TOPIC 4: HUMAN RESOURCES
Key Influences
• stakeholders – employers, employees, employer associations, unions, government organisations, society
• legal - the current legal framework
– the employment contract – common law (rights and obligations of employers and employees), minimum employment standards, minimum wage rates, awards, enterprise agreements, other employment contracts
– occupational health and safety and workers compensation
– antidiscrimination and equal employment opportunity
• economic
• technological
• social – changing work patterns, living standards
• ethics and corporate social responsibility
• legal - the current legal framework
– the employment contract – common law (rights and obligations of employers and employees), minimum employment standards, minimum wage rates, awards, enterprise agreements, other employment contracts
– occupational health and safety and workers compensation
– antidiscrimination and equal employment opportunity
• economic
• technological
• social – changing work patterns, living standards
• ethics and corporate social responsibility
Stakeholders
Image source: Blackbiz 2012, 'Partner', http://www.blackbiz.com.au/partner.html [accessed 12 June 2013]
TASK:
- Employers
- Employees - See this YouTube video: Employees as Stakeholders
- Employer associations - ACCI, BCA, Australian Industry Group
- Unions - ACTU, TWU
- Government associations - Fair Work Commission, Federal Court of Australia, Australian Human Rights Commission, WGEA, Office of Industrial Relations (NSW), Department of Employment
- Society - How does society in general influence the management of human resources?
TASK:
Legal
The laws about employment contracts have been changing significantly over the last 2o years with government decentralising responsibilities of well-functioning workplaces from the government back to employers and employees. Common law is what is established over time by the court system. Common law has established what constitutes a contract but more pertinent to employment contracts, it has established the rights and obligations of employers and employees through the implied conditions. The law firm, Australian Workplace Lawyers outlines the implied terms as follows:
There still remains many government measures to protect workers due to the power imbalance between employers and employees across all employment arrangements, such as minimum employment standards and minimum wage rates.
The awards system act as a safety net of wage rates and employment conditions for particular industries and occupations for employees. However, businesses are encouraged to develop enterprise agreements (or multi-enterprise agreements - MEAs) to allow more flexible working arrangements
There are other employment contracts not covered by specific awards or enterprise agreements, including many high income earners, trainees and apprentices (miscellaneous awards), juniors (paid at lower rates than adults), employees with disabilities and piece rates and commission payments.
The awards system act as a safety net of wage rates and employment conditions for particular industries and occupations for employees. However, businesses are encouraged to develop enterprise agreements (or multi-enterprise agreements - MEAs) to allow more flexible working arrangements
There are other employment contracts not covered by specific awards or enterprise agreements, including many high income earners, trainees and apprentices (miscellaneous awards), juniors (paid at lower rates than adults), employees with disabilities and piece rates and commission payments.
Other laws to protect employees in the workplace include:
- work health and safety (for further information see Managing risks to health and safety in the workplace)
- workers compensation - basically compulsory insurance businesses has to pay to cover accidents in the workplace
- antidiscrimination laws to prevent employers discriminating on the basis of race, religion, gender and much more (also see An employer's guide to Australia's antidiscrimination laws)
- equal employment opportunity (EEO) was originally about a push for women having equal rights to gain employment. It is now more about employers being pro-active in ensuring they are treating everyone equally in their hiring processes and within the workplace, such as having a written policy for inclusion and diversity. Some employers even use a quota system to make sure they are properly representing the wider population within the workplace. EEO is also a term used in reference to the reporting requirements of businesses to government about certain groups represented in their workplace: Aboriginal and Torres Strait Islander people, immigrants from a non-English speaking background and their children, people who have or have had a disability, and women.
Economic influence
Economies run in cycles. In times of growth (boom), incomes increase and people buy more goods and services. The only real problem with this is if it leads to inflation which can then result in higher interest rates being set by central banks (RBA in Australia). When there are downturns in the economy people spend less and businesses may need to reduce the number of staff they employ.
Globalisation and improvements in technology have led to structural changes in various ways. In Australia there has been a distinct shift away from agriculture and manufacturing to services (tourism, education, retail, etc). There has also been a growth in the mining sector leading to Australia's latest growth period and one of the main reasons Australia made it through the Global Financial Crisis (GFC) relatively unscathed. See this RBA Report for more information. The 2019/20 Coronavirus (COVID-19) is currently causing a major disruption to economic growth.
TASK: This task is based on a question from the 2009 HSC.
In response to an economic downturn a manager plans to implement a new work roster that will reduce the number of hours offered to staff. The manager expects some staff will be dissatisfied.
Discuss the impact on each of the HR stakeholders.
Globalisation and improvements in technology have led to structural changes in various ways. In Australia there has been a distinct shift away from agriculture and manufacturing to services (tourism, education, retail, etc). There has also been a growth in the mining sector leading to Australia's latest growth period and one of the main reasons Australia made it through the Global Financial Crisis (GFC) relatively unscathed. See this RBA Report for more information. The 2019/20 Coronavirus (COVID-19) is currently causing a major disruption to economic growth.
TASK: This task is based on a question from the 2009 HSC.
In response to an economic downturn a manager plans to implement a new work roster that will reduce the number of hours offered to staff. The manager expects some staff will be dissatisfied.
Discuss the impact on each of the HR stakeholders.
Technological influence
TASK: Read about Technology's influence on the HR field, summarise and discuss what technological influence has had the greatest impact on working environments.
The following diagram from Biz/Ed (no longer exists) shows the influence of changing technology and social attitudes on businesses.
The following diagram from Biz/Ed (no longer exists) shows the influence of changing technology and social attitudes on businesses.
Social influence
TASK: Read through the Lloyds TSB Case Study about how HR were influenced by social change into changing their work patterns and answer the follow questions (from The Times 100 Business Case Studies):
- What social and economic changes have led to an increase need for flexible working?
- Why would an organisation like Lloyds TSB wish to adopt flexible working patterns?
- Select two kinds of flexible working arrangements and explain how both an employee and an employer may gain from them.
- Using a medium sized business you know, assess the value or otherwise of allowing flexible working.
Ethics and social responsibility
TASK: Access JB Hi-Fi's Code of Conduct from its Corporate Governance webpage. Evaluate this document for how effective it would be at addressing society's current concerns for ethical behaviour and social responsibility.