BUSINESS STUDIES TOPIC 4: HUMAN RESOURCES

ROLE OF HUMAN RESOURCE MANAGEMENT Human resources are the processes of managing employees in a workplace which involves:

o Reviewing goals of the businesso Rewarding valued employeeso Working within the legal framework that regulates the employment relationship

Strategic role of human resources Human Resource Management: is the process of managing staff within an organisation, focusing on the

relationship between the employer and employee Employer: for legal purposes

o Exercises control over employeeso Has responsibility for payment of wageso Holds power to dismiss employees

Employee: is a worker under an employer’s control which may involve:o Location of workplaceo Way in which work is performedo Degree of supervision involved

HR sees employees as an asset rather than a cost, encouraging open communication & goal orientation HR is extremely important as labour is 60% of a business’ operational costs strategic role is designed to assist businesses to better meet the needs of their employees while

promoting company goals HR management deals with: recruitment, training & development work incentives & firing Ability of being proactive & adopting long-term think approach Managers may seek to affect & improve HR policies Business must also develop appropriate performance review measures Benefits of long term (strategic) role to HR:

o Development of highly qualified workforceo Employment of a workforce relevant to organisation needs of a business

Interdependence of key business functions Interdependence: relationship between each of the key functional areas within an organisation and

how this impacts on its ability to achieve goals Each area will rely upon the other to conduct their role & activities in a way that contributed to the

successful operation of a business HR is heavily dependent with other key business functions Operations & HR: the operations function works closely with human resources to ensure that the

business has recruited staff with relevant skills & experience to produce the producto HR will monitor performance of employees involved in the production of g & s e.g. training and

developmentQANTAS Case Study

HR AND OPERATIONSo Effectiveness of operations affected by quality of human resources

o Adoption of new technology e.g. new aircraft, new check in system (Amadeus) requires staff to be trained o Operational changes such as cutting of flights during GFC change size and shape of workforce

Marketing & HR: staff must be motivated & skilled to develop products within the business that cater to the needs & wants of potential customers

o Through marketing that business is able to determine skills for employees to produce desired products

QANTAS Case Study HR AND MARKETING

Right staff must be employed and trained to create service that satisfies QANTAS’ consumers

o Features of product come through market research Finance & HR: budgets are often established that allocate funds towards training and workplace

education issueso HR must also work within these budget to provide needs for its employees

QANTAS Case Study HR AND FINANCE

Recent financial management decisions e.g. outsourcing, cutting flights have affected staff levels and level of industrial disputes Staffing is QANTAS’ biggest expense and effective management of staff is essential for QANTAS to maintain profitability and productivity

Outsourcing Outsourcing: is when a company takes part of its business functions and

gives it to another company to complete Outsourcing: or contracting out business functions involves the use of

third-party specialist businesses e.g. recruitment firms. It aims to take advantage of the specialist skills provided by them to achieve a reduction in labour costs

Some businesses lack funds to employ specialist HR managers to manage the role of employment relations

Often used to obtain a superior service better functional quality & lower cost service than would be provided internally

Major areas outsourced in Aus.:o Properly & facilities managemento Payroll, administration support services, call centres etc.

- Human resource functions outsourcing allow firms to focus on their core business, while HR assist by planning growth,

development & management of staff may also be used to review business practises & implemented strategies to transform the business

using ‘independent’ consultants reasons for outsourcing

o provides ability to access staff who specialise in the management, who have better understanding of employment relations

o Allows managers of business to focus on core business functions (recruitment, training development)

o Decision of a business to outscore its HR function can generate cost savings reduces need for full-time staff

Issues concerning outsourcing human resource functiono Chance that company to which HR is outsourced to may lack an understanding of the key

aspects of the business e.g. business culture/workplace conflicto Key relationship between management and staff must continue to be developed within the

business itself

- Using contractors Contractor: is an external provider of services to a business. It may be individual or a business Contractors are obtained for primarily processing functions (repetitive & easily measured) Recommended for non-core functions allowing staff to focus on the broader aspects of managing a firm D: cost increases, loss of quality, difficult coordinating activities’ & difficulty monitoring quality &

performance Independent contractors: exist in a situation where an individual’s employment by one employer is not

ongoing & agreed fee is paid for the service e.g. lawyers, builders Contract of service: is where an employee offers his/her services to an organisation on a regular basis &

is subject to lawful control & authority of the employer

Domestic contractors o Contracting people within your country o Attractive for SMEs lacking capacity to undertake internal auditing, compliance updates

QANTAS Case Study OUTSOURCING - DOMESTIC SUBCONTRACTING

Uses domestic subcontractors to create cost savings, access greater expertise and improve competitivenessDomestic voice, data and domestic services – Telstra Data centres, mid-range computing operations – IBM

Global contractors o Use of foreign contractors involves using global contractors as an external provider of

services o Allows Australian business to access use of labour without having to consider minimum

labour requirements and WH&SQANTAS Case Study OUTSOURCING - GLOBAL SUBCONTRACTING

Cost savings, access greater expertise and improve competitiveness Maintenance jobs – Singapore and NZ IT applications support and maintenance – India Reservation system (Amadeus) – Munich based (involves moving of inventory of fares, seats and boarding passes

KEY INFLUENCES

Stakeholders Are any individual/group that has a common interest in/is affected

by the actions of an organisation Stakeholders need to be considered apart from employer &

employee Each stakeholder seeks to protect & promote its own interest Include unions, employers, society, employer organisations,

employees & government organisations

- employers is the individual/organisation that pays others to work for its business

often the owners & take responsibility for the organisations goals in large businesses:

o managers are voted on by shareholders to take on this responsibility and to consult with owners to develop strategies

Human resources department specialist units un a business that have the main role of managing the issues involved in the employment relationship are also hired

Their roles include:o Working with other departments to recruit the appropriate staffo Implementing a range of training and development programs to cater for the changing staffing

needs QANTAS Case Study INFLUENCE ON HR - EMPLOYERS

Has recently reformed employment relations practices to cut costs and increase labour flexibility Restructured organisation, increased outsourcing, hired more casual staff etc

- employees employees: refer to an individual who provides his/her skills to a business in return for regular source

of income were traditionally just workers but are now more often considered in decision making process family-friendly practises such as childcare centres, flexibility in working times have been initiated employees with the assistance of trade unions have encourages employers to introduce family centred

entitlements increase job mobility in the workforce

QANTAS Case Study EMPLOYEES

Employs over 33 000 full time employees Employees’ concerned with maintenance of existing levels of pay, working conditions and job securityHave heavily supported union action in recent years

- employers’ associations employer associations: are organisations that aim to promote the interest of employers within the

business environment they lobby governments to develop policies that enhance the interest of employers & consult with

governments on changes to key policy issues e.g. the Business Council of Australia & NSW Nurses Association

The Australia Council of Trade (ACTU): lobbies the government and federal government provide improved working conditions and wage increases for Australian employees

National wage case: where trade unions, employer associations and the federal governments provide arguments to FWA on the appropriate level of increase to minimum wages

Shop steward: the unions representative in the workplace. They act as the first point of contact between the union and its members

McDonald’s Case Studyo McDonald’s Australia is a member of The Franchise Council of Australia (FCA).

o The FCA represents franchisors, franchisees and suppliers.

o McDonald’s is also a member of the Australian Industry Group (AIG), which is an employer organisation promoting members’ views to "government, regulatory agencies, tribunals, interest groups, the community and the media.”

o For example, AIG used its influence to try to prevent fast-food employers having to pay employees penalty (higher) rates on weekends

- Unions

Unions: are organisations formed by employees in an industry trade/occupation to represent them in efforts to improve wages and the working conditions of their members

1904 unions were established, giving them a powerful role in Human Resources

unions assist with workplace disputes and act as a bargaining agent in wage negotiations

advise members on rights, wage levels WH& S etc. e.g. Australian Liquor, Hospitality & NSW Nurses

Associations ACTU: Australian Council of Trade Unions lobbies the government for improved working conditions and

wage increases o Also works with other unions

Union membership has declined since 1980s due to:1. Move toward private sector organisations providing services on behalf of the government

rather than public sector2. Move from manufacturing based economy service based as traditionally service has lack of

unions (structural ∆)3. Growing number of casual and part-time workers ($$)4. Unions are not as used by women vs. men

Shop steward: the unions representative in the workplace. They act as the first point of contact between the union and its members

McDonald’s Case Studyo Trade unions have traditionally had a minor impact on the way McDonald’s conducts human resource management

worldwide. o over 4,000 McDonald’s employees in Australia now belong to the Shop, Distributive & Allied Employees’ Association

(SDA) which makes up only around 4% of the national workforce, the SDA was the party that negotiated the enterprise agreement for all McDonald’s workers in Australia.

o The SDA has come under media scrutiny for signing off on the McDonald’s Australia Enterprises on loss of penalty rates on weekend work

- Government organisations Government organisations established the legal framework by which employers, employees and trade

unions co-exist and operate within the employment relationship

Awards: a legal document that specifies the minimum working conditions that apply to all people employed in a common industry

Modern award: an industry/occupation-based award which covers all private sector employers & employees who fall within their scope, replacing all existing national system awards

Working conditions: non-wage features of employees’ workplace contract

Certified agreement: negotiated between an employer & all its employees Enterprise bargaining: the process of negotiating an enterprise agreement BOOT (better off overall test): a test by FWA to examine whether employees will be any worse off if

they sign a new wage agreement Industrial dispute: a problem that arises between an employer & employee/group of employees in the

workplace

Conciliation: when FWA offers suggestions to help resolve a dispute Fair Work Australia (FWA): an organisation established under the Fair Work Act in 2009. Their primary

functions encourage the prevention and settlement of industrial disputes between employers & employees through conciliation and arbitration

Federal court: government federal organisations where appeals about Fair Work can be placedMcDonald’s Case Study

o State Governments – Around Australia, state governments collect payroll tax and administer Workplace Health and

Safety (WHS) legislation through such agencies as SafeWork NSW.

o SafeWork NSW influences human resource management by mandating that all tasks McDonald’s employees carry out are performed it a safe manner.

o The NSW Government also partly funds McDonald's training. This funding amounted to $1.8 million in the 2016 financial year.

- Society Society is often ignored but most important stakeholder in the management process This is because businesses operate within society and the decisions they make impact on society People who own businesses and people who work in them make up most of society Decision making in the human resources process influences the availability of goods and services and

the prices they are sold at McDonald’s Case Studyo The way in which McDonald’s manages human resources is impacted by societal expectations. o As an example, society place a great value on high school education. o As a result, McDonald’s has a Responsible Student Employment Policy which restricts the hours school students are

allowed to work.

Legal

- The current legal framework Employment relationship is subject to considerable number of regulations and laws The government has established the legal framework by which employers and employees are

encourages to coexist cooperatively Social, political & economic forces have a considerable impact on employment relationship Social justice: in the workplace involves businesses being responsible & behaving in a fair and ethical

manner towards their employees, customers and the broader society Centralised industrial relations system: is a collectivist approach in which disputes are referred to

industrial tribunals e.g. Fair Work Commission for conciliation and arbitration Decentralised industrialised relations system: employers and employees negotiate wages and working

conditions in the individual workplace through collective/individual bargaining and without the involvement of tribunals

Productivity commission is the government’s independent research and advisory body in respect to a variety of economic, social & environmental issues affecting the welfare of Australians

Its feature is to help governments make more effective policies in the long term interest of the Australian community

McDonald’s Case Studyo Currently, all Australian employees of McDonald’s, whether at a company or a franchised store,fall under the McDonald’s

Australia Enterprise Agreement 2013.This enterprise agreement was negotiated between McDonald’s Australia and the Shop, Distributive & Allied Employees’ Association (SDA), which represented the workers. 97% of McDonald’s employees voted to accept the enterprise agreement. The agreement is one of the largest enterprise agreements in Australian labour history.

o With such a large workforce, & similar tasks, an enterprise agreement can be a quicker, easier and fairer method of industrial relations negotiation than individual contracts. Individual contracts can often be time-consuming to negotiate, difficult to administer and may potentially leave McDonald’s exposed to claims of using its size and strength against its workforce – predominately young people in their first job. A 2017 report in the Sydney Morning Herald claimed that some McDonald’s employees are worse off under the current enterprise agreement.

- The employment contract Employment contract: is a contract in the Australian workforce between an employer and their

employees Employment contract is based on the employee offering his/her services on a regular basis and being

subject to the lawful control and authority of the employer An employment contract creates rights & responsibilities for employers and employees e.g. safe

workplace, minimum wage and anti-discrimination Written contract is the best

Common law (rights & obligations of employers & employees) o Common law: is developed by courts and tribunals o Under common law employers and employees have basic obligations in any employment

relationship, regardless of nature of contract o Duty of care: is a business’ legal obligation to provide all its employees with a safe & healthy

workplace. Skills, knowledge and tools must be provided (includes warning employees of risks)o Duty to pay agreed wage: the legal obligation to pay the employee the correct, legal wage.

Employees in a contract must be paid the amount in the agreement o Duty to provide work: the responsibility of the employer to provide full-time and part-time staffo Employees must be given the opportunity to leave the business with financial compensationso Duty of employees: employees must offer their labour to a businesso Duty to obey lawful instructions & commands: the employees are expected to follow the

instructions of supervisors & senior management. These instructions must be lawful Minimum employment standards

o 10 national employment standards have been developedo these include:

1. maximum weekly hours of work2. requests for flexible working arrangements3. parental leave and related entitlements4. annual leave5. personal/ carers leave & compensation leave 6. community service leave7. long service leave public holidays8. notice of termination and redundancy pay9. provision of Fair Work Information Statement

Minimum wage rates o are an employee’s minimum rate of pay for hours worked o FWA is responsible for ensuring that employers & employees have to agree to pay on the

minimum or above rateo Minimum wages are determined yearly & different according to experience & qualifications

Awards o Are legal documents that outline the minimum wage & working conditions for all employees in

a particular industryo Established through negotiations b/w employers & associations o Under the Fair Work Act, parties to a wage agreement may apply to Fair Work Australia to have

an award changed

o Modern awards replace 2400 existing awardso Individual flexibility arrangements: allow an employer and employee to come to an agreement

that varies the modern award/enterprise agreement to address their individual circumstanceso Content in modern awards: base pay rate, overtime and penalty rates, allowances, leave &

loading, superannuation entitlements Enterprise Agreements

o Are collective agreements made at a workplace level b/w an employers and a group of employees about T& C’s of employment

o Collective agreements: are made b/w a group of employees (or one or more union representing employees) and an employer or group of employers

o Key features: pay rates, penalty rates, overtime, allowances, hours, leave o 3 types of enterprise agreements:

1. single enterprise agreement: single employer, group of employees2. multi-enterprise agreements: 2+ employers & groups of their employee. May occur if

they share common funding, operate collaboratively & have common regulatory system e.g. groups of hospitals

3. Greenfields agreements: single-enterprise & multi-enterprise relating to genuine new enterprise of the employers that are made before any employees to be covered by the agreement are employed

o BOOT (Better Off Overall Test): requires each of the employees to be covered by the agreement is better off overall then under the relevant modern award

Other employment contracts o Individual contracts: exist when an employer & an individual employee negotiate a contract

covering pay & conditionso Independent contractors: often known as consultants or freelancers, undertake work for others;

however, they don’t have the same legal status as an employee o Causal employees: employees employed by a business for short periods of time. They must do a

minimum of 1-3 shifts a week. Receive no holiday/sick leave entitlement. Employer can choose when they work

o Part-time: work >38 hours per week o Fixed term contracts: the use of labour for only a specific period of time. Bother parties must

agree to this time period

- Workplace health and safety & workers’ compensation Occupational Health & Safety Act 2000 NSW: establishes the rights & responsibilities of employers in

the workplace in regard to employers & employees Work Health and Safety (WHS) Act 2011: employers must ensure the health, safety & welfare at work

of all employees by providing a safe system at work Safe Work Australia has harmonised WHS laws which they have created a national system for WHS Workers compensation: provides a range of benefits to an employee suffering from an injury/disease

was caused by/related to their work Laws & regulation work injuries are done by WorkCover Workers Compensation Act 1987 (NSW): govern the process of employees gaining financial

compensation for injuries sustained at work Ensure the health, safety & welfare of employees by providing a safe system of work Take steps to ensure that people on-site who are not employers are not exposed to various risks from

work

McDonald’s Case Studyo The Standards of Business Conduct – The Promise of the Golden Arches outlines that McDonald's is committed to providing

a safe working environment. It mandates that accidents and unsafe practices must be reported promptlyo McDonald's Australia's main measurement of workplace injuries is known as the Lost Time Injury Frequency Rate (LTIFR),

whichis calculated as the number of hours lost to injury per 1 million hours worked. The latest available statistics show McDonald’s Australia has work to do in this area

o As a self-insurer in NSW, McDonald’s Australia is regularly audited by NSW WorkCover. The company has received

favourable results in these audits. McDonald’s Australia also makes some of its Work Health and Safety Policy available

publicly.

- Anti-discrimination and equal employment opportunity discrimination occurs when a policy/practice disadvantages a person/group of people because of a

personal characteristic that is irrelevant to the performance of the work equal employment opportunity (EEO): refers to equitable policies & practises in recruitment, selection,

training & promotion Anti-Discrimination laws include:o Sex discrimination Act 1984o Racial Discrimination Act 1975o Human Rights & Equal Opportunity Commission Act 1986o Disability Discrimination Act 1992

McDonald’s Case Studyo McDonald’s employs a Chief Diversity Officer who oversees worldwide efforts to make the business a diverse and fair

workplaceo McDonald's aims for a diverse workforce. o More than 70% of US employees are either women or from an ethnic minority.o In Australia, McDonald’s has a partnership with Job Centre Australia who run a program called “Golden Opportunities”. This

program aims to place job seekers with a disability into employment with McDonald’s. To date, over 600 such jobs have been filled.

o McDonald’s uses all of these avenues in its aim to maintain a diversified workforce free from discrimination.

Economic Labour is a derived demand from

the demand for goods and services Peaks in business cycle:

shortages of labour due to higher demand for g & s higher wages

Wage increase demand may lead to speculative π

Troughs in business cycle are downturns

Recession: decrease in demand for g & s U/E increases

Structural ∆: refers to a ∆ in the nature & pattern of production of g & s: within an economyo This increases a significant growth in the level of service in an economy compared to other sectors Businesses fuel production, price changes, employment & standard of living Level of economic activity determined by C + I Employment increases increased Consumption & Investment Impact of π: during periods of wage negotiations, employees seek higher wages increased cost of

productiono Rise in prices of g & s (π expectations)

Globalisation: is the integration of the world’s economies into a single market where g & s can be traded with ease

Causes increased competition & workers are retrenched when services are no longer needed increase U/E

Employees need to receive legal entitlements if retrenched

McDonald’s Case Studyo Human resource management at McDonald’s is greatly impacted by economic conditions. o “The numbers don’t lie,” said CEO Steve Easterbrook when he announced a major restructuring program at McDonald’s US

corporate headquarters in early 2015.o This included making redundant 135 employees from the United States and 90 employees based outside the US. o This restructure was expanded at the November 2015 investor meeting.

Technological Technology: seeks to improve the quality of products & efficiency with which they have been produced Its impact on labour has been both positive & negative Technology has caused nature of production & services to change, new jobs to be created Use of new communication methods

POSITIVE NEGATIVE More efficient production techniques Fosters teamwork whereby staff become

mentors to colleagues through learning technologies

Encourages employees to deliver product/service in new & improve way

Loss of employment Employee resistance to change as the

workforce becomes reluctant to the use of new technologies

Reduced employee morale as workforce feels less valued

McDonald’s Case Studyo all McDonald’s employees use Metime – an online platform that is used for such things as rostering, pay and training. Each

employee has a personal login to this system. This helps McDonald’s to maintain effective communication with employees. o Another example of the impact of technology is how tasks at the restaurant are carried out. McDonald’s has been rolling

out self-service kiosks and mobile ordering apps, which remove the need for the customer to interact directly with an employee to place an order.

Social Sociocultural shifts have drastically altered the typical workforce More multicultural workplaces & increase in women Many employees want to achieve balance between work and family

- changing work patterns Growth in casual & part-time work due to increased service industries Greater flexibility and job mobility in the workforce Casualisation of the workforce Women now account for greater proportion of Australian workforce and are in under-represented

positions of power Technological developments have facilitated the considerable decline in employment in Australia’s

manufacturing sector Fewer unskilled jobs available within the market Ageing workforce: growth in average age of population due to sustained low fertility and increasing life

expectancy Early retirement causing government to raise the working age

- Living standards Less educated people, who lack skills & qualifications may often be employed in industries with low

wage rates Many people are scared to challenge their employers for fear of losing their jobs Australia has high living standards This is due to W H & S, wages increases, performance bonuses, fringe benefits & super benefits

McDonald’s Case Studyo At its corporate headquarters, McDonald’s Australia tries to recognise and cater for individual staff needs. o For example, it has a work from home policy in place, allowing greater flexibility of when and how work is completed. o It also allows employees to start work earlier or finish later during Monday to Thursday to allow a 1pm finish on Fridays. o On top of this, it offers eighteen weeks paid parental leave for company employees, and for parents returning to work, it

offers discounted child care and designated breast-feeding rooms. Employees also have the option of gaining an additional four weeks leave per year by reducing their pay, giving them greater choice and flexibility.

Ethics & corporate social responsibility Ethical business practises: are those practises that are socially responsible, morally right, honourable

and fair Code of conduct: is a statement of acceptable & unacceptable behaviours in a business Code of ethics: statement of firms’ values & principles Best practice: refers to business practises that are regarded as the best or of the highest standard in

the industry CSR: is the continuing commitment by companies to behave ethically & to contribute economic

development while quality of life of the workforce & their families + community Stakeholders apart from shareholders: employees, employers, customers, suppliers, community

organisations & local communities Examples of CSR include:o Investing in community projects o Supporting research activitieso Adopting environmentally friendly products This enhances the reputation & standing of

the business & may be used to promote recruitment of staff for the business

Strategies to promote CSR within the workforce include:o Promote effective affirmative action &

anti-discrimination programso Encourage staff to volunteer their time

& participate in community building activities

o Develop initiative that reduce the business’s impact upon the environment

McDonald’s Case Studyo In Australia, McDonald’s employs approximately 70% of staff on a casual basis. Many of these are young people (85% of all

employees are aged between 14 and 18)working in their first job who are not part of a trade union.

o This creates a potential power imbalance, with managers having the upper hand. To prevent this, McDonald’s provide a number of confidential communication channels where employees can attempt to get issues resolved. As many of its employees are still completing secondary school, McDonald’s Australia also has a Responsible Student Employment Policy.

Processes of human resource management

Employment relations: the function that deals specifically with the relationships between the employers & employees of the business

Role of employment relations is to provide the business with the workforce that it requires

Also aim to find, attract, develop & motivate the people who can provide services the business needs

Human Resource Cycle: process of acquiring people with skills for the job & continued development of employees’ knowledge & capabilities o Cycle also involves providing incentive for

effective, reliable employees to remain motivated & stay with the business

o Has four stages: acquisition, development, maintenance & separation

- Acquisition Acquisition: is the process of attracting & recruiting the right staff for roles in a business Is the stage in the HR cycle that involves identifying staff needs, recruitment & selection In order to examine whether it has the appropriate staff to meet the firm’s needs, a business needs to:o Identify skills & number of employees required in the future o Analyse its existing workforce

Acquisition involves identifying:o Internal environment: particularly business’s goals & cultureo External environment: including economic conditions, competition, technology, legal, political and

social factors Recruitment: the goals of recruitment is to accumulate a pool of potential candidates for a jobo It is form this pool that the business must make its selectiono The business can fill a vacancy by recruiting applicant internally (from existing staff) or externally

(from outside the business) Existing staff could receive a promotion, resulting in other staff to improve their performance The business can advertise externally for job applicants through methods such as:o Outsourcing to private employment agencieso Interviews on university campuseso Trainee position may be offered to HSC students to complete cadetship courses

Job needs to be identified and analysed & job description (a written statement describing duties, tasks & responsibilities associated) needs to be created

Employee selection: involves gathering information about each applicant and using that information to choose the most appropriate applicant

Placement: involves locating the employee in a position that bets utilises the skill of the individual to meet the needs of the business

Identifying staff needs: if staff cannot cope with changes more employees are needed Selection: a screening process in staff acquisition o Information gathered about job applicants is reviewed and most appropriate applicant choseno Individual are assessed on their ability to interact with each othero This may involve: interviews, applications, written tests

QANTAS Case Study

ACQUISITION

o Sourced from external & internalo Costs are considerable for recruitment e.g. advertising – methods are evaluatedo Selection can include: personality tests, reference and background tests and physical examinations

- development Development: is the process of developing & improving the skills, abilities and knowledge of staff,

through induction, ongoing training & further professional development Businesses need to develop skills & capabilities of its staff to maintain competitive advantage Each business has different cultures and must adapt these development processes accordingly Induction: a procedure which introduces the new employee to the businesso allows them to become familiar with workings of the firmo new employees should feel they know where they fit in & where the business is headed; its goals

Training: encompasses all activities aimed at improving an employee’s present & further performance in the workforce. This falls into 2 categories

1. On-the-job training (traineeships & apprenticeships)2. Off-the-job training (TAFE & university courses)

Performance appraisals: a formal, assessment of how well a person is working, including strengths & weaknesses o Provides a basis for matters e.g. future training, pay rises, promotions & possible further

development Training & development increased motivation for employees, greater business flexibility & improved

use of technology & innovations Organised development: due to flatter hierarchical structure in the workforce as of recently, structures

which benefits shared & problem-solving work improve efficiency, effectiveness & response These strategies include:o Job enlargement: increasing breadth of tasks in one jobo Job rotation: involves moving staff from one task to another over a period of time in order to multi-

skill employeeso Job enrichment: involves increasing the responsibilities of a staff membero Job sharing: occurs when two people share the same job

QANTAS Case Study2. DEVELOPMENT

Spends $275 million a year on training and development Has objectives of:

Increased efficiency Improved quality of service Fewer accidents and damage to equipment

TRAINING -

Training methods include:

On the job techniques e.g. apprenticeships, demonstration, coaching, job rotation, mentoring Off the job techniques e.g. simulation, QANTAS College Online, day release at QANTAS’ Centre of Service Excellence

- Maintenance Maintenance: is the process of managing the needs of staff for health & safety, industrial relations &

legal responsibilities (compensation & benefits of all staff) Is maximised through encouraging staff to participate in decision making, giving employees control of

their lives E.g. involvement in teams, collective bargaining, workplace surveys & activities

Effective workplace relationships depend heavily on communication including:o Team meetingso Staff bulletins & newsletterso Staff seminarso Social functionso Suggestion boxeso Staff surveys

Strategies focus on building trust & direct communication b/w people Employee participation in the workforce has improve communication & empowered employees Maintenance of databases: it is important for maintaining the records of a business e.g. employee

informationo Skills inventory database that contains information on skills, expertise & qualifications of current

staffo A: able to access specific information when needed

Maintenance of HR staff: staff can be maintained through providing working conditions & work environment to motivate staff to be increasingly productive & gain satisfaction from their worko If staff remain loyal and stay business will have increased productivity, improved morale amongst

workers and decreased absenteeism employee benefits: are added perks given out by businesses which can be monetary/non-monetary remuneration packages: total pay/reduced to workers & managers for their labour services & may

include both monetary, non-monetary benefits & intrinsic satisfaction (personal satisfaction) monetary benefits may be:o according to sales e.g. real estate agent get commissiono based on individual output e.g. payment of piece rates for fruit pickingo bonuses – paid usually end of yearo through shares ownership scheme pay increases & incentive of workers ‘owning’ part of the

businesso fringe benefits e.g. company car

non-monetary benefits include:o greater job-varietyo flexible working hourso increased status in the job/communityo being allowed to manage yourself/access to an employee subsidised cafeteria

negotiated benefits may include:o 4 weeks leave + full pay after working one year in jobo Australian workers on awards are entitled to 17.5% loading on their annual leaveo 10 + years working long service leave (8 weeks’ pay)o employees are currently to have an additional 9% of their annual wage/salary paid into

superannuation fringe benefits tax: tax employers must pay on certain benefits they provide to their employees

QANTAS Case Study Has aimed at keeping pay increases to 3% per year Remuneration is systematic and based on job descriptions and performance appraisals Businesses consider value of benefits in terms of retention of staff and workplace culture – are expenses and can attract

employer paid fringe benefits tax (FBT) Flexible working conditions – attract and retain talented staff Can include:

Flexible working hours Flexible reward options Work from home arrangements e.g. rostered days off Family leave

Job sharing – popular with women returning to workforce FAMILY FRIENDLY PROGRAMS

Increasing paid maternity leave from 10-12 weeks Keep in touch programme for staff on maternity leave Building new child care facilities in Sydney, Melbourne and Brisbane

WORK- LIFE BALANCE - Qantas supports employees to manage work, family and personal commitments through a range of initiatives including

access to health and wellbeing programs, child care (Qantas has built three on-site The Joey Club day care centres in Brisbane, Melbourne and Sydney) and a free Employee Assistance Program counselling service.

REMUNERATION AND BENEFITS Around 95 per cent of Australia-based Qantas Group staff are covered by awards and various collective agreements.

Qantas works with 16 national unions to negotiate around 45 Enterprise Bargaining Agreements. The remuneration strategy for executive management is detailed in the Qantas Annual Report. Employees have access to a wide range of benefits including airline travel.

- separation separation: is the process of employees leaving voluntarily, or through dismissal or retrenchment

processes is the ending of employment relationship redundancy/retrenchment: refer to employees losing their jobs, where the employees; job or work no

longer need to be doneo it may be necessary due to a lack of work e.g. fall in demand for a product or service or position may

have been restructured/replaced by technology may come from either employee or employer (voluntary/involuntary) voluntary separation: may take one of the following forms:o retirement: when an employee retires they have decided to give up

full-time/part-time work people pay retire due to illness, lack of

motivation/desire to pursue leisure activitieso resignation: is when an employee leaves their job for reasons e.g.

need for change, moving locationo voluntary redundancy: is where the existing job is no longer

required by the firm & the employee may be offered a redundancy package

involuntary separation: is where management decides which employees will no longer be requiredo Employment Protection Act 1982 (NSW): provides a minimum

scale for severance payments for all permanent employees under NSW awards who work for an employees’ with more than its employees

Dismissal: occurs when the employer terminate am employment contract due to the unacceptable conduct/behaviour of the employeeo Can be instant/ summary dismissal or dismissal after series of warningso Instant/summary dismissal: the immediate termination of the employee’s contract without notice

(e.g. cases of theft, flouting a drug policy)o Dismissal after a series of warnings: follow incidents e.g. continual lateness/failing to perform duties

as required Unfair dismissal: occurs where an employee is dismissed by their employer & they believe the action is

harsh, unreasonable or unjust Fair Work Commission may provide these grounds for an unfair dismissal:o Employee was dismissed in a case which was deemed unjust/not genuine redundancyo Employees are able to claim unfair dismissal if:

Business has 15+ full-time employees (worked 6 months or more)

Process of dismissal have not been carried out correctly o Employer has right to objecto Businesses will be slandered by such claims

Workers may be classified as on probation/temporaryo probation workers are often hired & given a probationary period approx., 3-12 months to ‘prove’

themselveso temporary: those employed for short periods of time to replace an absent workero this could be for a day or several months

McDonald’s Case Studyo The nature of the fast-food industry, plus the fact that McDonald’s employees are often young people in their first job,

means that McDonald’s has a significantly higher staff turnover than many other companies. o McDonald's Australia reported that its staff turnover rate is 42% for crew and 20% for management In the UK, staff

turnover is 40%.o Some estimates put the average turnover rate in the hospitality industry at 70%.o McDonald’s Australia also conducts anonymous exit surveys of employees. These can help management ascertain why staff

are leaving and put in place strategies to prevent this.

Strategies in human resource management

Leadership style Leadership style: refers to ways that managers communicate with their employees to inspire and

motivate them to work together to achieve an organisation’s goals Leaders make decisions, develop strategies for the development of the business and interact with

employees Leadership style is based on providing staff with directions, implementing plans & motivating and

organising staff1. Authoritarian leadership

o Managers lead based on telling employees how and what to doo Employees cannot contribute to decision making processo Decisions must be made quicklyo Usually high task, low process jobso Focus on planning, controlling & monitoring o Works best for: In times of change and uncertainty, need for strong leadership and stability

2. Participative leadership (democratic/behavioural)o Involves the leader including one or more employees in decision making processo Employees are consulted about what to/how to do jobso Encourage employees to be empowered o Leading, motivating and communicating o Works best for: Skilled workforce, staff are needing to be motivated, encouraging staff to

become empowered3. Delegative leadership

o Leader allows employees to make decisionso Employees have relevant knowledge and skills to make decisionso Managers trust employees to make the right callo Works best for: Skilled workforce, has to be an element of trust, accountability amongst staff

for wrong decisions, motivates skilled staff to have greater involvement 4. Contingency approach

o Uses most appropriate approach depending situation and changes in circumstances

McDonald’s Case Studyo McDonald’s has more than 37,000 stores worldwide and operates using strict business guidelines, it

follows that the management of the corporation might somewhat autocratico Complaints have been made that corporate management decisions such as increasing store rent,

running promotions and changing menu items sometimes occur without proper consultation with franchisees.

o The very nature of a franchise implies that all staff must precisely follow detailed operational instructions that limit the scope for participative, democratic decision making.

o McDonald’s has a very structured hierarchy, starting with a crew member all the way up to store manager and consultant. This sets a defined chain of command through the local store, consistent with autocratic leadership. This leadership strategy allows for consistency and uniformity

Job design Job design: is the number, kind and variety of tasks that a worker is expected to carry out in the course

of performing their job Involves process of determining the type of tasks an employee needs to complete Effective job design should seek to meet needs of employer + employee Task must allow employee to work to achieving objectives Job satisfaction and enrichment must also be considered Job enrichment: the extent to which a business develops tasks with the abilities of existing staff in

mind. Job enrichment reduces boredom by giving employees more challenging tasks, responsibility, autonomy and decision making

Apple Case Studyo McDonald’s employees have specific skills built into their job design with little or no scope for changeo Task oriented job design is contemporary example of Taylor’s scientific job methodology in actiono A sheet of instructions and specific timeframe for a job is evidence of a task-oriented approach o Strategy allows for consistency, efficiency and uniformity

- General Recently job design has expanded to incorporate more general approach with greater variety of tasks Wider amount of tasks improve worker enlargement, satisfaction & productivity JOB ROTATION: employees move from one job to another

POSITIVE NEGATIVE Multiskilling of staff Flexibility Variety and challenge Better understanding of business Improved resolution of problems

( reduces work stress)

Loss of employment Employee resistance to change as the

workforce becomes reluctant to the use of new technologies

Reduced employee morale as workforce feels less valued

JOB ENLARGEMENT: employees are given additional tasks to increase the variety and challenge involved in a position

POSITIVE NEGATIVE Increased employee motivation Increased participation in decision

making Pathway to promotion

Work overload Problems if employees aren’t trained

properly

JOB ENRICHMENT: employees are given more challenging tasks, responsibility, autonomy & decision-making power

POSITIVE NEGATIVE

Employee satisfaction Pathway to promotion Higher retention rates Opportunity for greater rewards

May over extend employee Lead to burnout from too much work

SEMI-AUTONOMOUS WORK GROUPS: a multi-functional work groups of employees who take responsibility for a production process, or project, share and manage tasks to achieve targets without direct supervision

POSITIVE NEGATIVE Employee commitment Greater empowerment,

teamwork, team responsibilities Opportunities to multitask &

develop problem solving skills and decision making

There may be conflict within the group

- Specific tasks Best represented through scientific management which identifies there is a best way of doing a job &

that a workers’ skills should be matched to job requirements Based on specialisation, efficiency (low skills, cheap labour) Specialisation: involves jobs being broken down into specific skills Increased knowledge increased output decreased labour costs & errors Controls quality

Recruitment Recruitment: the process of locating & attracting right quantity & quality of staff to apply for

employment vacancies/ anticipated vacancies at the right cost

- Internal recruitment Occurs when the position is filled by existing employees within a business Can act as incentive for staff to improve performance Promotion may be seen as reward for effective work Staff who are overlooked for position may be demotivated May occur through intranet positing, promotion lists, word of mouth, email etc.) Staff referrals are popular

ADVANTAGES DISADVANTAGES Motivation for staff Employees know the culture,

operations productivity maintained

Cheaper than external recruitment

Builds commitment and loyalty

Can reinforce negative culture Cause rivalry for positions Unsuccessful internal applicant may feel

discouraged of unmotivated Little value added, no skills

- External recruitment Occurs when position is filled by individual who has not yet worked for the business Encourages new ideas as new employees may bring new solution May take time to settle in, potential resistance from existing staff Issues: time needed to replace staff, recruitment firms *

QANTAS Case Study Alan Joyce (CEO) was CEO of Jetstar before QANTAS – internal recruitment External – obtained through traditional methods such as: newspaper advertisements and recruitment agencies They need to be genuine, friendly and able to deal with any eventuality. Qantas believes that creating a diverse workforce will provide the best talent to deliver our strategy to be the world’s best

premium and low cost airline. Recruitment and selection is based on merit, and when making hiring decisions managers are encouraged to not only

comply with Equal Employment Opportunity and anti-discrimination requirements, but also to bolster a diverse workplace culture when selecting from the pool of qualified candidates. Qantas aims to make its recruitment process accessible to all candidates by advertising positions both broadly and in specific publications, using professional recruitment services where required and providing guidance on its recruitment processes

McDonald’s Case Studyo 51% of restaurant managers in store owned by the company started their careers as crew members

- General skills Includes flexibility, versatility, social confidence, positive attitude, motivation & ability to work as a

team and/or independently General ‘soft’ skills are critical in building a successful workforce (more service based skills) Important as many tasks today require individuals to work independently & undertake different tasks

- Specific skills Are highly specialised & are required for some jobs within science, technology & engineering sectors Many businesses recruit overseas/ outsource to overcome skills gaps in their business Employee poaching; practice of enticing employees to work for another business

Training and development Training: aims to develop skills, knowledge and attitudes that lead to superior work performance Development: refers to enhancing the skills of the employee in line with the changing & future needs of

the organisation Training may be informal or formal & allows employees with opportunity to acquire skills & experience

needed Informal training: when an employee is either shown or modelled the correct skills through a coach or

mentor of learning on the job Formal training when an employee takes on a role similar to students within the organisation and are

shown how to apply themselves to the new operations of a business then later assessed on their level of understanding

Induction: process of providing new employees with the knowledge and skills necessary to ensure they are familiar with the organisation day-to-day operations of the businesso Employees are given some history, company policies, work rules & a code of conducto Employees are notified of leave arrangements, starting/finishing times, dress codes, union

memberships & grievance handling procedures

ADVANTAGES DISADVANTAGES Wider applicant pool Dilutes internal politics More diversity in employment New ideas, perspectives and skills

better business solutions

Risk of unknown staff Risk of legal claims New employee may not fit culture, may

not be accepted by internal rivals Loss of productivity in initial stages of

induction phase

- Current skills Skills currently required from employees by business Length of training time to acquire these skills

- Future skills Predict the future requirements of the business and skill level needed by employees Training for future skills needed will mean business has competitive advantage against competitors The business is attempting to train it staff in the present with skills needed in the future

QANTAS Case Study Invests more than $275 million a year in training and development Training – done due to repaid technological change and need to keep up with global competition e.g. QANTAS’ pilots do in

total more than 48,000 hours of annual training Benefits of this include

o Enhanced productivityo Improved quality of outputso Enhanced ability to cope with change because employees have a variety of skills

all flight attendants undertake the latest service and safety training. New flight attendants receive up to six weeks initial training, as well as recurrent training, in security, medical and

emergency procedures. Qantas is a registered training facility, in accordance with Australian National Training Organisation standards, and has 90 certified course facilitators and designers delivering contemporary training through eLearning, workshops and coaching at work.

In December 2008, Qantas opened a Centre of Service Excellence in Sydney, which provides an enhanced training program for over 18,000 staff from across the business each year

The 5,000 square metre facility features customer experience zones dedicated to the airline’s international First, Business, Premium Economy, Economy, as well as Domestic and QantasLink offerings. The Centre also includes a 132-seat auditorium, a central stage with seating for 125 people, four cabin crew training pods, a Qantas Innovation Zone, sponsored by Panasonic and designed to capture employees’ ideas and initiatives for exceptional service, an intranet workstation area, a wine training and epicurean wing, learning and development rooms, and two image and presentation rooms.

QANTAS uses online learning to train its staff

Performance management Addresses both individual & business performance Successful performance will often translate into the business’s strategic objectives being met Is the process of recognising the efforts & contributions of employees to their work It is an ongoing process of communication between supervisors and employees 3 stages of performance management

1. Planning: focused on goals/expectations between ad employee and employer 2. Checking in: involves regularly observing employees performance3. Assessment: measuring employee’s performance against objectives

Benefits of performance management o Employee has improved understanding of role o Employee able to identify problems earliero Performance review and improvement allow employee to be aware of personal goals

- Developmental (improving skills) Improves individual performance through establishing objectives May include: reaching sales targets consistent with achieving organisation’s goals Discussing with the employee how to better do their job Discussing what skills and training initiatives are needed by an employee to better do their job

- Administrative Assesses the progress of the business in meeting its strategic goals and where necessary identifying

areas for its strategic goals and where necessary identifying areas for improvement

E.g. establishing new goals/ employee performance The efforts/achievements of employees How employees can be recognised/rewarded for their effort

McDonald’s Case Studyo UK: employees are subject to biannual performance reviews to assess their progress and set training and development

goals for the future.o Australia: McDonald’s corporate employees and restaurant managers undertake annual performance and salary reviews.o McDonald’s performance reviews allow a regular, formal opportunity to ensure that company goals and individual staff

goals are aligned. o At the store level, crew members are encouraged with “pins” (small badges) that they wear to signify achievement. o The company also rewards performance with awards such as “Crew Member of the Month”.

Rewards Rewards motivate employees to work to their potential & cooperate to achieve goals of the business Include: superannuation, sick/annual leave Remuneration: refers to both financial & non-financial benefits that employees receive in return for

their work effort

- Monetary rewards Additional money or payments given E.g. bonuses, commissions, overtime, insurance, superannuation, medical & healthcare

- Non-monetary Non-financial benefits associated with the job itself E.g. fringe benefits, challenges, safe environment, performance feedback & recognition)

- Individual/group If rewards are only individual cause conflict Group rewards have increased need for cooperation & difficult to distinguish performance of

individuals within teams Issues: not all employees apply same effort, employees may have different personal goals, conflict may

occur within group Gain sharing plans

- Performance pay Process of linking part of employee’s income to their performance at work Concept recognises that employee motivation comes from financial benefits May be performance, job or individually related A: performance improves as employees work more efficiently, encourages unmotivated individuals D: performance of employees may be difficult to measure for some jobs, some employees may seek

non-financial rewards

McDonald’s Case Studyo McDonald’s offers a range of rewards for staff membero E.g. discounted food & beverages (up to 50%), promotions, group & individual pay, awards and prizeso McDonald’s Australia rewards top performing employees with what is known as the "Macca’s Enjoyment Bonus” where top

employees are rewarded with the granting of wisheso Employees at McDonald’s corporate headquarters may be eligible for company cars, healthcare services, discounted child

care and fitness memberships

Global Globalisation has increased competition and complexity of Human resources More companies are entering international markets by exporting their products overseas Access to cheaper workforce that possesses the required skills will be a key consideration for a business Ability of labour to learn new skills will be affected by country’s education system Polycentric: using host country staffing with parent=country staff in corporate management at its HQ Geocentric: using staff with the most appropriate skillset for a particular role and location, building

pool of managers with experience Ethnocentric: using parent country staff in its organisation

- costs Increase availability to low cost labour economies Primarily in the manufacturing sector Able to reduce costs of production

- Skills Developing economies are fast improving their skill set, i.e. high expertise occupations It provides the business with an advantage of accessing highly skilled individuals at lower costs Also employing senior management from other countries to take advantage of the skills offered by

foreign management

- Supply Developing countries have greater access to large pools of labour As a result of this increased supply to a business volume of production can be increased

QANTAS Case Study Tries to hire host country staff instead of transferring domestic staff to work in senior management positions overseas

o Host country staff understand local laws & cultureo Avoids relocation expenseso Host country staff need to be retrained to become familiar with QANTAS business

If suitable staff cannot be found, ethnocentric approach will be used ( parent staff used) Provides good working conditions which help prevent shortage of skilled labour

Workplace disputes Conflicting interest of employees

& employers can cause dispute Industrial dispute is a

disagreement over an issue or group of issues between an employer and its employees which result in employees ceasing work

Strike: situations in which workers withdraw their labour

Major causes of disputes: o remuneration: wages, allowances, entitlements and superannuation.o employment conditions: working hours, leave, benefits and other general employment conditions.o job security issues: retrenchment of employees, downsizing, restructuring, use of contractors,

outsourcing, re-classification of the workforce, and other industry-related matters o health and safety : physical working conditions, including safety matters, and workers’

compensation provisions, protective clothing and equipment, uncomfortable working conditions, employee amenities, equipment condition, and overly strenuous physical tasks.

o managerial policy: decisions and policies of line managers, such as disciplinary matters, suspensions, discrimination, decisions that impact upon work and family issues, production limits or quotas, principles of promotion, and other work practices.

o union issueso political or social protests

Types of Industrial Actiono Lockout – when employers close entrance to a workplace, action taken by an employero Strike – when an employee withdraws their labour, they cease to work in protesto Pickets – protests taking place outside the workplace

- negotiation is the first stage in the resolution of a dispute involves discussion between both parties in an attempt to resolve the dispute

- mediation occurs where independent parties with no ties to either stakeholder is asked to assist the conflicting

stakeholders to reach a settlement

- grievance procedures the rules and procedures that employees, unions & employers must follow in order to resolve a dispute may include:o provide clear outline of issueso illustrates correct and appropriate processes when raising a complainto provides a mechanism that can be used to achieve a quick resolution of disputes

- involvement of courts and tribunals conciliation: when Fair Work Commission acts as a mediator and offers suggestions in a dispute to

resolve the problem o both parties must make reasonable attempt to reach a settlement, however conditions are not

legally binding arbitration: final stage of the dispute o involves commissioner hearing cases put forward by both parties in an industrial dispute and then

making a decision which is legally binding

McDonald’s Case Studyo McDonald’s has clear employee grievance procedures set out in the Standards of Business Conduct – The Promise of the

Golden Arches booklet. o Employees can discuss issues with direct supervisors (or other managers) or the employee can directly contact the Global

Compliance Office and report an issue which may sometimes lead to mediation.o In Australia, McDonald’s has a Workplace Relations Team which takes calls directly from employees who have unresolved

issues from 8am to 6pm for employees enquiries and complaintso McDonald’s also involves trade unions and other legal institutions when necessary to negotiate employee pay and

conditions. As an example, the current award for McDonald’s Australia employees was negotiated between McDonald’s and the SDA and was checked and approved by FWC.

o Under the compliance partnership between McDonald's and the Fair Work Ombudsman (FWO), a report is issued about the number of McDonald's staff that request assistance from FWO. The total requests received compared to the total number of employees is around 0.03%.

o Given that a large majority of the McDonald’s workforce is comprised of young people, the FWO considers this to be an exceptionally positive outcome

Effectiveness of human resource management

Indicators are performance measures that are used to evaluate organisation/individual effectiveness effective HR management is one where management and employees work well together in efforts to

achieve goals of business Indicators are collated in human resource audits- diagnostic tools used to evaluate HR policies and

practices in order to identify problems and develop solutions Can be compared to best practice businesses or internal divisions to determine strengths and

weaknesses as well as create basis for improvement- benchmarking results must be communicated and acted upon by improvement plans

- corporate culture the culture within an organisation relates to values and beliefs within a business effective corporate culture is one that is believed, demonstrated and acted upon by management and

employees people are most important business asset building good corporate culture Indicators of poor corporate culture are high staff turnover, poor customer service, absenteeism,

accidents Better work and employment relationships

begin with an understanding of how to develop a positive corporate culture- values ideas, expectations and beliefs

Successful businesses maintain balance between concern for success and regard for employees

Apple Case Studyo Apple’s culture has been shapes by innovation, its leaders & peer pressure among employees are the contributor to the

final product the customer seeso Apple doesn’t rely on posters or motivation slogans instead every communication process, product launch to make it clear

that innovative is the heart of Apple’s successo Innovative has driven Apple’s past & current success and will continue to drive future success

- benchmarking key variables process of measuring an employee’s performance against established standards if employees are unable to meet performance goals on a regular basis management need to reconsider informal benching marking: includes strategies such as networking, informal discussions with

colleagues, visits at other businesses, researching best practise & attending conferences performance benchmarking: involves comparing performance levels of a process/ activity with other

businesses best practise benchmarking: comparing performance levels with those of another best practise

business in specific areas using a structured process to gain skills & knowledge to modify organisational process

balance scorecard benchmarking: used for whether activities of business are meeting objectives business may also use audits, quantitative measure & qualitative evaluation

- changes in staff turnover staff turnover is the rate at which employees leave a business high turnover caused by voluntary separation is indicative of poor employment relations within a

business average in Australia is 12-15% Important to benchmark turnover against those of other businesses in same industry to determine type

of staff leaving and reasons Staff may leave to seek new opportunities, promotion, whilst others may leave due to toxic workplace High turnover is expensive as there are costs involved with payout for entitlements, hiring, inducting

and training new staffApple Case Studyo Apple turnover is 2.5 years as Apple retail stores have become increasingly busy, turnover rates have increased tooo Internal surveys at store show high dissatisfaction levels, especially amongst ‘geniuses’ o Apple claims: annual retention rate for Geniuses is almost 90%

- absenteeism refers to a worker who neglects to turn up for work when they are scheduled to do so employees being unable to attend work for reasons e.g. illness/ family responsibilities is costly as employee’s work is not done places additional demand on existing staff and hostility Revenue lost as work is disrupted and business needs to have higher staffing levels to

cope Measured as the average rate of employee absenteeism on an average day, without sick

leave or leave approved in advance

- accidents all work places across Australia must be aware of potential hazards less accidents better & safe working environment 5.3% of Australian workers experience work related injury or illness each year and young males in

physical work are most likely• $60 billion cost per year in direct and indirect costs• Direct- medical bills, compensation, insurance• Indirect- wages and time lost, production delays• Systematic, legally compliant approach to managing OHS necessary

• OHS indicators are benchmarked by:• Lost Time Injury Frequency Rates (number of lost time injuries x 1000000/total hour worked in

accounting period)• Best practice businesses have regular safety audits, comprehensive safety programs, build culture of

safety and provide careful induction and ongoing trainingApple Case Studyo Apple’s outsourcing partners have been criticised for unsafe working conditions & high rates of accidents occurring in their

factorieso Employees assembling iPhones, iPads and other Apple devices work excessive overtime, 7 seven days and live in crowded

dorms o 2 years ago 137 workers at an Apple supplier in East China were injured after they were ordered to use a poisonous

chemical to clean iPhone screens o Seven months later two explosions occurred at iPad factories, killing four people and injuring 77

- levels of disputation more disputes less effective HR managing employment relations employers would need to examine why disputes are occurring and rectify practises that cause disputes Various overt and covert manifestations of disputes that employers need to monitor and evaluate• Overt (open dispute): pickets, strikes, lockouts, dismissals• Covert (closed dispute): absenteeism, labour turnover rates, sabotage and discrimination Indicators of industrial disputation Work bans- ban or boycott, refusal to work overtime, handle a product, piece of equipment• Work-to-rule- refuse to perform any additional duties• Go slow- work slower rate than normal• Sabotage- vandalism, cyber-attacks, theft• Grievance reports indicators of poor quality relationships in workplace• Determine whether issues relate to policies and processes operating within the business or to specific

individuals who require further training• Making of awards and agreements and managerial policy are main causes of disputes• Most common in large businesses where relationships and communication is more impersonal

Apple Case StudyRecent disputes involving Apple, and specifically the manufacturer of their products Foxconn include:

October 2013: dispute between assembly line workers & quality control managers due to iPhone 5 casing being scratched in production which workers disputed due to lack of training & abuse by managers 3000+ factory workers going on strike

April 2012: 200 company employees threatened suicide at a Foxconn facility, threatening to jump off the factory roof due as a threat over wages and working conditions at the plant

- worker satisfaction refers to whether employees are happy and content in fulfilling their desires and needs at work satisfied employees often work more efficiently and value their organisation Key factor in employee commitment, job performance and staff turnover Surveys useful in helping employers measure and understand how staff feel about work, management

and culture of organisation Used to improve management style and processes, benefits and reward systems Feedback confidential and analysed by professionals qualified to interpret such feedback Satisfaction mainly comes from good relationships with co-workers and enjoying work activities,

receiving relevant training

Family-friendly culture, adequate breaks, rewards for effort Holistic approach to employees which values and cares for them- this is most effective in building

commitment, satisfaction and retaining effective employees

McDonald’s Case Study 83% of McDonald‘s restaurant managers in its top markets globally think it is a great place to work 75% of managers feel favourable about the training they receive on the job In 2014, McDonald’s was ranked 7th in North America and 11th globally in the AON Hewitt Top Companies for Leaders

report In2013,89% of crew members were satisfied that they receive the training needed to do a good job In 2013, 87% of managers felt that the person they reported to supported their professional development In 2016, McDonald's UK was ranked 2nd by the "Great Place to Work® Institute" in the Best Workplaces list (for large

organisations) McDonald’s UK has indicated that “the average length of time a crew member stays with us has increased from 18 moths to

2/2.5 years” Lower staff turnover usually indicated happier, content workforce