Context. An Overview of Human Resources. Context 6/25/2012. Role of human resource management. Key influences on Human Resources

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1 Context An Overview of Human Resources Business Studies Student Conferences 2012 Mohan Dhall PLC Sydney 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 Mohan Dhall 2 Context 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 Role of human resource management Strategic role of human resources Interdependence with other key business functions Outsourcing Human resource functions Using contractors Domestic, global Mohan Dhall 3 Mohan Dhall 4 Stakeholders Employers Own the factors of production Seek a return on investment Employees Undertake labour: intellectual effort, physical effort, creative effort Responsibilities divided: managers and workers Employer associations Represent employer interests Examples include Australian Chamber of Commerce and Industry (ACCI), Business Council of Australia (BCA), Minerals Council of Australia (MCA), Australian Industry Group (AiG), Retail Traders Association (RTA). Unions Represent employee interests Examples include: Construction, Forestry, Energy and Mining Union (CFMEU 120,000 members), Finance Sector Union (FSU 50,000 members), Health Services Union (HSU 60,000 members), Australian Workers Union (AWU 135,000 members) Government organisations Commonwealth: Fair Work Australia (FWA) Workplace Ombudsman NSW: Workcover Industrial Relations Commission Society Mohan Dhall 5 Mohan Dhall 6 1

2 Qantas Engineer s Alliance We are calling for: Genuine engagement on fleet and maintenance planning A commitment to maintaining aircraft in Australia On going skills training and quality jobs Infrastructure investment for a strong Australian engineering capability A plan to take advantage of maintenance opportunities in the Asia Pacific Source: Other issues facing unions Stop offshoring our future The ACTU Congress, the Finance Sector Union (FSU) and the Australian Services Union (ASU) will be making a presentation on the state of the white collar sector which throws a spotlight on the crisis facing not just workers in the sector but the Australian economy in general. The services sector makes up 70% of the Australian economy, and employers in this sector are more profitable than theyhave have ever been. These jobs are highly skilled and important jobs yet thousands of Australian white collar jobs are under threat. The people doing this work are in administration, banking and finance, they re in payroll and human resources, they deal with your private information in legal and insurance firms, they do all the clerical, administrative and accounting work that supports all industries. The ASU and FSU have produced a video about the crisis facing this sector to summarise some of the key facts and to personalise the problem with interviews of affected workers. Source: Views/Stop offshoring our future.aspx, Mohan Dhall 7 Mohan Dhall 8 Other issues facing unions With more than 18,000 Australian finance and administration jobs offshored in the last five years, the people in the video represent the merest tip of the iceberg of those affected. The National Institute of Economic and Industry Research (NIEIR) found that 850,000 Australian jobs are at risk to offshoring by 2018, so a lot more pain is ahead for Australia. As technological change speeds up, Australia needs to have a sector that can keep up, if not set the pace. When jobs are offshored, skills are lost here which leads to a loss of capacity generally. And a loss of capacity leads to more offshoring. It s a viciouscycle cycle thatwill undermine Australia ss ability to stay afloat as a modern economy in the future. Immediately we must: Review the tax system to remove any incentives or other benefits to offshore; Create incentives for companies to maximise our skilled workforce in Australia; and Introduce consumer consent legislation so Australians can support local business Source: Views/Stop offshoring our future.aspx, Legal the current legal framework The regulatory/compliance framework The employment contract Common law (rights and obligations of employers and employees) Rights of employers Rights of employees Responsibilities of employers Responsibilities of employees Minimum employment standards (see next 2 slides) Mohan Dhall 9 Mohan Dhall 10 Minimum employment standards The NES are set out in the Fair Work Act 2009 and comprise 10 minimum standards of employment. In summary, the NES involve the following minimum entitlements: Maximum weekly hours of work 38 hours per week, plus reasonable additional hours. Requests for flexible working arrangements allows parents or carers of a child under school age or of a child under 18 with a disability, to request a change in working arrangements to assist with the child s care. Parental leave and related entitlements up to 12 months unpaid leave for every employee, plus a right to request an additional 12 months unpaid leave, and other forms of maternity, paternity and adoption related leave. Annual leave 4 weeks paid leave per year, plus an additional week for certain shift workers. Personal / carer s leave and compassionate leave 10 days paid personal / carer s leave, two days unpaid carer s leave as required, and two days compassionate leave (unpaid for casuals) as required. Source: employment standards/pages/what are the 10 nes entitlements.aspx Minimum employment standards Community service leave unpaid leave for voluntary emergency activities and leave for jury service, with an entitlement to be paid for up to 10 days for jury service. Long service leave a transitional entitlement for employees who had certain LSL entitlements before 1/1/10 pending the development of a uniform national long service leave standard. Public holidays a paid day off on a public holiday, except where reasonably requested to work. Notice of termination and redundancy pay up to 4 weeks notice of termination (5 weeks if the employee is over 45 and has at least 2 years of continuous service) and up to 16 weeks redundancy pay, both based on length of service. Provision of a Fair Work Information Statement employers must provide this statement to all new employees. It contains information about the NES, modern awards, agreement making, the right to freedom of association, termination of employment, individual flexibility arrangements, right of entry, transfer of business, and the respective roles of Fair Work Australia and the Fair Work Ombudsman. Source: employment standards/pages/what are the 10 nes entitlements.aspx Mohan Dhall 11 Mohan Dhall 12 2

3 Wage rates All Australian workers are entitled to a minimum wage and set of basic conditions and rights at work. Your wage is set out in your award or agreement and it can not fall below the Federal Minimum Wage. Your wage will also be determined by your job classification and any overaward payment your employer provides. Federal Minimum Wage The Federal Minimum Wage is reviewed every year. Right now it is $ per hour or $ per week. This wage rate is the minimum wage for an adult permanent worker employed by a company. (Note that minimum wages for workers in some States are different.) Casual workers should receive a loading on top of the permanent hourly rate of between 15% and 25%. Wages for Junior workers (people under 21), apprentices and trainees are usually less than the adult rate. The wage rate that applies to you might be different to the Federal Minimum Wage. Wage rates for different industries, occupations, employers and job types are set out in awards and agreements. Wage rates Job Types You might be classified as a permanent or casual worker, or you might be a sub contractor. Permanent workers might be full time (working 38 hours per week) or part time (working less than 38 hours per week). Permanent workers have an expectation of ongoing employment and regular shifts, and are paid annual leave, sick leave and other types of leave and entitlements. Casual workers are employed on a shift to shift basis and are not paid annual or sick leave. Casual workers have a higher hourly rate of pay to compensate for their lack of conditions and the insecurity of their employment. Sub contractors are not technically employees and the minimum wage does not apply to subcontractors. Sub contractors run their own businesses and typically work one off jobs, setting their own hours, and using their own equipment. They negotiate the cost of their labour with the business that they enter into a contract with. Sub contractors should take care to ensure that they are not in a sham arrangement, whereby they are actually being required to work as an employee but are being paid as a contractor. Trial Work You should be paid for every hour of work that you do, whether that work is a trial shift or part of ongoing employment. It is illegal to work trial shifts and to not be paid, or to be paid under the minimum rate of pay for that work. Unpaid trial shifts are unpaid wages, and you can lodge an unpaid wages claim if you are not paid for a trial. Source: *Note: the ACTU is currently seeking a $26 per week rise to the national minimum wages Mohan Dhall 13 Mohan Dhall 14 Key influences (cont d) Awards Simplified system of Federal Awards Provide the safety net ( BOOT ) Enterprise agreements Collective and individual Union role Other employment contracts Casual, common law contracts occupational health and safety and workers compensation Now called Work Health and Safety Act 2011 (BSW) antidiscrimination and equal employment opportunity Commonwealth Acts Economic Technological Social changing work patterns NSW Act living standards Mohan Dhall 15 Mohan Dhall 16 Ethics and corporate social responsibility (CSR) The interaction between the law (compliance) and what is right to do Must ethics carry a cost? The Triple bottom line and CSR Case study Westpac Banking Corporation (WBC) Mohan Dhall 17 Processes of human resource management Acquisition Recruitment and selection Development Training, development and education Role of induction training Maintenance Motivation Intrinsic and extrinsic Monetary and non monetary rewards (financial and non financial incentives) Mohan Dhall 18 3

4 Processes of human resource management Separation Voluntary and non voluntary Unfair dismissals Costs associated with separation and rerecruitment Leadership style Refers to how businesses are led by managers Leaderships styles vary from permissive to highly restrictive Permissive Controlled Autocratic leadership styles are task focused Democratic leadership styles are people focused Mohan Dhall 19 Mohan Dhall 20 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 global migration (200 million work outside of home nation) Supply Note relationship to outsourcing Mohan Dhall 21 Mohan Dhall 22 Workplace disputes Resolution Negotiation Mediation Grievance procedures Involvement of: Courts Tribunals Case Studies of disputation: Effectiveness of human resource management Indicators Corporate culture What is the world s best workplace? Features of successful workplaces Benchmarking key variables (KPIs) Changes in staff turnover People who leave and need replacing Absenteeism Health issues Is the workplace safe? Accidents LTIs Levels of disputation Not always measured by strike action Overt and covert Worker satisfaction Qualitative surveys (QWL) Mohan Dhall 23 Mohan Dhall 24 4

5 Specimen Paper Question Data related to a small manufacturing business is shown in the table Number of employees Number of days lost due to disputes Absenteeism (number of days/employee) 5 20 Turnover 10% 10% What possible conclusion can be drawn from the data? (A) Job dissatisfaction is being demonstrated in a different way. (B) The staff turnover levels reflect increased job dissatisfaction. (C) The days lost to disputes reflect increased job satisfaction (D) Absenteeism levels indicate increased job satisfaction. 7. An employee has made a complaint to his manager regarding the small number of shifts he is being given per fortnight. Which strategy should the manager use first to manage the situation effectively? (A) Mediation (B) Negotiation (C) Monetary rewards (D) Non monetary rewards 14. A manufacturer operating in Australia is having legal proceedings brought against it by its employees. The case concerns serious health issues resulting from long term exposure to fumes from the production process. Which legal and ethical responsibilities might this manufacturer have failed to fulfil? (A) Workers compensation requirements and providing a duty of care (B) Occupational health and safety requirements and providing a duty of care (C) Workers compensation requirements and providing fair working conditions (D) Occupational health and safety requirements and providing fair working conditions Mohan Dhall 25 Mohan Dhall An international clothing manufacturer has closed its Australian manufacturing plant and relocated to Indonesia. What are the likely effects of this decision on the business? (A) Increased wage costs and increased employment in Australia (B) Decreased wage costs and decreased employment in Australia (C) Decreased wage costs and increased employment in Australia (D) Increased wage costs and decreased employment in Australia 20 What is human resource management? Question 23 (8 marks) Why are the processes of human resource management important for business to achieve a competitive advantage? (A) (B) (C) (D) The communication of goals and the provision of resources to employees The daily supervision, allocation of duties and evaluation of employees The use of domestic and global contractors The organisational hierarchy of a business Mohan Dhall 27 Mohan Dhall 28 5