Chapter 5 Flashcards

1
Q

3 stages of the employment cycle

A

Establishment
Maintenance
Termination

The employment cycle involves an organisation determining it’s employment needs in line with it’s business strategy
Once employment needs are satisfied > hire staff
Once staff are employed > ensure staff are productive and satisfied
Finally manage what happens when employees leave an organisation

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2
Q

Explain the establishment stage

A

Planning: identifying staffing needs, conducting job analysis (determining the exact nature of the position to be filled) and job design (determining how the job is to be performed and the material and the equipment required to do so)

Recruitment: attracting people to apply for the position in the business, undertaking internal and external recruitment

Selection: choosing and hiring the most qualified; involves testing and interviewing

Employment arrangements + remuneration: deciding on the type of employment contract (arrangements) and ways of paying employees

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3
Q

Explain the maintenance phase

A

“Induction: Acquiring new employees with the organisation and the jobs they will perform

Training and development: teaching employees new skills, helping employees to learn new tasks associated with their job, improving their skills

Recognition and reward: monetary benefits (financial compensation) and non monetary benefits (better conditions)

Performance management – methods to improve both Organisational and individual employee performance “

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4
Q

Explain the termination phase

A

“Termination management: voluntary termination (dealing with employees leaving out of their own accord; retirement, resignation) and involuntary termination dealing with employees being asked to leave (retrenchment/dismissal)

Entitlement and transition issues: payment of any outstanding benefits such a sick or annual leave and providing support such as counseling for dismissed employees “

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5
Q

Define human resource planning

A

is the development of strategies to meet the organisations future human resource needs

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6
Q

Define strategies

A

The actions that organisations take to achieve specific objectives

Organisations have to “plan” for positions that will inevitably become vacant through; retirement, resining or promotion – therefore for most organisations satisfying staffing needs is an ongoing process

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7
Q

Explain how hr planning can be linked to business strategies

A

ensuring the correct number of suitably qualified staff are employed by the organisation when necessary
e.g strategy to achieve the objective of increase profits may be to reduce business costs – HR must forecast future demand for employees and estimate the supply available to meet that demand in order to avoid having too many employees on the pay roll
Due to pace of technology and global economy organisation must respond to change quickly – if an organisation does not plan their HR needs in line with their business strategy it is unlikely they will succeed
HR planning is in the ‘establishment phase’ of the employment cycle requiring an organisation to constantly plan and monitor:
The number of employees required
Their qualifications, including skills, previous experience and knowledge
When and where these employees will be needed
»Therefore involves forecasting the number of employees available and the number of qualified employees demanded in the future

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8
Q

Define job analysis

A

is the study of an employee’s job in order to determine the duties performed, the time involved with each of those duties, the responsibilities involved and the equipment required

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9
Q

What does a job analysis entail

A
The actual job activities
The equipment used in the job
Working conditions
The degree of supervision necessary
Specific job behaviors required
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10
Q

Job analysis is broken into 2 parts

A

Job description

Job specification

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11
Q

Define job description

A

is a summary of what the worker will be doing – the role theu will have in the organisation in terms of duties and responsibilities

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12
Q

Define job specification

A

Will indicate the sort of person an organisation is seeking in terms of personal qualities, skills, education and work experience

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13
Q

Define job design

A

Details the number, kind and variety of tasks that individual employees perform in their jobs. Jobs may be designed so they include a variety of tasks to keep employees interested and motivated

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14
Q

Effective job designs include

A

Include a variety of tasks to keep empoyees interested and motivated
Take into account the satisfaction of employees needs
Group compatible tasks and match them with skills and experience profile of most suitable candidates
Provide variety, challenges and responsibility in duties to improve motivation and performance whilst reducing absenteeism and staff turnover
Intrinsic motivation may be improved through following 3 approaches – job enlargement, job enrichment and job rotation

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15
Q

Define recruitment

A

is the process of attracting qualified applicants from which to select the most appropriate person for a specific job

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16
Q

Main sources of recruitment of employees for an organisation

A
Advertising in the media
Tempoary/casual services
Schools/colleges/Tafe
Internal searches
Public employment agencies 
Private employment agencies
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17
Q

Explain internal recruitment

A

Internal recruitment involves considering present employees as applicants for available positions.
Often occurs when someone is promoted – provides strong motivation for current employees
Internal searches is only effective if an organisation is substantial in size
Internal searches for a candidate allows an organisation to use it’s own employees skills
Advantageous as low in costs (hiring + training)
Referral schemes can be used where employees nominate their peers for a promotion and if their nominee is promoted they receive a referral bonus

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18
Q

Benefits of internal recruitment

A

Allows organisations to use it’s own employees skills

Lower costs (hiring + training)

Enables selection of replacement to be

Familiar with Organisational operations
Organisation is already aware of each candidates strengths and weaknesses

Provides strong motivation for employees seeking promotion

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19
Q

Explain the limitations of internal recruitment

A

Only effective in large scale organisations

Not appropriate when organisation needs people with new or different ideas

Employees without correct skills and qualifications may be promoted

May cause dissatisfaction for employees who are not promoted.

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20
Q

Explain external recruitment

A

External recruitment is when an organisation selects a suitable applicant for a position outside the organisation
A business will use external recruitment method to bring in people with new or different ideas and attitudes
External methods of recruitment include:
Online (seek) or in newspaper
Cyber recruiting (through the organisations website)
Experts – employment agencies/ management recruitment consultants
University recruitment drives
Recommendations of current employees
Applications from potential employees (kept on file)
Professional association contacts or networking (LinkedIn)
Headhunters – fill senior + executive roles

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21
Q

Common external recruitment methods include

A

External recruitment is when an organisation selects a suitable applicant for a position outside the organisation
A business will use external recruitment method to bring in people with new or different ideas and attitudes
External methods of recruitment include:
Online (seek) or in newspaper
Cyber recruiting (through the organisations website)
Experts – employment agencies/ management recruitment consultants
University recruitment drives
Recommendations of current employees
Applications from potential employees (kept on file)
Professional association contacts or networking (LinkedIn)
Headhunters – fill senior + executive roles

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22
Q

Benefits of external recruitment

A

“Wider choice of candidates

New employees bring new insights as well as more business contacts “

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23
Q

Explain the limitations of external recruitment

A

“New employees require more time to adjust to the environment

New employees might not have required skills or fir into the workplace culture

Increased costs associated with recruiting, selection and induction “

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24
Q

Define employee selection

A

involves choosing the candidate who best matches the organisations requirements

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25
Explain employee selection
Screening and sifting through applicants to find the most suitable Choosing the most appropriate person for the position with qualification Expensive due to the costs of screening and the cost of inappropriate selection Poor selection process leads to increased costs and lower productivity by increasing: training costs if poorly qualified staff are selected Job dissatisfaction and labour turnover, if the organisation or the job does not meet expectations of candidates selected Absenteeism rate, if staff fell inadequate on the job or feel under excessive work pressure Accident or defects rates, and fines or claims, if untrained staff are selected
26
Explain the selection process
Interview panned selected - possibly made up of human resource management, function manager, staff representatives or head of department Screen applicants - panel will select applicants by comparing selection criteria with details sub,tired in application forms and letters Short list applicants - applicants who meet selection criteria are invited to an interview Interview options - group interview, panned interview, stress interview // interviews should be well structured and consistent questions asked, provides candidate with an opportunity to find out more about the job Testing - skills testing, intelligence test, personal profile and written or practical testing, Type of test depends on recruitment of job, may be written or practical and designed to access the aptitude, intelligence or ability - though not used by all industries and not always useful as a sole indicator for suitability of a position Referees - referee checks previous employers or others able to verify candidates infomation are contacted to discuss candidates strengths and weaknesses and check accuracy of resume or work history Successful applicant notified - the organisation will hire the person best meets the job specification in terms of skills, qualifications and experience Unsuccessful applicants notified - the organisation will wait for the successful applicants
27
Explain selection options
Selection options developing a short list of suitable applicants helps to limit the number of interviews to be conducted or tests and checks to be carried out the following devices are used in the selection process: Application forms: candidates outline information about themselves-e.g name, address, contact number or may require information about an applicants history, skills and experience Tests – these may be written or practical – and are designed to acess the aptitude, intelligence or ability. They are not used by all industries, and they are not always reliable as a sole indicator of applicants suitability for a position Interviews – This is the most common device used in the selection process. The interview must be well organized and structured and common questions must be asked in each interview to ensure a consistent basis for selection Background checks – the employer verifies the information on the application form by contacting referees or agencies for information about an applicants previous experience, performance or record Medical examinations – some jobs require physical attributes e.g police
28
Define discrimination
occurs when a policy or practice disadvantages a person or group based on a persona characteristic that is irrelevant to the performance of the work
29
Explain discrimination
Unfortunately discrimination sometimes occurs in the interview process After the interview Is completed and the checks and testing have been completed the most suitable applicant will be offered the position – That person is the applicant that best matches the job specification, in terms of experience, skills and qualifications Once an applicant has accepted an organisation is expected to inform and provide feedback to failed candidates
30
Explain a typical recruitment process
``` Hr planning Job description Job specification Advertise job Screen applicants Short list candidates Referee checks Offer job to candidate ```
31
Explain discrimination
Discrimination occurs when a person is disadvantaged because of a personal charactersitc such as their age or sex. Discrimination sometimes occurs in the recruitement process where a potential employee is not employed because of personal characteristics that have no relevance about whether they can do the job or not. To prevent discrimination and avoid large fines, employers need to: Comply with legislation such as ‘the equal opportunity act 2010 vic’ Commit to workplace free from discrimination Write and communicate policies to prevent discrimination Train managers and staff in cultural diversity issues, and about ways to prevent or deal with discrimination Appoint an officer employees can see regarding discrimination in the workplace
32
How to prevent discrimination
To prevent discrimination and avoid large fines, employers need to: Comply with legislation such as ‘the equal opportunity act 2010 vic’ Commit to workplace free from discrimination Write and communicate policies to prevent discrimination Train managers and staff in cultural diversity issues, and about ways to prevent or deal with discrimination Appoint an officer employees can see regarding discrimination in the workplace
33
Difference between direct and indirect discrimination
Direct discrimination – treating a person or a group less favorably than another person or group in similar circumstances Indirect discrimination – Treatment that seems unfair but that has an unequal impact on one person or group compared with others
34
What are employee conditions
All the conditions of employment other than remuneration
35
Define enterprise bargaining
is the process of directly negotiating wages and employment conditions between employees and employers at enterprise level
36
Define part time employment
Involves working fewer ordinary weekly or monthly hours compared with full time employees Get ‘pro-rata’ benefits of full time employees (proportionate to hours workerd) Individuals benefit due to continuity of work and job security Organisations benefit from greater motivation compared to full time employees, and ability to schedule people specifically for peak periods
37
Define casual employment
Are employed on an hourly basis Do not receive entitlements such as long service or sick leave Paid a loading – this is extra pay on top of normal full time rate, and have the flexibility to accept and reject work at any particular time – however there is no sense of job security
38
Employees are increasingly providing employees with greater flexibility in terms of hours and other conditions which attracts many employees such as offering:
Take time off or receive extra pay for overtime Flexibility with regard to when work takes place (start – finish *flextime) Career breaks allowing time off without pay Work from home arrangements on full-time or part-time basis Part year employment Job sharing Family leave (in addition to maternity, paternity and parental leave)
39
Define and explain remuneration
is monetary payment in return for the work an employee performs Includes other rewards an employee receives such as superannuation bonuses, commissions, allowances, healthcare, childcare and gym memberships ‘National Employment Standards’ contain the 10 minimum workplace condition an organisation must offer (rate of pay, hours worked, annual leave) Organisations must offer more than the minimum to attract potential employees; such as greater wages or bonuses conditions such as childcare (employer of choice)
40
Define a wage
Is an hourly rate of pay
41
Define salary
employees who earn a salary are paid a fixed amount each year, which is then divided in to 26 to give fortnightly salary or by 12 to give monthly salary.
42
Define salary sacrifice
(salary packaging)– foregoing salary in order to receive another non-cash benefit of equivalent value e.g. car This item is often purchased out of their pre-tax salary, making the salary sacrifice more attractive for employees
43
Explain a remuneration package
Remuneration package – a combination of monetary and non-monetary benefits an employee receives in exchange for their labour - the combination of base wage and other extras such as the potential to earn a bonus Remuneration is one factor in retaining productive and efficient employees who are loyal and display a high degree of commitment to their work Paying employees appropriately is important because it affects productivity by increasing employee motivation and lowering rates of absenteeism and staff turnover An organisation will only employ someone if the return is greater than the cost – through the total cost of an employee is the single wage or salary paid – the employer is responsible for other employee expenses. These expenses are referred to as ‘on costs’ or ‘non-wage benefits’ which account for 30-40% of the remuneration package ``` The main on-costs include: Superannuation Occupational health and safety Holiday pay Study leave Parental leave Workers compensation Leave holiday ```
44
Main types of on costs
``` An organisation will only employ someone if the return is greater than the cost – through the total cost of an employee is the single wage or salary paid – the employer is responsible for other employee expenses. These expenses are referred to as ‘on costs’ or ‘non-wage benefits’ which account for 30-40% of the remuneration package The main on-costs include: Superannuation Occupational health and safety Holiday pay Study leave Parental leave Workers compensation Leave holiday ```
45
Define on costs (non wage benefits)
are additional costs involved in hiring an employee, above the cost of their wages, and include superannuation, long service and workers compensation
46
Define induction
is a process of acquiring new employees with the organisation – it’s history, structures, objectives, culture and practices and the jobs they will perform
47
Explain the importance of induction
Induction helps employees adapt to their new environment – learning how their new organisation operates A well prepared orgnisation will help their new employees through this stressful period Induction is also know as – orientation or on-boarding An affective induction process will be carefully planned an introduce new employees to the job, their co-workers, the organisation, and how it operates Key areas covered in the induction process will generally include; it’s culture, general conditions and benefits, training, safety and career paths Supervisors, co-workers, and HR may be involved in the induction – it is crucial to retain employees – as most employees leave within first 6 months of employment
48
A well prepared induction program will
Reduce stress and anxiety that may be associated with starting a new job Build a new employees confidence in the job by: Assisting the employee to feel part of the organisation Helping to establish good worker relations with co-workers and supervisors Ensure greater awareness of major safety policies and procedures
49
What is the purpose of induction
Ease employee’s adjustments to the organisation Provide information about the organisation Provide information about employees tasks, duties and responsibilities and ensure they know what is expected of them
50
Steps to an effective induction process
Introduction to organisation – provide information about organisations operations and purpose as well as showing employee around the workplace Formalities – outline the conditions of employment (such as hours of work, pay, overtime, uniform) Explain employees role – duties, responsibilities and job procedures Introduction to staff – first introduction of new employee to other staff and immediate supervisor Mentor – Organise an experienced staff member to act as a mentor to help employee settle in Training – where necessary; such as IT and internal systems and procedures Follow up – allow employee to ask any unanswered questions
51
Benefits of an effective induction
Establish good working relation between employees and employers Increase likelihood of employee remaining at the organisation Improve worker performance through: Increase confidence Increase motivation Increase productivity Improved OHS Reducing time required to reach peak efficiency, productivity and effectiveness Ensure employees are aware of the various aspects of their role: Job requirements How their role fits with the organisation (and their goals) Lines of responsibility Who to contact with further questions
52
Maintenance phase: | Define employee training
Generally refers to the process of teaching staff how to do their job more efficiently and effectively by boosting their knowledge and skills Eg Teaching staff to perform the jobs more productively
53
Define development
Refers to activities that prepare staff to take on greater responsibilities in the future Training and development are aimed at improving employee’s skills and abilities – they are necessary for both personal and organizational growth – therefore aims to improve workers performance
54
Explain the aim of training
The aim of training is to seek long-term change in employee’s skills, knowledge, attitudes and behavior in order to improve worker performance in the organisation Effective training and development maintains an organisations competitive advantage A ‘learning organisation’ monitors and interprets it’s environment, seeking to improve it’s understanding of the inter-relationships between it’s actions and it’s environment Training allows for continuous growth and improvement
55
Training: | Define a learning organisation
monitors and interprets it’s environment, seeking to improve it’s understanding of the inter-relationships between it’s actions and it’s environment
56
Benefits of training for employees include
"Opportunity for promotion and self-improvement Improved job satisfaction through better job performance A challenge – the chance to learn new things Adaptability – greater ability to adapt and cope with changes "
57
Explain the benefits of training for organisations
"Higher productivity though better job performance and more efficient use of HR Goals and objectives more effectively met Reduced costs to less labour turnover and absenteeism and fewer errors and accidents A more capable and mobile workforce "
58
Explain how technology creates a need for ongoing training
It is the task of HR manager to plan for effective introduction of new technology Training must be identified well in advance of any technological implementation this will ensure change happens at a pace consistent with the capabilities and expectations of the workforce. It also means HR managers must constantly consider the skills required by the workforce in the future Existing workforce must be trained and re-trained as new technology is implemented Untrained employees will often resist new technology, or not use it effectively
59
Explain different types of training
Off –the job experience – classroom activities, simulations – employee sent to external education institution to assist in improving job performance (TAFE) On – the job experience – employee works with supervisor or colleges to improve skills or knowledge in a regular ongoing manner as a part of normal daily duties, including shadowing, coaching and mentoring Action learning – Learning by experience solving real workplace problems e.g NAB use this form of training Competency based learning – identify skill and strengths and areas where further training is required Training with industry – specifically developing skills of first line supervisors Corporate universities – organisations form partnerships with academic institutions to develop training Training technologies – e.g. computer based training (computer becomes vehicle for training) multimedia training, and web based training (via internet
60
Define development
Refers to activities that prepare staff to take on greater responsibilities in the future
61
Explain development
Benefits both employee and employer Effective development programs ensure: Staff are maintained Motivation and commitment are enhanced through promotion opportunities for all employees over the longer term Method of development (how an employee is developed) will depend on the organisations needs as well as the employees career stage e.g. difference between early stages of employment to later career focuses *find pros + cons
62
Programs aimed specifically effective managers may focus on the use of:
Job rotation – the employee experiences many different aspects of an organisation reducing boredom due to variety and exposure to a variety of situations. E.g. moving manager around a business where they apply their management skills to different situations Mentoring – A mentor acts like a coach by supporting employee as they learn allowing the employee to gain experience and skills from another person in the organisation Formal business trading – this may be done through programs such as ‘masters of business administration (MBA)
63
Define and explain succession planning
Focuses on preparing employees with potential to take on key management positions within the organisation in the future should the need arise Important because some management roles require certain skills or specific knowledge of Organisational operations – may take years to acquire
64
Define + explain recognition and reward programs
aim at acknowledging the work an employee has done and providing some sort of benefit such as; cash, merchandise, travel or gift certificates in return for a job well done Appropriate recognition + rewarding should – attract, maintain and motivate employees Reward management is concerned with establishing and implementing strategies and policies that aim to reward people fairly, equitably and consistently in accordance with the organisations values Reinforce cooperate strategies that facilitate change or support desirable corporate values, such as a customer focus
65
Define intrinsic rewards
come from the tasks or job itself, such as recognition or feedback or a sense of achievement
66
Define extrinsic rewards
are outside the job itself, either monetary or non-monetary
67
Explain rewards
Rewards can be monetary or non-monetary and intrinsic or extrinsic Rewards should reinforce Organisational strategies –e.g profit sharing reinforces a culture that values quality, customer service, participation and team work Rewards should provide motivation by rewarding high-performance employees Rewards process must be fair and equitable – e.g. criteria for gaining awards Relating performance based pay to teamwork may provide a clear focus for employees and reward high performing employees for their efforts It is important to note – performance based rewards can lead to problems if worker feel they have worked harder and did not receive a reward, or rivalry between workers as a result of rewards - which is why employees must feel the system is fair + equitable
68
Benefits of recognition and rewards
Increased employee motivation leading to greater productivity Recruiting and retaining best employees Achieving Organisational objectives
69
Explain types of intrinsic rewards
``` NON MONETARY The job: Intreasting work Challenges Responsibility Recognition + feedback Promotion Sense of achievement ``` ``` Environment: Good policies + practices Effective leaders + supervisors Good co-worker relationships Safe and healthy work environment Fair treatment Social activities ```
70
Explain examples of extrinsic rewards
``` Either monetary or non monetary Direct (cash) Wages Salaries Commissions Incentive performance bonus plans ``` Non cash Individual awards Group awards ``` Indirect (fringe benefits) Insurance Holidays Childcare Medical heath costs Flexible work schedules Free legal advice Personal loans at cheaper rates Moving expenses Training expenses Company car Parking space Discount purchases + ```
71
Explain the matrix reward structure
Employee attraction Base salary, cooperate benefit share, superannuation Employee retention Base salary, performance incentives, superannuation, career planning + other benefits Productivity Gainsharing plan, performance incentive + career planning Individual contribution Performance incentive Employee security Other benefits + career planning Company performance Cooperate profit share
72
Define performance management
focuses on improving both Organisational and individual performance through relating Organisational performance objectives to individual employee performance objectives Setting objectives to help achieve organisation wide objectives Effective performance management looks at whether jobs are well designed and if employees with the right skills have been hired to work
73
Define performance appraisal
Is the formal assessment of how effectively and efficiently an employees is performing in an organisation Involves assessing employee performance against specific goals
74
Main performance appraisals objectives include
Provide feedback from management to employees on work performance Measure and determine what pay rises should be awarded Monitor employee selection Identify employees training and development needs Identify new objectives and put a plain in place to improve future performance If employees continually peform below expectations, the organisations recruitment and selection process, may need to be changed, or extra training and development required
75
Purpose of performance appraisals
Evaluation purposes: decisions about recruitment and selection, pay, promotion, demotion, retrenchment and termination Developmental purposes: research, feedback, career development, and human resource planning and performance improvement
76
Effective performance appraisals should:
Employees understand what I expected of the in their job Tasks and duties on job description provide minimum performance standards Take place at regular intervals and are formally documented Assist with training and development and ensure succession planning Includes 3 key elements: Setting goals: Identify specific performance appraisal goals and determine aspects of performance that are to be measured Evaluation: of employee’s performance through observation and analysis. Compare performance against set goals and criteria Review: provision of feedback to employees Recognize strengths and reward successes (through promotion) Identify weaknesses and appropriate training and development needs Provide opportunity for employee make management aware of any problems of challenges faced in achieving goals
77
Define performance feedback
is the information provided to an employee after a performance appraisal Management should discuss both positive and negative aspects of employee’s performance encouraging an employee to continue with their positive behavior Management should non be simply telling employees whether their performances is at standards or not but rather provide valuable feedback to enable improvements
78
Define 360 degree feedback
A technique consists of having multiple appraisers (evaluators), including managers, co-workers, subordinates, customers as well as self-rating, to appraise employee performance and guide development
79
Common methods of appraisal
Management by objectives – where the employer and employee discuss and agree on the objectives to be evaluated. The employees progress is reviewed periodically and, if needed corrective measures are implemented Essay method – A manager keeps a journal on each employee being appraised. Notes may be restricted to specific aspects of job performance Critical incident method – is similar to essay method, however the manager records only exceptionally good or bad aspects of work performance Comparison method – Is where employees are ranked against pre-determined performance characteristics (rating scales) to assess all areas to performance, often incorporating statistical values as a means for measurement
80
Benefits of effective performance management - for employees
"Provides feedback to employee enabling self-evaluation for future development Allows goals and objectives to be set ensuring employees know what is expected in the future and what they need to achieve Identify future training needs for employees"
81
Benefits of effective performance management - for organisations
"Can be used to recognize good performance and increase motivation Provides clear guidance on promotion and pay rise decisions Helps monitor success of recruitment and selection procedures Assists in identifying new objectives and planning "
82
Define termination
is the ending of the employment of an employee Termination of employment is usually managed by HR manager, who must act both fairly and within the law When an employee leaves an organisation, it will either be voluntary or involuntary
83
Types of employee termination
``` Retirement Resignation Redundancy Retrenchment Dismissal ```
84
Define retirement (voluntary)
occurs when an employee decides to give up full-time or part-time work and no longer be apart of the labour force Many organisations provide advice and assistance to employees to help them prepare for retirement
85
Define resignation
is the voluntary ending of employment by the employee ‘quitting’ their job
86
People often resign due to
The offer of a promotion with another business To start their own business Boredom with their present job A change of lifestyle Usually the employee needs to give the employer sufficient notice of their intention of resining Organisations will not try and fill vacancies of job that have resulted from resignation or retirement when downsizing
87
Define redundancies (voluntary // involuntary)
Occurs when a person’s job no longer exists, usually due to technological changes, an Organisational restructure or a merger Unless the employee can be retained they will be made redundant The redundancy is not genuine id it would be reasonable to redeploy employee within organisation or associated entity of employee Voluntary redundancy is where employees nominate themselves for redundancy Involuntary redundancy is when an employee is asked to leave the business against their will
88
Explain the redundancy process
Determine the amount of redundancies required with employee representatives Offer voluntary redundancies (leave with settlement) for employees who are willing to leave the organisation. This often has an incentive over an involuntary redundancy e.g. extra pay Involuntary redundancies to meet the quota if there are not enough voluntary redundancies taken
89
Define retrenchment (involuntary)
occurs when a business dismisses an employee because there is not enough work to justify paying the employee
90
Explain retrenchment (involuntary)
Redundancy = due to the permanent elimination of some jobs – due to technological change removing the need for particular skills Retrenchment = due to lack of sufficient work to keep employee fully occupied (based on financial needs) Retrenchment is cycle tied closely to economic activity The HR manager must be aware of the rights of the employees in relation to redundancies and retrenchment – follow correct procedures
91
Define dismissal (involuntary)
occurs when the behavior of an employee is unacceptable and an organisation terminates their employment
92
Explain dismissal
Summary dismissal – occurs when an employee commits a serious breach of their employment contract (e.g. drunk at work) – no notice is required Dismissal on notice – occurs when an employee is not performing their job satisfactorily (performance indicated through performance appraisals) Organisations must provide advice and training to improve performance before considering dismissal The employee must be provided reason for dismissal + a set period of notice, or pay in lieu of notice The amount of notice depends on the: Employees contract or award that sets out employment conditions Age of the employee Continuous amount of time the employee worked for the organisation Other factors include: Relevant legislation (e.g. fair work act 2009) Employee entitlements (e.g. accrued leave) Employment classification (e.g part-time, casual, full-time or temporary)
93
Meeting legal requirements in termination process
It is important to remember that unlawful termination is not ethically and socially responsible because it is required by law to not occur – therefore no above legal requirements
94
Define unfair dismissal
occurs when the employee is dismissed because the employer has discriminated against them in some way, such as firing someone because she is pregnant The
95
The following factors are taken into account when determining whether a dismissal was harsh, unjust or unreasonable:
Valid reason for dismissal related to a persons capacity or conduct Whether person was notified of reason for dismissal, or given opportunity to respond to any reason related to capacity or conduct of the person Unreasonable refusal by employer to allow support person present at discussions related to dismissal Dismissal related to unsatisfactory performance where the person was not warned about unsatisfactory performance before the dismissal
96
Explain unlawful termination
Unlawful termination is when an employee is terminated for discriminatory reasons or reasons otherwise against the law E.g. sex, race, colour, gender, sexual preference, disability, status, family responsibilities, pregnancy, political opinions, absence of work due to illness or injury
97
Explain employee entitlements and termination
Some industrial instruments (e.g. awards) allow worker to receive payment Redundancy payments depend on duration of continuous employment from worker in the organisation Other entitlements may be owing to employees when they leave (e.g. long service leave)
98
Explain transition issues and termination of employees
Employees should provide assistance with helping redundant workers transition into their next job This may include: Counseling: Especially for involuntary termination Assist employees in removing negative feelings associated with leaving the organisation Outplacement Mainly for redundancies and dismissal Outplacement is a service which assists employees in regarding employment by assisting with job skills such as writing resumes, interview practice or providing an office to help employees find jobs which they are able to apply for Training for new skills: Mainly for redundancies and dismissal Upskilling employees allow employees to be more employable as other organisations will prefer to employ individual who is highly skilled Financial planning advice: Especially for voluntary termination Assist employees in managing their finances as they no longer have an income for a period of time and will need help in managing money o maintain their standard of living
99
Transition assistance - benefits and negatives of counselling
Benefit – improved cooperate image Benefit – reduced negative feelings associated with involuntary workers Disadvantage – costs significant amount of money and org will receive no productivity improvements from use of the practice
100
Transition assistance - benefits and negatives of outplacement
Benefit – improved cooperate image Benefit – external to the organisation therefore any negative feelings will not be held towards the organisation Disadvantage – costs significant amounts of money and the organisation will receive no productivity improvements from the use of this practice Disadvantage: The external organisation may not be suitably qualified to improve the ability of employees to regain employment
101
Transition assistance - benefits and negatives of training
Benefit – improved cooperate image Benefit – reduced negative feelings with involuntary termination Disadvantage - costs significant amounts of money and the organisation will receive no productivity improvements from the use of this practice
102
Transition assistance - benefits and negatives of finance planning
Benefit – improved cooperate image Disadvantage - costs significant amounts of money and the organisation will receive no productivity improvements from the use of this practice
103
Define full time permanent
Employees have an ongoing employment contract which includes legally required entitlements
104
Define reward management
Concerned with establishing and implementing strategies and policies that aim to reward people fairly equitably and consistently in accordance with their value to the organisation
105
Effective recognition and rewards
Includes both intrinsic and extrinsic rewards Reward process is fair: Criteria for rewards clearly communicated to all staff Reasons for rewarding employees should be provided Supports organisations goals and strategies Aim to recruit and retain best staff Motivate staff Recognise indivdual team and organisation
106
Benefits of recognition and rewarding
Increased motivation leading to improved productivity Retaning and recruiting best staff Achieving org objectives
107
Define reward management
Concerned with establishing and implementing strategies and policies that aim to reward people fairly equitably and consistently in accordance with their value to the organisation
108
Effective recognition and rewards
Includes both intrinsic and extrinsic rewards Reward process is fair: Criteria for rewards clearly communicated to all staff Reasons for rewarding employees should be provided Supports organisations goals and strategies Aim to recruit and retain best staff Motivate staff Recognise indivdual team and organisation
109
Benefits of recognition and rewarding
Increased motivation leading to improved productivity Retaning and recruiting best staff Achieving org objectives
110
Explain dismissal on notice
Dismissal on notice ◦used where employee is not performing their job satisfactorily ◦poor performance may be identified through the performance appraisal process ◦employee must first be given a warning about their unsatisfactory performance ◦organisation needs to provide advice and training to improve an employee’s performance before considering dismissal for poor work performance ◦employee must be provided with a reason for the dismissal ◦Once it is decided the employee will be dismissed – they will either be given a set period of notice or will be paid in lieu of notice.
111
Dismissal on notice - the amount of notice will depend on
amount of notice the employee will get depends on the following factors: •contract or award that sets out their employment conditions •age of the employee •how long they have worked for the organisation on a continuous basis
112
Explain summary dismissal
Summary Dismissal ◦the most serious form of dismissal ◦employee will be dismissed summarily when the employee commits a serious breach of their employment contract (an employee who is drunk at work or committed a criminal offence) ◦No notice is required to give an employee a summary dismissal - employment is terminated on the spot.
113
Define fixed term contract
Is where employment is offered for a specific peroid - prearranged finishing date (3-12 months) - having specific employee needs