10.4
HSC topic: Human resources -> Refers to systems that have been developed to
manage people within an organization or business.
25% of indicative time
The focus of this topic is the contribution of human resource management to business
performance.
Outcomes
The student:
H2 evaluates management strategies in response to changes in internal and external
influences
H3 discusses the social and ethical responsibilities of management
H4 analyses business functions and processes in large and global businesses
H5 explains management strategies and their impact on businesses
H6 evaluates the effectiveness of management in the performance of businesses
H7 plans and conducts investigations into contemporary business issues
H8 organises and evaluates information for actual and hypothetical business situations
H9 communicates business information, issues and concepts in appropriate formats
Content
Students learn to:
examine contemporary business issues to:
 discuss the influence of government on the process of determining employment contracts
 explain how businesses exhibit corporate social responsibility in the management of
human resources
 analyse the causes of two workplace disputes and the strategies used to resolve them
 examine the advantages of a diverse, culturally competent workforce for a global business
investigate aspects of business using hypothetical situations and actual business case studies
to:
 explain the interdependence between human resources and other key business functions
 compare the process of negotiating enterprise/collective agreements with the negotiation
of individual contracts
 discuss the advantages and disadvantages of outsourcing in the global market
 evaluate the effectiveness of human resource management for one business and
recommend appropriate alternative strategies
Key Concepts: outsourcing, stakeholders, employment standards, OH&S, workplace
disputes, corporate culture, grievance procedures, benchmarking, agreement, induction,
‘laissez-faire’, national employment standards, contract,
Students learn about:
role of human resource management
 strategic role of human resources – deals with all aspects of employee/employer realationship: 
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acquisition –training –equal employment opp. –development –separation
-When HRM is successful employees should be motivated & productive
interdependence with other key business function –HRM ensures the correct people are working
properly in their roles in operations, marketing or finance
outsourcing –Often used to obtain superior servie, better funcitional quality at a lower cost than when
completed internally –cost advantages/savings + ability to focuss on core bus. activities are the major
reasons for outsourcing
– human resource functions -> HR is the 2nd most outsourced function (after IT) it can have
disadvantages though: -loss of control –expensive –employee unrest -> if a business decides to
outsource HR it must have clear objectives to make sure goals are achieved and make the transition
smooth
– using contractors -> contractors are independent and are not subject to the regulations and directives
of a business – domestic -> simplifies communication, knowledge of HR relevant to the area e.g.
Aust. Bus. , global ->cost advantage, specific skill, cultural sensitivity -> it is most important
instructions are clear -> hiring may be –ethnocentric (parent country) –polycentric (outsourced country
base) or –geocentric (best for the job)
key influences
 stakeholders – employers- role: run bus. efficiently, employ sufficient staff, earn profit objectives;
increased profitability, productivity, efficiency & competitivness, employees-role: earn income, secure
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employment, personal satisfaction objectives: better pay/working conditions, flexibile working conditions,
fair/ethical treatment, employer associations-support groups of employers in the same/related industry,
purpose: to represent the industrial/commercial interests of member orgs. & bus. -role: interpret economic
trends/impact on bus. improve efficiency of workplace, provide a voice for bus. in economic/social debate ,
unions –represent groups of employees within particular occupational groups –role: lobby gov. on
employment/workplace matters, increased job security, follow-up on issues for employess, government
organisations –involved in industrial realations –Fair Work Australia –individual states have their own
industrial relations –provide a legislative background for industrial relations, society-seek the best
price/service/quality –changes to work conditions often influence their opinions on the bus./service etc.
legal – the current legal framework -> Fair Work Act 2009 –enforcable minimum employment terms
and conditions which include –minimum weekly hrs of work –flexiable work arangements for parents –
annual leave –parental leave –compassionate leave –long-service leave –community service leave –paid
public holidays -4 weeks notice for termination –provision of fair work info. statement
– the employment contract –many conditions controlled by state/fed. Laws –employee is ‘a person
subject to a contract of service’ –can be ‘for service’ –not ongoing but for a fixed term e.g. tradie OR
‘of service’ –regular and continuous e.g. salary teacher– common law (rights and obligations of
employers –duty of care –duty to pay agreed wage –duty to provide work and employees –duty to
obey lawful instructions –duty to work with skill –duty to disclose relevant information), minimum
employment standards, minimum wage rates, awards –legal document outlining minimum
wages/working conditions –apply to all bus. in that industry –established through negotiation w/
dominant employers, employer associations and trade unions , enterprise agreements –exclusive to
the business and its employees, must be approved by majority of staff, other employment
contracts –part-time, permanent, casual, fixed-term
– occupational health and safety –employers must provide a safe system of work, ensure
employees are trained and supervised –employers are also responsible for taking reasonable care –
investigated by Work Cover and workers compensation –benefits for employees suffering injury
or disease related to their work –administered by Work Cover
– antidiscrimination –enacted to protect employees from direct and indirect discrimination
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throughout HR process –Legislation: Affirmative Action Act 1986 –Sex Discrimination Act 1984 and
equal employment opportunity –refers to equitable policies –level of equity = extent to which
women/minority groups have access to different occupations/positions –affirmative action plan
economic –economic cycle/globalisation can change employment requirements by changing demand and
variety of skills required by staff –e.g. staff have more bargaining power in economic ‘boom’ as employees
are in demand –globalisation changes the location and nature of employment –home office/tele-communing
increased and changed the work place
technological –globalisation/technology revolutionised work places –payroll, records, hiring, work can
be completed online –self-service streamlines activities e.g. applying for leave –increases flexibility but
also expectations
social – -increased education qualifications, changes in family dynamics, aging population changing
work patterns –incease in womens participation –inceased casualitation, outsourcing, flexibility and
service knowledge based jobs, living standards –level of material wellbeing –desire to improve standard
of livng will push people into the workforce –rising gender gap –paid parental leave
ethics and corporate social responsibility –issues in the work place: -unethical practices/conditions,
bullying, harrassment, injury, discrimination, work overload, stress, unfair/unlawful dismissal
-Benefits of ethical practise: -pleasant work environment, community support, motivated staff,
improved performance, equal opportunity, staff retained
processes of human resource management
 acquisition –HR planning, recruitment, celection and induction -having appropriate number of staff,
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achieved by –identifying staffing needs-lack of training/motivation can hinder performance if this is not the
case new staff may be required –recruitment –main aim is to accummuate a pool of potential candidates for
a job, internally or externally, it’s from this pool the bus. makes its selection –selection-involves reviewing
the information gathered about applicants to choose the most appropriate candidate
development –developing existing staff with new skills and expertise –motivation + adding value to staff
–retaining them-process of preparing emplottes for advancement to jobs where their capabilities are used to
the greatest extent -4 standards, induction, performance appraisal, training & development
maintenance –monetary/non-monetary rewards + legal compliance –motivate + retain -providing
working condictions/environment that motivate staff to increase productivity, gain satisfaction and remain
loyal to the firm. It increases productivity, moral and communication, lowering absenteeism and costs.
Achieved through monertary (bonus, pay rise, fringe benefits) or non-monetary (promotion, flexibility,
recognition) benefits
separation –breaking of the labour contract -Voluntary (resignation, relocation, retirement, voluntary
redundancy) or involuntary (contract expiry, entrenchment, dismissal)
strategies in human resource management
-Many strategies in HRM have to do with choice; the manager must make appropriate choices for their
particular bus.
 leadership style –style of management will impact the bus. –Autocratic, my way or the highway,
directed, works well with less skilled staff & aiming for product consistency –Lassez faire, you can work it
out, collegial/friendly, great for creative/highly skilled employees, motivated workers –Democratic, what
do you think, middle ground, lots of team building activites, management retains control but staff input is
valued (some schools operate like this)
 job design – general or specific tasks –process of describing and defining specific and general tasks that
need to be performed –determines responsibilties/requirements –job depth/content –content=
tasks/responsibilities depth=degree of authority of empoyee
 recruitment – internal –within the bus. motivates staff, right ‘cultural fit’ or external outside bus. –
wider pool of candidates, diversity, specific skill, general –non specific e.g. motivation, word processing
or specific skills –specialist e.g. engenering
 training and development – current or future skills –continual training improves bus. skill base,
motivates staff and can be subsidised by the gov. -> training involves educating an employee in the skills
and processes of the job that they currently hold. Development involves selecting employees for
educational programs that focuss on future roles. Current skills = training Future skills = development
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performance management – developmental –to improve staff and encourage progress or
administrative –ensuring employees are achieving work outcomes
*both ensure employees are on task and are performing –benefit productivity & profitability
rewards – monetary –financial incentives = loyalty + sustained work ethic and non-monetary –
recognition/personal growth = motivation + belonging, individual or group -> rewards allocated to
work groups/teams or individuals?, performance pay -> individuals or groups rewarded for work
towards a specific goal
 global – costs, skills, supply ->location will impact heavily on labour costs, where to produce is a
decision that needs to be made, skill of workers in that country is also important –labour force is declinign
in advanced industrial areas = encouragement of movement of production to other places
 workplace disputes -> disagreement over an issue/s between and employer and its employees resulting
in cease of work ->causes negotiation of awards/agreements OR matters outside agreement e.g.
health/safety, managerial poliy, union issues -> action –strikes, lockouts (employer refuse entry to
workplace), pickets (outside workplace, unions stop delivery of goods)
– resolution – negotiation –discussions resulting in formal/informal agreement, mediationconfidential discussion with a neutral 3rd party, grievance procedures –formal procedure usually in
an agreement involving the agreed process to resolve a dispute , involvement of courts and
tribunals –conciliation 3rd party is involved to help reach an agreement –arbitration 3rd party make a
legally binding decision to resolve the dispute
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effectiveness of human resource management
 indicators
– corporate culture -> values, ideas, norms shared by people of the bus. –measured by internal
process approach, effectiveness is measured by the internal health + efficiency of the bus.
– benchmarking key variables -> setting standards for measurement e.g. output per worker can be
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internally set or recognized standards –allows the bus. To pinpoint areas they are not performing well
in = motivation
changes in staff turnover -> higher than normal rate indicates lack of job satisfaction –assessing
factors behind the rate can help to eliminate the problem
absenteeism -> failure of an employee to turn up to work like staff turnover rate seeking the reason
can help to eliminate the problem
accidents -> to improve safety bus. Can implement an accident and safety improvement plan
levels of disputation -> frequency/severity of disputes can indicate the effectiveness of grievance
procedure
worker satisfaction -> can be assessed through surveys, polls, suggestion boxes can help to develop
plans for the future
Disputes case studies
o Nurses Causes –the award for public system nurses& midwives expired in June 2008
o
NSW nurses association put in a claim involving -5% pay increase per year –increase in
employer superannuation contributions -25% penalty loading for night work –balance
between permanent/temp. staff –flexibility in shift patterns –fairness for part time staff
Action –no real strike action –negotiation/mediation successfully managed because nurses
didn’t have to force strike action Resolution –NSW gov. offered improved pay offer of
7.95% over 2 years –ongoing nurse education and referred night duty issue to the industrial
relations commission
Toohey’s Drives Causes –Toohey’s originally told drivers they would lose their contract
after July 31 when they replaced Toll Holdings with Linfox –Linfox offered drivers their
contracts back under a new agreement cutting pay by up to 42% and requiring them to install
$50000 protective coverings Action –blockade/pickets -57 drivers blockaded outside the
brewery, vowing to stay put until management agreed to hear their concerns –Public service
association banned the serving of Toohey’s products in parliament on June 22 Resolution –
Grievance procedures –there was no originally discussion –NSW Industrial Relations
Commission ordered drivers to return to work and for managers to meet with drivers –talks
with the company and drivers did not resolve the dispute negotiation was the next step, after
an 8hr meeting with Tooheys and other parties a fair rate of pay and more secure contract was
determined