key concepts in human resource management · and skills associated with the theory and practice of...

This overview is designed as a companion module to provide you, ourstudents, with a brief introduction to the nature, scope, roles, functionsand skills associated with the theory and practice of human resourcemanagement (HRM) in organisations across the world. This module isa very useful resource and, although an optional read, do know thatsubsequent courses will build on these foundations, to increase yourknowledge and enhance your skills and competencies in this crucialprofession, and place HRM in an organisational context.

This companion module for the Masters of HRM begins with a conciseanalysis of the global business environment and a brief discussion ofthe nature and types of organisations (for-profit and not-for-profit;public and private; small, medium and large), followed by a more focused discussion of HRM principles,strategies, functions and skills.

After reading the text, it will be useful to access the online videos and recommended articles to deepen andexpand your understanding of the concepts and practices discussed.

All organisations, whether in the public or private sectors, operate in community, state, country and/orregional contexts. Some are restricted to local operations, whilst others market and distribute their productsand services across regions, or across the globe. As examples, delicatessens, cafés and small hotels servetheir customers only in particular neighbourhoods; retailing organisations often operate across

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neighbourhoods and states (Bunnings, Australia; Walmart, US); and multinational (or online) companies,(Amazon, Gloria Jean, Google, Microsoft, Infosys, BHP, Coca Cola) consider the world as their market-place.

Video - Business Environment

For a brief overview of business environments, watch the following Youtube video.

Depending on the location and intended market(s) of organisations, there are both similar and diversecharacteristics of these business environments which all organisations must analyse, to design effective,efficient, productive and sustainable outcomes. These include (but are not restricted to) Political (stability,reliability, security), Economic (market size, currency stability and exchange rates, buying power), Social(employment frameworks, cultural issues, traditions), Technological (skills levels, uptake of new technology),and Legal (financial, workplace and employment frameworks) issues. Together, these characteristics havebeen formed into an acronym (PESTL), which organisations often use as an analytical tool to explore theirexternal business environment, as a component of both strategic management and human resourceplanning.

The corollary to such analyses of external business operating environments is a parallel exploration of anorganisation’s internal environment. This form of analysis includes aspects such as finances, marketing,quality of products and services; and (perhaps most importantly) the quantity, skills, competencies andfuture potential of an organisation’s workforce – ‘the right people in the right place, at the right time, and atthe right cost’ is the key mantra of human resource management. SWOT (strengths, weaknesses,opportunities, threats) analyses can indicate whether organisations have the present and future capability toproduce new products, enter new markets and/or sustain their productivity, profitability and competitiveness.Michael Porter (1985) suggested that analyses of the external and internal business environments shouldconsider five key elements – namely, the threat of (competitor) market entry, the (relative) power ofsuppliers and buyers, the danger of possible substitutes, and competitive rivalry.

It should be noted here that both external and internal business environments are dynamic, and thus anyanalyses require considerable flexibility, alternative strategic options, and ongoing adjustment of subsequent

Please watch the video


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plans and policies to address their challenges. As a brief (but important) example of these issues, the worldis facing several fundamental environmental threats to the sustainability of future business operations –namely, actual or potential political instability in Europe, the Middle East, the United States, North Korea andparts of Southeast Asia; currency fluctuations and economic instability, due to Brexit and otherdevelopments; social unrest and protests against some companies in low wage economies; and legalchanges, at both national and international levels. However, the most significant of these challenges in theexternal global business environment is technological. The so-called Fourth Industrial Revolution (the age ofaccelerated change); primarily associated with artificial intelligence, robotic and machine learningtechnology; threatens to fundamentally change the nature of business, the quantity and quality of work andjobs, workforce size and skills.

The fiction concerning the changes technology will induce is over (Manyika et al., 2017). The great leapforward and scope of what can and will be automated raises more questions than can be answered(Montague, Larkin Mumme, Burgess, 2018 – forthcoming). This places HRM professions in a moreimportant position than ever before to predict, plan and sustain employment for staff and develop positiondescriptions for jobs merged with AI innovations that impact at varying levels on all jobs – well those thatremain (Manyika et al., 2017). The development of AI, robotics, and technologically charged machines thatlearn machines, places people the accelerated learning pathway in a new automation era. As Chalmers (inAdams 2017) and Maniyaka et al., (2017) attested – the era that we are in this most revolutionary industrialage is significantly different. This AI-led industrial revolution is marked by robots and computers that willobliterate activities that involve routine physical work with enhanced efficiently at less cost to employingpeople (Manyika et al., 2017). Robots and computers will experience increased capacities to accomplishactivities that include cognitive capabilities (problem solving/critical thinking), innovation/creativity andlearning (particularly from never to be repeated mistakes) (Chalmers in Adams 2017, and (Maniyaka et al.,2017), Many vocational tasks that were once considered too complex to automate effectively, such asmaking clear conclusions, distinguishing emotion, or jobs requiring multiple skills such as driving (Chalmersin Adams 2017, Maniyaka et al., 2017). Now the daily work activities of everyone, from checkout staff, tominers, landscapers, accountants, medical specialists, commercial bankers, fashion designers, welders, andCEOs, among all occuaptions are headed for unimagined changes (Chalmers in Adams 2017, Maniyaka etal., 2017). But how quickly will these automation technologies become a reality in the workplace? And whatwill their impact be on employment and productivity in the global economy? These are aspects that willimpact on HRM prominently and will be covered in more detail in the masters of HRM.

Further resources

For an interesting discussion of the issues associated with the Fourth Industrial Revolution, please seeSchwab, K. 2016, The Fourth Industrial Revolution, NY: World Economic Forum.

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Anon, 2017. Future-Proof: Protecting Australians Through Education and Skills . [online] Business Council ofAustralia. Available at: <http://www.bca.com.au/publications/future-proof-protecting-australians-through-education-and-skills> [Accessed 26 Jan. 2018].

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Please listen to a very interesting podcast by accessing Chalmers, J. (2017) in Adams, P. {broadcaster}, P2017. When robots come for your job. Late Night Live. Radio national Australian Broadcasting CommissionSydney 27 September 2017. [online accessedhttp://www.abc.net.au/radionational/programs/latenightlive/when-the-robots-come/8992662


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http://www.abc.net.au/radionational/programs/latenightlive/when-the-robots-come/8992662


All organisations exist to serve the interests of their owners,shareholders, management, customers, employees andsometimes, their local communities. These stakeholdershave a combined responsibility to ensure that theorganisation is efficient and effective, with high quality goodsor services; and that it is productive, competitive, andhopefully sustainable, within its dynamic external businessenvironment. Organisations also need to conform with local, national. and even international laws on issuessuch as non-discrimination, workplace health and safety, basic wages and associated employmentconditions. Increasingly, organisations are also encouraged to adopt corporate social responsibility (CSR)imperatives, such as ensuring that natural and ecological environments are protected from the adverseeffects of business (toxic chemicals, destruction of forests, damaged water supplies); to build links with localcommunities (for both marketing and future staffing purposes); and to assure employees’ health and well-being.

However, not all organisations are the same with respect to their type, purposes, size, structure and sector.They can be broadly classified by their

basic type (public/government or private),

purpose (for-profit or not-for-profit),

size (small, medium or large – based on employee numbers and/or financial capital),

structure (see later), or

industry sector.

All these classifications imply different purposes, employment conditions and HRM practices. Public (orgovernment) departments and agencies usually implement government strategies and policies (health,education, police, national security) and are largely not-for-profit; whilst private sector organisations areoften for-profit, either as national or multinational corporations.

Most countries have industry classifications which are similar tothose of the Australian Bureau of Statistics (www.abs.org.au)

primary (raw materials, including agriculture),

secondary (manufacturing and construction),

tertiary (service) and

quaternary (intellectual services) sectors.

These sectors are also divided into more specific categories – for example, advanced manufacturing;automotive; biotechnology; building and construction; chemicals and plastics; food and agribusiness; marine,mining equipment and services; pharmaceuticals; space; textile, clothing and footwear; wood products and

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associated manufacturing.

Organisational structural classifications are usually based on theoretical frameworks such as thosepresented by Mintzberg (1989). He proposed that all organisations can be categorised according to theirstructure, suggesting that there are five basic organisational structures – entrepreneurial (flat structures),machine (bureaucratic, hierarchical), professional, divisional or diversified (by product or region), andinnovative organisations. The latter are exemplified by Microsoft, Google, Amazon and Tesla, together witha host of national and global ‘pop-up’ or micro-organisations.

Given the complexity of doing business in turbulent times across the world,all organisations need managers who have the capabilities to ensureongoing productivity, competitiveness, and (either) profitability (or) cost-containment. Depending on their size and structure, there may be threekey levels of management – namely, executive (or senior) managers,middle and line managers. Executive managers are responsible for theoverall control of all aspects of the organisation (for example, some largeorganisations have a Chief Executive Officer, a Chief Finance Officer, aChief Operating Officer, a Marketing Director and a Human Resource Director). Flatter, or lean,organisations will usually have fewer management levels, with several functions combined in a singlemanagement position (for example, management, marketing, human resource management andoperations). However, all managers have a common responsibility to effectively manage three keyorganisational resources – namely, finances, technology and human resources (employees). Arguably, themost significant resource is employees, not only because they are often the largest ongoing cost to theirorganisations, but because they possess the greatest potential for future innovation and growth.

Several authors have attempted to explain what constitutes ‘management’. The founder of ScientificManagement (Frederick Taylor – “Taylorism”) took a functional approach - ‘management is the art ofknowing what you want to do, and then seeing that they (employees) do it in the best and cheapest way’;whilst Mary Parker Follett had a more people-focused definition – the art of getting things done throughpeople’ (check the references below). Note that both describe it as an ‘art’ rather than a science!

An understanding of leadership generally towards a more specificexploration of the role of ethics, and in particular, the ethics ofmanagers and leaders, in creating and sustaining productive, effectiveand competitive organisations is touched upon in different ways indifferent courses. The roles and competencies of human resourceprofessionals in helping organisations and their leaders to achievethese goals ethically are issues of prominence to Nankervis et al,92017, and the CIPD (2017).

The key impetus for the focus on ethics in organisations in recent decades has been the significantlyunethical practices of companies in the financial and information technology services sectors, such asEnron, Lehman Brothers, Freddie Mac and Fanny Mae in the United States; HIH Insurance and One-Tel inAustralia; and Satyam Computer Services in India (Nankervis et al 2017, p. 40). In other industries, thepharmaceutical company GlaxoSmithKline was accused of bribery in China, several senior managers at theUK News of the World were convicted on serious criminal charges associated with phone-tapping; BP wasforced to pay significant compensation for environmental damage in the Gulf of Mexico (Carter 2015, p.1);and recently, Germany’s Volkswagen company suffered severe financial and reputational costs as a resultof its managers’ falsification of diesel vehicle emission standards. As Thompson (2015) explained:


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‘big corporations are generally in a better position to act ethically. But their ethical probity can beundermined by a culture that encourages aggressive, risk-taking behaviour... ethical considerations areignored when employees earn respect and advancement only by outdoing others in the money-makinggame’.

On the other hand, she argued that ethical business relationships with employees, consumers, investors,and the overall community are good for business – ‘They are good for public relations, the morale ofworkers, and consumer trust. They also ensure that executives will not find themselves out of a job orserving jail sentences’ (www.abc.net.au/news/2015-10-15/thompson-business-ethics-isnt-a-contradiction-in-terms/6827488).

For an interesting discussion of these issue, watch the Youtube video, ‘The future of leadership andmanagement in the global business environment’

Watch the Youtube video, ‘Ten leadership theories in 5 minutes, for a brief discussion of the variousleadership theories and practices which will be discussed further in subsequent modules of your program.




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As Armstrong (2012: Chapter 8) suggested, whilst ethics and moralityare often considered to be synonymous, they differ somewhat withrespect to their focus and applications. Thus, morality is concernedwith broad (societal) beliefs, whilst ethics focuses on the choice ofappropriate behaviours in specific (workplace) situations. Inevitably,however, ethical behaviours derive from moral values, and in somecases, may be enshrined in government legislation (for example,equal employment opportunity and workplace health and safety laws).Winstanley and Wood (2000, p. 8-9, in Armstrong 2012: Chapter 8),argued that:

‘Ethics is not about taking statements of morality at face value; it is a critical and challenging tool. There areno universally agreed ethical frameworks... Different situations require ethical insight and flexibility to enableus to encapsulate the grounds upon which competing claims can be made. Decisions are judgementsusually involving choices between alternatives, but rarely is the choice between right and wrong... Moraldisagreement and judgements are concerned with attitudes and feelings, not facts’.

In other words, organisational leaders’ ethical behaviours are based on their choices and judgements aboutthe mutually-beneficial outcomes for all stakeholders – namely, investors, employees, customers, suppliers,as well as the communities and the environments with which they interact. Three key principles underliethese ‘choices’ – namely, ‘equity, justice and fair dealing’ (Armstrong 2012: Chapter 8).

Activity - Listen to a podcast

Listen to the CIPD (2015) HR and Business Ethics podcast (16.59 minutes)


Source: https://www.cipd.co.uk/podcasts/hr-business-ethics

Whereas management is primarily concerned with the ‘hard’ aspects of organisations (controlling operationsand costs, investing in appropriate technology and ensuring return on these investments in technology andstaffing); effective managers these days also require leadership skills, which usually involve ‘soft’ aspects,including the ability to motivate and engage employees; ethics, the provision of realistic goals; nurturecreativity, innovation and entrepreneurship. As Peter Drucker, often considered the father of modernmanagement suggested, ‘leadership is lifting a person's vision to high sights, the raising of a person'sperformance to a higher standard, the building of a personality beyond its normal limitations’ (1998). BillGates, the founder of Microsoft, expressed it more simply – ‘As we look ahead into the next century, leaderswill be those who empower others’.

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https://www.cipd.co.uk/podcasts/hr-business-ethics

As discussed earlier in this companion document, the success of all organisations is based on the effectiveand strategic management of three crucial resources – finances, technology and human resources. Whilstall these resources are inherently inter-connected, the human resource is ‘almost always the key ingredientfor organisational success’ (Nankervis et al., 2017, p.3), not only because people produce goods andservices, but perhaps more importantly, because they possess the competencies and capabilities toinnovate, design, and create new products and services in response to the demands of the externalbusiness environment. However, they will only do so in the presence of able management and positiveleadership strategies.

HRM basically consists of three components – namely, humans(employees); the perception that humans are ‘resources’ (knowledge,skills and capabilities); and the effective management of those‘resources’ for both organisational and employee benefit. The definingcharacteristics of humans, as opposed to the other two organisationalresources, are their individuality, unpredictability, complexity andability to transform and adapt, as external and internal businessenvironments change or transition. Accordingly, unlike financial andtechnological resources, employees expect to be managed fairly,professionally, and with recognition of their individual qualities (physical, emotional and psychological) andneeds. It should be noted here, that regardless of the size or type of organisation, all managers – executive,middle or line – have HRM responsibilities, even in the presence of dedicated HR professionals. Strategichuman resource management (SHRM) involves ensuring that all HRM functions and their outcomes arealigned with organisational goals and targets, within their external business environments, and adaptable asthese environments change.

Activity - Watch a video

Watch the Youtube video, ‘HRM’ – Human Resource Management, 2 minutes, for a concise explanation ofHRM


Activity - Reading

Read the following online article.

Walker, B., 2016. A Human Resources Career is Not for “Nice” People . [online] LinkedIn. Available at:<https://www.linkedin.com/pulse/human-resources-career-nice-people-brian-walker> [Accessed 27 Jan.2018].

Several authors have attempted to define HRM. As examples, Nankervis et al (2017) suggested that it is’the effective overall management of an organisation’s workforce, in order to contribute to the achievementof desired (short- and long-term) organisational objectives and goals’ (p. 13); Stone (2013) explained that it‘involves the productive use of people in achieving the organisation’s strategic business objectives, and thesatisfaction of individual employee needs’ (p. 4); whilst Kramar et al (2017) define it as ‘the patterns ofplanned HR deployments and activities intended to enable an organisation to achieve its goals’ (p. 6). The

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common themes here are – clear links between HRM strategies, policies and practices, and businessstrategies and goals; effective or productive people-management approaches; and integrated HRMfunctions. Two key concepts are important here – first, the alignment of HRM strategies, policies andpractices with an organisation’s strategic business plan (vertical alignment), and the alignment of all HRMfunctions with each other (horizontal alignment).

Figure 1 below illustrates the vertical and horizontal alignment components of SHRM, together with the HRMfunctions which are briefly discussed later in this companion document.

(Source: Nankervis, A., Baird, M., Coffey, J., Shields, J. 2017, Human Resource Management: Strategy and

Practice, 9th edn., Melbourne: Cengage, p. 44)

Ideally, broad human resource strategies will be determinedaccording to the directions which an organisation needs to take toachieve its desired business goals and objectives, and are thenreflected in more detailed HRM plans for such issues as staffing,learning and development, rewards and career planning systems,amongst others.

As one example, an organisation which intends to extend itsoperations across different states or regions (strategic business plan) will usually require either moreworkers or employees with different skills. A corresponding HRM strategy might include sourcing additionalemployees from the new markets; upskilling existing employees; redesigning remuneration systems to


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attract the new staff or retain good performers; and (maybe) developing redundancy programs for thoseemployees deemed surplus to requirements, or unable to be trained with the required new skills andcapabilities. Similarly, organisations which intend to reduce their labour costs and improve their productivitythrough the implementation of new technologies (strategic business plan) demand HRM strategies andplans which address such issues as the reduction of the existing workforce, new skills training for remainingemployees, job redesign, and the re-negotiation of employee relations agreements, to facilitate theseorganisational changes.

Activity - watch video

For a comprehensive introduction to human resource strategy and planning, watch the Youtube video,‘Human resource strategy and planning’

Human resource plans translate the organisational goals and objectives into the practical implications forHRM functions such as job design, employee recruitment and selection, human resource development,diversity management, remuneration and rewards, performance management, career and succession andemployee relations (see Figure 1). It entails an analysis of an organisation’s external and internalenvironments (environmental scanning), the quantity and qualities of existing employees, and the skillsneeded to meet the organisation’s goals and objectives – essentially, labour demand forecasting versuslabour supply analysis, followed by a plan which balances supply and demand (Nankervis et al. 2017, p.145).

Labour demand forecasting is derived from an organisation’s goals and objectives, and is usuallyundertaken by a combination of formal and informal techniques, supported by an internal database (oftencalled an HR Information Management System, HRIMS); whilst labour supply analysis depends onknowledge of the various external and internal sources of employees who are most suitable for the new orredesigned jobs. Techniques used for the latter purposes can be both quantitative and qualitative. As someauthors have pointed out, however, both components of human resource planning are ‘frequently more anart than a science providing informed estimates rather than absolute results… (due to) the ever-changing



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environment’ (Nankervis et al. 2017: 146). People are not machines.

The relationship between employers and employees in most (if not all)countries is generally subject to a series of laws and regulations; toensure that employees are entitled to reasonable wages, fair workconditions and benefits; to provide mechanisms to address employerand employee grievances and disputes; and to mediate between theinterests of three key parties – governments, employers (representedby employer associations) and employees (represented by tradeunions). Different countries have diverse systems, and maximum orminimum protections for employees depending on their political, economic and social systems. In recenttimes, and especially in countries such as Australia and New Zealand, which have experienced both asignificant decline in union membership, and an emphasis on cooperative rather than adversarialrelationships between employers and trade unions; industrial relations has transformed into ‘employeerelations’, or more recently, ‘workplace relations’.

Employee relations frameworks and systems underpin HRM strategies, processes and functions, as theyprovide the legal rules and regulations for the employment relationship. For example, many countriesrequire organisations to prepare and consult with employees (or their unions) to develop formalorganisational or workplace agreements (hours of work, wages, benefits); and to develop policies, programsand systems for workplace/occupational health and safety (W/OHS). Some other countries have lessdeveloped employment relations legal frameworks. All HRM functions are affected by employee relationslaws and regulations. Thus, job design is influenced by W/OHS and Equal Employment Opportunity (EEO)legislation; talent attraction is subject to these laws, as well as anti-discrimination and employee relationsregulations; as are remuneration and rewards, learning and development; performance management, andespecially the termination of employment (unfair dismissal).

In summary, HRM policies and functions need to be developed and implemented in accordance with therelevant industrial/employee relations legislation which reflect the social and legal contexts in which they arelocated.

One of the key outcomes of HRM plans (and often one of its mainpurposes), is to analyse the number of jobs (and clusters of jobs) inan organisation, their components and required skills andcompetencies; in order to determine whether they remain necessaryto achieve desired sectional and organisational objectives, whetherseveral jobs might be merged for greater efficiency and productivity,or whether they need to be redesigned to provide greater jobsatisfaction and adaptability with new technologies and workprocesses. In some situations, these processes may result in the elimination of jobs or even whole jobclusters. Examples of these issues include the reduction of retail check-out operator positions with theimplementation of self-service check-out machines; the merging and de-skilling of bank teller positions, dueto the implementation of automatic teller machines and online banking systems, and the significant reductionin finance administration positions in many iduxtriy sectors. On the other hand, whilst many face-to-facetravel agent jobs have been eliminated because of online flight and accommodation booking systems, thejobs which have replaced them often require higher level information technology and business-to-businessskills and competencies.


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Job design is a broad term which specifically includes;

Job analysis – the determination of the components of specific jobs or job clusters (outcomes,

responsibilities, tasks, functions, required qualifications, and skills/competencies)

Job (and Person) Descriptions – job descriptions usually include a formal statement of the job, its duties,employment conditions, and grading/salary and benefits; person descriptions include the personalcharacteristics required to perform the job (qualifications, work experience, competencies and personalqualities)

Job evaluation – a determination of the ‘value’ of the job, specifically, its grading (including salary and

benefits)

Job design is often regarded as the foundation of SHRM, because it reflects SHRM strategies and plans,and informs other HRM functions such as recruitment, selection, learning and development, performancemanagement, remuneration and rewards, and employee relations. The ‘employee relations’ aspect isassociated with the role of trade unions (in some countries) in negotiating employment conditions, accordingto local or international contexts.


For a brief explanation of job design and its components, watch ‘Job analysis, job design and job evaluation’



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Many authors agree that one of the key challenges facingorganisations globally is what has been called ‘the war for talent’, thatis the ability of employers to attract (and retain) employees with theright knowledge, skills and capabilities to contribute to theirproductivity and competitiveness in a dynamic business environment.The causes of this challenge include a lack of suitably-skilled andmotivated applicants, mismatches between university graduatecompetencies and the changing needs of industry, the effects of newtechnology on jobs and skills, and the job and career aspirations of the “Millennial” generation. Recruitment(or talent attraction) is no longer simply about advertising a vacant job, expecting a large pool of applicants,and choosing the ‘best person’ for the job using criteria from the job description. As the term suggests, talentattraction involves ‘attempting to locate and attract a pool of suitably qualified and experienced people toapply for existing or anticipated positions within an organisation’ (Nankervis et al. 2017: 218). Thus, theprocess involves:

understanding the requirements of the specific job(s), both now and into the future;

targeting the most suitable labour markets from which to source the best applicants (for example,

internal/external, local and/or global, same or different industry, universities and/or vocational

institutions)

marketing the culture of an organisation, its benefits and potential rewards and career opportunities

using the most suitable media to attract applicants (Linkedin, facebook, instagram, Wordpress.com,

university career fairs etc.)

Activity - Watch some videos about recruitment

Video 1 - Recruitment is marketing

For a brief, but interesting explanation of new recruitment strategies, watch the Youtube video, ‘Recruitmentis marketing’



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Video 2 - How Nestle transformed recruitment into talent acquisition

Activity - Reading

Read the online article – ‘9 things that make good employees quit’ for suggestions which might encouragegood employees to join organisations

Bradberry, D.T., 2016. 9 Things That Make Good Employees Quit . [online] The Huffington Post. Availableat: <http://www.huffingtonpost.com/dr-travis-bradberry/9-things-that-make-good-e_b_8870074.html>[Accessed 26 Jan. 2018].

Whilst the goal of recruitment is to attract a suitable pool of applicants, employee selection aims to reducethat pool to only the most qualified and experienced applicants for the vacant positions. Given thesubjectivity of choosing applicants, a series of selection techniques are often used to improve the objectivityof the selection process. These techniques might include (but are not restricted to) reviews of applicantresumes or Linkedin/Facebook pages; various forms of testing (psychological, work sample, online tests,simulations); background checks (references, medical examinations, criminal and residency checks); andface-to-face, group or Skype interviews. All these techniques have advantages and disadvantages, andconsequently a process which combines several of them is usually the most effective in reducing biases andfocusing on job-relevant selection criteria. It is important to recognise that employee selection is a mutualprocess between employers and prospective employees – all techniques provide the opportunity to market



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https://www.huffingtonpost.com/dr-travis-bradberry/9-things-that-make-good-e_b_8870074.html

the culture and benefits of an organisation in a competitive job market, and applicants will review theseaspects in relation to their own career aspirations.


View an example of an unorthodox form of selection interview. How would you have responded?

As some authors note, ‘organisations must continually invest in thelearning and development of their staff, to remain viable andcompetitive in a face-paced, global business environment’ (Nankerviset al. 2017: 277). Given the rate of changes in technology, social andeconomic environments; and the predicted dramatic impacts of theFourth Industrial Revolution on all jobs and workforces; learning anddevelopment has become one of the key means of attracting,transforming and retaining employees into the foreseeable future. Most likely, all organisations will need tobecome ‘learning organisations’ which ‘value and proactively facilitate employee learning and developmentto respond to internal and external environmental changes more readily by having in place the humancapital required’ (Nankervis et al. 2017: 278).

Learning and development activities should begin with the induction (or ‘orientation’, or ‘on-boarding’) of newemployees, and continue with regular and ongoing employee opportunities to upgrade their knowledge andskills, using both traditional (apprenticeships, internships, face-to-face technical training, paid universitycourses) and more contemporary approaches (learning and development portals, online self-paced skillstraining, e-conferences and virtual teamwork, leadership coaching and mentoring). However the learningcontent is delivered to employees, there are three important components of learning and developmentprograms, from the human resource professional’s perspective – namely, a careful analysis of the specificknowledge or skills required by particular jobs; program designs which deliver these aspects in customisedways; and finally, comprehensive evaluation processes which measure the effectiveness of suchinterventions on the employee, their work sections, internal and external customers, and the organisation as



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a whole. In practice, many organisations fail to adequately undertake the first and last of these processes.

Many (but not all) countries now have laws prohibiting discrimination (socially and at the workplace) onspecified grounds – for example, gender, disabilities, age, marital status, sexual preference, religion andethnicity – which apply to all HRM functions. Discrimination can, of course, take various forms – direct (forexample, job descriptions or interviews which include irrelevant selection criteria), indirect (for example,training programs held on a day held sacred by some religions), and systemic (for example, policies orpractices which exclude certain groups) – Stone 2013: 592. Diversity is a broader concept than anti-discrimination, and is usually not included in workplace legislation. Its basic premises are that organisationsobtain reputational benefits from having workforces which represent their local and global communities; thatworkforce diversity results in more innovative business approaches; and that organisations with suchworkforces encourage greater engagement and more inclusive work cultures. All these goals reflect HRMvalues and are relevant to all HRM functions.


The video, ‘Google is trying to create a more diverse workplace’ provides an interesting example of onecompany’s approach to diversity management.

Clearly, employees are (at least partly) motivated to perform by attractive wages, salaries and otherorganisational benefits. However, based on considerable research on the factors which motivate employeework performance (see for example, Abraham Maslow’s ‘Hierarchy of Needs’, Frederick Hertzberg’s‘Hygiene-Motivator’, and Hackman and Oldham’s ‘Job Characteristics’ theories – see references below), it isgenerally accepted that whilst employees require monetary rewards (wages and salaries) to workeffectively, the strongest motivators are non-monetary (such as respect, acknowledgement, challengingtasks, supportive work groups and work-life balance opportunities). The latter is often called ‘higher-order’(or intrinsic) needs, whilst the former is referred to as ‘lower-order’ (or extrinsic) needs. The motivating effectof extrinsic or intrinsic rewards will, of course, differ between occupations and between individuals, based onthe level of skills required and the personal circumstances of employees. It is interesting that the terminology



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used – ‘remuneration’ or ‘compensation’ – reflects different underlying philosophies. US organisations usethe term ‘compensation’, implying that employees need to be rewarded for the ‘hardship’ of coming to work;whereas, many other countries refer to it as ‘remuneration’, suggesting that a ‘fair day’s work’ deserves a‘fair day’s pay’!

Accordingly, HRM professionals need to design remuneration and reward systems which are flexible enoughto meet the extrinsic and intrinsic needs of all occupational groups and individual employees, within the legalframeworks provided by governments and (where applicable) as included in enterprise agreementsnegotiated between employers and trade unions. The components of remuneration and reward systemsmay include – base pay (job-based, skill-based or competency-based); performance-based pay (individualand/or team); together with a host of additional benefits, including employer-subsidised superannuation,annual and sick leave entitlements, and worker’s compensation (compulsory in many countries). In addition,employers may offer a range of other discretionary benefits, including flexible working hours, productdiscounts, free uniforms, subsidised canteens, club or gym membership, educational assistance, mobilephones and computers (Nankervis et al. 2017: 413-420).

Many global organisations, including Microsoft, HP, Google, Alibaba and Infosys, use these non-monetaryincentives to attract and retain their highly-skilled and potentially mobile employees. Smaller organisationsare unlikely to be able to offer such attractive benefits, but can provide satisfying job roles, supportive teamsand inclusive organisational cultures. It is the responsibility of HRM professionals, together with middle andline managers, to design customised remuneration and rewards systems which reinforce their organisationalcultures, motivate employees and encourage effective work performance.


Watch the video – ‘Compensation at Google’ for an interesting example of a remuneration and rewardsprogram.


Human Resource Management - An introductory overviewPerformance Management


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Of all the HRM functions described above, performance managementis perhaps the most important, and seemingly the most difficult, toconduct effectively. Whilst HRM professionals usually design anorganisation’s performance management systems (PMS), middle andline managers are most commonly charged with the responsibility toimplement them. A key issue for the design and implementation ofPMS is the definition of ‘performance’ in different kinds of jobs. Whilstemployee performance in straight-forward jobs may be relatively easyto identify – for example, a sales assistant’s performance can be observed (and measured) in terms of theirsales figures, ability to serve customers in a defined period, or their product knowledge or service quality.More complex jobs may require multiple sets of knowledge and skills. As an example, an IT client servicetechnician’s performance is clearly based on their knowledge of computer hardware and software, butincreasingly their customer service skills (listening to the client, problem-solving and communicationcapabilities) have become equally as important. Managerial positions usually involve higher level skills, withdifferent priorities and (less measurable) outcomes.

As earlier discussed, managing employee performance is a complex and difficult process, as it includes notonly the identification of appropriate performance criteria and outcomes, but also dealing with employees’emotions and feelings. It also involves ensuring that good performance gets rewarded, and that poorperformance leads to subsequent learning and development opportunities, potential adverse outcomes suchas counselling and discipline, or even termination in extreme cases. These processes involve both theimmediate supervisor in the first instance, and HRM professionals at later stages. Some authors describemodern performance management systems as:

‘a continuous process that includes establishing performance criteria for individuals and groups that arealigned with organisational strategy; regular performance monitoring and feedback; reliable performancereviews against the job criteria; the provision of formal feedback by appropriately-trained reviewers;counselling and discipline for identified performance deficiencies; action planning to address deficiencies;and coaching of high-potential employees, managers and executives’ (Nankervis et al. 2017. p. 325).

Performance review (or appraisal) methods are many and various, and their choice is dependent on thenature of organisational cultures. They also reflect the management theories discussed earlier in this HRMoverview, and the types of jobs included. As examples, traditional methods (for example, graphic ratingscales, behaviourally-anchored rating scales) are usually used with job performance that is relatively easilymeasured, and reflects Scientific Management theories; Human Relations theories inform suchbehaviourally-based methods as self-review, peer review, upward and 360 degree reviews; whilstManagement by Objectives (MBO) theories espoused by Peter Drucker (see above) are reflected in Goal-Setting and Balanced Scorecard (BSC) approaches.

Some common problems associated with PMS include: a failure to align performance management withorganisational strategies and goals; annual performance reviews fail to reflect day-to-day work activities andoutcomes; both supervisors and employees feel threatened and alienated by punitive-focused PMS;reviewers are often untrained and do not have the necessary skills; performance reviews are not based onagreed job criteria, and are not linked effectively to rewards, coaching and mentoring; learning and careerdevelopment opportunities; and finally, that insufficient collective data is collected on PMS to aid insubsequent HR planning.

Activity - Read article


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Read the following online article – ‘Follow this Golden Rule during performance reviews’,www.selectinternational.com/blog/follow-this-golden-rule-during-performance-reviews, S. Menendez

One author provides a concise framework to address the problems associated with performancemanagement system

1. Decide what to measure

2. Measure the right way

3. Use HR metrics systematically

4. Create a measurement-friendly culture

(Source: Hammer, M. 2007, ‘The seven deadly sins of performance measurement, and how to avoid them’,MIT Sloan Management Review , 48 (3): 19-28)

Career Development & Succession Plans

Ideally, employees’ career plans are based on performance review data, and personalised according toemployee expectations and outcomes; whilst succession plans – management and leadership developmentor replacement plans – are usually reserved for middle and senior managers. Both career development andsuccession plans require attention to individual and organisational needs; in terms of individual skills andaspirations on the one hand, and future organisational needs on the other. Support for employees’ careerdevelopment can include individual counselling, regular communication about possible job options in theorganisation, job re-skilling opportunities, mentoring and coaching programs.

Whether the organisation or the employee is primarily responsible for career development is a vexedquestion, but these days it is usually expected that employees have the major responsibility for determiningtheir own careers (either within or outside their current organisations), and that Millennials (in particular)prefer to do so, unlike previous generations of employees. Given the rise of the so-called ‘gig economy’ –the trend towards self-employment ‘careers’ based on casual jobs or short-term contracts rather thanpermanent employment in large organisations. According to one report, the most common examples of suchjobs are Uber and Lyft ride-sharing drivers, and Airbnb accommodation providers (see, for example,Leasca, S. 2017, ‘These are the highest-paying jobs in the gig economy’, Forbes, 17 July –www.forbes.com/sites/sleasca/2017/07/17/highest-paying-jobs-gig-economy-lyft-taskrabbit-airbnb/#3Oe487907664)




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http://www.selectinternational.com/blog/follow-this-golden-rule-during-performance-reviews

http://www.forbes.com/sites/sleasca/2017/07/17/highest-paying-jobs-gig-economy-lyft-taskrabbit-airbnb/#3Oe487907664)


Given the scope, nature and complexity of the HRM strategies, processes and functions discussed above,the roles, competencies and skills of HRM professionals (and middle and line managers), are crucial toensure the necessary alignment between organisational and HRM strategies, goals and objectives. Thefigure below (Figure 2), from the Australian Human Resource Institute’s Model of Excellence (based onglobal research), illustrates the multiple and inter-connected competencies required to effectively performstrategic and operational HRM in all organisations. The model is like the professional frameworks used bythe Society for Human Resource Management (SHRM – US) and its UK counterpart (Chartered Institute forPersonnel Development – CIPD).

Human Resource Management - An introductory overviewHRM Competencies


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(Source: www.ahri.com.au)

Like their counterparts in operations, marketing and finance, HRMprofessionals are required to demonstrate that their strategies, plans,processes and functions are cost-effective, provide value for money,and contribute to an organisation’s ongoing strategic goals andobjectives. After all, the costs of human resources to organisations canvary from 20-80 percent of the total budget, depending on the nature ofthe business – the more people required, and the higher the skills, thegreater are the costs to organisations. Strategic HRM theory demandsthat the overall benefits of, and specific returns on investment, in human resources be demonstrated. Thecontributions of HRM programs, processes and functions can be shown in several ways – both quantitativeand qualitative.

Quantitative measures may include HRM costing (for example, the actual costs of recruitment, training and


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http://www.ahri.com.au/

replacement programs); HR metrics and analytics (‘measurement standards and benchmarks thatdemonstrate how HRM contributes to desired organisational outcomes’ – for example, workforce ratios,unplanned employee turnover, labour: revenue ratios); or more specific measures (for example,absenteeism trends, accident and workers compensation rates and costs). Qualitative techniques assessemployee ‘engagement’ and ‘satisfaction’, and the overall health of an organisation’s culture. Methodsinclude employee morale and climate surveys and exit interviews. It is recommended that HRMprofessionals use both forms of evaluation to provide evidence of the effectiveness of their overallstrategies, as well as the cost-effectiveness of all their component programs and the satisfaction of theemployees whom they are responsible for managing. A regular HRM Audit can help to achieve thesedesirable aims, and to ensure the horizontal and vertical alignments required by strategic HRM theory andpractices illustrated in Figure 1 earlier in this companion document.

Kramar, R., Bartram, T., DeCieri, H. et al. 2017, Human Resource Management: Strategy, People,

Performance, 5th edn., Sydney: McGraw-Hill.

Nankervis, A., Baird, M., Coffey, J., Shields, J. 2017, Human Resource Management: Strategy & Practice,

9th edn., Melbourne: Cengage. {Important Note – this reference is available online through the RMIT library– click here to access}

Stone, R. 2013, Managing Human Resources, 4th edn., Brisbane: Wiley. {Important note – a request hasbeen made to the library to obtain this book to access online. To access other “Authoritative ebooks at yourfingertips” click here to access and here too and hit

then type in the search section Human Resource Management}.

Enter your search terms

Australian Human Resources Institute (AHRI): www.ahri.com.au

HRM magazine, Reports (‘Future of Work: Hopes and Fears’; ‘Talent Report’)

Chartered Institute for Personnel Development ** (CIPD, UK): www.cipd.com.uk

Fact Sheet (‘The HR Role-SHRM’); Podcast (‘HR Role in Business Partnerships’); Report (‘The Rise of

HR: Insights from 73 Thought Leaders’)

** This is an excellent resource

Society for Human Resource Management (SHRM): www.shrm.org

Resources & Tools – Behavioural competencies; Compensation; Diversity & Inclusion; Talent

Acquisition; Technology

World Federation of HRM (WFHRM): www.wfpma.com/publications

World Link Newsletter

References

Armstrong, M 2012, Armstrong's Handbook of Human Resource Management Practice, Kogan Page,London. {Important Note – this reference is available online through the RMIT library – click here to access}


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https://ebookcentral.proquest.com/lib/RMIT/detail.action?docID=4787773

https://ebookcentral.proquest.com/lib/rmit/search.action?query=managing+human+resources

http://www1.rmit.edu.au/browse;ID=lgqxifdcqvdgz

http://www.ahri.com.au

https://www.cipd.co.uk/about/who-we-are

http://www.shrm.org

http://www.wfpma.com/publications

https://ebookcentral.proquest.com/lib/rmit/detail.action?docID=457565

Chalmers, J. (2017) in Adams, P. {broadcaster}, P 2017. When robots come for your job. Late Night Live.Radio national Australian Broadcasting Commission Sydney 27 September 2017.http://www.abc.net.au/radionational/programs/latenightlive/when-the-robots-come/8992662

Drucker, P. 1998. Peter Drucker on the Profession of Management , Boston: Harvard Business ReviewPublishing.

Or

Drucker, P. 2011. Management an abridged and revised version of Management: Tasks, responsibilities,practices. London ; New York: Routledge. {Important Note – this reference is available online through theRMIT library – click here to access}

Metcalf, H.C., Urwick, L. (eds.), 1942, Dynamic Administration: The Collected Papers of Mary Parker Follett ,NY: Harper and Brothers Publishers. {Important Note – this reference is available online through the RMITlibrary – click here to access}

Hackman, J.R., Oldham, G.R. 1976, ‘Motivation through the design of work: Test of a theory’, OrganisationalBehavior and Human Performance, 16: 250-279. {Important Note – this reference is available online throughthe RMIT library – click here to access}

Herzberg, F. 1966, Work and the Nature of Man , Cleveland, OH: World Publishing.

Manyika, J., Chui, M., Miremadi, M., Bughin, J., George, K., Willmott, P., Dewhurst, M. (2017). A FutureThat Works: Automation, Employment, and Productivity McKinsey Global Institute (MGI McKinsey &Company New Jersey. Retrieved from https://www.mckinsey.com/global-themes/digital-disruption/harnessing-automation-for-a-future-that-works

Maslow, A.H. 1954, Motivation and personality, NY: Harper & Row.

Mintzberg, H. 1989, Mintzberg on Management: Inside our strange world of organisations , NY: Free Press.

Porter, M. 1985, Competitive Strategy, NY: Free Press.

Or

Porter, M. (2004). Competitive Strategy: Techniques for Analyzing Industries and Competitors. {ImportantNote – this reference is available online through the RMIT library – click here to access}

Taylor, F. 1911, Principles of Scientific Management , NY: Engineering and Management Press. {ImportantNote – this reference is available online through the RMIT library – click here to access}

This course provides an understanding of the key concepts of Human Resource Management (HRM),focusing on the Australian Human Resource Management arena and then connecting it to the differencesfrom around the world. You will be introduced to a broad view of Human Resource Management, coveringall main aspects of Human Resource Management in the Australian and global settings.

This course will cover:

The conceptual foundations of Human Resource Management.

Week 1: Foundations of human resource management and strategic humanresource management1.1 Introduction to this course


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http://www.jstor.org.ezproxy.lib.rmit.edu.au/stable/2549822?sid=primo&origin=crossref&seq=1#page_scan_tab_contents

https://scholar-google-com-au.ezproxy.lib.rmit.edu.au/scholar?hl=en&as_sdt=0%2C5&q=Motivation+through+the+design+of+work%3A+Test+of+a+theory&btnG=

https://www.mckinsey.com/global-themes/digital-disruption/harnessing-automation-for-a-future-that-works

https://sso-cas.rmit.edu.au/rmitcas/login?service=https%3A%2F%2Fsso-shibboleth.rmit.edu.au%2Fidp%2FAuthn%2FExtCas%3Fconversation%3De2s1&entityId=https%3A%2F%2Fprimo-direct-apac.hosted.exlibrisgroup.com%2Fprimo_library%2Flibweb%2FRMITU


The strategic significance and purpose of Human Resource Management activities and roles within an

organisation.

The effectiveness of different Human Resource Management models and frameworks.

The ethical and governance implications of emerging issues in Human Resource Management.

Throughout this course you will be invited to participate in discussions around Human ResourceManagement topics, review case studies, and apply your knowledge to current events and issues that areemerging in Human Resource Management.

What is Human Resource Management? Let’s start off by looking at a definition of Human ResourceManagement which simply states that Human Resource Management is:

"…the process of hiring and developing employees so that they become more valuable to the organisation(Guest, 1987; Wright and McMahan, 1992)."

This definition indicates that Human Resource Management is about enabling the employee to tap into andutilise their full potential.

Another definition of Human Resource Management is:

"…the process of managing human talents to achieve the organisations objectives (Haslinda, 2009)."

From this you can infer that Human Resource Management is about enhancing the talent of the individual toserve the interests of the organisation.

Week 1: Foundations of human resource management and strategic humanresource management1.2 What is HRM?


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Source: Shutterstock.

At Westpac, an Australian bank and financial services provider, Human Resource Management is focusedon strongly aligning its people around the organisational values, which include: one team, integrity,delighting customers, courage and achievement (Westpac, 2014). Image courtesy ChameleonsEye viaShutterstock.

At other organisations such as BHP Billiton and one of their sites, the Human Resource Managementstrategy is to attract and retain a skilled and competent workforce, whilst at the same time enabling theorganisation to prevent protected industrial action (BHP Billiton, 2011).

The Human Resource Management programs in these companies are significant because they encouragetheir employees to undergo continuous improvement in contrast to organisations a decade ago, which wouldnot focus on their employees’ skills but more on the employees’ production volume. Since theseorganisations are encouraging continuous improvement, their employees are always enhancing their skillsset and as a result, these organisations will not only experience higher levels of performance but theiremployees will also experience positive outcomes, too.

Human Resource Management can include the following functions:

Recruiting and selecting the right people

Training employees and assisting in reducing discrepancies in knowledge to successfully perform in a

job

Creating and supporting a good performance management system

Managing the opportunity for a good work/life balance for employees

Developing career paths and guiding employees through the steps to advance their careers

Creating a positive work environment through policies that embrace diversity and ethical behaviour.


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Human Resource Management in modern day organisations plays the role of helping employees feel likethey are an asset to their organisation and encourages them to enhance their skills. Furthermore,continuously empowering them and motivating them is essential.

Using policies and procedures and functions, Human Resource Management aims to help employees movefrom feeling like a “worker” to being an “asset” for the company. They take a softer touch approach. HRenables people to access their potential through training and development to help both the employees andthe organisation succeed. Human Resource Management is essential in organisations as it drives the needfor continuous improvement and positive outcomes.

Human Resource Management is seen as being significant, as it is an integral part of all organisations(Wright and McMahan, 1992). First the strategy of the organisation is decided, then it is the role of HumanResource Management to recruit, select, train and pay employees to achieve the strategic goals of theorganisation. Furthermore, Human Resource Management is significant because it has to be mutuallyaligned with the organisational strategy of the organisation.

Required readings

CIPD report (2016) HR Outlook, Winter 2015-2016, pp. 1-39.

Download the report here. CIPD Report 2016 HR Outlook, winter 2015-2016, pp. 1-39.pdf .

Westpac, 2014. Westpac’s Principles for doing business , pp. 1-13.

Download the report here. Westpac, 2014 Westpac’s Principles for doing business, pp. 1-13.pdf

BHP Biliton, (2011). Uranium projects: Olympic Dam Human Resource Management Plan , pp. 1-19.

Download the report here. BHP Biliton, 2011 Uranium projects OD Human Resource ManagementPlan.pdf

Haslinda, A. (2009) Evolving terms of Human Resource Management and development, The

International Journal of Social Research, Vol.2, Iss. 9, pp. 180-186.

Download the report here. Haslinda, A 2009 Evolving terms of Human Resource Management anddevelopment.pdf

Week 1: Foundations of human resource management and strategic humanresource management1.3 Why is human resource management important?

Required readings

Wright, P.M. and McMahan, G.C (1992), Theoretical perspectives for Strategic Human Resource

Management, Journal of Management , Vol. 18, No.2, pp. 295-320.

Jiang, K., and Lepak, D (2012), How does Human Resource Management influence organisational

outcomes? A Meta analytic investigation of mediating mechanisms, Academy of Management Journal ,


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https://rmit.instructure.com/courses/35220/files/2065924/download?verifier=AwcZmVjgKWx5yZ1nL1ub751mqkQZ7mqaAuUSrGuF&wrap=1

https://rmit.instructure.com/courses/35220/files/2065959/download?verifier=5MRmikTwmgz0Lmf0s8rGNkmma4yXHmSDYHQemm4X&wrap=1

https://sso-cas.rmit.edu.au/rmitcas/login?service=https%3a%2f%2flogin.ezproxy.lib.rmit.edu.au%2flogin%3fqurl%3dezp.2aHR0cDovL2R4LmRvaS5vcmcvMTAuMTE3Ny8wMTQ5MjA2MzkyMDE4MDAyMDU-

http://web.a.ebscohost.com.ezproxy.lib.rmit.edu.au/ehost/detail/detail?sid=e8f8796a-30b1-448e-b64d-4e21ead987e6%40sessionmgr4007&vid=0&hid=4109&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=84572883&db=bth

Human Resource Management has an interesting history as it evolved from the requirement oforganisations to centralise their personal administration and recruiting and staffing of their workers. Knownas Personnel Management, it was solely focused on managing workers’ pay. Workers were seen as cogs ina machine.

This type of practice was quite rigid and did not enable employees to enhance their skills, or feel empoweredor engaged at the organisational level. Furthermore, Personnel Management provided limited training totheir workers. While Personnel Management had no radical ambitions in the beginning, its role increasedover time.

Around 1997-1998 there was a transition from Personnel Management departments to Human ResourceManagement. In contrast to the worker having received limits skills enhancement, the employee began to beseen as an asset under the new Human Resource Management style. Organisations started investing intheir workers to get maximum output. This transition and idea stemmed from the LEAN manufacturingprocesses that arose in Japan during the 1970s, where quality was a goal and not quantity (Guest, 1987).

1.4 Discussion: Current perspectives on human resource management

1.4 Discussion: Introduction to strategic human resource management

Organisations, in order to adapt to their industry and to achieve a successful competitive advantage, choosetheir strategies based on a number of factors. These factors will influence which models of Strategic HumanResource Management they will implement.

Two models of Strategic Human Resource Management are: Porter's 3 Levels of Strategy, which is basedon the type of product or service they provide, and the Miles and Snow approach, which is based on how theorganisation responds to what their competitors and industry is doing.

Michael Porter's model talks about the three types of strategies organisations can adopt to achieve theircompany goals. It's comprised of three different strategy types, based on what type of product or service anorganisation provides.

Vol, 55, No. 6, pp. 1264-1294.

Week 1: Foundations of human resource management and strategic humanresource management1.4 History of human resource management

Week 1: Foundations of human resource management and strategic humanresource management1.4 Discussion: Current perspectives on human resource management

Week 1: Foundations of human resource management and strategic humanresource management1.4 Discussion: Introduction to strategic human resource management

Week 1: Foundations of human resource management and strategic humanresource management1.5 Strategy models


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The first of these three strategies is Innovation. Companies that provide innovative services need to stay atthe cutting edge of their industry. An example of this would be Toyota, one of the first car companies toproduce and market a hybrid car to the marketplace. Another example would be Apple, which influenced themodern cell phone technology through the introduction of the iPhone. These companies are constantlylooking at the next big thing and trying to stay on top of the marketplace. In order to do this, they encouragehigh participation from their employees to create and develop products. They also provide manyopportunities for employees to advance their careers, keeping their knowledge and skills within the companyin order for the organisation to benefit from it. Apple, for example, needs to consider how they can retain thestaff that they already have so that they take advantage of the knowledge already built up in their long-termemployees. Furthermore, it also needs to continuously train its workers so they can to contribute their newknowledge and assist in achieving the innovative strategy of the organisation.

The second strategy is Quality Enhancement. This strategy focuses on taking a current product andenhancing it. Examples of this include Nike or Mercedes Benz. These companies are not seeking to changethe product they offer, but instead seek out ways to improve the quality of their current product in order toentice buyers into choosing their product over another company's. With a quality strategy in place, Nikemakes a variety of choices in their organisation. One of these is how to go about training their employees,and a second is how to retain their talent so they can continue producing quality products and beating theircompetitors.

The third strategy is Cost Reduction. Organisations that choose this strategy are seeking to create the sameproduct at a lower price in order to compete in the market. Examples of this include Hyundai and Jetstar,who provide similar services to their competitors, but at a significantly discounted price. A company likeJetstar has many choices that they have to make. One of these is how to provide low cost services to theircustomers and keep them satisfied. This might involve implementing LEAN processes in their processes, orusing a lower cost uniform manufacturer. In addition, they must continuously try and implement new low costservices to customers and keep their profits at a maximum.

Figure 1.2 Porters 3 Levels of Strategy

INNOVATION STRATEGY QUALITY ENHANCEMENT COST REDUCTIONSTRATEGY

High participation High participation Low participation

Implicit job analysis Explicit job analysis Explicit job analysis

External sources Some external sources Mostly internal sources

Broad career path Narrow career paths Narrow career paths

Process and results criteria Mostly results criteria Results criteria

Long term criteria Mostly short-term criteria Short-term criteria

Same group criteria Same group criteria Mostly individual criteria


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Some employment security Some employment security Little employment security

Many incentives Some incentives Few incentives

Egalitarian pay Egalitarian pay Hierarchical pay

Co-operative labour-management relations

Co-operative labour-management relations

Traditional labour-management relations

Now let's talk a little bit about the Miles and Snow approach, which classifies organisations based on therate at which the companies change their products or markets. Their approach outlines that for organisationsto actually be successful they need to adopt certain generic strategies and be adaptive to their environment.There are four types in the model - Prospectors, Defenders, Reactors, and Analysers.

The first of these, Prospectors, extend their success through local expansion and finding new marketopportunities. An example of an organisation using this approach is Coca Cola. Part of their strategy is toencourage their employees to get more familiar with their local market's area, and adapt to their local culture.Furthermore, Coca Cola has to make strategic decisions on how to pay their local employees andexpatriates that would go to work at that particular subsidiary equally.

The second approach is Defender. Organisations that use defender strategies concentrate upon existingoperations and defending their home turf. An example of this is Ikea. Ikea is focused on achieving its overalllong term goals and using its headquarters values and processes in all the other countries that it operatesin. The component that makes Ikea unique is that it aims to communicate its beliefs and goals acrossborders to its other subsidiaries and takes into consideration the actions and strategies implemented by itscompetitors.

The third approach of reactor is to respond arbitrarily to strategic actions initiated by competitors andorganisations. Emirates airlines operate in a highly competitive environment and must respond to thestrategic actions their competitors make. Emirates airlines has as a primary emphasis on providing highquality customer service to their clients and ensuring that their clients reach their destination safely.

Finally, an example of an organisation that uses analyser strategies is H&M clothing stores. Analysers takea middle ground approach between that of Prospectors and Defenders. Their main strategy is serving theircustomers in the best possible way. H&M clothing has a firm belief that they are one team, and use thisunified approach in responding to the strategic actions undertaken by their competitors. While these twomodels will not address all the ways in which organisational strategy is applied, they are a good startingpoint for looking at how Human Resource Management decisions are made at an organisation.

Figure 1.3: Miles and Snow (1984) Approach to Strategic Human Resource Management

PROSPECTERS DEFENDERS REACTORS ANALYSERS

Extend their successthrough local expansionand finding new marketopportunities.

Concentrate uponexisting operationsand defending theirhome turfs.

Respond arbitrarilyto Strategicactions initiated bycompetitors.

Take a middle groundapproach betweenbeing prospectors anddefenders.


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1.6 Case study - Manufacturing company in Sydney

1.7 Hard vs. soft human resource management

1.8 High performance work systems

1.9 Motivations to be involved in strategic decision making

1.10 Discussion: Integrating human resource management function with the business

Take a moment to watch this video, which covers important information you will need in order to successfullyanalyse a case study.


Case studies are an important part of learning and can enhance your theoretical and practical knowledge. It

Week 1: Foundations of human resource management and strategic humanresource management1.6 Case study - Manufacturing company in Sydney

Week 1: Foundations of human resource management and strategic humanresource management1.7 Hard vs. soft human resource management

Week 1: Foundations of human resource management and strategic humanresource management1.8 High performance work systems

Week 1: Foundations of human resource management and strategic humanresource management1.9 Motivations to be involved in strategic decision making

Week 1: Foundations of human resource management and strategic humanresource management1.10 Discussion: Integrating human resource management function with the business

Week 1: Foundations of human resource management and strategic humanresource management1.11 Analysing case studies

How to analyse case studies

Week 1: Foundations of human resource management and strategic humanresource managementMind maps


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https://emedia.rmit.edu.au/learninglab/content/case-studies

is important to be clear and concise when answering questions from case studies and remember to alwayslink them back to the key issues in the case study.

It is also important to support your argument. A mind map will assist you in gaining a better understanding ofthe key components and issues in your case study and the relationships that do exist between them. Mindmaps are a way of visualising specific information. Moreover, a mind map also shows the relationship thatexists between certain variables or components.

Draw up a mind map of key ideas and theories relating to your assignment about the case study. Post whatyou find in your mind maps, and attach your mind map in the padlet.

How do I do that?

1. Click the pink plus button.

2. Type in the box that's created "Hi" and your name.

3. Attach your mind map either as a file, a photograph of your mind map, or even a video.

Week 1 has provided an introduction to Human Resource Management and has touched on its history,definition and significance. We’ve also touched on Human Resource Management in a strategic sense andhave examined two models – Porter’s Three Levels and the Miles and Snow approach. You’ve also had theopportunity to try your hand at a case study, as practice for your final assessment.

Human Resource Management is about enhancing the potential of the worker and ensuring that theirknowledge, skills and abilities are always valued at the managerial and at the organisational level. If this isachieved then, positive outcomes would occur such as higher levels of commitment, higher levels ofsatisfaction, empowerment and of course organisational performance. Week 2 will be focused on buildingHuman Resource Management information systems, Human Resource Planning and Recruiting andSelecting employees.

You should now be able to answer the following questions:

Why has Human Resource Management become so prominent in Australian organisations?

What is the difference between Personnel Management and Human Resource Management?

What are high performance work systems and why is it essential that they are interconnected?

Access more information about mind mapping .

Activity


Week 1: Foundations of human resource management and strategic humanresource management1.12 Week 1 summary

Recommended readings


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https://padlet.com?ref=embed

Guest, D. E (1987) Human Resource Management and industrial relations , Journal of Management

Studies, Vol. 24, Iss.5, pp. 503-521.

Bartram, T., Karimi, L., Leggat, S. and Stanton, P. (2014) Social identification: Linking high performance

work systems, psychological empowerment and patient care, International Journal of Human Resource

Management, Vol 25, Iss.17, pp. 2401-2419.

Kramar, R., Bartram., T., De Cieri, H., Noe, R., Hollenbeck, J.R., Gerhart, B. and Wright, P. (2014)

Human Resource Management: Strategy, People, Performance , 5th Edition, McGraw Hill.

Welcome to Week 2. This week we will be looking at building Human Resource Management systems.Human Resource Management systems are an essential part of any organisation, as they strengthen thefoundations of the organisation and facilitate their success. We will also cover how strategy and recruitmentare strongly embedded into the HRM system to enable higher levels of performance.

Human Resource Management information systems are used to enable successful recruiting and selectingof employees. Recruiting can be seen as any sort of practice or activity that is carried on by an organisationwhich has as the sole purpose to identify and attract potential workers into the corporation. If organisationsbuild strong Human Resource Management systems, they experience higher levels of performance andemployment satisfaction. In this week you will have the opportunity to explore how Google recruits andselects their employees and how that affects their organisation.

Upon completion of this week you should have an understanding of how Human Resource Managementsystems are built in both the Australian and international settings. You will also gain an understanding of howHuman Resource information systems can assist organisations to successfully recruit and select theirworkers.

In order for organisations to know what kind of employee to hire, and what skills they need to be successful,there must first be an analysis done on the work they will be doing. This section will focus on the analysisand design of work.

Job analysis is the process that organisations undertake to identify and determine in detail what type ofknowledge, skills, and abilities are needed, so they can advertise particular jobs internally or externally. Itmay entail looking at data that has been collected on the job, such as production output in manufacturing, orcall time for a call centre. The need for organisations to conduct job analysis has arisen out of the need forboth organisations and Human Resource Management staff to study the work activities and personalattributes that are needed. These are then linked to the organisational strategy.

Line managers play a vital role in job analysis in organisations. It is their primary responsibility to ensure thatthey provide continuous feedback to senior management about how employees are performing, as well as

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.1 Introduction to week 2

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https://login.ezproxy.lib.rmit.edu.au/login?url=http://www.tandfonline.com/doi/full/10.1080/09585192.2014.880152

directly to employees who need to improve their performance.

Job analysis has to be clearly linked back to the strategic orientation of an organisation, if it is to besuccessful. A successful job analysis has to be clear and concise in describing what the future employee willbe expected to do. If a job analysis does not fall into these categories, it will not achieve its aim of hiring theright people to do the right job at the right time and place (Australian Human Rights Commission, 2013). Anorganisation that does not undertake an efficient and effective job analysis will not experience superiorperformance (Department of Planning and Community Development, 2012).

2.2 Activity: Job analysis process

2.2 Activity: Importance of job analysis and job design

Now that you’ve observed the importance of analysis and design of work, let’s look at the relationshipbetween the uniqueness of job skills and the strategic value of employees, as see in Figure 2.1. Thisparticular Human Resource Management model looks at the types of human capital that can exist inorganisations, and how these can be used strategically to determine the type of work that will be needed in aparticular organisation.

This particular Human Resource Management model assists organisations in determining the type of HRarchitecture for them in order to create knowledge, skills and abilities for their potential employees that otherorganisations won’t be able to imitate. It also helps determine what kind of work contracts might beappropriate in their organisation.

This particular model is useful as it outlines the types of employment and its level of uniqueness. It isimportant to note that each quadrant has its own Human Resource Management configuration. For example,a mining company that is willing to open operations in Botswana would probably use thealliances/partnerships collaborative-based HR configuration, as shown in Quadrant 4. Creating a partnership

Required readings

AHRI Pulse Survey (2015) Anytime, anywhere work, Australian Human Resources Institute, pp. 1-29.

Morgeson, F.P., and Dierdoff, E.C. (2011) Work analysis: From technique to Theory , in APA Handbook

of Industrial and Organisational Psychology, Volume 2, Selecting and Developing Members for the

Organisation, pp. 1-42.

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.2 Activity: Job analysis process

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.2 Activity: Importance of job analysis and job design

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.3 HR configuration quadrant


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https://www.ahri.com.au/__data/assets/pdf_file/0016/39004/PULSE_Anytime-anywhere-work.pdf

https://msu.edu/~morgeson/morgeson_dierdorff_2011.pdf



with a particular company that already has their operations in Botswana would decrease the amount of costsand risks involved and enable them to achieve maximum profit. Other examples include:

Quadrant 1 (knowledge-based employment) - an application development company such as Facebook

Quadrant 2 (job-based employment) - customer service-focused organisations such as McDonald's

Quadrant 3 (contractual work arrangements) – organisations with many temporary needs, such as

farmers who need fruit pickers, or online retailers who need to increase packers over holiday periods for

high sales times.

Quadrant 4 (alliances/partnerships) – organisations with needs for joint venture, such as mining

companies partly purchasing operations in another mine.

Figure 2.1.

2.3 Activity: Create your own job description

2.3 Activity: Human resource planning

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.3 Activity: Create your own job description

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2.3 Activity: Case study - Holden

Human Resource planning processes can be enhanced through the use of Human Resource InformationSystems (HRIS). A Human Resource planning process relies on valuable and valid information. Thisinformation can be accessed through the HRIS. These systems provide Human Resource personnel accessto information concerning their employees and any potential staff shortages or surpluses. HRIS can supportHuman Resource Management activities in various ways. For example, HRIS may support strategicplanning by providing information from an employee demand and supply forecast.

HRIS are systems and processes that enable an organisation to obtain a competitive advantage in theworkplace. In most large organisations, HRIS provide the necessary data tracking so the whole function ofHuman Resource Management can be supported. Organisations have established the need for HRIS inresponse to the development of increasingly complex information technology systems used throughout thecompany.

Another reason HRIS is so popular is the rise of economic pressures both in the Australian and in theinternational setting. There has also been an increasing demand by governments for organisations to collectdata on the people they hire.

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.3 Activity: Case study - Holden

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.4 Human resource information systems and their importance

Required readings

Florence, L. and Guillox, V (2010) HRIS impacts implementation in a SME: a contextualist longitudinal-

al case study, in Evidence-Based e-HRM? On the way to rigorous and relevant research, Proceedings

of the Third European Academic Workshop on electronic Human Resource Management, Bamberg,

Germany, May 20-21, 2010.

Chapter 3 Bedell, M.D, Canniff, M. and Wyrick, C. (2009) Systems design in the consideration of a

HRIS: Planning for implementation, in Kavanagh, Michael J & Thite, Mohan (eds) Human Resource

information systems: basics, applications and future directions, Thousand Oaks, Calif. : Sage, pp. 45-

76. ILL number 2299964 and hold placed on 2008/9 1st ed.

Gupta, B. (2013) Human Resource Information System (HRIS): Important Element of Current Scenario ,

IQSR Journal of Business Management , Volume 13, Issue 6, pp. 41-46.

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.4 Activity: Benefits and challenges of implementing a new human resource informationsystem


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http://ceur-ws.org/Vol-570/570-complete.pdf

http://iosrjournals.org/iosr-jbm/papers/Vol13-issue6/G01364146.pdf?id=7894

2.4 Activity: Benefits and challenges of implementing a new human resource information system

We’ve covered Human Resource planning and the systems used to support that planning. Organisationsuse these to determine how many and what kind of employees will be needed and how difficult to obtainthem they will be. This naturally feeds into the recruitment and selection process. Recruitment and selectionprocess is a practice or particular activity that is carried out by an organisation with an aim of identifying andattracting potential workers to the organisation. Recruitment activities aim to affect the number of peoplewho apply for vacancies in organisations and the type of people who apply for them.

Recruitment activities try to affect:

The number of people who will actually apply for the vacancies

The type of people who will decide to apply for them, and

The likelihood that those applying for the vacancies will actually accept the positions that they have

been offered.

The goal of recruiting is not to simply generate a large number of applicants. If the organisation gathers apool of applicants that aren’t fit for the positions they will incur expenses without any direct value.

Organisations recruit from many sources. Some of these are:

Internal or external job boards

Direct applicants, referrals, and alumni

Advertisements

Internet recruitment

Public employment agencies

Private employment agencies

Universities.

Let’s look at an example, the Australian Red Cross. The Australian Red Cross is committed to recruiting andselecting the best people available for staff and volunteer positions. In this not-for-profit organisation,selection decisions are made on the basis of merit. Their organisational principles of equity, fairness, andtransparency apply in all recruitment and selection processes (Australia Red Cross Recruitment andSelection policy, 2015). The Australian Red Cross uses a range of recruitment methods, especially externalrecruiting and internet recruitment methods to ensure they attract the right people into the organisation. Theyaim to recruit people that would fit into a not-for-profit setting, in contrast to a university that would aim toattract people that have the right academic qualifications and experience. Furthermore, universities alsospecifically aim to recruit people internally, as they already have knowledge of the culture,policies/processes, and procedures.

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.5 Introduction to recruitment and selection

Required readings


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2.5 Activity: Interviews

2.8 Activity: Employee selection methods

This week has focused on recruiting and selecting, Human Resource planning, and Human ResourceInformation Systems. It is essential in modern day organisations for these three areas of Human ResourceManagement to be successfully integrated with the strategy of the organisation. It is important to rememberthat on organisation’s strategy is dependent on context and industry, as outlined by Michael Porter. HumanResource Management strategy is also dependent on context. Therefore, it is important to have a strategyand Human Resource Management objectives that are flexible and adaptive.

As you saw with the Holden case, Human Resource planning is incredibly important. Various HR expertshave expressed concern about the amount of people that will lose their jobs, and how the economy will beaffected. We have seen the how competitive the industry has become and what recruiters look for whentrying to choose potential employees. Human Resource Management issues are forever prominent andorganisations have to continuously find ways of training their staff to overcome them. As a result, HumanResource managers have to constantly come up with strategies to assist the organisation in overcoming theconcerns that may arise.

See if you can answer the following questions whose answers were covered in Week 2:

1. What is Human Resource planning and what are the steps involved?

2. Discuss the advantages and disadvantages of Human Resource information systems.

Australian Red Cross Recruitment Process refer https://www.redcross.org.au/careers-recruitment-

process

COMMUNITY CHILD CARE - RECRUITING STAFF: Referee checks -

Refer https://www.cccinc.org.au/docs/resource-sheet_recruiting-staff-referee-checks.pdf

How to hire great managers for your not-for-profit (2018) - refer https://nfppeople.com.au/2018/01/how-

to-hire-great-managers-for-your-not-for-profit/

AHRI: Assist (2013) HR Profession Information Sheet: The Role of an HR Professional in an Australian

Organisation, pp. 1-2.

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.5 Activity: Interviews

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.8 Activity: Employee selection methods

Week 2: Building HRM systems, HRIS, and recruiting and selecting employees2.9 Week 2 summary


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https://www.redcross.org.au/careers-recruitment-process

https://www.cccinc.org.au/docs/resource-sheet_recruiting-staff-referee-checks.pdf

https://nfppeople.com.au/2018/01/how-to-hire-great-managers-for-your-not-for-profit/

https://www.ahri.com.au/assist/the-hr-profession



3. What are three types of recruiting strategies organisations may want to use?

Welcome to Week 3. This week we will be talking about three major areas in Human Resourcemanagement: employment relations, managing diversity, and work/life balance.

Employment relations focuses on the whole employment relationship between employee and employer.Employment relations examines the relationships, models, and theories that are driving the workingconditions. According to Apple Report (2015), employment relations have become a critical asset forStrategic Human Resource management and are thoroughly influenced by the level of unionisation of eachindustry.

Another important issue that we will examine is managing workforce diversity. In Australia, the concept ofdiversity is not just defined by race or gender, but encompasses all groups where discrimination could comeinto play, including: the age of an individual, their personal and corporate background, the education theperson has received, their function, and personality. It also includes lifestyle, sexual preference, geographicorigin, tenure with the organisation, exempt or non-exempt status, and whether one is management or non-management.

Lastly, we will look at the concept of work/life balance and how it has effected organisations. Work/lifebalance, in its broadest sense, is defined as a satisfactory level of involvement or ‘fit’ between the multipleroles in a person’s life. Although definitions and explanations vary, work/life balance is generally associatedwith equilibrium, or maintaining an overall sense of harmony in life (Allen, 2001). Australian and NewZealand organisations are increasingly considering the benefits of ensuring their employees achievework/life balance. The subject of how work/life balance can be achieved and enhanced has receivedsignificant attention from employers, workers, politicians, academics, and the media, both in the Australianand international setting.

3.1 Activity: Introduction to employment relations

The issue of the employment relationship has become a phenomenon around the world, including inAustralia. The protection of workers has become limited; therefore, various international organisations suchas the International Labour Organisation have raised concern about this. It is through the employmentrelationship, however defined, that reciprocal privileges and responsibilities are created between theemployee and the employer. It has been, and continues to be, the main way through which workers gainaccess to the rights and benefits associated with employment in the areas of Labour law and SocialSecurity. The existence of an employment relationship is the condition that determines the application of theLabour and Social Security law provisions for employees. It is the key point of reference for determining the

Week 3: Employment relations and work/life balance3.1 Introduction to week 3

Week 3: Employment relations and work/life balance3.1 Activity: Introduction to employment relations

Week 3: Employment relations and work/life balance3.2 Fair Work Act (2009)


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nature and extent of employers' rights and obligations towards their workers.

One major piece of employment relations legislation that was introduced, and is still enacted, is the FairWork Act 2009. The Fair Work Act 2009 governs the employee/employer relationship in Australia. Itprovides a safety net of minimum entitlements to employees, enables flexible working arrangements,provides for fairness at work, and prevents discrimination against employees.

3.2 Activity: Employment relations legislation in the Australian setting

3.2 Activity: National employment standards

3.2 Activity: Employment relationship future challenges

Video

Watch this video about the Fair Work Act (2009) to gain a better understanding of this important piece ofemployment legislation in Australia.

The Fair Work Commission has found the supermarket chain Coles has underpaid possibly thousands of itsworkers. (ABC News, 2016)

Required readings

Laval, F and Guilloux, V (2010) HRIS impacts implementation in a SME: a contextualist longitudinal

case study, CEUR Workshop Proceedings, pp. 410-425. http://ceur-ws.org/Vol-570/paper024.pdf

Peetz, D. (2015) Are Australian trade unions part of the solution, or part of the problem?, Australian

Review, pp. 1-11. http://www.australianreview.net/digest/2015/02/peetz.html

Apple Company (2015) Supplier Responsibility Report, pp. 1-42. https://www.apple.com/au/supplier-

responsibility/pdf/Apple_SR_2015_Progress_Report.pdf

Week 3: Employment relations and work/life balance3.2 Activity: Employment relations legislation in the Australian setting

Week 3: Employment relations and work/life balance3.2 Activity: National employment standards

Week 3: Employment relations and work/life balance3.2 Activity: Employment relationship future challenges

Week 3: Employment relations and work/life balance3.3 Introduction to work/life balance programs


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http://search.informit.com.au.ezproxy.lib.rmit.edu.au/documentSummary;res=TVNEWS;dn=TSM201605310110

http://ceur-ws.org/Vol-570/paper024.pdf

http://www.australianreview.net/digest/2015/02/peetz.html

https://www.apple.com/au/supplier-responsibility/pdf/Apple_SR_2015_Progress_Report.pdf




According to Hudson (2015), the benefit of introducing a Work/Life Balance program is that it recognises theimpact of the needs of other family members and dependents on the employee, and program offerings suchas leave arrangements enable employees to have flexibility to handle family, personal, and communitymatters. A Work/Life Balance program must include flexibility to come work to late if they have children, andgive staff the ability to work from home.

Additional features of a Work/Life Balance program include giving employees greater flexibility in theircareer choices and options, acknowledging the interaction between work, family, and other life interests, andenables tensions around this to be discussed and managed. Different employees will have different needsassociated with Work/Life Balance programs, so flexibility is key (Hudson, 2015).

According to Hudson (2005) work/life balance is an issue that has been of concern to organisations.Australian organisations have come to the conclusion that for their employees to perform well, they mustenable their workers to achieve a good balance between their home commitments and their responsibilitieswithin the organisation. However, it is important to note that despite an apparently widespread commitmentto the principles of work/life balance, the reality for many employees is not always consistent with therhetoric.

3.3 Activity: Case study - Work/life balance

3.3 Activity: The importance of work/life balance

3.3 Activity: Reflective questions

Three main topics were covered this week:

Required readings

Hudson (2005) The Case for Work/Life Balance: Closing the Gap Between Policy and Practice (20:20

Series), pp. 1-39.

Week 3: Employment relations and work/life balance3.3 Activity: Case study - Work/life balance

Week 3: Employment relations and work/life balance3.3 Activity: The importance of work/life balance

Week 3: Employment relations and work/life balance3.3 Activity: Reflective questions

Week 3: Employment relations and work/life balanceWeek 3 summary


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http://au.hudson.com/Portals/AU/documents/Hudson2020_Work-Life.pdf




Employment relations

Employment relations, as a concept, are essential for all workers to understand, as it encompasses all theirrights and protection as people who are part of the organisation. The Fair Work Act (2009), the WorkChoices Act (2005) and the Workplace Relations Act (1996) were all main pieces of Employment Relationslegislation that were enacted by parliament.

Managing Diversity

It is important to emphasise that attention must be paid to managing workforce diversity and managementmust continue to understand diversity and how its policies and procedures can impact on the decisions theyactually make. If managers want to be successful they must also demonstrate the value and business caseof diversity management initiatives.

Work life balance

Furthermore, work/life balance is a component that must be well integrated into organisations, if they wanttheir employees less stressed and fatigued and more committed to their workplaces. These three concepts:employment relations; managing diversity and work/life balance, will assist us to better understand howHuman Resource management works and how it is influenced by these three components.

Organisations are stronger with a diverse workforce. Human Resource management must serve the needsof the organisation and also follow all the legislation that has been put into place to help create a diverseworkplace, including equal employment opportunities laws. As a result, HR management needs to ensurediversity is included in the planning for activities such as recruitment and employee relations.

Welcome to Week 4. This week’s topics continue to cover key areas of the Employment Lifecycle –Performance Management, Learning and Development, and Employee Development and CareerManagement.

As you know, employee performance is intrinsically linked to firm performance because it forms part of acompetitive advantage that is difficult to imitate. Therefore, managing this as a strategic asset is important inorder for competitive advantage to be sustained. These three topics are linked in that they inform oneanother as human resources are managed.

Moving on from performance management, we will also look at learning and development. Learning anddevelopment is essential in today’s organisations to ensure employees are continuously being upskilled inorder for their potential to be realised, and so the organisation can perform to a higher standard.Performance management is a crucial area in organisations, where the performance level of workers ismeasured and appraised. In addition, employee development and career management can provideimprovements in employee commitment and retention.

This week you will learn about:

The performance management system and the three aims of performance management

The approaches to performance management measurement

Week 4: Performance management, learning and development, employeedevelopment, and career management4.1 Introduction to week 4


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Effective performance management systems

Developing a performance management system

Learning and development

Creating a learning environment

How learning and development is linked to organisational strategy

Employee’s readiness for training

Training methods and evaluation

Developmental approaches to career development

Current development in career management and employee development

Key items in the design of a career management system.

If you think of this as a continuous circle as shown in Figure 4.1, you can start to understand how theseelements are linked.

4.1 Activity: The performance management system and the three aims of performance management

Week 4: Performance management, learning and development, employeedevelopment, and career management4.1 Activity: The performance management system and the three aims of performance

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4.1 Activity: The approach to performance management measurement

4.1 Activity: What makes performance management systems effective?

Table 4.1 outlines the categories of fairness that should be considered when developing a performancemanagement system and how these can be used effectively.

FAIRNESSCATEGORY

IMPORTANCE FORPERFORMANCE MANAGEMENTSYSTEM

IMPLICATIONS

Proceduralfairness Development * Gives managers and employees opportunity

to participate in development of system

* Ensures consistent standards whenevaluating different employees

* Minimises rating errors and biases

Interpersonalfairness Use * Provides timely and complete feedback

* Allows employees to challenge theevaluation

* Provides feedback in an atmosphere ofrespect and courtesy

Outcomefairness Outcomes * Communicates expectations regarding

performance evaluations and standards

* Communicates expectations regardingrewards

Contemporary approaches to Performance Management are outlined in the Accenture article in this week’sreadings. Note that this article discusses real time feedback which mirrors a more modern approach to

development, and career management4.1 Activity: The approach to performance management measurement

Week 4: Performance management, learning and development, employeedevelopment, and career management4.1 Activity: What makes performance management systems effective?

Week 4: Performance management, learning and development, employeedevelopment, and career management4.2 Other contributing factors to a performance management system


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information gathering and immediacy of information. There is a coaching focus to the review rather than apunitive feedback focus and early indications are that organisations are adopting these principles.

Using the table above as a guide, and taking the reading into account, watch this video for an excellentexplanation of the changes that have been made.


4.2 Activity: Develop a performance management system

In this section, we will be talking about Learning and Development in organisations. There are manydifferent ways that employees are developed in Australian organisations including induction, on the jobtraining, internal and external courses and workshops, compliance training, supported external study,coaching, and mentoring.

Source: Shuttershock.

An organisation and its employees have a responsibility to ensure that the appropriate skills and knowledgeexist to fulfill the organisation's strategic and operational objectives. This has obvious implications for

Week 4: Performance management, learning and development, employeedevelopment, and career management4.2 Activity: Develop a performance management system

Week 4: Performance management, learning and development, employeedevelopment, and career management4.3 Introduction to learning and development


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recruitment, but it also entails a commitment to learning and development by the organisation and theemployee to ensure that skills and knowledge are maintained and developed to ensure ongoingcompetitiveness and adaptability. Learning and Development, or as it is commonly referred to, Training andDevelopment, or Human Resource Development, encompasses a range of on-the-job and off-the-jobmethods for acquiring necessary knowledge, skills and behaviours. Learning and Development has to bemutually reinforcing with the organisational strategy.

Learning and Development forms part of the Employment Lifecycle and is a key element of employeeengagement, commitment, and capability in organisations. Learning and Development activities, as with allactivities in Human Resource Management, should support the strategic priorities of the firm and be able todemonstrate return on investment for its stakeholders, workers and customers.

Human Resource Strategy aims to address issues where there are employee/skills shortage/surplus, or toretain employees where there are adequate resources. In the case of a skills shortage, Learning andDevelopment can be essential in ensuring the future viability of the firm through upskilling. In the case of askills surplus, Learning and Development can be instrumental in assisting employees to become suitable forredeployment, and in the case of adequate resources, Learning and Development ensures competitiveadvantage is maintained because human capability can be difficult to imitate; as well as enabling retentionthrough career development.

Human Resource Development embraces all types of development – organisational, individual and career.This module focuses on Learning and Development for individuals.

Learning and Development is undertaken to increase employee knowledge and skills and/or to enhanceattitudes and behaviours. This in turn benefits the organisation by creating competitive advantage throughits people, ensuring that employees are effective and productive, and ensures employment security becauseemployees contribute to the company in new ways.

4.3 Activity: Creating a learning environment

4.3 Activity: How learning and development is linked to organisational strategy

Required readings

Future Think (2009) The Future of Learning & Development: Trends, Topics & Tools to Stay Ahead of

the Curve, pp. 1-20.

Australian Institute of Management, (2013), Learning & Development in the public sector: The case for

maintaining investment in the tough times, discussion paper, pp. 1-25.

Week 4: Performance management, learning and development, employeedevelopment, and career management4.3 Activity: Creating a learning environment

Week 4: Performance management, learning and development, employeedevelopment, and career management4.3 Activity: How learning and development is linked to organisational strategy


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https://cdns3.trainingindustry.com/media/2462010/futurethink-future of learning and development.pdf

https://managersandleaders.com.au/wp-content/uploads/2016/12/AIM-Research-Learning-Development-Public-Sector.pdf



4.3 Activity: Employee readiness for training

4.3 Activity: Training methods and evaluation

This section focuses on employee or human resource development and specifically, the types of activitiesthat organisations typically focus on in the area of career management.

We know that human resource development embraces all types of development including organisational andindividual. We discussed Learning and Development in the section above which is a sub-set of humanresource development. Career management is another sub-set of human resource development and onceagain the focus is on organisational performance as an outcome. Often career management also results incommitment, empowerment and engagement from employees.

Contemporary Human Resource Management approaches to career management place a clear focus onthe employee driving their career, as well as a respect for employees who do not have the same needs ordesires for careers. Career development and its link to succession planning are key human resourcemanagement focus areas for any organisation.

Figure 4.4 is a view of the Employment Lifecycle. This diagram depicts human resource management areasthat almost every employee will experience during their employment. The employee enters the organisationtypically through attraction, selection and hires (the recruitment process). Most employees will experienceinduction which is designed to offer an introduction to the company, people and processes. In Australia,probationary periods are very common, and this is typically a time in which both parties to the employmentrelationship (employee and employer) appraise whether ongoing employment is desirable. As we havediscussed this week, most employees will experience Performance assessment, Learning and Developmentand Career and Succession and Career planning though it should be noted that these are to varyingdegrees in all companies.

Week 4: Performance management, learning and development, employeedevelopment, and career management4.3 Activity: Employee readiness for training

Week 4: Performance management, learning and development, employeedevelopment, and career management4.3 Activity: Training methods and evaluation

Week 4: Performance management, learning and development, employeedevelopment, and career management4.4 Introduction to employee development and career management


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Figure 4.4 Employment Lifecycle.

Towers Watson (2014) Perspectives: Career Management, making it work for employees and employers ,pp. 1-8.

4.4 Activity: Developmental approaches to career development

4.4 Activity: Career development research

Required reading

Week 4: Performance management, learning and development, employeedevelopment, and career management4.4 Activity: Developmental approaches to career development

Week 4: Performance management, learning and development, employeedevelopment, and career management4.4 Activity: Career development research

Week 4: Performance management, learning and development, employeedevelopment, and career management4.5 Case study - IBM

The case of IBM in building its human capital


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https://www.towerswatson.com/en-AU/Insights/IC-Types/Ad-hoc-Point-of-View/Perspectives/2014/career-management-making-it-work-for-employees-and-employers



Source: Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck, J., Gerhart, B. and Wright, P.M (2014)Human Resource Management, Strategy, people and performance , 5th Edition, McGraw Hill.

This case study reviews IBM’s development and succession planning for executive positions. It is interestingthat it has a 70-20-10 model, focusing 70 per cent on on-the-job experience, 20 per cent on mentoring and10 per cent on formal training. There is a strong focus on building skills; most of these will be learnedthrough job experiences. The use of mentors helps shape the career experiences and guides people in theirdevelopment. Formal learning is an essential part of the process, and hopefully mentors help guide this partof the learning as well, to integrate it into a holistic approach.

The principles that IBM uses complement the process, and give an idea as to how IBM implements itsdevelopment activities for succession planning. The principles focus on people as individuals and managingpeople resources effectively, management accountability, continuous development opportunities formanagers and mentoring. The integration of these principles into core learning for future leaders will helpbuild the future capability of the organisation.

Succession planning has quite a long history since its establishment as a system to help organisations bemore effective in retaining and growing the knowledge, skills, abilities and core values of its employees.Inevitably, key employees will retire or decide to leave; having candidates ready to move into their roles isbeneficial to the organisation.

Why is succession planning so important for contemporary business organisations?

Succession planning is undertaken in organisations to ensure that they can transition in the future in aninformed and systematic manner, including filling key positions with suitably skilled, developed andexperienced internal high-performers.

If a transition period is seriously interrupted, fractured or haphazardly managed due to poor or absentsuccession planning practices, the implications for organisational goal accomplishment can be significant.

Effective succession planning is particularly crucial for key or senior positions, as an organisation cannotafford to allow these to remain unoccupied.

4.5 Activity: Current developments in employee development and career management

As represented in Figure 4.4, there are several ways in which employees may gain further skill andknowledge within their organisation. Often the success of job experiences is dependent on the culture of theorganisation, the strategy it is pursuing, and the management style.

Week 4: Performance management, learning and development, employeedevelopment, and career management4.5 Activity: Current developments in employee development and career management

Week 4: Performance management, learning and development, employeedevelopment, and career management4.6 Job experiences


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Figure 4.4 Employee skills expansion options (Source: Kramar, R., Bartram, T., De Cieri, H., Noe, R.,Hollenbeck, J., Gerhart, B. and Wright, P.M (2014) Human Resource Management, Strategy, people and

performance, 5th Edition, McGraw Hill).

The development of formal and informal interpersonal relationships between a more experienced, moresenior or more knowledgeable employee and a less experienced or knowledgeable employee is known asmentoring.

Organisations may put in place processes for formal or informal mentoring. Often if the processes areformal, the organisation will assess the need for the mentor and mentee (as both are developed in theprocess), facilitate the interaction between the parties, and expect organisational outcomes. Mentoring istypically a one-to-one relationship and is not task or time bound.

How does coaching differ from mentoring?

A coach is anyone from the organisation who works with an employee and is able to assist with skillsdevelopment, reinforcement and feedback. Coaching can be a one-to-many relationship and is typically taskand time bound. Coaching may take on three different roles:

One-on-one with an employee, which includes giving them feedback

Help employees learn for themselves, which involves helping them find experts who can assist them

with their concerns, and teaching them how to obtain feedback from others

Providing resources, such as mentors, courses or job experiences that the employee may not be able to

Week 4: Performance management, learning and development, employeedevelopment, and career management4.7 Mentoring and Coaching


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gain access to without the coach’s help.

Coaching can help employee performance because if effectively undertaken it should improve anemployee’s confidence, morale, motivation, self-esteem and their knowledge and skills. As long as the useof a coach is linked to the corporate objectives this should see improved performance.

4.7 Activity: Case study - Mentoring

As with most systems, the Career Management system includes inputs, processing and outputs. Both themanagers and the employees are jointly accountable for all stages. The major stages are:

Self-assessment – the identification of strengths, weaknesses, interests and values

Reality check – the current performance of the employee and where the employee fits in to the long

term plan for the organisation

Goal setting – the setting of appropriate and challenging goals with a commitment to support

Action planning – identifying and influencing the resources required such as training, experiences, and

relationships.

If these steps are implemented and followed, effectiveness is more likely because the actions are linked to abusiness need, all parties are engaged and invested in the process, regular feedback and evaluation isencouraged and there are links to other human resource practices in the employment lifecycle.

As we know, employee performance is intrinsically linked to organisational performance because it formspart of a competitive advantage that is difficult to imitate. Therefore, managing this as a strategic asset isimportant in order for competitive advantage to be sustained. These three topics are linked in that theyinform one another as human resources are managed.

How Performance Management is linked to Employment Relations

Performance management is linked to employment relations because the inputs, process and outputs canbe used to provide a defensible position in the event of an unfair dismissal claim and as evidence in otherjurisdictions such as for Equal Employment Opportunity. Where procedural fairness and substantivejustification are required in jurisdictions such as the Fair Work Commission, documenting poor performanceand showing that employees were informed of decisions that relate to them is critical.

Week 4: Performance management, learning and development, employeedevelopment, and career management4.7 Activity: Case study - Mentoring

Week 4: Performance management, learning and development, employeedevelopment, and career management4.8 Key items in the design of a career management system

Week 4: Performance management, learning and development, employeedevelopment, and career management4.9 Week 4 summary


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Current human resource management approaches to career management place a clear focus on theemployee driving their career, as well as a respect for employees who do not have the same needs ordesires for careers as the others. Career development and its link to succession planning are key humanresource management focus areas for any organisation. In conclusion, more and more organisations havean expectation that employees will be self-managing and self-aware. Those that flourish in today’senvironment are typically self-directed in their careers and therefore the performance of an organisation willbe enhanced.

Welcome to Week 5, where our topic is Rewards. Today we will focus on two main areas – managingcompensation and performance related pay. Human Resources professionals may choose to specialise inthis practice area and many larger multi-national organisations employ specialist compensation experts.

The introduction and overview provided to this topic is provided for Human Resource Management at ageneralist level. Compensation and reward is important because it has a fundamental effect on motivation,commitment and often discretionary effort for employees. Equity theory suggests that social comparisonsare an important part of employees evaluating pay. Employees make comparisons about their pay with otheremployees inside and outside the organisation on what they perceive to be fair, and this in turn affectsmotivation.

In this section, compensation, reward, salary and pay all refer to the payment that employees receive fromorganisations in return for performance.

This week will cover:

The major decision areas and concepts in compensation management

The administrative tools required to manage compensation

Controversial issues to do with executive pay

The regulatory framework for pay in Australia

The theories that impact performance-related rewards

Different types of performance-related reward programs

How a balanced scorecard and company performance can influence incentive plans.

5.1 Activity: Administrative tools required to manage compensation

5.1 Activity: Controversial issues to do with executive pay

Week 5: Rewards5.1 Introduction to week 5

Week 5: Rewards5.1 Activity: Administrative tools required to manage compensation

Week 5: Rewards5.1 Activity: Controversial issues to do with executive pay


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5.1 Activity: The regulatory framework for pay in Australia

In this section, we will explore programs that reward employees for their contribution to organisationalsuccess – commonly referred to as performance-related pay. Performance-related pay programs may bedeveloped at an individual, team or group, or organisation-wide level. Most organisations that implementperformance-related pay aim to reward individuals for both individual and organisational contributions. In thisway, performance-related pay is linked to company performance and is therefore strategically reinforcing.

5.2 Activity: Theories that impact performance-related rewards

5.2 Activity: Different types of performance-related reward programs

5.2 Activity: How a balanced scorecard and company performance can influence incentive plans

Week 5: Rewards5.1 Activity: The regulatory framework for pay in Australia

Week 5: Rewards5.2 Introduction to performance related pay

Required readings

Glennis Hanley & Loan Nguyen, Monash University (2003) The dash for cash: Performance related pay

– An Australian Union Perspective, Working Paper, pages 2-11, pp. 1-11.

By Lisa A. Burke, Ph.D., SPHR, SHRM (2008) Case Study and Integrated Application Exercises:

Designing A Pay Structure, pp. 1-42.

Ray, K; Foley, B; Tsang,T; Walne, D and Bajorek, Z. (2014) A review of the evidence on the impact,

effectiveness and value for money of performance-related pay in the public sector, The Work

Foundation (Lancaster University), pp. 1-91.

Week 5: Rewards5.2 Activity: Theories that impact performance-related rewards

Week 5: Rewards5.2 Activity: Different types of performance-related reward programs

Week 5: Rewards5.2 Activity: How a balanced scorecard and company performance can influence incentiveplans


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http://pandora.nla.gov.au/pan/44459/20061205-0000/wp04-03.pdf

https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/documents/designing a pay structure_im_9.08.pdf

https://s3-ap-southeast-2.amazonaws.com/assets.lms2.rmit.edu.au/content/attachment/key-concepts-in-hrm-w5-performance-related-pay-in-the-public-sector.pdf




Compensation and reward is important because it has a fundamental effect on motivation, commitment andoften discretionary effort for employees.

Equity theory suggests that social comparisons are an important part of employees evaluating pay.Performance-related pay programs may be developed at an individual, team or group, or organisation-widelevel. Most organisations that implement performance-related pay aim to reward individuals for bothindividual and organisational contributions. In this way, performance-related pay is linked to companyperformance and is therefore strategically reinforcing.

Welcome to the final week of your learning for this subject. This week will focus on contemporary areas ofHuman Resource Management – specifically ethics, international Human Resource Management, andevaluating Human Resource Management. In many cases, because these are emerging areas of interest,research, and management, the most effective way to understand them is to consider current companypractices and case studies. This week will focus heavily on your knowledge and research of existingorganisations.

This week will cover:

Basic ethical principles and how they relate to HRM

Justice and fairness in the employment relationship

Understand International Human Resource Management practices

Understanding the types of international employees

Understand the types of international assignments

Issues relating to Human Resource Management

The different approaches to measuring and evaluating the HR function.

6.1 Activity: Basic ethical principles and how they relate to human resource management

For justice and fairness to prevail in the employment relationship, HR practitioners should be aware of

Week 5: Rewards5.3 Week 5 summary

Week 6: Contemporary HR issues6.1 Introduction to week 6

Week 6: Contemporary HR issues6.1 Activity: Basic ethical principles and how they relate to human resource management

Week 6: Contemporary HR issues6.2 Justice and fairness in the employment relationship


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employee perceptions of organisational justice (or fairness); as well as employee perceptions of distributivejustice (fair distribution of rewards) in the organisation. In addition, practitioners should ensure proceduraljustice, which occurs in the methods and processes in the organisation, as well as interpersonal fairnesswhich is the perceived fairness in the quality of treatment of employees. Table 6.1 details the employeerights and duties of employees in the employment relationship.

Employee rights Issues of fairness and justice

Right to privacy:

Health and drug testing

Work-life balance

Presenteeism

Electronic privacy and data protection

Right to due process

Selection, promotion and firing

Disciplinary proceedings

Grievance procedures

Right to collective bargaining andassociation and the right to strike

Organisation of workers in trade unions

Industrial action

Right to participation Participation in company’s decision

Right to healthy and safe workingconditions

Working conditions

Occupational health and safety

Right to fair wagesPay

New forms of work

Right to freedom of conscience and speechWhistleblowing

Cultural control

Fair treatment in recruitment and selection


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Right to work Non-discriminatory rules in recruitment and

selection

Employee duties Issues of fairness and justice

Duty to comply with labour contract

Acceptable level of performance (health and drug

testing, and industrial action)

Work quality

Loyalty to the firm (whistleblowing)

Duty to comply with the law Bribery

Duty to respect the employer’s property

Working time (presenteeism)

Unauthorised use of company resources for

private purposes

Fraud, theft, embezzlement

(Source: Adapted from A. Crane & D. Matten, 2010. Business Ethics: Managing Corporate Citizenship andSustainability in the Age of Globalisation, Oxford University Press, Oxford.)

6.2 Activity: Case study - Offshoring

6.2 Activity: Case study - Corporate social responsibility

6.2 Activity: Ethics research

Week 6: Contemporary HR issues6.2 Activity: Case study - Offshoring

Week 6: Contemporary HR issues6.2 Activity: Case study - Corporate social responsibility

Week 6: Contemporary HR issues6.2 Activity: Ethics research


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The roles required of the HR function have changed as people have become recognised as a true source ofcompetitive advantage. This has required a transformation of the HR function from focusing solely ontransactional activities to an increasing involvement in strategic activities. Figure 6.2 describes the key HRactivities that are aligned with transactional, traditional and transformational aspects of HR.

Figure 6.2 Transformational, Traditional, and Transactional Functions of HR.

The Human Resources function must deliver all of these services to the organisation. HR, as with mostbusiness functions, must also measure the performance of the function. These measures are typically bothquantitative and qualitative. As with any business function, analysis of data informs action. Both financialand social measures should be used, such as cost and employee satisfaction.

Ulrich outlines four major roles that HR professionals should pursue in order to work effectively. He suggeststhat these are:

Strategic partner—where the HR and business strategy are aligned and HR priorities are identified

through organisational diagnosis.

Administrative expert—the traditional role of HR whereby the function is most concerned with

effective administration of operational level issues.

Employee champion—concerned with the day-to-day needs of staff, where HR links the contribution of

employees to organisational success, as well as increasing employee commitment and competence.

Change agent—here HR is involved in transformation and cultural change incorporating the

identification and framing of problems and then working on solutions to deal with them.

Week 6: Contemporary HR issues6.3 Different approaches to measuring and evaluating the HR function

Week 6: Contemporary HR issues6.3 Activity: Case study - Measuring human capital


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6.3 Activity: Case study - Measuring human capital

In summary, the final lesson of this course has covered some emerging areas of HRM.

Specifically ethics and its importance to people and business; International Human Resource Managementand the complex nature of managing employment arrangements and relationships in this context; and finallythe evolving roles of HR practitioners and the HR function into one that is transformational whilst not losingsight of excellence with the operational aspects.

Remember that your final assessment is due next week.

Well done on finishing all your work in this course. Your final grade will be available a week after Week 7closes.

What can you do next at RMIT?

Have you registered for your next course? Refer to online programs.

Have you discovered the RMIT Study Online blog?

Do you know of all the work and study opportunities available to you as an RMIT student?

Have you seen Catalyst Magazine for RMIT Students?

Week 6: Contemporary HR issues6.4 Week 6 summary

Course FinishWhat next?


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https://studyonline.rmit.edu.au/online-programs

https://studyonline.rmit.edu.au/blog

http://www1.rmit.edu.au/browse;ID=r7c9v19sehlk1

http://www1.rmit.edu.au/browse;ID=7uviwwtfto49

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