BSNS105 Lecture 8 2013 Semester 1

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Business Studies
Diane Ruwhiu

Lecture 8 & 9: Managing People – Employing effective human resources Chapter 12 Key Focuses of this lecture: - Understand the role of Human Resource Management within organisations. - Create an awareness of the regulatory environment in which HRM operates. - Understand the 3 phases of the employment relationship (acquisition, maintenance and termination). - Attracting an Effective Workforce 1. What is Human Resource Management? Human: relating to, or characteristic of humankind Resources: a stock or supply of money, materials, staff, and other assets that can be drawn on (by a person or organization) in order to function effectively; * Definition 1: very narrow sense, because employees also have goals “Those management functions concerned with attracting, maintaining and developing people in the employment relationship” * Definition 2: what functional aspects does it cover? “The processes and activities aimed at utilising all employees to achieve organisational goals” * HRM happens in every organisation; who does it and how it gets done is often a function of the size of the firm and the ideology of its management; but whether it is a dedicated HR function or not, people get recruited, they need to do their jobs and they might need training, and get paid and pay. Employment relationships also come to an end at some time; whether it’s voluntary or involuntary, it’s a part of HRM – people management process. * Everyone experiences HRM, if not necessarily practice it, then it is important to know your rights, and understand how things are supposed to work; acquiring this knowledge helps the understanding of why we do things the way we do in organisations and where things are going wrong, so you don’t get caught up in a costly mistake (whether this is being dragged through a personal grievance, or simply hiring a useful person and having to get rid of them). The people you employ, the way they do their job, i.e. perform, are crucial determinants of firm performance – they are crucial to a firm’s competitive advantage. What HRM looks like in an organisation What HRM looks like in an organisation is dependent on organisational size; all organisations do HR, but do they have a dedicated HR person fulfilling this role? No. - 97% of business in NZ is small (19 or fewer staff), but most of the working labour force employed is the 3% (medium to large organisations). Given that 97 percent of all enterprises in New Zealand employ 19 or fewer staff, SMEs need to be heard. - For an organisation to have a dedicated HR function/person; ratio: 90employees/1HR staff - 90 x 75 HR staff = 6750 but the university has around 3000 staff – ratio is more 1:40 Organisation Size HR Presence Sample Organisation Small (less than 100) No Dept manager / owner role Strictly Coffee Company Medium (100 – 500) 2 – 3 Staff Port Otago Large (500+) 10+ staff (75 including H&S) University of Otago Complex/Multiple layers Multi-national (large based McDonalds across many countries) (host/home country) Large Organisation; Role of HRM FUNCTIONAL– DELIVERY OFCORE BUSINESS RESEARCH/TEACHING SERVICE- SUPPORT Somespecialistandsome Jack of alltrades HRM Practitioner Roles - Generalist ‘Jack of all trades’ (R&S/PM/T&D/H&S) - Specialist…high levels of knowledge (remuneration) - Consultant – Expertise outsourced - Recruitment examples or Select Personnel or Westaff; - Payroll/Rewards examples “Smart Payroll” or “Keylink Payroll Services” How HRM has evolved * Stage one: 1900-1940s; Welfare and Administration HRM has changed considerably over the past 100 years or so; major concerns: welfare of the workers and controlling the workforce and their activities – these concerns sit alongside of the introduction of scientific management and the desire to control the worker - General welfare – benevolent/paternalistic - Canteen operation - Work injuries and accidents…beginning of H&S - ‘Adjusting’ individual difficulties (tea & sympathy) - Controlling absenteeism - No dedicated/specific role * Stage two: 1940s-1970s; Personnel Management emerged Nature of the environment was changing and so too did people management- started to gain some credibility. Grained credibility as an actual role within organisations and along with that men started to fill these roles. Unions becoming more powerful at this stage; environment more competitive – needed someone to negotiate with the unions - Specialised activities appeared (record keeping - payroll, absenteeism) - Centralised the people management (HR) activities - Union negotiations/involvement; “partly a file clerk's job, partly a housekeeping job, partly a social worker's job, partly firefighting to head off union trouble or settle it” - Drucker - “… a bunch of drones whose apparent missions in life were to create paperwork, recruit secretaries who couldn’t type and issue memos whose impertinence was only exceeded by their irrelevance – harmless chaps spent their careers worshipping files, arranging company picnics and generally accomplishing nothing whatsoever of fundamental importance” – Rudman. The lack of respect saw the Personnel Management function re-brand itself. * Stage Three: Mid 1970s – late 1990s; Re-titled HRM - HR Managers appointed (prev. officers) - Centralised HRM (departments) - HR planning emphasised…less reactive - Firm and individual wellbeing pursued - Career and individual development emphasised - Occupational health and safety…stress * Stage Four: 2000 – Present; Strategic HRM Strategic Role - Ask how can HRM help the firm achieve its goals? • Cost leadership then adopt HRM initiatives that reduce labour costs - Decentralised Function • Partnership roles with line management - Line managers now ‘do’ HRM and HRM act as advisors - Environment changing rapidly – proactive HRM practices • e.g. e-cruiting - using internet, remote working What does the HRM role look like today? Linking HRM Enacting change strategy/practices when required: with business restructuring strategy Enactment of Advocating and practices on a looking after the day to day basis interests of the workforce The HR Model defined by Ulrich brings for main criteria: * Strategic Partner is about alignment of HR activities and initiatives with the global business strategy and it is the task of the HR Management and HR Business Partners. Sometimes, it sounds easy to implement Strategic Partnership, but it needs a lot of effort from Human Resources. * Change Agent is a very important area of the Ulrich’s HR Model. Change agent is about supporting the change and transition of the business in the area of the human capital in the organization. The role of Human Resources is the support for change activities in the change effort area and ensuring the capacity for the changes. * Administrative Expert changes over the period of time. In the beginning, it was just about ensuring the maximum possible quality of delivered services, but nowadays the stress is put on the possibility to provide quality service at the lowest possible costs to the organization. * Employee Champion is a very important role of Human Resources. The employee advocate knows what employees need and HRM should know it. The employee advocate is able to take care about the interest of employees and to protect them during the process of the change in the organization. But…do we do it well? “HRM seems to be mostly good intentions and whistling in the dark...big hat, no cattle” - Skinner * HRINZ – Outcomes from 2012 Convention - Practitioners need to: • Lose the HR garb • Develop business acumen - understand the business - At university … HR graduates study general business subjects - In the workplace … Job rotation (financial, marketing, operations…) A HRM Framework: Functional OurFocus Earlierin the Today course: Organisational Theory •Size •Divisionof Labour •Industry •Sector 2. Employment Regulation HR Activities must “fit” within the law; compliance with employment law. Employment rights & responsibilities Three Key Areas: 1. Employment Relationship Legislation - Employment Relations Act (2000) - Minimum Wage Act (1983) - Wages Protection Act (1983) - Holidays Act (2003) 2. Health and Safety at Work - Health and Safety in Employment Act (1992) & Amendment (2002) 3. Equalising Employment - Human Rights Act (1993) Employment Legislation: Employment Relations Act (2000) - Overarching framework for employment relationships in NZ - Sets the scene/tone - Influenced by Government ideology *Examples: - Anti-union (ECA 1991 – National) / pro-union (ERA 2000 – Labour) - How will issues get handled (mediation, judicial intervention) * May tip the scales more in favour of the interests of employers or in favour of the interests of employees and unions * Objective: (a) To build productive employment relationships through the promotion of good faith in all aspects of the employment environment and of the employment relationship— (i) By recognising that employment relationships must be built not only on the implied mutual obligations of trust and confidence, but also on a legislative requirement for good faith behaviour Example: - Bargaining in ‘good faith’ over wages - If you say “Can’t afford pay rise for the workforce” then need to be prepared to open up the books. Other key features: - 1 July 2011: Every employee must have a written Employment Agreement: - Must be signed by both parties (prior to starting work) • Must contain: - The names of the employer and employee. - A description of the work to be performed. - An indication of where the employee will work. - The working hours. - The wages or salary. - A plain-language explanation of the services available for sorting out employment relationship problems. - Notice of the 90 day time limit to raise a personal grievance. Personal Grievance Procedure Provision for redress when things go wrong; entitlement for every employee * Coverage: 1. Unjustified Dismissal: – Substantive justification: • Offence sufficiently serious to warrant dismissal • Major offence/Series of minor offences – Procedural fairness: • Full investigation; details of allegations; opportunity to refute allegations; unbiased consideration * Summary Dismissal examples: 1. Wilful falsification of information on job application form, engagement form or any other Company documentation; 2. Bringing drugs or intoxicating liquors onto Company premises, or consuming drugs or intoxicating liquors on the premises; 3. Gambling on the premises; 4. Possession of Company property without proper written authorisation or taking Company property from the premises without written authorisation; 5. Assaulting another employee on Company premises; 6. Possession of another employee’s personal property without that employee’s consent 7. Refusal to perform work assigned, refusal to accept reasonable overtime or walking off the job. E.g. refusal to deliver pizzas after 10pm when on a restricted drivers license is not refusal to perform work; illegal for you to do so and as such the request is not reasonable * Minor Misconduct examples: 1. Threatening, intimidating, coercing or interfering with other employees; 2. Reporting late for work; 3. Posting of offensive notices on the notice boards or elsewhere on the premises; 4. Without good reason failing to report by telephone that he/she is unable to commence work at his usual time; 5. Unless sick or because of some personal emergency failing to complete his stipulated hours of work; 6. Failure to report any accident requiring medical treatment. House Rules - HR policies and procedures; help to manage the workplace To deal with following behaviours: - Negligence, unreliability, interfering with the rights of others, theft, safety offences - E.g. UoO internet usage policy * House Rules and Email Usage - What is offensive? Variable - What did the policy say? Not known, and sending crude emails part of the ‘culture’ - Did the employee know about the policy? No - What are the consequences of such actions? Unaware they could lose their job - Document and have employee sign ‘House Rules Employers’ Perspective: Minor Misconduct: Warnings Issued Possible Warnings Process: - First offence: a verbal warning issued - Second offence: a written warning issued and a copy forwarded to the Local District Secretary of the respective union. - Third breach of the company’s code of conduct: the employee will be dismissed. Any warning shall lapse twelve months after the date of issue. * PG coverage:: * Remedies & processes for dealing WITH PG: - Unjustified Dismissal - Reinstatement - Unjustified Disadvantage - Monies for - Racial Harassment - Lost wages - Sexual Harassment - Humiliation - Hurt feelings - Duress (stress) Employment Legislation * Minimum Wage Act 1983 - Minimum Rates - Adult minimum wage - $13.50 an hour - New entrants wage (less than 200 hrs) $10.80 * Wages Protection Act 1983: Employer must get written consent to make deductions from your pay, or pay wages in a form other than cash * Holidays Act 2003 - Minimum entitlements - Some employers extend entitlements as a recruiting inducement - Annual (4 weeks) - Public (not less than 11 – some must be taken on day they fall) - Sick (5 days after 6 mths, then 5 additional days for every 12 months - Parental: Paid (14 weeks); “Paid parental leave payments equal your normal pay (before tax) if you're an employee, or your average weekly earnings if you're self-employed, up to a current maximum of $441.62 a week before tax” or unpaid. - Bereavement: 3 days for immediate family members, 1 day for other. Health and Safety at Work Legislation Health and Safety in Employment Act 1992 - Aim: Prevent injury and promote excellence in Health and Safety management - Employer must: Identify hazards and eliminate them where practical to do so Health and Safety in Employment Act Amendment (2002) - Encourages a more inclusive approach to Occupational Health and Safety (OHS) management and strengthens the health dimension Equalising Employment: Human Rights Act (1993) The Human Rights Act 1993 protects people in New Zealand from discrimination in a number of areas of life. Discrimination occurs when a person is treated unfairly or less favourably than another person in the same or similar circumstances. Anti-discrimination IS NOT affirmative action; don’t have to promote these groups, but cannot actively discriminate against them. Cannot use these as a reason not to employ/promote etc someone in the workplace - age (from age 16 years) - colour - disability - employment status (unemployed or a recipient of benefit/compensation) - ethical belief (lack of religious belief) - ethnic or national origins (includes nationality and citizenship) - family status - marital status - political opinion (including having no political opinion) - race - religious belief - sex (includes childbirth and pregnancy) - sexual orientation (heterosexual, homosexual, lesbian, bisexual) The cost of failing to comply: - George Brickell, a police video producer, was awarded $242,000 in lost wages and compensation. The predominant cause of his Post Traumatic Stress Disorder, the High Court held, was his wor
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