Role of Human Resource Management !!Strategic Role of Human Resource Management !

• Management of total relationship between employer and employee to achieve strategic goals of business !

• Main functions are recruitment, equal opportunity, training, development, separation and aligning with business goals (REDSAT)!

• open communication and seeing employees as assets and not costs necessary for achievement of goals !

• Business can undertake strategic approach to managing employees by:!• seeing effective workforce as value adding to business performance !• focusing on use of strategies to retain, reward and motivate staff !• business develop performance review measures to examine effectiveness/efficiency of staff !

• Qantas employs over 32,000 people and their HR function helps them achieve their goals, minimise costs, improve quality in working life!!

Contemporary strategic challenges !• Develop and retain talented staff !• Improve leadership !• Ageing Workforce !• Succession Planning !

• Management must develop strategic HR plan based on this intelligence and then should be translated to operational plans. !!

Interdependence!• Small businesses- general manager and employees responsible for HR!• Large businesses- specialist HR teams and managers !• In large businesses, HR manager is member of executive committee and plays role in strategic

planning !• As span of control widens, need to delegate roles to line managers!

• responsible for management of staff contributing to prime function of business!• production manager, service manger etc !• involved with negotiation with unions and preparing for tribunals !• Necessary to ensure policies and procedures are followed and business is on track !

• When HR becomes part of senior executive,!• Collaborate in executive decisions about strategic issues (change in product etc)!• Aware of global trends, labour market issues, IR policies !• Developing strategic HR plan using audit information which is translated into operational

plans !• Therefore, HR management has evolved from support function to core function, assisting with

efficient management of staff and building culture that is aligned with business goals on all levels !• The position of Design Engineer for Apple would require specific knowledge and skills

that need to be specified by operations !• Lack of training was identified as a key factor contributing to the quality problems

experienced at Foxconn prior to the launch of the iPhone 5!• Marketing will need to communicate with human resources to ensure Apple retail

employees are adequately trained in current marketing strategies !

Outsourcing!• Driven by need to reduce costs and improve productivity amidst increased pressure to be

competitive spurred by globalisation !• Increasingly used amongst SMEs that lack resources for specialist functions and

professionalism!• Focus on core whilst experts assist for planning, development and management !

• Can also be used to review business practices through independent consultants (no bias), improve quality, focus on core, increase speed !

• Subtle difference between outsourcing and subcontracting is that outsourcing involves tasks that can be performed internally whilst subcontracting not necessarily !!

!Contractors (clear legally binding terms, timeframes, conditions, compensation etc are vital)!• Most commonly domestic, external provider of services that create cost savings and

access to greater expertise !• Can be obtained for most functions but generally used for repetitive, non-core processing

functions as well as support or compliance-related activities (payroll)!• Firm focus on essential business activity and leave detailed support to experts, seeking

fresh ideas and improved quality without resources required to achieve it in house !• Risks include loss of quality and difficulty coordinating activities, timeliness,

communication!• Global subcontracting is popular due to pressure from global competition!

• offshore contractors in India, Philippines to reduce costs !• also used as first step towards operating in a new market overseas and get

acquainted with foreign market conditions !• risks like cultural differences during customer service, security information, foreign

legal system !• Process outsourcing- repetitive, easily measured and documented work (food

preparation, customer complaints)!• Project outsourcing- found in areas like HR, marketing, IT and involves greater use of

intellectual property and strategic business knowledge. Longer time, cannot be measured easily!

• In 2013, Apple had approximately 80,300 full time equivalent employees and an additional 4,100 full-time equivalent temporary employees and contractors !

• Jetstar outsources its call centre to Melbourne Operator Sales Force !• Qantas established a base in London for 400 of its international flight attendants, saving

$18 million !

Functions commonly outsourced Areas commonly outsourced for review/development

Recruitment Training needs evaluation

Induction Benchmarking

Leadership training Written policies and programs

Mediation Compensation systems

Payroll Performance management systems

Types of subcontracting

!!

!!!!!!!!!!!!!!!

Form Features

Labour hire/employment agency • Workers are employees and are leased to host company!

• Super, insurance, compensation are managed by labour hire company

Independent contractors • Sole traders operate their own business!• Set own times and conditions !• Engaged by client under commercial contract

but not legally considered an employee !• Make their own superannuation etc

Dependent contractors • Do not have control over their working procedures !

• Prevented from working for multiple clients

Outsourced suppliers • Supply goods and services to range of businesses!

• Managers supervise their own employees!• Control their work procedures and can work

for multiple clients!• Manage superannuation etc for their

employees

Advantages Disadvantages

Expand capacity/flexibility Less integrated organisation

Improve quality Quality may fall

Save costs Consultants may not understand culture

Access new networks Hidden costs

Conserve capital Less face to face client contact

Transform culture Loss of security

Key Influences on Human Resource Management !Stakeholders!

• Have common interest in survival and success of business!• Not all interests are shared and conflict can arise !!!Stakeholder (Major objectives)

Description

Employer!• Increase profit !• Minimise costs!• Competitive and expand!

• Individual/organisation that pays others to work for them, dismiss etc!

• Handle HR management on daily basis and take responsibility for organisation’s goals !

• Responsibilities increasing as legislation encourages them to negotiate agreements and resolve disputes !

• Major flaw is inability to handle people, which is becoming major training area now

Employee • Employer controls location, way work is performed!• Now more educated and become bored quickly and demand

challenging work and increased decision making !• Increasingly churning and moving from business to business to

build careers (thus increased retention necessary)!• Work-life balance is another key issue !• Labour shortages looming due to ageing population !• Qantas employs 32,000 full-time, all of which concerned about pay

levels, working conditions and job security !• Apple employs 43,000 in US and 20,000 overseas

Employer association • Created as counter party to unions to represent employers in making of awards !

• Assist in formulating policies and processing logs of claims !• Act on behalf of employers in collective bargaining and before

industrial tribunals !• Provide advice about discrimination, unfair dismissal and negotiate

agreements !• Qantas is member of Australian International Airlines Operation

Group, represent interests to government at federal level

Trade Unions !• Better wages !• Working conditions!• Meaningful jobs!• job security !• participation in decisions

• Organisations formed by employees in a particular industry or trade to represent in efforts to improve wages and working conditions of members !

• Membership peaked in 1900s but has fallen !• Represent during disputes, superannuation schemes, advice,

cheap home lone, legal services !• Decline due to poor image in media, legislative changes that

reduce power, growth of service industries, growth of casual/part time jobs !

• Qantas has workforce consisting of 16 different unions which played major role in resolving industrial disputes !

• Apple Retail Workers Union launched in 2011 to empower workers to discuss working conditions and better compensation, training!

• Despite better employee education, unions still needed as they provide specific knowledge and represent members interests in coordinated manner whilst performing its other functions too

!Employees given greater power to make agreements advantages are: flexibility, more specific conditions for workplace and enterprise, effort of individual worker recognised!!Disadvantages are: costly to initiate, inequity in the workplace, individuals might not be able to articulate worth that well ! !

Legal Influences !!

Government • Legislator, employer and economic manager (ensure non-inflationary, stable economic growth and high standard of living)!

• Australian Industrial Relations Commission creates national system and simplifies industrial relations !

• Fair Work Australia provides advice and helps understand workplace rights and responsibilities (simplified)!

• Settle disputes through conciliation, supervise making of agreements, award simplification, unfair dismissals !

• Purpose was to simplify the industrial relations process and reduce business costs through greater certainty and efficiency in dealing with industrial manners !

• Statutes provide framework for awards and agreements and require employers to meet OHS standards, compensation, superannuation, leave, anti-discrimination !

• Fair Work Act 2009 introduced national employment standards, national framework for industrial relations and 122 modern awards !

• All employers/employees have same rights irrespective of state!• Industrial tribunals and courts enforce these laws and settle

disputes, supervising making of agreements, hear appeals and handle unfair dismissal cases !

• Breaches result in penalties !• Australian Human Rights Commission and Equal Employment for

Women Agency all implement particular areas of government legislation !

• Shift from dual federal and state to national IR framework so employers only negotiate under one framework

Society • Voters make views clear if there are threats to employment or conditions at work !

• Community demands safety and wellbeing at work !• Increase pressure to eliminate discrimination against females,

indigenous, disabled

Stakeholder (Major objectives)

Description

Influence Description

Employment Contract

• Legally binding, formal agreement between employer and employee !• Every employee has contract but written one gives more protection and

encourages clarification of duties and rights !• Legally enforceable when one party offers and other accepts, both parties

benefit and both are legally able to create contract

Awards • Awards contain minimum terms and conditions of employment in addition to any legislated minimum terms for an industry.occupation !

• May include penalty rates, wages, hours of work, superannuation, rest !• Usually cover lower skilled occupation groups and determined by FWA

Enterprise Agreement

• Collective agreements made at workplace level between employer and group of employees !

• Single- made between single employer and group of employees!• Multi- made between two or more employers and group of their

employees!• Greenfields- single and multi relating to genuine new enterprise that are

made before any employees to be covered are employed. Made with relevant unions !

• Must be approved by FWA who must be satisfied that agreement is genuine, passes a better overall test, expiry date, flexibility clause and allows for bargaining

Other types of employment contracts

• Individual common law- cover employees not on federal agreements, common at professional and managerial level, many are informal, require to provide conditions that equate with minimum provisions of related awards, individual employee negotiates contract !

• Independent contractors- freelancers that do not take legal status of employee, multiple clients, set term or specific project, submit invoice at completion, cover own superannuation and tax (thus popular as less on-costs)!

• Casual work- short term, irregular or seasonal work. Work period may vary, not entitled to paid leave but receive 20-25% loading to compensate for lack of entitlements and job security. Have difficulty obtaining credit due to fluctuating income but popular due to low on costs for businesses !

• Part time- same as full time but less than 35 hours and benefits on pro-rata basis !

• Breaches in contract are notified to the Fair Work Ombudsman and then Fair Work inspectors are able to then investigate workplace complaints and provide assistance in resolving them

Common Law • Developed by courts and tribunals!• Isn’t created in parliament but rather through decisions made over time by

judges !• Obligation of employers are: provide work, payment of income and

expenses, meet industrial relations legislation, duty of care !• Obligation of employees are: obey lawful and reasonable commands, use

care and skill, act in good faiths and in interests of the employer (secrets or intelligence)

Minimum Employment Standards!!Provides greater safety net especially for most vulnerable and low paid employees

• Expanded from 5 under work choices to 10 under Fair Work Act 2009!• Maximum weekly hours: 38 + reasonable !• Requests for flexible working arrangements!• Parental leave- 12 months unpaid !• Annual leave- four weeks paid !• Personal and compassionate leave!• Community service leave !• Long service leave!• Public holiday- paid day off !• Notice of termination and redundancy pay- 4 weeks notice and 16 weeks

redundancy pay !• Provision of Fair Work Information statement

Minimum Wage • Determined by award or national minimum wage (for those not covered by awards)!

• $589.3/week and $15.50/hour for full time

Influence Description

OHS!• Most common

causes of accidents are inexperience, poor training and unsafe conditions

• Safe Work Australia established to develop national standards, code of practice!

• Enforced by state governments !• Workplace Health and Safety Act 2011!• Safe system of work, plant and substances safe, information, training,

supervision!• Fined if they put other employees at risk !• Deaths and injuries notified to WorkCover!• Employee: take reasonable care, cooperate with employers, comply with

OHS requirements, refrain from risky behaviour !• Evaluate effectiveness of OHS programs through safety audits and use of

consultants

Workers Compensation

• State legislation provides range of benefits to employee suffering from work related injury or disease !

• Administered by WorkCover in NSW !• All employers must have insurance, keep register of injuries, notify

insurers within 48 hours, establish injury management and return to work plan and pass on compensation as soon as possible !

• Failure is $55 000 fine or imprisonment!• Aim is to help them recover and get back to work as soon as possible !• Benefits for partial or total incapacity to work, medical treatment, loss of

function !• Not payable if deliberate or arise due to misconduct !• Provisional liability payments (12 weeks, $5000)!• Lump sum for permanent impairment capped at $250k plus weekly

income and medical costs !• Pain and suffering compensation if impairment greater than 10% ($50k)!• Employees can take common law redress if negligent or breached their

duty, permanent body impairment of more than 15%!• Successful settlement means no more further payments but will receive

workers’ compensation as well

Anti Discrimination !Grounds:!• unfair dismissal!• damage ability to

do job!• changing

employees job to disadvantage !

• treating differently

• Discrimination occurs when policy or practice disadvantages person or group because of characteristic that is irrelevant to performance !

• Direct discrimination: recruitment or selection, benefits, training !• Legislation protects indirect and direct discrimination in recruitment,

training, selection etc !• Human rights and equal opportunity commission act 1986 Cwth!• Affirmative Action Act 1986 Cwth, Sex Discrimination Act 1984, Anti

Discrimination Act 1977 NSW !• Agencies include Australian Human Rights commission and Anti-

Discrimination Board NSW!• Race, sex, sexual preference, age, disability, religious faith, political

opinion !• Conciliation, apology, formal warning, counselling are solutions

Equal Employment Opportunity

• Equitable policies and practices in recruitment, selection, training and planning !

• Ensure best person for job is chosen !• Women and minority group access to different occupations/positions in

business !• Reflected by grievances or legal action taken against business !• More than 100 employees means affirmative action program needs to be

created to provide report for Equal Opportunity for Women in the Workplace Agency!

• Report must establish workplace profile and analyse specific issues, report on actions taken to address issue and describe action plans !

• 16:19 ratio in management roles for Apple, which is pretty good

Influence Description

!A centralised IR system is a collectivist approach in which disputes are referred to industrial tribunals like FWA. In a decentralised IR system, employers and employees negotiate wages and working conditions in the individual workplace, through collective or individual bargaining without the involvement of tribunals !! !!

Economic Influences !Economic Cycle!• Demand for labour determined by demand for good and services within the economy!• Labour shortage during economic growth means employers compete for employees with

higher wages !• Booms: low levels of unemployment and increased salaries !• Recession: greater uncertainty and job losses !• Consumer spending, unemployment rate and inflation are indicators of economy !• In 2012, Apple technicians were unhappy with their jobs because it wasn’t very satisfying

but were unable to leave because there were no other work opportunities in such a weak economic environment!!!!

Structural Change !• Change in nature and pattern of production of goods and services within an economy !• Growing in property, business, retailing, tourism, education !• As each sector grows, recruitment, selection and remuneration become important !• In manufacturing, removal of tariffs has increased business exposure to international

competition !• Places greater value on skilled workers, increases employment opportunities in services

and results in greater requirement for training !• Restructuring- firms change organisational structure and functions, often closing down

sections or removing jobs no longer needed or too expensive to operate !!Globalisation !• Increased levels of international competition !• Many restructure, outsource or subcontract production in order to compete effectively !• Increasingly prepared to relocate production units where dispute levels, labour and

regulatory costs are lower !• Awareness of multicultural workforces, need to retain staff !!

Technological Influences!• Cause nature of production and services to change and new jobs to be created and made

redundant !• Business access employees at home!• Increases need for ongoing training programs and new protocols !

• High demand for Apple’s products have create a significant number of employment opportunities, particularly in the areas of sales and repairs !!

Social Influences !Changing Work Patterns!• Dramatic growth in part time and casual work - trend known as labour fragmentation !• There are more part time and casual employees at Qantas driven by their need to reduce

costs and improve international competitiveness!!Career flexibility and job mobility!• Workers take more control over careers, moving from company to company !• Many leave full time positions after developing specialist skills to become consultants or

contractors !• Learn new skills to adjust to changes in jobs or train themselves for new jobs !!Rising female participation rate!• Influence on workforce is reflected in increasing calls for work-life balance !• Recent improvements in parental and carers leave options !• Qantas increase in participation of women with 42% of all employees women !!Ageing of workforce !• Shortage of skills over next few years !• Flexible working arrangements like job share and part time critical in utilising ageing

workforce !• Need to respond by upskilling population and create incentives to postpone retirement !!Early retirement!• Popular, with average age of retirement at 53 !• Older employees use gradual withdrawal approach to retirement by going into part time !• Growing number of people return to work for financial reasons or to relieve boredom !!Living Standards!• Australia’s high living standards include OHS, regular wage increases, performance

bonuses, fringe benefits !• Companies who seek to undercut conditions through excessive outsourcing and

casualisation are challenged by unions !• Rising participation of women in work due to expectations of home ownerships, holidays !• Concerns about loss of weekends for families, working flexible hours and shifts !• Globalisation challenges these conditions !!

Ethics and CSR !• Issues handed unethically can lead to low productivity, costs and industrial disputes !• Ethical business practices are those that are socially responsible, morally right,

honourable and fair !• pleasant working environment that is motivating !• performance and motivation maximised through security !

• good working relationships !• Code of conduct should be developed with major stakeholders (statement of acceptable

and unacceptable behaviours in a business) !• Staff retention and absenteeism rates improve!• Business costs are reduced with performance enhanced + good publicity !• In 2009, 12 employees successively jumped from buildings over a period of less than 6

months as the working conditions at Foxconn were poor, involving very little pay and lots of overtime work !

• Some worked overtime more than 28 hours more than the legal limit !• In response, Apple launched an international search for the most knowledgeable suicide

prevention specialists- particularly those in China !!!Working Conditions!• Safe and fair working conditions that improve welfare!

• compliance with social justice and industrial legislation !• safe and healthy working environment !• interesting and challenging work !• communication and fostering teamwork!• training opportunities, rewards, benefits!• work life balance!

• Outsourcing and subcontracting has ethical issues !• Businesses are sensitive to consumer concerns due to success of lobby groups and

actions !• Ethical businesses respond by demonstrating CSR through strategies like undertaking

audits of factories abroad and collaborating with agencies !! !!!Processes of Human Resource Management !

• Two major aspects of human resource planning are:!• short term and long term human resource needs (through audit)!• strategy to meet these needs !

Acquisition !• Obtaining of employees and analysing !

• Internal environment- business goals, culture (influence demand for specific skills)!• External environment- economic conditions, competition, technology !• Undertaken through staff interviews, observations, reports from performance

appraisals !• Job analysis and job design required to identify needs for new positions !• Job specifications and descriptions then developed and prepared for applications !!Recruitment, selection, placement!• Recruitment is process of locating and attracting right quantity and quality of staff at the

right cost !

• Employee selection involves gathering information about each applicant and using that to choose the most appropriate one !

• Effective recruitment and selection involves:!• hiring qualified, motivated applicants with values and goals that align with culture !• fair, non discriminatory, legally compliant !• placement- locating employee in position that best utilises their skills !

• Qantas identifies job needs through the conducting job analysis!• They then gather a pool of potential employees through both internal and external

recruitment- interview, personality test, background check, physical exam !• Apple co-ordinates overseas recruitment program when outsourcing its operations to

partners overseas !!Development !

• Concerned with improving employee skills and knowledge, increasing productivity !• Ensure experienced and talented staff are retained and enhances motivation and

commitment (usually through promotional opportunities)!• Competency and recognition for achievements = motivate and performance !!Steps Process

Induction!!High chance of leaving within first 3 months

• Carefully planned to introduce new employee to job, co-workers and business culture !

• Gives employees positive attitude to job and business !• Builds confidence !• Safety policies and procedures !• Good working relationship with other business members

Training • To seek long term change in employee skills, knowledge and attitude !• Improve work performance and more flexible workforce with reduced

waste!• Overcome business weakness and build on strengths!• New skills to help adapt to change and stay ahed of competition !• Poor training = turnover as staff seek development in other businesses !!Formal course- industry recognised but inflexible hours !Informal- hands on, suits workplace needs but no qualifications!Consultant- experienced and qualified but costly !!Step 1: Assess needs of individuals (skills, attitudes), needs of job (competencies) and needs of business (culture, standards) !Step 2: Determine objectives of training program for all involved !Step 3: Consider internal and external influences !Step 4: Determine content of training program and the learning methods applied !Step 5: Evaluate training program through observation and benchmarking !!Apple: induction ranges from days to weeks depending on position, but all have strong focus on customer service !!Qantas: $275 million a year invested in development and training !

!Maintenance !

• Processes needed to retain staff and manage their wellbeing, industrial relations and legal responsibilities such as compensation and benefits !

• These are the ways to improve maintenance !Communication and Workplace Culture !• Strength of business’s communication leads to effective workplace relationships !• Poor communication is reflected by conflict and high turnover !• Communication methods include seminars, social functions, email, team meetings!• Recognition of staff achievements and constructive communication builds positive

workplace culture !!Employee participation !• Encouraged as it improves communication and empowers employees to develop their

commitment to improving quality and efficiency !• Trained to make some decisions on the spot as leads to quicker and more efficient

service!• Knowledge on the job and experience critical !

Organisational Development !!Helps motivate and retain talented staff

• Less hierarchical and flatter in structure !• Benefit from employees’ ability to develop shared ideas and solutions !• Improve efficiency and effectiveness in responding to customer needs !• However reduces promotional opportunities !• These methods used to retain talented staff:!!Job enlargement- increase breadth of tasks!Job rotation- move from one task to another, multi-skilling !Job enrichment- increase responsibility !Job sharing- two people share the same job

Mentoring and Coaching

• Mentoring is mutual agreed role, which suits experienced staff keen to transfer knowledge and skills!

• Focused on building personal relationship and encompasses more than work life !

• Coaching focused on improving skills and performance on helping individuals manage specific work roles !

• More structured and used by those seeking development

Performance appraisal

• Systematic process of analysing and evaluating employee performance for strengths, weaknesses and opportunities, generally against criteria!

• Assess employee suitability for promotion and potential value !• Provide feedback about work performance, measuring stick against

promotion and pay rise, identify training and developing needs !• Employees suitability for promotion !• Low performance indicates need for change in selection and training !• Formal written notice if performance is unsatisfactory and how to improve !• Types of appraisal tools include!!Interviews (flexible and detailed but struggle face to face discussion), performance ranking (easy but can be biased), 360 degree feedback (employees receive feedback anonymously from everyone but can be open to conflicts) behaviour observation scale(supervisor observes and records evidence of behaviour and performance over time)

Steps Process

• Suggestion boxes are a tool for employee participation, building sense of shared purpose!!Benefits!• Monetary or non monetary !• Flexible working arrangements, training opportunities, travel allowances, insurance !• Carefully consider value of these benefits as they are expensive and attracted fringe

benefits tax !• Fringe benefits include airline transport, expense accounts, accommodation!• Flexible working arrangements are common now, including child care, family support and

work different types of leave!• creates positive image !• high morale and less absenteeism!• lower training cost as talented staff retained !

• Apple told some employees in 2012 about a new initiative called “Blue Sky” that allows a small group of staff to spend a few weeks on a pet engineering project. !

• It is an initiative for hatching new ideas and allows employees to spend up to a fifth of their time on projects outside their normal responsibilities !!

Legal compliance and CSR!• Employers required by law to ensure HR procedures and policies comply with legislation !

• anti-discrimination, OHS, taxation, social justice, IR!• Bullying and sexual harassment and conflict with employees are major causes of stress,

absenteeism and turnover !• Creating workplace where staff treats each other well is essential for wellbeing and

retention !• training for cultural awareness !• company policy to deal with bullying!• promoting open communication !

• Major focus to implement proactive and preventative strategies for these issues !• Qantas uses remuneration to recruit and train qualified staff, the increase job

satisfaction and reward peak performance and reduce staff turnover !• Is a major cost to Qantas- 3% increase in pay per year !!

Separation!• Voluntary or involuntary, causes employee to leave business !• Voluntary: resignation, relocation, voluntary redundancy, retirement!• Involuntary: contract expiry, retrenchment or dismissal !

• Must be managed carefully in compliance with legislation and agreements to avoid claims of discrimination !

• Redundancy can result from closure of workplace, completion of project, lack of contracts, downturn in demand or financial difficulties !

• Document evidence required for redundancy including financial statements !• Matters considered when determining who will be retrenched are the length of service,

standard of performance, future potential !• When employee is terminated, employer must provide a written statement confirming the

termination and date of determination !

• Notice and leave entitlements must comply with legislation and industrial agreements !!Dismissal!• Summary dismissal- instant that applies to employees involved n gross or serious

misconduct !• must meet test of being fair and reasonable, determined by FWA !

• Employer must make reasonable effort to investigate allegations and allow employee to resound !

• Dismissal can also be based on poor performance or redundancy !• give employees written warning about poor performance !• support and advice so they have opportunity to improve !• notify reason for termination if it happens !!

Unfair dismissal!• Occurs when employee is dismissed harshly, unreasonably or unjustly (such as not

genuine case of redundancy)!• Fair Work provides grounds for unfair dismissal claims!• Employees can claim unfair dismissal if:!

• business has more than 15 employees who have been employed for more than 6 months!

• process for dismissal has not been carried out correctly !• Cap of 6 months pay is maximum compensation !• Businesses avoid risk by hiring casuals and contractors and tightening employment

contracts and included job descriptions !• Apple retail jobs continue to fall as a result of the popularity of online purchasing and the

ease of use and flexibility of Apple’s online stores all around the world. !• With GFC and increase in international competition, Qantas has been forced to downsize

its staff over recent years !!Strategies in HR Management !

Leadership Styles !• Basic management approaches:!

• Classical authoritative- planning, organising and controlling, decisions made in long chain of command !

• Behavioural (participative/democratic leadership style)- leading, motivating and communicating, employees involved in decision making !

• Contingency- using most appropriate approach depending on circumstances !• Australia has a very egalitarian society so does not respond well to direct leadership !• Employees feel committed when they are consulted, empowered and recognised for

achievements !• Open and honest communication, encourage, listen and support staff are the major

characteristics of effective leaders !!

• Qantas from 1995 has a more democratic style of leadership which came with privatisation !

• Steve Jobs exerted control over every aspect o the business in quest for perfection!• Over the course of a year he threw out two prototypes of the iPhone before accepting the

third. Job’s control even extended as far as the design of the company bus and the food served at the cafeteria !

• Turnover however was still low despite the demanding corporate culture!!Job Design !

• Process of designing the content of job and how it will interact with other jobs and employees !

• motivate and retain an employee to achieve the business goals !• Dependent on job analysis- detailed analysis of all the tasks, responsibilities, personal

attributes and relationships needed in position !• Employees are more motivated and likely to share ideas if they have autonomy, plan,

schedule and clear task identity !• Analyse work situation, identify takes to be performed, identify need for employees,

decide how job will fit in with work and implement changes slowly !!Job Design Methods !• Jobs can be flexibly shaped to fit changing needs of business !

• Can be reshaped as staff move on or needs change !• Job design is useful in developing knowledge and leadership skills of employees

identified for future promotion in succession planning !!

Leadership Style When it works best

Directive!• Emphasis on immediate compliance!• Autocratic, dictatorial

Crisis

Visionary!• Emphasis on long term vision and leadership

• Period of change !• When clear direction needed !• Motivation

Affiliative!• Emphasis on creation of harmony

• Build consensus !• Get input from valuable employees

Pace setting!• Emphasis on accomplishment of tasks to high

standards

• Get quick results from highly motivated and competent team

Coaching!• Emphasis on professional growth of

employees

• Help employee improve performance !• Develop long term strengths

Participative !• Emphasis on group consensus!• Generating new ideas

• Get input from valuable employees!• To build consensus

• Apple claims to be more interested in the personality than the technical knowledge of a candidate applying for a retail position !

• Apple’s outsourcing partners however have minimal requirements due to high turnover and the constant need to recruit !!

Specialised job design!• Jobs broken down into specialist skill areas to improve knowledge and skills, to increase

outputs, to reduce errors and to control quality !• Leads to greater challenges as work tends to be more repetitious and boring !• Less social interaction and often no identifiable end product !• Management assumes greater control !!!!!

Recruitment !• Process of locating and attracting right quantity and quality of staff to apply for

employment vacancies or anticipated vacancies !• Diverse workforce becoming more important in demonstrating CSR !

• Sources and methods used for recruitment depend on the recruitment goals and policies of business !

• Usually mix of internal and external recruitment and general and specific skills !• Poor selection leads to increased costs and lower productivity !

Method Advantages Disadvantages

Job Rotation • Multi skilling!• Challenging!• Better understanding of

business

• Experienced employees may not want to be learning new types of work

Job Enlargement • Increased motivation, participation in decision making!

• Pathway to promotion

• Overload!• Problems if employees are

not trained properly

Job Enrichment • Employee satisfaction!• Pathway to promotion !• Higher retention rates !• Opportunity for greater

rewards

• Lead to burn out

Semi autonomous work groups !!Multifunctional group of employees who take responsibility for production process or project without direct supervision

• Employee commitment !• Greater empowerment !• Opportunities for multi-skilling

• Conflict between members of group leading to productivity falls

Flexible work structures!Employees offered flexible options to meet personal needs

• More motivated employees!• Maximised retention!• Opportunity to use older staff

• Continuity of processes may be interrupted

• Apple considers applicants for retail positions who have submitted their resume through the company’s site !!

Internal or External Recruitment!• Internal- employees, former applicants and former employees !

• May be invited through intranet postings, staff records, promotion lists!• Employee referrals popular and useful for bringing in staff with right cultural fit !• Advantages- motivation for existing employees, builds commitment and loyalty,

employees know culture, cheap, recognition for effort!• Disadvantages- rivalries, poor working relationship due to competition, no new skill !!

• External- obtained through traditional methods like newspaper, online advertisements and recruitment agencies !• Advantage- wider applicant pool, new ideas/perspectives/solutions, specific skills

without training costs, more diversity !• Disadvantage- risk of unknown staff, takes a lot of effort and time, cultural misfit !!

General vs Specific Skills !!

!!!!!! !Training and Development !

• Training- develop skills, knowledge and attitudes that lead to superior work performance !• Critical in Australia which has shortage of skilled labour!

• Development is focused on enhancing skills of employees to upgrade their skills in line with changing and future needs of business !

• Business retains employees experience and knowledge of business !• Business needs to use systematic process to evaluate needs, supply of these skills in

economy and demand for these skills !

General Specific

• Focus on attracting staff with general skills, attitudes and behaviours that are good cultural fit for business !

• Job customised to suit recruits who can be trained and developed according to business needs !

• Key general skills are flexibility and versatility, willingness to learn !

• Cannot necessarily be taught!• Important for jobs that require independence !• Generally more service oriented

• Skill shortages and thus business targets employees with specific skills !

• Recruit overseas to overcome skill gaps !• Skills audits identifies gaps !• Employee poaching frequently used

• Shift to service based economy has led to obsolescence of manufacturing skills !• Qantas attempts to improve current or future employee performance by increasing an

employees’ ability to perform through learning, usually by changing their attitudes or increasing his or her skills and knowledge !

• $275 million a year in training and development over the past 5 years !!Performance Management !

• Systematic process of evaluating and managing employee performance in order to achieve best outcome for business !

• Evaluate individual performance and use that info to develop individual !• Can help business in two ways:!

• Developmental !• Model focused on using data to develop individual skills and abilities !• Helps them improve their effectiveness in roles, overcome weaknesses and are

prepared for promotion !• Best achieved through year round periodic feedback !

• Administrative!• Provide information which can be used by management for planning in HR

functions like training , development, rewards benefits !• Beneficial for business as it assists with HR planning, helps plan to overcome gaps or

weaknesses in performance, evaluation of rewards and benefits program and identifies training and development needs !

• Beneficial for individual as it helps assess rewards and benefits linked to performance, identifies strengths and weaknesses and initiative recognised/rewarded!

• Apple workers are judged on how many accessories they can add to the sale of a core product !

• Also being told to direct customers to buy accessories through the EasyPay system!!!Rewards management!

• Key strategy in attracting, motivating and retaining employees !• Can reinforce strategies to facilitate change or support desirable corporate values !!Monetary and Non Monetary Rewards !• Non-monetary rewards include those such as social activities or retirement planning that

do not have a financial value !• Intrinsic rewards are those that the individual derives from the task or job itself:

interesting work, challenge, promotion, safe and healthy work environment !• Extrinsic rewards are those given or provided outside the job: wages, incentives,

insurance, child care, other fringe benefits !!Individual or Group Award !• Gain sharing plan- involves benefits of improvement in productivity ,cost savings an

profit increasings !• rewards for teams and often used to support a team based culture!

• Key considerations are: rewards and benefits of competitors, economic conditions, organisational objectives of rewards !

• Key issues in designing reward and benefits system:!• Performance related- incentive plans for performance above standards or criteria !• Job related- role and level of responsibility, scope of supervision, base pay !• Other individual considerations- group incentives, employee’s values, specific job

conditions !• Equitability and clearness is necessary !• Apple released an Employee Stock Plan in 2003 that permitted the granting of:!

• incentive stock options!• stock purchase rights!• performance-based awards !!

Global Strategies !• Globalisation has significantly increased the complexity of managing human resources!

• High cost of skilled labour in Australia!• Shortage of skilled labour !

• Offshore always available but not as required in desired locations or quantities !• Business risk, service quality, business regulations !

• Polycentric staffing approach- use host country staffing with parent-country staff in management at headquarters. Cost efficient and satisfies local pressure for employment opportunities !

• Geocentric- staff with most appropriate skill set for particular role and location and builds a pool of managers with global experience. Works best when the most suitable person is sought and no financial limitations or pressure to hire local staff !

• Ethnocentric- use parent country staff in business. Works best when business wants to apply business practices from the home country!

• Compliance and cultural awareness all important !• Billabong uses a polycentric approach to staffing !• Qantas tailors its rewards systems to meet the circumstances of the host country!!

Workplace Disputes!• Conflict is inevitable and deputes can be formal, informal, covert or overt !

• All costly to business as well as reputation!• Covert disputes are conflicts that are only recognised by the business itself !• Workplace conflicts can lead to absenteeism, low productivity, legal claims !• Industrial dispute is disagreement over issue or group of issues between employer and

its employees, resulting in cease of work !• Strikes refer to situations where workers withdraw their labour and are most overt for of

industrial action !• Lockouts occur when employers close entrance to a workplace and refuse admission to

the workers. !• Used in long disputes to promote concession bargaining or to get employees to sign

individual agreements !• Picket line is established to prevent delivery of goods and to stop entry of non-union

labour into workplace !

• Common causes are remuneration, employment conditions, job security, health and safety !!

Resolution of Disputes!

!!!!!!!!!!!

Method Way

Negotiation • Discussion between parties that result in compromise or some sort of formal/informal agreement !

• Can benefit parties involved by increasing knowledge of company policy and workers concerns !

• Qantas prefers this

Mediation • Confidential discussion in non-threatening environment with the presence of neutral, objective third party !

• May be independent, representation from business, tribunal or FWA!• Allows parties to become empower by resolving their own disputes,

reduces the risk of disputes escalating and leading to legal cases

Grievance procudures • Formal procedures, generally written into an award or agreement that set out agreed processes to resolve disputes in workplace !

• Useful in reducing risk of issue rapidly becoming serious dispute !• Most businesses have established formal process !• Require full description of the complaint to be made by employee

with the complaint

Involvement of courts and tribunals

Conciliation and Arbitration!• Negotiation fails and is referred to FWA who appoints conciliation

member to hear both sides of dispute !• Conciliation is process where third party is involved in helping two

others reach an agreement during a conference !• Arbitration is process where a third party hears both sides of a

dispute and makes a legally binding decision to resolve it !• Qantas vs long haul pilots and qantas vs baggage handlers

Common law action • Open to any party involved in or affected by industrial action !• Parties may make direct claims for damages caused by other

parties or breach of contract!• Employer may ask state or territory supreme court of Federal Court

for injunction !• Costly and generally last resort

Effectiveness of HR Management !Indicators!

• Range of indicators to reflect on the effectiveness of human resource functions !• Can be compared to best practice businesses or internal divisions to determine strengths

and weaknesses as well as create basis for improvement- benchmarking !• Indicators are collated in human resource audits- diagnostic tools used to evaluate HR

polices and practices in order to identify problems and develop solutions !• Most common KPIs are output per employee, absenteeism, accidents, level of

disputation, worker satisfaction !• results must be communicated and acted upon by improvement plans !!

Corporate Culture!• Successful businesses maintain balance between concern for success and regard for

employees !• Better work and employment relationships begin with an understanding of how to develop

a positive corporate culture- values ideas, expectations and beliefs !• Indicators of poor corporate culture are high staff turnover, poor customer service,

absenteeism, accidents !• Built on quality of business’s communications systems and participation of employees in

decisions making !• Common features are pay more than basic rates, fun atmosphere, collaboration !!Benchmarking !• Compare business performance in specific areas against other similar businesses !• Informal benchmarking- networking through informal discussions with colleagues in

other businesses, visits or research best practice !• Performance- comparing performance levels with other business !• Best practice- comparing performance levels with those of another best practice

business !• Balanced scorecard- measuring whether activities of business are meeting its objectives

established in strategic plan !!Audits!• Used to analyse and evaluate HR activities and effectiveness !• Benchmarking against industry best practice, outside consultant conducts research to

analyse problem and suggest solutions !!Qualitative evaluation !• Detailed feedback and research on key issues, which allows judgements to be made

about changes in behaviour or quality of service provided !• Major sources of information include feedback from middle management and surveys !• Benchmarking major variables like absenteeism and industrial disputes essential in

planning for continuous improvement !• Consider domestic and international trends in management practices when planning

strategies for improving effectiveness !!

Changes in Staff Turnover !• Refers to separation of employees from an employer both voluntary and involuntary !• Often shown as percentage of total staff numbers !• Important to benchmark turnover against those of other businesses in same industry to

determine type of staff leaving and reasons !• Staff may leave to seek new opportunities, promotion, whilst others may leave due to

toxic workplace !• High turnover is expensive as there are costs involved with payout for entitlements, hiring,

inducting and training new staff !• Productivity and service quality lost but little turnover is OK as it means new ideas

brought in !• New workers at Apple are expected to give at least six years of service but the average

tenure is usually only 2 and a half years !• There are very high dissatisfaction levels amongst technicians or “Geniuses” !!Absenteeism!• Measured as the average rate of employe absenteeism on an average day, without sick

leave or leave approved in advance !• High levels indicate workers are dissatisfied or conflict within the workplace !• Revenue lost as work is disrupted and business needs to have higher staffing levels to

cope !!Accidents!• 5.3% of Australian workers experience work related injury or illness each year and young

males in physical work are most likely !• $60 billion cost per year in direct and indirect costs !• Direct- medical bills, compensation, insurance !• Indirect- wages and time lost, production delays !• Systematic, legally compliant approach to managing OHS necessary!• OHS indicators are benchmarked by:!

• Lost Time Injury Frequency Rates (number of lost time injuries x 1000000/total hour worked in accounting period)!

• Best practice businesses have regular safety audits, comprehensive safety programs, build culture of safety and provide careful induction and ongoing training !

• Some of Apple’s outsourcing partners have been criticised for the unsafe working conditions and the high rate of accidents occurring in their factories!

• Employees work excessive overtime and live in crowded dorms !• They stand so long that their legs swell until they can hardly walk !!Levels of disputation !• Various overt and covert manifestations of disputes that employers need to monitor and

evaluate!• Overt:!

• pickets !• strikes!• lockouts!

• dismissals!• Covert:!

• absenteeism!• labour turnover rates!• sabotage!• discrimination !!

Indicators of industrial disputation!• Work bans- ban or boycott, refusal to work overtime, handle a product, piece of

equipment !• Work-to-rule- refuse to perform any additional duties !• Go slow- work slower rate than normal!• Sabotage- vandalism, cyber attacks, theft !• Grievance reports indicators of poor quality relationships in workplace !• Determine whether issues relate to policies and processes operating within the business

or to specific individuals who require further training !• Making of awards and agreements and managerial policy are main causes of disputes !• Most common in large businesses where relationships and communication is more

impersonal !• In 2013, a dispute erupted between assembly line workers and quality control managers

as a result of new iPhone 5 aluminium casing being starched in the production process. Workers disputed the lack of training and abuse by managers !!

Worker satisfaction!• Key factor in employee commitment, job performance and staff turnover !• Surveys useful in helping employers measure and understand how staff feel about work,

management and culture of organisation !• Used to improve management style and processes, benefits and reward systems !• Feedback confidential and analysed by professionals qualified to interpret such feedback !• Satisfaction mainly comes from good relationships with coworkers and enjoying work

activities, receiving relevant training !• Effective leadership necessary !• Family-friendly culture, adequate breaks, rewards for effort !• Holistic approach to employees which values and cares for them- this is most effective in

building commitment, satisfaction and retaining effective employees