Unit 4

Topic 1AChapter 4 – The Human Resources Management Function – Factors Involved

What is Human Resource Management?

Simple Definition – Human Resource Management is the management of human relationships in the workplace.Complex Definition – Human Resource Management is a series of activities focused on obtaining, training and maintaining an effective workforce that is capable of achieving an organisation’s goals and objectives.

Humans are the most critical input!

HMR Historical Role‘In the olden days’Personnel Functions

- Payroll- Annual Leave- Recruitment Procedures

Middle Management

Contemporary HMRHMR is a ‘strategic’ role. The HR Manager reports directly to the CEO and works closely with other upper level managers

Senior Management

HMR is High profile? Why?1. Investment2. Competitive Advantage3. Legal Compliance

Investment in ‘Human Capital’HR processes are expensive and are now seen as an investment in human capital.Expensive investments must be managed with expertise.Managing humans well improves profits.

Ceo

Financial Control

Personnel

Marketing Director Operations

CEO

Financial Controller

Marketing Director Operations HRM

It Makes ‘Cents’

People Service Profits Philosophy

Why Train StaffWhat if we train them and they leave?What if we don’t rain them and they stay?

Competitive AdvantageTraining & development can give a competitive advantage over rival organisations.Good HR management improves organisational stability and therefore its long term service. Legal CompliancePolicies and procedures must comply with laws relating to employment & employee relations.Example:

1. Equal Employment Opportunity2. Affirmative Action3. Anti Discrimination Laws4. Occupational Health & Safety Laws

Invest in Humans

Employee Expertise

Achieve Organisational

Goals

Employee Expectations

Thing people want in the workplace:- Safe Work Environment OH&S- Job Security- Flexible work conditions

Employee expectations are thing employees require their employers to do or provide during their employment.These include:

1. Honesty & fairness2. Safety3. Training4. Correct payment, etc.

Changing ExpectationsToday’s workforce

1. More educated2. Want to be challenged3. Want more autonomy4. Aware of OH&S5. Increased equity/gender equality6. Work life balance

Industrial Democracy/Empowerment- Employees demand the right to be involved in the decision making process.- Acknowledgement that workers can take initiative and make decisions for themselves.- This places new demands on HR managers when recruiting, developing and terminating

staff.

Employee Conditions(part of the employment agreement)Hours of work

- Minimum?- Overtime?

Leave Entitlements- Sick?- Long Service?- Family?- Holiday?

Other Benefits- Flexitime?- Maxiflex?- Bonuses?

Achieving ‘Work – Life Balance’- ‘Work – Life Balance’ is achieving the right combination of hours spent at work and hours

spent in personal life.

Better ‘Work – Life Balance’:- Increased productivity & decreased absenteeism- Increased retention & decreased costs of re-employing- Increased motivation & decreased stress

KPI’s

OH&S- Employers must make sure they take all possible steps to ensure workplaces are safe for

workers.This Includes:

- Maintaining machines & equipment in proper working order.- Training staff to operate machines correctly.

Why get OH&S right?3 key reasons:

1. The law says so2. It makes good economic sense3. It is the ‘ethical’ thing to do.

Job Security- ‘Job Security’ refers to workers feelings/beliefs about whether they will lose their job or not.- The threat of losing your job is the greatest setback to employee loyalty, even to those not in

immediate danger.- Perceived security is receiving increased recognition as a key determinant of employee work

outcome.- ‘Job Insecurity’ decreases productivity and increases stress and ill health of workers.

Employee Motivation‘Factors that drive workers to achieve in the workplace’

MotivationMotivation is the force that drives people to exert effort to achieve desired end.

Maslow’s Need Hierarchy

Maslow and the Workplace

Maslow’s hierarchy of needs has significant implications for treatment of labour and the design of jobs in the workplace.

Hertzberg’s Two Factor TheoryThis theory is based on the idea that some things stop people becoming dissatisfied (Environment) and other things motivate people (Motivators)Environment: These are the extrinsic to the worker.Motivator: These are intrinsic to the worker.

Hertzberg 1: Preventing Dissatisfaction!Environment (Hygiene):

- Hygiene does not lead to ‘satisfaction’ but rather prevents ‘dissatisfaction’.- If ‘hygiene’ needs are not met then dissatisfaction can result.

Examples:

Self Actualisation

Self Esteem

Belonging

Safety

Physiological

Creative, interesting jobs

Responsibility & Recognition

Teamwork, involvement & support

Safe Conditions

Satisfactory pay for survival

Needs are arranged in a hierarchy of importance.Must satisfy the lower before you can satisfy the nestUnmet needs are motivators.

Think about ‘The Simpsons’

1. Pay2. Relationships/supervision3. Working conditions4. Job security5. Policies & procedures

Getting the environment ‘right’ allows motivators to function.

Hertzberg 2: Creating MotivationMotivators:

- These are things that will provide workers with motivation and energise them in the workplace.

Examples:1. Responsibility2. Important/rewarding work3. Achievement4. Recognition

Locke’s ‘Goal Setting’ TheoryTheory says that setting challenging but achievable goals motivates people to improve performance.Focus on:

1. Challenging2. Achievable

Set Goals

Feedback

Motivation

Improve Performance

Topic 1BChapter 5 – The Human Resources Management Function – The Employment Cycle

HMR Function: The Employment CyclePlanning, Analysis and Design

The Employment Cycle

HR Planning- More than any other resource, people are what is critical to achieving an organisation’s

goals. Humans are the most important resource.- Choosing the right staff is therefore the most crucial decision a HR manager makes.- The HRM must have a detailed knowledge of the position that needs to be filled to best

assess applicants for the job.

Planning HR Needs

The following questions need to be asked:- How many workers are needed?- What qualifications and skills are needed?- When and where workers are needed?

HR Planning ConsiderationsInternal Factors:

- Future production- New Equipment acquisitions- Expansion- Downsizing- Current worker profiles (age, gender, etc.)- Current staff turnover

External Factors:- Economic outlook- New technologies- Changes to the law

Job Analysis- ‘Job Analysis’ is a systematic study of each employee’s studies, tasks and work environment.

It examines:- Job activities- Equipment needed- Behaviours required- Working conditions- Level of supervision

Maintaining

TerminatingEstablishing

Job Description is a written statement of tasks, duties and responsibilities.Job Specification is a list of key qualifications, skills and expertise required for a job.

Job Design

A satisfying job includes interesting and challenging tasks, and has a high level of autonomy over ‘When’ and ‘How’ questions.

Job Design

What Tasks?

Who Performs

When Performed

How Performed

Job Description

Job Specification Job

Analysis

The Employment Cycle: Establishing PhaseRecruitment & Selection

Before you Begin

Recruitment- Recruitment is the process of finding suitable

applicants/candidates for the position.- The search for candidates may be ‘Internal’ or ‘External’- The aim is to gather information about possible/potential employees.

Internal Search- The consideration of existing employees as applicants for available positions.- It can work as a good motivator for current employees.- It is cost effective (i.e. cheaper).- It is more likely to be effective in larger organisations.

External Search- Organisations will choose the most appropriate method for them.- An organisation wants to bring in new people.

Selection- This involves sorting through the list of applicants and choosing the most appropriate

applicant.- It is important that you choose the applicant with the qualifications that best match the

position/job.

The Selection Process

External Search

Advertise

AgenciesGraduates

Job Description

Job Specification

Recruitment & Selection

Making the Choice- An organisation should select the candidate with the skills that best meet the requirements

of the position.- The costs of ‘getting it wrong’ can be high.- Organisations must ensure they do not breach ‘anti discrimination’ laws.- Organisations are compelled to act within the law and should aim to act ‘ethically’ when

choosing new staff.

Short List Applications

Tests

Interviews

Background Checks

Select (Better) Candidate

The Establishment PhaseEmployment Arrangements & Remuneration

Employment ArrangementsThere are 4 basic arrangments for employing people.

Full Time EmploymentThis is what you get

Part Time Employment: <38 HoursAdvantages:

- Work is on going of continual- Normal benefits are accrued of a ‘pro-rata’ basis- Can be more productive as workers are more motivated and less fatigued- Overall increase in ‘skill bank’ of organisation

Disadvantages:- Can be difficult to organise meetings- Can be difficult to communicate- Less continuity of service for customers/clients- Increased need for facilities- Increased training costs

Options

Full Time

Part Time

Casual

Outsource

Full Time

38 Hours

Sick Leave

Long Service Leave

Holiday Pay

Family Leave

Paid Family Leave

Casual EmploymentAdvantages:

- Hourly rate of pay is usually higher- Give flexibility to both employers and employees- Increases the skill bank of the organisation- Easier to discard underperforming workers

Disadvantages:- Loss of benefits such as sick leave and long service leave- Workers can be less committed and less motivated

Outsourcing- ‘Outsourcing’ is using a contractor to complete tasks rather than employing a staff member- A contractor is not an employee and therefore does not have the same rights as an employee- Contractors are paid a contract price and must account for their own taxation- Contractors may work for more than one employer simultaneously

Remuneration – Financial Reward Remuneration is the financial reward a person gets for working for an organisation.The ‘National Employment Standards’ contain so minimum conditions each employee must get.‘Remuneration Package’ is the overall bundle of benefits an employee receives.Remuneration packages will reflect the value of a workplace to the organisation.

Enterprise BargainingEB allows variations to particular workplace as agreed by both the employer & employeesVariations Include:

- Start and finish times- Overtime- Leave without pay- Work from home- Additional family leave- Job sharing

Such variations can attract a different type of worker. E.g. A working motherNot able to bargain for conditions less than the set minimums

$ Rewar

d

Wage

Salary

Benefits

Salary Sacrifice

The Maintenance Phase of the Employment CycleInduction

InductionInduction is the process of acquainting new employees with the organisation.Sometime called ‘Orientation’ and ‘Onboarding’.

Good InductionGood Induction is:

- Planned- Organised- Lead- Controlled

The aim of induction is to make sure new employees are made comfortable as soon as possible so that they do not leave.The highest rates of staff turnover occur in staff that have been with the organisations less than 6 months.

Familiar

History

Structure

Environment

Culture

Policies

Practices

The Maintenance Phase of the Employment CycleTraining & Developing

Training & DevelopmentTrainingIs the process of teaching workers to perform their tasks more effectively by improving their knowledge and skill. “I am being trained to use the new computer software.”

DevelopmentRefers to activities that prepare people to take on more responsibility in the future. Sometimes called “grooming”. “I am being groomed for a management position.”

The Importance of Training

Focus on Training

Training

Long Term ChangesSkills & Knowledge Attitudes & Behaviour

Improved Organisational PerfromanceFinancial KPI’s Non Financial KPI’s

Benefits of TrainingTo the Worker:

1. Opportunities – promotion and self improvement2. Satisfaction – perform tasks better3. Challenge – learning new things4. Adaptable – better able to adapt to change

‘OSCA’To The Organisation:

1. Improves work quality2. Increases worker productivity3. Better able to initiate and cope with change4. Achieve objectives more easily5. Reduce Costs

Development

Opportunities (experiences)

Training

Technology and Training- Effective introduction of new technologies requires workers to be trained- HMR must Plan, Organise, Lead & Control the training of workers in new technologies- Training is expensive but essential- Untrained workers often resist change

Types of Training

Training and Developing Managers- Job Rotation: Moving around the organisation- Mentoring: Using another person as a ‘coach’ for guidance and support- Formal Training: Undertaking specific management training such as an MBA (Masters in

Business Administration)

Succession PlanningThis is planning for the replacement of existing managers so that the organisation has a leader ready to take over when the current leader leaves.

Training

On the Job

Off the Job

Action Learning

CompetencyIndustry Training

University

ICT/Online

The Maintenance Phase of the Employment CycleReward & Recognition

R&R ProgramsRecognition involves acknowledging the efforts & achievements of someoneReward is one tool used for recognitionAn effective Recognition & Reward program should help to attract, retain and motivate workers.

Attributes of a Good Recognition and Reward Program

Potential Problems:1. Where workers perceive their work & effort are not recognised2. It may cause competition between workers rather than cooperation3. Some performances are difficult to accurately measure and therefore reward

Poor systems can cause serious ‘employee’ problems.

R&R

Motivate

Equitable

Clear

Defensible

Consistent

Relevant

Cost Effective

Integrated with

objectives

The Maintenance Phase of the Employment CyclePerformance Management

Performance Management- PM is about ensuring individual workers achieve their stated objectives.- Worker objectives should be consistent with the objectives of the organisation.- PM is therefore about ensuring the organisation’s goals are achieved.- E.g. If the organisational goal is to increase sales by 10% then personal goals of the sales

staff should be to increase sales by 10%.

Effective Performance ManagementExamines the following

1. Are the jobs well designed?2. Do workers have the right skills?3. Is training in place?4. Are appropriate rewards in place?- You should not set people up for failure!

Performance Appraisal – Definition:- Managing an individual employee’s performance in the organisation.- Results are discussed with employees. Appraisal without feedback is pointless as nothing

changes.- Appraisal should be objective and not subjective.

Performance Appraisal – Aims:

Effective PM

The Job

Skills

Training

Rewards

1Provide feedback to workers

2A measure for promotion, pay rises, etc.

3Helps the organisation monitor its workers

4Identify training & development needs

5Identify new objectives & plan future performance

Performance Appraisal – Methods

Management by (mutually agreed) objectives1Essay (journal) MethodCritical Incident Method2

Comparison Method3

The Employment CycleTermination

Awareness & Sensitivity:HR managers must be aware and sensitive to:

- Industrial & employment laws- Organisational policies- Ethical behaviours- Expectations of society

4 Ways to Terminate

Resignation- This is where the employee chooses to terminate the employment relationship- It is usual to give an agreed period of notice- Notice varies according to the industry.- There can be penalties for failure to give adequate notice in the form of withholding of

wages.- Sometimes people are entitled to ‘resignation benefits’ such as accumulated long service

leave and accumulated holiday leave when they resign.

Retirement- This is similar to resignation except the employee is ceasing work and accessing the aged

pension and/or superannuation

Aware

Law

Policies

Ethics

Expectations

Termination Options

Resign

Retire

Retrenchment

Dismiss

- The ‘qualifying age’ for me and women to access the aged pension is progressively increasing such that by around 2020 the qualifying age will be 67 years for both men & women.

Retrenchment(Redundancy)

- This is where the employer decides a position is no longer required and the employee is made redundant.

- Redundancies may be ‘voluntary’ (ask employees to be made redundant) or ‘involuntary’ (force a worker to be redundant.

- Redundant employees are entitled to compensation known as ‘redundancy package’ the value of this is usually linked to the length of service given by a worker.

- The main reasons for retrenchments are technological advances and lost or expired contracts.

DismissalThe Employer terminates the employment agreement.Summary Dismissal:

- Instant dismissal as a result of gross breach of discipline.- Examples include: theft, violence, intoxication, misconduct, refusing to work, etc.

Due Process:- Employer initiated process of counselling that may result in termination or resolution of the

issue.- This is a formal process that has clear steps that must be followed and documented.

Unfair Dismissal- ‘Unfair Dismissal’ is where the termination of employment by the employer is ‘harsh’,

‘unreasonable’ or ‘unfair’.- Laws help protect workers from ‘unfair dismissal’.- Dismissals considered unfair include things such as: illness, association with legal

organisations, race, religious beliefs, disability, pregnancy, failure to give adequate notice of termination, etc.

Unfair Dismissal Remedies:1. Reinstatement at the same or equivalent position.2. Compensation (remuneration) in lieu of reinstatement.3. Reinstatement and compensation for lost income.

Organisations usually want to avoid unfair dismissal and do this by following clear guidelines for termination.

Topic 1CChapter 6 – The Human Resources Management Function – Employee Relations

Employee RelationsIntroduction

What is ‘ER’?- ER refers to the total relationship between the employer and the employee.- The ER process is used to build an effective workforce.- An effective workforce improves organisational performance.

Working ConditionsThe accepted working conditions must:

1. Satisfy the needs of the workers2. Allow the organisation to achieve it’s goals

ER Stakeholders

Internal StakeholdersEmployers:

- Manage ER issues on a daily basis.- Include ER specialists in the HRM tea, (e.g. ‘Industrial lawyers’, etc.)

Employees:- Workers are increasingly included in the negotiation and establishment of working

conditions.- Society’s values have shifted to make this involvement an expectation.

Operating StakeholdersTrade Unions:

- Unions are called on to represent their members in the ER process and agreements.- Unions aim to get the best possible deal for the members (i.e. workers)

Employer Associations:- Employer Associations originally counteracted the power if trade unions.- Now, they provide advice to member organisations on issues relating to the particular

industry (e.g. Retail Traders Association and Sunday pay rates)

Macro StakeholdersPeak Union Bodies:

- Australian Council of Trade Unions. ACTUThe ACTU:

Peak Union Bodies & Peak Employer Bodies

Unions & Employer Associations

Employers & Employees

1. formulates policies for the union movement2. assists unions in the settlement of large disputes.

Peak Employer Bodies:- Victorian Employers Chamber of Commerce & Industry. VECCI- VECCI & other bodies perform a similar role for employers as that provided by the ACTU for

unions.-

The Role of Government in ER

Govt Role

s

Make ER Laws

Employer

Economic Manager

Administer Policies

Represent Australia

Centralised & Decentralised Employee Relations Systems

The Centralised System1904-1990Features:

- The government controlled the system of determining wages & conditions.- All wages & conditions were formalised in legal documents called ‘Awards’.- Awards applied to occupations & industries. E.g. Hospitality Industry, Construction Industry,

etc.- Awards were established by the Australian Conciliation & Arbitration Commission (later to

become the Australian Industrial Relations Commission) after hearing submissions from Trade Unions and Employer groups.

Conciliation & ArbitrationConciliation:Using a third party ‘Conciliator’ to help two disputing parties resolve their differences through discussion and negotiation.Arbitration:Using a third party ‘Arbitrator’/‘Arbiter’ (Judge-Like) to hear both sides and make a formal, binding judgement. Arbitration occurred only after conciliation had been attempted and failed.

Centralised Decisions todayThe ‘Minimum Wage’

- Each year the minimum wage panel of Fair Work Australia determines the minimum wage for vulnerable groups such as:1. Casual workers2. Junior Workers3. Trainees4. Disabled workers5. Full time adults not covered by awards

A More Decentralised SystemPost 1990

- A ‘Decentralised’ system is where employees and employers are able to directly negotiate pay and conditions in individual workplaces.

- ‘Decentralised’ means that decision making is not controlled at one (central) point, but is spread out, defrayed, dispersed not centralised.

Enterprise Bargaining- EB is the process of directly negotiating pay and conditions between employers and

employees at the enterprise (organisational) level.- Allows workplace practices to change to suit workplace needs.- Link productivity increases wage increases.- Encourages conflict resolution at the local level.

Types of AgreementsAgreement Options:

- Awards- Collective Agreements- Individual Agreements

AwardsIn the past:

- Awards contained the terms and conditions of employment which applied to particular industries.

- Awards were the only set of conditions.- Awards were entailed detailed and complex.

Today:- Awards exist as a minimum set of conditions that apply where no enterprise agreement has

been reached.- Awards are a ‘safety net’ to protect workers and provide ten basic entitlements.

Collective or Enterprise Agreement- Is an agreement between an employer and its employees as a group or ‘collective’.- Unions may be used by employees to represent them- Bargaining is to be in ‘Good Faith’- Agreements must adhere to the 10 National Employment Standards and contain several

other components. E.g. Expiry dates.- Enterprise agreements must be approved by Fair Work Australia

Individual AgreementsAWA’s:

- No longer allowed- A small number still exists but will cease when their expiry date occurs.- Allowed pay & conditions below Award levels

Common Law Contracts:- Very common in ‘professional’ employment (E.g. Accountants, Lawyers, etc.)- Cannot erode Award minimums unless pay is greater than $130,000 pa.

The Role of HRM in Decentralised ER

Negotiating Agreements1. Be aware of awards and the national employment standards2. Table all relevant information to allow proper negotiation (good faith)3. Consult widely4. Keep an open mind5. Remember the ‘big picture’6. Exercise care7. Lodge the agreement

Training Other Managers & Supervisors- Production and operations managers are responsible for the implementation of the

elements of the agreement- For instance, if shift work hours are changed, the operations manager will need to make

changes to the daily structure

Implement the Agreement1. Prepare and distribute all documents2. Change all details (e.g. hourly rates of pay)3. Assist in preparing necessary KPI’s4. Gather feedback on performance

Dealing With Disputes- HRM is central to the resolution of any dispute that arises under an enterprise agreement.- The clever strategy is to set up an agreement that is not likely to cause dispute

HR Management StylesAutocratic & Persuasive are more likely to deliver unacceptable agreements and more conflicts.Participative & Consultative styles are more likely to deliver acceptable agreements and fewer conflicts.

HRM Roles

Deal with Dispute

Negotiate Agreement

s

Train inform Others

Implemet the

Agreement

HR Management SkillsManagers will need the skills that are consistent with the participative and consultative styles.

Responsible & Cooperative ERPromise of good employee relations

1. Better performance on financial KPI’s (sales, profit, etc.)2. Fewer individual disputes3. Fewer workplace accidents and absenteeism4. Increased positivity

Which Style?

Autocratic

Consultative

Patricipative

Persuasive

Skills

Communicative

Teamwork

Problem SolvingNegotiation

Delegation

Conflict and Resolution of Conflict in ER

Fighting Fire With FireStrike:

- Where workers withdraw their labour in support of improved working conditions.Lockout:

- Where employer closes the workplace for a period of time to put pressure on workers.

Major Causes of Conflict

Taking Industrial ActionProtected:

- This is legitimate action taken during the negotiation period when establishing a new enterprise agreement.

Unions Must:1. Conduct a secret ballot of members2. Obtain a majority vote from members3. Give 3 work days notice to employers

Unprotected:This includes:1. Industrial action that takes place before the expiration of a workplace agreement2. Strikes without proper warning

These are unlawful

FWA – Special Powers: - Fair Work Australia can order an end to industrial action and set up a conciliation process

whereo The Action threatens the economyo The action threatens other businesses that have a commercial relationship with the

organisation involved in the dispute.- If conciliation fails, it can arbitrate a decision

Conflict Resolution

Major Causes

Organisational Policies

Pay & Conditions

Physical Conditions

(OH&S)

Other (E.g. Gov. Policies)

Negotiation- The least formal method- No third party involvement- Requires good communication and negotiation skills- Used by participative and consultative managers

Mediation- Involves a third party to help the disputing parties- Does not suggest a resolution- Assist parties to keep negotiating- Are usually independent

Conciliation & Arbitration- A conciliator assists the feuding parties to come to an agreement- An arbiter hands the feuding parties a resolution that is binding

Common Law (Legal) Action- If the industrial action occurs during the ‘bargaining period’ of an agreement, neither party

can be sued in the courts.- Otherwise, adversaries and other stakeholders are free to use the courts to seek resolution

of conflicts and damages.- Legal action is expensive, time consuming and leads to mistrust and hostility in the

workplace.

Grievance Procedures- These are formal steps that can be followed when a party is dissatisfied with a situation- Complaint is handled internally- Move up the chain of command each time a resolution is not achieved.

Resolution Options

Negotiation

Mediation

Grievances

Conciliation

Arbitration

Common Law

Action

Other Body

Senior

Middle

Operational

Topic 2Chapter 7 – The Management of Time

Change Management

Defining ‘Change’- Organisational Change is the planned or unplanned response of an organisation to internal

and external pressures.- E.g. technology, the economy, social values, etc.

Organisational optionsOrganisations can:

- Ignore change pressures- Be reactive to change pressures- Be proactive about change

Being ‘change ready’- A ‘change ready’ organisation is committed to building its competency to respond as

needed to a complex and ever-changing environment.- Organisational survival is dependent on the capacity to change effectively.- A change ready organisation is both proactive and reactive in its nature.

Internal Forces driving organisational change

Operating forces driving organisational change

Internal Forces

Profit

Crisis

CultureInnovation

Policies

Operating

Customers

Competitors

Suppliers

Interest Groups

Macro forces driving organisational changeEconomic Need, political will, technological advancement and social attitudes can work in harmony.

Resistance to Change:1. Lack of trust in managers, workers are suspicious2. Loss of jobs (e.g. Organisational Restructure)3. Fear of the new, untried and unknown4. ‘Follower’ mentality and poor culture5. Poor management6. The Law7. Costs

New Plant & EquipmentRedundanciesTraining & Development

Macro Forces

Economic

Politics & Law

TechnologySocial

Environment

Kotter’s Theory of Change Management

1: Establish the necessity- Undertake a SWOT analysis to get the evidence.- People embrace change better when it is seen as a response to a potential or current

problem.- Create a sense of urgency.

2: Establish a Guiding Group- Form a team of facilitators to get the job done- The team must have authority and respect

3: Create a Vision- Provide a clear direction for the organisation- No vision means no commitment- Clear and shared vision is critical to getting effective change

4: Communicate the Vision- Use as many mediums as is necessary- Broadcast your vision to all stakeholders- Use consistent language and images throughout

5: Empower People- Involvement reduces fear and suspicion- Involvement creates ownership- Provide training where needed

6: Recognise & Reward achievement and involvement- Do this throughout the change process- ‘On-Going’ praise helps to drive further risk taking

7: Consolidate improvements- Modify policies, systems and procedures to reflect and sustain the new positions

The new positions become the solid base from which to undergo further change. E.g. ‘continuous improvement’.

8: Institutionalise the change- Make clear statements about the success of the organisation and the changes- Close the loop on the process- New behaviours become the standard

Managing Change EffectivelyHigh and Low rise approaches

Low Rise Strategies- Change is more accepted in an environment where time and energy have been invested in

making people comfortable with change.“Make the organisation change ready”Strategies Include:

1. Inclusive management style2. Identifying the need for change3. Setting achievable objectives4. Encouraging teamwork

High Rise StrategiesThe consequences of getting it wrong can be enormous.Are these tactics ethical?Manipulation

- Threat and ultimatum- High rise- Cooption

The Role of LeadershipLeadership: positively influencing and encouraging people to act and achieve.Focus On:

1. People rather than tasks2. Feelings rather than facts3. Listening rather than speaking4. Displaying empathy

In Addition:1. Promotion the change2. Resolve conflict3. Share ideas and information4. Share the credit

Impact of Change on LSO

Large and Small changes

Transformational ChangeWhat changes?

- Hierarchy changes- Culture- Technology- Employment arrangement- Systems and procedures

Incremental ChangeWhat changes?

- Tasks- Locations- Team members- Specific tools

“The work practices of a few people only are changed.”

Structural Changes

Before

After

Structural change is a change in the ‘organisational chart’ or ‘chain of command’.

Impact of Change on Culture- Organisations may need to adopt a new mindset when confronted with new circumstances- Deregulation and privatisation caused organisations like QANTAS, CBA and Telstra to

change their cultures- These organisations had to become profit and survival driven as they are exposed to

changed market structures.

Medibank Private – GBE Government BusinessPrivate health insurer owned by the Federal GovernmentPrivatised, sold to shareholders

Impact of change on HRMHRM will need to:

1. Change recruitment and selection to get skilled workers2. Make some workers redundant3. Organise training for some workers4. Introduce new appraisal system5. Communicate the changed vision

Impact of change on operations managementMovement away from human labour, towards robotics and manufactureHighly capital intensive, about larger markets

Other Effects of change1. Outsorcing; using contractors not employees2. Flatter Organisational Structures; less hierarchical3. Work teams; inclusive management styles

CEOA 1

B2

3

CEOA

1

2

B 3