Strategies in Human Resource Management
Sylalbus
 leadership style
 job design – general or specific tasks
 recruitment – internal or external, general or specific skills
 training and development – current or future skills
 performance management – developmental or administrative
 rewards – monetary and non-monetary, individual or group, performance
pay
 global – costs, skills, supply
 workplace disputes
– resolution – negotiation, mediation, grievance procedures, involvement
of courts and tribunals
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leadership style
Leadership styles
 Basic management approaches:
o The classical authoritative, autocratic (directive) approaches –
focus on planning, organizing and controlling
o The behavioral approach – sees management as leading,
motivating and communicating
 Most commonly seen in participative or democratic
leadership style
o The contingency approach – uses most appropriate approach
depending on the situation and changes in circumstances
Leadership style
Directive
 Emphasis on immediate
compliance from employees
 Other labels: autocratic,
doctorial, coercive
Visionary
 Emphasis on long-term vision
and leadership
 Other labels: big picture,
authoritative
Affiliative
 Emphasis on the creation of
harmony
 Other labels: harmonizer
Participative
 Emphasis on group consensus
and generating new ideas
 Other labels: democratic
When the style works best
 In a crisis
 To kick start a turnaround
 With problem employees
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When changes require a new
vision
When a clear direction is
needed
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To build buy-in or consensus or
to get input from valuable
employees
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To build buy-in or consensus or
to get input from valuable
employees
Pacesetting
 Emphasis on accomplishment of
tasks to high standards
Coaching
 Emphasis on the professional
growth of employees
 Other labels: developmental
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To get quick results from a
highly motivated and
competent team
To help an employee improve
performance
To develop long-term strengths
Australian managers not common uses of directive (autocratic)
approaches
Styles most effective in Aus – more egalitarian and empowering and less
directive than in other countries
Employees in Aus don’t appreciate an authoritarian or directive
management style
Employees feel more committed in workplace where they're consulted,
empowered and recognized for achievements
job design – general or specific tasks
•Job design
oProcess of designing the content of a job and how it interacts with other jobs
and employees
•To motivate and retain and employee and achieve business goals
•Dependent on job analysis
•Job analysis
•Detailed ongoing process, which is a detailed analysis of, all the tasks,
responsibilities, personal attributes and reporting relationships needed in a
position
Involves a number of steps:
•Analyze existing work situation
•Observation
•Feedback
•Organizational data
•Identify technical, managerial, administrative tasks to be performed
•Identify needs and aspirations of employees for new positions
•Decide how the job will fit in with the work group
•Consult with key stakeholders and modify as required
•Implement changes slowly, provide training consult and use feedback to modify
•Include procedures for review of progress
•Assess and review progress, discuss with employees
Job Design Methods
•Job design is a useful method in developing the knowledge and leadership skills
of employees identified for future promotion and succession planning
Specialized Job Design
•Involves jobs being broken down into specialist skills areas in order to improve
knowledge and skills to increase output, reduce errors and labor cost and to
control quality.
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recruitment – internal or external, general or specific skills
Recruitment
Recruitment is the process of locating and attracting the right quantity and quality
of staff to apply for employment vacancies or anticipated vacancies at the right
cost.
o The most visible aspect of the recruitment process is the job
advertisement
o As businesses become more global in orientation, recruiting a diverse
workforce at all levels is becoming more important in communicating
effectively with a wide customer base and in demonstrating corporate
social responsibility, which is highly valued b consumers and employees
o The sources and methods used will depend on the recruitment goals and
policies of the business, such as preference for internal recruitment, the
conditions of the labor market, the location of the business, the financial
or other resources of the business, and the specifications for the job to be
filled.
o Internal recruitment may be used as a strategy to motivate and reward
employees
o Most businesses use a mix of internal and external recruitment, and
require a mix of general and specific skill
A poor selection process leads to increased costs and lower productivity by
increasing (among other things)
 Training costs
 Job dissatisfaction, lower performance, industrial unrest/labor
turnover if the business or the job does not meet the expectations
of candidates selected
 The absenteeism rate if staff feel inadequate for the job/business or
feel excessive work pressure
 Accident or defect rates, fines if inappropriate/untrained staff are
selected
 Claims of discrimination if the process is not undertaken
appropriately
Internal or external
Internal recruitment involves filling job vacancies with people from within the
business
External recruitment involves filling job vacancies with people from outside the
business
o Internal recruitment sources employees, former applicants and former
employees, and they may be invited to apply through intranet postings,
staff records, promotion lists, word of mouth, email and other methods.
o Employee referrals are popular, when accompanied by an employee
bonus, and useful for bringing in staff with the right ‘cultural fit’
o External recruitment employees may be obtained through traditional
methods such as newspaper advertisements, online advertisements and
referrals through recruitment agencies, company websites, trade unions,
trade shows, management networks, professional associations, schools,
radios, and television
o The fastest growing recruitment methods today are via social networking
sites
o Some firms cite online company videos as having response rates of up to
18%, far exceeding that of other recruiting strategies.
o It is very successful when used on mobile phones, with videos of going
‘viral’
o This is important for businesses that need to be constantly recruiting,
such as technology, mining and hospitality companies.
Advantages and Disadvantages
General or specific skills
General Skills:
o Many businesses focus on attracting staff with general skills, attitudes and
behaviors that are a good cultural fit for their business
o Key general skills include flexibility and versatility, social confidence, a
positive attitude, motivation, ability to work as a team or independently,
leadership and decision making styles, willingness to learn, and ability to
work under pressure
o General skills are important because many jobs today require to work
independently and undertake many different tasks.
Specific skills:
o There is a significant shortage developing in more highly skilled and
processional areas including specialist project management skills
o Industry sources have been critical of Australian firms for not investing in
training their staff for developing workforce needs and changing
organizational structures
o Employee poaching is frequently used
o Employee poaching is the practice of enticing employees to work for
another business
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training and development – current or future skills
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Training and Development: current or future skills
Training aims to develop skills, knowledge and attitudes that lead to superior
work performance
Critical in Australia today due to:
o Labour market problems
o Shortage of skilled labour
o Mismatch of skills required and available
Can be overcome by commitment to ongoing training
Development is focused on enhancing the skills of employees in line with
changing future needs of the business
o Encourages employees to take advantage of opportunities to develop
career with business
o Business benefits by retaining the employee’s experience and
knowledge thus helping It maintain competitive advantage
Choosing nature of training and development requires systematic process to:
o Evaluate needs of the business
o Supply of these skills in the economy
o Demand for these skills
o Changing nature of work and general pattern of employment
Shift to a largely service-based economy has seen traditional skills,
particularly those in manufacturing become obsolete
Need to consider skills they can develop internally and those which will
require recruitment
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Businesses will need to consider these options:
o Invest in further in-house training and development
o Recruit staff for specific skills
o Retain experts who retire on part-time basis
o Retain women through flexible work structures such as
telecommuting
o Share staff with other firms, or do work for other firms (insourcing)
o Outsource functions to specialist firms or agencies, or even overseas
o Sponsor overseas migrants for areas of major shortages
o Build networks or alliances with other firms with specialist skills or
skills needed in the future
performance management – developmental or administrative
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Performance management
A systematic process of evaluating and managing employee performance in
order to achieve the best outcomes for a business
Two objectives:
o Evaluating an individual’s performance
o Using that information to develop the individual
Most admired business’s view performance measures for human resources
as equal to financial performance measures
Managing people effectively is critical for business success
Performance appraisal and management systems can be designed to meet
two purposes:
o Developmental
o Administrative
Developmental
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This model is focused on using data to develop individual skills and abilities of
employees so that they:
o Improve their effectiveness in their roles
o Overcome weaknesses
o Prepared for promotion
Best achieved through:
o Year round periodic feedback
o Shared discussion that is both empathetic and goal focused
Administrative
This model provides information, often following annual appraisal
Can be used by management for planning in human resource functions such
as:
o Training
o Development
o Rewards
o Pay levels
o Benefits
o Performance improvement
Focus is collecting data to manage HRM function more efficiently
Benefits of effective Performance Management
Benefits for the business:
o Assists with human resource planning
o Plan to overcome gaps or weaknesses found in performance
o Shows effectiveness of current selection processes and whether staff
recruited match the cultural fit and skills required for the organization
o Identifies training and development or legal compliance needs
o Evaluation of rewards and benefits programs
o Communicates expectations, helps build trust, promotes long-term
organization development
o Helps identify, motivate and retain talented staff for leadership
succession
o Identifies and documents poor performance, and links it with training
and improvement strategies
o Helps build best practice culture
Benefits for individual
o Comparison of contribution to organization and performance against
agreed standards
o Helps assess rewards and benefits linked to performance
o Builds self-efficiency as contributions recognized important in
motivation and retention
o Identifies strengths and weaknesses, creating opportunities for
training and development, coaching or mentoring
o Creates opportunity for employee to provide feedback
o Initiative recognized and rewarded
o Fosters promotion on merit
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o Employee focus is aligned with organizational strategy
Performance appraisal and performance management systems often
regarded as surveillance systems, dreaded by employees
More readily accepted by employees when designed collaboratively with key
stakeholders
Effective performance appraisal systems set clear expectations and standards
in advance, against which performance can be measured, rewarded and
plans for improvement developed
Effective performance management is fostered when:
o Businesses have clear job description
o Match people with right skills to the role and culture of business
o Set mutually agreed goals and standards for performance
 Include people based goals for everyone including senior
management
o Provide appropriate induction, training and development so staff are
competent and can experience personal growth
o Provide effective training for those leading performance appraisal and
management
o Provide regular and constructive feedback to staff on performance
o Provide opportunities for internal promotion and development,
provide support, counseling, mentoring or coaching to support staff
o Recognize and reward employees appropriately for their
achievements
o Use employee survey and feedback, including exit interviews, to
assess the effectiveness of the performance management system and
staff satisfaction and to understand the reasons for staff turnover
rewards – monetary and non-monetary, individual or group, performance
pay
Rewards
• Rewards motivate all employees to work to their potential and cooperate
with each other to achieve the goals of the business.
• Some rewards are a legal entity such as superannuation, sick and annual
leave.
• Rewards can be financial or nonfinancial.
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Financial- additional monetary payments that are given to employees
and are beyond the employee’s minimum legal
entitlements. Monetary rewards are rewards that are given for
an outstanding performance. They are important tools used by
companies and even parents to act as incentives in motivating
individuals to continue with their good work.
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Non-financial- non monetary benefits associated with the job itself
such as fringe benefits, status-related benefits and intrinsic
rewards. Compensation given in a transaction which does not
involve cash. A non-monetary reward can consist of almost any
material object such as jewelry, precious metals or an
automobile for example. In business, a non-monetary reward
can also be a service such as improvements made on a property
or repairs done on a car.
Individual or group.
• Rewarding performance based on group achievement has benefits and
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negatives:
Benefits
encouraging a greater sense of team work
employees become more motivated
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negatives
not all employees may apply equal effort
employees may have different personal goals
conflict may occur within the group
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Performance pay
• Performance pay - A financial reward system for employees where some or
all of their monetary compensation is related to how their performance
is assessed relative to stated criteria. Performance related pay can be
used in a business context for how an individual, a team or the entire
company performs during a given time frame.
• are advantages and disadvantages of this concept:
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Advantage
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Performance may improve as employees work more
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effectively.
it encourages unmotivated and inefficient individuals
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Disadvantage
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the performance of employees may be difficult to measure for
some jobs. some employees may simply seek nonfinancial rewards.
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global – costs, skills, supply
Global strategies: costs, skills, supply
 Initially - expand through indirect exporting and demand via internet
o Gain experience - expand by exporting and sourcing products,
services, processes through global web
 Some succession felt - expansion through licensing and
sales offices, relocation of production and acquisition or
joint ventures
 China, India and Philippines most popular locations for outsourcing
 Influences on choice of location - labour costs, issues including biz risk,
service quality, infrastructure, biz regulations, political stability and
language skills
 Planning to expand overseas, consider which approach:
o A polycentric staffing approach – uses host country staffing with
parent country staff in corporate management at its headquarters
 Helps company access good market knowledge, cost
efficient, satisfies local pressure for employment
opportunities
 May limit management experience for host-country staff
o A geocentric staffing approach – uses the staff with the most
appropriate skillset for a particular role and location, and builds a
pool of managers with global experience
 Can be complex and expensive – local employment
regulations, relocation and retraining costs
o An ethnocentric approach – uses parent-country staff in its
organisation
 May limit ability to interact with customers and learn from
overseas market
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workplace disputes
– resolution – negotiation, mediation, grievance procedures, involvement
of courts and tribunals
Resolution of disputes + benefits and costs
• Mediation: the confidential discussion of issues in a non-threatening environment,
in the presence of a neutral, objective third party.
○ Third party can be a representative from Fair Work Australia, Anti-Discrimination
Board, gov agency.
○ Increasingly popular as it empowers parties to resolve their own disputes and
reduces risk of escalation.
• Grievance procedures: are formal procedures, generally written into an award or
agreement, that state agreed processes to resolve disputes in the workplace.
○ Reduce risk of it becoming serious dispute.
○ Most businesses have one formal process.
○ Process can include: a complaint -> middle mgmt meeting with complainee -> goes
higher in the organization -> external parties involved.
○ Needs full description of the grievance, opportunity for everyone to air views.
○ May deal with individual or collective issues.
• Involvement of courts and tribunals: most likely to occur when disputes have not
been solved in earlier stages. Different process for different contracts:
○ Conciliation and arbitration: when it is not resolved in the work place, it is referred
to Fair Work Australia.
§ Conciliation is the process where a third party is involved in helping two other
parties reach an agreement. May require increased negotiations, develop different
strategies. If this fails…
§ Arbitration is the process where a third party hears both sides of a dispute and
makes a legally binding decision to resolve the dispute.
§ This is more formal, with court like proceedings. An order is handing down, which
is the decision which both parties must carry out.
Common law action: is open to any party involved in or affected by industrial action.
Can make claims for damages or breaches, can go to state or federal court. Such
action is considered a last resort (e.g. a picket line is stopping the business from
operating in the long term). Very costly. Also available to those who are on individual
common law contracts i.e. not covered by an award.
Resolution of disputes:
Key stakeholders involved in resolving disputes include:
 Employees
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Employers
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Governments
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Trade unions
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Employer associations
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Courts
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Industrial tribunals
Dispute resolution in Australia has been heavily influenced by the government
philosophies and evolving policies of industrial relations.
Liberal party policies:
 Traditionally more supportive of free market principals and business.
Labor party policies:
 Are more representative of their political base, which are trade unions.
Resolution in the workplace has begun to change through collective and enterprise based bargaining rather than individual bargaining.
Thus, before either party may take protected legal action, there must also be proof
that both parties have attempted to bargain in good faith.
 In some cases where collective/enterprise bargaining doesn’t resolve disputes,
conciliation is still available through fir work Australia.
Negotiation
Negotiation is a method of resolving disputes when discussions between the parties
result in a compromise and a formal or informal agreement.
This process can benefit the parties involved by:
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Increasing their knowledge of a company policy
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Businesses objectives
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Workers concerns
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Issues involved in implementing change
Most Australia disputes are resolved by resumption of work, without negotiation
such as following a "stop work" meeting.
 This may later lead to an agreement change.
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Most other disputes are resolved by negotiation with the intervention of a third
party
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Options available to the parties involved may be determined by the nature of
industrial agreements covering employees bad the goals of both parties.
Glossary:
In good faith means the parties meet regularly with a willingness to reach an
agreement
Negotiation is a method of resolving disputes when discussions between the parties
result in a compromise and a formal or informal agreement.
Workplace dispute
Industrial dispute: a disagreement over an issue or group of issues between an
employer and employees, which results in employees ceasing work.
• Strikes refer to situations in which workers withdraw their labor.
• Lockout: Occurs when employers close the entrance to a workplace and refuse
admission to workers.
• Pickets: Protests that take place outside the workplace, generally associated with a
strike. Unionists stop the delivery of goods and try to stop the entry of non-union
labor into the workplace.
• Disputes are conflicts, disagreements or dissatisfaction between individuals and/or
groups. Conflict between stakeholders is inevitable in workplaces. Stakeholders
often have conflicting interests, particularly over the degree to which employees
should share in the profits.
• Disputes may be informal, formal, overt or covert, and can be very costly to
businesses at the time of the dispute.
• Covert disputes are disputes that are only recognized by the business itself.
Employers and human resource managers need to be aware of and respond to
workplace conflicts as they can progress to legal actions such as formal (and overt)
claims of harassment and bullying. Workplace conflicts also lead to other problems,
such as higher levels of absenteeism and low productivity.
• The level of disputes varies within and between industries and businesses. Some
employees seek to minimize conflict, others stifle it through tactics, while others
manage more collaboratively through negotiations.
• The major causes of disputes recognized by the ABS are disputes relating to
negotiation of awards and enterprise agreements. These issues typically include
disputes about:
-Remuneration, including matters such as wages, allowances, entitlements and
superannuation
-Employment conditions, including matters such as working hours, leave and
benefits
-Job security issues, including matters such as outsourcing, use of contractors,
reclassification of the workforce and other industry related matters.
• Matters outside agreements also cause disputes, such as:
-Health and safety, including matters such as protective clothing and working
conditions, overly strenuous physical tasks and employee amenities.
-Managerial policy, including matters such as decisions and policies of line managers,
such as disciplinary matters, suspensions, discrimination, decisions that impact upon
work and family issues, production limits or quotas, principals of promotion and
other work practices.
-Union issues, including matters such as employee approaches to the union, and
inter-union and intra union disputes