2A Human Resource Management

HUMAN RESOURCE MANAGEMENT

Is the organisation of employees’ roles, pay, and working conditions.
Effect of successfully managing employees Effect on business Business objective
achieved
- Job satisfaction so number of employees - Cost of recruiting and training
leaving the business is likely to decrease. replacement employees for leaving staff - To make a
are reduced. profit

- Job satisfaction so quality of the goods, - higher quality of goods and services - To increase
services, manufacturing and delivering is - increased customer satisfaction and market share
likely to increase. sales.

- Job satisfaction so employees are motivated - Highly motivated employees - To meet

to work harder and to a higher standard. - increase its sales and profit shareholder
- higher dividends to be paid to expectations
shareholders.

- Job satisfaction so employees are more - Producing unique goods and services - To fulfil a
likely to contribute innovative ideas. may be able to better meet customer market need
needs.

- Job satisfaction so employees support of - Business originality around the - To fulfil a

business originality is also likely to increase. community and reduce waste are more social need
likely to be successful.

- Job satisfaction so employees are more - Able to produce goods and services at a - To improve
motivated and determined to complete faster pace and to a higher quality, with efficiency
work tasks, doing so in a focused, error- fewer errors and discarded materials.
free, and productive manner.

- Job satisfaction so employees are more - Readily achieve its objectives and - To improve
motivated to achieve business objectives continue improving its performance. effectiveness
and have greater resilience when doing so.

2B Maslow’s Hierarchy of Needs

MASLOWS HIERARCHY OF NEEDS
is a motivational theory that suggests people have five fundamental needs, and their sequential attainment
of each need acts as a source of motivation.

SELF-ACTULALISATION NEEDS
are the desires of an individual to reach their full potential through creativity and personal growth.

- Life examples – personal fulfilment, reaching full potential

- Work examples – opportunities for advancement, promotion

ESTEEM NEEDS
Are an individual’s desires to feel important, valuable, and respected.

- Life examples – respect and sense of accomplishment

- Work examples – recognition, delegation, empowerment (Ex. ‘employee of the month’)

SOCIAL NEEDS
Are the desires for a sense of belonging and friendship among groups, both inside and outside the
workplace.
- Life examples – love affection, sense of belonging
- Work examples – teamwork, social activities, (Ex staff functions)

SAFTY AND SECERITY NEEDS

Are the desires for protection from dangerous or threatening environments.

- Work examples – shelter and clothing

- Life examples – pay, occupational health and safety, job security

PHYCOLOGICAL NEEDS
Are the basic requirements for human survival, such as food, water, and shelter.

- Work examples – food and water

- Life examples – job and income

2C Lawrence and Nohria’s Four Drive Theory

FOUR DRIVE THEORY
The Four Drive Theory is a motivational theory that suggests that people strive to balance FOUR
fundamental desires.

DRIVE TO ACQUIRE
The drive to acquire is the desire to achieve rewards and high status.

DRIVE TO BOND
The drive to bond is the desire to participate in social interactions and feel a sense of belonging.

DRIVE TO LEARN
The drive to learn is the desire to gain knowledge, skills, and experience.

DRIVE TO DEFEND
The drive to defend is the desire to protect personal security as well as the values of the business.

2D Locke and Latham’s Goal Setting Theory

GOAL SETTING THEORY
The Goal Setting Theory is a motivation theory that states that employees are motivated by clearly defined
goals that fulfil FIVE key principles.

CLARITY
Impacts on goals
- Goals should be specific and easy to measure.
- Employees should be able to clearly understand what is expected of them.

COMMITMENT
Impacts on goals
- Employees should be involved in setting their goals.
- Goals should incorporate the personal interests of employees.

CHALLENGE
Impacts on goals
- The goal should be difficult enough to encourage employees to improve in order to achieve it.

TASK COMPLEXITY
Impacts on goals
- The goal should not overwhelm employees and should be achievable.
- Employees should receive adequate training and time to achieve their goals.

FEEDBACK
Impacts on goals
- Managers should provide regular support to employees and adjust goals as needed.
- Managers should constantly monitor the progress of employees to keep them on track, clarify
misunderstandings, and encourage them to achieve their goals.

2E Motivation strategies (part 1)

MOTIVIATION
Is the willingness of an individual to expend energy and effort in completing a task.

PREFORMANCE RELATED PAY

is a financial reward that employees receive for reaching or exceeding a set business goal.
Advantage
- Can be used to motivate many employees at once
- Employees can personally gain from achieving objectives through the reward of pay
Disadvantages
- Employees may take harmful shortcuts to reach their set objective

- Over time, employees may require increases in the value of financial rewards to remain motivated.

CAREER ADVANCEMENT
Career advancement is the upwards progression of an employee’s job position
Advantages
- Promoting employees from within the business helps retain high- performing employee
- Employees may feel more valued by the business when promoted
Disadvantages
- Some employees may not desire increased responsibility, so motivation may not increase through a
promotion
- Limited senior positions can prevent career advancement from being used for a large number of
employees.

INVESTMENT IN TRAINING
Investment in training is allocating resources to improve employee skills and knowledge.
Advantages
- Employees can build a strong interpersonal relationship with management as both party’s benefit
- The skills and knowledge gained from training may assist employees to complete tasks quicker.
Disadvantages
- Training employees is time- consuming and can delay the completion of work tasks
- Some employees may not value improving their skills and knowledge

SUPPORT STRATEGIES
Support strategies involve providing employees with any assistance that improves their satisfaction at work
Advantages
- Employees who feel supported are less likely to leave the business.
- Employees may feel more valued by managers, as their wellbeing is being considered.
Disadvantages
- May be ineffective if a manager does not have good interpersonal skills.
- It can be time-consuming for a manager to maintain relationships with staff

SANCTION STRATEGIES
Sanction strategies involve penalising employees for poor performance or breaching business policies.
Advantages
- Can pressure employees to act in accordance with management instructions.
- Can motivate employees immediately as they will improve performance quickly to avoid punishment.
Disadvantages
- Can create a negative corporate culture as tasks are completed out of fear.
- Replacing employees who have left due to excessive penalties can be time consuming

2F Motivation strategies (part 2)

SHORT TERM MOTIVATION
Motivation
Positive effect on short-term motivation Negative effect on short-term motivation
strategies
- Motivated to improve performance quickly - May be demotivated if they are competing
Performance- in order to gain financial rewards. against their colleagues for financial rewards.
related pay

- May be rapidly motivated if they are taking - May feel demotivated if they believe they were
Career on more responsibility in the workplace. not considered for a promotion.
advancement

- Taking time off work to participate in training

- May be motivated in the short term by the
Investment in programs may cause employees to lose
opportunity to learn new skills.
training momentum and consequently lack motivation.

- May be motivated by working in a business

Support where their wellbeing is considered and
strategies valued.

- May become resentful of their managers if they

- May be motivated to quickly follow utilise threats and punishments, potentially
Sanction instructions in order to avoid punishment. leading to resignations and decreases in
strategies productivity.

LONG-TERM MOTIVATION
Motivation
Positive effect on long-term motivation Negative effect on long-term motivation
strategies
- If there are employees who in the past were - May become demotivated if they continually
recognised and received reward others will have to compete with their peers to achieve
Performance- be motivated to do the same. financial rewards.
related pay

- May be motivated by ongoing opportunities

- Limited number of responsibilities an employee
Career to be promoted or take on additional
therefore, there are fewer career advancement
advancement responsibilities.

- May be constantly motivated as they feel

valued by the business when they are - Employees may become demotivated by the
Investment in provided with opportunities to develop their consistent workflow interruptions caused by
training skills. training programs.

- Employees may be motivated for a long

period of time when they feel valued by
Support
management and are able to resolve issues
strategies
efficiently.

Sanction - Over time, employees can become desensitised

strategies to the threat of punishment and no longer be
 motivated by sanctions.
- The use of sanctions can contribute to a negative
workplace environment, decreasing employee
satisfaction and motivation.

2E Employee Training
ON THE JOB TRAINING
On-the-job training involves employees improving their knowledge and skills within the workplace
Advantages
- Employees can perform their role while training, minimising losses to productivity
- Employees being trained at the workplace can avoid additional training outside of work hours
- Employees can quickly become familiar with work equipment, reducing the time taken to complete their
training
Disadvantages
- The business may lack the number of experienced staff required to train employee.
- Employees who are not being trained may be disrupted by training processes, lowering productivity
- Employees may learn bad habits from being trained by existing staff

OFF THE JOB TRAINING

Off-the-job training involves employees improving their knowledge and skills in a location external to the
business
Advantages
- Receiving training from professionals can enable employees to gain new perspective
- Likely to perform training in a distraction-free environment, enhancing the quality of training received.
- It does not take more experienced employees away from their jobs to train other employees
Disadvantages
- The business’s workflow may be disrupted if employees are away for training, lowering productivity.
- Employees may try to find a job elsewhere with the external qualifications they gain
- Paying external organisations to train employees may be expensive

2H Performance Management
MANAGEMENT BY OBJECTIVES
involves both managers and employees collaboratively setting individual employee goals that
contribute to the achievement of broader business objectives.
Advantages
-
Disadvantages
-

PERFORMANCE ANALYSIS
involve a manager assessing the performance of an employee against
a range of criteria, providing feedback, and establishing plans for future improvements.
Advantages
-
Disadvantages
-

SELF-EVALUATION
involves an employee assessing their individual performance against a set of criteria.
Advantages
-
Disadvantages
-

EMPLOYEE OBSERVATION
involves a range of employees from different levels of authority assessing another employee’s
performance against a set of criteria.
Advantages
-
Disadvantages
-

2I Termination Management
TERMINATION
is the process whereby a business ends its employment contract with an employee.

RETIRMENT
involves an individual deciding to leave the workforce permanently as they no longer wish to
work.

REDUNDACY
involves an employee no longer working for a business because there is insufficient work or their
job no longer exists. Voluntary or in voluntary

RESIGNTION
Involves an employee voluntarily terminating their own employment, usually to take another job
position elsewhere.

DISMISAL
involves the involuntary termination of an employee who fails to meet required work standards or
displays unacceptable or unlawful behaviour.

ENTITLMENT CONSIDERATIONS
are legal obligations an employer owes to its employees following the termination of their
employment contract.

Annual or long service leave –

Redundancy pays –

Notice of termination –

Justifiable reasons for employment termination –

TRANSITION CONSIDERATIONS
are social and ethical practices that a manager can consider implementing when terminating
employment.
- offering resume writing or interview training
- providing networking support for employees in the form of contacts
- providing flexible working hours that allow employees to attend interviews
- introducing counselling and financial services to ease the uncertainty
- holding celebrations and providing recognition of the achievements
- slowly reducing the working hours of employees to help them adjust to their new lifestyle.

2J participants in the workplace

HUMAN RESOURSE MANAGEMENT
are individuals who coordinate the relationship between employees and management within a
business
- coordinate the relationship between employees and management within a business
- Negotiate with employees and their representatives
- Act as a mediating party
- Ensure that minimum legal requirements are met

EMPLOYEES
Employees are individuals who are hired by a business to complete work tasks and support the
achievement of its objectives.
- Follow and understand workplace safety procedures
- Complete tasks with proper care and diligence
- Obey terms in their contract
- Avoid misusing confidential information
- Report illegal or unethical behaviour

EMPLOYER ASSOCIATION
are advisory bodies that assist employers in understanding and upholding their legal business
obligations
- Share information
- Provide advice
- Represent employers during negotiations with employees
- Provide support

UNIONS
are organisations composed of individuals who represent and speak on behalf of employees
in a particular industry to protect and improve their wages and working conditions.
- Represent employees and negotiate new wages and conditions on behalf of their members
- Seek better wages and work conditions on behalf of employees
- Protect job security and integrity of employee contracts

THE FAIR WORK COMMISSION (FWC)

is Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by
the Fair Work Act.
- Set national minimum working standards
- Establish awards
- Approve and monitor enterprise agreements
- Act as an arbitrator
- Act as a mediator
- Respond to serious workplace issues

2K Awards and agreements

AWARDS
are legal documents that outline the minimum wages and conditions of work for employees across an
entire industry.
- National Employment Standards (NES)
Advantages
- Cheeper for business
- No time spent negotiating terms
- Fewer disputes as no negotiation available
Disadvantages
- May be hard to find talented employees
- Business may need to implent multiple awards
- Less flexible

AGREEMENTS
are legal documents that outline the wages and conditions of employees and are applicable to a
particular business or group of businesses

Advantages
- Highly flexible – wages tailed to individual needs
- Can attract high quality employees
- Rewards for high performance can be given through improved conditions or wages
Disadvantages
- Time consuming to negotiate agreements
- Negotiating can conflicts
- Very expensive and time consuming

2L Dispute resolution
DISPUTE RESOLUTION PROCESS
A dispute resolution process is a series of steps that disputing parties follow in order to resolve a
disagreement and reach a resolution.

MEDIATION
involves an impartial third-party facilitating discussions between disputing parties to help each side of the
conflict reach a resolution themselves.
Advantages
- Can come to own resolution and accept outcomes.
- Maintain positive relationships
- Both parties can communicate
Disadvantages
- No garneted of resolution
- Outcome may not be legally binding – can change.
- Its voluntary meaning my have delays.

ARBITATION
involves an independent third-party hearing arguments from both disputing parties and making a legally
binding decision to resolve the conflict.
Advantages
- A resolution is guaranteed
- Efficient process, desison made quickely
- Legally binding
Disadvantages
- No control over desison, both parties may be unhappy
- Often more expensive