Human Resource Management Complete Notes

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Human Resource Management Complete Notes
Human Resource Management (Swinburne University of Technology)
Studocu is not sponsored or endorsed by any college or university

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1 Chapter 1: Strategic human resource management
2 Learning objectives
On successful completion of this slide set, you will be able to:
– Explain what is meant by human resource management (HRM)
– Explain the relationship between HRM and management
– Describe the role of the HR manager
– Understand HRM activities performed in the organisations
(cont.)
– Explain the meaning of strategy
– Explain the meaning of strategic human resource management (SHRM)
– Describe a strategic approach to HRM
– Appreciate the strategic challenges faced by those working in HRM.
4 FastFacts
• A Gallup survey found that more than 80 per cent of Australian workers are not
engaged and that disengaged workers are three times likely to take sick leaves.
• Watson Wyatt found that when US employees are highly engaged, employee
productivity increased by 26 per cent, employee turnover was reduced and
shareholder returns increased.
5 Human resource management (HRM)

• The focus is on managing people within the employer–employee relationship.
• It involves the productive use of people in achieving the:
– organisation’s strategic business objectives, and
– satisfaction of individual employee needs.
• HRM is either part of the problem or part of the solution in gaining the productive
contribution of people.
6 Best employers
7 Human and social capital

• Employment of high performance HR practices increases in the value placed on HR
by the senior management and positively impact both human and social capital.
• Human capital is the knowledge, skills and abilities present in organisation’s human
resources.
• Social capital describes the strength of personal relationships existing within an
organisation that promotes sharing knowledge, employee motivation, team work
and work commitments.
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8 HRM and management

• HRM is management, but management is more than HRM.
• HRM deals directly with people.
• Management includes:
– marketing
– management information systems
– production
– research and development
– accounting and finance.
9 Approaches to HRM
• Instrumental (Hard)
– Stresses the rational, quantitative and strategic aspects. Performance improvement
and competitive advantage are highlighted.
• Humanistic (Soft)
– Emphasises the integration of HR policies and practices with strategic business
objectives but also acknowledges employee development, collaboration,
participation and trust.
Which approach are you most comfortable with? Why?
10 Eight key roles for an HR Manager

• Strategic partner
– Translate business strategy into action, become part of the business team
• Administrative expert
– Using technology, rethinking and redesigning activities
• Employee advocate
– Be the employees’ voice
• Agent for change and cultural transformation
– Catalyst for change Contd.
11 Eight key roles for an HR Manager

• Talent manager
– Attract, develop and retain core employees
• Organisation ambassador
– Represent organisation in competent manner, market HR within organisation
• Board and senior executive resource
– Contribute to board members on HR policies, practices to promote business
success
• Legal advisor
–

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•
– Ensure legal compliance, monitor HR hazard risk
12 Roles of HR manager
13 HRM activities
• Job analysis
• Human resource planning
• Recruitment
• Selection
• Performance appraisal
• Human resource development
• Career planning and development
• Employee motivation
(cont.)
14 HRM activities (cont.)
• Change and cultural transformation
• Health and safety
• Remuneration and benefits
• Employee relations and/or industrial relations.
– Employee relations focuses on workplace relations, and deals with employee
attitudes and behaviour and the relationship between the organisation and its
employees.
15 HRM, productivity & organisation performance

• A common indicator of organisation and HRM performance is productivity.
• Productivity is defined as an organisation's total output of goods and services
divided by its total inputs (see page 18 for Total Factor and Labour Productivity
Formula).
• Productivity improvements are necessary for the economy and organisation to be
remain competitive (see figure 1.7, p. 19).
16 Ethical issues and HRM

• HR managers today are increasingly faced with complex, ambiguous and conflicting
issues involving questions of morality and standards of behaviour:
– What is good or bad? Right or wrong?
– Is management more responsible to shareholders or to employees?
– How should terminations be managed? What about monitoring employee email?
Performance payments? Spoken English levels?
•

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17 Ethical issues – influencing factors

• Personality and national culture
• The situation and its importance to the individual
• Corporate culture
• The existence of:
– clear, unambiguous organisational policies
– codes of conduct.
18 Whistleblowing
19 HR and whistleblower
20 Strategy and stakeholders

• Strategy defines the direction in which an organisation intends to move and
establishes the framework for action to get there.
• Stakeholders are individuals, groups or organisations that are affected by or have a
vested interest in an organisation’s policies or decisions.
- Who are the stakeholders of this

educational institution?
- Who are the stakeholders of your employing organisation?
21 Examples of stakeholder interests
22 Strategic management
• Strategic management involves:
– Strategy formulation
– Organisational mission and objectives
– Environmental analysis
– Strategy selection and implementation
– Performance evaluation and feedback.
•
23 Examples of stakeholder interests
24 Types of strategies
• Growth
• Retrenchment
• Stability
• A combination of growth, retrenchment
and stability
• International strategies (global, multi-domestic, transnational).
•

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•
•
What would happen if the HR strategy is not
aligned with the organisational strategy?
25 HRM strategies must:

• reflect the strategic objectives and values of the organisation;
• be taken into account in organisational strategies (and vice versa);
• support culture, climate, and organisational processes to attract and retain good
staff;
• identify the organisation’s competencies and match people to these; and
• sustain and build organisational commitment.
26 Strategic HRM
• Strategic HRM focuses on the linking of all HR activities with the organisation’s
strategic objectives.
• SHRM objectives must accurately reflect organisational values.
• HR objectives, policies and plans must be judged by how well they help achieve the
organisation’s strategic business objectives.
27 Strategic HRM objectives and activities

Strategic HRM objectives and activities must:
• be measurable;
• include deadline dates for accomplishment;
• identify and involve key stakeholders and HR customers to ensure the necessary
collaboration; and
• nominate the individuals or parties responsible for implementation.
28 The purpose of HR policies

• The purpose of HR policies is to:
– reassure employees that they will be treated fairly and objectively;
– help managers make quick and consistent decisions;
– give managers the confidence to resolve problems and to defend their decisions.
• Procedures detail precisely what action is to be taken in a particular situation.
29 Organisational culture
• Organisational culture is represented by the values, beliefs, assumptions and
symbols that define how an organisation conducts its business.
• Organisational culture and business success are co-dependent.
•

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•
• HRM activities stimulate and reinforce the behaviour needed to achieve the
organisation’s strategic objectives.
•
What is the organisational culture like where
you work? Why is this?
30 Evaluating outcomes and performance

• Adaptability
• Commitment
• Competence
• Congruence
• Cost-effectiveness
• Job satisfaction
• Justice
• Motivation
• Performance.
• Trust
31 The HRM challenge

• HR managers need to:
– be strategic contributors;
– show the true value of the HR function to the organisation;
– be the employees’ voice; and
– demonstrate professional competence.
• HR managers need to constantly demonstrate the connection between HR,
organisational performance and employee well-being.
32 Summary
• The shift from an industrial society to an information society also presents HRM with
unique challenges, including:
– creating a fair and just workplace;
– managing people respectfully and creatively;
– restoring trust lost through restructuring, downsizing and work pressures.
(cont.)
33 Summary
• In the current environment HR managers need to:
– adopt a strategic approach;
– be part of the top management team;
–

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– be involved in corporate planning and understand the business;
– become bottom-line oriented;
– develop and communicate a vision for HRM.
•
–
34

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1 Chapter 2
Human resource planning
2.1 Explain the relationship between strategic HRM planning and operational HR
planning
2.2 Appreciate the importance of HR planning
2.3 Identify key environmental influences on HR planning
2.4 Understand the basic approaches to HR planning
2.5 Describe the ways of forecasting HR requirements
2.6 Explain the basics of exit management
2.7 Describe requirements for effective HR planning
3 2.1 Human resource planning and
strategic HRM planning
• The process of systematically reviewing human resource requirements to ensure that
the required number of employees with the appropriate knowledge, skills and
abilities are available when needed.
• Human resource planning can also be described as employment planning.
• Strategies:
– Retrenchment, stability, growth.
4 Organisational strategy and HR
planning
5 2.2 The importance of HR planning

• HR planning:
– systematically identifies what must be done to guarantee the availability of the
human resources required by an organisation to meet business objectives.
– ensures that:
• available talent is correctly allocated
• labour costs are controlled
• the number of staff is appropriate
• talented employees are retained.
6 Strategic planning and HR planning
7 HR planning issues
• Scarcity of talent
– Talent is now the prime source of competitive advantage, not raw materials,
capital or technology
• Balancing short and long-term needs
– A common mistake for HR managers is to concentrate on short-term replacement
needs rather than on the organisation’s long-range HR requirements
•

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needs rather than on the organisation’s long

•
–
–
8 2.3 Environmental influences and HR
planning
• Globalisation
– Movement of labour internationally
– The ‘brain drain’
• Multigenerational workforce
– A new challenge for HR managers
– Traditionalists, baby boomers, Gen X and Gen Y have distinctive characteristics at
workplace
•
• Women in the workforce
– In Australia, flexible work practices, workplace culture and childcare support have
positively influenced women participation
– The desire for self fulfilment, social relationships, financial pressure due to global
financial crisis are main reasons for increased workforce participation by older
women at workplace.
• Academic standards
– Migration vs. education?
•
• Labour mobility
– Is now a serious inhibitor to improved economic performance
• High cost of moving
• Lack of infrastructure in regional towns
• High cost of housing
• Poor transport infrastructure.
11 Multigenerational workforce
12 2.4 Approaches to HR planning

• Three forecasts are needed:
– demand for human resources within the organisation;
– supply of external human resources to the organisation;
– supply of human resources available within the organisation.
13 2.4 Approaches to HR planning

•

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• Quantitative methods
– Use statistical and mathematical techniques
– Mainly used by theoreticians and professional HR planners in large organisations.
• Qualitative methods
– Use expert opinion (usually a line manager) to predict future needs and actions
– Focus on evaluations of employee performance, promotability and development.
14 HR planning and HR forecasting relating

to internal supply and demand
15 The quantitative approach

• Trend projection
– Makes predictions by projecting past and present trends into the future.
• Econometric modelling and multiple predictive techniques
– Complex computer models which simulate future events based on probabilities
and multiple assumptions.
16 The qualitative approach

• Expert opinion
– Usually the line manager.
• Delphi technique
– Independent, anonymous decision making, followed by collation of results and
redistribution of information until consensus is reached.
• Nominal group technique
– Independent ideas generation, presentation to the group and ranking of options.
•
17 2.5 Forecasting human resource
availability
Qualitative methods
• Skills inventory
– Consolidates information about all employees to identify those suitable for
opportunities and assess short and long-term organisational requirements.
• Replacement charts
– Visual representations of present incumbents and potential replacements (or lack
thereof) for given positions. See next slide.
• Succession planning
– Takes a long-term view of organisational needs.
•
18 Determining human resources
requirements

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19 Quantitative methods
• Turnover analysis
– Detailed examination as to why people leave an organisation (for example:
retirement, resignation, illness, retrenchment, termination).
• Markov analysis
– A mathematical technique used to forecast the availability of internal job
applicants. A matrix is developed to show the likelihood of employee movement
(internally or by leaving the organisation).
20 Factors affecting the external supply
of human resources
• The HR manager must be constantly alert to external trends, including:
– The ageing population
• Two million Australians aged 65 or older; this will double in twenty years
– Increase in female participation rates
– Increase in school retention rates
– Immigration changes
– Child labour
– Casualisation of the workforce
• Contingent worker = temporary or part-time
21 Factors affecting the external supply
of human resources
– Guest workers and 457 visa reforms
• 457 visa permits foreign skilled workers (guest workers) to enter Australia for a
short period
– Strategic outsourcing
• Can free up resources, increase flexibility and promote entry to new markets.
• Criticism includes reduced service, industrial relations issues and loss of
personnel locally.
22 Outsourcing
• Outsourcing
– Subcontracting work to an outside company that specialises in and is more
efficient at doing that kind of work. International outsourcing is called offshoring.
Some reasons to outsource:
– To free up resources
– To increase workplace flexibility
– To access additional capital
– To promote entry to new markets.
What is your opinion?
•

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•
23 International employees
• Top Australians are being head-hunted overseas (and local organisations are looking
globally to fill senior roles).
• Technology and increased mobility of the labour market has facilitated the
internationalisation of business.
• Filling managerial and professional vacancies with Australians (and Filipinos) is
convenient and relatively cheap for many Asian companies.
• Labour is now a global resource.
•
24 Fly in, fly out workers

• Resource boom in Queensland and Western Australia created enormous demand for
labour in remote areas.
• A new category of employees: Fly in, fly out is created.
• Though fly in, fly out employees are usually highly paid, local residents and trade
unions oppose the practice as it creates family and social problems, disrupts local
communities and leads to a dispersed and less unionised workforce.
25 2.6 Exit management

• Globalisation, cost pressures, competition, technology and the global financial crisis
resulted in organisations to balance their current and actual number of employees
needed.
• Employee numbers are reduced by voluntary or involuntary termination.
• Employees targeted for separation may be selected on:
– groupings, performance, seniority and rank.
26 Exit management fairness
• It is critical that exit or termination process be ethical and fair, that includes:
– Procedural justice: Process must be perceived by the management, employees and
unions as fair, acceptable
– Distributive justice: Termination package must be perceived by all parties as fair
and equitable
– Interactional justice: Terminated employees must be treated with dignity and
respect
27 Exit management planning

• Objectives: Clearly define the purpose of employee reduction
• Numbers: How many employees are to be terminated?
• Selection: What is the rationale of selecting employees?
• Timing: What would be the time length of the termination process?
• Cost: All costs should be identified and accounted for the process
• Audit: Determine success/ failure of the program, remedial measures
•
•

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•
•
•
•
•
•
•
•
•
•
28 2.7 Requirements for effective HR
planning
• Successful HR planning requires HR managers to ensure that:
• HR personnel understand the HR planning process
• Top management is supportive
• Organisation does not start with a complex a system
• Regular and healthy communication between stakeholders are conducted
29 2.7 Requirements for effective HR
planning
• HR plan is integrated with organisation’s strategic business plan and
• Strike a balance between qualitative and quantitative HR approaches
•
30 Summary
• Effective human resource planning supports organisational effectiveness.
• A measure of success is whether the right people are available in the right place at
the right time.
• Human resource planning must be fully integrated with the organisation’s business
planning.
• HR managers must be willing and able to demonstrate the success of human
resource planning.
•
31

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1 Chapter 3
Human resource information systems
3.1 Describe the relationship between strategic HRM and human resource information
systems (HRIS)
3.2 Explain the use of HRIS in contemporary HR functions
3.3 Understand the decision-making processes that need to be followed when
introducing HRIS
3.4 Discuss HRM and the internet and explain ‘cloud computing’
3.5 Understand key issues that will determine the success or failure of a HRIS
3 3.1 Strategic HRM and human resource

information systems
• Human resource information system (HRIMS)
– A computerised system used to gather, store, analyse and retrieve data in order to
provide timely and accurate reports on the management of people in
organisations.
– There must be a reason for automation – linked to business outcomes.
4 Maximising HRM capabilities
5 A HRIS model
6 HR vs. payroll systems

• An integrated function
– Payroll and HR should be integrated to create and maintain a complete system
and to prevent unnecessary duplication of effort,
OR
• Separate activities
– Payroll is seen as an accounting system that processes a large number of
transactions while the HRIMS is used for planning and decision making.
7 Managing information
• Database management
– Involves the input, storage, manipulation and output of data
• Knowledge management
– Deals with an organisation’s ability to collect, store, share and apply knowledge in
order to enhance its survival and success.
• See Figure 3.3, for an example of HRIS items
8 3.2 Use of HRIS

• In high-tech organisations, technology is seen as a strategic and competitive tool.
•

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• HRIS can assist in decentralisation of time consuming and expensive HR transactions.
• This results in better informed and faster decision making.
• Employees can access and update their own information (low value-added activity).
9 HRIMS concerns
• Confidentiality
– Potential for invasion and abuse of employee privacy by both authorised and
unauthorised personnel.
10 HR security checklist
11 Legal and management concerns

• Cyberloafing
– Employee abuse of the internet and email
• Sending confidential information and/or breaching intellectual property rights
• Defamation or harassment claims
• Carefully worded policies governing use of email and the internet are essential
• Need to find a balance between permissiveness and surveillance.
12 3.3 Computerising the HR department:
the decision-making process
• It is important to justify the cost of setting up and implementing an HRIS. There are
three main options:
– Design an in-house system using either internal or external resources, or a
combination of both.
– Buy a system ‘off-the-shelf’ and commence operation.
– Buy a system as above but work with the vendor to modify it to better satisfy the
organisation’s requirements.
13 HRIS design
14 Outsourcing
• Apparent lower cost, simplicity and convenience
• Successful outsourcing allows the HR department to focus on its core business.
• The organisation needs to assess whether outsourcing is the best way to go for
them. It has pitfalls and downsides, as well as potential benefits.
15 Relationship with other departments

• The HRIS must be in line with the organisation’s strategic objectives.
• It must be help improve productivity and reduce costs.
• There should be strong working relationships with the IT and Accounting
departments (and others, as appropriate).
• Developments in mobile device (smartphone, iPad) technology, social media will
impact the future of HR activities.

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16 Hardware issues
• Technological advancements mean it is now increasingly difficult to distinguish the
different characteristics of mainframes, minicomputers and microcomputers.
• Further developments in mobile device (smartphone, iPad) technology mean that
even the PC is under threat.
– Mobile devices today have enormous processing power and have become a
powerful tool for getting HR work done
17 Acceptable use policy
18 3.4 HRM and the internet

• Increasingly, HR managers are using internet to:
– Recruit, select potential employees
– Administer remuneration, benefits
– Conduct research, access electronic databases
– Send email, network, advertise and undertake corporate promotion
• Facebook and LinkedIn are increasingly used by organisations to highlight
themselves as an employer of choice, identification of talent and recruitment of
applicants.
19 E-HRM
• Technological advances, increasingly sophisticated software and the ubiquitous use
of mobile devices have seen HRIS rebadged by some writers as e-HRM.
20 Cloud computing
• Cloud computing allows employees to access applications via internet without the
organisation having to purchase and maintain servers and data centres.
• For example, emails in Gmail inbox are not stored in a PC but on a server in a Google
data centre.
• Advantages of cloud computing include lower cost to organisations, access to a data
source via a range of devices including PC, laptops, mobiles etc.
• Require careful planning and detailed consideration of what data will be placed.
21 Cloud computing
22 Big data
• The advent of cloud computing has made cost effective the collection, storage and
analysis of massive amounts of data, known as big data.
– Organisations can now mine data about employees from traditional sources (such
as employee records, payroll information, attitude surveys etc.) and new data
sources including social media, browser logs, text analytics and sensor data.
23 3.5 Evaluating the HRIS
Basic evaluation questions that the HR manager should ask include:
• Is time spent entering data justified by accuracy, timeliness and value of information

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•
generated?
• Is HRIS response time appropriate?
• Is HRIS integrated with the payroll system?
• Is HRIS able to generate answers to specific questions?
• Is HRIS able to generate ad hoc, on-request reports as well as regular detailed
reports?
24 3.5 Evaluating the HRIS

• Is cost of HRIS outweighed by benefits?
• Is the HRIS enhancing perception of HR as efficient, effective and strategic?
• Is the HRIS a value adding contributor to the achievement of the organisation’s
strategic objectives?
• Is the HRIS at the end of its life cycle and in need of upgrade or replacement?
25 Summary
• The purpose of the HRIS is to assist both the HR manager and line managers in
decision making.
• The HRIS must generate information that is accurate, timely and related to the
achievement of the organisation’s strategic business objectives.
• Flexibility in system design should not be ignored.
26 Summary
• As the HRM function continues to change, so too must the supporting systems.
• Effective use of social networks for promotion of organisation image as an employer
and for gleaning information on job candidates.
27

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1 Chapter 4
Human resource management and the law
4.1 Understand the importance of the law as it relates to HRM and distinguish
between an employee and an independent contractor
4.2 Identify the sources of legal obligations in employment law, understand the
importance of the contract of employment and its essential terms, and recognise the
amendments to the federal legislation by the Fair Work Act 2009 (Cwlth) (Fair Work
Act)
4.3 Identify the legal requirements at various stages of employee recruitment and
selection
4.4 Understand the legal issues for HR professionals during employment
4.5 Discuss the procedures for terminating employees and understand an employee’s
rights of review upon dismissal
4 4.1 HRM and the law

• HR managers need to be aware of legal issues that govern the employee/employer
relationship.
– Labour law, which incorporates:
• law of employment (the individual contract that all employees have with their
employer)
• industrial law (regulates the manner in which employees collectively relate with
employers or groups of employers)
• This slide set provides an overview only of new legislation and some important legal
issues.
•
5 Employee or contractor
• A person is likely to be considered a contractor if the service provider:
– is not an employee of the principal
– is providing skilled labour which may require special qualifications
– has control over the manner in which work is performed
– provides their own tools and equipment
– is not presented to the public as an emanation of the principal.
•
6 4.2 Sources of legal obligations

• Employment contract:
–

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– A written document signed by both parties, or
– A wholly or partly oral agreement.
• HR managers must ensure that all relevant terminology is included in the contract
itself for clarity.
• Types of contracts:
– Indefinite duration or fixed term
• A written contract provides important advantages to both parties.
7 Essential terms of employment
contracts
8 Workplace policy
• Workplace policy
– A document of general application, prepared by the employer, and designed to
govern (either with or without contractual force) any and all aspects of the
conduct, rights and obligations of the parties to a contract of employment.
• A workplace policy can regulate virtually all aspects of employment, including
recruitment, termination, disciplinary procedures, confidentiality and more.
9 Considerations
• Restraint of trade
– Limits an employee’s ability to engage in similar employment for a specified
period.
• Confidentiality agreements
– During and after the course of employment.
• Whistleblowers
– Legislation provides protection for individuals who seek to properly disclose
dishonest, corrupt or unethical dealings, for the public interest.
10 Considerations
• Workplace intellectual property
– An invention created during the course of employment will usually belong to the
employer, not the employee.
• Moral rights
– However, the employee may still have rights with respect to the inventions created
during the course of employment.
11 Statutes
• In the context of employment, statues legislate the minimum conditions of
employment and behavioural obligations that must apply in any employer–
employee relationship or workplace.
• The Fair Work Act aims for a unified system of industrial law across Australia.
• All employees from national system employers are bound by the Fair Work Act.

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•
12 Statutes
• The ultimate ambition of the Fair Work Act is that the states will voluntarily transfer
workplace relations powers to Canberra. However, many non-industrial state and
territory laws still apply, for instance:
– Equal employment opportunity
– Superannuation
– Workers compensation
– Occupational health and safety.
13 The National Employment Standards
(NES)
• Minimum standards apply to all national system employees:
– Maximum weekly hours
– A right to request flexible working arrangements
– Unpaid parental leave, annual leave, personal/carer’s leave, community service
leave, long service leave
– Public holidays
– Notice of termination and redundancy pay
– Fair Work Information Statement
14 Statutory agreements
• The Fair Work Act radically remodelled the statutory agreement. The capacity to
enter into an Australian Workplace Agreement (AWA) is gone.
• The agreement-making regime emphasises:
– Collective bargaining leading to collective agreements
– The entitlement to appoint a bargaining representative
• Enterprise agreements take effect when approved by Fair Work Australia (replaces
the AIRC).
• The ‘better off overall’ test applies.
15 Awards
Award: A piece of delegated legislation determined by an industrial tribunal.
• Previously, awards were the primary source of employment obligations for most
Australian employees and employers.
• Awards, if in place, will now be modernised and ultimately reduced from thousands
to less than 122 operating by industry, trade or occupation.
• Still necessary for HR managers to understand awards.
16 Common law
• Common law
– Case law developed in the court system as opposed to statute law. Includes laws
and principles that have been established by courts over the years.
• It may be codified into a statute or overruled by a statute passed by the government.
•

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•
• General duties prescribed:
– Employer’s duties
– Employees’ duties
What could these general duties include?
–
17 4.3 Employee recruitment and
selection
• A myriad of laws govern arrangements for selecting and engaging employees.
• The following areas require particular consideration in the pre-employment phase:
– the job advertisement
– the job description
– the application form
– the interview
18 Unfair discrimination
• Discrimination
– Any practice that makes distinctions between different groups based on
characteristics such as sex, race, age, religion and so on, which results in particular
individuals or groups being advantaged and others disadvantaged in an
unreasonable or unjust manner
• Pervades all stages of the pre-employment process.
•
19 Direct vs. indirect discrimination
20 The job advertisement and legal

requirements
• It is essential that the advertisement does not indicate, or could not reasonably be
understood to indicate, an intention to act in a manner which is discriminatory:
– ‘Cleaning lady wanted’, ‘waiter’, ‘cameraman’
• The job description must include:
– Job title, qualifications, experience required, level of responsibility held, details of
the person the occupant reports to.
21 Issues to consider
• Application forms
• Freedom of (and from) association
• Age
• Sex
• Physical and mental capacity
• Criminal convictions
•

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• References and previous employment
• Testing employees
• The interview process
22 4.4 Legal issues for HR professionals
during employment
• Occupational health and safety requirements
• Discriminatory treatment of employees
• Workplace bullying
• Statutory benefits:
– Payment of wages
– Provision of leave
• Termination
23 4.5 Terminating employees

• Summary dismissal
– Effectively dismissal without notice
• Notice of termination or payment in lieu of notice (refer to next slide)
• Redundancy
– Often based on commercial or economic decisions
• Constructive dismissal
– When an employer acts contrary to terms and conditions of employment
24 Period of notice
25 Grounds for summary dismissal

• Serious misconduct
• Physical/verbal abuse
• Disobedience of an employer’s lawful and reasonable directions
• Drunkenness at work
• Incompetence
• Neglect of duties
• Dishonesty / bribery
• Criminal behaviour in connection with employment
• Absenteeism
26 Procedures for dismissal

• The Fair Work Act requires:
– A valid reason for dismissal, to demonstrate substantive fairness
– All actions be taken to prevent a dismissal which is ‘harsh, unfair or unreasonable’
– The employer’s basic right to ‘hire and fire’ must be maintained.
27 Redundancy requirements

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28 Termination – employee entitlements

Employees must:
• Be furnished with reasons for the impending dismissal (ref. Section 387a of Fair Work
Act).
• Have a fair hearing so that the employee is afforded a right to response to those
reasons
• Have an unbiased decision-making process that takes the employee’s response into
account before any final decision is made.
• Electronic copy of the Fair Work Act can found at:
http://www.comlaw.gov.au/Details/C2012C00483
29 The rights of the employee

• The Fair Work Act allows an employee to challenge their dismissal in an industrial
tribunal, with some exceptions.
• Eligible employees can seek redress from Fair Work Australia, including
reinstatement or compensation.
• There is an important distinction between unfair termination and wrongful dismissal.
30 Wrongful dismissal vs. unfair dismissal
31 Summary
• The relationship between the employer and the employee is governed by law:
– Employment contracts, legislation, statutory agreements, awards and the common
law.
• HR managers need to be aware of requirements to minimise an organisation’s
exposure to dispute and litigation.
• Having a balanced approach and seeking expert legal advice as necessary is the key.
32

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1 Chapter 5
Job analysis, job design and quality of work life
5.1 Explain what is meant by job analysis and job design
5.2 Understand the uses of job analysis and describe the content and format of a job
description and a job specification
5.3 Discuss the collection of job analysis data and explain the major job analysis
techniques
5.4 Discuss competency profiling
5.5 Comply with EEO requirements
5.6 Understand the practical and theoretical problems of job analysis
5.7 Understand the major methods of job design
5.8 Discuss quality of work life.
4 5.1 Introduction
• A proper match between work and employee capabilities is now an economic
necessity
• Changes in strategy affect not only how work is performed, but also the knowledge,
skills, abilities and attitudes required by workers
• HR managers need a good understanding of work and how it is organised to ensure
that the organisation’s strategic business objectives are being supported and
employee needs are being met
5 5.2 Job analysis

• Job analysis:
– A systematic investigation of the tasks, duties and responsibilities of a job and the
necessary knowledge, skills and abilities a person needs to perform the job
adequately.
• Components:
– Job content
– Job requirements
– Job context.
6 5.2 Job analysis

• Approaches
– A job orientated or task approach
– An employee orientated (or behaviour) approach
• When to analyse a job
– When the organisation commences
– When a new job is created
–

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–
– When a job is changed significantly.
7 Job analysis and job design
8 The uses of job analysis

• Job description
– Defines what a job is by identifying its content, requirements and context.
• Job specifications
– Focus on the skills, abilities, knowledge, personal characteristics and formal
qualifications needed
• Job design
– Identifies what work must be performed, how it will be performed, where it is to
be performed and who will perform it.
9 The uses of job analysis

• For example:
– To design and implement training programs
– To help create a healthy and safe work environment
– To ensure legal compliance (next slide)
– To help establish whether a person should be classified as an employee or as an
independent contractor.
10 Job analysis and legal compliance
11 Job analysis process
12 Job description
• Job description
– A written statement explaining why a job exists, what the occupant actually does,
how they do it, and under what conditions. Includes:
• Job identification • Job objective
• Duties and responsibilities • Relationships
• Performance standards • Authority
• Accountability • Rewards
• Trade union membership • Other requirements
•
13 Job description
• Job descriptions (and job specifications, to be discussed next) must be clear, concise
and understandable, to avoid later disputes.
•
14 Job specification
• The job specification is derived from the job description. It identifies aspects
necessary for job success, including:
–

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– Experience, skills, abilities and knowledge

– Personal characteristics
– Special requirements
– Ideal industry background, ideal current organisation, ideal current position
– Route up: What would be the ideal career path for the candidate to have followed
as preparation for this position?
– Remuneration.
15 5.3 Collection of job analysis
information
• The five most common methods are:
– Observation
– Interviews
– Job analysis questionnaire
– Diaries/logs
– Critical incident reports (snapshots of effective or ineffective performance)
• A combination of data collection methods can also be used.
16 Job analysis techniques

• Job analysis techniques include:
– The Australian and New Zealand Classification of Occupations (ANZSCO)
– Position Analysis Questionnaire (PAQ)
– Management Position Description Questionnaire (MPDQ)
– Position Classification Inventory (PCI)
17 5.4 Competency profiling

• Competency profiling
– A job analysis method that focuses on the skills and behaviours needed to
perform a job successfully
– A competency is an underlying characteristics of a person that leads to or causes
superior or effective performance.
18 Competency profiling
• Competency characteristics:
– Motives: What drives, directs & selects behaviour towards certain actions or goals
& away from others?
– Traits: Physical characteristics & consistent responses to situations or information.
– Self-concept: A person’s attitudes, values or self-image.
– Knowledge: Information a person has in specific content area.
– Skills: The ability to perform a certain physical or mental task.
19 Competencies for today’s HR
professionals

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20 Central and surface competencies
21 Criticisms of competency profiling

• The ambiguous meaning of competency
• Its generic ‘off-the-shelf’ nature
• Its focus on the past rather than the present
• The emphasis on ‘technical’ competencies
• The assumption of rationality
22 5.5 Job analysis and EEO

• To guarantee compliance with EEO requirements, managers must ‘know the job’. It is
necessary to avoid the following:
– No obvious or disguised violations of EEO requirements
– Avoid listing unnecessary lengthy experience requirements
– Job specifications and description should not be based on personal opinion,
rather based on job analysis
23 5.5 Practical problems with job analysis

• Lack of top management support
• Use of only one method
• Use of single source of data only
• Lack of participation of all stakeholders
• Lack of training of the analyst
• Employees’ lack of awareness of importance
• Process seen as a threat to employee
• Lack of reward for providing quality information
• Insufficient time allowed for the process
• Intentional or unintentional distortion
• Absence of a review
•
24 5.7 Job design

• There is no one best way to design a job. Methods can include:
– Job specialisation or simplification
– Job enlargement
– Job rotation
– Job enrichment
• Socio-technical enrichment
• Autonomous work teams
25 Job design methods
26 Job design implications of job

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characteristics theory
27 5.8 Quality of work life (QWL)

• Involves the implementation of HRM policies and practices designed to promote
organisational performance and employee wellbeing, including:
– Management style
– Freedom to make decisions
– Pay and benefits
– Working conditions
– Safety
– Meaningful work.
28 Criteria for improving QWL
• Criteria can include:
– Adequate remuneration
– Safe and healthy environment
– Development of human capabilities
– Growth and security
– Social integration
– Constitutionalism
– Total life space
– Social relevance
29 Summary
• Job analysis is a fundamental HRM activity.
• A proper match between work and employee capability is an economic necessity.
• Work itself is in a constant state of change.
• Changes affect not only how work is performed but also the skills, knowledge and
attitudes required by workers.
• HR managers therefore need a good understanding of work and how it is organised.
30

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1 Chapter 6
Recruiting human resources
6.1 Describe strategic recruitment
6.2 Discuss the major internal and external sources of human resources, the traditional
recruiting methods and their advantages and disadvantages, and e-recruiting and the
use of social networking sites as recruiting tools
6.3 Discuss the recruitment of women; people with disability; older workers; migrants;
Indigenous Australians; and lesbian, gay, bisexual and transgender workers
6.4 Evaluate the recruitment activity
3 6.1 Strategic recruitment
• Strategic recruitment
– Linking recruiting activities to the organisation’s strategic business objectives and
culture.
• Recruitment
– Seeking and attracting a pool of qualified applicants from which candidates for
job vacancies can be selected.
• Employment branding
– Promoting an image of the company as a good employer, to create a favourable
impression with potential applicants.
4 Strategic recruitment
5 Some issues
• Realistic job preview
– A method of conveying job information to an applicant in an unbiased manner,
including both positive and negative factors.
• Recruitment policy
– EEO
– Promotion from within
– Promotion from outside.
6 Recruitment activities
• Determine and categorise the organisation’s long-range and short-range HR needs.
• Keep alert to changes in the labour market.
• Develop appropriate recruitment advertisements and literature and select method/s
to be used.
• Record the number and quality of applicants from each recruiting source.
• Follow-up on applicants and evaluate.
•

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7 Employment checklist
1. Is there a genuine need for this job to be filled?
2. Should the job be filled internally or externally?
3. What is the budget for filling the position?
4. What are the duties, responsibilities, reporting relationships, qualifications,
experience, skills and personal qualities?
5. What is the job size? What is the job title?
6. What pay and fringe benefits will the position attract?
7. How will candidates be recruited?
8 Employment checklist
8. What advertisement copy/layout/style will be used? Prepared in-house/by agency?
Who will approve it? Who will be responsible for placing the ad? Which media will
be used to relay the ad?
9. Who will be involved in the recruitment and selection process?
10.Who will handle the induction?
11.Who will give job instructions/arrange for training?
12.Who will review the new hire’s performance during probation?
9 6.2 Recruitment methods

• Downsizings, financial costs and the increased legal requirements associated with
maintaining a full-time workforce have motivated employers to make greater use of
independent contractors, temporary workers and executive leasing
– This is despite the claimed advantages of internal promotion
10 Recruitment (internal vs external
sources)
11 Some internal recruitment methods

• Computerised record systems:
– Skills inventories
– Replacement charts.
• Job posting:
– Bulletin boards
– Newsletters
– Personal letters
– Computerised posting programs.
12 Some external recruitment methods
• International recruitment
• Advertising
• Employment agencies
• Management recruitment consultants
•

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•
• Executive leasing
• University recruiting
• Employer referrals
• Unsolicited applications
• Professional associations
• Trade unions.
13 Innovative recruiting programs
14 Innovative recruiting programs
15 Recruitment best practice

• Realistic job previews
• Recruitment sources
• Recruiter behaviours
• Employment inducements
• Recruitment activities
• Recruitment advertising
• Organisational image, reputation and symbolic attributes
• Creative, innovative and effective recruitment practices.
•
•
16 How to create advertisements that
enhance the image of the organisation
• AIDA technique:
– Attention (eye-catching, descriptive title)
– Interest (some of the critical points of interest: job detail, reporting relationships,
qualifications)
– Desire (offering incentives; apart from salary, appeal will be emotive)
– Action (call for action – ask/invite communication).
17 E-recruitment and HRM

• The application of web technology in recruitment originally focused on time and
cost savings via the automation of standard administrative tasks
• The emergence of cloud computing and big data analytics now offer both significant
challenges and strategic benefits to HRM and organisations:
– Improved employer image
– Sophisticated analysis of recruiting methods and sources
– Superior matching of applicant bio-data with employer requirements
18 E-recruitment
• Involves recruiting via the internet (external) and intranet (internal).
• All major companies now use some form of e-recruiting.
•

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•
• Provides significant potential benefits to organisations and applicants, but also
downsides and risks.
• Research shows that e-recruitment generates a greater quantity of applications but
not necessarily candidates of a higher quality.
•
19 Example of a web-based recruiting
system
20 Social networking sites

• Recruiting is now one of the most important HR applications of social networking
sites such as Facebook and Google+ (social) and LinkedIn (professional)
• The HR manager can glean considerable career-related information about both
passive and active job seekers, undertake detailed searches and track desired
candidates
• The use of social networking sites in recruitment has raised a number of ethical,
privacy and equal employment opportunity issues
21 6.3 EEO and recruitment
• Recruitment of women
– A significant barrier is stereotyped thinking.
– Glass ceiling
• Glass walls
– Women in trades and non-traditional occupations
– Women in sales
•
22 6.3 EEO and recruitment

• Recruitment of people with disabilities
• Recruitment of older workers
– Grey ceiling
• Recruitment of migrants
• Recruitment of Aboriginal Australians and Torres Strait Islanders
• Recruitment of lesbian, gay, bisexual, transgender and intersex workers
•
•
23 6.4 Evaluation of recruitment

• It is important to consider short and long-term outcomes, including:
– Productivity
– Quality
– Costs
– Time
– Soft data

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24 Summary
• Recruitment is a form of business competition.
• The job needs to be clearly identified and defined and the type of candidate
required must be specified.
• Organisations that are regarded as good employers have the least trouble attracting
high-quality candidates.
• Evaluation of recruitment is essential and must be ongoing.
25

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1 Chapter 7
Employee selection
2 Learning outcomes
7.1 Explain strategic selection
7.2 Understand the need for an employee selection policy
7.3 Evaluate the validity and reliability of selection procedures
7.4 Describe the different selection procedures and discuss the compensatory and
successive hurdles
approaches to selection decision making
3 7.1 Strategic selection

• Selection
– The process of choosing the best qualified candidate/s from a group of applicants.
• Strategic selection
– Linking of selection activities to organisation’s strategic business objectives and
culture.
• Selection criteria
– Key factors in making a decision to hire or not to hire a person. May include
qualifications, experience, special skills, abilities or aptitudes. They should be job-
related.
–
4 Selection criteria focus
5 Candidate fit
6 7.2 Selection policy

• EEO
• Quality of people
• Sources of people
• Management roles
• Selection techniques
• Employment consultants
• Industrial relations
• Legal issues
• Organisational strategic business objectives
• Costs
• Social acceptance
7 7.3 Validation of selection procedures

• Validity
–

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•
– The ability of a test or other selection technique to measure what it sets out to
measure.
• The correlation coefficient
– Positive, negative, high and low
– Typical range 0.20–0.50
– 1.0 is a perfect score
– Zero is no relationship
• Two basic approaches used by HR Managers:
– concurrent validity and predictive validity
•
8 Reliability
• Reliability
– The extent to which a measure (for example a test) is consistent and dependable.
– Types
• Test-retest
• Split halves
• Parallel forms
•
9 7.4 Sample selection procedures
10 E-selection
• Companies are increasingly using internet technology for high-tech, graduate and
high, large volume appointments.
• Social networking sites (i.e. Facebook, LinkedIn) are used as screening devices and
sources of information about job applicants.
• The challenge for HR managers is to make appointment decisions based on
consistent and non-discriminatory information.
11 Application forms and EEO
requirements
• Some questions/topics not to include:
– Marital status
– Residency status
– Ethnic origin
– Organisations
– Photographs
– Race or colour
– Relatives
12 Application forms and EEO
requirements
•

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• The following may be job-related in some circumstances:

– Age
– Gender
– Religion
– Military service
– Physical disability
– Medical information
– Height and weight
– Body modifications
13 Tests
• Interest
– Compares interest patterns to those of successful employees
• Aptitude
– Special abilities (clerical, linguistic)
• Intelligence
– IQ
14 Tests
• Physical
– Physical characteristics
• Personality
– Measures personality or temperament
• E-testing
– using computers and the internet to administer employment and psychological
tests
15 Interview
• Unstructured
– Few planned questions, more in depth
• Structured
– Uses predetermined checklist of questions
• Behavioural
– Past behaviour as the best indicator of future behaviour
• Panel
• Group
• Video
16 Research and the employment
interview
17 How to interview successfully

•

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• Know the job, personal characteristics, skills and qualifications expected

• Set specific objectives
• Provide the proper setting for the interview – put the applicant at ease
• Review the application form or resume
• Beware of prejudice.
• Don’t make snap decisions
18 How to interview successfully

• Encourage the applicant to do most of the talking, but the interviewer must still keep
control of the interview
• Explain the job
• Close the interview
• Write-up the interview properly
• Check references and evaluate the whole process.
•
•
•
•
19 Medical examination
• Ensuring people are not assigned to jobs they are physically unsuited for
• Safeguarding the health of current employees
• Identifying symptoms of drug and alcohol abuse
• Not placing applicants in positions that can aggravate existing injuries
• Protection against workers compensation claims, and determining eligibility for
insurance.
20 Screening tests
• HIV/ AIDS
– All Australian defence recruits are tested. Army also has bans on recruits with
diabetes and gout.
– China, South Korea and Singapore require an AIDS test before granting work
permits to Australians.
• Substance abuse
– Drug and alcohol
• Genetic
– Whether someone is genetically susceptible to certain diseases
21 Other selection techniques

• Biographical information blanks: for example: attitudes, hobbies, sports, club

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•
membership, years of education, health, early life experiences, investments, sales
experiences.
• Computer screening: Screening via resume scanning.
• Polygraph: Lie detector
• Honesty: Evaluate honesty and integrity
• Graphology: Handwriting analysis
What issues can you identify with these?
22 The selection decision

• Compensatory
– Considering all the selection data (favourable and unfavourable) before a selection
decision is made.
• Hurdles
– Involves the screening out of candidates at each stage of the selection process.
•
23 Two approaches to the selection
decision
24 Summary
• An organisation’s ultimate success depends on the best applicants being selected.
• Jobs and people must be matched correctly.
• Selections training is very important.
• HR Managers have a key role in educating others in valid and reliable processes.
•
25

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1 Chapter 8
Appraising and managing performance
2 Learning outcomes
8.1 Discuss the relationships between strategy, performance management and
performance appraisal
8.2 Appreciate the importance of performance management
8.3 Identify and explain the objectives of performance appraisal, the sources of error in
performance appraisal, the major types of performance appraisal systems and
electronic performance monitoring
8.4 Describe e-performance appraisals and the use of social media in performance
appraisals
3 Learning outcomes
8.5 Understand the importance of goal setting in performance improvement
8.6 Understand the need for a well-organised performance appraisal document
8.7 Understand the importance of an effective performance review
8.8 Appreciate the impact of EEO on performance appraisal
4 8.1 Strategy, performance management
and performance appraisal
• Performance management
– Aims to improve organisational, functional, unit and individual performance by
linking the objectives of each.
• Performance appraisal
– Concerned with determining how well employees are doing their job,
communicating that information to employees, agreeing on new objectives and
establishing a plan for performance improvement.
5 8.2 Performance management
6 Key elements of performance

management
• Creation of a shared vision.
• Establishment of performance objectives.
• Use of a formal review process to evaluate functional group and individual progress
towards goal achievement.
• The linking of performance evaluation and employee development and rewards to
motivate and reinforce desired behaviour.
7 8.3 Performance appraisal

Deming’s view:
• Individual employees do not differ significantly in their work performance.
• Any observed differences are simply the result of sampling error.
•

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•
• Any variation in employee performance is predominantly a result of factors outside
the individual’s control.
• Management appraisers are incapable of distinguishing between employee-caused
and system-caused variations in performance.
What do you think?
8 Introducing an appraisal program

• Define purposes of appraisal program.
• Program consistent with organisational objectives, culture.
• Full understanding of and support for program.
• Involve employees, managers in development
• Performance standards and evaluation are clear, job-related, fair, objective.
• Establish training sessions.
• Provide formal procedure for employees to challenge performance appraisals.
• Monitor the program.
9 Purposes of performance appraisals
10 Performance appraisal objectives

• Discriminating on the basis of performance
• Rewarding performance
• Developing employees
• Giving feedback to employees
11 Tips for giving effective feedback

• Maintain regular dialogue with staff
• Give concrete examples and comparisons
• Give feedback that includes both positive and negative aspects of performance
• Explain how individual performance is liked to corporate objectives
• Discuss methods of improving performance
• Monitor staff member’s performance post-discussion
12 Conducting performance appraisals

• Those conducting performance appraisals:
– are familiar with the job responsibilities and performance objectives.
– have sufficient opportunity to observe the employee’s job performance.
– have the know-how to distinguish between behaviour that produces effective or
ineffective job performance.
13 Raters of employee performance

• Supervisors
• Peers
• Self
• Subordinates
•

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•
• Multisource or 360 degree
– Involve colleagues, supervisors, customers and subordinates
– Popular in companies with teams, TQM and employee involvement programs
• Team appraisals are also becoming common.
–
14 360 degree performance appraisal
15 Multisource evaluations
16 Multisource evaluations
17 Some rater errors

• Rater errors
– Halo effect
– Central tendency
– Leniency/strictness bias
– Prejudice
– Recency effect
– Relationship effect
18 Major types of performance appraisal
systems
• Ranking
• Grading
• Graphic scales
• Critical incidents
• Behaviourally anchored rating scales
• Behaviour observation scales
• Essay description
• Management by objectives
• The balanced scorecard
19 8.4 E-performance management and e-performance appraisals

• E-performance management systems can record both formal and informal
performance evaluations
• Organisations use e-performance management systems are that they believe
technology will streamline the performance appraisal process, cut costs and
decrease the time and effort needed to manage employee performance
20 8.5 Static and dynamic
performance appraisals
• Static appraisal programs:
– Focus on the past, not the future.
•

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–
• Dynamic appraisal programs emphasise:
– Goal establishment
– Performance feedback
– Performance improvement (see figure 8.19).
21 Goal setting
• Setting specific goals is more likely to lead to higher performance.
• Goals that are perceived to be difficult to achieve result in better performance.
• Employee participation in goal setting tends to lead to higher goals being set than
when the manager unilaterally sets the goals.
• Frequent performance feedback results in higher performance.
• Employees will set higher goals if evaluated on performance rather than simply on
goal attainment.
22 Goal setting
• It is important not to:
– evaluate employees in factors over which they have no influence or control.
– subject employees to ‘punishment’ because they improve their performance.
23 8.6 The performance appraisal record

• A document that is used to record the ratings and comments for an employee
• Valuable tool for:
– goal setting
– defining performance levels
– facilitating job performance review discussion
– identifying training and development needs
– identifying low- and high-potential employees
– rewarding performance
24 8.7 The performance review discussion
• Three factors are important:
– The manager’s knowledge of the employee’s job and performance.
– The manager’s support of the employee.
– The manager’s involvement of the employee in the discussion.
25 Purpose of the performance review
discussion
• Mutually review the employee’s responsibilities.
• Mutually review the employee’s performance.
• Mutually explore what each party can do to ensure performance improvement.
• Mutually review the employee’s short-term and long-term goals.
26 Preparation for the performance
review discussion
• Review job description and read the employee’s last appraisal.

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• Review job description and read the employee’s last appraisal.

• Check performance against mutually agreed goals.
• Consult with other managers who have contact with the employee.
• Alert the employee well in advance about the forthcoming review.
• List all key points to be discussed at interview and allow sufficient time for the
discussion.
•
27 Conduct of the performance review
discussion
• Problems should be discussed as problems not criticisms.
• The review should not be used as a vehicle to attack the employee’s personality.
• The employee should be encouraged to talk.
• Specific performance improvement objectives should be set.
• The manager should discuss only those things that can be changed, and should
avoid using positional authority.
28 8.8 Performance appraisal and EEO

• Job analysis must be used to develop the system.
• The performance appraisal scheme must be behaviour-orientated rather than trait-
orientated.
• Managers must be given definite instructions and training on how to undertake
appraisals.
• Results must be communicated to employees.
• There must be a provision for appeal in the case of disagreement.
29 Summary
• Performance appraisal is a management program; it is not just an HR department
responsibility.
• It is also an important motivator and employee development tool.
• Management should understand that an organisation’s strategic business objectives
are better achieved through satisfying individual goals.
• The fairness of the performance appraisal system strongly affects how employees
feel about the organisation.
30

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1 Chapter 9
Human resource development
2 Learning outcomes
9.1 Explain the meaning of strategic human resource development
9.2 Understand the importance of human resource development to organisational
success
9.3 Discuss the need for EEO in training and development
9.4 Explain the need for a systematic approach to training and development
3 Learning outcomes
9.5 Outline the major human resource development methods and techniques;
distinguish between training and development; and discuss e-learning, big data, social
media and their effects on HRD and HRM
9.6 Describe the key characteristics of an effective orientation program
9.7 Understand the main principles of learning psychology
4 9.1 Introduction
• Human resource development (HRD)
– Includes training and development, career planning and performance appraisal.
The focus is on the acquisition of the required attitudes, skills and knowledge to
facilitate the achievement of employee career goals and organisational strategic
business objectives.
• Education
– Activities designed to improve the knowledge, skills and abilities of an individual.
5 9.2 The need for HRD
• Business and economic changes
• Technological changes
• Organisational changes
• Social, legal and other changes.
Please note,
• Research suggests that HR development expenditure can send a powerful signal to
employees of the organisation’s commitment to its people.
•
•
6 9.3 EEO and training and development

• Access: Opportunities for training and development
• Treatment: The way people are treated during the training and development
program
• Content: Subject matter and style of presentation
•

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•
• Language: Presented only in English
• Attendance: Making employees attend programs they find offensive
7 Equal opportunity issues in training and development
8 9.4 Strategic HRD

• HRD can be a platform for organisational transformation and renewal:
– Implementing a new policy
– Implementing a strategy
– Effecting organisational or cultural change
– Changing an organisation’s culture
– Meeting a major change in the external environment or solving particular
problems.
9 Reasons for the absence of strategic

human resource development
• Organisations lack or have ill-defined strategic objectives.
• Top management views training and development as unnecessary.
• Organisations neglect long-term considerations.
• Organisations do not analyse training and development needs.
• Evaluation of training is ignored.
10 9.5 HRD methods and techniques

• It is essential to consider:
– the scope of training programs
– training beyond just the immediate job requirements
– a systematic approach to training and development, including
• assessment
• activity
• evaluation.
11 A systematic training and
development model
12 Training needs analysis
13 The activity phase

• Process methods
– Classroom activities
– Simulation
• Machine simulators
• Interactive simulation
• Part simulations
•

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•
• Vestibule training
• Management training.

• On-the-job experience includes:
– Coaching
– Understudy assignment
– Mentor
– Job rotations
– Project assignments
– Small site management
– Secondments
– Behaviour modelling

Other activities can include:
• Action learning
• Competency-based training
– Skills approach where the focus is on performing tasks to a predetermined
standard
• Apprentice training
• Traineeships
• Supervisory and management training
• Corporate universities
• Diversity training
16 Measures of training effectiveness
17 Four common experimental designs
18 9.6 Orientation
• Orientation
– The introduction of new employees to their job, their colleagues and the
organisation. Considerations include:
• content
• timing
• formal and informal activities
• orientation packages
• follow-up
•
19 Orientation program content

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20 9.7 Psychological principles of learning

• The best situation is one where people want to learn. However, people learn in
different ways. Some considerations include:
– relevance
– reinforcement
– transfer of training
– knowledge of results
– distribution of learning
– Whole versus part learning
– Practice and learning
– Activity versus passivity
– Learning styles.
21 Learning preconditions
22 Learner-centred learning
• Adults learn differently to children.
• Considerations include:
– the need to know
– the need to be self-directing
– greater volume and quality of experience
– readiness to learn
– orientation to learning.
23 The learning curve
24 Summary
• Accelerating rates of change and global competition have meant that HRD has
become an important organisational and national issue.
• Training starts when an employee enters an organisation.
• To improve performance and avoid employee obsolescence, the employee should
undergo further (and regular) training and development.
• Training and development activities reflect the capacity for individuals to grow and
change.
25

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1 Chapter 12
Employee remuneration
2 Learning outcomes
12.1 Understand the need to link remuneration policies and practices to an
organisation’s strategic business objectives and identify the key objectives of employee
remuneration
12.2 Explain the mechanics of common job evaluation systems and discuss
computerised job evaluation and e-remuneration systems
12.3 Discuss pay surveys and how they can be used in the design of an organisation’s
remuneration program
12.4 Explain pay ranges
12.5 Discuss the gender pay gap and senior executive remuneration
12.6 Explain how to link pay to performance.
12.7 Explain how pay increases can be used to recognise the employee’s contribution
to the organisation
12.8 Describe the concept of incentive remuneration and why its use is spreading.
4 12.1 Strategic remuneration

• Remuneration
– What employees receive in exchange for their work. Includes pay and benefits
(total remuneration) or just pay (cash remuneration).
• Strategic remuneration
– Involves remuneration practices being aligned with the achievement of the
organisation’s strategic business objectives.
5 Types of employee rewards
6 Remuneration policy
• A remuneration policy should:
– reflect the organisation’s strategic business objectives and culture
– articulate the objectives that the organisation wants to achieve via its
remuneration programs
– be communicated to all employees
– provide the foundation for designing and implementing remuneration and benefit
programs.
•
7 Remuneration program objectives –
for the organisation
• Attract and keep desired quality/mix of employees
• Ensure equitable treatment
•

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•
• Motivate employees to improve their performance
• Reinforce organisation’s key values, desired culture
• Drive and reinforce desired employee behaviour
• Ensure remuneration is maintained at the desired competitive level
• Control remuneration costs
• Ensure optimum value for each remuneration dollar spent
• Comply with legal requirements.
8 Remuneration program objectives –
for the employee
• Ensure equitable treatment
• Accurately measure and appropriately reward performance and contribution to the
achievement of the organisation’s strategic business objectives
• Provide appropriate remuneration changes based on performance, promotion,
transfer or changing conditions
• Provide regular remuneration and performance reviews.
9 Agency theory and remuneration objective and policy setting

• Owners or shareholders of the company (the principals) are reliant on managers (the
agents). This relationship is defined as agency relationship.
• There is no guarantee that goals and interests of shareholders and managers will be
same.
• To avoid agency cost, organisations should provide incentives to reward behaviours
and results that are in the best interests of the shareholders.
• Moral judgements became the focal point after the global financial crisis as
managers acted immorally and took excessive risks.
10 12.2 Job evaluation

• Job evaluation
– The systematic determination of the relative worth of jobs within an organisation.
– Concerned with ‘how big’ or ‘how small’ a job is.
– Aim is to ensure that jobs of different sizes or relative worth attract the
appropriate pay differentials.
– Basis for establishing the organisation’s job hierarchy and associated pay
structure.
•
11 Example of job ranking
12 Examples of job grading
13 Example of a point system
14 Which system should be used?

• Basis for decision
–

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•
– Objectives
– The size of the organisation
– Plan users
– Corporate culture
– Employee attitudes
• An appropriate job description is necessary for any job evaluation scheme.
•
15 Job description
16 12.3 Pay surveys

• Pay survey
– The vehicle for relating an organisation’s pay rates to those of similar jobs in other
organisations.
• Benchmark jobs
– Jobs that are similar or comparable in content across firms.
•
17 Job evaluation and the pay survey

• Pay structure
– Presents all pay ranges over the whole spectrum of job sizes
– Essential tool in remuneration administration.
• Pay line
– Graphically depicts the remuneration currently being paid for jobs, related to job
size.
18 12.4 Pay ranges

• The standard range: most generally accepted pay range for professionals and
managerial position is plus or minus 20 from the midpoint pay.
• Broadbanding: involves the clustering of numerous individual pay grades into a few
broad pay grades.
• Market posture:
– pay above market average or
– pay market average or
– pay below market average.
• Selecting a policy pay line.
•
19 Pay trend lines
20 12.5 Equitable remuneration

• Pay secrecy: occurs where pay is kept confidential between employer and employee.
• Pay compression: When workers perceive that the pay differential between their pay

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•
and that of employees in jobs above or below them is too small.
• Gender pay gap: there are number of ways that gender discrimination in pay rates
can occur (see next two slides)
– US female managers receive only 81 cents for every dollar earned by their male
counterparts.
21 Gender pay gap
22 Gender bias in job evaluation
23 Equitable remuneration
• Senior executive pay: remains a concern for researchers, shareholders, policymakers
after the global financial crisis.
• Setting pay rates:
– Seniority
– Pay for performance
– Skill-based pay (next slide).
24 Pay for performance

• Merit pay: any pay increase awarded to an employee based on their individual
performance.
• Merit pay aims to:
– Distribute rewards based on individual performance
– Establish greater individual accountabilities
– Promote employee development
• According to Jack Welch, former CEO of General Electrics, ‘rewards those members
of the team who deserves it’.
•
25 Major factors affecting merit pay
increases
26 Skill-based pay
• Skill-based pay
– A system that compensates employees on the basis of job-related skills and the
knowledge they possess.
– Employees are paid for the skills, competencies and knowledge they are capable
of using and not for the job they are performing, their job title or seniority.
–
•
27 12.6 Relating pay to performance

• The compa ratio is the ratio or pay index between the average pay for a particular

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•
job point or grade and the midpoint of the pay range for that point or grade
• Using the same concept, it is possible to develop a corresponding performance
range and index.
– Then it is a simple matter of matching the performance index with the pay index
(compa ratio) to determine the appropriate increase that best equates with
performance.
28 12.6 Relating pay to performance
29 12.7 Pay increases

• Pay increases recognise the employee’s contributions to the achievement of the
organisation’s objectives.
– In most organisations, pay rates are reviewed annually.
• Types of pay increases include:
– Merit increases
– Promotional increases
– General adjustments
– Automatic progression
– Pay reviews
30 12.8 Incentive remuneration

• Guaranteed (base pay) vs. at-risk remuneration (bonuses, stock options), see next
slide.
• Bonuses
– Discretionary rewards paid for achieving performance targets.
• Options
– An option to buy shares at some future date (usually, but not always, if certain
performance targets are met).
•
31 Guaranteed vs. at-risk remuneration
32 Summary
• Employee remuneration is a critical part of strategic HRM.
• Money must match the message.
• No system for compensating employees is perfect.
• To be of value, benefits must be related to organisation's strategic business
objectives and to employee needs.
• A systematic approach to remuneration reduces level of subjectivity and increases an
organisation to attract, retain and motivate employees and enjoy a competitive
advantage.
33

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1 Chapter 17
Employee health and safety
17.1 Appreciate the importance of a safe and healthy work environment
17.2 Describe what governments must do to create a safe and healthy work
environment
17.3 Describe what management and employees must do to create a safe and healthy
work environment
17.4 Discuss the emergence of e-OH&S
17.5 Discuss some major current health and safety issues
3 17.1 Introduction
• OHS is concerned with the provision of a safe and healthy work environment.
• OHS programs should be linked with the organisation’s strategic business objectives
to seek competitive advantage by promoting employee commitment.
• Poor OHS performance equates with poor HRM, and poor ethical, legal and social
responsibility.
4 Occupational health and safety
strategies
5 Examples of workplace health and

safety hazards
6 Causes of accidents
7 Benefits of a safe and healthy working environment

• Improved personal safety
• Reduced overheads, insurance claims, insurance premiums, uninsured losses,
retraining, relocation
• Improved productivity
• Reduced spoilage, wastage, machine shut-down
• Reduced re-work
• Compliance with OHS Act requirements
• Increased trust, morale, job satisfaction
• Lower labour turnover, absenteeism
• Reputation as employer of choice
•
•
8 OHS
• Safety and health must be considered when:
– jobs are designed
–

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–
– employees are selected
– employees are trained and developed.
What would be the consequences of not doing so?
9 Strategic OH&S
10 17.2 Government regulation of OH&S

• Australian Safety and Compensation Council (ASCC)
– The national consultative body on OHS and workers compensation.
• Self-regulation
– Applies when employers are held responsible for providing a safe and healthy
work environment.
• Tripartite approach
– An approach to OHS involving the active participation of employers, unions and
government.
11 17.3 Managing workplace health and

safety
12 Elements of OH&S success
13 17.4 E-OH&S
• OH&S activities, similarly, can benefit from the application of web technologies.
– E.g. Sensors can allow for machinery and equipment to be monitored in real time
for wear and tear, corrosion and temperature allowing malfunctions to be quickly
identified.
• Big data facilitates the individual profiling of employees allowing the HR manager to
better understand and predict behaviour and to identify OH&S workplace issues.
14 17.5 Current occupational health
and safety issues
• Bullying in the workplace
• Dementia
• Depression
• Domestic violence
• Fly-in, fly-out work
• Home-based workers
• Obesity
• Sexual harassment
• Smoking
15 Stress in the workplace
• Stress
– A condition of strain that affects one’s emotions, thought processes and physical

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•
– A condition of strain that affects one’s emotions, thought processes and physical
condition.
• Stressors
– The conditions that cause stress.
• Sources of employee stress are virtually endless. However, three general groupings
can be made.
16 Sources of stress
17 Work factors
• Work overload
– Burnout
• A state of mental, emotional and physical exhaustion that results from
substantial and prolonged stress.
• Work underload
– Rust-out
• Stress produced from having too little to do.
• Shift work
18 Work factors
• Interpersonal relationships
• Change
• Organisational climate
• Physical environment
• Role ambiguity
•
•
19 Some additional factors

• Government laws and regulations
• Travel
• Community values
• Crime
• Personal and family affairs
•
20 Job stress: personal and organisational consequences
21 Substance abuse
• There is increasing evidence that more and more employees are turning to alcohol
and drugs to overcome stress.
• If organisations are to deal effectively with workplace substance abuse, a clear,
unequivocal policy statement defining the rights and responsibilities of the employer
and the employee is essential.

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22 Alcoholic warning signs
23 Substances of abuse
24 Current occupational health

and safety issues cont.
• Terrorism
– According to a former director of the US National Security Agency, industry is now
a primary target for terrorist groups and anti-war groups seeking to impose global
political and economic change.
• Violence in the workplace
– the industries most at risk of workplace violence in Australia include health,
welfare and community services, restaurants, education, retail, and road and rail
transport.
25 Work-life balance
• Employee surveys consistently show that work–family conflict affects productivity,
job satisfaction, psychological strain, labour turnover and family satisfaction.
• More and more organisations are reorganising the traditional way work has been
structured because it is no longer compatible with the needs of today’s working
families.
26 Summary
• Organisations have ethical, legal and business obligations to provide their
employees with a safe and healthy working environment.
• OHS is part of every manager’s job and not just the responsibility of the HR manager
or safety specialist.
• HR managers must be at the forefront in promoting safe and healthy work
environments and in stimulating managers to be aware of and accept their
responsibilities.
•
27

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1 Chapter 18
Managing diversity
18.1 Describe diversity
18.2 Outline the legal requirements associated with diversity
18.3 Review the impact of diversity on HRM and apply approaches to diversity
management
18.4 Summarise various levels of diversity management
18.5 Explain diversity-oriented leadership
18.6 Relate diversity to organisational culture and climate
18.7 Recognise an ‘inclusive’ workplace
18.8 Appraise the management of cross-cultural diversity
18.9 Outline how globalisation influences diversity issues
18.10 Propose how current HRM practices affect the future potential for diversity
4 18.1 Introduction
• Diversity
– Difference or unlikeness. A diverse workplace includes people from different races,
ethnicities, age groups and sexes who have dissimilar cultural beliefs and values.
• Diversity management
– A process of managing employees’ differences and similarities so that individuals
can achieve maximum personal growth and can contribute positively to
organisational goals.
5 18.2 Diversity as a concept and legal
requirements in Australia
• Diversity has been categorised in three dimensions:
– demographic (e.g. gender, ethnicity, age)
– psychological (e.g. values, beliefs, knowledge)
– organisational (e.g. occupation tenure, hierarchical level).
• Researchers have differentiated diversity using:
– observable attributes (e.g. ethnic background, age, gender)
– non-observable attributes (e.g. personal values)
– functional characteristics (e.g. knowledge, skills).
6 The Australian context of workforce

diversity
• Affirmative Action (AA): Programs which organisations undertake with the aim of
achieving equal opportunity for disadvantaged groups (such as women) and

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minority groups in the workplace.

• Human rights legislation: Legislation designed to consider the right of people,
especially the most vulnerable in society, to moral protection.
• Equal Employment Opportunity (EEO): Giving people a fair chance to succeed by
avoiding discrimination based on unrelated job factors such as age, race, sex or
nationality.
7 Major Australian legislation
• Racial Discrimination Act 1975
• Sex Discrimination Act 1984
• Affirmative Action Act 1986
• Human Rights and Equal Opportunity Commission Act 1986
• Equal Employment Opportunity (Commonwealth Authorities) Act 1987
• Human Rights and Equal Opportunity Act 1991
• Disability Discrimination Act 1992
• Equal Opportunity for Women in the Workplace Act 1999
• Age Discrimination Act 2004
• Workplace Gender Equality Act 2012
8 The legal requirements

• Anti-discrimination and equal opportunity legislation makes it illegal to discriminate
because of characteristics such as:
– age
– sex
– race
– impairment
– marital/parental status
– religious beliefs.
• All Australian states and territories have relevant legislation.
•
9 18.3 HRM approaches to diversity
management
• A useful definition of diversity management is that of a ‘process of management,
particularly HRM, underpinned by a set of values which recognise differences
between people as strengths for management’( Kramar, 1998).
• Four major philosophical principles are suggested:
– the differences and similarities of individuals need to be managed simultaneously,
10 18.3 HRM approaches to diversity
management
– the identification of its dimensions needs to be addressed and applied at each

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–
level of an organisation diversity,
– management must involve managing an all-inclusive mixture of differences and
similarities involving every person in the workplace,
– management needs to involve the process of ‘inclusion’ in the process of
developing a new workplace culture.
11 The impact of diversity on HRM

• HRM planning strategies:
– Strategic integration
– Employee commitment
– Flexibility
– Quality
• Diversity must be considered in all HRM activities, including recruitment and
selection, training and development, performance management and career
development .
12 Three HRM roles
• Diversity management:
– A process of management, particularly HRM, underpinned by a set of values which
recognise differences between people as strengths for management.
• HRM diversity roles at different levels:
– Strategic
– Managerial
– Operational.
13 HR strategies for managing diversity
14 Productive diversity
• Workforce diversity and its effective management have been recognised as assets.
• Productive diversity:
– The utilitarian version of multiculturalism.
• Key concepts:
– flexibility
– multiplicity
– devolution
– negotiation
– pluralism.
•
15 Benefits of diversity management
16 18.4 Levels of diversity management

•

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• Three main levels:

– individual
– group
– organisational.
• Four types of diversity organisations have been identified:
– negative
– minimalist
– compliant
– comprehensive and proactive.
17 Phenomena associated with social categorisation

• Stereotyping
– Categorising people using generalisations that are often based on prejudice.
• Prejudice
– Refers to people’s attitudes towards members of other groups that are based on
faulty, incorrect and invalid generalisations.
18 Phenomena associated with social categorisation

• Harassment
– A particular form of discrimination designed to humiliate, offend, intimidate or
otherwise make a person feel unwelcome or inadequate.
• Discrimination
– Unfair treatment of a person or minority group based on prejudice, consisting of
three types; direct, indirect and structural (or systematic).
19 Types of discrimination
• As previously outlined, there are three types of discrimination:
– Direct: Where an irrelevant criterion is used to exclude a person or group from an
opportunity.
– Indirect: Where a seemingly neutral practice or decision advantages an individual
or group.
– Structural: Results from interaction of historical decisions, policies and social
attitudes.
•
20 18.5 Diversity-oriented leadership
• Describes the kind of leadership that:
– Values and affirms differences in an organisation;
– models appropriate behaviour and;
– by doing so, creates an inclusive workplace.
• HR managers must engage senior management to commit to, and be accountable

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•
for, diversity management.
• Diversity and organisational culture:
– An important consideration (and ongoing challenge).
21 18.6 Diversity and organisational
culture
• Organisational culture gives members an organisational identity, facilitates
commitment, and shapes workers’ behaviour.
What is your experience of organisational culture where you are working / have
worked?
• Organisational climate:
– can be understood as a property of the individual;
– consists of shared perceptions about how the work environment is experienced by
members.
22 18.7 Inclusive workplace

• In order to create an inclusive workplace, organisations may need to value and utilise
individual and intergroup differences; collaborate with individuals and groups within
the organisation; and both cooperate with and contribute to the surrounding
community as a means of alleviating the needs of disadvantaged groups.
–
23 18.8 Managing cross-cultural diversity

• Managing cross-cultural diversity:
– One of the most important challenges facing corporate leaders, HR managers and
consultants.
• Developing staff is an increasingly important aspect of the HR manager’s role.
• Overseas learning is an important focus.
•
24 Comparison of low-/high-context
cultures
25 Cultural dimensions
26 Cultural competence
27 18.9 Globalisation
• In helping the organisation deal with globalised diversity, the HR manager will have
at least two major areas of interest:
– Developing staff. Employees need to have an attitude and the skills suitable for
communicating with people from other countries,
– Overseas learning interventions. The HR manager may be required to arrange,
design or implement learning experiences in another country.

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28 18.10 The future of diversity

management
• Diversity management is a source of competitive advantage.
• Assessing diversity management
– supports people building a shared future together (for an inclusive workplace).
– requires a willingness to consider diversity not as a theory, but as a way of life.
– places HRM policies and practices at the centre of a company’s diverse workforce.
29 Summary
• Diversity management is about developing new and better organisations that value
difference.
• Diversity among people is best developed by HR managers able to influence the
organisation in many ways.
• HR managers need to develop different strategies to deal with local, national and
overseas differences, and suitably engage others to do so as well.
30

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Human Resource Management Complete Notes

Human Resource Management (Swinburne University of Technology)

Studocu is not sponsored or endorsed by any college or university

1 Chapter 1: Strategic human resource management

5 Human resource management (HRM)

7 Human and social capital

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8 HRM and management

10 Eight key roles for an HR Manager

11 Eight key roles for an HR Manager

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15 HRM, productivity & organisation performance

16 Ethical issues and HRM

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17 Ethical issues – influencing factors

20 Strategy and stakeholders

- Who are the stakeholders of this

21 Examples of stakeholder interests

23 Examples of stakeholder interests

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25 HRM strategies must:

27 Strategic HRM objectives and activities

28 The purpose of HR policies

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30 Evaluating outcomes and performance

31 The HRM challenge

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5 2.2 The importance of HR planning

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needs rather than on the organisation’s long

12 2.4 Approaches to HR planning

13 2.4 Approaches to HR planning

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14 HR planning and HR forecasting relating

15 The quantitative approach

16 The qualitative approach

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24 Fly in, fly out workers

25 2.6 Exit management

27 Exit management planning

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3 3.1 Strategic HRM and human resource

6 HR vs. payroll systems

8 3.2 Use of HRIS

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11 Legal and management concerns

15 Relationship with other departments

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17 Acceptable use policy

18 3.4 HRM and the internet

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24 3.5 Evaluating the HRIS

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4 4.1 HRM and the law

6 4.2 Sources of legal obligations

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19 Direct vs. indirect discrimination

20 The job advertisement and legal