Business Studies Task 3: Australia Post

Christian Sinclair 12BS1 09/06/21

Evaluate the effectiveness of human resource management for one business and recommend
appropriate alternative strategies.

Executive Summary:

Australia Post is an Australian government enterprise founded in 1809 that provides postal
services within Australia, collecting, processing, and delivering letters and packages to both
Australian and international communities within the service industry (Australia Post, 2021).

In 2018, former Australia Post CEO Christine Holgate authorised the rewarding of executives
with Cartier watches as a result of securing a lucrative deal, showcasing her largely
democratic leadership style through a monetary, individual-rewards system. This contributed
to her separation from the business as a result of substandard corporate culture and worker
satisfaction, encouraging recruitment and a non-monetary, group-rewards system to improve
unsatisfactory indicators.

Part 1: Evaluate the Effectiveness of Human Resource Management for

one Business

Human resource management refers to the business function regarding the total relationship
between an employer and employee. The human resource management strategies utilized by
Australia Post include leadership style and rewards. Leadership style refers to the manner and
approach of providing direction within the business (Davis, 1993). Rewards refers to the
provision of rewards to staff in order to motivate, attract, and retain employees.
Corporate Culture:

Corporate culture refers to the values, ideas, expectations, and beliefs shared by a business
which are vital in the establishment of effective and positive working relationships.

Within the corporate management of Australia Post, negative issues regarding corporate
culture have risen as a result of the poor leadership style displayed by former CEO, Christine
Holgate. Through her largely democratic leadership style, employees within the business
have been given a large amount of participation within important decision-making tasks,
often contributing to the poor decisions made by Holgate, outlining flaws within her
democratic style of leadership. This is a direct causation of issues regarding Australia Post’s
corporate culture, as stated by Australia Post Chair Lucio Di Bartolomeo, the “purchase of
the watches was inconsistent, with obligation imposed by public expectation” (ABC News,
2021, 00:14), revealing the provision of voice to employees within the business, leading the
decisions made by management to be influenced to serve the wants of the employees and the
public, rather than business as a whole. Therefore, through the further words of Di
Bartolomeo, Holgate’s rewarding of executives with Cartier watches was “an error of
judgement made in good faith by an otherwise highly effective CEO” (Hitch & Borys, 2021),
showcasing ineffective, poor decision-making undergone by Holgate as a result of her
predominantly democratic leadership style.

Worker Satisfaction:

Worker satisfaction refers to the contentment of employees within their business and is a key
factor in commitment, job performance, and staff turnover.

Within the human resource management of Australia Post, the satisfaction of employees has
decreased as a result of the businesses handling of the Cartier watch situation. The increased
dissatisfaction among Australia Post employees has risen due to an unethical monetary
rewards system, in which former CEO Christine Holgate handed out Cartier watches to a
group of executives as a reward. This challenges the ethical rewards system of government-
owned business enterprises, as the purchasing of luxury goods by such businesses as
monetary rewards can be perceived by society as unethical work practice (Hoskins, 2014).,
Through Australia Post’s handling of the situation, the contentment of Holgate subsequently
decreased, stating that the chair Lucio Di Bartolomeo treated her “like a criminal”, and that
she was “bullied” out of her job and “humiliated in parliament” (Karp, 2021). Therefore,
through Holgate’s implementation of an unethical monetary rewards system, employees
including herself have experienced increased dissatisfaction, leading to her eventual
separation and poor treatment by Australia Post.
Part 2: Recommend Two Alternate Human Resource Strategies the
Business Could Implement to Improve and/or Compliment the Indicators

Recruitment:

Recruitment refers to the filling of job vacancies within a business with individuals from
either internal or external sources.

Due to Australia Post’s corporate culture issues as a result of poor leadership style, the
external recruitment of new employees with specific skills in replacement of Holgate is
highly recommended to improve corporate culture. Through external recruiting methods such
as advertising and selection, Australia Post will be able to acquire the specific autocratic
skills required for the CEO position, allowing new ideas and skills to be introduced,
subsequently improving corporate culture. The implementation of this will further allow the
increased efficiency of decision-making within the business, as final decisions will be made
by the CEO in thought of the entire business, not influenced by employees or public
expectation. According to the Australian Financial Review, the external recruitment process
is underway with acting CEO Rodney Boys firming to replace Holgate with external options
such as “former SBS boss and Telstra executive Michael Ebeid”, and “Former AusPost
executive and Myer boss Richard Umbers” (Durkin, 2021). Therefore, through an external
recruitment process, Australia Post will subsequently improve corporate culture through
renewed specific skills, and the application of an autocratic leadership style.

Rewards – Non-Monetary Group Rewards

Rewards refer to the provision of rewards to employees as a result of good performance in

order to attract, motivate, and retain staff.

Within the human resource management of Australia Post, worker satisfaction can be
improved through a non-monetary, group-focused rewards system. This is because,
implementing a non-monetary rewards system will eradicate any ethical issues, as
government-owned enterprises will not be utilizing excess money in employee rewards.
Furthermore, a group-focused rewards scheme will encourage teamwork within the
workplace, increasing motivation to work for a collective reward, and applying a greater
sense of satisfaction when the reward is achieved. This allows for stronger relationships to be
formed within the business, subsequently improving communication, and aiding in the
decision-making process aimed at the business’ entirety. Additionally, employee confidence
within the Australia Post board is imperative as Holgate states, “for all those employees, they
must have confidence in the board” (Raphael, 2021), outlining the importance of confidence,
which can be increased as a result of ethical, non-monetary group rewarding due to its ability
to encourage both teamwork and a fair, safe workplace environment. Therefore, through the
recommendation of a non-monetary, group-rewards system, worker satisfaction within
Australia Post can be increased through encouraged teamwork and the building of strong
workplace relationships.
Conclusion:

Therefore, the corporate culture and worker satisfaction issues faced by Australia Post due to
the unethical rewarding of watches to employees by former CEO Christine Holgate can be
improved through the implementation of specific recruitment, as well as a non-monetary,
group-rewards system enhancing their effectiveness of human resource management.

Annotated Media Files:

1. Karp, P. (2021). Christine Holgate alleges Australia Post chair lied to parliament in wake of
Cartier watches saga. The Guardian. Retrieved 7 June 2021, from
https://www.theguardian.com/business/2021/apr/06/christine-holgate-alleges-australia-
post-chair-lied-to-parliament-in-wake-of-cartier-watches-saga.

‘Christine Holgate alleges Australia Post chair lied to parliament in wake of

Title of article
Source of article
Accessed from
Date article was
published
Currency of the article
Relevance of the article
Authority of the article
Accuracy of the article
Purpose of the article
Cartier watches saga’
Online newspaper
https://www.theguardian.com/business/2021/apr/06/christine-
holgate-alleges-australia-post-chair-lied-to-parliament-in-wake-of-
cartier-watches-saga
06/04/2021
06/04/2021, Has not been updated
Outlines lying claims against chair by Christine Holgate
Written by Paul Karp, reporter for Guardian Australia, therefore reliable
Accurate as information is from Senate inquiry hearing, stating direct
quotes
To understand claims made by Holgate amidst watch saga. Unbiased as
information is from third party source.
 2. Hitch, G., & Borys, S. (2021). Holgate calls for Aus Post chair to be sacked over Cartier watch
scandal, chair says he won't resign. Abc.net.au. Retrieved 7 June 2021, from
https://www.abc.net.au/news/2021-04-13/christine-holgate-cartier-watches-scandal-
committee-hearing/100064972.

Title of article
Source of article
Accessed from
Date article was
published
Currency of the article
Relevance of the article
Authority of the article
Accuracy of the article
Purpose of the article
‘Christine Holgate says she was bullied out of role as CEO of Australia
Post after Cartier watch controversy’
Online newspaper
https://www.abc.net.au/news/2021-04-13/christine-holgate-cartier-
watches-scandal-committee-hearing/100064972
13/04/2021
13/04/2021, Has not been updated
Explains harassment claims made by Christine Holgate
Written by Georgia Hitch and Stephanie Borys, Political reporters in
Canberra
Accurate as information is from Senate inquiry hearing, using direct
quotes
To outline ‘bullying’ claims made by Holgate. Unbiased as not directly
influenced by Australia Post

3. Durkin, P. (2021). New AusPost, Nine CEOs down to wire. Australian Financial Review.
Retrieved 7 June 2021, from https://www.afr.com/work-and-careers/leaders/new-auspost-
nine-ceos-down-to-wire-20210202-p56yot.

Title of article New AusPost, Nine CEOs down to wire

Source of article
Accessed from
Date article was
published
Currency of the article
Relevance of the article
Authority of the article
Accuracy of the article
Purpose of the article
Online news article
https://www.afr.com/work-and-careers/leaders/new-auspost-nine-
ceos-down-to-wire-20210202-p56yot
04/02/2021
04/02/2021, Has not been updated
Highlights search for new CEO’s by Australia Post and Nine
Written by Patrick Durkin, BOSS deputy editor
Accurate as information is from interviews with Rodney Boys, acting CEO
of Australia Post
Make public aware of Australia Post’s search for new CEO. May hold bias
as from interview with Boys
Bibliography:

- Newstrom, J.W., Davis, K. (1993). Organizational Behavior: Human Behavior at Work. New
York: McGraw-Hill.
- About us. Auspost.com.au. (2021). Retrieved 7 June 2021, from
https://auspost.com.au/about-us.
- Kelchner, L. (2021). Efficiency Improvement for Team Members. Small Business - Chron.com.
Retrieved 7 June 2021, from https://smallbusiness.chron.com/efficiency-improvement-
team-members-33678.html.
- Raphael, A. (2021). Inquiry recommends Prime Minister apologise to Christine Holgate.
Theaustralian.com.au. Retrieved 7 June 2021, from
https://www.theaustralian.com.au/breaking-news/senate-inquiry-recommends-prime-
minister-apologise-to-former-australia-post-chief-executive-christine-holgate/news-story/
ad781eccd5b4014f8e4f341438b4ac5e.
- Hoskins, T. (2021). Luxury brands: higher standards or just a higher mark-up?. The Guardian.
Retrieved 7 June 2021, from
https://www.theguardian.com/sustainable-business/2014/dec/10/luxury-brands-behind-
gloss-same-dirt-ethics-production.
- Smith, F. (2021). Can you incentivise ethical behaviour? - The Ethics Centre. The Ethics
Centre. Retrieved 7 June 2021, from https://ethics.org.au/can-you-incentivise-ethical-
behaviour/.
- Towler, A. (2021). Autocratic leadership: What it is and how it impacts individual and
organizational performance | CQ Net - Management skills for everyone. CQ Net -
Management skills for everyone!. Retrieved 7 June 2021, from
https://www.ckju.net/en/dossier/autocratic-leadership-what-it-and-how-it-impacts-
individual-and-organizational-performance.