skills in the
area

Mentoring and coaching:

● Mentoring and coaching are increasingly used to motivate and develop staff with
leadership potential
● Mentoring is a mutually agreed role, which is more focused on building a personal
relationship that encompasses the life experience of both parties
● Often those being mentored select their mentors and are free to accept or reject the
advice offered
● Coaching is focusing on improving skills and performance, and on helping individuals
manage specific work roles more effectively
● Coaches may be provided by the business, or may be sought by those seeking
further development

Performance appraisal:

● a process of assessing the performance of an employee, generally against a set of

criteria or standards
● Used to assess an employee’s suitability for promotion and their potential value to the
business’s success
● Managers need to ensure the criteria are job related, the appraising staff have been
trained and that there is no discrimination in the process
● Employees are more likely to value a performance appraisal if they are given a
chance to discuss their performance and to challenge their evaluation
Common methods of appraisal:
○ Essay method: manager keep a journal on employees being appraised
 ○ Critical Incident Method: manager records good/bad aspects of work
performance
○ Comparison Method: Each employee is ranked according to a list of
predetermined performance criteria. Often incorporates statistical values as a
means of measurement

3.3 Maintenance

● In HRM maintenance focuses on the processes needed to retain staff and manage
their wellbeing at work
● It involves looking after staff wellbeing, safety and health, managing communications
effectively, and complying with industrial agreements and legal responsibilities
● Staff wellbeing can be achieved through allowing them to have control and make
decisions
● Employee participations strategies will increase and foster involvement in decision
making
● Effective communication strategies support employee participation and a strong
workplace culture
● Employees have the right to a healthy and safe work environment
● Offering family-friendly programs that support work-life balance is critical - this include
flexible job roles to suit family needs
● Employees also expect that industrial agreements, and payroll obligations and
benefits are met
● Remuneration – used to increase job satisfaction, reward peak performance and
reduce staff turnover, Qantas has aimed to keep increasing pay by about 3% per
year.
● Work environment – excellent staff facilities help motivate and retain staff
● Flexible working conditions – Increasing maternity leave from 10 to 12 weeks, up to 10
days’ carers leave, a keep in touch program for staff on maternity leave, new child
care facilities in Sydney, Melbourne and Brisbane
● Increasing parental leave for primary caregivers from 52 to 104 weeks
● Complying with existing legislation regarding human resource

Communication and workplace culture:

● Effective workplace relationships depend heavily on the strength of a business’s

communications systems
● Common methods of communication include regular team meetings between
managers, or supervisors, and employees; staff bulletins and newsletters; staff
seminars; social functions; suggestion boxes and staff surveys; and email and intranet
● Email is often criticised for being a source of misunderstandings and tension - there
are also issue of whether staff will attend to emails at home, this becoming a
common source of workplace conflicts
● Strategies that focus on building trust and direct communication between people are
critical in preventing conflicts and escalating issues
● Help in building a positions workplace culture
● The need for social distancing in a post COVID-19 work environment has seen a shift
in office layouts and the need to minimise risk.
● Workers are being encouraged to work from home where they can. If this is not
possible, there are a number of strategies businesses can use
 ● Communications with employees should always be constructive, even when there
are problems with employees

Employee participation:

● The nature of workplace communication is changing with the increasing use of email
and increased opportunities for employee participation
● Businesses encourage employee participation to improve communication, empower
employees and develop their commitment to improving quality and efficiency
● Businesses benefit from employee experience and knowledge on the job and
improvements they suggest are often critical to a business’s competitiveness and
success
● The value and effectiveness of employee participation depends on the training,
knowledge and skills of the employees involved
● Effective participation is fostered through regular team meetings/ briefings to discuss
customer feedback, company trends and issues

Employee participation strategies include:

○ Participation through membership of the board of directors - this allows an
employee or senior employee to represent staff of the board
○ Participation through ownership - employees buy shares in their company,
which may result in increased commitment
○ Joint consultative committees - these are formally established groups
consisting of employees, management representatives and may or may not
include union representatives
■ Original purpose was to provide management with the views of
employees on a range of issues, enhance communication and
improve efficiency and productivity
○ Participation in collective bargaining - it is a requirement that a majority of
employees be involved in developing and enterprise agreement
○ Team briefings - teams provide an excellent opportunity for employees to
share knowledge, skills and experience; to find solutions to problems and
develop innovations
○ Employee surveys and feedback from performance interviews - many
businesses use a range of surveys and reports from staff to seek valued
feedback on ways to improve business performance

Benefits:

● Benefits are often a litmus test of the workplace culture as they are available to all
staff
● They may be monetary in value or non-monetary, and the extent of benefits
available will reflect the resources of the business and the nature of its activities
● All employers are required to pay superannuation for employees who are aged 18+
and earn a minimum of $450/month (before tax) as a casual, part-time or full-time
employee
● Typical benefits include flexible working arrangements, paid training opportunities,
travel allowance, health insurance, subsidised gym membership, housing and
company car
● Some benefits attract an employer paid fringe benefit tax
 ● Benefits that may be considered for FBT include airline transport, expense accounts,
board and accommodation, housing loans, living-away-from-home allowance, car
parking, property and entertainment allowance
● FBT: Fringe benefit tax employers must pay on certain benefits they provide to their
employees or their employees’ associates eg family member)

Flexible and family-friendly work arrangements:

● Employees want a work life balance - this is being responded to with more flexible
working arrangements, in order to attract and retain talented staff
● A family friendly workplace may include:
○ Workplace participation and training
■ Increased multiskilling to allow staff to ‘fill in’ for others
■ Staff meetings to discuss work-life issues
○ Flexible working arrangements
■ Part time, variable full-time/ part-time work, career breaks, job sharing,
flexible hours and work from home
○ Family support
■ Arrangements to check children, phone policy, employee assistance,
seminars, respite care for elderly and disabled, supporting community
service
○ Child care
■ Employer-supported ventures, joint venture, reserved child care
places, vacation care programs, sick children arrangements, advice/
referral service
○ Leave
■ Maternity, paternity and family leave
○ Other
■ Flexible salary packages, support on parental leave, work-family
information, relocation policies (such as school matching service),
family days, work experience for children
● Flexible working conditions allow businesses to work more efficiently and allow
employees to balance work and family responsibilities more effectively
● Home based work is becoming more practical as the electronic methods of
communication and technology improve
● Typical flexible working conditions include:
○ Flexible remuneration (reward) options
○ Flexible working hours
○ Flexible study/ work arrangements
○ Career break schemes
○ Job sharing
○ Work-from-home arrangements
○ Family leave
○ Part-year work arrangements
● Family-friendly programs are effective in retaining staff in the longer term as they
recognise the interdependence of work and family life, and reduce problems
involved in managing family responsibilities
● Employees are able to leave and later re-enter the workforce, thus reducing
separation, recruitment and training costs for new employees
Legal compliance and corporate social responsibility:

● All employers are required by law to ensure that human resource procedures and
policies comply with existing legislation, including anti-discrimination and sex
discrimination legislation, occupational health and safety, taxation, social justice
legislation, and industrial relations legislation and agreements
● Bullying, sexual harassment and conflicts are the issues behind high levels of staff
stress, absenteeism, turnover and low productivity and morale
● A major focus of maintenance is for human resource managers to minimise the
exposure of the business to risk by implementing a range of proactive and
preventative strategies in health and safety, anti-discrimination and conflict
resolution
● Bullying is common in industries where there are a high number of vulnerable
employers such as apprentices, young staff or migrant workers
● It can be minimised by:
○ Providing information about workplace bullying
○ Inducting and training employees in company policy, procedures to deal
with bullying and consequences of bullying
○ Providing training to increase cultural awareness
○ Promoting a culture that is based on open communication, respect, fairness
and trust
○ Ensuring management is committed to resolving bullying and grievances
○ Having mentoring or buddy systems for new and young employees
○ Having a member of staff, appointed by the staff, to handle complaints and
grievance

3.4 Separation

● the process of employees leaving voluntarily, or through dismissal or retrenchment

processes - may be voluntary or involuntary
● Voluntary separation - resignation, relocation, redundancy or retirement
● Involuntary separation - form of contract expiry, retrenchment or dismissal
● To avoid claims of discrimination and adverse effects of the morale and productivity
of remaining staff, involuntary separation must be managed carefully and in
compliance with legislation, awards and agreements
● Acceptable situations for redundancy would include closure of the workplace site,
completion of the project on which the employee worked, lack of contracts or orders
for work, a downturn in demand from customers or a need to reduce staff due to
financial difficulties in the business
● When determining who will be retrenched length of service, standard of
performance, future potential and whether some staff may be willing to leave
voluntarily must be considered
● Notice and leave entitlements given may comply with legislation and industrial
agreements
● When an employee’s employment is terminated, the employer must provide a written
statement confirming the termination and date of determination
● Most awards and agreements have common provisions relating to termination,
change and redundancy that cover matters including the procedures for
 retrenchment, amount of notice to be given or pay in lieu of notice and severance
pay

Dismissal:

● Summary dismissal is an instant form of dismissal that applies to employees involved in

gross or serious misconduct - theft
● Termination for misconduct must meet the test of being fair and reasonable, given
the circumstances
● Fair Work Australia will determine if these levels have been met or not
● If there is any doubt, payment of notice in lieu will generally avoid an unfair dismissal
claim for serious misconduct
● Dismissal can also be based on poor performance or redundancy due to
organisational restructuring, a downturn in business or technological change making
a job redundant
● Widespread restructuring and managerial policies are major factors contributing to
industrial disputes and unfair dismissal claims
● Employers need to prove that they have followed all the processes required before
dismissing an employer
● In the case of poor performance, businesses are required to:
○ Give employees a written warning about their poor performance over a
period of time
○ Give them advice and support so they have the opportunity to improve
○ Notify employees of the reason for termination and an opportunity to respond
● In the case of redundancy, the employer may be asked to show that:
○ The employee’s job was no longer needed; that the redundancy is genuine
○ There was no appropriate work available elsewhere within the organisation
○ The employee was consulted about alternative redeployment options in the
business

Unfair dismissal:

● Selecting staff for dismissal can be risky and requires awareness of legislation and
industrial agreements
● Documentation of processes undertaken is also required to avoid claims of unfair
dismissal (harsh, unreasonable, unjust)
● Fair Work Australia provides these grounds for unfair dismissal claims for employees
covered by the national system
● A claim can be deemed unfair by FWA if they find that
○ The employee was dismissed
○ The dismissal was harsh, unjust or unreasonable
○ The dismissal was not a case of genuine redundancy’
● Employees are able to claim unfair dismissal if:
○ The business has more than 15 employees, who have been employed for
more than 6 months (inc. casuals)
○ The processes for dismissal have not been carried out correctly
● The claim may be resolved through informal conferences, telephone conferences or
by a formal hearing
 ● Reinstatement will be the remedy for a claim that is upheld, unless it is not in the
interests of either of the parties, in which case compensation may be ordered
● An employer has the right to object to a claim on the basis that it is vexatious or
frivolous, not submitted in an appropriate time frame, not reasonably likely to
succeed, not a case of unfair dismissal or that the person making the claim is not
eligible
● Many businesses have preferred to avoid the risk by hiring casuals and contractors
● Other businesses have tightened their employment contracts - including job
description, probation periods and measurable targets to allow for dismissal of staff if
required
● For many it has been regarded as cheaper and less time consuming to settle the
claim, regardless of whether or not it is valid
● Many have needed to consult specialists in the area of termination to avoid these
problems

4. Strategies in human resource management

strategies in human resource management

● leadership style
● job design – general or specific tasks
● recruitment – internal or external, general or specific skills
● training and development – current or future skills
● performance management – developmental or administrative
● rewards – monetary and non-monetary, individual or group, performance pay
● global – costs, skills, supply
● workplace disputes
○ resolution – negotiation, mediation, grievance procedures, involvement of
courts and tribunals

4.1 Leadership style

● 2009 survey showed:

○ Employees remained concerned that their immediate managers are “all talk
and no action”
○ That the quality of overall management continues to be the “most hated”
aspect of a job
○ Management quality was the biggest employee ‘dislike’ factor- major
influence on employee motivation and retention

Leadership styles:

● Leadership style is the manner and approach in which leaders of a business interact
with staff:
○ Providing directions and instructions
○ Implementing plans and organising staff
○ Motivating staff
 ● The classical authoritative, autocratic (directive) approaches - focus on planning,
organising and controlling
● Autocratic: Managers who make decisions quickly and in many cases without input
from staff characterise an autocratic leadership style.
● Democratic: more consultative approach between managers & workers that
encourages them to be more engaged in the decision-making process (with)
● The behavioural approach - sees management as leading, motivating and
communicating, is most commonly seen in a participative or democratic leadership
style
● The contingency approach - uses the most appropriate approach depending on the
situation and changes in circumstance
● Directive - emphasis on immediate compliance from employees
● Visionary - emphasis on long-term vision and leadership
● Affiliative - emphasis on the creation of harmony
● Participation - emphasis on group consensus and generating new ideas
● Pacesetting - emphasis on accomplishment of tasks to high standards
● Coaching - emphasis on the professional growth of employees
● Under government ownership and the domestic duopoly between TAA and Ansett,
Qantas management adopted a more autocratic leadership style. Qantas
management has total control over decision making and there was very little contact
between workers and top management. In 1991, the domestic aviation industry was
deregulated and in 1995 Qantas was privatised. As a result, Qantas had to change its
leadership style and adopt a more democratic style. → Qantas employees now have
much more input into decision making

4.2 Job design – general or specific tasks

● job design is the number, kind and variety of tasks that a worker is expected to carry
out in the course of performing their job
● Job analysis is an ongoing process which is a detailed analysis of all the tasks,
responsibilities, personal attributes and reporting relationships needed in a position
● Job design (specific tasks) is best represented through the Scientific management
approach developed by Frederick Taylor that identified one best way of doing a job
and that worker skills should be matched to job requirements.
● Job design (general tasks) refers to a greater variety of tasks to be performed by
workers. The main objective of the provision of a wider variety of tasks is to improve
worker satisfaction and productivity
● Employees are more motivated and likely to share ideas if they have autonomy, have
a clear task identity, are well trained and feel competent, and receive feedback that
allows them to be recognised and develop further
● Employees are more motivated when they are able to plan, schedule and determine
how to do a job
● Organisation needs to be a strength for businesses like Qantas. The more organised
and efficient the different components of Qantas are, the better its functions. There is
a wide variety of tasks required in Qantas from baggage handling to flying the
superjumbo A380.
● Well-designed jobs at Qantas can address problems such as work overload,
repetitiveness, shift work and WHS.
 ● Job design is an ongoing process at Qantas aimed at allowing employee input, give
employees a sense of accomplishment, balances static and dynamic work and
provides feedback about their performance

Core elements of a well-designed job:

● Social interaction, opportunity for achievement, resources, flexibility, discretion and

autonomy, variety of tasks, challenge, task, opportunity for ongoing learning and
development

Job design steps:

● Analyse the existing work situation using observation, feedback and organisational
data
● Identify technical, managerial and administrative tasks to be performed
● Identify needs and aspirations of employees for new positions
● Decide how the job will fit in with the work group
● Consult with key stakeholders and modify as required
● Implement changes slowly, provide training, consult and use feedback to modify
● Include procedures for review of progress
● Assess and review progress, discuss with employees

Job design methods:

● Job design is a useful method in developing the knowledge and leadership skills of
employees identified for future promotion in succession planning
● Job rotation - employees move from one job to another on a rotating basis
● Job enlargement - employees are given additional tasks to increase the variety and
challenge involved in a position
● Job enrichment - employees are given more challenging tasks, responsibility,
autonomy and decision-making power
● Semi-autonomous work groups - a multifunctional work group of employees who take
responsibility for a production process, or project, share and manage tasks to achieve
targets without direct supervision
● Cross-functional, team-based matrix structures - employees are part of project teams
for specific projects until each project is completed. They report to functional heads
and project leaders
● Flexible work structures- employees are offered flexible options to meet personal
needs

Specialised job design:

● Involves jobs being broken down into specialist skills areas in order to improve
knowledge and skills, to increase outputs, to reduce errors and labour costs, and to
control quality
 ● It rarely leads to greater challenges or job satisfaction, is repetitive and boring,
employees have little input, there is limited social interaction/ sharing of ideas and
there is no identifiable end product
● It is believed to reduce the ability to absorb knowledge and may even limit
knowledge sharing- management assumes greater control

4.3 Recruitment – internal or external, general or specific skills

● Recruitment - process of locating and attracting the right quantity & quality of staff to
apply for employment vacancies/anticipated vacancies at right cost
● Effective recruitment and selection allows the most appropriate applicant to be
selected
● Recruiting a diverse workforce is becoming more important as globalisation increases,
as it allows for effective communication with a wide customer base, and
demonstrates CSR
● The sources and methods used will depend on the businesses recruitment goals and
policies, conditions of labour market, location, financial/other resources,
specifications of job to be filled - general/specific skills are needed

● A poor selection process leads to increased costs and lower productivity by

increasing:
○ Training costs (if poorly qualified staff are selected)
○ Job dissatisfaction, lower performance, industrial unrest/ labour turnover if the
business or the job does not meet the expectations of candidates selected
○ The absenteeism rate if staff feel inadequate for the job/ business or feel
excessive work pressure
○ Accident or defect rate, fines if inappropriate/ untrained staff are selected
○ Claims of discrimination if the process is not undertaken appropriately
● Main purpose of recruitment at Qantas is to attract a sufficient number of applicants
for different jobs to achieve optimal selection rations, which helps ensure the hiring of
qualified candidates.
● Qantas uses a mix of internal (filing vacancies from inside) and external recruitment
(filing vacancies from outside)

Internal or external recruitment

● Internal recruitment involves filling job vacancies with people from within the business
○ Sources include employees, former applicants and former employers
○ Invited to apply through intranet postings, staff records, promotion lists, word
of mouth, email and other methods
● External recruitment involves filling job vacancies with people from outside the
business
○ Obtained through newspaper advertisements, online advertisements and
referrals through recruitment agencies, company websites, trade unions,
trade shows, management networks, professional associations, schools, radio
and television
● The fastest growing recruitment methods today are via social networking sites and
virtual reality sites, including business videos - LinkedIn
 Internal - advantages Internal - disadvantages

● Motivational for staff- development opportunity ● Can reinforce negative culture

● Builds community and loyalty
● Business only needs to hire at base level
● Employees know the culture, operations-
productivity maintained
● Can lead to a succession of promotion
opportunities in line with succession planning
● Recognises and rewards staff for effort and
achievement
● Cheaper than external recruitment, less chance of
a failure as staff are observed in operation,
strengths and weaknesses are known
● Can lead to rivalry for positions
● Need established framework for training and
merit-based appraisal system
● Often attracts a significant number of
internal applicants, need to manage
unsuccessful applicants who will be
demotivated, can lead to poor working
relationships
● Little value added, no new skill

External - advantages External - disadvantages

● Wider applicant pool ● Risk of unknown staff

● New ideas, perspectives and skills may produce
better solutions to business issues
● Get specific skills needed, save on training
● Dilutes internal politics
● More diversity in employment- equal employment
opportunity
● Builds organisational ‘brand’ through publicity
● Can shape new employee to business
● Lost productivity in initial phases of
orientation and induction phase
● New employee may not fit culture, and may
not be accepted by internal rivals
● Takes a lot of effort and time
● Risk of legal claims

● Many firms consider internal potential candidates first and move to external
recruitment when appropriate internal staff are not available
● The recruitment process needs to be managed very carefully and applicants given a
realistic job preview during the process- to avoid expensive acceptance errors
● Background checking and contact with referees is critical to verify qualifications and
experience provided

General skills

● Focus on attracting staff with general skills, attitudes and behaviours that are a good
cultural fit for their business
○ include flexibility and versatility, social confidence, positive attitude,
motivation, and the ability to work as a team and/or independently
● The job can then be customised to suit the recruits who can be trained and
developed according to the business’s needs
 ● These behavioural ‘soft’ skills, are often critical in building a successful workforce, and
are not really ‘learned’, whereas specific skills can be taught
● Important as many jobs today require individuals to work independently and
undertake many different tasks
● Generally indicate that the employee has a capacity and willingness to learn

Specific skills

● Most businesses are concerned about skill shortages and still need to target
employees with specific skills to fill gaps in their business
● specific skills: highly specialised skills that are required for some jobs within science,
technology and engineering sectors
● Sophisticated software is available to support workforces and recruitment planning
● Many businesses are recruiting overseas or using outsourcing and overseas
recruitment to overcome skills gaps in their businesses, particularly through skilled
migration programs
● There is a significant shortage developing in more highly skilled and professional areas
including specialist project management skills
● Employee poaching is the practice of enticing employees to work for another
business

4.4 Training and development – current or future skills

● Training aims to develop skills, knowledge and attitudes that lead to superior work
performance
● Training is critical as businesses report significant labour market problems, including a
shortage of skilled labour, and a mismatch between what skills are needed and what
is available
● Development is focused on enhancing the skills of the employee to upgrade their
skills in line with the changing and future needs of the business
● Encourages employees to take advantage of opportunities to develop a career with
the business
● The business benefits by retaining the employee’s experience and knowledge of the
business, and by helping it maintain competitiveness
● Businesses need to use skills in the economy, the demand for these skills, and the
changing nature of work and the general pattern of employment
● Qantas has invested more than $275 mil a year in training and development over the
past 5 years.
● Qantas’ training program is planned and is integral to its business strategy and to
maintaining or developing a sustainable competitive advantage
● Ongoing training is critical due to the airline industry’s rapid technological change
and global comp
● Qantas has implemented training programs in new security procedures, international
business class, engineering and maintenance and informational technology
procedures
● Benefits of T&D to Qantas:
● Enhanced organisational productivity because employees can do their jobs more
effectively
 ● Enhanced ability to cope with change because employees have a variety of skills
● A more committed workforce
● Qantas also uses online learning to train its staff -> lead to nationally recognised
qualifications and has enabled Qantas to quickly and economically upgrade and
maintain the skills and knowledge of its workforce

Options needed to be considered by businesses:

● Invest in further in-house training and development

● Recruit staff for specific skills
● Retain experts who retire on part-time basis
● Retain women through flexible work structures such as telecommunicating
● Share staff with other firms, or do work for other firms (insourcing)
● Outsource functions to specialist forms or agencies, even overseas
● Sponsor overseas migrants for areas of major shortages
● Build networks or alliances with other firms with specialist skills or skills needed in the
future

4.5 Performance management – developmental or administrative

● Performance management is a systematic process of evaluating and managing

employee performance in order to achieve the best outcomes for a business
● Two objectives:
○ Evaluating an individual's performance
○ Using that information to develop the individual
● Performance appraisal and management systems can be designed to meet two
purposes for a business: developmental and administrative
● Qantas managers are appraised -> that is their performance is assessed in a formal
and systematic way, measured against factors like job knowledge, quality, leadership
abilities etc.
● Qantas uses it as a tool to encourage strong performers to maintain their high level of
performance and to motivate poorer performers to do better
● The objectives of performance management at Qantas are:
○ To provide a rational basis for pay and promotion decisions
○ To provide individual feedback to aid performance improvement

Development:

● This model of performance management is focused on using data to develop the

individual skills and abilities of employees, so they improve their effectiveness in their
roles, overcome weaknesses, and are prepared for promotion

Administrative:

● This model of performance management provides information, often following an

annual appraisal, which can be used by management for planning in human
resource functions such as training, development, rewards, pay levels, benefits and
performance improvements

Value of performance management:

 ● Assess legal compliance
● Justify staffing decisions
● Identify training and development needs
● Provide feedback and recognition
● Assess performance against organisational standards
● Identify opportunities for productivity improvement

Benefits of effective performance management

Developmental Benefits for business Administrative Benefits for individual

● Assists with human resource planning ● Higher productivity

● Can plan to overcome gaps or weaknesses
found in performance
● Shows the effectiveness of current selection
processes and whether staff recruited match
the cultural fit and skills required for the
organisation
● Identifies training and development or legal
compliance needed
● Evaluates rewards and benefits programs
● Communicates expectations, helps build trust,
promotes long-term organisational
development
● Helps identify, motivate and retain talented
staff for leadership succession
● Identifies and documents poor performance,
and links it with training and improvement
strategies
● Helps build best practice culture
● Better financial performance
● Comparison of contribution to organisation and
performance against agreed standards
● Helps assess rewards and benefits linked to
performance
● Builds self-efficacy as contributions recognised-
important in motivation and retention
● Identifies strengths and weaknesses, creating
opportunities for training and development,
coaching or mentoring
● Creates opportunity for employee to provide
feedback
● Initiative recognised and rewarded
● Fosters promotion on merit
● Employee focus is aligned with organisational
strategy

4.6 Rewards – monetary and non-monetary, individual or group, performance pay

● A well-planned reward system is a key strategy in attracting, motivating and retaining

employees
● A reward system can reinforce strategies to facilitate change or support desirable
corporate values, such as a focus on the customer
● monetary rewards: rewards reflected in pay or having financial value
● non-monetary rewards: rewards that do not have a financial value - social activities
or retirement planning

Monetary and non-monetary rewards

● Rewards can be monetary, non-monetary, intrinsic or extrinsic

● Rewards are to be distinguished from benefits, which are available to all members of
staff
● Reward systems are also increasingly linked to performance management through
enterprise bargaining and individual contracts
● Intrinsic rewards are generally non-monetary and can come from the job or tasks
itself, or the work environment - remuneration
 ● Extrinsic rewards can be both monetary and non-monetary and can be direct
(wages/ incentives) or indirect (fringe benefits such as child care or car)
● Monetary rewards can be direct (cash) or indirect (benefits)
● Non monetary rewards can be job or environment
● Monetary rewards → wages and salaries, performance based pay (particularly senior
managers), cash bonus to each eligible staff member in recognition of their
contribution to Qantas’ record profit results, entitlements
● Non-monetary → interesting and challenging work, promotion, safe and healthy
environment

Individual or group rewards

● Rewards are often related to individual performance; however, this can lead to
conflict and rivalry if not managed effectively
● Increasing use of group- and team-based structures have increased the need for
cooperation and made it difficult to distinguish performance of individuals within
teams
● Many tools can be used by the human resource manager in developing a reward
system - eg. reward table/grid/matrix
● Key issues to consider in designing a reward and benefits system in terms of the
business include:
○ Business strategies
○ Economic conditions - supply and demand for labour and skills shortages
○ Organisational objectives of rewards
○ Rewards and benefits of competitors
○ Relevant awards and agreements, minimum employment standards
○ Union power
○ Profitability/ viability of the business
● Key issues to consider in designing a reward and benefits system for individual
employees are:
○ Performance related - incentive plans for performance above standards or
criteria, bonuses, piece rates, commission, production- related incentives
○ Job related - role and level of responsibility, scope of supervision, base pay,
interpersonal skills, knowledge and skills, experience, value to the company
○ Other individual considerations - group incentives, the employee’s value,
specific job conditions and their individual bargaining power
● The reward system should aim to motivate staff and be equitable, clearly
communicated, defensible, relevant, cost effective and integrated with corporate
strategy
● It must also be simple to understand and administer, and consistently applied to all
employees

4.7 Global – costs, skills, supply

● Globalisation of business, as well as technological developments in the internet,

human resource application and telecommunications, has significantly increased the
competition faced by any business
● These advances have also increased the complexity of managing human resources
● Global workers can be used to fill shortages in the availability of domestic workers
 ● COSTS: costs to hire tend to be much lower in some overseas markets which have
lower wages and higher unemployment. The quality of workers, however, will also
often be lower than AUS
○ Also, a negative social/publicity cost associated with moving jobs overseas;
consumers may choose to support competitors with local employees
● SKILLS: Australia has a relatively small population and faces skills shortages
○ Global HR supply can fill these skills shortages. HR managers need to be
careful however, as overseas qualifications may not have as high a standard
as in Australia
● SUPPLY: Using the supply of global workers opens a number and range of workers,
greater than availability domestically
● A business planning to expand overseas needs to consider whether it wishes to use a
polycentric, ethnocentric or geocentric staffing approach
● A polycentric staffing approach uses host country staffing with parent country staff in
corporate management at its headquarters
○ Helps company access good marker knowledge, cost efficient, satisfies local
pressure for employment opportunities
○ May limit management experience for host-country staff
● A geocentric staffing approach uses the staff with the most appropriate skills for a
particular role and location, and builds a pool of managers with global experience
○ Complex and expensive policy due to the local employment regulations,
relocation and retraining costs
● An ethnocentric approach uses parent-country staff in its organisation
○ Limit its ability to interact with customers and learn from overseas markets
● Compliance with overseas labour market regulations is critical to avoid difficulties with
local governments and disruption to business
● Cultural awareness and language training for all staff need to be implemented to
foster effective communication and positive relationships between employees
● Qantas’ workforce is made up of 99 nationalities, speaking 51 different languages
● Uses a polycentric and ethnocentric approach to staffing -> tries to hire host country
nationals (HCNs) instead of transferring its domestic staff to work in foreign operations.
This approach has 2 advs:
- HCNs already understand local laws, culture, the state of the economy and
language
- Avoids extra expenses
● Disadv – HCNs may need to be trained to become familiar with the Qantas business’
culture and practices
● They have also outsourced some suctions such as IT, maintenance and call centre
operations to reduce labour costs

4.8 Workplace disputes

– Resolution – negotiation, mediation, grievance procedures, involvement of courts and

tribunals

● Disputes are conflicts, disagreements or dissatisfaction between individuals and/or

groups
● Stakeholders often have conflicting interests - leading to disputes
● Workplace conflicts also lead to other problems in the workplace - higher levels of
absenteeism, low productivity, legal claims and high staff turnover, which may be
even more costly in the long run
● An industrial dispute is a disagreement over an issue between an employer and its
employees, which results in employees ceasing work
● Strikes refer to situations in which workers withdraw their labour
○ Strikes are the most overt form of industrial action and aim to attract publicity
and support for the employee’s case
● Lockouts occur when employers close the entrance to a workplace and refuse
admission to the workers
○ Lockouts have been used frequently in long disputes in manufacturing to
promote concession bargaining, to push employees to sign individual
agreements, and in response to strike actions
● Each withdrawal or refusal is made to enforce a demand, to resist a demand or to
express a grievance
● Legal claims for matters - discrimination, harassment, bullying not included in these
disputes
● Some employers seek to minimise conflict, others stifle it through tough tactics, while
other maange more collaboratively through negotiation with staff and unions
● The major causes of disputes recognised by the ABS are disputes relating to
negotiation of awards and enterprise agreements
● These issues typically include disputes about:
○ Remuneration - wages, allowances, entitlements and superannuation
○ Employment conditions - working hours, leave, benefits, general employment
conditions
○ Job security issues - retrenchment of employees, downsizing, restricting, use of
contractors, outsourcing, re-classification of the workforce, industry-related
matters
● Matters outside agreements also cause disputes:
○ Health and safety - physical working conditions, safety matters, compensation
provisions, protective clothing and equipment, uncomfortable working
conditions, employee amenities, equipment conditions and overly strenuous
physical tasks
○ Managerial policy- decisions and policies of line managers, disciplinary
matters, suspensions, discriminations, decisions that impact upon work and
family issues, production limits or quotas, principles of promotion and other
work practices
○ Union issues - employer approaches to the union, inter-union and intra-union
disputes, sympathy stoppages in support of employees in another industry,
and recognition of union activities
○ Political or social protests
● 70% of Qantas workers are party to an EBA. Qantas deals with 16 unions and is a party
to 33 awards and 44 union enterprise agreements
● Resolution – negotiation, mediation, grievance procedures, involvement of courts
and tribunals
● Qantas has workplace dispute strategies in place to overcome disputes with minimal
disruption. This hasn’t always worked to plan particularly in 2011-2913, however over
 the last 2 years workplace disputes have been dealt with much more amicably and
successfully for Qantas

Resolution of disputes

● key stakeholders involved in resolving disputes: employees, employers, govts, trade

unions, employer associations, courts and industrial tribunals
● The Fair Work Commission describes dispute resolution as the processes whereby
disputes are brought to an end
● Before either party may take protected industrial action, there must also be proof
that both parties have attempted to bargain in good faith

Negotiation

● A method of resolving disputes when discussions between the parties result in a

compromise and a formal or informal agreement
● This process can benefit the parties involved by increasing their knowledge of
company policy, business’s objectives, workers’ concerns and issues involved in
implementing change

Mediation

● Is the confidential discussion of issues in a non-threatening environment, in the

presence of a neutral, objective third party
● The third party may be independent and agreed on by key parties in a dispute, or a
representative from a business, tribunal or government agency such as FWA, AHRC,
or the Anti-discrimination Board of NSW
● allows the parties to become empowered by resolving their own disputes, and
reduces risk of disputes escalating & leading to expensive legal costs or industrial
action

Grievance procedures

● formal procedures, generally written into an award or agreement, that state agreed
processes to resolve disputes in the workplace
● useful strategy in reducing risk of an issue rapidly becoming a serious dispute
● Most businesses establish a formal process, now required in modern awards and other
agreements, by which issues can be handled
● Effective grievance procedures require a full description of the complaint to be
made by the employees with the complaint
● The person the grievance is made against should be given details of the allegation
and an opportunity to provide their view

Involvement of courts and tribunals

● Industrial disputes that escalate to the level of courts and tribunals are most likely to
occur when disputes have passed their nominal expiry date, bargaining has
commenced towards a new agreement, and negotiations have failed
 ● Employees and employers then enter a period where industrial action may be
protected until a new agreement is developed
● May require conciliation
○ process where a third party is involved in helping two other parties reach and
agreement
○ FWA will appoint a conciliation member to hear both sides of dispute
○ conciliation member calls a conference and attempts to help sides reach an
agreement
○ The member may require all parties to continue negotiations on some
aspects, reduce the ambit of the dispute or develop other strategies to
resolve the dispute and then report back for another conference
● If conciliation fails the matter may be referred to arbitration, if it is in the award or
agreement, or if the parties agree
○ Arbitration is the process where a third party hears both sides of a dispute and
makes a legally binding decision to resolve the dispute
○ A member or a panel of members hears both sides of the dispute in a more
formal, court-like setting
○ A judgement is handed down based on the merits of the evidence that
becomes legally binding on all parties
○ Orders may end a restrictive work practice or behaviour, or require a secret
ballot of union members if strike action is proposed
○ FWA may also order that staff be reinstated or that the parties return to the
tribunal at a later date for further negotiations
● Common law action:
○ open to any party involved in or affected by industrial action
○ Parties may make direct claims for damages caused by parties taking the
action, or for breach of contract resulting from such action
○ Option not available if action is a protected during bargaining period
○ Common law action in civil courts is also available to those on individual
common law contracts of employment disputing matters not covered in
legislation or relevant awards

5. Effectiveness of human resource management

Role of HR manager is to decide how the employment relationship will be best managed so
it’s cost-effective, achieves the business’s goals and contributes to the ‘bottom line’

effectiveness of human resource management

● indicators
○ corporate culture
○ benchmarking key variables
○ changes in staff turnover
○ absenteeism
○ accidents
○ levels of disputation
○ worker satisfaction

5.1 Indicators:
 ● performance measures used to evaluate organisational/individual effectiveness - eg.
dollar sales achieved per employee per year.
● can be compared to those of best practice businesses or internal divisions to
determine strengths and weaknesses - known as benchmarking
● Benchmarking is a process in which indicators are used to compare business
performance between internal sections of a business or between businesses
● are gathered and collated in HR audits

Human resources effectiveness indicators (functional area - indicators):

● Human resources planning - number of staff/ budgeted staff

● Recruitment and selection - application rejection, acceptance rates for job offers,
recruitment costs, vacancies filled within target time
● Training and development - training days/ hours per employee, training time/
budgeted time, cost of training, test outcomes, succession planning rate, promotion
rate
● Employee rewards and benefits - costs of rewards and benefits, labour turnover rates,
absence rates/ total hours worked
● Industrial relations- grievance records, industrial disputes, work stoppages, time lost
through disputes
● Performance appraisal - appraisals undertaken, goals achieved or not achieved
● Separation/ termination - separation rates, dismissal rates, resignation rates
● General HRM effectiveness - labour costs/ sales and gross profit per employee,
growth in market share

Using indicators for improvement:

● Communicating and educating employees about company vision, strategy and

expectations at an operational level
● Planning and setting goals for employees that are translated into meaningful tasks,
and ensuring staff known how to achieve them
● Developing employees effectively to improve performance
● Evaluating performance, providing coaching and feedback in formal reviews
● Linking rewards to performance measures
● Providing organisational feedback for ongoing planning purposes

Corporate culture

● Most businesses successful in the long term maintain a balance between concern for
success (expansion or profit) and regard for their employees
● Better work and employment relationships begin with an understanding of how to
develop a positive corporate (business/ workplace) culture
● A corporate (business/ workplace) culture: values, ideas, expectations and beliefs
shared by members of the business
● Without dedicated, trained, motivated employees, best organised plans will never be
achieved
 ● HR covers all types of interactions among people: conflicts, cooperative efforts and
interpersonal and group relationships
● The indicators that reveal a workplace has a poor corporate culture include
○ High staff turnover
○ Poor customer service
○ High levels of absenteeism
○ Accidents
○ Disputes and internal conflicts
● These problems are reflected in poor business performance, lower sales, lower profits
than competitors and ultimately the ‘bottom line’
● Effective workplace relationships depend heavily on quality of a business’s
communications system and participation of employees in decision making
● Strategies that focus on building trust and direct communication between people, &
value their ideas are critical in building a positive workplace culture
● Steve Jobs built a corporate culture around being revolutionaries and rebels, Apple is
known for using T-shirts, parties and celebrations to build cohesion, a collaborative
workforce with teams, innovative working conditions and a place where employees
ideas are valued

Benchmarking key variables

● Benchmarking may follow a more comprehensive HR audit or may be undertaken

using basic indicators
● The purpose is to compare a business’s performance in specific areas against other
similar businesses or divisions, or against ‘best practice’ businesses
● The aim is then to initiate changes to foster improvement
● Benchmarking is commonly undertaken in a number of ways:
○ Informal benchmarking includes any strategies (eg. networking) through
informal discussions with colleagues in other businesses, undertaking visits to
other businesses, researching best practice online and attending conferences
○ Performance benchmarking involves comparing the performance levels of a
process/ activity with other businesses
○ Best practice benchmarking involves comparing performance levels with
those of another best practise business in specific areas using a structured
process to gain skills and knowledge and to modify organisational processes
○ Balance scorecard benchmarking is used for measuring whether the activities
of a business are meeting its objectives established in the strategic plan. It
benchmarks key performance variables with targets aligned with the strategic
plan
● The approach used for benchmarking needs to be chosen to suitability meet
business’s needs & resources - can be a very costly & time-consuming process
● may provide useful info about business’s HR, but may focus excessively on costs rather
than what is actually being achieved or may be achieved
● most important info is the long-term performance of those recruited and the
development needs of talented staff with future potential in the business
● Qantas benchmarks the following indicators internally (previous year) or externally
(different organisations typically in their industry)
Human resource audits:

● can be used to systematically analyse and evaluate HR activities and their

effectiveness
● This can be performance in a number of ways:
○ Performance of one division or the business itself against another is
benchmarked and compared to industry ‘best practice’ to determine areas
of weakness and for improvement
○ An outside consultant conducts research to analyse problems and suggest
solutions
○ Key performance variables are evaluated by management
○ A legal compliance analysis may be undertaken to determine areas of
variance from laws and company policies. High levels of fines, workers’
compensation claims and unfair dismissal claims would indicate this type of
audit was required
○ A management by objectives approach can be used to determine areas of
poor performance against targets established

Quantitative measures:

● should be able to demonstrate the actual effect of indicators in economic terms - in

terms of costs and profits
● Key variables often include:
○ Variances in labour budgets
○ Time lost/ costs on injuries and sickness
○ Performance appraisals completed compared with targets
○ Percentage of goals achieved
○ Levels of labour turnover, particularly with those initiated with employees
● Benchmarking of such variables is undertaken frequently by businesses seeking to
operate at world’s best practice, or in accordance with standards in quality
assurance programs

Qualitative evaluation:

● Involved detailed feedback & research on key issues - allow judgements to be made
about changes in behaviour or quality of service provided
● Benchmarking major variables is essential in planning for continuous improvement
○ High or increasing absenteeism and labour turnover rates are indicators of
problems including boredom, poor relationships, and lack of training or
opportunities to develop
○ Analysis of industrial disputes and the issues raised may provide useful
feedback about issues such as health and safety, rewards and benefits, and
relationships in the workplace
○ Feedback from performance appraisals provides information useful in
evaluating and planning training, recruitment and selection, development
rewards and separation processes
○ Feedback from supervisors, consultative committees, customers and
employees in organisational surveys provides useful insight into workers
satisfaction, empowerment and customer service
 ● Research by external businesses and institutions also provide valuable information for
analysis and comparison
● Businesses need to consider domestic, international trends & management practices
when planning strategies for improving the effectiveness of HR management and
business performance

Changes in staff turnover

● separation of employees from an employer both voluntary and involuntary, through

dismissal/retrenchment. Often shown as a % of total staff numbers
● Staff turnover in Aus averages around 12-15% per year, & fluctuates with the
economic cycle - around ½ being voluntary → resignation and retirement
● In assessing the significance of turnover, businesses should benchmark their turnover
against other businesses in industry, determine type of staff leaving & reason (may not
be negative)
● cost of high labour turnover are great and involve high costs through payouts for
entitlements, hiring, inducting and training new staff
● Productivity and service quality, corporate skills and knowledge are lost, particularly is
there has been poor succession planning
● Lack of a focused workplace culture in such an environment reduces employee
commitment and loyalty
● Some level of turnover is considered healthy in businesses, as new ideas are brought
in and often stimulate innovation in work practices
● However, a major change or a significant increase in turnover is a major warning sign
● Staff turnover has increased from 4.6% in 2014 to 4.7% in 2015, however these are both
quite an improvement on the 2013 figure of 5.5% and the 2009 figure of 8.7%.

Absenteeism

● workers who neglect to turn up for work when they were scheduled to do so
● High levels of absenteeism and/or lateness may indicate that workers are dissatisfied
or conflict within the workplace
● In terms of lost revenue, such unofficial expressions of conflict may be even more
costly to firms than official and overt forms of conflict
● Firms need to have much higher staffing levels to cope with high absentee levels to
cope with high absentee levels
● Therefore, revenue is lost as work is disrupted and can lead to lower productivity and
higher labour costs
● Qantas absenteeism rates decreased in 2013 and 2014 – 9.1 and 9 days respectively
(from 9.6 days in 2012). This shows HRM is effective and reflects employee health and
wellbeing, the level of staff engagement and productivity.

Accidents

● Around 5.3% of Australia’s 12 million employees experience a work-related injury or

illness each year
● According to the Safe Work Australia, in 2020 there were 114 435 workers’
compensation claims for serious work-related injuries or illnesses involving one week or
more off work, a permanent incapacity or fatality
 ● Most common types of workplace fatalities are associated with road crashes, while
falls from a height, or being hit by falling or moving objects are also common causes
of workplace death.
● businesses need to adopt a systematic, legally compliant approach to manage WHS
● WHS indicators are benchmarked internationally using a number of indicators
including:
○ Lost Time Injury Frequency Rates. A lost-time
injury is an event that results in a fatality,
permanent disability or time of one day/shift
or more lost from work. The LTIFR is the
number of lost-time injuries per million hours
worked
○ Safe Work Australia rates based on
accepted workers’ compensation claims
that involved the loss of one or more working weeks (termed serious claims).
Claims for shorter periods are not counted in this rate
● Best practice businesses:
○ Have regular safety audits and comprehensive safety programs, and use data
to improve
○ Build a culture of safety. They communicate effectively about health and
safety using visible policy statements, safety signs and reminders
○ Provide careful induction and regular ongoing training for staff to ensure they
are aware of safety rules and prepared for emergencies
○ Consult employees and health and safety personnel on the implications of
changes in the workplace
● Such businesses save on compensation claims, absenteeism, lost work time,
replacement costs for damaged equipment & loss of morale in workplace
● Customers appreciate effort businesses make in producing a safer product or service;
therefore, such businesses also improve their image to their customers
● Qantas uses 2 indicators – TRIFR (total recordable injury frequency rate) and LWCFR
(lost work case frequency rate). These have both increased in 2015, indicating a
deterioration in Qantas’ injury prevention performance.

Levels of disputation

● There are many, often costly, overt and covert manifestations of disputes that
employers need to monitor and evaluate
● Qantas has been plagued by recent industrial issues (2011 – 2013) with engineers,
baggage handlers, flight attendants and even pilots. This historical high number of
disputes has affected the reliability of the network and harmed Qantas’ brand.
However, 2013 – 2015 has seen negotiations between Qantas and unions become
more amicable, with 18 EBAs (Enterprise Bargaining Agreements) being agreed upon
with little or no disputation

Types of industrial conflict:

● Overt manifestations:
○ By employees- pickets, strikes, stop-work meetings, work bans and boycotts,
and work-to-rule
 ○ By management- lockouts, stand-downs, dismissals, retrenchments
● Covert manifestations:
○ By employees- absenteeism, high labour turnover rates, theft and sabotage,
higher defect rates, reduced productivity, lack of cooperation
○ By management- discrimination, harassment, lack of cooperation, exclusion
from decision making

Indicators of industrial disputation:

● Although strikes and lockouts are officially recorded indicators of industrial disputes,
there are a range of other forms used in the workplace
○ Work bans - a ban/boycott is a refusal to work overtime, handle a product,
piece of equipment, process, or even a refusal to work with particular
individuals. A green ban - refusal to carry out work considered harmful to
environment/natural resources (eg. forests)
○ Work-to-rule - this action occurs when employees refuse to perform any duties
additional to the work they normally are required to perform. Most common
as a form of industrial action in community service
○ Go slow - in this action, employees work at a slower rate than normal, causing
customer complaints, and an expensive backlog of work to be caught up at
a later date
○ Sabotage - vandalism, cyber attacks, and internal theft are not uncommon,
but are rarely discussed publicly by firms. They may involve employees taking
action to harm or destroy the image of a firm, for example by contaminating
food or disrupting production
● Employees should be concerned if there are a number of formal grievances
reported, as they are an indicator of poor quality relationships in the workplace and
can be very damaging if they attract media attention or move through the legal
system
● Ongoing grievances are likely to be reflected in higher levels of staff turnover and/or
industrial disputes
● Apart from negotiations related to the making of awards and agreements,
managerial policy is one of the most common causes of disputes
● Decisions and policies of line managers, organisational restructuring, discrimination,
decisions that impact on work and family life, and changing work practices such as
the use of outsourcing and contracts
● these are more commonly reflected in grievances, fines, bands, accidents, poor
customer service, declining productivity and higher absenteeism & labour turnover
● more common in large businesses where relationships and communication between
employees and management is impersonal and the scope for mistrust and
misunderstanding is greater

Worker satisfaction

● key factor in employee commitment, job performance and staff turnover

● surveys are useful in helping employers measure & understand how their staff feel
about their work, their management and the culture of an organisation
● Such surveys can be used to improve management style and processes, benefits and
rewards systems, the physical working environment, employee relationships and other
employee needs
● Employee feedback needs to be confidential and analysed by professionals qualified
to interpret such feedback
● Managers need to track, communicate and act upon the results
● Pay is not significant in employee satisfaction, unless there are significant pay
differentials in the workplace
● Effective leadership is an important influence on employee satisfaction, particularly
when employees feel recognised and encouraged, where management is
transparent, promotion is merit based and communication is honest and respectful
● it is improved by matching purpose of business with skills & cultural fit of employee
● Employees who indicate emotional exhaustion with the job, particularly if it impacts
on family life, are often less satisfied with work
● Employees value a family-friendly culture, adequate breaks during the day, effective
resourcing to do their job, rewards for effort and performance, opportunities for
sabbaticals or ‘leave’ options, and workplace wellbeing strategies such as the gym
● Ongoing training and mentoring or coaching is more effective than pay differentials
in fostering employee commitment
● It’s the holistic approach to employees, which values and cares for them, that is the
most effective in building commitment, satisfaction and retaining effective
employees
● Qantas sees worker satisfaction as being important as it directly affects motivation
and productivity. It is difficult to measure.
● Qantas uses measures such as surveys, invitations for employee feedback and
external consultants.