HRMT11011 weekly notes

Table of Contents
Week 1 – Strategic HRM (1) & Managing change (15)........................................................1
LECTURE.......................................................................................................................................1
WORKSHOP................................................................................................................................20
Week 2 HR Planning chapter 2 & 3...................................................................................21
LECTURE.....................................................................................................................................21
WORKSHOP................................................................................................................................32
Week 3 HRM and the law.................................................................................................32
LECTURE.....................................................................................................................................32
WORKSHOP................................................................................................................................32

Week 1 – Strategic HRM (1) & Managing change (15)

LECTURE

What is HRM?
 The focus is on managing people within the employer-employee relationship
 It involved the productive use of people in achieving the:
o Organisations strategic business objectives, and
o Satisfaction of individual employee needs
 HRM is either part of the problem or part of the solution in gaining the producing
contribution of people

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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 accumulated 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, teamwork and
work commitments

HRM and management

 HRM id management, but management is more than HRM
 HRM deals directly with people
 Management includes:
o Marketing
o Management information systems
o Production

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 o Research and development
o Accounting and finance

Approaches to HRM
 Instrumental (Hard)
o Stresses the rational, quantitative and strategic aspects. Performance
improvement and competitive advantage are highlighted
 Humanistic (Soft)
o Emphasises the integration of HR policies and practises with strategic
business objectives but also acknowledges employee development,
collaboration, participation and trust

The multiple roles of the HR Manager

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Roles of the HR Manager
 strategic partner
o Translate business strategy into action, becoming part of the business team
 administrative expert
o using technology, rethinking and redesigning activities
 employee advocate
o be the employees voice
 agent for change and cultural transformation
o catalyst for change
 Talent manager
o Attract, develop and retain core employees

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  Organisation ambassador
o Represent organisation in competent manner, market HR within organisation
 Board and senior executive resource
o Contribute to board members on HR policies practices to promote business
success
 Legal advisor
o Ensure legal compliance, monitor HR hazard risk

HRM Activities:
 Job analysis
 human resource planning
 recruitment
 selection
 performance appraisal
 human resource development
 career planning and development
 employee motivation
 change and cultural transformation
 health and safety
 remuneration and benefits
 employee relations and/or industrial relations
o employee relations focus on workplace relations, and deals with employee
attitudes and behaviour and the relationship between the organisation and
its employees
 A common indicator of organisation and HRM performance is productivity
 productivity is defined as an organisation total output of goods and services divided
by its total inputs
 productivity improvements are necessary for the economy an organisation to remain
competitive

HRM and Risk

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  The HR manager should be able to understand how and where things may go wrong
and the extent of any negative effects
 some examples of HR risks include
o behaviour
o reputational
o security
o culture
o talent
Ethical issues and HRM
 HR managers today are increasingly faced with complex, ambiguous and conflicting
issues involving questions of morality and standards of behaviour:
o What is good or bad? Right or wrong?
o Is management more responsible to shareholders or to its employees
o How should terminations be managed? What about monitoring employee
email, performance payments, spoken English levels?
 Influencing factors:
o Personality and national culture
o The situation and its importance to the individual
o Corporate culture
o The existence of:
 Clear, unambiguous organisational policies
 Codes of conduct

Whistleblower

6
HR and whistle-blower

What is strategy
 Strategy defines the direction in which an organisation intends to move and
established 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 policies or decisions
E-HRM and strategy

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  The emergence of e-HRM has the potential to enhance the strategic contribution of
HR
 Research indicates that where e-HRM is used to facilitate relationship opportunities
between the organisation and its employees via improved HR services, better
transparency and the direct empowering of employees the greater the trust in the
HR department

Big data, HRM and strategy

 Big data is a source of competitive advantage because it generates much valuable
information for use in HR strategic planning
 Big data analytics makes possible increasingly accurate predictions about the world
and its people

Examples of stakeholders interests

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Swot analysis

Strategic management
 Strategic management involves:
o Strategy formulation involves
o Organisation mission and objectives
o Environmental analysis
o Strategy selection and implementation
o Performance evaluation and feedback
Types of strategies
 Growth
 Retrenchment
 Stability
 A combination of growth, retrenchment and stability
 Internal strategies (global, multi-domestic, transnational)

HRM Strategies must:

 Reflect the strategic objectives and values of the organisation
 Be taken into account in organisational strategies (vice versa)
 Support culture, climate and organisational processes to attract and retain good staff
 Identify the organisations competencies and match people to these and
 Sustain and build organisational commitment

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Strategic organisation and strategic HRM objectives
 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
organisations strategic business objectives
Strategic HRM objectives and plans
 Strategic HRM objectives and activities must:
 be measurable
 include Deadline dates for accomplishment
 identifying involved key stakeholders and HR customers to ensure the necessary
collaboration and
 nominate the individuals or parties responsible for implementation
The purpose of HR policies
 the purpose of HR policies is to
o reassure employees that they will be treated fairly and objectively
o help managers make quick and consistent decisions
o give managers the confidence to resolve problems and to defend their
decisions
 procedures detailed precisely what action is to be taken In a particular situation
A strategic approach to HRM
 a comprehensive strategic Approach generates more informed and purposeful HR
management
 articulating the organisation mission or purpose, its objectives, it strategies , and
plans helps direct the setting of HRM objectives, strategies and plans

Strategic HRM diagnostic model

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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
 HRM activities stimulate and reinforce the behaviour needed to achieve the
organisation strategic objectives

HRM outcomes and performance

Evaluating outcomes and performance
 Adaptability

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  Commitment
 Competence
 Cost-effectiveness
 Job satisfaction
 Justice
 motivation
 performance
 trust
The HRM challenge
 HR managers need to
o be strategic contributors
o show the true value of the HR function to the organisation
o be the employee's voice
o demonstrate professional competence
 HR managers need to consistently demonstrate the connexion between HR,
organisational performance an employee well being
Summary
 The shift from an industrial society to an Information Society also presents HRM with
unique challenges, including
o creating a fair and just workplace
o managing people respectfully and creatively
o restoring trust loss through restructuring, downsizing and work pressures
 In the current environment HR managers need to
o adopt a strategic approach
o be apart of the top management team
o be involved in corporate planning and understanding the business
o become bottom line oriented
o development communicate a vision for HRM

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 WEEK 1 CHAPTER 15
Intro
 Rapid and constant change has altered their traditional employment relationship.
Change is everywhere, for example:
o workforce casualised
o lifetime employment gone
o unemployment high
o job security eroded
Forces for change

The erosion of trust

 Psychological contract:
o The unwritten expectations of an employee and an employer about what
each is entitled to receive and obliged to give
 When employee expectations are met, this leads to increased employee
commitment and intention to remain with the organisation
 When expectations are not met, this leads to reduced job satisfaction, poor
performance and high employee turnover

Key terms
 Employee voice
o The ability of employees to express their ideas, views and complaints to
management

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  Change agent
o A person who acts as a catalyst for change
 Corporate culture
o The values, beliefs, assumptions and symbols that define the way in which
the organisation conducts its business

HRM and change

 The organisational environment needs to be continuously monitored for:
o Uncertainty
o Volatility
o Magnitude of change
o Complexity
 High performing organisations exhibit:
o A move from centralised to decentralised HR
o Trend to adopt a more strategic approach to HR
o Development of performance management systems

Types of change

 Radical change
o Produces fundamental changes in the nature of the organisation
 Incremental change
o Involves gradual or small-step modifications to the organisations existing
strategies, structure, systems, culture and people
Planned vs unplanned change
 Planned change
o Change that is introduced and systematically implemented by a change agent
 Unplanned change
o Change that is the product of some spontaneous or ad hoc event
Steps in the change process
 the management of change involves:
o Determining the need for change
o Determining the obstacles for change

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 o Introducing change
o Implementing change
o Evaluating change
Change targets

Determining obstacles to change

 Managers need to:
o Identify all potential barriers to change
o Determine what is that is actually creating resistance
 Powerful barriers include:
o Existing organisational culture, shared values
o Current strategies, structures and systems

Practical change questions for the HR manager

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Introducing change
 Introducing change
o Managers versus consultants
o Top-down versus bottom-up
 Implementing change
o Unfreezing: Preparing the organisation for change, unlearning current
unfavourable behaviours
o Moving: Taking action to alter something so that change occurs
o Refreezing: Reinforcing the desired outcomes so that change is
institutionalised
Workplace change

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Why employees resist change

Managing learning and innovation

 Learning Organisations
o Focus on the acquisition, sharing and utilisation of knowledge
 Knowledge Management
o Deals with an organisations ability to collect, store, share and apply
knowledge in order to enhance its survival and success
o Knowledge management processes and effects can have a bearing on GRM
functions, including JRM strategy, staffing, HR development, organisational
culture, motivation, reward and recognition
 Intellectual Capital

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 o The knowledge that exists within an organisation
o Includes:
 Human capital
 Renewal capital
 Structural capital
 Relationship capital
Total quality management
 Continuous improvement
o Focuses on the non-stop improvement of everything and everybody
 Expected results from TQM
o Ability to anticipate, jeet and exceed customer’s expectations
o Gain competitive advantage via better products and services and improved
work processes
o Gain management and employee commitment
o Stay in business

Managing quality

Creating a quality culture Venerating the customer The championing of TQM

Measuring quality Securing union support
Striving for high standards Rewarding employees for
teamwork and quality
Involving people Training management and
employees in leadership
and team building
by top management
Starting with quality
Recognising that TQM is a
strategy that depends for
success on the effective
management of human
resources
Recognising that there is no
one best way of introducing
TQM

Acquisitions, mergers and divestitures

 Acquisitions
o Purchase of a firm/company by another
 Merger
o Combination of two or more firms to form one new company, often with a
new corporate identity
 Divestitures

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 o Selling selected operating units for either strategic or financial reasons
Changes to structure
 Restructuring
o Involves a major change to an organisation via downsizing, flattening,
elimination of departments and so on
o Ineffective HR management during restructuring include:
 The cost of lost talent
 lost productivity
 loss of competitive position
 the expense of union problems
 the cost of miscasting people
o During restricting HR should:
 Ensure a compelling strategic rational exists for the acquisition or
merger
 Move quickly to meld the two companies
 overcome conflict corporate cultures
 create retention incentives for key employees
 audit policies and practises of acquired company
 ensure the orientation of new employees
 redesign the remuneration programmes
 integrate management styles
 communicate restructuring decisions
 Downsizing
o A reduction in a company’s workforce to improve its bottom line
o Downsizing aims to achieve greater organisational efficiency by job
elimination
o downsizing can create hardships because of:
 ruthless retrenchment practices
 increased stress
 longer spells of unemployment
 reduced job opportunities for particular groups
o To make downsizing effective

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  promote open and frequent communication
 retain employees who have the competencies needed
 target specific inefficiencies, redundancies and low value activities for
elimination
 treat employees who lose their jobs with compassion and dignity
 generate excitement about the future by painting a vivid picture of
what the organisation plans to become

Changing the workplace

 Employing people involves a myriad of influences and tensions
 boundaryless careers mean that lifelong employment is now an anachronism
 Labour markets are changing constantly
 international employment boundaries are porous
 qualifications and work experience have become secondary to cultural fit

Summary
 the workplace is subject to many pressures and uncertainties
 Managers and worker alike are expected to embrace change and accept job
insecurity
 Managers must determine the need for change, identify obstacles to change,
implement change and evaluate its success or failure
 Change doesn’t occur in isolation – need to account for interrelationships

WORKSHOP
Stakeholder
 Primary stakeholder
o Direct/specific influence
 CQU example student, staff
 Secondary stakeholder
o General influence
 CQU example Fair trading, immigration, ato
Physical presence – Participation
Engagement – Participation + Involvement

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Week 2 HR Planning chapter 2 & 3
LECTURE

CHAPTER 2
 Define HR planning
 Identify key environmental influences on HR planning
 Understand he basic approaches to HR planning
 Describe the ways of forecasting HR requirements
 Describe requirements for effective HR planning
CHAPTER 3
 Describe the relationship between strategic HRM and HR info systems
 Explain the use of HRIS in contemporary HR functions
 Understand key issues that will determine the success or failure of HRIS

Human resource planning

 HR planning is he process of systematically reviewing HR requirements to ensure
that the required number of employees with the appropriate knowledge, skills and
abilities are available when needed
 HR planning can also be described as employment planning
 HR planning ensures that
o Available talent is correctly allocated
o Labour costs are controlled
o The number of staff is appropriate
o Talented employees are retained

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Organisational strategy and HR planning

Environmental influences on HR planning

 Globalisation
o Movement of labour internationally
o The ‘brain drain’
 Multigenerational workforce
o A new challenge for HR managers
o Traditionalists, baby boomers, Gen x and Gen Y have distinctive
characteristics at workplace

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Multigenerational workforce

Challenges for HR planning

 Scarcity of talent
o Talent is now the prime source of competitive advantage, not raw materials,
capital or technology
 Balancing short and long term needs
o A common mistake for HR managers is to concentrate on short term
replacement needs rather than on the organisations long range HR
requirements
 Labour mobility
o Is now a serious inhibitor to improved economic performance
 High cost of moving

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  Lack of infrastructure in regional towns
 High cost of housing
 Poo transport infrastructure
 Women in the workforce
o In Australia, flexible work practices, workplace culture and childcare support
have positively influenced women participation
o The desire for self-fulfilment, social relationships, financial pressure due to
global crisis are main reasons for increased workforce participation by older
women in the workplace
 Academic standards
o Migration vs education
Approaches to HR planning
 Three forecasts are needed:
o Demand for HR within the organisation
o Supply of external HR to the organisation
o Supply of HR available within the organisation

Forecasting internal HR supply and demand

Forecasting internal demand for HR

Quantitative approaches
 Trend projection
o Makes predictions by projecting past and present trends into the future
 Econometric modelling and multiple predictive techniques

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 o Complex computer models which simulate future events based on
probabilities and multiple assumptions
Qualitative approaches
 Expert opinion
o Usually the line manager
 Delphi technique
o Independent, anonymous decision making, followed by collation of results
and redistribution of information until consensus is reached
 Nominal group technique
o Independent ideas generation, presentation to the group and ranking of
options
Forecasting internal supply for HR
Qualitative
 Skills inventory
o Consolidates information on all employees, identify those suitable for
opportunities and asses short and long term organisation requirements
 Succession planning
o Takes a long term view of organisational HR needs
 Replacement charts
o Visual representations of present incumbents and potential replacements (or
lack thereof) for given positions
o A = age
o E = experience (years)
o P = performance rating

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Quantitative
 Turnover analysis
o Detailed examination as to why people leave an organisation
o E.g. retirement, resignation, illness, retrenchment, termination
 Markov analysis
o A mathematical technique used to forecast the availability of internal job
applicants. A matrix is developed to show the likelihood of an employee
movement (internally or by leaving the organisation)

Factors affecting external supply of HR

The HR manager must be alert to external trends including:
 The ageing population
 Increase female participation rates
 Increase school retention rates
 Immigration changes
 Child labour
 Casualisation of the workforce
 Reforms to 457 visa

Outsourcing

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  Outsourcing Is it mean 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:
o to free up resources
o to increase workplace flexibility
o to access additional capital
o to promote entry to new markets

Exit Management
 Globalisation, cost pressures, competition, technology and the global financial crisis
resulted in organisations to balance their current an actual number of employees
needed
 employee numbers are reduced by voluntary or involuntary termination
 employees targeted for separation may be selected on:
o groupings, performance, seniority and rank

Exit Management Fairness

 It is critical that exit termination process be ethical and fair that includes
o Procedural justice
 Process must be perceived by the management, employees and
unions as fair, acceptable
o Distributive justice
 Termination package must be perceived by all parties as fair and
equitable
o Interactional justice
 Terminated employees must be treated with dignity and respect

Requirements for effective HR planning

 Successful HR planning requires HR managers to ensure that
o HR personnel understand the HR planning process
o top management is supportive

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 o organisation does not start with a complex system
o regular and healthy communication between stakeholders are conducted
 HR plan is integrated with organisations strategic business plan and
 strike a balance between qualitative and quantitative HR approaches
CHAPTER 2

HRIS Human Resource Information Systems

 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

Maximising HRM capabilities

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HRIS Model

Use of HRIS
 in high-tech organisations technology is seen as a strategic competitive tool
 HRIS can assist in decentralisation of time consuming and expensive transactions
 This results in better informed and faster decision making
 Employees can access and update their own information (low value-added activity)

HRIS Concerns
 Confidentiality

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 o Potential for invasion and abuse of employee privacy by both authorised and
unauthorised personnel
 Legal and management concerns
o Cyberloafing – employee abuse of the internet and email
o Sending confidential information and or breaching IP rights
o Defamation or harassment claims
o Careful worded policies governing use of email and the internet are essential
o Need to find a balance between permissiveness and surveillance

Implementation of HRIS: the decision making process

 It is important to justify the cost of setting up and implementing an HRIS. There are 3
main options
o Design and inhouse system using either internal or external resources or a
combination of both
o Buy a system off the shelf and commence operation
o Buy a system as above but work with the vendor to modify tit better satisfy
the organisations requirements
HRIS Design

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Relationships with other departments
 The HRIS must be in line with the organisation’s strategic objectives
 It must 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
HRM and the internet
 it's increasingly, HR managers are using internet to:

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 o recruit, select potential employees
o Administer remuneration, benefits
o conduct research, access electronic databases
o 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

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
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?
 Is the costs of HRIS outweighed by the benefits?
 Is the HRIS enhancing perception of GR 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?

WORKSHOP

Week 3 HRM and the law chapter 4

LECTURE
Essential terms of employment contract

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workplace policy
 a workplace policy is 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 conducts, rights and obligations of the parties to a contract of employment
 a workplace policy can regulate begly all aspects of employment, including
recruitment, termination, disciplinary procedures, confidentiality and more
considerations
 restraint of trade
o limits an employee's ability to engage in similar employment for specified
period
 Confidentiality agreements
o during and after the course of employment
 whistle blowers
o legislation provides protection for individuals who seek to properly disclose
dishonest, corrupt or unethical dealings, for the public interest
 workplace intellectual property
o an invention created during the course of employment will usually belong to
the employer, not the employee
 moral rights
o however, the employee may still have rights with respect to the inventions
created during the course of employment

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Period of notice

Redundancy requirements

WORKSHOP
 Assignment 1 discussion

Employee or contractor
Hollis (Employee) v Vabu (company) Pty Ltd
Hollis worked for Vabu used a bike to make food deliveries and got hurt, Vabu has no
obligation to protect Hollis and make any compensation payments
 Person is likely to be considered a contractor if the service provider:
o is not an employee of the principle
o is providing skilled Labour which may require special qualifications

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 o has control over the manner in which work is performed
o provide their own tools and equipment
o is not presented to the public as in emanation of the principle
HRM and the law
 HR managers need to be aware of legal issues that govern the employee/employer
relationship
 Labour law which incorporates:
o Law of employment (The individual contracts that all employees have with
their employer)
o Industrial law (regulates the manner in which employees collectively relate
with employers or groups of employers)

Approaches to industrial relations

 Unitarist
o Mutual cooperation, individual treatment, teamwork and sharing common
objectives
 Pluralist
o Conflict is inevitable, and trade unions are a legitimate counter to
management authority
 Marxist
o Industrial conflict as an aspect of class conflict, the solution being the
overthrow of the capitalist system
Unitarist approach
 The unitary perspective in employment relations assumes that employers and
workers operate in teamwork for attainment of common objectives within an
organisation. This perspective views an organisation as a combined unit whereby
employees and workers have equal understanding. Thus, all parties form one team
with similar intention
 in this regard, there is no need for third party or union interventions. Unions are
perceived as unnecessary and divide employee loyalty
 the unitary perspective disputes that there is a meaningful role for conflict in the
workplace

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  Unitarists posit that employers should set the rules an employee should cooperate in
complying with the rules. If conflict does arrive, it is seen as disruptive an regarded
the fault of poor employee management or communication problems
 Unitarists emphasise teamwork when conceptualising the nature of the employment
relationship since unitarists expect a harmonious workplace, comprising of
committed and loyal employees, conflict is considered a threat and must be
eliminate it
 the fundamental elements of the unit wrist context include a commonality of
interest between owners and workers, acceptance of the political, social and
economic culture and focuses more on resolving conflicts than the actual cause of
the conflict
 this perspective is criticised for being viewed in denial of the existing basic
antagonism in the employment relationship, through its tenants influence the
attitude and behaviour of employers towards employees

Pluralist Perspective
 The pluralist perspective you see employing organisation as a coalition of individuals
and groups with diverse objectives, values and interests. The underlying assumption
with this perspective is an individuals and organisation combined into a variety of
distinct sectional groups, each with its own interests, objectives and leadership. The
different groups in an organisation are competitive in terms of leadership, authority
and loyalty. In this regard conflict put the organisation in a permanent state of
dynamic tension
 management is responsible for the efficiency, productivity and profitability of the
institution. The concerns of the individual employee are wider regarding job security
and meaningful work. The competitive conflict between management and Labour is
seen as rational an expected to occur in the work environment. It results from
industrial and organisational factors rather than from individual personal factors,
such as personality clash between a supervisor and the subordinate.
 The basic objective of a trade union is to protect and promote the interests of the
working class in general. For this reason, workers reaction to the trade union
membership will be related to their belief that membership will decrease their

36
 frustration and anxiety, improve their opportunities and lead to the achievement of
better standard of living
 a pluralist view sees conflict as inherent and purely being an inevitable course of
action within an organisation, thus, conflict can be resolved through compromise to
the benefit of all. Unions have a legitimate role in the workplace. Effective
communication processes which allow workers to have their views and concerns
voice to the management should be made possible by the employer

The Radical Perspective /Marxist Approach

• THE RADICAL PERSPECTIVE/MARXIST APPROACH - The Marxist view is to achieve
annihilation of the suppressive social order and unions are seen as vehicles of this
social revolution. Based on radical perspective, a belief is that almost certainty
remains that conflict will constantly take place between employer and the workers
due to occurrence of basic disparities.
• In this perspective, employers and workers are opposed to cooperate and a hostility
principle prevails. Workers distinguish themselves as “us employees against those
employers”, which shows that resistance of working together.
• Observation of radical perspective in industrial relations is viewed as anchored with
the character of capitalist society. Workplace relation is noticed against conditions
underlying within the boundaries of interest between capital and the employees.
• Collective bargaining is assessed as promoting workers’ militancy within the confines
presumed to be tolerable to the employers. Conflict is deemed to be legitimized in
the organization, which is contrary to the workers’ interests. Based on radical
perspective, unions implement their basic conservative practice of negotiation as
they become entangled with management.
• They are anxious with the bureaucracy of management and in this regard they are
viewed as not advancing issues of interest of their members. In the bargaining
process, leadership of the union would prefer to pay more attention on establishing
and improving a balanced relationship with employers. By so doing, the union is able
to sustain the confidence and protection within the institution, rather than
challenging it. The common interest of the workers is primarily to improve working
conditions and to influence decisions in the workplace.

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Parties in Industrial Relations
1. State and federal governments
• The State The state has a three-fold role in the industrial relations system.
• FIRSTLY, it is the legislator with responsibility for introducing laws to
establish the system such as the FW Act, anti-discrimination legislation
and workers’ compensation and health and safety legislation.
• SECONDLY, it is also the regulator. In Australia, it regulates the industrial
relations system through the courts, tribunals and inspectorates (such as
the Fair Work Ombudsman or NT WorkSafe).
• THIRDLY, the state is also a major employer.
2. Industrial tribunals
• State and federal employers - Employer organisations represent the interests of
major groups of employers. In the past, under the centralised arbitral system,
employer organisations were active participants in industrial processes. Although
they can still represent employer groups in Fair Work Australia, their role has
increasingly become one of lobbying government and advocating for the
interests of employers. Two employer organisations operating in the Northern
Territory are the: Chamber of Commerce NT; and Territory Construction
Association.
3. Trade unions
• Most employee organisations are called unions, but some call themselves
associations or federations. Employee organisations must be registered in
accordance with the Fair Work (Registered Organisations) Act 2009. Under the
FW Act, trade unions have certain rights in relation to safeguarding their
members’ industrial interests. These include rights to enter premises to
investigate suspected breaches of the FW Act; awards or enterprise agreements
that relate to or affect a worker on the premises, whose interests the
organisation is entitled to represent. - two peak organisations: the Northern
Territory Trades and Labour Council, which is known as Unions NT and through
their national bodies, the Australian Council of Trade Unions (‘the ACTU’)
4. Employees

38
The National Employmemt Standard (NES)
• The National Employment Standards (NES) are 10 minimum employment
entitlements that have to be provided to all employees.
• https://www.fairwork.gov.au/employee-entitlements/national-employment-
standards

Employee recruitment and selection

 Amyriad of laws govern arrangements for selecting and engaging employees.
 The following areas require particular consideration in the pre-employment phase:
o the job advertisement
o the job description
o the application form
o the interview
`
Office of the Australian Information Commissioner Employment
• Australian privacy law treats public and private sector employee records differently.

Workplace privacy
• https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/best-practice-
guides/workplace-privacy#:~:text=Back%20to%20top-,What%20is%20workplace
%20privacy%3F,to%20personal%20information%20about
%20employees.&text=Commonwealth%20privacy%20laws%20only%20apply,the
%20employer%20and%20the%20employee.

Workplace Discrimination
• Pervades all stages of the pre-employment process based on
• Race, colour, sex, sexual orientation, age, physical or mental disability,
marital status, family or carer’s responsibilities, pregnancy , religion, political
opinion, national extraction or social origin
• Adverse action can include action on the basis of any above reason that is unlawful if
it is taken for a discriminatory reason. The Fair Work Act 2009 (FW Act) describes a
number of adverse actions.

39
 • In terms of the FW Act, an action is only considered adverse action if it occurs due to
one or more of the above attributes (race, sex, age, disability, etc)
• An employer refused to hire a suitably qualified person as a shop assistant
because they were Aboriginal, and instead hired a less qualified person of a
different racial background. This could be racial discrimination.
• A policy that says only full-time workers will be promoted could discriminate
against women who are more likely to work part-time to accommodate their
family responsibilities.
• https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-
sheets/rights-and-obligations/workplace-discrimination AND
https://humanrights.gov.au/quick-guide/12030

Direct and Indirect Discrimination

RACE and COLOR ISSUE - https://www.fwc.gov.au/general-protections-benchbook/other-

protections/discrimination/race
Sex discrimination - https://www.qhrc.qld.gov.au/resources/case-studies/sex-
discrimination
Gender identity & sexual orientation - https://www.fwc.gov.au/general-protections-
benchbook/other-protections/discrimination/gender-identity-sexual-orientation
Physical or mental disability - https://www.fwc.gov.au/general-protections-
benchbook/other-protections/discrimination/physical-or-mental-disability#_ftn1

40
 • Disability Statistics - https://www.and.org.au/pages/disability-
statistics.html
Marital status - https://www.fwc.gov.au/general-protections-benchbook/other-
protections/discrimination/marital-status
Pregnancy - https://www.fwc.gov.au/general-protections-benchbook/other-
protections/discrimination/pregnancy
Religion - https://www.fwc.gov.au/general-protections-benchbook/other-
protections/discrimination/religion
Types of abuse in domestic and family violence - https://www.facs.nsw.gov.au/domestic-
violence/about/types-of-abuse-in-dv
National extraction - https://www.fwc.gov.au/general-protections-benchbook/other-
protections/discrimination/national-extraction
Social origin - https://www.fwc.gov.au/general-protections-benchbook/other-
protections/discrimination/social-origin

Job Advertisement and legal requirements

• Australian Human Rights Commission - Job Advertisements -
https://humanrights.gov.au/quick-guide/12055
• Guidelines for writing and publishing recruitment advertisements
• https://humanrights.gov.au/our-work/guidelines-writing-and-publishing-
recruitment-advertisements
• Job no longer required due to changes in operational requirements
• https://www.fwc.gov.au/unfair-dismissals-benchbook/what-dismissal/what-
genuine-redundancy/job-no-longer-required-due

The rights of the employee

• Ending employment (Termination) - https://www.fairwork.gov.au/how-we-will-
help/templates-and-guides/fact-sheets/minimum-workplace-entitlements/ending-
employment#:~:text=When%20an%20employment%20relationship%20ends,and
%20long%20service%20leave%20entitlements
• Notice of termination & redundancy pay - https://www.fairwork.gov.au/how-we-
will-help/templates-and-guides/fact-sheets/minimum-workplace-
entitlements/notice-of-termination-and-redundancy-pay

41
 • Unlawful termination - https://www.fwc.gov.au/termination-employment/unlawful-
termination
• Unfair dismissal - https://www.fwc.gov.au/termination-of-employment/unfair-
dismissal

Differences between a wrongful dismissal and unfair dismissal

• In the event of termination of your employment contract, you can make a claim for
wrongful dismissal against your employer under the Common Law.
• Unfair dismissal laws are slightly different. Unfair dismissal describes a right of action
that you may have under the Fair Work Act 2009 (Cth) (the Act) or under similar
State legislation.
• https://www.owenhodge.com.au/employment-law/wrongful-dismissal-vs-
unfair-dismissal/

Week 4 – Job analysis, job design and quality of work life

Lecture
Introduction
 A proper match between work and employee capabilities is now an economic
necessity
 changes in strategy effects not only how work is performed, but also the knowledge,
skills, abilities and attitudes required by workers
 hey John managers need a good understanding of work and how it is organised to
ensure that the organisation strategic business objectives are being supported an
employee needs are being met
job analysis:

42
  a systematic investigation of the tasks, duties and responsibilities of a job and the
necessary knowledge, skills and abilities are person needs to perform the job
adequately
 components include:
o job content
o job requirements
o job context
 Approaches
o A job orientated or task approach
o An employee orientated (or behaviour) approach
 When to analyse a job
o When the organisation commences
o When a new job is created
o When a job is changed significantly.
All 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. Job analysis and job design provide the foundations for this knowledge. Students
could be asked: what evidence is there of job analysis in the job/s you hold

Job analysis and job design

This figure shows the dynamic relationship which exists between job analysis, job design and
job performance. As with so many HR activities, a feedback (evaluation) component is
highlighted

The uses of job analysis

43
  Job description
o Defines what a job is by identifying its content, requirements and context.
 Job specifications
o Focus on the skills, abilities, knowledge, personal characteristics and formal
qualifications needed
 Job design
o Identifies what work must be performed, how it will be performed, where it
is to be performed and who will perform it.

It is important to distinguish between these terms. Job analysis supports many other HR
activities which will be explored in later slide sets. As an example, page 153 refers to the
contribution to the selection process.

• 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.
• The importance and contribution of job analysis to the work of the HR manager is
again emphasised.

Job analysis and legal compliance

44
Job analysis process

45
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
o Pages 169 to 173 provide further examples and explanation.
 Job descriptions (and job specifications, to be discussed next) must be clear, concise
and understandable, to avoid later disputes.

46
 o Pages 155 to 158 provide further examples and explanation.

Job Specification
• The job specification is derived from the job description. It identifies aspects
necessary for job success, including:
– 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.

o Pages 173 and 174 provide further background to these components. Many
components are considered in current terms – for instance, with
remuneration (next slide) – what pay and benefits should the candidate be
currently receiving to make this position financially attractive?

Collection of job analysis information

• The five most common methods (data collection) 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.
• Most methods mentioned here are self-explanatory. It is important to emphasise
that a critical incident is not just a negative situation – it can also be a situation
where positive outcomes are achieved.

Job analysis techniques

• Job analysis techniques include:
– The Australian and New Zealand Classification of Occupations (ANZSCO)
http://www.qgso.qld.gov.au/about-statistics/statistical-standards/national/anzsco.php
http://www.abs.gov.au/ausstats/abs@.nsf/mf/1220.0
– Position Analysis Questionnaire (PAQ)
– Management Position Description Questionnaire (MPDQ)
– Position Classification Inventory (PCI)

47
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.
• 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.
• Competency profiling
• Strategic Human Resources Competency Framework
• https://www.forgov.qld.gov.au/strategic-human-resources-competency-framework
• The Strategic Human Resources Competency Framework communicates a shared
understanding of the behaviours expected of human resources (HR) professionals
across the public service:
– positions HR to support the business to be more effective and high
performing
– provide a common language about behaviour
– enable targeted development to enhance capability
– support a career path
– complements the Workforce Capability Success Profile.

Competencies for today’s HR professionals

48
Central and surface competencies

49
  This is an important slide to emphasise. It demonstrates the observable and less
observable components. Students studying psychology units, for instance, will
readily identify with this model. For other students, the model will provide new ideas
to consider.
Criticism 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
o The assumption of rationality refers to the assumption that managers behave
rationally and truly understand their jobs. Some political, gender or race-
related dimensions might be overlooked

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

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

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

50
 • An example of a car factory may assist here. Job specialisation might involve
installing wheels and wheel covers only to each car. Job enlargement might involve
installing wheels and wheel covers, as well as pumping up the tyres, putting valve
caps on and polishing the wheels. Job rotation might provide an opportunity for the
employee to install door trims and speakers (and another employee will perform the
tasks mentioned previously). Job enrichment might allow the employee to install parts
to the cars being built, and also work with suppliers and customers to work out the
best, longest lasting products to install.
• Socio-technical enrichment aims to integrate people with technology. Autonomous
work teams are responsible for accomplishing defined performance objectives.

Job design methods

Job design implications of job characteristics theory

This diagram shows the important relationship between employees and the workplace. There
must be alignment between the needs of each, for satisfaction and productivity (and many
other reasons).

Quality of work life QWL

• Involves the implementation of HRM policies and practices designed to promote
organisational performance and employee wellbeing, including:
– Management style

51
 – Freedom to make decisions
– Pay and benefits
– Working conditions
– Safety

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
• Additional examples are provided on pages 194-195. Constitutionalism refers to the
level of dignity and respect which exists, as well as opportunities for honest feedback
and the extent to which employee rights are promoted and protected.

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

Workshop

Week 5 Recruiting Human Resources and Employee selection (chpt 6

& 7)
Lecture

Strategic Recruitment 6.1

 Strategic recruitment
o Linking recruiting activities to the organisation’s strategic business objectives
and culture.
 Recruitment
o Seeking and attracting a pool of qualified applicants from which candidates
for job vacancies can be selected.

52
  Employment branding
o Promoting an image of the company as a good employer, to create a
favourable impression with potential applicants.
 Selection
o The process of choosing the best qualified candidate/s from a group of
applicants.
 Strategic selection
o Linking of selection activities to organisation’s strategic business objectives
and culture.
 Selection criteria
o 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.

53
 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.

Recruitment activities
• Determine and categorise the organisation’s long-range and short-range HR needs.

54
 • 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.

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. 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?

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

Recruitment (internal v external sources)

55
Some internal recruitment methods
• Computerised record systems:
– Skills inventories
– Replacement charts.
• Job posting:
– Bulletin boards
– Newsletters
– Personal letters
– Computerised posting programs.

Some external recruitment methods

• International recruitment
• Advertising
• Employment agencies
• Management recruitment consultants
• Executive leasing
• University recruiting
• Employer referrals
• Unsolicited applications

56
 • Professional associations
• Trade unions.
Often, more than one source will be used. The state of the economy is also an influence.
Students could be asked to comment on some of these methods in terms of the current
(local, economic or similar) conditions. Executive leasing is similar to temporary help,
except that the focus is on supplying management and / or professional personnel. Trade
unions and professional associations can provide useful contacts for employment
opportunities. It may be important to manage the expectations of people involved, though.
Applicants should still be able to prove that they are the most suitable candidate (through
the selection process, in the next slide set).

Innovative recruiting programs

Recruitment best practice

• Realistic job previews
• Recruitment sources
• Recruiter behaviours
• Employment inducements
• Recruitment activities

57
 • Recruitment advertising
• Organisational image, reputation and symbolic attributes
• Creative, innovative and effective recruitment practices.

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).

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

E-Recruitment
• Involves recruiting via the internet (external) and intranet (internal).
• All major companies now use some form of e-recruiting.
• 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.

58
Example of web-based recruiting system

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

EEO and recruitment

• Recruitment of women
– A significant barrier is stereotyped thinking.
– Glass ceiling
• Glass walls
– Women in trades and non-traditional occupations

59
 – Women in sales
• Recruitment of people with disabilities
• Recruitment of older workers
– Grey ceiling
• The grey ceiling occurs when people can see higher level positions but
are blocked by age discrimination.
• Recruitment of migrants
• Recruitment of Aboriginal Australians and Torres Strait Islanders
• Recruitment of lesbian, gay, bisexual, transgender and intersex workers
–
• EEO legislation requires fair treatment for all members of the community and the
elimination of discrimination.
• The textbook provides some examples of stereotypes which are, unfortunately, still in
play (p. 232). Students could be asked to provide examples.
• The glass ceiling occurs when people can see higher-level positions but are blocked
by an unseen barrier, such as discrimination. Students should know this term.
• Similarly, glass walls can result from stereotypes related to suitable or unsuitable
areas for women to work in. Again, this situation must change.

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

Selection criteria focus

60
Candidate fit

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

Validation of selection procedures

• Validity
– 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:
61
 – concurrent validity and predictive validity
• In selection, the correlation coefficient considers the relationship between a predictor
and the criterion of job success. It is rare to find perfect relationships.
• Concurrent validity involves identifying a criterion predictor (such as an aptitude
test), giving it to existing employees and relating the result to their job performance. If
an acceptable correlation exists, it may be used as a selection tool. However, the
population may not be representative.
• Predictive validity involves administering a criterion predictor to all applicants, but
not considering the scores until after a period of time (such as six months). The results
for each employee are then reviewed in conjunction with a criterion such as job
performance. The predictor might then be used in future activities.

Reliability
• Reliability
– The extent to which a measure (for example a test) is consistent and
dependable.
– Types
• Test-retest
• Split halves
• Parallel forms
• Students might consider what a ‘reliable car’ means (linked to consistency and
dependability).
• Test-retest (as the name implies) involves the applicant being subjected to the same
predictor on two separate occasions. The results are then correlated.
• Split halves involves the predictor being divided into two parts and the individual
results being correlated.
• Parallel forms involves the development of two versions of the same predictor (for
instance, similar questions asked in a similar way). The results are then correlated.
• Validity must also be considered, regardless of the type used.

Sample selection procedures

This is a sample only and may or may not include some of these steps and the order may vary

62
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.

Application forms and EEO requirements

• Some questions/topics not to include:
– Marital status
– Residency status
– Ethnic origin
– Organisations
– Photographs
– Race or colour
– Relatives
 The following may be job-related in some circumstances:
– Age
– Gender
– Religion
– Military service
– Physical disability
– Medical information
– Height and weight
– Body modifications
–

Tests
• Interest
– Compares interest patterns to those of successful employees
• Aptitude
– Special abilities (clerical, linguistic)
• Intelligence
– IQ
• Employment tests attempt to assess the match between the applicant and the job
requirements. They must be managed carefully and must be line with company
objectives and those of the recruitment and selection process.
• Physical
– Physical characteristics
• Personality
– Measures personality or temperament
• E-testing
– using computers and the internet to administer employment and psychological
tests
• Employment tests attempt to assess the match between the applicant and the job
requirements. They must be managed carefully and must be line with company
objectives and those of the recruitment and selection process.

63
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

Research and the employment interview

How to interview successfully

• 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
64
 • 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.

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.

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

Other selection techniques

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

The selection decisions

• 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.

Two approaches to the selection decision

65
66