Fundamentals of Human Resource Management

What is Rewards Management?

Rewards Management - Concerned with the design and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organisation.

What are the Selection Techniques/Tools? What do you need to ensure when choosing techniques?

Selection Tools: - Applicant forms - Selection interviews (individual/group) - Tests (personality/intelligence/physical ability) - Letters of recommendation - Computer screening - Medical examination - Honesty/drug tests Which one is going to be the right one for the organisation information goals. - Need to ensure that selection process is valid (measures what it sets out to measure) and reliable (produce similar results on separate occasions)

What techniques can be used for forecasting the internal HR supply?

Skills inventory - consolidates basic information on all employees within the organisation (identifies qualified employees) Succession planning - concerned with the filling of management level vacancies long-term Markov analysis - used to forecast the availability of internal candidates (restricted to large companies) Turnover analysis - How many people and which ones are predicted to leave the organisation.

What is the Strategic Rewards Management Process? (7 Stages)

Stage 1: Develop strategic business objectives Stage 2: Develop HRM objectives Stage 3: Develop employee reward management philosophy and objectives Stage 4: Job Analysis Stage 5: Job Evaluation Stage 6: Pay survey (establishes external equity) Stage 7: Job pricing (match internal and external worth)

What is vicarious liability in the context of the Equal Employment Opportunity (EEO) legislation?

Vicarious liability - the employer is legally responsible for the prevention of discrimination/harassment in the workplace or in connection with a person employment; unless it can be shown that 'all reasonable steps' have been taken to reduce the liability.

What is workplace diversity?

Workplace diversity - includes people form different races, ethnicities, age groups and sexes - dissimilar cultural beliefs and values.

What is Human Resource Planning? What is its purpose?

- HR function concerned with detailed forecasting of employee demand and employee supply. Purpose - To guarantee availability of the HR needs of the organisation at specified times in the future. (right people in the right place, in the right jobs, at the right time, at the right cost to the organisation)

What is Human Resource Management?

- Involves managing people within the employer-employee relationship - The productive use of people in achieving the organisations business objectives and employee needs

What are the two pieces of legislation in the OH&S Statute Law? What are the 3 concerns the of the OH&S Laws?

- Occupational Healthy & Safety Act 2004 - Workplace Injury, Rehabilitation and Compensation Act 2013 Law Concerns: 1. Prevention 2. Compensation 3. Rehabilitation

What are the Performance Appraisal systems?

- Ranking - Grading - Graphic Scales - Critical Incidents - Behaviourally Anchored Rating Scales - Essay description - Management by Objectives (MBO)

Who can conduct Performance Appraisals?

- Supervisor - Peer - Self-evaluation - Sub-ordinate evaluation (lower-ranked employees) - Multi-source (increased credibility/avoids bias) (costly/time consuming/intimidating)

Why evaluate HRM contribution to the organisation?

- credibility - survival - improve practice - professional development/satisfaction - legal compliance

What are the benefits of properly managing workplace safety? (OH&S)

- improved personal safety, productivity, trust, reputation - decreased turnover, wastage, overheads

What is the Equal Employment Opportunity Legislation (EEO)? How does the legislation work?

- large amount of legislation that prohibits discrimination & harassment in all aspects of employment - requires equal treatment - employer is legally responsible for preventing discrimination/harassment unless 'all reasonable steps' have been taken to reduce the liability - vicarious liability How does it work? - provides list of personal attributes - unlawful to treat someone differently in employment on the basis of the personal attributes

What must be considered when conducting recruitment?

- long and short term labour needs - changing labour market conditions - where applicants can be found - means of attracting candidates

What does the absence of Strategic Human Resource Development result in?

- neglecting the long term - not analysing T&D needs - training evaluation ignored - ill-defined strategic objectives

What are the sources of Performance Appraisal Errors?

1) Rater Errors: - Halo/Horn effect - Central tendency - Leniency/strictness bias - Prejudice - Recency - Relationship effect 2) Subjective Performance Criteria - Personal based - Performance based 3) Management attitude/knowledge

What are the three phases in the Systematic Approach to Training & Development?

1. Assessment - identify training needs/org. variables/task variables/person variables (behaviour/quality of performance/conditions under to perform) 2. Activity - select/design programs, conduct programs (considers both content and process - location/timing/presenters/training delivery method) 3. Evaluation - develop evaluation criteria/evaluate outcomes against criteria (evaluate reactions/learning/behaviour) Can be measured through questionnaires/tests/observation

What are the different approaches in conducting an HR Audit?

1. Comparative (benchmarking) - compare firm/division with another firm/division uncovering areas of poor performance 2. Outside authority - relies on expertise of a consultant for evaluation standards 3. Statistical - using existing records to generate statistical standards to be evaluated against 4. Compliance - by sampling elements of the HR info system, audit looks for deviations from laws/policies/procedures 5. Management by Objectives - audit can compare actual results with stated objectives

What are the steps in the Job Analysis process?

1. Review background information 2. Identify the use to which the information will be put 3. Select positions to be analysed - (job representativeness/criticality/number of applications) 4. Collect data (two approaches): - Job-oriented approach (job content/tasks/duties) - Employee-oriented approach (job requirements/skills/abilities) 5. Review the information 6. Develop a job description: - position description (written statement explaining why job exists, what person does/how they do it/under what conditions. - person specification (experience/skills/knowledge/abilities/special requirements)

What is Job Analysis? What 3 basic aspects of the job does it consider?

Job Analysis - A systematic investigation of the tasks/duties/responsibilities of a job and the necessary knowledge/skills/abilities a person needs to perform the job adequately. 1. Job Content - duties/responsibilities 2. Job Requirements - qualifications/skills 3. Job Context - the jobs purpose/where it fits in the organisation

What is Job Design? Why design jobs?

Job Design - specification of the content/material/equipment to do the job and its relationship to other jobs. Why? - increased motivation/satisfaction/performance/ productivity - reduced absenteeism/turnover/accidents

What are the legal requirements when conducting Recruitment and Selection?

Equal Employment Opportunity (EEO): - requires fair treatment for all in employment decisions - all employees have equal access to benefits/employment - recruit best people for job in terms of job related skills - aims to eliminate discriminatory practices - aims to ensure disadvantages groups are given fair access - E.g. women/disabilities/older workers/aboriginals/gay/lesbian workers

What is evaluation? What is the Evaluation of HRM?

Evaluation - measurement of the outcome of a plan or programme - involves gathering data, interpreting the data and reaching a conclusion about the quality or standard of the measured outcome

What are the different types of Rewards?

Financial: - Direct (base pay/incentive pay) (bonuses/overtime) - Indirect (insurance/superannuation/medical/holidays) Non Financial: - Job (interesting/challenging work/recognition) - Environment (good HR policies/practices/ safe & healthy work environment/ career security)

What is Industrial Relations? What are the approaches/perspectives to Industrial Relations?

Industrial Relations - refers to the interaction and relations between employers and employees within the workplace Approaches: - Unitarist (organisation is integrated and harmonious - mutual cooperation and shared objectives) - Pluralist (organisation made up of powerful and divergent sub-groups - each with own legitimate loyalties, objectives and leaders - persuasion approach) - Marxist (organisations exist within a capitalist society - fundamental division of interest between capital and labour - workplace relations against this background - inequalities of power and economic wealth)

What are the Advantages of Internal recruitment Disadvantages? What are the Advantages of External recruitment? Disadvantages?

Internal ADV: - aid moral/performance - rewards performance - accessibility ease - less costly - already know org. and culture Internal DISADV: - may promote beyond ability - political infighting for promotion - discontent among those not promoted - claims of favouritism ___________________________________________________________ External ADV: - bigger talent pool - new ideas brought into the org. - forces insiders to compete - no internal claims of favouritism External DISADV: - may not fit org. culture - additional T&D required - can be costly - longer orientation period

What is internal equity? What is external equity? What is job pricing?

Internal Equity: comparison of jobs to ensure fair pay External Equity: relationship between one companies pay levels in comparison to what other employers pay. Job Pricing: Matching internal and external worth

What are Internal recruitment methods? What are External recruitment methods?

Internal: - Promotion (preferences to existing employees) - Transfer - (skills inventory) - Job posting (internal advertising) External: - Advertising (online and offline) - Personal networks (employee referrals) - Applications/resumes - Unions/Professional associations - International recruitment - University recruiting/Internships

What is Job Evaluation? What are approaches to Job Evaluation?

Job Evaluation: Systematic effort of determining a job's relative worth to the organisation in relation to other jobs. Approaches: - Job Ranking (ranks jobs from 'most worth' to 'least worth' - Job Grading (looks at job related factors (education/experience/responsibilities) to determine classes or grades of job then compared with benchmark description. - Point System (looks at factors such as qualifications/experience then each factor divided into levels; points allocated for individual factors are totalled to determine the jobs relative worth to the organisation. - Factor Comparison (refinement of ranking and points systems; jobs ranked independently - not as whole jobs - complex to apply)

What are the legal approaches to managing a diverse workforce? What is the management approach?

Legal Approaches: 1) Equal Employment Opportunity 2) Affirmative Action - programs that require firms to make an effort to recruit hire and promote women Management Approach: 3) Diversity Management - process of managing employees' differences and similarities so that individuals can achieve maximum personal growth

What is Performance Management? What is Performance Appraisal? What are its objectives?

Performance Management: - Aims to improve organisational, functional, unit and individual performance by linking objectives of each. - Incorporates job design, recruitment/selection, training/development, career planning, remunerations/benefits. Performance Appraisal: - Concerned with determining how well employees are doing on their job, communicating that information to employees, agreeing on new objectives and establishing a plan for improvement. - Objectives: Differentiation of employees/Reward/Development/Feedback

What industrial relations perspective is most relevant to Australia?

Pluralist - organisations made up of powerful divergent sub-groups, each with own legitimate loyalties, objectives and leaders. Most relevant to Australia (conflict over wages/conditions etc. need to regulate interaction to minimise damage to society and organisation )

What are the Quantitative Forecasting techniques? What are the Qualitative Forecasting techniques?

Quantitative: - Trend Projection - makes predictions by projecting trends of the past/present into the future - Econometric Modelling - simulates future events based on probabilities Qualitative: - Expert Opinion (individual) - if lack of appropriate/statistical information - Delphi (group) - panel of experts make predictions in answer to questions relating to future HR needs (communication) - Nominal (group) - group process involving problem identification, solution and decision making.

What is Recruitment? What is Selection? What is Strategic Recruitment & Selection?

Recruitment - process of identifying, pre-screening and attracting pool of qualified candidates. Selection - process of choosing the candidate who best meet the selection criteria (in a cost-effective/legally defensible manner) Strategic Recruitment & Selection - process of linking recruitment and selection activities to the organisations strategic business objectives and culture.

What are the uses of Job Analysis?

- All HR activities depends upon job analysis - Job analysis -> Job description/person specification -> - E.g. HR planning/recruitment/selection/T&D/Job design/termination/IR

What are the roles of a HR Manager?

- Change & cultural transformational catalyst - Talent manager - Employee advocate - Organisational ambassador - Legal adviser

What is Strategic Human Resource Management (SHRM)?

- Concerned with the development/implementation of people strategies that are integrated with corporate strategies - Ensures that culture, values, structure and motivation levels contribute to goals.

What does the Fair Work Act give rise to in termination? How can employee challenge their dismissal?

- Employee protection against wrongful dismissal - terminated due to race, colour, sex, sexual preference, age, disability etc. - if there is insufficient notice, damage claims (lost wages)

What are the four approaches to measuring the HR climate? Why measure the climate?

- Employee turnover - loss of employees in the organisation (examine exit/post exit interviews) - Absenteeism - any unplanned failure to report to work, as scheduled, regardless of reason (e.g. transportation/dissatisfaction/boredom) - Health & Safety Records (occupational injuries/illnesses) - Employee Attitude Surveys - determining what employees think of their job and the organisation Why? To understand employee perceptions about the work environment that impact satisfaction, motivation and behaviour.

What are the parties to Industrial Relations?

- Employees & Trade Unions - Employers & Employer Associations - State (Government & government regulatory bodies)

What is forecasting for Human Resources?

- Forecasting HR demand and supply - Demand - What is our labour number demand going to be (number/skillset)? - Supply - Do we have it (no - external labour market)?

What is the Hackman/Oldham job characteristics model?

Based on the belief that the task itself is key to employee motivation: - Proposes that there are 5 job characteristics that add to employee motivation/predict job satisfaction: 1. Skill variety - how many skills/talents does the job require 2. Task identity - clearly defined start, middle end? 3. Task significance - substantial impact? 4. Autonomy - how much freedom does individual have to complete tasks? 5. Job feedback - employee informed about performance? Results in: - increased motivation/performance/satisfaction - decreased turnover/absenteeism

How does the 'Prevention' concern of the OH&S Law work?

By: - imposing duties of care on persons who can influence OH&S - By promoting consultation within workplaces

What is a HR Audit?

HR Audit - a systematic evaluation of the efficiency and effectiveness of the HRM function and its contribution to the achievement of the organisations objectives.

What is Human Resource Development? What is Training & Development?

HR Development - process of increasing the capacity of the human resource through development. - Adding value to individuals/teams (enhancing/maintaining skills) Training & Development - any attempt to improve current or future employees performance by increasing, through learning, an employees ability to perform.

What is a HR scorecard?

HR scorecard - measurement system designed to show HR's impact on the achievement of the organisations strategic objectives/financial performance

What are the two approaches to HRM?

Hard approach - stresses the rational, quantitative and strategic aspects (performance improvement/competitive advantage) Soft approach - emphasises the integration of HR practices with strategic business objectives (employee development/collaboration)

What is Occupational Health & Safety (OH&S)? What are its 3 concerns?

OH&S - the general area of concern in employment which spans the physiological and psychological needs and well being of employees (protection and promotion of occupational health and safety) 3 Concerns: 1. Safety - security of life and limb 2. Health - clean work environment with precautions taken to minimise disease/threats 3. Welfare - care about employees well-being as human beings

What is Termination? What are the types of Termination?

Termination - when an employees contract of employment with an employer ends. Types: - Dismissal on notice (employee or employer initiated) - must give appropriate notice and reason (written) - Summary dismissal ('on the spot') (need notice depending on serious misconduct) - Redundancy (permanent elimination of the position) - Constructive dismissal (employer makes employees continued position within the org. untenable, so they quit e.g. wage reductions)

What are Roben's principles?

The primary responsibility for doing something about the present levels of occupational accidents and disease lies with those who create the risks and those who work with them 1. duty of care owed by employers 2. shift from prescription to self regulation 3. empowerment of employees

What are the key provisions of the Fair Work Act? What are its key elements (7 elements)?

To create an Industrial Relations system which balances the needs of employees, the unions and employers, allowing Australia to become more competitive and prosperous without taking away workplace rights and guaranteed minimum standards. Key elements: 1. Creation of fair work commission (one stop shop for regulation of Australian Industrial Relations e.g. min. wage/approve enterprise agreements/ decide unfair dismissals) 2. Collective bargaining at the heart of the workplace relations (negotiation of wages/working conditions/benefits) 3. Safety net of minimum conditions (2 parts): - 10 national employment standards (hours of work/annual leave/public holidays) - modern awards 4. Union right of entry (to enter premises) 5. Industrial action (e.g. protest/striking) 6. Extension of unfair dismissal rights 7. Transmission of Business