Revision

1. Unit 4
Business Management
Outcome 1
PART A
The human resource management function

2. SAC Details
• Monday August 4th
• One session
• 40/60 marks (Part A)
• There will be a 10 mark question included. (The end of year exam has
a 10 mark question so you will need to start practising these types of
questions)
• Revise - Chapter 4 & 5 Text
• If a question contains a case study ALWAYS make reference to it in
your response.

3. Study Design Key Knowledge
Factors involved in managing human resources:
Relationship of human resource function to business objectives and
business strategy
Employee expectations, including conditions of employment,
occupational health and safety (OH&S), job security and work–life
balance
Key principles of Maslow’s, Hertzberg’s and Locke’s theories of
motivation
Ethical and socially responsible human resource management;

4. Study Design Key Knowledge (continued)
management practices and processes associated with the key phases of the
employment cycle:
Establishment phase:
– human resource planning related to business strategy
– job analysis and job design
– types of recruitment methods and selection processes
– employment arrangements and remuneration
Maintenance phase:
– induction
– training and development
– recognition and reward
– performance management

5. Study Design Key Knowledge (continued)
Termination phase:
– termination management, including entitlement and transition
issues;

6. Key Skills (Study Design)
These skills include the ability to
• accurately use relevant management terms;
• research related aspects of human resource management using print
and online sources;
• analyse business literature, information and data;
• evaluate key aspects of human resource management theory;
• apply human resource management knowledge and concepts to
practical and/or simulated situations;
• evaluate different practices and processes for managing human
resources.

7. Factors involved in managing human resources:

8. Relationship of human resource function to business objectives and
business strategy
• Strong relationship.
• The human resource (HR) department is central to the success of all
organisations.
• The HR manager is responsible for translating the overall corporate
objectives into department objectives.
• HR must ensure the LSO has highly trained, productive and motivated
workforce.
• Achieving this aim means the business is more likely to be competitive.
• If a business has objectives that include increasing market share and profit,
then a productive workforce along with other successful management
functions, such as operations and marketing, will greatly assist the
organisation to achieve its objectives.

9. This table shows some practical examples of how company objectives can be
translated into HR objectives and strategies.
Company objectives HR objectives HR strategies
Most reliable supplier Increase worker
productivity
Thorough selection
process
Increase in sales Develop sales skills Ongoing training
Increase in profits Improve product
knowledge
Regular performance
appraisal
Provide safe workplace Reduce number of
accidents
Establishment of work
teams

10. Key Terms
• Human resource manager
• Human resource management.
• Human resources.

11. Employee expectations, including conditions of employment, occupational health and
safety
• to be paid a fair wage/salary
• to finish work at the designated finishing time
• to gain satisfaction from the work they perform
• to have time off for legitimate reasons, such as illness and family carer
responsibilities
• to have an opportunity for promotion
• to have manageable, satisfying work to perform
• to work in a safe and healthy work environment
• to be able to negotiate flexible working arrangements
• to work in a positive culture that does not support discrimination,
harassment or bullying

12. Employer expectations
• that workers complete all work assigned to them
• that they complete assigned work to a satisfactory standard
• that they arrive at work on time (that is, are punctual) and leave
at the designated finishing time
• that they maintain good attendance and are reliable
• that employees are skilled and willing to be trained and
developed
• that employees comply with all health and safety policies and
procedures

13. OH&S
• Concerned with protecting the safety, health and welfare of workers.
• OH&S aims to foster safe and healthy workplaces.
• All employees expect to work in a safe environment.
• All employers have a duty of care to ensure that employees and any other
people who come on to work sites remain safe at all times.
• This duty of care is supported by laws and regulations relating to working
conditions, such as the provision of safety equipment and signs,
establishing and running OH&S committees, and procedures for the safe
handling of heavy loads and goods such as chemicals.
• In addition to maintaining a safe workplace, OH&S laws require that
employers have workers compensation insurance coverage.

14. Job security
• Where an employee knows that they have a:
• permanent,
• ongoing position within an organisation.
• If an employee has a permanent position they are less likely to feel
stressed and concerned about whether or not they will have a job in
the future, particularly given the rise in casual employment.
• Permanent employees with job security generally feel loyalty and
commitment to their employer and are therefore likely to be
motivated and productive.

15. Work Life Balance
• Refers to having enough time for work and enough time for life.
• Varies from person to person as the best work–life balance depends on
individual circumstances and priorities.
• Organisations have also placed greater emphasis on work–life balance
practices as meeting this need helps to enhance organisational
performance.
• Work–life balance practices involve providing a workplace that helps
workers get the right balance between completing work tasks and meeting
personal and family commitments.
• To create a workplace environment that fosters a work–life balance,
employers can offer their employees flexible working conditions in relation
to hours/days worked, work location, leave arrangements (such as carer or
parental leave), and through the provision of subsidised child care facilities

16. Expectations of people working for large scale organisations
Key terms you must learn
• Employer of choice
• Flexible working conditions
• Work life balance
• Occupational Health & safety
• Job security

17. Key principles of Maslow’s, Hertzberg’s and Locke’s theories of motivation
Define Motivation
See handout emailed that explains and compares each theory.
For sac & exam must be able to explain each theory and explain the
similarities and differences between the three.

18. MASLOW
HERTZBERG
HUMAN RESOURCE MANAGEMENT - MOTIVATION
Physical
SAFETY
ESTEEM
SOCIAL
SELF ACTUALISATION
PHYSIOLOGICAL
HYGIENE MOTIVATING
PAY
CONDITIONS
PRAISE
SELF RESPECT

19. HUMAN RESOURCE MANAGEMENT - MOTIVATION
GOAL
SPECIFICITY
GOAL
DIFFICULTY
LOCKE
GOAL SETTING THEORY

20. Why is it important to motivate employees?
• More likely to be focused, adaptable, committed and productive.
• Employees will care about the success of the organisation they work
for and make a strong commitment.
• Satisfied workers stay longer (LSO retains and can actively use the
employees’ skills and experience)
• ‘employer of choice’ (attract talented and skilled employees when it is
recruiting new employees).
• Will help an organisation achieve its goals and remain competitive

21. Strategies to motivate employees
• Lockes goal setting theory – set objectives with each employee.
• Regular meetings – give feedback.
• Provide opportunities for employees to expand their skills and knowledge.
• Training and development to help employees perform their jobs to a higher
standard and to improve their chances of career advancement.
• Recognition and reward system. Eg performance-based pay or a bonus,
Employee of the month.
• Well defined job description after job analysis.
• Encourage teamwork.
• Self actualisation – professional development & job rotation.
CAN YOU THINK OF OTHER STRATEGIES? LINK THEM TO THEORIES??

22. Ethical and socially responsible human resource management

23. Ethical and socially responsible human resource management
• Make sure you define business ethics & social responsibility
• Why do employees want to work for socially responsible and ethical
organisations?
• Employees often want to contribute to the community beyond the
workplace and organisations that have these types of programs will
attract employees.
• There would bepositive corporate culture and policies in place to
ensure that employees are treated fairly and ethically, which will
encourage them to stay.

25. Human Resource
Planning
Recruitment
Selection
Induction
Termination
Exit Interview
Counselling
Performance
Management
Training &
DevelopmentRecognition
& reward
Maintenance
Termination
Establishment
HUMAN RESOURCE MANAGEMENT- EMPLOYMENT CYCLE
Job Analysis

26. Establishment Phase of employment cycle
Human Resource Planning
• The most important stage of employment cycle.
• The process of anticipating the future staffing needs of an
organisation.
• HRM’s need to be aware of strategic plans of LSO.
• More or fewer staff needed?
• Which areas of LSO likely to grow?
• Specific skills or languages needed?

27. HR Planning
If there is a surplus of employees the HR manager may:
• Encourage early retirement.
• Retrench workers.
• Cut back employees hours & overtime.
If there is a deficit of employees the HR manager may:
• Ask retiring employees to work longer.
• Increase casual & part time hours.
• Hire new staff.

28. Job analysis
• The process of finding out exactly what the job involves.
• Finding out the true duties that a person will perform and help identify
the knowledge, competencies, skills required of the applicant.
• The findings are used to complete a:
job description & job specification
• These documents are used to advertise the position and to cross-check
with the résumé of each job applicant when recruiting new employees.

29. Job Design
• Job design occurs after the job has been analysed.
• The tasks documented in the job analysis are identified, grouped
together and then checked to ensure they relate to that particular
job.
• The process also involves identifying the required attributes, skills and
experience needed to perform the job and determining if the job
provides sufficient challenge to develop the job holder.
• It is important that the job has a combination of routine and more
challenging tasks.

30. Job description & Job specification
• Job description – summary of what the worker will be doing. The
employees tasks

31. Types of recruitment methods and selection processes
Recruitment
• Locating of a person with the necessary skills, personality & capabilities to
undertake the required job.
Methods that could be used for recruitment: (internal & external)
• Promotion within the organisation.
• Referrals
• Head hunting
• Employment Agencies
• Advertisements on the internet (LSO website)
• Advertisements in newspapers
WHAT ARE THE ADVANTAGES OF RECRUITING INTERNALLY & EXTERNALLY?

32. selection processes
• Screening –reading through all applications & deciding which applicants
should be shortlisted for an interview.
• The interview- sometimes a panel with pre-prepared questions to ask
relating to selection criteria for the particular job.
• Testing- To see if the person has the skills listed on their resume & to see if
their personality will suit LSO. Helps build an overall profile of candidate in
a short time.
• After the interview- panel rank applicants based on interviews & test
results. Performance in relation to selection criteria. Final decision made
after reference checks.
• Referee checks – involves ringing applicants current or previous employer
to receive feedback on their work ability.
• Selection – last part of recruitment process where best candidate is
chosen.
• Successful & unsuccessful applicants are notified.

33. Employment arrangements and remuneration
Employees can be employed as:
• Full time workers
• Part time workers
• Casual workers
Remuneration: (pay & package)
Remuneration is the money paid to an employee in return for the work they
perform.
It can take the form of a wage, usually paid weekly or fortnightly (calculated
on the number of hours worked by a dollar amount per hour) or a salary,
expressed as an annual amount and generally paid in monthly instalments.
Remuneration can include other items or benefits such as bonuses,
superannuation, a company car or a phone or laptop

34. Maintenance phase: – induction
• Induction is the process of introducing a new employee to a position or
organisation.
• Involves orientation and training.
• Can be a formal program where employees are introduced to the
company’s goals, vision, values, policies, procedures, strategic plan and
corporate culture.
• Some LSO’s conduct a less formal process, such as on-the-job training or
appointing a mentor or ‘buddy’ to work with a new employee to assist
them to adjust to their new job and work environment.
• Important that induction training is properly planned and conducted to
ensure that new employees are retained.
• Poor induction training is a reason that some employees leave an
organisation after a very short time, as new employees tend to decide
within the first few days whether the decision to accept the job was a good
one.

35. Training and development (formal & informal)
Training
• Process of providing an employee with specific knowledge & skills
they will need to undertake the job.
• Developing workplace skills.
• Eg Learning how to operate new machinery or new software program.
(skill based)
Development
• Focus on increasing the knowledge base of employees.
• Eg teachers attend professional development in latest educational
theories.
WHY IS IT IMPORTANT FOR LSO TO PROVIDE TRAINING &
DEVELOPMENT?

36. Recognition and reward
• Recognition – process of ensuring someone is acknowledged for making
valuable contribution to the workplace.
• Reward – intrinsic (relate to the job eg responsibility, job promotions) &
extrinsic (for performing job eg wages, phone, car)
• Examples include performance-based pay, a bonus or participation in share
purchase plans where employees receive shares in the organisation as a
way of motivating them to work harder or more effectively (in the hope the
share price will increase).
• Non-financial rewards include personal and public recognition of work well
done (such as an award, for example ‘Employee of the Month’), a larger
office, a changed job title, or positive feedback by the manager at the end
of a job or project.
• If recognition, rewards, training and development are all used in a positive
manner, it is likely that the organisation will have a more productive and
motivated workforce.

37. Recognition and reward
Performance Management
• Involves various methods of achieving maximum performance levels
that are possible from employees.
• Close link with motivation

38. Performance Management
• A process of motivating employees through setting goals,
• Measuring the achievement of those goals,
• Giving feedback, and
• Training for improved work performance.
• Can be applied to an organisation, department, team or employee.
• A component of performance management is performance reviews (appraisals),
which aim to examine and evaluate the work performance of employees against
predetermined standards, and to provide feedback to the employee to show
where improvements are needed.
Organisations can use a range of performance management systems to make a
judgement, including:
• Management by Objectives where the focus is on continuous improvement and
goals being set across the entire organisation;
• or a comparative standard system where employees are rated against one
another in terms of their performance.

39. Performance Appraisals 360* Feedback
Employee
to be
appraised
Supervising
manager or
HR manager
A customer
or client
An employee under the
person to be appraised
A colleague

40. Termination phase
Termination
• When an employee leaves the particular workplace, ending the
employment relationship.
• Voluntary & involuntary
Retirement
• A form of voluntary termination of employment, but the employee
does not intend to continue working as they have decided to
permanently leave the workforce.
Resignation
• When an employee decides to voluntarily leave one organisation and
take up a paid position with another organisation. If an organisation
experiences high resignation rates, then in the exit interview,
management should investigate why employees are leaving.

41. Redundancy & Retrenchment
Redundancy
• When the job a person does no longer exists eg technological
changes, merger.
• Permanent elimination of job
• Voluntary & involuntary
Retrenchment
• Due to lack of sufficient work to keep employee fully occupied.
• Related to economic activity

42. Dismissal (summary & dismissal on notice)
Where the behaviour of employee is unacceptable and organisation
terminates their employment.
Summary – Serious breach, instant termination
Dismissal on notice – identified during appraisal process and given time
frame.

43. Revision Strategies
• Learn each dot point in study design.
• View online video tutorials in WIKI.
• Complete EDROLO activites
• Textbook end of chapter review questions & prac sacs
• Summarise notes.
• Past VCAA exam questions
• ASK TEACHER FOR HELP/CLARIFICATION

44. Termination issues