Chapter 17: Effectiveness of HRM

Question 1

what are some of the key elements of effective HRM

Answer 1

• appropriate reward systems
• non-discrim environment
• common purpose
• legal compliance
• good bus culture
• flexible, family firendly working conditions
• commitment to ongoing training

Question 2

what are indicators to reflect on the effectiveness of the HR function

Answer 2

indicators are performance measures used to evaluate organisational, team or individual effectiveness

Question 3

what are typical indicators used to evaluate the effectiveness of the HR function

Answer 3

• HR planning - number of staff/budgeted staff
• recruitment and selection - applicant rejections, acceptance rates for job offers
• T&D
• employee rewards and benefits - cost of rewards and benefits, labour turnover rates
• industrial relations - grievance records
• WHS - accident rates
• performance appraisal - goals achieved/not achieved
• separation/termination - separation rate
• general HRM effectiveness - labour costs/sales and gross profit per employee

Question 4

what is benchmarking

Answer 4

indicators to compare the performance of different departments within a bus, or to compare business performance with industry averages or the performance of best practice businesses
- pinpoint areas that are not performing up to agreed standards
- Failure to meet benchmarks is often an indicator of poor HR strategies

Question 5

what are HR audits

Answer 5

• indicators are gathered and collated in HR audits
• these are a diagnostic tool used to evaluate HR policies and practices in order to identify problems and develop solutions in an attempt to rectify those problems

Question 6

what are the most commonly used measures for evaluating the effectiveness of HRM

Answer 6

• corporate culture
• benchmarking key variables (particularly labour productivity)
• changes in staff turnover
• absenteeism
• accidents
• levels of disputation
• worker satisfaction

Question 7

The role of HR management in using these indicators is to foster continuous
improvement by:

Answer 7

• communicating with employees about company vision, strategy and expectations
• planning and setting goals for employees
• developing employees effectively to improve performance
• evaluating performance, providing coaching and feedback in formal reviews
• linking rewards to performance measures
• providing feedback to senior management for ongoing planning purposes

Question 8

what is corporate culture

Answer 8

Corporate culture is a series of values, ideas, expectations and beliefs shared by the people involved in a
business

Question 9

what are some Indicators of good workplace culture

Answer 9

• positive atmosphere
• collaboration and staff involvement in decision-making
• communication, trust and confidence
• teamwork and loyalty
• above award/minimum pay rates and creative benefits and perks
• high levels of T&D
  - flexible and family-friendly work practices
• high worker satisfaction, low levels of absenteeism and high levels of labour productivity

Question 10

what are indicators of poor workplace culture

Answer 10

• high turnover and absenteeism
• poor customer service
• low morale
• disputes and internal conflict

Question 11

what are some other benchmarking key variables

Answer 11

• changes in labour costs across different periods of time
• percentage of staff goals achieved
• promotion rates
• time taken to fill vacancies
• male to female ratios in senior positions
• training hours per worker

Question 12

what is staff turnover

Answer 12

Staff turnover refers to the separation of employees from a business, both voluntary and involuntary
- % of total staff numbers
- higher than normal rate is an indicator of job dissatisfaction and ineffective HR management

Question 13

what are the trends in staff turnover

Answer 13

• flutuates with eco cycle –> typically higher during downturns though voluntary usually higher during downturns since easier to find jobs
• important for bus to benchmark against toher buses and determine why staff leave –> pull fcators outside the bus and push factors within the bus

Question 14

what are exit interviews

Answer 14

to find out why an employee is leaving and gain feedback on their HR processes
- not negative reason: seek new opps or accept promotions
- negative reason: toxic workplace with internal politics

Question 15

is staff turnover always a bad thiing

Answer 15

no, some level of turnover is considered healthy in a business, as new ideas may be brought in that stimulate
innovation in work practices

Question 16

what major costs are involved in high staff turnover

Answer 16

• time and money spent on recruitment and selection
• provision of induction and training programs
• periods of low productivity as new employees take time to settle into the job
• low levels of morale and motivation in other staff

Question 17

what is absenteeism

Answer 17

Absenteeism refers to the rate of employee absences without leave approved in advance
- not turning up to work using illness as excuse
- may indicate dissatisfaction
- poorly designed jobs
- lack of stronger employer-employee relo
- low lvl of absenteeism –> indicator of effective HR management

Question 18

why do HR managers need to assess what level of absenteeism is valid

Answer 18

to determine how much are legitimate reasons such as illness, carers or family leave and which are due to dissatisfaction, low staff morale, stress and poor management of WHS issues

Question 19

what are the consequences of high lvls of absenteeism

Answer 19

• can be extremely costly for a business
• Work schedules
  are disrupted with remaining staff often left to pick up the slack
• while productivity suffers and labour costs increase (bus has to pay absent worker and their replacement)

Question 20

what are some egs of direct and indriect costs for workplace injury

Answer 20

• direct costs - medical bills, compensation and insurance
• indirect costs - wages and time lost, contamination, wastage, production delays, repairs, fines, lower morale

Question 21

what measures does a best practice bus adopt to reduce the incidence of accidents in the workplace

Answer 21

• regular safety audits and and comprehensive safety programs
• building a culture of safety, communicating effectively about health and safety using visible policy statements, safety signs and reminders
• providing careful induction and regular ongoing training for staff to ensure that they are aware of
  safety rules and are prepared for emergencies
• consulting employees and health and safety personnel on the implications of changes in the workplace

Question 22

what are some indicators used to measure WHS performance

Answer 22

accident rates, frequency of injuries resulting in time off work, and the number of workers’ compensation claims

Question 23

What can monitoring the frequency and severity of industrial disputes indicate about a business?

Answer 23

It indicates the effectiveness of grievance procedures and dispute resolution processes

Question 24

what are some overt manifestation of industrial conflict from employees and employers

Answer 24

employees:
- pickets
- strikes
- stop-work meetings
- work bas and boycotts
- work to rule
employers
- lockouts
- stand-downs
- dismissals, retrenchments

Question 25

what are some covert manifestations of industrial conflict by employees and employers

Answer 25

employees - absenteeism - high labour turnover rates - theft and sabotage - higher defect rates - reduced productivity - lack of cooperation employers: - discrim - harassment - lack of cooperation - exclusion from decision making

Question 26

Why is it important to track the number and type of industrial disputes in a business?

Answer 26

It helps identify the reasons for disputes and evaluate the quality of workplace relationships and grievance procedures - prevent high staff turnover and industrial disputes - high number of formal grievances indicate - Poor-quality workplace relationships that may require policy review or individual intervention - HRM may need to investigate policies if formal grievances common

Question 27

what type of industrial action is most common in Australia today?

Answer 27

Covert actions like absenteeism or reduced productivity, rather than overt strikes

Question 28

what does employee satisfaction determine

Answer 28

employee commitment, job performance and staff turnover

Question 29

why are staff surveys useful

Answer 29

Staff surveys are useful in helping employers measure and understand how their staff feel about their work, management and the culture of an organisation - used to improve management style and processes, rewards and benefits systems, the physical working environment, workplace relationships and responses to other employee needs - 'leading' indicator - results reflect on current and future performance rather than on past achievements unlike financial info (aka 'lagging' indicator)

Question 30

What is a more significant driver of worker satisfaction than pay?

Answer 30

Good relationships, enjoyable work, relevant training, growth opportunities, feeling appreciated, Family-friendly culture, adequate breaks, proper resources, rewards, sabbaticals, and wellbeing strategies

Question 31

what can lead to dissatisfcation in the workplace

Answer 31

- significant pay differentials - emotional exhaustion ( Job stress impacting family life, leading to lower job satisfaction)