- Grade: HSC
- Subject: Business Studies
- Resource type: Notes
- Written by: N/A
- Year uploaded: 2021
- Page length: 15
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Resource Description
Role of Human Resource Management
Strategic Role of Human Resources
- Refers to the management of the total relationship between an employer and employee, it links people related activities to the strategy of a business.
- Its strategic role is to provide the business with people who have the skills & attributes required to achieve the long-term goals of the business.
- To ensure HR adds value by developing and maintaining a workforce that is efficient, productive, loyal, flexible & adaptive to change
Interdependence With Other Key Functions
- Works with HR to ensure business has recruited staff with skills & experience necessary to produce the product.
- Implements t&d programs
- Involved in product design & development. HR trains for their departments.
- In many cases staff are public face of the business → actions towards consumers influence their decision to purchase & recommend to others.
- Helps HR achieve objectives & is main source of performance measurement data (earnings, productivity, customer satisfaction) which provides insight into the staffing and development needs of a business.
- HR managers must work within budgets provided by finance to fund training & development, workplace education issues, WHS, and remuneration.
Outsourcing
Refers to the transfer of a business function to an external service provider, often to obtain a cheaper and more superior service.
- Human Resource Functions
- HRM is the most likely corporate function to be outsourced, mainly in its traditional areas such as recruitment, induction, training, payroll. It reduces the need for the business to employ full time staff.
- Increasingly occurring among small to medium businesses that have the same HR Needs as large firms but lack the resources to support a full range of specialist functions.
| Advantages |
Disadvantages |
- Enables business to focus on their core business
- Can reduce cost
- Improve quality
- Enters contract with another business meaning business can seek compensation if goods/services are not delivered in terms of the contract.
|
- Cost savings not always achieved
- Loses a degree of control
- Employee’s may feel displaced & experience incompatibility working with people from other businesses
- Outsourced firm may lack understanding of business culture & existing issues
|
- Using Contractors – Domestic, Global
- Contractors are independent and are not subject to the regulations and directives of a business.
- Reasons why businesses hire contractors include they may want to temporarily fill a position & they are also cost effective as there are no “on costs” (e.g. workers compensation, holiday pay).
- Problems that may arise from contracting include lack of loyalty & time lags.
- Employee’s are subject to contract of service: they offer their services to a business on a regular basis and are subject to the lawful control/authority of the employer.
- Independent contractors subject to contract for service: employment not ongoing and an agreed fee is paid in return for their service, which they will provide usually for a fixed period.
- Contractors responsible for own tax requirements whilst with employees, the business is responsible for PAYG tax deducations & super.
Domestic
- Advantageous as expert knowledge is based on how AUS businesses operate & easy communication as same time zone
Global
- Many firms under pressure from global competition now contract foreign businesses to provide a readymade workforce
- Reduces costs and allows business to access labor without having to consider issues such as minimum labor requirements & WHS laws
- Risks include difficulty controlling quality & reliability of service, cultural differences may impact on customer service
Key Influences
LESSTE – Let Every Social Science Teacher Explain
Legal – The Current Framework
- The Employment Contract
| Common Law
(rights and obligations of employers and employees) |
- Common law is developed by courts and tribunals.
- Employers and employee’s have certain rights and obligations to each other that have been identified by the court system as legal standards of behavior.
Employer Obligations
- Providing work (if no work must give paid leave option)
- Fair income (as set out in award, collective agreement or employment contract)
- Cover work related expenses
- Meeting requirements of of industrial relations legislation
- Duty of care (providing a safe and healthy workplace e.g. minimizing risk, providing training)
Employee Obligations
- Obey lawful and reasonable commands made by employer
- Use care and skill in performance of work activities
- Act in good faith and the interests of the employer
- Duty to disclose relevant information to employer (e.g. if they have a health condition that could lead to work-related accident)
|
| Minimum Employment Standards |
- National Employment Standards (NES) set out in the Fair Work Act 2009.
- Comprises of 10 minimum workplace entitlements applying to all employers & employees in the workplace relations system.
- Provides safety net to employees, particularly the most vulnerable/lowest paid.
- maximum weekly hours of work (38 + reasonable additional hrs)
- requests for flexible working arrangements
- parental leave and related entitlements
- annual leave (4 weeks paid a year)
- personal/carers leave & compassionate leave (10 days paid, 2 unpaid)
- community service leave (e.g. jury duty)
- long service leave
- public holidays
- notice of termination and redundancy pay
- provision of a Fair Work Information Statement.
|
| Minimum Wage Rates |
- Reviewed annually by Fair Work Australia’s minimum wage panel.
- Panel also provides range of fair minimum wages to juniors, trainees & disabled employees.
- Since 2010, the employee’s base rate of pay for ordinary hours has been determined by:
- Award or agreement covering them
- National minimum wage (applies to award & agreement-free employee’s – currently $17.70hr)
|
| Awards |
- Modern Awards commenced in 2010
- Legally binding documents that operate with the NES to regulate minimum terms for a specific industry.
- Includes minimum wages, overtime and penalty rates, dispute settlement procedures and other entitlements based on industry.
|
| Enterprise Agreements |
- Collective agreements made at workplace level between employers & employees regarding terms and conditions of employment.
- Either between employer and group of employees or trade union
- FWA assists in the making of, deals with any disputes arising under its terms & must assess and approve.
- Can be tailored to meet needs of particular enterprises and can offer employees above minimum pay & conditions covered in awards.
- Must pass FWA’s “better off overall test” compared to the modern award
|
| Other Employment Contracts |
- Provides significant flexibility to vary wages and conditions to suit individual needs.
- Commonly used for executives, managers and other professionals with above average incomes
- Fixed-Term– for a specific period e.g. to replace absent staff or complete a project
- Temporarily or irregularly employed & paid by the hour.
- Higher pay than part-time and full-time employees as they receive
- Not entitled to sick or holiday leave, but receive casual loading (↑ rate than permanent)
- Work less than standard full-time hours in relevant award or agreement
- Unlike casuals, they do have access to entitlements offered to full-time employees, but on a pro-rata basis (in proportion to the % of time they work compared to full time)
- 35-40hrs per week
- Permanent basis and paid hourly wage or set annual salary
- Contract includes super, hours of work, overtime, annual leave/sick leave, etc.
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