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HUMAN RESOURCE MANAGEMENT Introduction

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HUMAN RESOURCE MANAGEMENT. Introduction. The Role of the Human Resource Manager. * Translate business strategy into action. * Develop and implement human resource strategies consistent with overall LSO strategies . * Create policies linking strategic and operational planning. - PowerPoint PPT Presentation

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Page 1: HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Introduction

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The Role of the Human Resource Manager* Translate business strategy into action

* Develop and implement human resource strategies consistent with overall LSO strategies * Create policies linking strategic and operational planning

* Improve customer service through recruitment, selection, training and development, motivation and rewards

* Manage strategies related to appraisal, skill development, flexible work practices and remuneration equity

* Plan for labour needs, succession planning and supply of labour* Manage the employment cycle

* Employee advocate in negotiations with management

* Act as a change agent* Support supervisors

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Mission Stateme

nt

HRM Objectives

LSO Objectives

Internal pressure

s

External pressure

sHR

Outcomes (PIs) HR

Activities

HR Strategies

Relationship of HR to business objectives and strategies

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Measuring HR effectiveness

All HR objectives must be evaluated against their contribution to the achievement of an LSO’s strategic objectives. The must:

* Be measurable

* Include deadlines for accomplishment

* Identify and involve key stakeholders and HR customers to ensure collaboration

* Nominate individual/parties responsible for implementation

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Measuring HR effectivenessThe following outcomes should be considered when evaluating HR strategies and policies:

* Commitment

* Competence

* Cost effectiveness

* Congruence

* Adaptability

* Performance

* Job satisfaction

* Employee motivation

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HUMAN RESOURCE MANAGEMENT

Expectations &

Motivation

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In order to get the most out of their employees, a HRM needs to know what motivates the workers.

To achieve this, the HRM must ensure:

* Jobs are correctly designed

* A system of rewards is in place

* An appropriate management style is being used

* A positive corporate culture exists

* The organisational structure allows for employees to work at their optimum level

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To assist employers motivate employees it is important to understand what employees expect from their employer:

To be paid a fair wage To finish work on time

To be given assistance when necessaryTo work within a professional environment

That they will receive assistance to upgrade their skills

That they will have the opportunity for promotion

To be given leave for illness, maternity and family carer duties

That they will have interesting and challenging work to do

To be able to arrange flexible working conditions, e.g. Hours, job share, part-time, RDOs

That they will be given the opportunity to improve themselves and upgrade their skills

That no one will interfere or make it difficult for them to complete their work

To gain satisfaction from the work they do

To receive positive feedback

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To assist the organisation meet it’s objectives it is important for employees to understand what employers expect from their employees:

To have employees complete their workThat the employee has some job satisfaction

To achieve the organisational objectives in a satisfactory manner

That employees act in a professional manner

That customers are given good customer service

That employees arrive on time and leave at the scheduled time

That employees do not deliberately sabotage the business

That employees have a commitment to the workplace

That employees like what they are doing That employees work in a cooperative and productive manner

That employees are courteous and respectful

That employees are skilled and willing to be trained

To have work completed on time

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MOTIVATION IN THEORY

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KEY TERMS

Motivation - refers to a decision making process where the individual chooses desired outcomes and sets in motion behaviours to achieve them.

Motives - are learned influences on behaviour that lead us to pursue particular goals because we value them

Motivation can be thought of as the degree to which an individual wants and chooses to engage in certain behaviour/s

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WHY SHOULD LSOS BOTHER WITH MOTIVATION?

Higher productivity (output per worker per period of time)

Better quality work with less waste A greater sense of urgency (desire to get the job jone) Make more feedback and suggestions for improvement Desire more feedback from superiors for improvement Work at 80-95% of their ability

Motivated workers have:

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HIERARCHY OF NEEDS - MASLOW

Need for food & shelter

Need for physical and emotional security

Need for relationships and belonging

Need for independence & recognition

Need for fulfillment of personal potential

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MASLOW - HOW DOES IT WORK?A person will start at the bottom of the hierarchy and will initially seek to satisfy basic needs. Once satisfied, they are no longer a motivation. The individual moves up to the next level. Therefore employers must be able to satisfy all needs to maximise productivity through motivation.

Physiological needs at work (e.g. satisfactory pay conditions for survival)

Safety and security needs at work (e.g. physical safety such as protective clothing and job security such as protection against unemployment and long-term/sickness)

Social needs at work (e.g. teamwork, participation in decision-making, supportive management)

Esteem needs at work (e.g. responsibility, autonomy, recognition and promotion)

Self-actualisation at work (e.g. jobs that are challenging, stimulating and require creativity, opportunities for advancement)

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TWO FACTOR THEORY-HERZBERGBackground: Herzberg analysed the job attitudes of 200 accountants and engineers who were

asked to recall when they had felt positive or negative at work and their reasons. Herzberg suggested a two-step approach to understanding employee motivation

and satisfaction

Dissatisfaction and Demotivation

Employees no longer dissatisfied,

but not yet motivated

Positive satisfactionand motivation

1 2

HygieneFactors

Motivator Factors

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HYGIENE FACTORS - HERZBERG

Hygiene factors -based on the need to avoid unpleasantness

If inadequate, they cause dissatisfaction with work Hygiene factors include:

Company policy and administration Salary and other remuneration Quality of supervision Interpersonal relations Working conditions Job security

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MOTIVATOR FACTORS - HERZBERG

Motivator factors are based on an individual’s needs for personal growth Motivator factors actively create job satisfaction If effective, these factors motivate an individual to achieve above-average

performance and effort Motivator factors include:

Status (This might be a hygiene factor to some people) Advancement Gaining recognition Responsibility Challenging/stimulating work Achievement Personal growth in the job

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IMPLICATIONS -HERZBERG How should Herzberg’s two-factor theory be applied to demotivated workers? What might the evidence of poor motivation be?

• Low productivity• Poor production quality• Strikes/industrial disputes• Complaints about pay and conditions

•According to Herzberg, management should focus on re-arranging work so that motivator factors could take effect. He suggested three ways in which this could be done:

• Job enlargement• Job rotation• Job enrichment

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Job Design

How a job is designed can influence motivation. There are 3 components to job design that can improve motivation:

Job Enlargement Job Enrichment Job Rotation

Widening the job scope so it is more challenging by combining various operations at a similar level

Involves making a job more challenging by requiring the job holder to use their full capabilities and gain personal growth to perform their job

Workers are moved between different jobs to increase their variety of work and to create a flexible workforce

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LOCKE’S GOAL-SETTING THEORY Locke found that employees were motivated by two key

factors – goals and feedback Clear goals provide employees with something to achieve

while feedback helps an employee to achieve a goal When goals and feedback work together, employee results

(performance) improve

Clear Goals Appropriate Motivation

Improved Performance

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LOCKE’S GOAL SETTING THEORY Locke’s theory shows that there is a clear

relationship between; the task (goal) set the difficulty of the task, and the ability of the employee to achieve the

task Locke found that hard goals that were very

specific provided greater motivation than vague or easy goals

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LOCKE’S 5 CHARACTERISTICS TO SUCCESSFUL GOAL SETTING (SMART)1. Clarity (S, M & T)- clear goals are measureable, unambiguous and behavioural2. Challenge (R)- people are often motivated by achievement- if it will be well received, there’s a natural motivation to do good

job3. Commitment (A & R)- goals must be understood and agreed upon- employees will more likely support goals they have taken part in

developing4. Task complexity (A)- mgmt must incorporate measures into the goal expectations to

ensure workers don’t become overwhelmed, i.e. sufficient time5. Feedback (M)- clarify expectations, adjust goal difficulty and gain recognition- Mgmt should provide benchmarks or targets

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Flexibility in work practices

The ability to create a flexible work environment can motivate employees.A flexible work environment recognises individual differences between employees.

Creating an environment that treats employees ‘holistically’ – the whole personInvolves practices such as:•Job sharing•Family leave•Flexible work hours (“Flextime”)•Part-time work•Work-Family balance

Strategies

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RewardsFINANCIAL NON-FINANCIAL

Wages/Salary – based on hourly rate, productivity

Promotion, Team leader, opportunity to work on special projects

Commission Career development, study leave

Flexible salary package Staff recognition, awards and praise

Superannuation Expense accounts (outside salary)

Performance-related pay OfficeEmployee share purchase plans Job title – status

Recognition

Profit sharingAllowances for travel, clothing, meals and accommodation

Fringe benefitsTravel, entertainment vouchers

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THE EMPLOYMENT CYCLE

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1. Establishment Phase

HR PlanningJob analysisRecruitment

Selection

3. Termination Phase

Voluntary/InvoluntaryEntitlements

OutplacementTransition

2. Maintenance Phase

Working arrangementsCompensation

InductionTraining

Performance

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HR Planning• Adequate

supply of labour

• Changing needs of employees

• Global economy

• Future needs

Job analysis• Job

description

• Job specifications

Recruitment• Sources• Methods

Selection• Applicati

ons• Screenin

g• Interview

s• Testing• Referenc

e checks• Outcome

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Employment arrangements• Type• Agreeme

nt• Remuner

ation

Induction• Formal• Ongoing• Mentor

Training and development• Short

term• Multi-

skilling• Long-

term• Career

progression

Performance management• Appraisal• Outcomes

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Termination

Voluntary

Resignation Retirement

Involuntary

Retrenchment Dismissal

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MANAGEMENT & EMPLOYEE RELATIONS

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Employee or Workplace or industrial relations is a system involving employees and employers. It is a key area of responsibility of the human resource manager. It examines the relationship in the work place. It is now known as workplace relations. In Australia state and federal governments regulate the Australian system of workplace relations.The aim of workplace relations is to achieve an optimum working relationship between employees of an organisation and management.

What is a good employee relations policy?

1. Empowerment of workers.2. Teamwork.3. Common aims or goals between management and the work force.4. Good people skills to resolve conflicts.5. Provision of pleasant working conditions.6. Provision for a diverse work force.7. Good relations between unions and management.

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Centralised v Decentralised System: Centralised Decentralised

Disputes solved externally Disputes solved internally

Wages and conditions set by FPC/AIRC

Wages and conditions determined by employer and employee

Agreements called Awards Agreements called EBAs or AWAs

Employees interests represented by Trade Unions

More employee input

Decision legally binding Decision legally binding

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THE MANAGEMENT OF CHANGE

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WHAT IS CHANGE?

Any planned or unplanned(forced or unforced) alteration to processes and procedures as a result of pressures form the external or internal environment

TYPES OF CHANGETRANSFORMATIONALMajor changeINCREMENTALMinor changeSTRUCTURALChange to the formal arrangements for achieving organisational objectives and includes changes to processes and procedures, lines of communication and organisational charts

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PRESSURES FOR CHANGE

LSOs operate in an open system and are affected by a range of pressures from the external and internal environmentsLSOs must adapt to change in order to maintain the competitive edgeEXTERNAL PRESSURESPressures from OUTSIDE the organisation (the broad environment in which it operates)Includes those pressure the organisation has NO CONTROL over but affects it directly:Changing nature of markets eg globalisationTechnological advances eg roboticsGovernment policy eg privatisation, deregulationLegislation eg workchoices, OHSEconomic eg level of economic activity

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INTERNAL PRESSURESPressures from INSIDE the organisation Includes those pressure the organisation has DIRECT CONTROL over

Use of technologyEmployees

CultureCost of production

PolicyStructures

E commerceAlliances

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Possible effects of change on large-scale organisations.

There are numerous targets for change, these include the following:

1) Plant and equipment.2) Management structure.3) Management styles.4) Corporate culture.5) Recruitment and training.6) Tasks.7) Planning changing roles.8) Objectives.

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CHANGE MODEL (KOTTERS)

Create urgency

Form a powerful coalition

Create a vision for change

Communicate the vision

Remove obstacles

Create short-term wins

Build on the change

Anchor the changes in corporate culture

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Methods on how to overcome resistance to change include:

Honesty

Communication

Participation

Negotiation

Retraining

Threats are not a good approach nor is manipulation.

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Forces affecting change

Driving Restraining

Tactics for dealing with changeHigh Risk Low Risk

Stances when dealing with changeProactive Reactive

Forces that initiate, foster, support and encourage the change.

Forces that work against the change.

Tactics that must be applied correctly or else failure results

Steady, incremental approach to change.

See the change coming and be ready to implement.

Wait until change has impacted before initiating implementation.

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EXAMPLES OF RESISTANCE TO CHANGEEmployees Fears and attitudes to change due to lack of understanding, knowledge, skills ( generally as a result of poor communication) and create problems of job insecurity, lack of motivation and job satisfactionFinancial cost of implementationCost of new equipment, cost of redundancy packages, cost of training and/or retraining and the cost of new plant layoutInertia of management Attitude of management and lack of commitment to change ( not proactive)

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MANAGEMENT ROLES (POLC)PLANNINGProcesses involved in developing vision, mission objectives to be achieved through the change, and developing the strategies to implement the change, may include strategies for breaking down resistanceORGANISINGProcess of putting the plan into action by allocating resources, delegating tasks, setting up appropriate structures to facilitate the changeLEADINGProcess of influencing employees to achieve the organisational objectives(the change) by modelling and setting an example, by proving guidance and direction, motivating and supporting employees with the change.CONTROLLINGProcess of monitoring, evaluating and taking corrective action when needed. This would include measuring performance in implementing the change against PIs and developing new strategies when required.

CHANGE INVOLVES ALL ASPECTS OF MANAGEMENT

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MANAGEMENT SKILLSCommunicationProblem SolvingDecision Making

Time ManagementDelegating

Emotional IntelligenceStress ManagementStrategic Thinking

Vision and Goal Setting

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CORPORATE CULTURE & CHANGEShared values an beliefs held by employees in the organisation andRituals within the organisation

Significant to change management as it determines success

Positive culture v Negative cultureLearning focus, technological focus, supportive, flexibility

and adaptability, communication and appropriate management style

VConservative, fear of technology, ineffective

communication and management style, conflict

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CHANGE STRATEGIESTraining Communicate vision, reason for and benefits of change. Must be two way with the provision for feedback. Establish a process for (committee ) for employees to air any concernsRedundancy packages for downsizingChange agent to model and promote the changeProvide support for staff and build trustReasonable time frameAppropriate management style

PIs Will depend on the change that is implementedProductivity, employee satisfaction and acceptance, customer satisfaction, profitability

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CHANGE ISSUESTechnologyPrivatisationAcquisitions and mergersOutsourcing/ off shoringEnvironmentEthics and social responsibilityGlobalisation

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From ‘The Age’ – information on extended response question

Clarification from the VCAA:There will be a 10 mark question that is drawn from Unit 4, Area of study 2. It will be based on the management of change but can draw in elements from Unit 3 and 4.

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Ethical & Social ResponsibilityAn underlying theme of the course is ethical and social responsibility . Although it is also a change issue, all students are expected to understand this concept. E&SR is the role an organisation plays in the community. The public expect all organisations to be involved in and contribute to society beyond their role as a business.

ADVANTAGES & BENEFITS OF E&SR DISADVANTAGES & COSTS OF E&SR

1. it provides organisations with a way to enhance its reputation

1. E&SR may be expensive in terms of costs and expenses not directly related to its core business.

2. free publicity may be gained 2. Time & resources are spent

3. employees enjoy working and contributing to the community

3. Sometimes the organisation may have to make choices between a number of worthy causes

4. shareholders are more likely to invest in an organisation with a sound E&SR program.

5. The organisation may become an ‘employer of choice’ and thus attracts the best employees.

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LEVEL OF MANAGEMENT

HRM OPERATIONS MANAGEMENT

POLC

STRATEGIC (TOP)

Manpower planning for an expansion of the organisation.

MIDDLE MANAGEMENT

Planning i.e. for the introduction of a department restructure over the nest 12 months.

FRONT LINE MANAGEMENT

Staff rosters & holidays

Production schedule for the next month.

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CASE STUDY

PRESSURES PERFORMANCE INDICATORS

OPERATIONS MANAGEMENT

HRM MANAGING CHANGE

BHP Billiton

Competition Profit Planned take over of WMC

Mitsubishi CompetitionEfficiency

Market share Re badging & restructuring of the design process.

Telstra CompetitionTechnologyPrivatisation?

New CEO & changes in staffing.

Move to privatization.

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EXAMINATION PREPARATION & PAST QUESTIONS

www.vcaa.vic.edu.au

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UNIT 3 2009 2008 2007 2006 2005

Area of Study 1

12 marks

10 marks

7 marks

14 marks

15 marks

Area of Study 2

14 mark

s

16 marks

14 marks

18 marks

12 marks

Area of Study 3

14 mark

s

6 marks

8 marks

10 marks

12 marks

UNIT 4 2009 2008 2007 2006 2005

Area of Study 1

12 marks

12 marks

13 marks

9 marks

7 marks

Area of Study 2

10 marks

16 marks

16 marks

10 marks

15 marks

Breakdown of marks by Area of Study for the past 4 Exams

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Past Examination Questions & Response Guide2008Question 1Australian Mineral Resources (AMR) and Jerrilderi Mining have been negotiating a merger with the aim of achieving economies of scale. The Chief Executive Officers (CEOs) of the two mining companies have been in discussion over the past three months.The focus of these discussions has been• the potential problems of merging two well-established companies with different cultures• the possible structure of the new entity• the content of a joint mission statement• the adoption of a single planning process at the three levels.1a. Define mission statement.

Marks 0 1 Average

% 16 84 0.9

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Key points to note:No half marks Must be ‘spot on’ with your definition1 mark questions are often discriminators – distinguish between 50/60 and 55/60 papers‘Correct’ answer:The mission statement sets out the reasons why the organisation exists and describes the purpose of the organisation.

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b. i. Define organisational structure.

Marks 0 1 Average% 49 51 0.5

Key point to note:Students should ensure that they do not use the same words that are in the question. For example, when asked to define organisational structure, responding with ‘is the structure of the organisation’ will not score any marks.

‘Correct’ answer:Organisational structure describes the way that an organisation chooses to divide the labour and coordinate the activities of individuals and groups within the organisation.

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b. ii. Describe the key features of a matrix organisational structure.

Marks 0 1 2 Average

% 54 26 20 0.7

Key points to note:Question is worth 2 marks so at least 2 features should be mentionedDescribe is the action word so don’t listA matrix structure exists when an employee is a part of a specific group or team, but remains part of a functional area. Its key features are hence effective communication both upwards and downwards in their functional area (eg. Human resources) and across in their team. Employees are hence accountable to both a team leader and a functional manager. Skills are pooled across the organisation and it is characterised by synergy within the organisation and flexibility.

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c. Identify and describe the three levels of planning.Marks 0 1 2 3 4 Average

% 36 7 12 21 24 1.9

Key points to note:In some text books the three levels of planning are identified (in order) as strategic, operational and frontline – the definitions remain the same.Students who did not score full marks for this question either did not include the level of management involved or did not specify a timeframe for the level of planning.The three levels of planning are strategic, tactical and operational types of planning.The strategic level of planning is typically conducted by senior managers and refers to the development of long term goals andstrategies, which generally take over a 3 – 5 year timeframe. A strategic plan for Safeway supermarket could include expanding the market share by 5% over a 3 year period.

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The second level of planning is tactical planning. This is generally conducted by middle management in order to createobjectives and plans for a 1- 2 year period. Tactical planning usually refers to the goals of each department rather than theoverall organisation. A tactical plan for Safeway could include deciding to renovate a store of stock a new food product.The third type of planning is operational planning, which is undertaken generally by frontline managers. Operational planning is for short-term goals to achieve on a daily or monthly basis. Operational planning for an organisation such as Safeway can entail setting daily targets for staff.

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1d. Discuss two indicators of corporate culture the organisations would have considered.

Marks 0 1 2 3 4 Average% 35 17 20 12 16 1.6

Marking:Identification of 2 indicators with appropriate discussion would gain 4 marksIdentification of 2 indicators with appropriate discussion of 1 indicator – 3 marksIdentification and discussion of 1 or identification and limited discussion of 2 indicators would receive 2 marksIdentification of 2 indicators and no discussion 1 mark

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Examples include:•Prevailing management style•Relations among staff•Style of dress and language•Budgets and other statements of priorities•Rituals•Symbols•Task or people orientation•Attitudes of staff to management and vice versa

Example:Rituals – these express and reinforce the key values and can include recognition and award ceremonies, weekly social gatherings, uniforms or ID badges and how new staff are introduced.

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1e. Explain how leadership is essential in effective change management.

Marks 0 1 2 Average

% 22 50 28 1.1

What 2 things are we looking for to get 2 marks for this question?1. Definition of leadership2. Leadership and change management linkLeadership is the process of influencing staff to achieve LSO goals. It involves activities/skills such as communication, negotiation and motivation. (1 mark)

Leadership, with its emphasis on communication, employee engagement and the ability to facilitate work relationships is essential for successful change to occur and organisational goals to be achieved. If leaders don’t possess these skills, employee resistance may develop, leading to a decline in morale. (1 mark)

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1f. Outline and discuss a change management theory. Where relevant, refer to the current situation at AMR and Jerrilderi Mining.

Marks 0 1 2 3 4 5 6 Average% 26 5 9 12 17 16 15 3.0

Kotter – 8 steps, but if you can remember them less detail is needed.

MUST relate theory to case study

Question 1 In total worth 20 marksTopics covered includeStructure, Mission, Culture (U3 AoS2)Planning (U3 AoS1)Leadership and change management theory (U4 AoS2)Questions cover a variety of sections from the course. Must be able to link different topics into one question.

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Question 2Country Foods is a food processing company with plants in Bendigo, Ballarat and Geelong. It is a major employer in these regional centres. Due to the severe drought in Victoria, Country Foods has made a business decision to close the Bendigo factory. The Human Resource Manager, Bob Spiteri, is responsible for implementing the closure in relation to staffing matters. The company’s CEO has contacted Bob Spiteri as he is concerned about possible industrial relations action that might impact on the company’s stakeholders.

a. Define employee relations and discuss the role of the human resource manager in this area.

Marks 0 1 2 3 4 Average% 20 28 26 16 9 1.7

Two components to the question:1. Definition of employee relations2. Role of HRM

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Employee relations is the interplay between workers (or their representatives) and employers (or their representatives)about the terms and conditions of employment or work. (1 mark)The human resources manager’s role is to employ conflict resolution skills when disputes arise, keep abreast of current industrial relations laws, try to promote the concept of an organisational team, avoid IR disputes, and initiate and carry out performance appraisals. (1 mark)b. Identify and describe two human resource strategies Bob Spiteri could use in this case.

Marks 0 1 2 3 4 Average

% 45 13 19 11 11 1.3

Strategy – any action taken by the LSO to achieve a goal or outcome.

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Strategies include:•Retrain staff•Relocate staff to plants not closing down•Offer redundancy packages

Strategies aim:•Meet objectives of LSO – close one plant•Avoid industrial action•Maintain morale of remaining staff and positive culture

c. Identify and explain two management skills Bob Spiteri could use and discuss how these skills would assist him in this current situation.

Marks 0 1 2 3 4 Average

% 17 12 33 19 18 2.1

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Two of:• communication• stress management• decision-making/problem-solving• negotiation.

Generally, this question was well handled. Students who scored highly were able to identify two skills, discuss the theory regarding those skills and apply them to the case material.Communication skills is the ability to send and receive information to produce the required response by getting further understanding or clearly articulating concerns. It is imperative that Bob communicates effectively with employees so that they understand when the closure is going to occur, why it’s going to occur and what their entitlements are. It is equally important that he understand the concerns that they communicate to him and that he takes these into consideration. This will assist him in ensuring the employees are not dissatisfied with Country Foods.

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d. Identify two stakeholders of Country Foods. Discuss the potential impact of this closure on these stakeholders.

Stakeholders could include:• employees• shareholders• managers• suppliers to the Bendigo plant• the local community of Bendigo.

Employees who lose their jobs might have to relocate to another city. Suppliers will lose a customer in Bendigo and this will impact their business financially.

Bob Spiteri is concerned about the impact of the closure of the Bendigo factory on staff at the Geelong and Ballarat plants.e. Describe how an appropriate motivational theory would assist him to maintain staff morale.

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Maslow’s hierarchy of needs outlines a 5 stage theory ranging from basic needs (food and water) to higher order needs such as self actualisation. While the employees at the other factories may feel slightly affected by the closure, Bob could motivate them according to Maslow’s theory. According to Maslow, the second highest need is esteem that is for status, recognition or attention. As a HR Manager, Bob could hence conduct performance appraisals with employers which is where their ability to perform their job is observed and evaluated and then Bob could provide feedback. This would involve setting goals to improve their performance, employees could be motivated to work more productively, while the recognition by Bob of what they are doing well would satisfy their esteem needs. Furthermore, to help employees to achieve self actualisation, that is the highest need which is a desire to reach their full potential and utilise all of their talents and capabilities, Bob could organise for them to participate in workplace training so that they will develop new skills and hence aim to achieve their full potential. According to Maslow, satisfying these needs will ensure that morale is maintained.

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Many students gave a rote-learned response about a motivational theory and therefore did not answer the question. To obtain full marks for this question, students needed to relate the motivational theory to the case material.Question 3Classic Cleaners specialises in supplying Australian households with washing machines and dishwashers.The company is planning to reorganise its operations as it prepares for the introduction of new models.The Operations Manager, Connie Lemnos, is investigating having some product parts manufactured in China and shipped to its Australian factories.

a. Identify and describe• one quality strategy• one materials management strategy• one facilities and design layout strategythat could be employed as a result of the introduction of the new models at Classic Cleaners.

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Quality Materials Facilities & Design

Strategy 1 Quality Control JIT Product Layout

Strategy 2 TQM Make or Buy Fixed Position

2 marks for the identification of an operations management strategy, with explanation of strategy and discussion of how it will be used as a result of the introduction of the new models.X 3

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HOW DO WE APPLY MOTIVATION THEORIES TO EXAMINATION QUESTIONS?

Dave Rodgers, Manager of the Marketing Division at Hume and Weston Ltd, has been called by the Human Resources Manager, Ms Wilson, to explain the high number of recent resignations from his department. Most resignations have been from the younger graduates who have complained about the lack of direction, no sense of belonging and no support given by Dave.

Dave does not see a problem with the high staff absenteeism, and would rather not discuss his department with Ms Wilson. Ms Wilson demands that he solve these problems immediately.

The Case Study…

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HOW DO WE APPLY THESE THEORIES TO EXAMINATION QUESTIONS?

The Question…Identify and explain an appropriate motivational theory and discuss its benefits for the Marketing Division. (4 marks)

How would Dave Rodgers apply this motivational theory to the Marketing Division?(2 marks)

(Source: VCAA VCE Business Management Examination 2005)

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HOW DO WE APPLY THESE THEORIES TO EXAMINATION QUESTIONS?

The Responses…Need to:

- outline the core elements of the motivational theory

- refer to the benefits for the Marketing Division

- apply the theory to the scenario (e.g. what Dave needs to do to overcome the issues he is facing)

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HOW DO WE APPLY THESE THEORIES TO EXAMINATION QUESTIONS?The Response…

Using Maslow’s Hierarchy of Needs:

Part1: Abraham Maslow’s needs theory of motivation comprises five levels of motivational factors, with each having to be satisfied before the next can be met. The factors, in ascending order are basic needs, safety, social needs, esteem and self-actualisation. This theory would benefit the Marketing Division through providing an idea of which employee needs should be satisfied, and in what order. This would maintain employee satisfaction, reduce absenteeism and provide a structure and sense of belonging that is currently lacking.

Part 2: Mr Rodgers could apply this theory to the Marketing Division by identifying the needs that his employees must have fulfilled. Employees have expressed that they feel ‘no sense of belonging’, which is a need identified in Maslow’s theory. By providing opportunities in his department for this need to be fulfilled, perhaps through creating teams or teamwork situations, Mr Rodgers will motivate his staff to try to achieve higher order needs, which will lead to increased employee job satisfaction and reduced staff absenteeism.

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HOW DO WE APPLY THESE THEORIES TO EXAMINATION QUESTIONS?The Response…

Using Herzberg’s Two Factor Theory:

Part1: Frederick Herzberg found that job satisfaction and job dissatisfaction acted independently of each other. His Two Factory Theory, or motivation-hygiene theory, states that there are certain factors in the workplace such as achievement, accomplishment and personal growth that cause job satisfaction, while a separate set of factors such as status, salary and benefits cause dissatisfaction from their absence. This theory would benefit the Marketing Division through providing an idea of what needs should be satisfied in order to increase employee motivation levels and consequently improve productivity. This would enable the division to maintain employee satisfaction, reduce absenteeism and provide a structure and sense of belonging that is currently lacking.

Part 2: Mr Rodgers could apply Herzberg’s theory to the Marketing Division by focusing on the motivator elements or nature of the work itself, delegating responsibility and designing challenging tasks to ensure employees have the opportunity to gratify the higher order needs of achievement, personal growth and recognition. By doing this he will increase employee motivation and overcome the problems concerning a lack of direction and support. With increased motivation, Mr Rodgers will subsequently experience an increase in employee job satisfaction as well as reduced staff absenteeism.

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HOW DO WE APPLY THESE THEORIES TO EXAMINATION QUESTIONS?The Response…

Using Locke’s Goal Setting Theory:

Part1: Edwin Locke’s Goal setting theory found that employees were motivated by two key factors, goals and feedback. Both of these factors working together would then lead to improvements in performance. Locke’s theory centred around the importance of setting goals according to the SMART principle whereby goals set should be Specific, Measurable, Attainable, Realistic & Time Constrained.This would benefit the Marketing Division through setting clear and achievable goals with his staff and providing appropriate feedback. This would maintain satisfaction of staff and if they are given the opportunity to be involved in setting the goals, would lead to increases in sense of belonging that is currently a problem.

Part 2: Mr Rodgers would use Locke’s theory and apply it to the Marketing Division by setting specific, measureable and achievable goals. Mr Rodgers must also ensure that they are relevant and realistic for the employees to attain and make sure he provides adequate time to complete them. Mr Rodgers must also ensure he provides appropriate feedback in a timely manner to assist employees to achieve their goals. The young graduates have expressed lack of direction, these clear goals would assist in helping them have direction and the feedback Mr Rodgers provides can help them feel a greater sense of belonging. All these factors will lead to reducing the problem of high staff absenteeism as staff would enjoy their job as they now feel recognised for the efforts and play a part on the goals they set and achieve.

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There are 43 days until the Business Management exam!There are 28 days until the English examination

Your task is to prepare as well as you possibly can for the examination.

What should you be doing?

Did you know .....?

There is lots going on between today and the exam:•Holidays•‘Muck up’ day(s)•Graduation•Licence test (?)•Final ‘schoolies’ planning

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WHAT SHOULD I BE DOING ?Review your notes – prepare summaries of each topic, identify examples that are appropriate for each area, Diagrams and flow charts

Practice your exam technique

Find out what the examiners are looking for – assessors reports

Look at what the examiners have asked in the past to get clues for your exam

* Glossary * Knowledge of ‘action’ words

* Knowledge of an LSO and a change issue affecting that LSO

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Reading time15 minutes. Time to read the exam through at least twice. Why twice?

In the Exam

Check the mark allocation. For a 2 mark question you should allocate 4 minutes (max). If a question is worth 4 marks but the 4 marks are 2 + 2, then you must spend equal time on each 2 marks.

Look for clues in the scenarios (if given). Where possible link your response to something in the scenario.

If not already prepared, these items should be prepared and revised. The ability to correctly use terminology and provide exact definitions demonstrates a deeper understanding of the topics.Can separate a 6/6 answer from a 5/6 answer.

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Writing timeAnswer the ‘easiest’ question first.This is not necessarily Question 1. Each student may have a different ‘easiest’ question. This will depend upon the areas you have revised more thoroughly or tips gained from teachers about the exam.You don’t have to answer the questions in order.Keep re-reading the questions – some of the early questions may provide hints, clues, etc that will help you answer the later questions.Don’t write in pencilYou can’t use liquid paper. If you make a mistake, cross it out and use the spare pages at the end of the booklet.If you need more space for a question, write on the spare pages at the end of the booklet and use clear instructions directing the assessor where to read.

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Write clearly. Assessors are human and have a heavy load. Poor handwriting can lead to “errors” in marking as assessors get tired. (Most assessors are teachers still teaching and must mark about 200 exams in a week).Try to leave time at the end to read over your answers.Practice your exam techniqueBy now you should have seen a number of Bus Man exams:•VCAA Sample Exam (available on www.vcaa.vic.edu.au)* Practice exams set by others – NEAP, CPAP, TSSM•Practice exams set by VCTA (www.vcta.asn.au)

• Beware of Past VCE Exams

Make sure when you do it you do it under exam conditions:* Reading time (no writing)* Writing time (don’t give yourself extra time, don’t take a break, don’t have music/TV on, turn mobile off)* allocate your time as you would in the exam

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WHAT HAPPENS NEXT ?Devise a routine for yourselfTreat your study days like a school day – get up normal time, study, break (recess), study, break (lunch), etc. Keep your normal routine.

Plan how you will get to the exam venueGet to the exam at least 30 minutes before hand. Don’t sit and discuss what you’ve studied – someone may say something that distracts you or panics [email protected]

Do your practice exams at the same time of day as the ‘real’ exam – get used to the conditions