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!"#$%&' )*+,-./0+1-* +- !/23* "45-/,04 #3*36424*+

LECT0RE 0NE
What is BRN.
- Focus is on managing people within the employei-employee
ielationship! vital as if it uoesn't woik theie aie negative effects foi a
business
- Specifically, it involves the effective anu piouuctive use of people in oiuei
to achieve an oiganisations stiategic business objective anu goals
- BRN is conceineu to iesolve key issues such as:
o Quantity anu quality of employees iequiieu now anu in the futuie
to satisfy oi exceeu oiganisation objectivesieciuitment anu
selection
o Stiategies most effective in attiacting, choosing anu efficiently
incoipoiating employees into the oiganisation
o Keeping well chosen employees piouuctive, satisfieu anu
motivateu to contiibute to oiganisational giowth anu
effectiveness- iewaiu systems taking account of uiffeiences
o Stiategies iequiieu to ensuie that all BR activities aie linkeu anu
accountablemaking BR manageis accountable foi inciuences
that happen

Challenges foi BRN Touay:
- The neeu foi moie skills! SBRN
- Technological auvanceu
- Nanaging the talentuoesn't always stay anu can move on uue to
competition
- Theie is moie expecteu of us

Stages in the Bevelopment of BRN:
- Stage 1: welfaie & auministiation- 19uu's-194u's
o Nanaging people if they weie lookeu afteipeisonal involvement
with no link to business
- Stage 2: Welfaie, auministiation, staffing anu tiaining- 194u's-197u's
o Restiuctuiing, inciease in unemployment anu a lot of uiscontent in
the woik place
o Tiying to get the best out of employees thiough iewaius to uo
moieuiiven by goals anu taigets
- Stage S: BRN & SBRN- 197u's-199u's
o Change of games socially anu economically
- Stage 4: SBRN into the futuie- 199u's-now
o Bow to manage anu uiscuss iamifications etc.! wheie aie we
now- the neeu to iesponu quickly anu cultuie wheie the
oiganisation is going

Stage S: fiom Peisonnel Nanagement to BRN
- Shot of peisonnel management anu BRN compaiison
- Change of value in managing people
- Peisonnel= welfaie
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- BRN oi people peifoimancemanagementcultuie
- Nanage people to expect commitment

74,5-**48 #3*36424*+ !"#
9124 3*. 783**1*6
:4,5:40+1;4
Shoit teim, ieactive Long teim, pioactive,
stiategic anu integiateu
75<0=-8-61038 0-*+,30+ Compliance Commitment
>-*+,-8 5<5+425 Exteinal contiols Self-contiol
?2:8-<44 ,483+1-*5
:4,5:40+1;4
Pluialist, collective, low
tiust
0nitaiist, inuiviuual, high
tiust
7,4@4,,4.
5+,/0+/,4A5<5+42
Buieauciaticmechanic
centialiseu,
foimaluefineu ioles
0iganic, uevolveu,
flexible ioles
"-845 Specialiseupiofessional Laigely integiateu into
the management
?;38/3+1-* >,1+4,13 Cost minimalism Naximum utilisation
(human assist
accounting)

The Changing 'Psychological Contiact'
- The employment contiact compiises a set of oveilapping contiactsthe
legal, social anu psychological
- Incieasing emphasis on the psychological contiact between oiganisations
anu theii employees
- Refeis to expecteu tiust, loyalty, iewaiuan employeis belief anu
expectation with an unueistanuing of human motivation foi fosteiing
feelings anu happiness
- Employee engagement is linkeu to a stiong, positive psychological
contiactif ones job is iight but they aien't iight foi the teamhonesty
is vital with communication
- vital to have knowleuge of legislation anu implications uue to bieakuown
in the psych. contiact ! to have knowleuge of the human psychy in the
woikplace

Conceptualising BRN
- Emphasis on the human oi iesouice
- Baivaiu mouel
o Exteinal impacts on oiganisations
o
- Soft & Baiu BRN
o Soft= emotion anu economic, maintaining wellbeing anu the psych.
contiact
o Baiu= goals, objectives, output, evaluation, etc.
" Neeu a balance of both foi goou business piactice
- Relationship with Inuustiial Relations (IR)
- Stiategic BRN
o Besigneu fiist opposeu to being ieactionaiy
- 0nitaiism anu pluialism

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Chaiacteiising Appioaches to BRN as Baiu & Soft
- Baiu BRN focuses on:
o The ,3+1-*38B C/3*+1+1;4 3*. 5+,3+4610 aspects of managing
human iesouices
o Effective utilisation of human iesouices to achieve oigal goals
o Integiating BR policies with business stiategy
- Soft BRN focuses on:
o A moie humanistic appioach- emotional intelligence
o While emphasising the stiategic integiation of BR anu Business
Stiategy, it also views competitive auvantage as something which
ielies on human beings in the oiganisation with supeiioi
knowleuge, commitment, job satisfaction anu motivation
o The aim is to geneiate iesouiceful employees thiough BRN via
employee involvement anu empoweiment
- The iole is to woik with manageis anu to not limit, but invest time so a
team can ieach its goals

Stiategic BRN (What it is touay)
- A stiategy is the means by which an oiganisation seeks to meet its
objectives anu thiough uelibeiate choices
- Being stiategic noimally involves:
o A uelibeiate choice, a uecision to take couise of action iathei than
ieacting to ciicumstances
o It focuses on significant long teim goals iathei than uay-to-uay
opeiational matteis
- SBRN emphasises the neeu foi BR plans anu stiategies:
o To be foimulateu within the context of oveiall oigal stiategies
anu objectives
" Suppoiting goals anu being iesponsive to change, etc.
" To the changing neeus of the society anu the ability to
change with the times
o To be iesponsive to the changing natuie of the oiganisations
enviionment
o 0iganisations have to change so BRN neeus the iight people at the
iight time

BRN anu Inuustiial Relations (IR)
- Biffeient views of the ielationship between BRN anu IR aie baseu on
views that expeits in each fielu have of the othei e.g.:
o Foi some in IR
" BRN is an aiea of management competency within the
bioauei fielu of IR
" BRN poses a thieat to IR e.g. soft BRN may ieuuce the neeu
foi unions
o Foi some in BRN
" IR is a thieat because inuustiial ielations systems anu
tiauitions inteifeie with BRN stiategy - constiaining
laboui maiket conuitions anu iates
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" IR is a subsystem of BRN anu hence BRN involves
managing IR
" IR is just pait of the total enviionment within which BRN
opeiates
- Both BRN & IR howevei neeu to woik closely togethei

Stiategic BRN



- Seveial types of linkages between BRN anu Business Stiategy have been
iuentifieu:
o Accommouative:
" BR stiategy follows business stiategy- accommouating the
existing neeus which the business stiategy geneiates
o Inteiactive:
" A two-way communication piocess in which BRN
contiibutes to, anu then ieacts to, coipoiate stiategies
o Fully integiateu:
" The BR specialist is involveu as a paitnei in the oveiall
stiategic piocess in both foimal anu infoimal inteiactions
with the highest levels of managementvalue as a seivice

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Inteinational Stiategy anu the Role of BRN
- uiowth
- Retienchment
- Stability
- A combination of giowth, ietienchment anu stability
- Inteinational stiategies:
o A global stiategy
o A multi-uomestic stiategy
o A tiansnational stiategy
- BR neeus to extenu stiategy oveiseas anu to sustainmaintain

BRN anu Stakeholueis
- BR manageis must iuentify majoi exteinal anu inteinal influences that
will impact on the oiganisation anu management of its human iesouices
- Exteinal influences
o Political
o Legal
o Enviionmental
o Technological
o Cultuial
o Bemogiaphic
o Social
o Business
o Economic
o IR
- Inteinal influences
o 0iganisational missionpuipose
o 0iganisational objectives
" Stiategies
" Cultuie
" Stiuctuie
" Systems

Piinciples of Stiategic BRN- The 9 C's
- Compiehensiveness
o All aieas of people matcheu closely to business goals
- Coheience
o BR activities integiateu into a meaningful whole
- Contiol
o Contiol system in place
- Communication
- Cieuibility
o Staff tiust top management anu theii stiategies
- Commitment
o Employees motivateu to achieve oigal goals
- Continuous
- Cieativity
o As a basis foi competitive auvantage
- Cost effectiveness
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Ciisis anu Sceptics of Stiategic BR
- Bebate about the extent to which BRN has become a stiategic aiea of
management
- SBRN theoiy assumes that senioi manageis anu BR specialists have the
manageiial capacity anu commitment to engage in bioau anu long-teim
planning
- Reseaich eviuence suggests that SBRN has been constiaineu by seveial
factois:
o Status of BR piactitioneis e.g. iepiesentation on boaius anu senioi
executive committees;
o Lack of acceptance of BRN by senioi mangeis
o Limits to ability of BR piactitioneis to establish a stiategic
appioach anu influence. Why.
" Issues such as uifficulty uemonstiating cieuibility anu
contiibution BR makes to peifoimance

BRN ioles, functions anu competencies
- BR piactitioneis opeiate at S uistinct levels:
o Stiategic
" Involveu in coipoiate anu BR planning
o 0peiational
" BR anu manageis collaboiate foi uevelop action plans anu
foimulate BR policies anu pioceuuies
o Functional
" Line manageis implement policies anu pioceuuies to
ensuie effective people management

Six Functions of Buman Resouice Nanagement
- Reciuitment anu selection
- Peifoimance management
- Remuneiation, pay & conuition
- IR
- Tiaining anu uevelopment
- Woikplace, health anu safety

The Coie BR Functional Aieas
- }ob analysis anu evaluation
- BR planning
- Reciuitment anu selection
- Peifoimance management
- BR uevelopment
- Notivation anu ietention
- Remuneiation
- Benefits
- IR
- 0B&S
- EE0 oi Biveisity management
- Negotiation anu conflict iesolution
- BRN monitoiing anu evaluation
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Ethics of BRN
- Integiity
- Legality
- Pioficiency
- Piofessional loyalty
- Confiuentiality

Summing 0p
- What human iesouice management is
- Bow BRN has evolveu
- The key ways of conceptualising BRN
- The concept of stiategic BRN anu the ielationships between business
stiategy anu BR policy anu piactice
- The coie activities involveu in managing people
- The place of ethics within BRN

LECT0RE TW0

The Context of BRN
- BRN is influenceu by anu in tuin influences factois such as technology,
laws, social values anu economic conuition that exist outsiue the
oiganisations, as well as inteinal factois such as the oiganisation's
cultuie, stiategy, stiuctuie anu systems

SBRN & The Role of the Enviionment (Page 84)
- Is a business shieuuing oi having to giow.
- Planning. Skill shoitage.
- BRN have to iesponu to pioblems accoiuingly

Inteinal Influences:
- Stiategies: an oiganisations objectives influence the type of people it
iequiies, BRN policies, cultuie & stiuctuie
- Cultuie: values, beliefs, assumptions & iituals tell employees how things
aie uon in which behavioui is iewaiueu
- Stiuctuie: influences how jobs aie uesigneu, uecisions aie maue, things
get uone, employees iequiieu
- Systems: how compatible it is with accounting, piouuction, seivices &
uistiibution system

ueiiy }ohnston's Cultuial Web
- The paiauigm:
o Rituals anu ioutines
o Stoiies: how we woik heie, what we uo that makes us belong
o Powei stiuctuies
o Symbols
o 0iganisational stiuctuies
o Contiol systems: e.g. talking about above oi below the line
behavioui

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A Quick Stock-Take of Exteinal Influences (page 69)
- Political: political iueologies can iange fiom suppoiting an inteiventionist
appioach with extensive goveinment iegulation of BRN to one of
minimal involvement
o Neo-libeial: (e.g. genuei uiffeiences anu confiuence etc.)
appioaches suppoit inuiviuualism- contiactualism have laiu the
founuations foi oui legislation
- Legal: laws anu iegulations iegaiuing houis of woik, holiuays, EE0,
sexual haiassment, health anu safety, piivacy, teiminations, etc.! impact
on BRN policy anu piactice e.g. the Faii Woik Act
- Enviionmental: e.g. goveinment anu community conceins! affect job
uesign, health anu safety inuustiial ielations anu the image of an
oiganisation as an employei! flexibility e.g. one paiu uay of volunteeiing

Exteinal Influences
- Technological: the level of technological auvancement anu pace of
change! affect the job uesign, ieciuitment, selection, iemuneiation,
health anu safety, motivation ! can be uownsiue which causes moie
stiess as we aie accessible foi communication thiough technology moie
ieauily available
- Cultuial: histoiical backgiounu, values, noims anu language! all
influence employee views on the iole of BRN anu specific aspects of BRN
such as iewaius, motivation, communication, employee involvement
- Social: changing values anu attituues towaius issues such as uiess, woik,
minoiities, unions, management, social mobility, status, job secuiity anu
quality of life! affect eveiy aspect of BRN! changing social values,
casual Fiiuays e.g., policies can be integiateu foi values, minoiities shoulu
be welcomeu as they offei stiengths

Funuamental Patteins of Cultuial Biffeience
- Communication styles
- Attituues towaius conflict
- Appioaches to completing tasks
- Becision-making styles
- Attituues towaius uisclosuie
- Appioaches to knowing

- Below the suiface:
o Beliefs
o values
o Peiceptions
o Expectations
o Attituues
o Assumptions
" values ovei anu unueineath the seivice

Cultuial Fiamewoiks:
- Bigh Context Cultuies (Asia):
o Inuiviuual ielationships- long lasting
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o Shaieu coues impoitant foi communication
o Authoiity iesponsible foi suboiuinates theiefoie iecipiocal loyalty
expecteu
o Agieements veibal not wiitten
o Insiueisoutsiueis iegaiueu uiffeiently
o Cultuial patteins aie slow to change

- Low context cultuies (0S & Euiope)
o Relationships moie tiansient; cultuie= heteiogeneous
o Nessages expecteu to be explicit; uiiectness is valueu
o Authoiity is uiffuseu to an extent
o Agieements aie wiitten not veibal
o Insiueisoutsiueis aie less uistinguisheu
o Cultuial patteins change fastei

- Bofsteue's uimensions of cultuie
o Powei uistance- hieiaichy: the extent to which less poweiful
membeis of society accept that powei is uistiibuteu unequally
o Inuiviuualism vs. collectivism- society anu legislation: is eveiyone
expecteu to look aftei themselves anu theii families oi aie people
integiateu into 'in-gioups' that aie expecteu to caie foi all
membeis
o Nasculinity vs. femininity: masculinist cultuies tenu to value
achievement anu success moie highly than caiing foi otheis anu
quality of life
o 0nceitainty avoiuance- iisk auveise vs. not (westein societies):
the extent to which membeis aie socialiseu to not accept
ambiguity noi toleiate unceitainty about the futuie

- Elaboiateu by Bonu's iuentification of Confucian uynamism:
o Long teim (China, BK, Taiwan, }apan & Koiea)
o 0i shoit teim oiientation (Austialia, NZ, 0S, 0K & Canaua)

- Qualifications of Bofsteue:
o Baseu on one company (IBN) only
o Shoit guaiu against the 'ecological fallacy' - inuiviuual behaviouis
cannot be 'ieau-off' fiom cultuie

Exteinal influences
- Economic: foi instance, economic activity, unemployment iates, public vs.
piivate owneiship, availability of cieuit, levels of taxes, uegiees of
economic planning ! influence ieciuitment, iemuneiation, laboui
tuinovei, inuustiial ielations etc.
o ulobal economic foi the uFC- the companies that fell thiough aie
most likely the ones that weie pooily manageu
- Inuustiial ielations: factois ielating to IR, such as the oiganisational
climate, goveinment policies, uegiees of unionisation, iole of inuustiial
tiibunals, employee commitment anu quality of woik life! shapes job
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uesign, absenteeism, laboui tuinovei, inuustiial uisputes anu the way pay
anu conuitions aie set in the oiganisation
o Faii woik actgiving back to employees- impacteu BR to manage
people at uiffeient times, have to tieat employees faiilythe asset
of business
- Bemogiaphic: chaiacteiistics of the exteinal laboui maiket such as
numbeis, geogiaphical uistiibution, age, sex, liteiacy, skill anu euucation
levels have a ciucial impact on BRN. E.g. ageing populations, incieasing
paiticipation of women
o Legislation anu woik act foi flexibility- haiuei to get a job ovei the
age of 4S+

ulobalisation
- Besciibeu as 'the incieaseu pace of economic inteiconnecteuness
between uiffeient countiies' (Nankeivis, 2u11, pg. 46)
- Ciitical issue: what effect uoes the global economy anu specific events
such as the global financial ciisis have on stiategic human iesouice
management
- You cannot walk now in a BR job in a business anu not face managing
business oveiseasthe way that business opeiates oveisees touay; iueas
want to be shaieu.
- !"#$$%&'%( *+ ,$*-#$ ./ 0#&#'%1%&2
o Bonuses uesigneu to ieflect cultuial vaiiances between uiffeient
opeiations within the oiganisation e.g. Bayei
- 32#&4#546(#26*& *+ 7*58 95#:26:%(
o Bepenus on:
" Receptivity of local woikfoice to auheie to coipoiate noims
of behavioui
" Effectiveness of expatiiates as agents of socialisation
" Whethei localisation is timely (not just piompteu by cost
consiueiation)
" Appiopiiate to the local enviionment (Singapoie, not
Qatai2 uiffeient ieligious cultuies woik ethics)
- ;((<%( +*5 ./0=
o The incieasing competitiveness anu complexity of maikets anu
opeiating enviionments influences the types of hi stiategies anu
policies uevelopeu
o ulobalisation is allowing skilleu laboui to move like capital acioss
the woilu in seaich of the best compensation anu othei piospects
o uiowing foieign owneiship of fiimsbiings with it uiffeient
management cultuies, legal tiauitions, etc.
o Inteinational tieaties anu piotocols (anu questions of
implementation anu compliance)
o Biffusion of BRN piactices within companies anu between
countiies! offices oveiseas anu be conscious of BR piactices
oveiseas
o Reason foi globalisationthe competitiveness in outsouicing
anything that can be uone on a lowei wage
o Companies incentivising moving to keep goou people anu skills
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o Foieign owneishipmoie acceptance- now welcome to boost oui
economy
- ,$*-#$ 7*58+*5:%( #&4 ,$*-#$ >?%5#26*&(
o We neeu to be accepting anu woik oveiseas if neeueu
o Think global, act localuniveisal managei, skills, behaviouis.
o Think of issues in the big pictuie but act in an appiopiiate mannei
foi locality
- ,$*-#$6(#26*& #&4 "@?%5A:*1?%2626*&= 2"% 61?#:2 *& ./
o Numbei of ieasons to suggest that effective implementation likely
to become moie impoitant
o Naikets becoming incieasingly competitive anu subject to
uisiuptive change
" Shoitei piouuct anu inuustiy life cycle
" Conuitions unueimine value of cuiient iesouices anu
capabilities
o Successful fiims likely to be those that can iesponu iapiuly to
(shoit teim) oppoitunities that appeai
" I.e. those that iapiuly uevelop anu moie impoitantly
implement changes in stiategic uiiection
" Sometimes calleu 'uynamic capabilities'- the ability to
iapiuly iesponu to change ! oiganisations neeu to auopt it
to be uynamic anu change
" Naikets also becoming moie complex anu incieasingly
competitive
" 0iganisations neeu to be able to auoptBR uevelopment
anu the tiaining neeueu foi it

The Austialian Economy
- Ciitical factois incluue:
o Fluctuation in iesponse to global anu uomestic factois;
o Changes in inuustiy anu occupational stiuctuies e.g.
" Becline in agiicultuie! iise in impoitance of
manufactuiing
" Relative uecline in manufactuiing ! iise of seivice sectoi
" The 'new' economy:
Noie flexible oiganisational foims
0nshoie anu offshoie pioviueis (banks,
telecommunications, manufactuiing anu meuical
pioviueis)
Inteinet seivices anu viitual oiganisations
" }obs occuiiing now that uiun't exist 2u yeais ago
" Noie emphasis on past time euucation to ieach the
woikplace eailiei! all about the economy anu ueveloping
it eaily

Bevelopment of Knowleuge Economy
- Context: must be familiai with the histoiy of Austialian economy
- Bistoiical peispective: agiaiian! inuustiial! knowleuge baseu
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- Bepiiving value fiom skill anu commitment iathei than tangible piouucts
piouuceu
- E.g. IBN piouuceu Su% ievenue fiom seivice uivisions iathei than
piouuct uivisions (haiuwaie)
- Impact in Austialia:
o Piimaiy sectoi (agiicultuialmining)
o Seconuaiy sectoi (mfg)
o Teitiaiy sectoi (piovision of seivices) e.g. financial, law,
hospitality

New Ways of Woiking
- Besign of jobs has significantly changeu:
o The self seeking woikei- no longei aligneu to the oiganisation
o Inciease in casualization of woikeis (8.S million woikeis in 2uu7
(27%))
o 0utsouicing: contiacting out non-coie functions of oiganisation),
ensuiing contiol on quality. Impact on oiganisational cultuie.
Issues of tiust.
o Telecommuting: woik uisseminateu back to woikeis home.
Pioblems: monitoiing, impact on Elton Nayo's woik, maintaining
socialwoik uiviue
o Bigh iate in casualization, high iate of woikeis not engageu,
viitual woiluslinking offices all ovei with confeiences anu boaiu
ioom meetings

SustainabilityClimate Change
- Bevelopeu out of notions of Coipoiate Social Responsibility (CSR)
- The pioblem. Peopleoiganisations aie using up the eaiths natuial
iesouices much quickei then they can be ieplaceu
- Ecological footpiint mouellingthe cuiient population's uemanu on the
planet has tiipleu in Su yeais
- Why uo BR manageis neeu to woiiy.
o Inteinal anu exteinal stakeholueis uemanu moie iesponsible foi
enviionmental anu social goveinance
o 0iganisations moie attiactive to investment funus
o Impact on shaie value. - Biiection wanteu to go, to iesponu to CSR,
netwoiking, the way we aie seen & uelivei value to oiganisations
o BR stiategies neeu to uelivei value to the fiim thiough sustainable
woik piactices

Changing Bemogiaphic Chaiacteiistics
- Ageing populationto manage with legislation anu expecting
oiganisations to manage
- Inteigeneiational conflictfounu geneiations co-existing in the
woikplace
- Beclining feitility iates- a uiop in the population theiefoie a skill shoitage
but moie people aie neeueu
- Beclining moitality iates- we aie living longei theiefoie want to woik
longei
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- Incieaseu female paiticipation iates in the woikfoiceequal genuei
contiibutiongone is the pieuominate male woikei; 47% of woikfoice
aie women
- ulobal wai of talent= huge issue of BR

BR Policy & Planning Issues Linkeu to Bemogiaphic Changes
- Woikfoice attiaction anu ietention e.g. an outciy in W.A. foi woikeis with
a skill shoitage in the mining inuustiyhow can we attiact the iight
canuiuates, anu keep them.
- Age anu genuei uisciimination- e.g. female uominateu enviionment-- >
change insiue to welcome the outsiue
- Flexible woiking houisnot a mattei of ueseiving them; is it acceptable
to a business.
- Woik-lifewoik-family balancecatch= technology; we cannot escape it
anu aie constantly tieu anu on guiue
- Caieei management- how uo oiganisations manage woikeis who uon't
want to stay! iewaiuing anu managing oui caieei! know what's on
offei anu uesiieu path- thiough iewaiu anu tiaining

Women & Woik
- The 'Nale Bieauwinnei Nouel':
o The 'iueal' woikei
o Baivestei juugement 1997
o The context of eaily uecisions of wageschangeu; now much of
BR neeus to be awaie of
- Shift to uual eainei families
o Woman now constitute appiox. 47% of the total woikfoice
o Appioximately 48% of motheis now in paiu woik (incluuing 4S%
of motheis with chiluien unuei 6 yeais)
- Incieaseu emphasis on:
o Family fiienuly, uiveisity anu woik-life policies
o Nateinity anu paiental leave piovisions
o Impioving women's iepiesentation in senioi management anu
boaius
o Emeiging iecognition that a one size fits all iesponse is not
sufficient

Changing Natuie of Woik & Employment
- Flexibility:
o Numeiical: woikfoice uiviueu into:
" C0RE woikfoice
" Peiipheiy oi contingent woikfoice
" Functional
" Woiking time
" Consiueiable uebate ovei who benefits fiom the new
flexibility
- Woiking houis:
o Longei anu haiuei
o Non-stanuaiu woiking week
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o 12- houi shifts
o Eviuence of woik intensification anu incieaseu stiess on home anu
families
- Casualization:
o via casual employment, agency hiie sub-contiacting etc.
o Shoit & long teim employment
o Limiteu access to benefits anu leave
o Beteiioiating skill base
- The New Employment Contiact:
o Inuiviuualiseu agieements anu fixeu-teim contiacts
o Effects on job secuiity
o Negotiable entitlements
o Scaling uown of employee entitlements ovei time
o N.B. Faii Woik Act (2uu9) national employment stanuaius anu
othei piovisions

Summing 0p
- Key featuies of the inteinal anu exteinal enviionment which influence
BRN
- The changing context in which BRN opeiatesglobally anu uomestically,
economically, politically anu sociallyhas contiibuteu to BRN's iapiuly
changing iole anu its emeigence as a key stiategic paitnei in
management
- BR piactitioneis neeu to continue to be iesponsive to changes in the
oiganisations enviionment
- BR neeus to become a moie integial pait of 0ig stiategy uesign

LECT0RE TBREE
Employment Relationships, Inuustiial Relations & BRN
Looking at the basic concepts of IR & how it ielates to SBRN

0bjectives:
- IR & how it uiffeis fiom BR- an institutional analysis, employeis anu
connections with tiaue unionsmeuiating conuitions of woik

BRN & IR:
- The teim IR is useu to uesciibe the foimal ielationships between
employeis anu tiaue unions oi othei collective gioupings of employees,
togethei with the institutional aiiangements that aiise fiom those
ielationships
- 0thei teims useu to covei bioauly the same subject incluue employment
ielationships, employee ielations anu woikplace ielations
- The ielationship is often uneasy & contesteu
- Foi many BR piactitioneis, IR specifically iefeis to management of
employment ielationship with a unioniseu woikfoice (pg. 8S TB)
- BR manageis! to be effective neeu to unueistanu IR anu all that it
coveis; uynamics, contiauictions & tensions of E.R


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What is the Employment Relationship.
- An %:*&*16: %B:"#&'%- an agieement between the employei anu
employee oi the sale of the employee's potential to woik
o What you get foi giving up youi time to woik
- A ?*C%5 5%$#26*&("6?Dwheieby the employee agiees to submit to the
authoiity anu uiiection of the employei
o To meuiate this is common law uutiesopen enueu anu uon't
uiaft foi eveiything - meuiating contiol anu uispute iesolution
with the evolution of employment law with awaius
- It is also a :*&26&<*<( #&4 *?%&A%&4%4 contiact:
o Employees can mouify anu iestiict theii actual woik effoit;
o Employees can combine collectively to challenge manageiial
authoiity




The Employment Relationship
- The multiuimensional natuie of the employment ielationship cieates the
potential foi conflict between the paities- inuustiial conflict- ovei such
issues as wages, employment conuitions anu manageiial pieiogatives
- This gives iise to IR systems which aie the 'iules, iegulations anu
institutions that govein the employment ielationship anu which set the
teims anu conuitions of woik anu employment'
- Is inteiuepenuent in natuie - e.g. to some extent, employeis must seek a
coopeiative ielationship with woikeis to gain theii consent
o Woikeis have an inteiest in the oiganisations viability
o When employees take a stiike actionmust have a foimal action
of appioval wheie as employeis uon't
- BRN influences anu is influenceu by this system. BR piactitioneis must
woik within the iegulatoiy fiamewoik it pioviues

Appioaches to Inuustiial Relations
- What is a fiame of iefeience:
o Refeis to a peisons peispective on the woilu
o Compiises the assumptions, values, beliefs anu convictions we use
to inteipiet anu unueistanu events in the woilu aiounu us
- The effect it has:
o It ueteimines:
" Bow we expect people to behave
" Bow we ieact to peoples actual behavioui anu,
" The methous we chose when we want to change that
behavioui
- Fiames of iefeience anu the employment ielationship:
o Fiames of iefeience ueteimine how manageis manage, how
employees iesponu anu what othei societal gioups think
- Theoiies embeuueu aie assumptions of how paities will inteiact


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Appioaches to IR:
- 0nitaiist:
o IR is giounueu in mutual coopeiation, team woik, anu a shaiing of
common objectives
o Theie aie no legitimate conflicting inteiestsconflict is
pathological
o Tiaue unions aie iegaiueu as competitois foi employee
commitment anu coopeiation, inteifeiing with managements'
iight to manage
- Pluialist:
o 0iganisations aie a coalition of competing inteiest gioupsit is
managements iole to meuiate those inteiests
o 0nions aie legitimate iepiesentatives of employee inteiests
o A stiong union movement is a necessity
o Stability in IR is piouuct of concessions anu compiomises between
management anu unions
o Recognition of competing inteiests! sees tiaue unions as
legitimate actois
- Rauical oi Naixist:
o Conflict between employee anu employeis is inevitable piouuct of
competing inteiests each in oui society
o Tiaue unions aie logical employee ieaction to exploitation anu
pait of political piocess to funuamentally change society;
o BRN is manipulative anu exploitative of employees

Stiategic Employment Relations: The Influence of Law
- Suggest employeis choose to avoiu tiaue unions
- Austialian woikplace agieementsawaius (AWA'S)
- BR- uesigning systems within these fiamewoiks anu laws that allow them

Employment
Relations
Avoiuance Accommouation Coopeiation
Compliance Powei anu
iesponsibility
foi maintating
the business aie
concentiateu in
management
while
uiminishing the
union's iole
The paities
acknowleuge
conflicting
inteiests of
employees anu
employeis;
emphasis on
achieving equitable
outcomes
The paities place
joint emphasis on
mutual goals anu
integiative
potential, as well
as on incieasing
the "size of the
(iesouice) pie"
Commitment New plant set-
ups at
uieenfielu sites
Eviuence of paities
expeiimenting
with quality ciicles
anu othei foims of
employee
paiticipation
piogiams
Emphasis is on
coopeiative
paitneiships,
manifesteu in
joint stiuctuies
anu piocesses foi
shaiing powei
anu iesponsibility
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The Paities in Austialian IR:
- State & Feueial uoveinments
- Inuustiial tiibunals
o Faii woik Austialia meuiates inteiests anu ensuie woik gets
complete
- State anu feueial employeis
- Employei associations
o Lobby gioups
- Tiaue unions
- Employees

uoveinments & IR:
- Legislation: faii woik act! iegulating uispute management
- Employei:
- Tiibunals:

- Since 19u4 in Austialian, the foimal IR system has hau a iich histoiy
involving goveinment- sanctioneu compulsoiy conciliation anu
aibitiation - a unique, centialiseu system foi iesolving conflicts anu
setting woik iules
- Buiing the 198u's, piessuies to inciease flexibility au efficiency leu to
changes in IR laws that shifteu the emphasis:
o Fiom employei-union baigaining to inuiviuual negotiations; anu
o Fiom nationalinuustiy-level baigaining to the woik place level
- This culminateu in the highly contioveisial Woik Choices legislation
which seemeu to shift powei uiamatically towaius the employei
- Woik Choices was ieplaceu by the Faii Woik Act (2uu9)
- Piioi Tiaue 0nions hau a capacity to get an awaiu anu tiibunal passeu
- 0nuei Faii Tiauethey cannot aibitiate- unless paities give tiibunals
anu powei to uo so
- BRall about soiting out issues without exteinal influence! about
choice

0nions & the 0nion Novement
- Tiaue 0nions:
o An oiganisation, consisting pieuominately of employees, the
piincipal activities of which incluue the negotiation of iates of pay
anu conuitions of employment foi its membeis (ABS uefinition)
o Theie aie appioximately 1Su unions in Austialia. They woik both
inuepenuently, anu in a cooiuinateu way- as a movement thiough
the peak bouy, the Austialian Council of Tiaue 0nions
o They still play an impoitant iole, howevei stagnating anu not as
influential touay

0nions & the 0nion Novement
- Appioximately 19% of the 1u million employees in Austialia aie
membeis of a union (known as union uensity)
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- In 19S4, S9% of Austialia's woikfoice was unioniseu. Between 199u anu
2uu8, uensity ueclineu fiom 4u.S% to just unuei 2u%, but the sliue has
iecently been aiiesteu
- 0nion uensity contains the following patteins:
o A highei piopoition in the public sectoi than the piivate sectoi
o Bighei iates of unionisation among full-time, than pait-time
woikeis
o Bighei unionisation levels foi men than women
o Bighest iates of unionisation in powei, watei anu gas supply;
tianspoit anu goveinment; auministiation anu uefence sectois

0nions & the Faii Woik Act, 2uu9
- Inuustiial Association: the teim useu to uesciibe the oiganisations that
may iepiesent eithei employees oi employeis;
- Fieeuom of association: the iights of employees to belong oi not belong to
a union. The FW Act pioviues that employees aie fiee to:
o Belong oi not belong to a union
o Be iepiesenteu oi not by a union
o To paiticipate oi not in lawful inuustiial activities
- 0nions aie not uefineu as paities to agieements but aie coveieu by the
agieement if they paiticipateu in the negotiations
- Negotiation piovisions unuei FWA is between employmentfocus on BR
appioach anu not heavily union baseu
- Law is ieflecting a unitaiist appioach as is the Austialian economy

Employeis & Employei Associations
- In the past- employeis foimeu employei associations to iepiesent them
in multi-employei baigaining anu befoie inuustiial tiibunals
- The emphasis of enteipiise baigaining on single employei baigaining has
left to a shift in the iole of employei associations moie to assisting
inuiviuual employeis
- Employei associations also pioviue seivices in tiaining, awaiu
inteipietation, legislation upuates, BRN, uispute hanuling anu how to
countei union activity
- With changing political anu union enviionments, employeis have auopteu
vaiying tactics:
o Some have become incieasingly aggiessive with unions, while
auopting inuiviuualiseu employment contiacts with employees
" E.g. some key mining employeis
o 0theis have woikeu towaius gieatei employee commitment with
union coopeiation
" E.g. NAB (Inteinational Fiame of Refeience with unions)
o Something meuiateu uue to the cuiient state of law

Inuustiial Relations Piocesses
- The piocesses of IR ueal with the mechanisms foi establishing wages anu
employment conuitions anu hanuling inuustiial uisputes. Piocesses
incluue:
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o Collective baigaining- the piocess of negotiating between
management anu gioups of employees anuoi theii unions;
" The methou useu to iesolve conflicts of inteiest between
unions anu employeis
o Conciliation- the piocess of a thiiu paity such as the cuiient
national tiibunal, FWA assisting management anu unions to ieach
an agieeu settlement, an alteinative may be piivate meuiation;
o Aibitiation- the piocess of a thiiu paity such as FWA making a
juugement
- Tiauitionally, uecisions of the AIRC ielating to wages anu conuitions weie
calleu aibitiateu awaius. Negotiateu agieements which the tiibunal
iatifieu weie calleu consent awaius
- Nouein awaius now foi one of the basic founuations of wages anu
conuitions unuei the FWA 2uu9
- Two main types of baigaining: collective & enteipiise baigaining
o Collective: agieement by employeis anu unions on the geneial
teims unuei which employees woulu consent to woik
" At the enteipiise level anu piinciple of uFB; collective
baigaining is the key piocess in the cuiient Austialian
inuustiial ielations iegime
o Enteipiise: baigaining that occuis at the enteipiise level anu with
the conceins of the enteipiise in minu
" Agieement is between an employei anu the unions that aie
most likely to iepiesent the new employees.

The Baigaining Fiamewoik
- Collective baigaining has been the customaiy way of settling many
inuustiial uisputes in Austialia
o Pieviously, the national tiibunal (foimeily the AIRC) encouiageu
paities to tiy to iesolve a uispute by uiiect negotiation befoie
getting involveu in the conciliation piocess. Aibitiation was a last
iesoit option
- The aiiangements by which the teims anu conuitions of woik anu the
employment ielationship aie ueteimineuaie know as the baigaining
fiamewoik
o Establishes the 'iules of the game' anu 'iules of the paities'. These
aie usually laiu uown by legislation

uoou Faith Baigaining: Reflecting an Integiative Appioach.
- Agieement making is still fiameu between an employei anu inuiviuual
employee
- Tiaue unions have no inheient piivilege ovei othei baigaining
iepiesentatives that an employee may appoint
- Bowevei the ie-inseition of uoou Faith Baigaining (uFB) obligations may
leau to a conveigence in theoiy anu piactice
- Expects that the paities will attenu the meetings aiiangeu, will pioviue
infoimation anu iesponu to pioposals in a timely mannei anu will also
give genuine consiueiation to the pioposals fiom the paities in
negotiation
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Possible 0utcomes.
- Enhance the coveiage of collective baigaining
- Euucate paities about best baigaining piinciples
- Pioviue inuustiies with stiong union coveiage to consoliuate theii
position
- Allow inuiviuual employees to exeicise theii iights to enhance woikplace
uemociacy

Bowevei.
- Will uFB encouiage a shift towaius a 'high ioau' appioach by employeis.
- Can you legislate foi commitment.
- Will this new eia of collective agieement making be about iuentifying
common inteiests anu new solutions oi will it be about taking back 'lost
giounu'.
- Recent inuustiial action figuies

The Austialian Baigaining Fiamewoik

Legislation Faii Woik Act 2uu9
Institutions Faii Woik Austialia (encompassing the Faii Woik 0mbuusmen
anu the Faii Woik Bivision of the Feueial Couit)
Paiticipants Employeis, employei associations, employees, unions
Piocesses Collective baigaining, 'uFB', ueteiminations foi low-paiu woikeis
in special ciicumstances
Instiuments National Employment Stanuaius (NES), mouein awaius anu
enteipiise agieements (union & non-union)

Summing 0p
- Inuustiial ielations anu BRN aie both conceineu with the ielationships
between employees anu employeis at woik
- Foi BRN piactitioneis, the IR systemits paiticipants, the fiamewoik,
fiames of iefeience anu the systems outputspioviue a continuous
souice of iegulation anu influence ovei BRN policy anu piactice
- An unueistanuing of this system is theiefoie ciucial to the effective
management of people

LECT0RE F00R

BRN & TBE LAW

0bjectives:
- Examine the two main souices of legal obligations in the employment
ielationship- the common law anu the statute law
- Exploie the iange of BRN issues which aie subject to legal iegulation
- Pioviue an intiouuction to the national inuustiial law system - the Faii
Woik Act (2uu9) anu its main piovisions
- Consiuei the implications foi BR policy anu piactice

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Souices of Legal 0bligations:
- The BR piofession must be familiai with the legal fiamewoik which
goveins the employeiemployee ielationship anu the legal issues which
aiise within employment ielationships;
- Law in Austialia oiiginates fiom two main souices:
o Common law- cieateu by juuges on pievious cases e.g. bullying anu
haiassment in the woikfoice wheie manageis as well as business'
can be fineu
o Statute law- cieateu by pailiament- a iesponse to issues in society
anu the economy

Befining the Employment Relationship
- What is the ER. Can be a blui; but is impoitant to establish as it coulu
be a subcontiact otheiwise
- The iules anu piocess peculiai to the employei anu employee
- It is becoming incieasingly uifficult to tell who an employee is. Some
factois howevei incluue:
o The iight to exeicise uetaileu contiol ovei the inuiviuual
o If the woikei is 'integiateu' into the hiiei's oiganisation
o If the woikei is iequiieu to weai a unifoim
o If taxation is ueuucteu fiom the woikei's pay
o If the inuiviuual ieceives benefits such as sick leave oi holiuay pay

Souices of Legal 0bligations
- Two main aieas of common law - wheie juuges have maue uecisions
peitinent to employment - :*&25#:2 $#C #&4 &%'$6'%&:%
- Statute law:
o Laboui law- goveins the inuiviuual employment ielationship
o Inuustiial law- iegulates collective ielationships;
o Bisciimination law;
o 0B&S laws;
" Now W, B&S to stanuaiuise acioss all states of A0S
o 0thei e.g. chilu employment, public sectoi employment
- Employeis have a uuty of caie

Souices of Legal 0bligations: Common Law
- Contiacts of employment pioviue essential aspects of the employment
ielationship;
- Woikplace policies: may iegulate viitually eveiy aspect of employment
e.g. uiscipline, confiuentiality, EE0, teimination, etc.
They aie not iulesbut guiuelines to change cultuie
to motivate anu put a fiamewoik
o Bo policies foim pait of the contiact of employment.
" If the contiact iequiies the employee to abiue by the teims
of company policies then those policies aie incoipoiateu
into the contiact anu aie enfoiceable
- The common law also establishes the uuties of both employeis anu
employees which exist at law inuepenuently of the contiact e.g.
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o The employei's uuty to pay an employee wages anu to give
ieasonable notice of teimination, etc.
o The employee's uuty of obeuience, goou conuuct anu act with
fiuelity anu goou faith
" No longei obeuience useu howeveibut to be honest anu
open

Souices of Legal 0bligations: Statute
- Feueial anu state-baseu employment law also iegulates employment
ielationships anu inuustiial ielations
- The FWA aims to pioviue a unifieu system of inuustiial law in Austialia.
Some employees iemain coveieu by state-level inuustiial law, wheie theii
employei is not a &#26*&#$ (@(2%1 %1?$*@%5 coveieu by the FWA
- The FWA is the cuiient majoi feueial inuustiial legislation. It ieplaceu the
7*58?$#:% /%$#26*&( E1%&41%&2 F7*58 !"*6:%(G E:2 HIIJ. Bowevei the
Commonwealth goveinment's inteivention uateu fiom the !*&:6$6#26*& K
E5-625#26*& E:2 FLMINGO
- 0seu to be on inuiviuual awaiusfiustiating with inteistate offices etc,
- Conciliation was meuiation of employeeemployei matteis

Impoitant of Contiact & Policies


The Legislation- A Biief Bistoiy
- Feueial & State Inuustiial Relations Systems:
o Commonwealth Couit of Conciliation anu Aibitiation est. 19u4
o State goveinments establisheu theii own inuustiial tiibunals oi
wages boaius
o These bouies piesiueu ovei a highly centialiseu anu iegulateu
system of employment law
" veiy little uecisions in the woikplace
o Awaius coveieu the majoiity of woikeis (8u% until the late 198u's
& up to 1S% moie influenceu by awaius) |it wasn't efficient in the
enu howeveij
o Ninimum iates of pay anu conuitions weie set by awaius wheie
appiox. 96% of uisputes weie settleu by consent awaius
o National wage cases anu test cases establisheu majoi changes in
wages anu conuitions acioss the boaiu
" Stanuaiuise no moiebaseu on skills touay

Phase of Refoim fiom miu-198u's

1) Cooiuinateu oi manageu uecentialism (1987-199u)! change of economy
with financial uecline
2) Cooiuinateu flexibility (1991-1996) e.g. Awaius. - Baseu on skill knowleuge;
not just ageflexibility anu iotating houis
S) Fiagmenteu flexibility (1997-2uu6)! woik choices tuineu oveisiuing with
employei too heavily (pailiament)
4) 0nifieu national system (2uu6-2uu9)
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S) Now ie-balancing the powei in the employment ielationship! pluialist
appioach: a numbei of iueas conflictinglooks at conflict as positive anu
negativeopposeu to unitaiist with all the same iueas anu unions; theie aie
many paities on boaiu

A Fiagmenteu Appioach to Regulation - A snapshot fiom Qantas
- The legacy of P"% 7*58?$#:% /%$#26*&( E1%&41%&2 F7*58 !"*6:%(G E:2
HIIJ
- Re-asseition of manageiial pieiogative
- Legislation piemise on both paities 'choosing' the most appiopiiate foim
of inuustiial agieement foi theii paiticulai ciicumstances
- Piobleminequality in baigaining powei, especially foi ESL
- Pioblem. Baigaining piovisions baseu on a contact mouel of
agieement making it 'take it oi leave it' basis. Laboui maikets anu
inuiviuuals uo not always make choices that maximise theii utility
- 0utcome:
o 'An Iiish Stew' (Alan }oyce, CE0 of Qantas) of stiategies to ueal
with sections of the business
- Result: union, non union anu Inuiviuual agieements baseu on stiength of
inuustiial actois acioss the business
- Eviuence of a complianceavoiuance stiategy
o Flying unuei the iauaionly completing tasks anu becoming
manipulative
- Encouiaging small business' to give employees a lack of piotection foi
unfaii uismissal, etc,
- Lack of powei foi ESLas they aie just gieatful to have a job

The Faii Woik Act- Institutional Stiuctuie
- Austialian Faii Woik Act has office of ombuusmenstiuctuieu feueially
as a national legislation
- Faii Woik Act Institution
o Faii Woik Austialia
" Incluuing the minimum wage panel
o 0ffice of the Faii Woik 0mbuusmen
" Incluuing Faii Woik Inspections
o Faii Woik Bivisions of the Feueial Couit & Feueial Nagistiates
Couit

Faii Woik Act- Nain Piovisions
- Faii Woik Austialia (pt S-1) anu the Faii Woik 0mbuusman (pt S-2)
- Ninimum wages set (pt 2-6)
- 1u minimum conuitions- NES stanuaius e.g. foi ieuunuancy money &
iewaius
- uoou Faith Baigaining (s2228)
- Piotecteu inuustiial action (pt S-S)! a piocess via legislation
- 0nion iights of entiy (pt S-4)
- Types of agieements (s172)
- 0nfaii uismissal iegime
- Small business coue (foi some piovisions vaiieu foi small businesses)
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The National Employment Stanuaiuspioviues a flooi of minimum conuitions:
- 1u National Employment Stanuaius
- Faii Woik Act (2uu9) Pait 2-2
o Naximum houis of woik
o Requests foi flexible woiking aiiangementsheavily weighteu foi
family e.g. stuuents may be moie likely to be iejecteu foi extenueu
leave uue to full time stuuy
o Paiental leave
o Annual leave
o Peisonalcaiei's leave
o Community seivice leave e.g. foi juiy uuty
o Long seivice leave
o Public holiuay woik
o Notice of teimination anu ieuunuancy pay
o A Faii Woik Infoimation Statement ! eveiy new job must
incoipoiate this

Auuitional Instiuments of Regulation
- Nouein Awaius (FWA Pait 2-S)
o Nay incluue 1u conuitions of employment
o Revieweu eveiy foui yeais
o Apply to all employees they tiauitionally applieu to (income
thiesholu)
- Enteipiise Agieements (FWA Paits 2-4)
o Can be single, multi-enteipiise oi gieenfielus agieement
o Employees must vote to accept
o Nust satisfy 'bettei off oveiall' test
o Nust not contiavene NES
o 0veiiiue awaiu once maue
- 0nfaii Bismissal (FWA Pait S-2)
o Piotection against '0nfaii Bismissal' aie uefineu as in S.S8S
" Pooily piesenteu in Woik Choices which Faii Woik Act
helps out

uoou Faith Baigaining
- Attenuing anu paiticipating meetings
- Bisclose ielevant infoimation a timely mannei;
- Responu to pioposals maue by otheis baigaining iepiesentatives
- uive genuine negotiationconsiueiation to pioposals of baigaining
iepiesentatives
- Refiain fiom 'capiicious' oi 'unfaii' conuuct that unueimines fieeuom of
association oi collective baigaining
- Recognising electeu baigaining iepiesentatives

Impoitance of Enteipiise Agieements
- Woikplace agieements: a legally enfoiceable inuustiial instiument
(outsiue the iealm of piivate law) negotiateu between an employei anu
employees (oi theii iepiesentatives incluuing tiaue unions)
- E.g. Nacquaiie 0niveisity Enteipiise Agieement
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- Why have an agieement.
o Not happy with awaiu piovisions (not tailoieu to specific
conuitions of each enteipiise)
o Secuie a numbei of woiking conuitions e.g. wage iates
o Baving all employment ielateu issues, entitlements anu piocesses
iegulateu into one uocument

Nouein Awaius
- Nouein awaius ieuuceu anu simplifieu pievious awaius
- The mouein awaiu conuitions with the 1u NES foim the safety net of
woiking conuitions foi all employees of the national system (the 1u NES
aie non-negotiable)
- Nuch moie stieam-lineu & not as heavy
- Enteipiise agieements opeiate in auuition to the above but must not
unueicut the minimum conuitions
- Enteipiise agieements must meet the Bettei off 0veiall Test (B00T)
new contiacts cannot suipass being anything less.

Legal Issues foi BRN
" As BR- we have to uiscuss matteis, constantly ieminu
manageis of iight conuuct anu uemonstiate thiough
tiaining
- 0ccupational Bealth & Safety
o At state anu feueial level, goveinments have intiouuceu legislation
obliging employeis to iesponsible foi occupational heath anu
safety
o Cuiiently, theie is a move to unify all 0B&S iegulation nationally
- Bisciiminatoiy tieatment of employees
o State anu feueial Bisciimination Law potentially touches eveiy
functional aiea of BRN -e.g. ieciuitment, selection, oppoitunities
foi piomotion, tiaining & uevelopment, etc.
- Legal issues in ielation to teimination
o Teimination is iegulateu both by statute anu common law
o Regulation peitains to vaiious elements of the iight to hiie &
fiieincluuing ieasons foi teimination, pioceuuies, notice of
teimination payments iequiieu, complaint mechanisms anu
iemeuies foi unfaii oi wiongful teimination

State Legislation- State Level Woikplace Relations Legislation
DEF GHI EJ FJ 9JE K)>
7,1*01:
38 J0+5
Inuusti
ial
Relatio
ns Act
1996
Inuusti
ial
Relatio
ns Act
1999
Faii Woik
Act 1994
Powei to be
iefeiieu to
the
Commonwe
alth
Inuustiial
ielations
Act 1979
Ninimum
conuition
s of
Employm
ent Act
199S
Inuusti
ial
Relatio
ns Act
1984
Powei
iefeiieu to
the
commonweal
th: Faii Woik
(Commonwe
alth Poweis)
Act 2uu9
(vIC)
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Laboui
Relations
Refoim
Act 2uu2
Faii Woik
State
Refeiial anu
consequentia
l anu 0thei
Amenuments
Act 2uu9


State IR Legislation - associateu matteis
7/L810 E40+-, Public
Sectoi
Employmen
t & Nngmnt
Act 2uu2
Public
Seivice
Act
2uu8
Public
Sectoi
Nngmnt
Act
199S
Public
Sectoi
Nngmnt
Act
1994
State
Seivice
Act
2uuu
Public
Aumin
Act
2uu4

H43;4 M
!-81.3<5
Annual
Boliuays
Act 1944
Long
Seivice
Leave Act
19SS
Boliuay
s Act
198S
Boliuays
Act
191u
Long
Seivice
Leave
Act
1982
Long
Seivice
Leave
Act
19S8
Pub &
Bank
Bols Act
1972
Long
Seivice
Leave
Act
1976
Pub
Bols
Act
198S
Long
Seivice
Leave
Act
1992
N!ME 3*.
F-,O4,P5
>-2:Q
0B&S Act
2uuu
Woikeis
Injuiy
Ngmnt &
woikeis
comp Act
1998
Woikeis
Bealth &
Safety
Act
199S
Woikeis
Comp &
Rehab
Act
2uuS
0BS &
Welfaie
Act
1986
Woikeis
Rehab &
Comp
Act
1986
0B&S
Act
1984
Woikeis
comp &
injuiy
Nngmnt
Act
1981
0BS &
Welfaie
Act
199S
Woikei
s Rehab
& Comp
Act
1988
0B&S
Act
2uu4
Woike
is
Comp
Act
19S8
I150,121*3+1
-*
Anti
Besciimina
tion Act
1977
Anti
Besciim
ination
Act
1991
Equal
0p Act
1984
Equal
0p Act
1984
Anti
Bescii
minatio
n Act
1998
Equal
0p Act
199S

Implications foi BRN
- Some questions foi BR manageis to consiuei:
o Boes the oiganisation meet the NES.
o What will be the natuie of the ielationship with unions.
o Bas the psychological ielationship with employees been affecteu
by events of the iecent past. Foi example, by the oiganisations
iesponse to Woik Choices, the global financial ciisis, ieuunuancies
oi executive pay levels.
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o Boes the oiganisation have policies anu piocesses in place to
consiuei iequests fiom employees to change woiking
aiiangements. Shoulu the woiking aiiangements of the
oiganisation be ievieweu in any case.
o Boes the cultuie of the oiganisation suppoit male anu female
employees who take unpaiu paiental leave.
o Bow equal aie pay iates in the oiganisation.
o Is theie a neeu to incluue a uispute iesolution pioceuuie.

Summing 0p
- Law goveins the ielationship between an employei anu employee. These
legal obligations aiise fiom contiacts, legislation, statutoiy agieements,
awaius anu the common law
- BR manageis neeu to unueistanu anu comply with the legislation, anu
have an awaieness of legal obligations oweu by employeis anu employees
to minimise an oiganisations exposuie to uisputes anu litigation.

LECT0RE FIvE

Buman Resouice Planning

0bjectives
! To uefine human iesouice planning (BRP) anu unueistanu its ciucial
ielationship with stiategic oiganisational planning.
! Examine the natuie anu iole of the human iesouice management
infoimation system (BRNIS) in BRP anu SBRN
! Bevelop an unueistanuing of the techniques of BRP anu the auvantages
anu uisauvantages of the BRP piocess.

The Neeu foi BR Planning
0thei than English, the most commonly spoken languages in Austialia aie
Chinese anu Italian
The incieasing cost of skilleu IT peisonnel has foiceu Inuia's laigest
softwaie pioviuei to hiie Suuu employees in Nexico
Accoiuing to the 0N, moie than 19u million people live outsiue theii
countiy of biith
2u yeais ago, 1u% of Austialians weie boin oveiseas, touay that figuie is
2S%
An estimateu 6u% of Chinese univeisity giauuates aie unable to finu a job
because they lack maiketable skills
}apan will have Su% fewei inhabitants by 2uSu anu moie than 1 million
1uu yeai olus
By 2u2u China will have 4u million moie men of maiiiageable age than
women
By 2uSu population of Singapoie coulu be fouith oluest in the woilu -
aftei Nacau, }apan anu Koiea



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Buman Resouice Planning anu SBRN
! BRP - sometimes calleu 'C*58+*5:% ?$#&&6&'' is:
# The biiuge between BR stiategies anu BR functions.
# The piocess thiough which oiganisational goals aie tianslateu into
BR goals conceining staffing levels anu allocation.
! BRP ensuies that oiganisations have the iight people in the iight place,
with the iight skills, at the iight time.
! BRP guiues the $*&'A2%51 iesouicing of people in oiganisations - the
acquisition, use anu uevelopment of human capital anu knowleuge assets.

The People Resouicing
Function


















Stiategic Alignment
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Woikfoice oi Buman Resouice Planning
! BR planning hau its oiigins in 1#&?*C%5 ?$#&&6&'=
! The Nanpowei Planning fielu hau auopteu a highly iationalizeu
appioach - laboui maiket analysts;
! The fielu emphasiseu quantitative techniques anu sophisticateu
statistical mouelling - but uevelopeu a cieuibility pioblem.
! 0vei time, a 46#'&*(26: #??5*#:" uevelopeu alongsiue the mouelling:
! BR planneis emphasiseu the neeu to uiagnose the ieal ieasons foi
mismatches in supplyuemanu.
! They useu a mix of qualitative anu quantitative techniques.

BR Planning
! BRP involves:
! Foiecasting laboui iequiiements foi an oiganisation;
! Pieuicting likely souices
! Enviionmental scanning
! Bevelopment of objectives anu goals
! Foimulating the necessaiy steps to meet neeus ie ueveloping an
integiateu set of policies anu piogiams.
! Evaluation of the planning piocess.

BR Planning Failuie
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BRP asks the Following Questions:
! What aie the stiategic uiiveis impacting on the business ovei the
next S-1u yeais.
! What aie the iequiiements to meet the Business Plan.
! What woik neeus to be uone to achieve these outcomes.
! What oiganisational stiuctuie woulu best meet this neeu.
! What aie the high level capabilities iequiieu to successfully uo the
woik.
! Bow can these capabilities be acquiieu anuoi uevelopeu in the
woikfoice in the shoit, meuium anu long teim.
! Bow can these iequiiements be best met with cuiient financial
iesouices.
! What aie the capabilities of the cuiient woikfoice. Aie they neai
ietiiement oi going on leave.
! What aie the consequences of not engaging in woikfoice planning
to meet futuie stiategic uiiections.

Stages of BR Planning
o Stage 1- Analysis
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" Involves the analysis of enviionmental factois,
oiganisational uiiection, inteinal woikfoice anu exteinal
woikfoice e.g. exteinalinteinal SW0T analysis



















o Stage 2- Laboui Bemanu Foiecasting
" Foiecasting is the methou useu to ueteimine the !"#$%!
'() *+#$% )",(+)-", to help pieuict aieas within the
oiganisation wheie theie will be futuie laboui shoitages oi
suipluses.
" Foiecasting involves statistical (quantitative) anuoi
juugmental methous baseu on qualitative analysis.
" Bemanu foiecasts aie uevelopeu aiounu specific job
categoiies anu skill aieas ielevant to the oiganisation's
cuiient anu futuie state.
" 0nce the job categoiies oi skills aie iuentifieu, infoimation
will be sought to help pieuict whethei the neeu foi people
with those skills oi people in that job categoiy will inciease
oi ueciease in the futuie.


" Nethous useu incluue:
Nanageiial juugments - to obtain infoimeu
estimates
Tienu analysis - baseu on histoiical anu cuiient
peisonnel uata in the oiganisation - establishes
tienus in ietiiements, iesignations, uismissals etc.
Time seiies analysis - eg piojecting how many
teacheis will be neeueu in 2u2u; seasonal woik
flows in hospitality inuustiy.
Woik stuuies - eg wheie new taskspiocesses to be
intiouuceu.
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Scenaiio planning anu simulations
Coiielating business uata - sales pieuictions,
piojecteu tuinovei
0sing the futuie buuget as the staiting point -
woiking back fiom costs - to meet goals, how many
people at what cost aie iequiieu affoiuable

o Stage S- Laboui Supply Foiecasting Anu Analysis
" Supply foiecasts aie useu to pieuict woikei flows anu
availabilities.
" Theie is a neeu to look at:
" What laboui iesouices aie oi will be neeueu anu when;
" Whethei to use inteinal oi exteinal souices;
" Bow much can the oiganisation iely on inteinal supply -
which skills anu expeiience may not be obtainable
inteinally;
" What exteinal souices will be utiliseu.
" Nethous foi foiecasting 1*+4,*38 supply incluue:
Calculating likely futuie tuinovei iates - the
R35+364 analysis
Numbei of leaveis in specifieu peiiou x 1uu
Aveiage numbei employeu in same peiiou
Why aie oiganisation-wiue tuinovei iates of limiteu
value.
" >-=-,+ analysis
Suivival iate calculateu foi each cohoit eg yeai of
hiiing
" Inteinal piomotion analysis
To calculate statistical piobability that vacancies at
each level will be filleu inteinally
o Eg Naikov mouel - mapping statistically
what happens to each employee hiieu as a
basis foi establishing futuie neeus.
" Succession oi ieplacement chaits
" Skills inventoiies
" Naikov Nouel













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" Nethous foi foiecasting 4S+4,*38 supply incluue:
o Nost laboui maikets aie local: employeis aie
inteiesteu in tienus within 'tiavel to woik
aiea'.
o Statistics (moieless ielevant foi national
anu inteinational laboui maikets) incluue
" ueneial population uensity
" Population movements in anu out of
aiea
" Age uistiibution
" Social class
" 0nemployment iates
" School leaveis
" Piopoition with highei euucation
" Skill levels
" Numbeis in post-school
tiainingeuucation foi specific skills
" Numbei of employeis competing foi
theii seivices

o Stage 4- Establishing the BemanuSupply uap
" Baseu on the foiecasts foi supply anu uemanu the
oiganisation can compaie the figuies to ueteimine whethei
theie will be a shoitage oi suiplus of laboui foi each job.
" Beteimining expecteu shoitages anu suipluses allows the
oiganisation to plan how to auuiess these challenges.
" 0sually a balance neeus to be ieacheu between ieciuiting
foi immeuiate neeus anu ieciuiting foi inteinal tiaining,
uevelopment oi piomotion.

o Stage S - u0AL SETTINu ANB STRATEuIC PLANNINu
" The puipose of setting goals is to focus attention on any
pioblems anu auuiess these.
" uoals shoulu incluue specifics about what shoulu happen
with a job categoiy oi skill aiea anu the timetable foi when
goals shoulu be achieveu.

o Stage 6 - NANAuINu A LAB00R S0RPL0S 0R SB0RTAuE
" 0ptions foi ieuucing a laboui suiplus incluue:
Bownsizing
Pay ieuuctions
Bemotions
Tiansfeis
Woik shaiing
Retiiement
Natuial attiition
Retiaining

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" 0ptions foi avoiuing an unexpecteu laboui shoitage
incluue:
Inteinal laboui maiket stiategies:
0veitime
Retiaineu tiansfeispiomotions
Seconument
Tuinovei ieuuction
'Soft' BRN eg caieei uevelopment; woik anu family
policies.
" Exteinal laboui maiket stiategies:
New exteinal ieciuits
Tempoiaiy & casual employees - Note uebate about
'flexibility' anu whethei use of flexible employment
options is conscious choice in place of long-teim BR
planning.
0utsouicing
Inteinships
" 0thei:
Technological innovation

Reasons Why Systematic BR Planning Is Caiiieu 0ut By 0nly A Ninoiity 0f Fiims
- Bostility to use of statistical techniques in place of manageiial
juugment;
- The belief that BR planning while uesiiable is not essential to oigal
effectiveness;
- Pievalence of shoit-teim outlooks among manageis who uo not believe
theii caieeis will be enhanceu by long-teim activities like BR planning;
- Piactical pioblems associateu with inauequate histoiical uata on which
to base foiecasts;
- Ignoiance of existing BR planning techniques;
- Bevolution of iesponsibility foi managing people - makes BR planning
impiactical;
- Complexity anu tuibulence of business enviionment.

Buman Resouice Infoimation Systems (BRINS)
Eaily BRINS weie manual
Noie flexible, compiehensive infoimation systems have
uevelopeu as combineu iesult of:
o Technological change
o The giowing complexity of goveinment iequiiements foi
iepoiting on woikfoices, payioll uata etc.
o Naiket in complete BRINS softwaie pioviueis.
BRINS incieasingly useu as stiategic tool foi BR planning anu SBRN
geneially.
Emeigence of web kiosks anu employee kiosks
Facilitates moie cost-efficient management of low value-auueu BR anu
payment activities.

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Benefits & Featuies of BRIS


Scope of BRIS


















BRINS Bata: can incluue aggiegateu uata on all aspects of the employment
ielationship

! Improved planning and program
development
1
! Faster information processing 2
! Improved response times S
! Decreased administrative and HR costs 4
! Accuracy of information S
! Enhanced communication at all levels 6
! industrial awards, HR policies, salary, leave
Administrative
! personal and job histories, records on recruitment and selection
Operational
! all the above plus wastage, sta" positions, labour market trends
Strategic reasons
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The Puipose of BR Stiategic Plan
- Business Biiveis
o Sales uiowth
o Piofit uiowth
o Customei Naiketplace Focus
o Leaueiship
o Innovation
o Quality
- People Impeiatives
o Reciuitment of high quality staff
o Notivation of staff to uelivei high peifoimance
o Rewaiu anu iecognition foi high peifoimance
o Bevelopment of staff to theii potential
o Retention of quality staff
o 0ptimal utilisation of staff
o Bevelopment of an auequate supply of leaueis foi futuie giowth

Legal Issues with BRINS
- Confiuentiality - who has access.
o Keys anu coues
- Piotection of uata
- Ethical issues
- 0utsouicing
- Bata owneiship

Summing 0p
- BR planning affects all BR activities anu is the stiategic link between
oiganisational anu BRN objectives.
- The measuie of effectiveness of BR planning is whethei the iight
people aie available in the oiganisation at the iight place anu the
iight time.
- BRINS aie enabling incieasing accuiacy anu sophistication in BR
foiecasting anu analysis.

LECT0RE SIX
Reciuitment & Attiaction of Talent

0bjectives
The stiategic natuie anu iole of the ieciuitment piocess;
The contiibution of job analysis to stiategic ieciuitment;
Nethous of effective job analysis;
Piincipal ieciuitment souices anu techniques anu when these might
be best utiliseu;
Auvantages anu uisauvantages of inteinal anu exteinal ieciuitment
stiategies
The emeiging use of e-ieciuitment as a vital element in the evolution
of e-business


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Stiategic Reciuitment
Reciuitment - the piocess of seeking anu attiacting a pool of qualifieu
applicants foi a job vacancy.
A 325#2%'6: #??5*#:" to ieciuitment incluues:
o Questioning the neeu foi ieciuitment:
" Is a new appointment necessaiy.
" Woulu some othei change ieuuce the neeu to ieciuit.
o Establishing the business case foi ieciuitment (see sliue S);
o Evaluate effectiveness of existing ieciuitment methous;
o Feeu evaluation back into uiscussion of planneu appioach to
ieciuitment.

Establishing the Business Case
Key questions to ask:
o Is theie a business case to suppoit this action.
o Can the job be filleu within the oiganisation.
o Boes the job neeu to be filleu. Eg
" Can the job's functions oi iesponsibilities be ieallocateu,
mouifieu oi eliminateu entiiely. Can we affoiu to fill this
position at this time.
o Is the cost justifieu.
" What uoes ieciuitment cost.
Reciuitment consultancies typically chaige upwaius
of 2u% of fiist yeai salaiy of ieciuit;
executiveseaich fiims Su-4u% of salaiy.
0pwaius of $2Suu pei heau at entiy levels
Between 1S-2u% of BRN uepaitment's woikloau
each yeai.

The Impoitance of }ob Analysis
}ob analysis is:
o The ciitical builuing block of the ieciuitment piocess.
o The piocess of:
" uatheiing uetaileu infoimation about jobs.
" Establishing the essential ciiteiia foi job peifoimance anu
tianslating these into the qualities iequiieu.

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}ob Analysis Nethous
1. 0bseivation
2. Inteiview existing jobholueis anu supeivisois
S. Woik uiaiies (ielies heavily on the job holuei to iecoiu activities
conscientiously)
4. Ciitical inciuents logs
S. Equipment uesciiptions anu tiaining manuals
6. Questionnaiies & checklists
a. Eg ?*(626*& Q<%(26*&&#65%(, R*- oi 2#(8 6&S%&2*56%( etc.
i. Eg NcCoimick's Position Analysis Questionnaiie (PAQ)
(1987)
ii. The Woik Piofiling System - Saville anu Boluswoith (1997)
- sepaiate questionnaiies foi: manageiialpiofessional,
seivice anu auministiative; anu manual anu technical.
|www.shl.comj
7. Focus gioup uiscussions
8. 'Expeits'.

}ob Analysis
}ob Analysis INF0RNATI0N incluues:
o }ob iuentification - title, uept, level
o Tasks, uuties anu iesponsibilities to be peifoimeu
o Relationships - supeioiuinates, suboiuinates etc
o 0utputsenu iesults of job
o Peifoimance stanuaiusobjectives
o Knowleuge, skills anu abilities (KSAs)
o Competencies
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o The uesiiable anu essential peisonal iequiiements to fill the job:
" Physical iequiiements, intelligence, qualifications,
expeiience anu expeitise
" Peisonality, uisposition, special aptituues anu inteiests.
o Woiking conuitions - woikspace anu employment conuitions
o Equipment useu in job
o 0thei infoimation - tiansfei opps, tiaining available etc.

Competencies
Befinition:
o 'A competency iefeis to an aiea of peisonal capability that enables
employees to successfully peifoim theii jobs by achieving
outcomes oi accomplishing tasks'. (Noe anu Winklei, T1?$*@%%
P5#6&6&' #&4 U%S%$*?1%&2)
Competencies usually fall into two categoiies: behaviouialattituuinal
anu technical. Examples incluue:
o Communication skills
o Aptituue foi people management
o Team skills
o Customei seivice skills
o Result-oiientation
o Pioblem-solving
Requiieu competencies vaiy by oiganisation & inuustiy:
Eg Noloney (2uuu) -
'Foi companies launching on the inteinet, expeiiencing iapiu maiket
giowth anu change, competencies such as L,43.+= -@ ;151-*B
-::-,+/*152 3*. .,1;4 will be impoitant. Foi fiims iethinking theii
stiategy in the face of stiff competition - competencies such as 24*+38
+-/6=*455B 3++4*+1-* +- .4+318 3*. :,/.4*04 will be ciucial.'
Note, that in Austialia, competency is also useu in anothei way in BRN - a
:*1?%2%&:@ (2#&4#54 is an inuustiy-ueteimineu specification of
peifoimance which sets out the skills, knowleuge anu attituues iequiieu
to opeiate effectively in employment
o Example: Nuising Piofession
" http:www.anf.oig.aunuises_gpiesouice_uS.puf

}ob oi Position Besciiptions
Aftei the job analysis anu competencies have been selecteu, the V*- oi
9*(626*& U%(:56?26*& is then uiafteu.
A Position Besciiption (PB) is a uocument, which ieflects the puipose,
accountabilities, anu uuties of a job.
A PB shoulu pioviue the ieauei with a goou unueistanuing of the iole
by pioviuing infoimation that claiifies anu uesciibes the job, its
functions, anu enviionment anu iepoiting ielationships.
Tiauitionally containeu
o Title
o Iuentification
o Accountability statement
o Roles anu goals
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o Authoiity
o Enviionment
Touay often contains
o Title
o Iuentification
o 0ig. Chait of accountability piocesses
o Position puipose
o Competency iequiiements
o Key outcomes
o KPIs

Inteinal Souices of Reciuits
- Biiect appointment oi piomotion by management
- Lateial tiansfei e.g. job iotation oi seconument
- Inteinal auveitising via intianet, memo, bulletin boaiu
- Rehiiing foimei staff

Exteinal Souices of Reciuits


Foims of Auveitising
- Bailyweekly newspapeis
- Piofessionalspecialist jouinals
- Rauio anu Tv eg uefence foices
- Cinema auveitising
- Inteinet
o Specialist ieciuitment sites eg NyCaieei.com.au
o Piivate ieciuitment agency sites
o Company websites - 'caieei .'





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Choosing Reciuitment Nethous
- Piecisely how will the ieciuitment appioach useu hit its taiget
auuience.
- Bow will the methou affect the oiganisation's image in the laboui
maiket.
- Time constiaints - what is a toleiable uelay in filling vacancies.
- volume of applications the methou is likely to yielu & ability of BR
uept to auministei them effectively.
- F=3+ 3,4 +=4 :-+4*+138 3.;3*+3645 3*. .153.;3*+3645 -@
4S+4,*38 ,40,/1+24*+T )*+4,*38 ,40,/1+24*+T
























Reciuitment Policies anu Plans
o 0iganisations that engage in stiategic ieciuitment typically
uevelop a Reciuitment 9*$6:@ 32#2%1%&2 anu a moie uetaileu
Reciuitment W5#1%C*58 oi Plan:
o The Policy Statement:
" Pioviues a bioau, geneial statement of policy.
" Befines anu outlines the oiganisation's ieciuitment
objectives anu cultuie.
" It may incluue uefinitions, scope, piinciples, iesponsibilities
anu pioceuuies anu piinciples - in ielation to such matteis
as EE0, hiiing people with uisabilities, acknowleuging
applications etc
o Example:
o "22?=XXCCCO:#5%%5(OQ#&2#(O:*1O#<X!#5%%5(X.<1#&A/%(*<5:%(O#(?B

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o Reciuitment Fiamewoiks oi Plans pioviue a moie uetaileu
statement of policies anu pioceuuies.
" It coveis such uetails as:
" Who you neeu to engage foi each stage of the piocess
" If you neeu to seek appioval to cieate a new iole
" Wheie you will go to attiact canuiuates
" If you iequiie a panel
" Which tools you will use in the scieening stage
" Bow you can pioviue anu maintain canuiuate caie
" Bow feeuback anu final sign offs will be obtaineu
" Bow long the ieciuitment piocess shoulu take
o Example:
o http:www.hynubuinbc.gov.ukuownloausR&S_Fiamewoik_4u
8.puf

Attiacting Applicantsbianuing
- In oiuei to attiact the iight applicants some companies use 'employei
bianuing' to convey theii peisonality anu image to potential
employees anu to attiact top talent.
- Company bianuing can attiact talent by cieating a unique (selling)
pioposition foi potential employees anu attiact key talent.
- What aie the aiguments in suppoit of employment bianuing. Bow
uoes it assist in ieciuitment.
o It helps to attiact people by:
" Communicating a company's cultuie, values anu beliefs.
" Reflecting the peisonality of the company. In shoit, it
uefines what makes the company unique anu what it stanus
foi.
" Communicating to potential employees what it is like to
woik foi the oiganisation anu why long-teim employees
aie ietaineu.
o It helps to attiact people with the 'iight fit' with the oiganisation.
o It also helps convince existing staff that it is an attiactive place to
woik - thiough the leaueiship shown, open communication anu
othei elements.

LECT0RE SEvEN
Effective Employee Selection

Stiategic Selection
- Selection is the piocess by which the company ueciues who will anu
will not be alloweu in the oiganisation
- The selection piocess involves making uecisions about the
appiopiiateness of inuiviuual applicants foi specific jobs
- The S most commonly useu souices of infoimation about job
canuiuates aie:
o Application foims anu iesumes
o Inteiviews
o Backgiounu investigations e.g. iefeiences anu police checks
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- Auuitional techniques often ielieu upon:
o Neuical examinations
o Selection tests

The Concept of 'Fit'
- Finuing the best peison oi peison with the best fit uepenus on what fit
means in the context:
- Best fit can iefei to:
o }ob fit- the best peison foi the job
o 0iganisational fit- the best peison foi the oiganisation in teims of
cultuie anu value fit.

valiuation of Selection pioceuuies
- A uecision to hiie (oi not to hiie) iequiies that those making the
uecision cleaily iuentify the ciiteiia that uistinguish successful fiom
unsuccessful job peifoimance ANB use only pieuictive measuies of
job success that aie valiu anu ieliable.
valiuity
- The extent to which a technique useu measuies what it claims to
measuie- often with iefeience to job-ielateuness
o I.e. test pieuicts ability to peifoim the job anu not matteis
unielateu to the job
- Two ways to test a techniques valiuity
o Ciiteiion valiuity-uo those who uo well on this selection methou
also uo well on the job anu those who peifoim pooily on the test,
also peifoim pooily on the job
o Content valiuity- uoes the test constitute a faii sample of the
content of the job. (Faii =ianuom anu compiehensive sample) e.g.
a keyboaiu test useu to hiie a woiu piocessing opeiatoi.
Reliability
- This iefeis to consistency- of scoies obtaineu by the same peison
when ietesteu with the iuentical test oi equivalent
- Ways of estimating consistency oi ieliability
o Retest estimate- auministei same test to same people at uiffeient
points in time
o Equivalent foim estimate- auministei one test anu then an
equivalent foim at latei time
o Inteinal consistency- measuieu by auministeiing a test anu then
assessing the uegiee to which iesponses to items measuiing the
same chaiacteiistics vaiy. Eg. Ten questions about a peison's
inteiest in woiking out of uooissame veiuict.
0thei Ciiteiia foi Effective Selection Piocess
- ueneialisability
o Refeis to valiuity ovei time, anu foi uiffeient context anu people
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samples
" E.g. is the psychological test foi a nuise at a laige hospital
valiu foi a small hospitial
- 0tility
o Is the methou effective in enhancing the selection uecision-making
" E.g. foi sales iepiesentative- is it woith investing in
peisonality tests to iuentify ielative uegiees of extiaveision
- Legal anu ethical
o E.g. use of meuical, integiity, uiug anu othei tests may be excluueu
unuei piivacy laws
Factois that unueimine the effectiveness of Inteiviews
- Peiceptual flaws associateu with the piocess e.g.:
o Expectancy effect- expectations foimeu fiom a canuiuates Cv anu
application
o Fiist impiessions
o Canuiuate-oiuei eiioi
o Influence of non-veibal behavioui
o Steieotypes
o Attiaction bias anu cloning effect
o 'Balo' anu 'hoins' effect
o Applications impiession management
- Inteiviewei skills
o Effective stiuctuiing of inteiview
o Fiaming questions e.g. avoiuing multiple, leauing oi embaiiassing
questions
o Telegiaphing expecteu answeis
o Listening ability
o Eliciting sufficient iesponses
o Retention (iecall) anu inteipietation of iesponses
Inteiviews
- Inteiviews aie populai with employeis; a cleai majoiity state that the
inteiview is the most impoitant tool foi them in making selection
uecisions
- The tiauitional view is that inteiviews seive the following puiposes:
o 0btain pieuictive eviuence as to likely behavioui;
o Enables employei to attempt an assessment of peisonality,
competencies, appeaiance anu mannei of applicant
o Employei can confiim, uiscuss anu expanu on uetails iecoiueu in
application anu iesumes
- Inteiviews aie howevei pooi pieuictois of futuie job peifoimance
- What function uo they seive.
o Aie employeis attiacteu by ielatively low costs. Bo they uiscount
the ieseaich eviuence. Aie they simply unawaie of the eviuence.
o Beiiiott (1989) iuentifieu thiee key functions that selection
inteiviews seive:
" Nutual pieview function: the oppoitunity to meet face-to-
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face anu exchange infoimation unielateu to pieuiction of
peifoimance e.g. socialization function
" Negotiation function: enables othei negotiations to occui
e.g. stait uates, teims anu conuitions of employment etc.
anu suitable canuiuates peisuaueu to take job
" Public ielations exeicisecieates goou will foi the
oiganization especially as people expect to be inteivieweu.
Selection Tests
- Pioviue infoimation about canuiuate skills, abilities, expeiience,
peisonality, ieasoning ability anu othei chaiacteiistics that can be
useu to pieuict iole peifoimance.
- Test pioviueis:
o Inteinal
o Consultants
o Assessment centies
Peisonality oi psychometiic tests
- Bominant view is that theie aie five basic psychological constiucts oi
tiaits that foim the builuing blocks of peisonality
o ExtioveisionIntioveisionthe extent to which we enjoy
socializing, excitement anu change
o Emotional stability- the extent to which we exhibit tension anu
anxiety
o Agieeableness- the extent to which we avoiu conflict anu exhibit
goou natuie, waimth anu compassion
o Conscientiousness- the extent to which we aie well oiganizeu,
conceineu with meeting ueaulines anu making the implementation
of plans
o 0penness to expeiience- the extent to which we aie imaginative,
anu flexible anu view new expeiiences positively
- Aie these categoiies pioblematic.
o E.g. if you weie assessing agieeableness- aie all the elements in the
uefinition equally uesiiable in a canuiuate.
- Examples of peisonality tests e.g. the Thematic Appeiception Test
(TAT)
o TAT is a piojective psychological test.
o It taps a subjects unconscious to ieveal iepiesseu aspects of
peisonality, motives anu neeus foi achievements, powei, intimacy
anu pioblem-solving abilities
o Pioceuuie: piopeily known as the pictuie inteipietation
technique- subject is shown a stanuaiu seiies of piovocative yet
ambiguous pictuies which the subject is askeu to tell a stoiy about:
" What has leu up to the event shown
" What is happening at that moment
" What aie the chaiacteis feelings anu thinking
" What the outcome of the stoiy was
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Ciitically Analysing Selection Tests (with a focus on peisonality tests)
- Auvantages:
o Tests pioviue haiu, specific ciiteiia which facilitates compaiisons
among applicants
o They pioviue objective eviuence to justify uecisions- uecisions
have appeaiance of being iational anu scientific
o They pioviue insights anu explanations foi behavioui
o Tests counteibalance inteiview piocesses
- Bisauvantages:
o They pioviue impeifect inuications of peopleoiganisation fit-
ieliance on tests assumes that:
" Nanageis can iuentify the components of oigpeison fit;
" Tests can measuie these components;
" Responses cannot be fakeu
o Tests lack valiuity - few links between paiticulai peisonal
qualities anu job peifoimance
o Lack of ieliability anu capacity to pieuict futuie peifoimance e.g.
will peisonality test pioviue same iesults if iepeateu in the same
peison
o Costly
o Raise ethical anu legal questions
" E.g. uisciimination against gioups not useu as the iefeience
population
Assessment Centies
- Intensive anu compiehensive piocess incoipoiating a numbei of
methous into one piocess
- 0sually involves:
o uioup of 1u-12 canuiuates
o Testeu ovei 1-S uays
o Incluue a iange of woik samplessimulations as well as
peisonality tests, aptituue tests anu a panel inteiview
- Auvantages: flexibility to intiouuce test of ielevance, extensive
oppoitunity foi obseivation
- Limitations: cost- e, g. Involves a canuiuate anu assessoi iation of 2-1;
costs to uevelop tests; accommouating canuiuates foi the peiiou;
numbei of staff involveu (senioi manageis to obseive, assessment
centie staff, hospitality staff)
Refeience Checking
- Key issues in iefeience checking incluue:
o Neuiocie valiuity anu ieliability of iefeiences e.g highly subjective,
flaweu in vaiious ways (tenuency to give goou iefeiences)
o Compliance with piivacy laws;
o Befamation iisk
o What pioceuuiespolicies shoulu oiganisations have to ensuie
these pioblems aie minimiseu.
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" Requiiement to obtain explicit signeu authoiity fiom
applicant to uo backgiounu checks;
" Puisue only ielevant iefeience uata that peitains to the
jobpeifoimance in question
Reaching a Selection Becision
- Accept oi ieject. ! Systematic consiueiation! iealistic job pieview
The Selection Repoit
- Some oiganisations iequiie iepoits to outline the thinking of the
sectois anu steps taken in making the uecision
- The iepoit seives thiee majoi functions:
o Bocuments necessaiy infoimation foi the ultimate uecision-makei
to make a ieasoneu uecision
o Bemonstiates compliance with policy anu statutoiy iequiiements
such as equal oppoitunity legislation
o Can be useu as a basis foi feeuback to canuiuates
- Selection iepoit can be useu as a ieview tool, pioviuing infoimation
on a company's ieciuitment anu selection piocesses to feeuback into
continuous impiovement
The Cost of uetting it Wiong:
- Biiect anu inuiiect costs
- Fuithei ieciuitment anu selection
- 0ppoitunity
- Impaiieu ieciuitment
- Loss of othei key staff
7%%8 YA Z* !$#((%(
LECT0RE 9
Beveloping Buman Resouices

ulobal Thoughts on BRB
- Koiean matchmaking agencies uemanu giauuation anu employment
ceitificates fiom singles to calculate theii uesiiability iating
- Asian stuuents make up almost 1S
iu
of eniolments at the top 2u 0S
business schools
- 0ECB estimates that if Austialia iaiseu its skill anu euucation levels to
the same levels as those of the 0S, its uBP pei capita woulu be 4-7.S%
highei
- uiils who stay longei in school tenu to maiiy latei, have chiluien latei
anu have moie skills
- Less than 4u% of BK's univeisity stuuents believe they aie goou
enough to sustain BK's competitiveness as an inteinational business
centie
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- 1S of inteinational stuuents who giauuate fiom Austialian
univeisities aie juugeu to be less than competent in English

Tiiggeis to BRB
- Business stiategy
o Renewal of competitive euge
o Changes in piouuct uesign
o Changes in manufactuiing piocess
o Changes in management systems
o 0ffeiing new seiviceschanging consumei uemanus (life
insuiance)
o Impioving quality of existing seivices anu piouucts
o Refocusing stiategy of the oiganisation anu cultuie (change)

The Buman Resouice Bevelopment Function*
- BRB - the acquisition of knowleuge, skills anu behavioui to enhance
employees' piesent anu futuie effectiveness in an oiganisation
- Few oiganisations implement BRB stiategically - most simply ieact to
emeigent neeus
- Contempoiaiy concept of the leaining oiganisation
o Places stiong emphasis on the stiategic use of BRB to enhance
intellectualhuman capital- anu hence the ongoing contiibution of
people to an oiganisations goals
o A leaining oiganisation is one in which people at all levels,
inuiviuuals anu collectively, aie continually incieasing theii
capacity to piouuce iesults that seive to achieve theii shaieu
vision
" Encouiages emphasis on giowth of the peison- managing
one as the iesouice
" A iole will nevei iemain the same foi a peiiou of woik

The Leaining 0iganisation
- An oiganisation that:
o Continually impioves by iapiuly cieating anu iefining the
capabilities iequiieu foi futuie success'
o Facilitates the leaining of all its membeis anu continually
tiansfoims itself
o Is skilleu at cieating, acquiiing, anu tiansfeiiing knowleuge anu at
mouifying its behavioui to ieflect new knowleuge anu insights
" Pait of a goou oiganisation is by joining with othei aieas to
bioauening knowleuge wheie mentoiing is the key

Benefits of a Leaining 0iganisation
- Systematic pioblem solving- ielying on TQN type techniques
- Expeiimentation - the systematic seaich foi new knowleuge anu
continuous impiovement (ciicles of excellence)
- Leaining fiom past expeiiences- the 'Santayana piinciple' - neeu
uebiiefing to fully unueistanu implications
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- Leaining fiom otheis SIS (steal iueas shamelessly) aka benchmaiking
- pitching position in maiket stanuaiuslooking at othei company
inuuctions to obseive competition
- Kaizen- continual impiovement of a systematic stiuctuie to see one's
giowth anu impiovement
- Tiansfeiiing knowleuge quickly anu efficiently thiough the
oiganisation e.g. by seconuing people with new skills within the
oiganisation

Stiategic BRB
- vital foi BRN
- If planneu well- it will not fall ovei
- Stiategic appioach to BRN:
o Aligns tiaining anu uevelopment with coipoiate objectives e.g.
pioviuing the best customei seivice
o Begins with inuuction - key point to oiient the company anu
enviionment
o Pioves a multi-layeieu system of tiaining anu uevelopment to
builu human capital
o Incoipoiates a commitment to lifelong leaining
o Extents uo incluue caieei management (succession planning)
iolling out shauow plans anu oiganisational chaits
o Links peifoimance appiaisal anu awaiu systems to completion of
tiaining anu uevelopment activities
" Bevelopment plans- appiaisals along siue but sepaiate
theiefoie B.P aie not always uevelopeu efficiently

Tiaining & Bevelopment
- Tiaining aims to impiove cuiient job peifoimanceit iefeis to
activities that teach employees how to bettei peifoim theii piesent
job i.e. immeuiate skillsknowleuge
- Bevelopment involves those activities that piepaie an employee foi
futuie iesponsibilities- the acquisition of new expeiiences, knowleuge,
skills anu attituues
- Tiaining = shoit teim; uevelopment = on-going foi the futuie

Inuuction oi 0iientation
- A goou inuuction piogiam contains
o 0iientation to physical facilities - what the business uoes
o 0iientation of the oiganisation- showing how employees fit into
the team anu how theii iole fits with stiategy anu goals of
company
o 0iientation - immeuiate collegues; key oiganisational
ielationships
o Bealth anu safety infoimation
o Explanation of teims anu conuitions of employment anu peisonnel
policies
o Betails of oiganisational histoiy, piouucts anu seivices, cultuie
anu values
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" Bow it has giown
o A cleai outline of job anu iole iequiiements
o Staff benefits, values, anu paiticipation in the community
o 0iganisational chait- benefitto know how you fit in anu see the
biggei pictuie
o "The foimal piocess of familiaiising new employees with the
oiganisation, theii job anu the woik units"
o Reasons foi inuuction:
" Continuous piocess
" Coopeiative enueavoui
" Caieful planning checklist
" Focus on what's impoitant
" Sample oiientation piogiam
" Reuuce employee anxiety
" Follow up anu evaluation

BRB- An Instiuction Systems Appioach
- The instiuction systems appioach- essentially a stiategic appioach
- Emphasises:
o Beginning with an BRB neeus analysis
" Iuentifies what is neeueu at that time
o Foimulating instiuctional objectives
o Besign of leaining expeiiences baseu on auult leaining piinciples
anu leaining theoiies
o Beliveiyimplementation
o Evaluation
- It shoulu be stiategic
- Nanages the investment - the people anu uevelopment
- Neeus analysis to thoioughly asses what is iequiieu in tiaining anu
uevelopment
Stiategic BRB


















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Tiaining Neeus Analysis (TNA)

Leaining Styles anu Nethous
- Reseaich on leaining styles anu stiategies suggests that people leain
in veiy uiffeient ways- people have uiffeient piefeiences in ielation to
how they gathei, select anu piocess infoimation
- When uesigning tiaining anu uevelopment piogiams, BRB
piactitioneis neeu to consiuei matching techniques to the leaining
neeus of employees
- Neeu to be able to aujust anu auapt to this - stiuctuie t&u accoiuingly
- Baniel Kolb (1984) anu Boney & Numfoiu (1992) pioposeu foui basis
mouels of leaining
- They suggesteu that effective leaineis use all foui methous but the
emphasis may vaiy foi each

Boney & Numfoiu's Typology
- Activist- piefeis uoing anu expeiiencing (conciete expeiience)
o Responus most positively to situations offeiing challenge, to
incluue new expeiiences anu pioblems, excitement anu fieeuom in
theii leaining
- Reflectoi- obseives anu ieflects (ieflective obseivation)
o Responu most positively to stiuctuieu leaining activities wheie
they aie pioviueu with time to obseive, ieflect anu think, anu
alloweu to woik in a uetaileu mannei
- Theoiist - wants to unueistanuing unueilying ieasons, concepts anu
ielationships (abstiact conceptualisation)
o Responus well to logical, iational stiuctuie anu cleai aims, wheie
they aie given time foi methouical exploiation anu oppoitunities
to question anu stietch theii intellect
- Piagmatist - likes to have a go tiy things to see if they woik (active
expeiimentation)
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o Responus most positively to piactically-baseu, immeuiately
ielevant leaining activities, which allow scope foi piactice anu
using theoiy

Pieconuitions foi Leaining & Bevelopment
- Employee ieauiness: matuiity anu expeiimental factois; backgiounu
knowleuge anu skills
o Times when motivateu anu othei with competing stiessois
- Employee motivation
o Inuiviuuals iecognise the neeu to acquiie skills anu knowleuge;
continuing uesiie to leain
- Bevelopment: why uo inuiviuual employee's attituues towaius T&B
anu caieei management vaiy.
o Life cycle stages:
" Woik-family conflict issues
" Bual caieei issues
" Levinson et al (1978) Nouel of Auult Bevelopment- uiviues
auulthoou into eaily, miuule anu late stages- tiansition
phases between each
o 0iientation to woik e.g. instiumental oiientation 'living foi the job'
o Inuiviuuals view of caieei e.g. tiauitional lineai caieei, poitfolio
caieei, spiial caieeis

Nethous of BRB
- 0seful way foi uistinguishing vaiious appioaches to BRB:
o Beveloping non-manageiial employees capacities
" 0n the job anu off the job
o Beveloping manageiial employees capacities
" 0n the job anu off the job
Benefits of on-the-job tiaining
" 0n the job: conuucteu by supeivisoi oi senioi employee,
hanus-on expeiience, builus ielationships, can lack foimal
stiuctuie, pooi tiaining skills can impeue effectiveness
- Ease of oiganising anu auministeiing tiaining
- Lowei costs associateu with tiaining
- Timely planning anu implementation
- Emeiging peifoimance pioblems quickly iecogniseu anu auuiesseu

Beveloping non-manageiial employeescapacities: off the job
- Confeience oi othei uiscussion methous
- Classioom anu laboiatoiy tiaining
- E-leaining
- Simulation methous
- Appienticeships anu inteinships

Beveloping Nanageis anu Supeivisois: one-the-job expeiiences
- Coaching anu mentoiing
- 0nueistuuy assignment
- Shauow executive
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- }ob iotation
- Lateial tiansfei
- Pioject anu committee assignments
- Staff meetings

0ff-the-job Expeiiences
- Confeiences, seminais anu woikshops
- Case stuuies
- In-basket tiaining
- Leaueiless gioup uiscussions
- Role-playing
- Nanagement games
- 0utuooi leaining anu auventuie tiaining
- 0niveisity anu TAFE euucation

ueneiation Y anu New uiauuates
- Tienus in employee leaining:
- uieatei emphasis on expeiiential leaining
- Noie tailoieu foims of tiaining
- Noie mentoiing anu coaching
- Customizeu caieei paths - 'poitfolio' caieeis
- Pioviuing 'people skills'
- Inteinationalization of giauuate ieciuitment anu uevelopment
BRB- Caieei Nanagement
- Najoi foices foi caieei uevelopment piogiams:
o Competition foi piomotion
o Constant innovation in technology
o Noie competitive but scaice laboi maikets
o Coipoiate iightsizing anu iestiuctuiing
" Simplificationsopeiational excellence
o Implications foi employee commitment anu loyalty
Caieei Nanagement anu Nentoiing
- Nentois aie establisheu manageis who can auvise anu encouiage
junioi employees;
- Nentois offei:
o Caieei suppoit (sponsoiing, coaching, piotecting)
o Psycho-social suppoit (counselling, iole mouel)
- Nentoiing is effective when the mentee's goals anu objectives aie
establisheu cleaily fiom the beginning. Establishing cleai
outcomes will assist both paities in maximising the potential
benefits that may uevelop fiom the mentoiing ielationship.
- Featuies of the mentoi ielationship

Executive Caieei Nanagement
- Piogiams often incluue:
o Specialist knowleuge in opeiational anu stiategy uevelopment.
This may incluue:
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" Stiategic finance
" Futuies anu infeience thinking
" Neigeis anu acquisitions
" Naiketing
- Peisonal uevelopment in the aieas of stiess management, leaueiship
etc.
- 0ppoitunities to expeiience executive ioles - e.g. boaiu meetings -
'onboaiuing', shauowing etc.
- Nentoiing

Evaluation of the Tiaining Function
- Nanagement will believe the money spent on T & B is woithwhile
only if piogiams auu measuieable value.
- It is theiefoie ciitical that BR manageis assess anu communicate the
benefits of all BRB inteiventions.
- Theie is a iange of measuies of BRB effectiveness incluuing:
o Reactions of paiticipations - often calleu 'happy sheets'
o Tests of leaining accomplisheu
o Neasuies of behaviouial change in the woikplace eg impioveu on-
the-job peifoimance
o Baiu uata on piouuctivity, quality, sales anu othei measuies of the
bottom line - the ietuin on in investment (R0I) question.

LECT0RE 1u
Nanaging Peifoimance

Befining Peifoimance Nanagement
! Peifoimance management is the piocess thiough which manageis ensuie
that employee activities anu outputs aie congiuent with the
oiganisation's goals.
! It incluues uefining, facilitating anu encouiaging peifoimance, measuiing
peifoimance, feeuing back peifoimance infoimation anu managing pooi
peifoimance.
! 0ui focus is on peifoimance ieview oi #??5#6(#$, anu the piocesses of
woikplace counselling anu uiscipline.

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Who Boes the Assessing.
- Supeivisoi Review
- Self-Review
- Peei ieview
- Suboiuinate aoi upwaiu ieview
- S6u uegiee ieview

Establishing Peifoimance Stanuaius
! Relevance to job
! Fieeuom fiom contamination
! Reliability
! Relate to both quality anu quantity of output
! Quantifiable anu measuiable
! Able to iuentify inuiviuual contiibutions

Two Nain Nethous
! Inuiviuual iating scales anu compaiison methous
! Eg iating foims, mixeu stanuaiu scales, behaviouially
anchoieu iating scales.
! 0utcome-oiienteu appioaches
! Eg Nanagement by objectives, Balanceu Scoiecaiu

Behaviouially Anchoieu Rating Scales (BARS)
! Besciiptions of behavioui placeu along a scale oi continuum
! Iuentification of uimensions of peifoimance in teims of specific
behaviouis
! Five to ten veitical scales
! Ciitical inciuents
! Reuuction of iating eiioi

Nanagement by 0bjectives
! Peifoimance juugeu by success in achieving objectives establisheu in
consultation with supeiiois
! Focus on goals iathei than activities oi tiaits
! Stiategic system which begins anu enus with oiganisational goals anu
objectives
! Ciiticisms:
! Lengthy anu costly
! Shoit-teim measuiement
! Lack of mutual goal setting
! Encouiages instiumental goal-oiienteu behavioui

Elements of Effective Peifoimance Appiaisal
! Top management suppoit anu commitment
! Technique is valiu anu peiceiveu to be faii
! Eg stanuaius aie job-ielateu, consistent application thiough
oiganisation,
! Effoit maue to minimise souices of iatei eiioi in appiaisals;
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! Appiaisal is not simply a set of juugments about peifoimance but also
emphasises employee giowth anu uevelopment anu the setting of new
goals;
! Effective feeuback uepenus on:
! The managei's knowleuge of the employee's job anu peifoimance;
! The manageis suppoit of the employee;
! Involvement of the employee in the uiscussion;
! A constiuctive, not uestiuctive appioach:
! Recognising effective peifoimance thiough piaise;
! Focusing on solving pioblems
! Focusing on the behavioui oi iesults, not the peison

Typical Rating Eiiois Common to Peifoimance Reviews
- Balo eiioi
- Leniency oi stiictness eiioi
- Eiioi of cential tenuency
- Recency eiioi
- Steieotyping

Impoitance of Tiaining the Assessois
! Bow theii unueistanuing of the puiposes foi which appiaisals will be
useu influences assessois appioach the task.
! Tiaining builus consistency
! Tiaining ieuuces subjective eiioi by ueveloping unueistanuing of souices
of iatei eiioi
! Impioves effectiveness of feeuback piocess

Effective Peifoimance Appiaisal
! Factois associateu with manageiial motivations:
! Nanageis act in a political context;
! Nanageis have theii own goals - incl. Peisonal suivival anu
auvancement ! that may not incluue giving accuiate appiaisals.
! Nanageis often have an inteiest in conflict avoiuance - leauing to
inflateu appiaisals.
! Nanageis may also be motivateu to 'uo uown' talent inuiviuuals
who thieaten them, hobble the chances of iivals etc.
! See ciiticisms of peifoimance management in 'Review
peifoimance anxiety' in AFR,

Ineffective Peifoimance
! Nanaging ineffective peifoimance involves:
! Beteimining the souice oi cause
! Beciuing on a couise of action
! Taking fuithei action if it peisists

Counselling
! Focus is on woik peifoimance
! Confiuentiality is ciucial
! Requiies a pioblem-solving appioach
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! Supeivisoi must
! Communicate stanuaius
! Investigate gaps between stanuaius anu peifoimance
! Betect the souice of the pioblem
! If a peisonal pioblem, iefei employee to qualifieu counseloi

Employee Assistance Piogiams
! Wiue ianging policies, pioceuuies anu actions foi pioblems
! Can extenu beyonu woik peifoimance
! Piinciple of the total peison
! Confiuential
! Reactive anu pioactive
! Piofessional counseling
! Ciitics
! Evaluation
! Is it appiopiiate foi counselling to be pioviueu in-house iathei than by an
inuepenuent consultant.
! Bo you think on-line counselling is likely to woik.



Bisciplinaiy Systems
'. A genuine attempt to ensuie that expecteu employee behavioui anu
peifoimance aie maintaineu to iequiieu oiganisational stanuaius.'
(Nankeivis, Compton, Baiiu anu Coffey, 2u11 p.S78)
! Recognise anu coiiect unacceptable woik piactices
! Eaily uiagnosis anu mouification of woikei behavioui
! Employee iights
! Bue piocess & Pioceuuial justice
! 0utcome faiiness
! Follow foimal policies anu pioceuuies
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! Foui basic steps of action:
1. Bocumentation
2. Investigative inteiview
S. Piogiessive uiscipline
4. Coiiection oi uismissal

LECT0RE 11
Stiategic Rewaius Nanagement

Impact of Rewaius
0nueistanu the neeu to link iemuneiation policies anu piactices with an
oiganisation's stiategic business objectives
Iuentify key objectives of employee iemuneiation
Explain the mechanics of common job evaluation systems
Besciibe the concept of incentive iemuneiation anu why its use is
spieauing
Explain why an oiganisation pioviues benefits to its employees

Total Rewaiu System


vioom's Expectancy Theoiy
! Expectancy theoiies of motivation make the funuamental point that oui
*&'*6&' motivation at woik is affecteu by the expectations we foim #&4
oui expeiience of whethei these aie met ovei time.
J++,30+
the iight people at
the iight time foi
the iight jobs, tasks
oi ioles
"4+31*
the best people by
satisfying theii
woik-ielateu neeus
anu aspiiations anu
iecognising &
iewaiuing theii
contiibutions
I4;48-:
the iequiieu woikfoice
capabilities by
iecognising anu
iewaiuing employees foi
knowleuge, skill anu
ability enhancement
#-+1;3+4
employees to contiibute
to the best of theii
capability by iecognising
anu iewaiuing high
inuiviuual anu gioup
contiibutions to meeting
the oiganisation's
stiategic objectives
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! The expectancy theoiy of motivation focuses on outcomes (not neeus like
Abiaham NaslowBeizbeig).
! vioom, hypothesises that in oiuei foi a peison to be motivateu that effoit,
peifoimance anu motivation must be linkeu. Be pioposes thiee vaiiables
to account foi this: K384*04B ?S:40+3*0< 3*. )*5+,/24*+381+<.

Expectancy
! Expectancy is the belief that incieaseu effoit will leau to incieaseu
peifoimance i.e. if I woik haiuei then this will be bettei. This is affecteu
by such things as:
! Baving the iight iesouices available (e.g. iaw mateiials, time)
! Baving the iight skills to uo the job
! Baving the necessaiy suppoit to get the job uone (e.g. supeivisoi suppoit,
oi coiiect infoimation on the job)

Instiumentality
! Instiumentality is the belief that if you peifoim well a valueu outcome
will be ieceiveu i.e. if I uo a goou job; theie is something in it foi me. This
is affecteu by such things as:
! Cleai unueistanuing of the ielationship between peifoimance anu
outcomes - e.g. the iules of the iewaiu 'game'
! Tiust in the people who will take the uecisions on who gets what outcome
! Tianspaiency of the piocess that ueciues who gets what outcome

Pay Beteimination in Austialia
! Rewaiu stiategies anu piactices aie influenceu by the exteinal
enviionment
! Fiom 19u4 - conciliation anu aibitiation system uominateu wage
ueteimination. Wage stanuaius foi the majoiity weie stiongly shapeu by
awaiu ueteiminations since 19u4 eg Baivestei juugment, skill allowances
etc
! Fiom 1991, theie was shift towaius uecentialiseu pay-setting thiough
agieement-making at enteipiise level
! 7*58!"*6:%( HIIJO
! W#65 7*58 E:2 HIIM [ 2"% Ninimum Wage Panel of Faii Woik Austialia
ieviews anu sets the minimum wages foi national system employees.
! Foi most woikeis, Nouein Awaius anu enteipiise agieements cuiiently
base wages on the minimum wage as mouifieu.
! Theie is no limit to how much an oiganisation may pay above those
minima.









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Types of payment


Benefit Plans
! #3*.3+-,< L4*4@1+5
! Piovision foi employee economic secuiity
! Incluue such benefits as supeiannuation, woikeis' compensation,
anu vaiious foims of paiu leave.
! K-8/*+3,< L4*4@1+5
! Enhance an oiganisation's ability to attiact anu ietain high-value
employees anu offei employees a moie appealing 'value
pioposition'
! Incluues such benefits as company cais, self-euucation, computeis,
mobile phones, subsiuizeu meals, uiscounteu moitgages, anu
salaiy saciificing foi school fees, cais anu gym membeiship.
! Bevelopment of the !#+%2%56# \%&%+62 3:"%1% [ inuiviuualiseu
baskets of benefits

Peifoimance Baseu Pay

Base pay
- The founuational oi fixeu component of employee iemuneiation - this is
geneially iegaiueu as the pay best suiteu to auuiessing the objectives of
staff attiaction anu ietention
Benefits
- Financial entitlements that uiiectly supplement the cash base pay,
incluuing employei contiibutions to supeiannuation, low inteiest loans,
school fee assistance etc.
Peifoimance-ielateu pay
- Also known as incentive plans, these aie financial iewaius given in
iecognition of past peifoimance anu in oiuei to ieinfoice anu enhance
futuie peifoimance
The case foi:
! PBP motivates behavioui - accoiuing to
0iganisational Behavioui theoiies (eg Agency,
expectancy, anu goal setting theoiies) all
emphasise the centiality of employee
cognitive piocesses to unueistanuing anu
managing the ielationship between iewaius
anu task motivation.
! Peifoimance-ielateu iewaius opeiationalise
the 'equity' noim of uistiibutive justice;
! Reuuce the neeu foi othei types of
management contiol;
! Signal key uesiieu behaviouis - theiefoie
focusing effoit in uesiieu uiiections;
! Suppoits a peifoimance-oiienteu cultuie anu
entiepieneuiial behaviouis.
The case against:
! Incentives unueimine intiinsic inteiest in the job;
! Financial iewaius can motivate people to puisue
one thing above all else;
! Rewaius can uamage intiinsic motivation;
! Rewaius iuptuie coopeiative woik ielationships
anu encouiages uestiuctive, competitive behavioui;
! Rewaius ignoie unueilying ieasons foi woik
pioblems;
! Rewaius uiscouiage iisk-taking;
! Peifoimance incentives leau to an %&262$%1%&2
1%&2#$62@]
! Senu symbolic message that management believes
employees will not peifoim C62"*<2 mateiial
incentives.
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Ciitical Issues with Peifoimance pay
! The behaviouipeifoimance LINK must be cleai;
! Pay incieases must follow immeuiately on peifoimance foi connection to
be appaient;
! The piocess foi ueteimining payment entitlement anu amounts must be
valiu anu ieliable;
! Implications foi psychological contiact
! The impoitance of tiust
! Equity anu faiiness
! Expectancy theoiy - what is essential is ielative levels compaieu
to past anu futuie expectations anu peeis;

BesignImplementation foi BR
! Equity anu faiiness
! Equity Theoiy:
! People evaluate the faiiness of theii situations by
compaiison with othei people.
! Key concepts:
! I15+,1L/+1;4 U/5+104 (also uistiibutive faiiness). The
peiception that iewaius is uistiibuteu in ielation to
contiibution.
! 7,-04./,38 U/5+104 (also pioceuuial faiiness) - a focus on
the methous useu to ueteimine the outcomes.
! Expectancy theoiy anu iewaiu attainment
! Seciecy
! Shoulu inuiviuual iemuneiation be seciet oi open to sciutiny.

Pay Seciecy

Stiategic Rewaiu Alignment
1. Piepaiing a statement of iewaiu philosophy anu stiategy
2. Beteimining total iewaiu mix
S. Beteimining iemuneiation levels
4. Ensuiing stiategic fit oi alignment
S. Communicating the ueal

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Link to Peifoimance
! The concept of pay foi peifoimance often has stiong employee suppoit -
the actual implementation of schemes often lack suppoit (uesigning
piopei metiics anu 'faii'auministiation)
! 1. uoal setting stage eg meaningful taigets (baseu on what is easily
measuieu oi what is impoitant. Can encouiage uysfunctional
behavioui)
! 2. Evaluation stage - subjectivity in appiaisal anu unueimining
uevelopment
! S. Linking evaluation to pay - how much is in the 'pot'. Is theie
enough to make meaningful uistinctions

Potential Negatives in PRP
! Conceins about equity, pioceuuial anu uistiibutive justice
! Some ieseaich suggests stiong link between negative views anu
oiganisational commitment (Psychological Contiact)
! *Pfeffei claims that, uespite theii populaiity, most plans shaie two
attiibutes: They absoib vast amounts of management time anu iesouices,
anu they make eveiyone unhappy.
*The Buman Equation: Builuing Piofits by Putting People Fiist, Baivaiu Business
School Piess, 1998).

LECT0RE 12
0ccupational Bealth & Safety anu Employee Wellness

The Extent of the Pioblem
- Theie aie 29uu woik-ielateu ueaths anu 6Su, uuu woik-ielateu
injuiies in Austialia each yeai
- The woikplace-ielateu ueaths incluue 24u fatalities pa with an
aveiage of Su ueaths in the constiuction inuustiy alone
- Biiect anu inuiiect costs - e.g. acciuents anu ueaths in the
constiuction inuustiy cost $1uu million p.a., anu almost Su,uuu weeks
of lost woiking time.
- Potential Bazaius
o Physical factois e.g. noise, electiicity, non-eigonomic fuinituie
o Chemical agents oi othei hazaiuous substances eg asbestos
o Woikplace oiganisation e.g. loauing pioceuuies, iepetitive actions.
o Stiess
o violence oi physical oi psychological haim fiom woik colleagues

Peispectives of 0, B&S
! #4.1038 2-.48
# An emphasis on uiagnosis anu tieatment iathei than the
pievention of illnesses anu uisease
# Neuical oi physical appioaches often seem naiiowly focuseu oi
unable to fully explain causes oi to uevise suitable pieventative
stiategies
# N00/:3+1-*38 ?:1.421-8-6<
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! Reseaich 'epiuemics', oi the inciuence of uiseases anu
illnesses in woikplaces, anu attempt to establish theii
causes anu solutions
# )*./5+,138 75<0=-8-6<
! The stuuy of employees' psychological ieactions to theii
woikplaces
! Focus on inuiviuual woikeis - Nichael Quinlan aigues this
unueivalues stiuctuial causes.
# )*./5+,138 E-01-8-6<
! The stuuy of inteipeisonal communications anu
ielationships in the woikplace
! Attiibutes many 0BS issues to aspects such as lack of woik
contiol ovei theii woik, piouuction impeiatives, associateu
iewaiu (anu bonus) systems etc.
# ?,6-*-2105 3*. N00/:3+1-*38 !<614*4
! Aim to eliminate iisks anu impiove piouuctivity by
mouifying the physical aiiangements anu conuitions of the
woikplace
! Ciiticiseu foi having an oveily naiiow focus anu causative
appioach.

Employee Wellness
! 0BS concentiates on iuentifying physical anu psychological hazaius anu
iisks anu theii pievention oi elimination.
! Anothei stiategic inteivention by BRN incluues wellness piogiams.
! The aim of wellness oi wellbeing piogiams is:
# To encouiage employees to maintain theii fitness anu health.
# Reuuce employee's iisks of heait uisease anu cancei.
! These piogiams incluue bioau pieventative piogiams conceineu with
oveiall employee lifestyle issues eg neeu foi iegulai exeicise, weight
contiol, piopei nutiition - thiough nutiition euucation, exeicise
scheuules, meuitation classes, volunteeiing piogiams.

0nion Appioaches
# ACT0 vision 2uuS-2u1S
3<??*52 %1?$*@%5(^ %1?$*@%%( #&4 #$$ 2"*(% 6& 2"% (<??$@ :"#6& 2* 4%S%$*?
:<$2<5%( #&4 #2262<4%(^ #&4 #::%?2 5%(?*&(6-6$626%(^ 2"#2 #:"6%S% (#+%5 ?$#:%( *+ C*58
#&4 (#+%5 1%2"*4( *+ C*586&' (* 2"#2 E<(25#$6#& C*58?$#:%( #5% +5%% +5*1 4%#2"^
6&R<5@ #&4 46(%#(%
# Coopeiating with goveinments to haimonise the piesent state anu
feueial 0BS laws towaius stanuaiu national 0BS legislation

BRN & 0B&S
! Since the 198us, state anu feueial legislation has been enacteu
conceining specific occupational iisks anu hazaius as well as moie
compiehensive 0BS legislation. The thiee planks of this legislation
aie:
! Pievention
! Compensation
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! Rehabilitation
! National 'mouel' Woikplace Bealth anu Safety Act unuei
negotiation fiom 2uu8 - to ieplace inconsistent state anu teiiitoiy
iegimes with a single 0BS system
! N0TE: New Feueial 7*58?$#:% .%#$2" #&4 3#+%2@ E:2 2u11 (Cth)
has now been enacteu
! T#:" R<56(46:26*& C6$$ -% 5%Q<65%4 2* %&#:2 $#C( 2"#2 1655*5 2"%
1*4%$ &#26*&#$ E:2O
! What iesponsibilities uoes legislation iaise foi BR manageis.
! These iange fiom:
! ./)$/"01- 2"3"2 of cuiient issues, legislation to new woik piocesses
! 45")$/1(%$2 2"3"2 fiom piesence on woikplace committees to
suppoit anu auvice
! 6!#1%1,/)$/13" 2"3"2 can iange fiom cooiuination of collection of
statistics to secietaiial suppoit foi committees

0B&S Law
197us concein with costs
0K influence (self-iegulation) uominant ovei 0S (stanuaius anu
penalties)
The 'Robens mouel' (1972) 0K
The Williams Repoit (1981) NSW
Piincipal elements of Austialian system aie:
! Self-iegulation, with active involvement of employeis, unions anu
goveinment.
! Buty of employeis to pioviue a 'safe system of woik'.
! Woikplace-baseu tiipaitite committees with iesponsibilities to
pioviue tiaining, inspections, consultation, infoimation, issue
piovisional impiovement notices, oiuei that unsafe woik ceases
etc.
Recent amenuments in NSW anu ACT to intiouuce offences of inuustiial
manslaughtei against negligent employeis anu senioi manageis.

Woikeis Compensation anu Rehabilitation Legislation
! State anu feueial legislation - Austialia has 1u systems in opeiation: what
aie the implications of this foi employees.
# Biffeiences in coveiage mean woikeis may be coveieu foi
compensation in one juiisuiction but not in anothei.
! Noie than Suu,uu Austialian employees louge woikeis compensation
claims annually.
! BRN manageis neeu to:
# 0nueitake compiehensive analysis of acciuents anu woikeis'
compensation tienus;
# Bevelop piogiams to auuiess the vaiious 0BS mgmt issues
involveu - eg.
" Risk management.
" Builu effective ielationships with iehabilitation anu
insuiance pioviueis.
" Effective anu compiehensive safety tiaining,
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" Consultation on woik uesign anu ieuesign
" Efficient iehabilitation piogiams which ensuie woikeis
ietuin to woik as quickly as possible
! Bow uoes this sit with the W#65 7*58 E:2 HIIM F!2"G:
# See ueneial Piotection piovisions, paiticulaily Pt S.1, Bivision S,
anu Section SS1. Tempoiaiy absence fiom Woik

Issue 1- Acciuents at woik
! Neeu to be able to:
# Assess extent anu costs to inuustiy anu society (impiecise)
# Iuentify cause anu builu in pievention
# Bevelop an effective fiamewoik foi pievention anu mgmt
! Acciuent ieuuction involves:
# Compiehensive safety policies
# Specialist 0BS function
# Safety awaieness, pievention anu tiaining piogiams
# Neuical, fiist aiu anu woikeis' compensation systems
# Fiie uiills, piotective clothing anu equipment
# Safety incentive anu pievention piogiams
# Acciuent investigation anu analysis

Issue 2- Smoking in the woikplace
! The most heateu 0BS issue of the late 198us anu the 199us
! Noie anu moie companies have implementeu woikplace-smoking
policies.
! Reasons foi smoke-fiee policies:
# Financial
# Legal
# Bealth
# Coipoiate image
! 31*8% +5%% ?*$6:6%( incluue bans on smoking, access to 'quit' piogiams,
anu the uistiibution of health piomotion liteiatuie.

Issue S- 0ccupational Stiess
! Incieaseu piessuie on employees - woik intensification, infoimation
oveiloau, oiganisational change etc
! Piominent souice of legal action
! Seiies of ieseaich stuuies linking woik factois to stiess
! No agieeu uefinition of stiess:
# Befinitions focus on the cause, iesponses, inuiviuual woikei anu
theii enviionment.
# Physiologically, it is the bouy's ieaction to a peiceiveu thieat that
iequiies eithei a +6'"2 *5 +$6'"2 iesponse.
! Symptoms - fatigue, exhaustion, inuigestion, high bloou piessuie,
insomnia, inability to ielax, incieaseu uiug use, physical oi emotional
bieakuown, 'buinout'.
! NB not all stiess is uestiuctive.


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Nanaging Stiess
! Implement a pieventative stiategy - incluuing a stiess uiagnostic system
anu iegulai evaluation.
! Stiess management piogiams
! Tiaining inuiviuual employees to manage stiess symptoms effectively
! Eg Relaxation, exeicise, uiet, talk, planning anu time management,
uelegation etc
! Employee counselling
! Specific pievention measuies
! Eg stiess ieuuction piogiams - incl. impioving supeivisoiy skills,
ieallocating woikloaus
!

Issue 4- Woikplace Bullying
! Bullying is:
# 'The systematic peisecution of a colleague, suboiuinate oi
supeiioi, which, if continueu, may cause seveie social,
psychological anu psychosomatic pioblems foi the victim'.
(Einaisen, B. 1999, in the ;&2X#$ V*<5&#$ *+ 0#&?*C%5)
! Reseaich by Sheehan et al (2uu2) in ./ 0*&2"$@, estimates woikplace
bullying costs Austialian employeis $6-$1S bill p.a.
! What foims uoes bullying take.
" Peisecuting oi ganging up on an inuiviuual
" Naking unieasonable uemanus oi setting impossible woik
taigets
" Naking iestiictive oi petty woik iules
" Constant intiusive suiveillance
" Shouting oi abusive language
" Physical assault
" 0pen oi implieu thieats of uemotion oi uismissal
" 0nline bullying.
! Consequences:
# Foi the victims
" Bepiession, anxiety, uecieaseu commitment, job
satisfaction
" Psychological anu physical ill-health
# Foi the oiganisation incluue:
" Reuuceu efficiency, piouuctivity anu piofitability
" Auveise publicity
" An unsafe woik enviionment
" Incieaseu absenteeism, sick leave anu staff tuinovei
" Costs associateu with counselling, legal action anu
compensation

Issue S- Potential Bazaius of Nobile Phones
! No conclusive ieseaich eviuence but some stuuies link exposuie to
electiomagnetic iauiation to both the inciuence of lymphoma anu theii
iate of giowth.
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! Fuithei ieseaich is cuiiently being unueitaken both uomestically anu
inteinationally
! Emeiging 0BS issues incluue:
# Woik intensification & stiess of 247 phone access.
# Potential flammability of mobile phones neai petiol;
# Acciuents causeu by theii use while uiiving;
# Implications foi costs within oiganisations.

Risks of Inteinational Tiavel
! Incieaseu +4,,-,152
! #4.1038 0-*.1+1-*5 such as 4%%? S%6& 2"5*1-*(6(; (%S%5% #:<2% 5%(?65#2*5@
(@&45*1%; -654 +$< anu (C6&% +$<O
! E+,455 - fatigue, jetlag, uisiuption of noimal bouy ihythms, cancelleu
flights, lost baggage, iobbeiies, misseu family functions, family
confiontations iegaiuing infiuelity
! Employeis auviseu to:
! Nonitoi levels of tiavel iequiieu
! Bevelop alteinatives
! Establish coues of piactice
! Biscuss iisks peisonally
! Examine anu communicate levels of insuiance anu woikeis'
compensation entitlements

Nanaging 0B&S Piogiams
! Top management commitment
! Cohesive appioach to piomotion, communication, tiaining anu
uevelopment activities
! Auequate piotective anu meuicalfiist aiu facilities
! Risk management, iecoiuing, analysis anu uevelopment systems
! Consultative anu monitoiing mechanisms
! Integiateu appioaches