HSC Human Resources Topic 4

To retain, reward and motivate effective and skilled employees, being sure to manage the total formal relationship between employer and the employees to assist in the achievement of strategic goals of the business

PiCLES
Productivity Increase (output per worker)
Cost decrease (outsourcing work)
Legal compliace (Legislation)
Ethical & Social responsibility

Outsourcing refers to the use of external sources or businesses to undertake business functions or activities for the business.

Typically performed to:
- Obtain a superior service: Businesses that specialise in specific functions will provide a better service, increasing efficiency and quality.
- Focus on the core business.
- Lower costs (labour costs and input costs)

The use of:
- Recruitmemt firms for aquisition
- External trainers for training and development
- Contractors

An external provider of services to a business. It may be an individual or a business and can be domestic (within the country) or global (outside of the country)

Domestic
- allows firms to source people and have them physically on site rather than remote services.

Global
- Lower costs of labour, means lower contract costs.
- Specialised services: e.g. 24/7 telephone service
- Potential for better quality than domestic providers.
- Efficient, effective and access to skills/equipment not otherwise possible.

- Loss of control and security of intellectual property
- Lack of systems and remedies when contracts go unfulfilled.
- Language barriers
- Resistance from staff
- Potentially reduced quality of services
- Resistance from customers (ethics - sweatshops)

Absenteeism
Accidents
Benchmarking key variables
Corporate culture
Changes in staff turnover
Disuputation levels
Worker Satisfaction

Performance measures that are used to evaluate organisational or individual effectiveness

The values, ideas, expectations and beliefs shared by members of a business.
- Indicated by:
i. High staff turnover
ii. Poor customer service
iii. High levels of absenteeism
iv. Accidents
v. Disputes and internal conflict.

The process by which indicators are used to compare business performance between sectors and businesses
i. Informal Benchmarking (networking informally eg discussion)
ii. Performance bench marking (comaparing with another org)
iii. Best Practice benchmarking (comapring with the best)
iv. Balanced scorecard bench marking (M+C pretty much)

Aquisition
Development
Maintenance
Seperation

Aquisistion involves analysing the internal and external environment of the business to identify staff needs & accurately recruit, select and place employees.

Recruitment is the process of locating & attracting the right quantity and quality of staff, to achieve the goals of the business.

Employee selection involves gathering information about each applicant and using this criteria to select the most appropriate employee for the given position

Placement involves locating the employee in the position that best utilises their skills to meet the needs of the business.

Development involves enhancing the skills of the employee through training, mentoring (induction), coaching and performance management to enable them to develop a career within the business.

A carefully planned program that introduces a new employee to their new job, co-workers, the business and its overall culture
- Prior to a new employee's first shift, they must complete an induction program in-store and online via the "MeTime" portal

Training follows an effective induction program and involves seeking a long-term change in employees skills, knowledge, attitude sand behaviour to improve work performance
- MA spends \$60 million annually on training

Maintenance focusses on the processes needed to retain staff and manage their wellbeing. This may involve managing staff safety, health, wellbeing and communications effectively

Benefits are an integral element in building workplace culture and can be monetary or non-monetary.
- Mcdonalds runs a pay and rewards program which follows a 'pay for performance' philosophy to retain staff. Benefits include cash and share bonuses, company cars and recognition programs

Seperation is where an employee leaves a business, thus may be voluntary or involuntary

It occurs when an employee chooses to leave the business
- Resignation, relocation, retirement or voluntary redundancy

Occurs when an employee is ordered to leave a business
- Contract expiry, retrenchment (becoming redundant), dismissal

STEELS
Stakeholders
Technology
Economic
Ethics + CSR
Legal
Social

Stakeholders are any individual or group that has a common interest in or is affected by the actions of an organisation. Stakeholders include:
- Employers, employee's or employer associations
- Unions (organisations formed by employees to improve wages and working conditions) eg: workers rights
- Government organisations (Fair work Australia)
- Society

Technology offers major improvements in productivity, communication and competitiveness. Thus it is often a source of differentation and competitive advantage.

+ Improved productivity, communication and competitiveness
+ Can access employees from anywhere eg; teams, zoom
- Technology may require training costs
- May increase redundancies
- Decreased work-life balance (always 'on call')

Economic influences include structural change, globalisation and the overall demand for labour + the ability of business to pay workers.

Refers to the change in the nature and pattern of the production of G+S within a business due to external economic conditions. Eg: Increased demand for workers with literacy, numeracy and STEM knowledge due to automation and technological upgrades.

A socially responsible employer recongises that:
- Pleasant working conditions is crucial in motivating and retainign staff
- Customers will inevitably figure out which businesses are socially responsible or not
Thus many businesses value the beneifts of a more committed workforce achieved through embracing the principles of CSR.

1) A Code of conduct to perpetuate the acceptable behaviours within a business
2) A Code of ethics to state the businesses values and principles in which it folows and believes in

- Mcdonalds have diversity, equity and inclusion policies in place making it a leader in diverse workplaces. Moreover, MA has a 'responsible student employment policy' ensuring that young-full time students can work and balance school life appropriately. EG: <2 shifts per week during term-time

The legal framework involves common law, minimum employment standards and pieces of legislation

Employers must pay income & work expenses, comply with industrial laws and provide a safe workplace for employees

Employees must obey lawful and reasonable demands made by the employer, use care and skill in their work and act in good faith/the best interetss of the business.

The Fair work act 2009 reformed the industrial relations system in Australia. This national system established ten minimum employment standards to protect employee's, particularly those who are low paid. Moreover this commission helps resolve industrial disputes and manage awards.

Awards are legal documents that outline the minimum wages and conditions of work for employees across an entire industry.
- The fast food award covers employees across Australia in the fast-food industry

Collective agreements made between a group of employees and an employer about the T&C's of employment

PaRTLy GRaDD:
Performance management
Recruitment
Training and development
Leadership style
Global strategies (costs, skills, supply)
Rewards
Design (Job Design)
Dispute

Performance management addresses both individual and business performance. Successful individual performance will often translate into the achievement of strategic objectives being met. Performance management can be divided into two models; developmental or administrative
- MA complete performance reviews twice a year to assess their progress and set training and development goals for the future

This model improves individual performance through establishing objectives such as reaching sales targets that are consistent with the organisations overarching goals.

This model assesses the progress of the business in meeting its strategic goals & where necessary identifying the areas for improvement such as employee performance or establishing new goals

Recruitment is the process of locating and attracting the right quantity and quality of staff to fill in employment vacancies or anticipated vacancies. Recruitment can be internal (from within the business) or external (from outside the business)

+ Recognises and rewards staff making it motivational for staff as they see the oppurtunity for promotion building commitment and loyalty
+ Cheaper than external recruitment
+ More successful and productivity is maintained
- Can reinforce negative workplace culture creating rivalry for positions or between employees
- Can demotivate staff if not chosen, resulting in worsened producivity and working conditions

+ Wider applicant pool, granting access to specific skills
+ Saves the training costs
+ Introduces new ideas, perspectives and skills
+ Publicity and public relations improvements
- Risks associated with unknown staff eg; not fitting the culture
- Loss of productivity in initial stages as employee fits in
- Can demotivate staff internally
- Costly and time demanding process

All attempts to improve productivity by increasing an employee's ability to perform in accordance to the changing and future needs of the business. This includes the developing of skills, knowledge and attitudes
- MA provides extensive training oppurtunities for its employees and franchises such as potential franchisees attending Hamburger university in Chicago

Leadership style refers to the way that managers communicate with their employees and how they inspire & motivate them to work together to achieve an organisations goals. Leaderhsip styles include
- Autocratic
- Participative
- Democratic

Where management make all decisions with no input from staff & allows no room for employees to contribute to the process of decision making
+ Effective for simple tasks requiring unskilled labour and accelearting decision making processes
- Promotes low morale and employee productivity, possibly increasing staff turnover and demoting worker satisfaction

Where management includes employees in decision-making processes, promoting fresh ideas, employee engagement, producivity and morale. However this may result in slower and more complex decision making processes, also blurring job descriptions and structure

Leadership where staff are given the freedom to make their own choices and decisions with no input from management.
+ increases engagement, productivity and motivation by recognising employees as capable. Fosters new ideas
- relies on skilled and experienced staff with shared visions and interests. Thus it can be quite complex, slowing decison making and increasing workplace conflict.

Global strategies are those that respond to globalisation and technological innovation within industries which allow businesses to gain a competitive advantage. The main global strategies are concerned with costs, skills (labour) and supply and include the establishment of offshore subsidaries, foreign labour and outsourcing.

Costs refer to the increasing cost of labour and thus a HR managers response to this which may involve in opting for low-cost labour. EG: Restructing their workforce by establishing offshore subsidaries to take advantage of lower foreign labour costs

Alongside costs, skills have faced a shortage in Australia thus HR management must take advantage of skilled migrant workers through temporary work visas or offshore subsidaries

Supply costs and other costs associated with production have rised domestically whilst becoming cheaper internationally. Thus HR managers are encouraged to move production overseas to produce g+s at competitive prices

Rewards can be monetary, including those reflected in pay or financial value. Rewards can also be non-monetary including those that do not have financial value but are still desireable such as flexible work payments.

Remuneration refers to both the financial and non-financial beneifts an employee recieves in return for their work effort.

MA offers a range of rewards for all level of staff members. For example, top performing employees are rewarded with whats known as "the Maccas enjoyment bonus" granting them wishes whilst corporate headquarters employees may be rewarded with company cars, health services and even fitness memberships.

Job design refers to the number, kind and variety of tasks that a worker is expected to carry out in the course of performing their job.
- General tasks refer to the greater variety of tasks to be performed by workers to improve productivity
- Specific tasks refers to specialisation as workers are issued with perfroming specific and specialised tasks

MA employees have specific tasks built into their job following Fredrick Taylor's scientific management approach. Moreover, MA can source people with only general capabillities (unskilled labour) and still continue to provide its customers with what they want.

A workplace or industrial dispute is a disagreement over an issue or group of issues between employees and employers. Disputes should follow grievance procuders which may include depending on severity:
1) Negotiation
2) Mediation
3) Arbitration

A discussion between the parties in an effort to compromise and reach a mutual agreement

A discussion involving a third-party mediator who's role is to assist with the achievement of an agreement

The formal process involving the workplace dispute being placed before a court or Fair work tribunal to reach a legally binded order or agreement

Grievance procedures are the formal procedures generally written into an award that state the agreed processes to resolve workplace disputes.

MA has clear employee grievance procedures set in their standards of business conduct. Nonetheless, As of the start of 2024, MA faced an \$100 million unpaid wages claim following widespread and systematic unpaid work across its establishments.