HUMAN RESOURCES

The focus of this topic is the contribution of human resource management to business performance

1 Role of human resource management

● strategic role of human resources

● interdependence with other key business functions
● outsourcing
○ human resource functions
○ using contractors
■ domestic, global

2 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
○ work health and safety and workers compensation
○ anti-discrimination and equal employment opportunity
● economic
● technological
● social – changing work patterns, living standards
● ethics and corporate social responsibility

3 Processes of Human Resource Management

● acquisition
● development
● maintenance
● separation

4 Strategies in Human Resource Management

● leadership style
● job design – general or specific tasks
● recruitment – internal or external, general or specific skills
● training and development – current or future skills
● performance management – developmental or administrative
● rewards – monetary and non-monetary, individual or group, performance pay
● global – costs, skills, supply
● workplace disputes
○ resolution – negotiation, mediation, grievance procedures, involvement of courts and
tribunals

5 Effectiveness of human resource management

● Indicators
○ Corporate culture
○ Benchmarking key variables
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 ○ Changes in staff turnover
○ Absenteeism
○ Accident
○ Levels of disputation
○ Worker satisfaction

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 ROLE OF HUMAN RESOURCE MANAGEMENT

STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT

● Strategic role ​= to provide business with people who have skills and attributes required to achieve
long term goals
● Human Resource Management (HRM​) = Management of the total relationship between an
employer and employee in order to achieve the strategic goals of the business
○ Employer = individual who exercises control over employees, has responsibility for the
payment of wages or salaries, and holds the power to dismiss employees → employee =
worker under an employees control
○ HR should consider employees as assets rather than expenses → encourages open
communication and goal orientation → aims to reduce conflict through effective procedures,
strategies and relationships
○ Effective HR management contributes to higher efficiency, productivity, profitability and
brand image (increased goodwill)
○ Ineffective HR management will lead to problems with worker dissatisfaction, loss of
productivity and increased costs associated with high employee turnover rates
○ HR includes functions such as recruitment, training and development, separation, generating
equal employment opportunity, alignment of factors to achieve business goals, ethical
practices and CSR
STRATEGIC APPROACH TO MANAGING EMPLOYEES INCLUDE:
● Seeing an effective workplace as a way of adding value to all areas of bus performance
● Focusing on the use of specific HRM strategies to retain, rewards and motivate effective and skilled
employees to achieve the bus objectives → increase potential bus success
● Ensuring HR adds value to the business by developing and maintaining a workforce that is
well-suited, trained, efficient, productive, loyal, flexible, motivated and adaptive to change

INTERDEPENDENCE WITH OTHER KEY BUSINESS FUNCTIONS

● Interdependence = mutual dependence that they key business functions have on one another
○ Awareness of global trends and labour market issues, industrial relations policies, risk
management and strategies is important to evaluate when HR managers are making
executive decisions about strategic issues like a change in product, service or organisation
of work
OPERATIONS FINANCE MARKETING

● Works with HR to ensure ● Helps HR achieve objectives ● Involved in product design

bus has recruited staff with and is main source of and development → HR
skills and experience performance measurement trains for their departments
necessary to produce the data (earnings, productivity → require certain skills and
product etc) → provides insight into the experience
● HR implemented T&D staffing and development ● In many cases, staff are
programs to increase needs of the bus public face of the business
efficiency and productivity of ● HR must work within budgets → actions towards
operations provided by fiance to fund consumers influence their
● Ensures clear training and development, decision to purchase and
communication between workplace education issues, recommend to others 00>
employees and employers in WHS, and remuneration HR trains them to market

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 working towards goals → ● HR manages workforce effectively
clear communication = less effectively and efficiently → ● HR maintains employees =
mistakes sales = income marketing rewards
● Less turnover = less time employees for performing
spent on training staff for well
bus op

OUTSOURCING
● Outsourcing ​= contracting out business functions involves use of third-party specialist businesses
(eg. recruitment firms) → aims to take adv of specialist skills provided by the comp and to achieve a
reduction in labour costs
○ Outsourcing offshore = global subcontracting → can significantly reduce some costs
○ Main reasons of outsourcing:
■ Obtain superior service, better functional quality and lower costs
■ Reduce need to employ full time staff for HR
■ Allows bus’ to concentrate on their core business areas

HR FUNCTIONS
● Allows firms to focus on business core as they grow, while experts in HR assist in planning for
growth, development and management of staff during this phase
● Can be used to review bus practices and implement strategies

MOST COMMONLY OUTSOURCED HR FUNCTIONS AND AREAS

HR FUNCTIONS COMMONLY OUTSOURCED HR AREAS COMMONLY OUTSOURCED FOR

REVIEW OR DEVELOPMENT

● Recruitment ● HR information systems (HRIS)

● Induction ● Change management
● Leadership training ● Training needs evaluation
● Mediatio ● Compensation (wages and salaries) systems
● Outplacement ● Performance management systems
● Payroll ● Succession planning
● High performance coaching
● Employee surveys
● Written policies and programs
● Training and development
● Benchmarking

USING CONTRACTORS
● Contractors​ = external provider
● Secondment​ = assignment of a member of one organisation to another organisation for a
temporary period
○ Opportunity to develop bus relationships, share and gain external knowledge and enhance
skills
● Primarily used to create cost savings, access to greater expertise, and capabilities to increase
competitiveness
● Forms of outsourcing:

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 ○ Employment agency​ = host company provides employees/manager their superannuation
and insurance
○ Dependent contractors​ = workers w/ no control over their working procedures
○ Independent contractors​ = operate their own business and set own terms of employment
■ Independent contractor = when an individual's employment by one employer is not
outgoing and an agreed fee is paid for their service → contract of service (eg. builder,
electricians
○ Outsourced suppliers​ = supply goods and services, control their own work procedures and
work for multiple clients

TYPES OF CONTRACTING

DOMESTIC SUBCONTRACTING GLOBAL SUBCONTRACTING

● Avoids need to employ additional ‘in-house’ staff ● Opens gateway to operating in overseas
and therefore avoids all the overhead expenses markets
involved ● Process outsourcing = outsourcing repetitive,
● Subcontracting work within Australia easily measured and documented work (eg.
● Attractive to SMEs who cannot undertake payroll management)
internal auditing and compliance updates ● Project outsourcing = involved use of intellectual
● Can improve quality, efficiency and productivity property and strategic bus knowledge
at a cheaper price → generate greater ○ Found in HR, research, design and
competitive advantage information tech (IT)
● Contractors base knowledge on the operation of ○ Difficult to measure and control → quality
Australian bus’ and therefore understand the cannot be anticipated → carries more
market risk

ADVANTAGES DISADVANTAGES

DOMESTIC ● Expert knowledge in based on how AUS ● Can Be more expensive → wage costs
bus’ operate are higher in AUS than other low-cost
● Easy communication → same time zone global markets
● Less likely to have problems bc in same ● Poor quality work can cause problems for
country → aware of local news bus
● Easier to contact and impose legal ● Operating in same competitive market
action if issues arise ● Instability → outsourcing company can go
out of bus therefore significantly affecting
operations
● Possibility of hidden costs → either legally
through fine print or scam

GLOBAL ● Cheaper → using developing and low ● Difficulty controlling quality and the
wage cost global economies reliability of the service → different
● Reduces costs and allows bus’ to standards of products required by law in
access labour without having to consider different countries → limited quality
issues such as minimum labour control → affect sales and profitability
requirements and WHS levels ● Cultural differences (eg. language and
● Made much easier w/ internet→ accent) may impact customer service and
websites can be used to guarantee communication
work, track time spent on actual work ● Loss of security and confidentiality of
etc… information

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 ● Secondment of managers/employees ● Difficult to enforce contracts due to
exposes them to innovative operations different legal systems → issues = sue
and strategies undertaken overseas company in their country
● High labour turnover, particularly in call
centres
● Well-qualified employees often replaced
by less qualified staff → quality of
services declines

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 INFLUENCES
KEY INFLUENCES: STAKEHOLDERS, LEGAL, ECONOMIC, TECHNOLOGICAL, SOCIAL
AND ETHICS AND CSR

STAKEHOLDERS
Stakeholders ​= any individual/group that has a common interest in/is affected by actions of a business
● Conflicts can arise due to differences and competing interests between stakeholders

EMPLOYERS ● Individual or organization that pays others to work for its business

EMPLOYEES ● An individual who provides his or her skills to a business in return for a regular
source of income

EMPLOYER ● Organisations that aim to promote the interests of employers within the
ASSOCIATIONS business environment
○ Lobby and consult with governments that benefits the interest of
employes
○ Advise members on equal employment opportunity, dismissal, wage
negotiation and legislative changes

UNIONS ● Organisations that aim to protect and promote the interests of employees within
the workplace
○ Assist with disputes
○ Act as a bargaining agent in wage negotiations
○ Advise members on workplace rights, WH&S, wage levels

GOVERNMENT ● Fair Work Australia → increased flexibility of employment contracts

ORGANISATIONS (decentralising wage negotiations), easier acquisition and separation
processes, decrease in power of unions
● Federal Court of Australia
● Human Rights and Equal Opportunity Commission

SOCIETY ● Businesses responding in a manner that is consistent with the view of society →
treating employees well

LEGAL - THE CURRENT LEGAL FRAMEWORK

● Employment contract creates obligations for employer and employees, and all bus’ operate within a
legal framework of common law and statute law (law passed by federal and state parliaments in
Acts)

THE EMPLOYMENT CONTRACT

COMMON LAW ● Duties of employers
○ Duty of care
○ Duty to pay the agreed wage
○ Duty to provide appropriate work
● Duties of employees
○ Duty to obey lawful instructions and commands
○ Duty to work with skill
○ Duty to disclose relevant information

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MINIMUM ● Requests for flexible working arrangements
EMPLOYMENT ● Annual leave, long service leave and other leave entitlements
STANDARDS ● Notice of termination and redundancy pay

MINIMUM WAGE ● Determined by Minimum Wage Panel of Fair Work Australia

RATES ● Deferral minimum wage → $15.96 per hour

AWARDS ● Legal document that outlines the minimum wages and working conditions for all
employees working in a particular industry
● Works as a safety net - award variations cannot provide worse pay and conditions than
the original award

ENTERPRISE ● An agreement negotiated between employers and employees, usually represented by

AGREEMENTS unions, concerning their pay and work conditions - must comply with national
employment standards and pass “Better Off Overall Test”

OTHER ● Part-time contracts

EMPLOYMENT ● Contracts for casual work
CONTRACTS ● Individual contracts
○ Common law contracts
○ Operate outside system of collective agreements and awards
○ Concerned with higher levels of pay
○ More flexible for the individual

WORK HEALTH AND SAFETY AND WORKERS COMPENSATION

● WH&S legislation dn workers compensation was established and is administered by Safe Work
Australian and is designed to encourage safe work practices, provide financial assistance to
workers who are injured in the workplace and assist workers to return to work
● Work Health and Safety Act 2011
○ Employers must provide staff with a safe workplace and seek to minimise any potential risk
that may arise
● Workers Compensation Act 1987 and Workers Compensation and Workplace Injury Management
Act 1998
○ Govern the process of employees gaining financial compensation for injuries sustained at
work and their subsequent return to work

ANTI-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

● Anti Discrimination Legislation
○ Prohibiting discrimination in the workplace on the grounds of gender, ethnicity, sexual
preference, religion or disability
○ Enforced by Human Rights and Equal Opportunity Commission, though it is the
responsibility of the employee to report claims
○ Legislation include: Sex Discrimination Act 1984 (Cth) and Racial Discrimination Act 1975
(Cth)

ECONOMIC
● Economic influences such as the economic cycle and globalisation, affect the role of HRM
● Use finance function to forecast and predict economic fluctuations

ECONOMIC ● Consumer spending and investment causing upswings and downswings in economy
CYCLE ● During ‘boom’ need more employees → higher demand for good and services,

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 therefore demand for labour
● Labour shortages during periods of economic growth = employers compete for
employees by offering higher wages and benefits → unions have stronger bargaining
power to demand as their services are needed desperately (consequence in higher
labour costs eg. wages)
● Downturn in economic cycle = decrease in demand for goods and services therefore
business forces to decrease size of their workforce and limit staff numbers to provide
higher wages for staying staff (strategic)
● Employment levels are connected to level of business activity → high employment =
less sales

STRUCTURAL ● Structural change​ = change in nature and pattern of production of goods and services
CHANGE within economy
● As each sector grows, recruitment and selection become important industrial issues
● Ageing population → flexible staffing arrangements, retention and mentoring increases
importance
● Effective training and staff empowerment = critical to business success in customer
services

GLOBALISATIO ● Globalisation has increased international competition therefore many businesses

N restructure, outsource non-core function or subcontract production to remain
competitive (eg. outsourcing to low cost labour developing countries)
● Has increased opportunity for HRM to attract and retain motivated and effective core
staff and make continuous improvements in productivity, costs, innovation, quality and
customer service
● Increased competition from foreign business leading to workers becoming retrenched -
downsizing or outsourcing
● Increased diversity of Australian workforce = greater access to wider range of skill and
multicultural workforce encouraged training for different authority approaches

TECHNOLOGICAL
● Technology​ = most important source of change to they way a business produces/provides goods
and/or services, communicates within business and to customers, competes in the market
● Impacts of technology on HR include:
○ Ongoing training for staff
○ Creation of new jobs or skills
○ Make some jobs redundant → retrenchments
■ Redundancy → places fear of little job security for other employees → psychological
effect → Lack of motivation → decreases employee productivity and competitiveness
○ Job designs undergo change
○ Efficiency gains → improvements in productivity, communication and competitiveness
● Increased workplace flexibility but has also resulted challenges in attracting skilled labour
● Businesses reengineering and restructuring as offshore networks and are making use of video
technology
● New communication technology = increased need for ongoing training programs and new protocols
to ensure work-life is maintained in a society where people are expected to always be on call

POSITIVE IMPACTS ON HR NEGATIVE IMPACTS ON HR

More efficient production techniques Transfer from labour to capital resource use = job loss

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Employees can learn from new workplace technologies Employee resistant to change

Improved ways for employees to deliver products Reduced satisfaction of staff as positions are less
valued

Decrease in repetitiveness of labour intensive work Less employee decision making

Fosters teamwork where staff teaches new technology

to fellow workers

SOCIAL
● Social influences affecting workforce today reflect changes to work patterns and living standards
● Managers will need to be aware of the changing and variety of individual needs of employees,
requiring family-friends, flexibility in hours of work, leave arrangements and cultural sensitivity

CHANGING WORK PATTERNS

● Increased mobility and flexibility of workers ​= many leaving full-time positions after developing
specialist skills and experience to become independent contractors or consultants
● Ageing workforce ​= likely to see skill shortage therefore population needs to be upskilled →
incentives to encourage postponed retirement → removement discrimination in recruitment of older
workers → opportunities to update skills
● Growth in service industries ​= retail, food services, accommodation and travel → need
communication skills
● Increases in casual and part-time work ​= offers flexibility for work life balance and allows
ageing/retiring workforce to ease out of full-time work and continue working part-time for longer
● Increased use of technology ​= employees are constantly being re-trained → less employment
opportunities for unskilled employees → increase in inertia within employees → need adaptable
workplace culture
● Increased participation of women ​= increasing demand for work life balance, shown in recent
improvements in parental/carer leave conditions → push for balance in male dominated workforce
● Balance between work and family = less full time employment
● Greater diversity of ethinc and cultural backgrounds in the workplace

LIVING STANDARDS
● Education, variations in skill and opportunities
● Standard of living = generally measured by standards such as real income per person, poverty
rates, access to and quality of health care, income growth inequality, and educational standards
● Australia has high living standards compared to the rest of the world → still visible gap for
indigenous/rural Australia
● High standard of living is seen in OH&S, regular wage increases, performance bonuses, benefits,
leave and superannuation benefits→ Australia demands a job that is safe, meaningful and
productive, where they are respected and earn enough money to support themselves and their
families → part of Australian culture
● High living standards create increased levels of demand for consumer goods, which stimulates
economy via spending
● Business seek to undercut conditions through excessive outsourcing and casualisation of workforce
will be challenged union who are keen to maintain high Australian living standards

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 ● Results make Australia attractive for working and immigration, meaning businesses have access to
both local and international well-skilled workforce

ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

● Ethics​ = moral principles that govern a person's behaviour or the conducting of an activity
● Corporate Social Responsibility (CSR) ​= commitment by a business to operate ethically and
contribute to sustainable development by delivering economic, social and environmental protection

ETHICS Ethics​ = moral principles that govern a person's behaviour or the conducting of an activity
Ethical business practices​ = those practices that are socially responsible, morally right and
fair
● Involves meeting legal obligations and taking it further by obeying social values and
expectations → not legally punishable, however, is punished through damaged
business reputation (decrease in goodwill)
● Variation in social laws between countries make it hard to know what is ethical →
business may choose to follow ethical standards from International Labour Organisation
(ILO)
● Code of conduct​ = statement of acceptable or unacceptable behaviours in a business
● Code of ethics​ = statement of a firm's values and principles
● Ethical HRM practices include:
○ Providing employees with a pleasant working environment and good (safe)
working conditions
○ Making staff feel secure, confident, equally values and rewarded for their efforts
○ Making business practices transparent
● Ethical issues in HRM include:
○ Discrimination → age, sex, maritial status, gender, disability etc…
○ Issues relating to fairness of employment contract and power balances
● Benefit of ethical practices:
○ Staff retention and absenteeism rates improve → staff feel more valued and
motivated
○ Business costs decrease → eg. recruitment and training
○ Significant marketing and business opportunities → positive publicity and media
attracted to ethical business

CORPORATE ● CSR aims to achieve Triple Bottom Line = profit, social justice, environmental
SOCIAL protection
RESPONSIBILITY ● By treating staff well and acting responsibly, employers are able to sustain valuable,
productive employees and avoid damage to their company reputation
● Consumers may reward CSR businesses by purchasing their products while non-CSR
businesses may be boycotted
● Non-CSR businesses → exploit employees, accept bribes, pollute environment
● Business can demonstrate commitment to CSR by investing in community projects,
supporting research initiatives introducing WH&S measures, implement
anti-discrimination programs, adopt environmentally friendly practices, apply code of
ethics to company operations

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 PROCESSES OF HUMAN RESOURCE MANAGEMENT

ACQUISITION
● Acquisition​ = process of obtaining/hiring/recruiting employees
○ Three stages of acquisition includes identifying staff needs, recruitment and selection
● Stage of the human resource cycle that ingles identifying staffing needs, recruitment and selection
● In order to examine whether it has the appropriate staff to meet business needs, needs to:
○ Identify skills and number of employees required in future
○ Analyse its existing workplace

Identifying staff needs

● Involves identifying and analysing internal and external environment → analyse the existing
workforce
○ Internal environment ​= business goals and culture → focus may be on expense
minimisation, growth, downsizing, improved customer service/quality (internal goals) →
influences demand for specific current and future skills and defines types of staff who will
suit business’ organisation structure/culture
○ External environment​ = economic conditions, competition, technology, legal/political and
social factors
○ Once needs are determined, options may be considered
● Create job description → written statement describing duties, tasks and responsibilities associated
with position
● Job specification → outlining key skills, experience and qualifications needed
● Established remuneration (money paid for work) figure → how much job is worth, including pay and
entitlements

Recruitment
● Recruitment​ = process of locating and attracting the right quantity and quality of applicants at the
right cost
● Employee selection = gathering info about each applicant and using it to choose most appropriate
applicant
● Effective recruitment and employee selection involves:
○ Evaluating and hiring qualified job applicants who are motivated and have values/goals
aligned with business
○ Filling job vacancies by recruiting applicants internally (promoting or changing role of existing
staff) or externally (outside the business)option to outsource through recruitment agency or
choose to advertise externally and conduct interviews, testing and grouping observations
○ Informing society about the need for employees through job search websites, in-store
advertisements, online publications, word of mouth etc
○ Using forms, interviews, assessment centres or tests to gather information about each
applicant
● Accumulate a pool of potential candidates for the job. From this pool, business makes selection
● Business can fill a vacancy by recruiting applicant internally or externally
○ Existing staff can receive a promotion, resulting in other staff to improve their performance
○ Business can advertise externally for applicants through methods such as:
■ Outsourcing to private employment agencies
■ Interviews
■ Trainee positions may be offered to complete cadetship courses
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Selection
● Screening process in staff acquisition
● Information gathered about applicants is reviewed and the most appropriate applicant is chosen.
● Individuals are assessed on their ability to interact with each other
● Process may involves
○ Interviews
○ Application forms
○ Written tests eg. maths or english

INTERNAL RECRUITMENT

ADVANTAGES DISADVANTAGES

● Familiarity of employees with business culture ● Unsuccessful applicant mays be demotivated

● Operations allows for easier placement/transition which therefore may lower productivity
which therefore has greater productivity ● Rivalry for positions → bad work relationships
● Lowered induction and training costs ● May lower the influx of new ideas and skills
● Less likely to fail because strengths and
weaknesses shown
● Motivational for staff → incentive to improve
performance in hopes of development
opportunities

EXTERNAL RECRUITMENT

ADVANTAGES DISADVANTAGES

● Wide applicant pool → new ideas and diversity ● Increased induction costs (compared to internal
● Dilutes internal politics and prevents rivalry recruitment)
● New ideas, perspectives and skills enter ● New employees may not fit in business culture or
business understand operations → therefore lowering
● Employ staff with specialist skills → save training productivity
$$ ● Risk of unknown staff
● Existing workers may feel unappreciated

DEVELOPMENT
Development​ = process of improving the skills, abilities and knowledge of staff to maintain a competitive
advantage and better perform their future role in the business
● Effective development programs ensure that experienced and talented staff are retained. They
enhance employees motivation and commitment to the business through promotion opportunities
over a longer term = increased performance
● Major role of HRM = establish effective T&D programs, train managers to implement them
effectively, and then evaluate training programs to determine whether performance has improved
due to the programs
● Can be expensive → production time lost and training course fees/costs
● Employee benefits → promotion, job satisfaction, challenge, adaptability and independence
● Employer benefits → higher productivity, employee loyalty (less staff turnover) ability for business to
change

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 ● Five stages to development include induction, ongoing training, organisational development,
mentoring and coaching, and performance appraisal
● Research shows that employees who feel competent in performing their jobs and are recognised for
their achievements are more motivated and satisfied at work. They achieve higher levels of
performance

INDUCTION ● Induction program ​= introducing new or existing employees to a new workplace and
role to help them transition, adapt and become familiar with the new environment
○ Encourages employees to have positive attitude and job confidence →
effective induction can boosts productivity and increase efficiency
○ Establishing good working relationships with supervisors and co-workers
○ Familiarise themselves with initial job skills and business culture
○ Explain company policy and procedures
● Effective induction program is carefully planned to introduce a new employee to the
job, their co-workers, business and work culture
● Well-prepared induction program”
○ Gives employees a positive attitude to the job and business
○ Builds a new employees confidence in the job
○ Stresses the major safety policies and procedures and explains their
application
○ Helps establish a good working relationships with co-workers and supervisors

TRAINING ● Ongoing training ​= upgrading an employees skills, knowledge and competency

(ONGOING) levels to improve current and future work performance in order to better meet the
business needs
● Aim: long-term change → essential to overcome business weaknesses, building on
strengths, and maintaining staff commitment
● Focus on acquiring new skills and knowledge helps business adapt to change and
maintain a competitive advantage
○ Lack of training damaging in long-term = increased turnover rates therefore
staff seek development in other businesses
● On-the-job (in-house) training ​= learning from other employees eg. traineeships,
mentoring, apprenticeships, job rotations, crash course from supervisor
● Off-the-job training​ = eg. TAFE, conferences, university courses, seminars,
programs
● Any activities aimed at improving an employees present and future performance in the
workforce. Some methods include on-the-job training (traineeships, apprenticeships)
and off-the-job (TAFE and university courses)
○ New employees should feel they know where they fit in and where the
business is headed; that is, its goals. This enables them to feel secure.
○ The aim of training is to seek a long-term change in employees skills,
knowledge, attitudes and behaviour in order to improve work performance in
the business
○ It is essential in overcoming business weaknesses, building on strengths and
maintaining staff commitment
○ Focus on acquiring new skills and knowledge helps a business adapt to
change and stay ahead of the competition

ORGANISATIONA ● Organisational development = educating employees with managerial potential on

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L DEVELOPMENT upcoming future roles (response to change → eg. business strategies, growth) to
motivate and retain talented staff
○ Todays organisational structures are less hierarchical and flatter in structure
■ Business w/ flatter structure benefit from employee ability to develop
shared ideas and solutions to problems → can improve efficiency,
effectiveness and response to customer needs
■ However inefficient at time of crisis
Involves strategies such as
● Job enlargement ​= increasing breadth of tasks in a job
● Job rotation​ = moving staff from one task to another over a period of time
● Job sharing​ = where two people share the same job

MENTORING AND ● Mentoring and coaching​ = mutually agreed role where experienced staff transfer
COACHING knowledge and skills through succession planning and building a personal relationship
○ Used to motivate and develop staff with leadership potential
○ Mentoring​ = individual life development, preparation for future roles (advice)
○ Coaching​ = improving improving skills, performance and helping individuals
manage specific work roles more effectively (structured with a timeframe)
● Mentoring and coaching are increasingly used to motivate and develop staff with
leadership potential
● Mentoring is a mutually agreed role, which suits experienced staff keen to transfer
knowledge and skills through succession planning. It is more focused on building a
person relationship that encoompasses the life of both parties
● Often those being mentored select their mentors and are free to accept or reject the
advice offered
MENTORING COACHING

ADVANTAGES ● Individual and personal ● Performance

therefore based on enhancement by building
sharing advice and skills and capabilities
experience → may assist ● Specific to employees
in improving way someone work function → helps
manages issues and them set goals and find
situations solutions
● Enhances morale → ● Share skills, knowledge
through personal growth etc. relevant to
● Allows for succession employees needs
planning within the ● Benefits through
business improved teamwork,
performance and
productivity, may
enhance morale

DISADVANTAGES ● LT process → can take ● Can be perceived

time negatively and
● Employees involved may employees may resist
not relate well together opportunity
● May not be effective

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PERFORMANCE ● Performance appraisal​ = formal assessment of employee’s strengths, weaknesses
APPRAISAL and opportunities for development
○ Provides a basis for feedback, future training needs, pay rises, promotions and
monitoring employee selection
○ Comparisons to past performance help set a criteria/standard or goal
○ If most employee continually perform below expectation, business’ recruitment
and selection process may need to be changes, or extra training and
development may be required → effective performance appraisal is therefore
crucial
Involves 4 main objectives
● To provide feedback from management to employees regarding work performance
● To act as a measurement against which promotion and pay rises can be determined
● To help business monitor its employee section
● To help identify employees training and development needs

MAINTENANCE
Maintenance​ = process of retaining staff and managing their wellbeing in the working environment →
involves looking after staff wellbeing, safety and health, and complying with industrial agreements and legal
responsibilities
● Effective maintenance allows for increased productivity, improved morale (confidence, enthusiasm,
discipline) among workers (battering work performance) and reduced level of absenteeism
● Having unmotivated staff decreases the accuracy and efficiency of work → results in defective and
low-quality products, increased absenteeism, and increase resignation → causes disruption and
rising labour costs
● Common strategies to motivate and encourage loyalty are to:
○ Lead rather than control
○ Engage in two-way communication
○ Delegate responsibilities
○ Include employees in decision making
○ Have conflict resolution processes
○ View employee as an individual
● Four essential elements of maintenance includes communication and workplace culture, employee
participation benefits, and legal compliance & corporate social responsibility

COMMUNICATION AND Communication and workplace culture = critical for effective workplace relationships and
WORKPLACE minimising conflict → poor communication = conflict and higher turnover rates
CULTURE ● Methods include = regular team meetings between managers/supervisors and
employees, staff bulletins, newsletters and staff surveys
● Strategies that focus on building trust and direct communication between people
are critical to prevent conflict → also prompts positive workplace culture through
recognition of staff achievements → communication with employees should be
positive and constructive

EMPLOYEE Employee participation = providing opportunities for employee participation will develop
PARTICIPATION their commitment to improving quality and efficiency and employe employees
● Eg. suggestion boxes, join consultative committees
● Trained to make decisions on the sport → solve problems.retain customers (via
quick and efficient service)

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 BENEFITS Benefits = offering employee incentives to work to the best of their abilities
● Business must carefully consider the value of these benefits in terms of staff
retention, morale, absenteeism, productivity and positive workplace culture as
they can be costly
● Some benefits are compulsory by law, these include
○ Four weeks leave with full pla after working one year in the same job
○ Fringe benefits → eg. company car
○ Flexible and family-friendly work arrangements → recognises importance
of work-life balance → career break schemes, job sharing, work from
home, family leave etc
○ Paid training opportunities
○ Travel allowance
○ Health insurance
● Divided intro monetary reward (salary) and non-monetary reward (flexible hours)

LEGAL COMPLIANCE Legal compliance and CSR = HR managers must minimise business exposure to risk by
AND CORPORATE implementing a range of proactive and preventative strategies in health and safety,
SOCIAL anti-discrimination and conflcit resolution
RESPONSIBILITY ● Problems arising over misconduct in employment relationships (particularly
sexual harassment, bullying and discrimination) can be costly and damaging to
the business
● Bullying is common in the workplace → can be decreased by ensuring
management is committed to resolve bullying and implementing appropriate
strategies to counteract it

SEPARATION
Separation​ = process of ending an employment relationship and terminating the employment contract
● HR must conduct the separation process fairly with appropriate transparency to reduce disruption to
business and personal conflict that can damage morale, productivity and business reputation

VOLUNTARY SEPARATION
Voluntary ​= employee decides to leave the business
● Resignation​ = must provide notice (4 weeks) of resignation → can be due to lack of motivation,
desire to work elsewhere, illness, leaves job for career change or better pay rates
● Voluntary redundancy ​= nominate own job as no longer needed → can be due to merger,
rationalisation financial difficulty, restructuring or technology → often those close to recruitment
● Retirement​ = older workers are generally more efficient and skilled, thus HR try to retain them

INVOLUNTARY SEPARATION
Involuntary​ = employer forces the employee to leave the business
● Procedures must be fair and correct, incompliance with awards, agreements and unfair dismissal
Laws (also to avoid claims of dicsriminationa and adverse effects in the morale and productivity of
remaining staff) → business should consult staff prior to termination and provide written statement
confirming termination, date and evidence

DISMISSAL ● Instant​ = immediately terminate for gross negligence, stealing,

absenteeism, misconduct
● Dismissal after warnings​ = continuous lateness, disrespect, failing to
perform → unfair dismissal laws for unreasonable cases (can appeal to

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 industry tribunal)
● Redundancy​ = employees job no longer needed (genuine), no appropriate
work available elsewhere within organisation → money given according to
how much time the employee was in the business

UNFAIR DISMISSAL ● Unfair dismissal​ = employee dismissed and believe action is harsh,
unreasonable or unjust
● Employee must appeal to Fair Work Australia → claim can be resolved
through conferences or formal hearing

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 STRATEGIES IN HUMAN RESOURCE MANAGEMENT

LEADERSHIP STYLE
● Refers to the way managers communicate with employees to inspire and motivate to achieve goals.
Managers may use a range of leadership styles depending upon the circumstance, situation or
group of employees they are managing at the time
● Adopted by management and will depend on the managers personality and the nature/type of
business in order to effectively coordinate and motivate workers to fulfill set objectives

AUTHORITARIAN/AUTOCRATIC ● Managers make decisions quickly without input from staff

(DIRECTIVE ● Works well with unskilled and/or inexperienced workers where work is
highly organised and controlled → managers have total control over
decision making
● Adv = decisions are made quickly, information passes down the chain
of command (efficient and specific), decision made using expertise of
manager, motivates less skilled workers through clear instruction
● Dis = lowers employee morale and productivity (skilled/experienced
workers resent top-down control and inability to show strengths), risky
if manager is not good/experienced

PARTICIPATIVE/DEMOCRATIC ● More consultative approach between managers and workers

● Collaborative decision making through employee involvement = ↑
employee engagement
● Adv = motivates and empowers skilled/experienced workers as they
are given some responsibility, power and ability, power and ability to
demonstrate skills, boosts employee morale, employees
ideas/perspectives may improve decision making
● Dis = not useful if employees are mainly unskilled or inexperienced,
decision making can be time-consuming and excessive consultation
can slow down decision making process, no one may take
responsibility for poor decisions, increased competitiveness amongst
workers

BUREAUCRATIC ● Little decision making given to anyone, leader must follow

policy/procedures/manuals

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 ● Adv = leader identifies correct instruction and communicates them to
workers, may be necessary for some industries in which risky tasks
are commonly carried out
● Dis = workers lack input so many be unmotivated, no real potential to
develop decision-making skills, creativity or experience as policies are
already in place

LAISSEZ-FAIRE (DELEGATIVE) ● Ideas, decision making and control given mostly to employees
○ little/no input from management
● Adv = leader outlines goals and basic parameters of what is allowed
and what is expected and then work groups make decisions,
recognises employees as highly capable, motivating for committed
workers by empowering them with responsibility and a change to
improve skills
● Dis = may lead to poor outcomes if workers are untrustworthy or
unreliable or untalented, poor decisions may be made due to lack of
guidance from management or conflicts of interest, time consuming
decision making process, inefficiency in time of crisis

JOB DESIGN - GENERAL OR SPECIFIC TASKS

Job design ​= process of designing and redesigning various work activities to form a job allocated to a
worker
● Based on the nature and capabilities of the worker and the work activities required → the number,
kinda and variety of tasks that the worker is expected to carry out in performing their job
● Effective job design:
○ Enables job satisfaction → reduced repetitive and boring tasks → increases productivity and
efficiency
○ Meets the needs of the business and employees in terms of efficiency, output quality and
workplace culture
○ Devops tasks with abilities of existing staff in mind
○ Challenged employees through decision making in responsibility
○ Involves job rotation
○ Cuts costs which helps the competitiveness of a business

TWO CONCEPTS WITHIN JOB DESIGN:

● Job satisfaction​ = extent to which employees are satisfied working in their current position within
the business
● Job enrichment​ = seeks to make use of employees talents and abilities within the workplace

GENERAL OR SPECIFIC TASKS

GENERAL TASKS ● Giving workers a wider range of tasks (job enlargement) so they can apply a broader
range of skills in various situations
● Prevents boredom, avoids health and safety issues and grants employees a greater
sense of accomplishment = increased engagement and job satisfaction, therefore
increased productivity

SPECIFIC TASKS ● Giving workers the same kind of work, but recognise their skills, talent and importance
by granting them more responsibility and authority (job enrichment)
● Increased motivation, specialisation and efficiency → however can be routine and

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 boring
● Efficiency process that often uses low-skilled, cheap labour
● Best represented through Scientific management approach (Fredrick Taylor)

RECRUITMENT - INTERNAL OR EXTERNAL, GENERAL OR SPECIFIC SKILLS

● Locating and attracting the right quantity and quality of applicants at the right cost (decrease costs
and increase productivity)
○ Sources and methods used depends on recruitment goals and type of business
○ Recruitment matches a business’ human resource needs with appropriate staff

INTERNAL OR EXTERNAL
Internal recruitment​ = hiring staff within the business ⇒ promoting or changing the role of existing staff
● Advertised using staff notices, staff meetings, emails, business newsletters etc.

External recruitment​ = hiring from outside the business

● Advertised using newspapers, job search sites, in-store advertisements, recruitment agencies,
online publications, word of mouth, social media
●
INTERNAL EXTERNAL

ADVANTAGES ● Motivates staff (promotion ● More choice

opportunities) ● New experience and
● Loyalty and long service is skills can be brought in
rewarded from other businesses
● Current workers know the ● No need o train (if already
business’ systems (can have necessary skills)
adapt to new positions ● Less chance of internal
quickly) conflict (competition for
● Workers strengths and the job,; resentment for
weakness are known to the person who gets it)
management (less risky)

DISADVANTAGES ● May lead to negative ● Risky (can’t be certain of

competition weaknesses)
● Any internal applicants ● First weeks are less
who don’t get the job may productive (settling in;
leave or become ‘learning the ropes’)
unmotivated ● Current staff are less
● No new experience or motivated (they feel
skills are brought into the overlooked)
business

GENERAL OR SPECIFIC SKILLS

General skills​ = includes flexibility, versatility, social confidence, positive attitude, motivation, ability to work
under pressure etc. → soft skills, often crucial in building successful workforce
● Transferable from one job to another
● Important as many jobs require individuals to work independently and undertake different tasks
● HRM values these skills as they indicate that employee has capacity/willingness to learn

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 Specific skills ​= specialist training, usually leading to a qualification
● Acquired through school, TAFE, university or other educational provider
● Businesses are recruiting overseas, outsourcing or poaching staff to overcome skill gaps/shortages
in Australia

TRAINING AND DEVELOPMENT - CURRENT OR FUTURE SKILLS

Training ​= aims to educate employees and develop their current skills, knowledge and attitude for their
current job, leading to superior work performance
● Formal training = employee takes on student like role and is shown how to apply themselves to new
business operations, then later assessed on their level of understanding
● Informal training = employee is shown/modelled the correct skills using a coach/mentor or learning
on the job

Development ​= improving the future skills, abilities and knowledge of employees to maintain a competitive
advantage so they can better perform their future role in the business to meet its changing needs
● Encourages employees to take advantage of opportunities to develop experience that will benefit
business
● Development encourages employees to use their full potential → leads to business growth

CURRENT OR FUTURE SKILLS

Current skills (training) ​= training to perform your current job after
CURRENT

ADVANTAGES DISADVANTAGES

● Business gets immediate benefits ● May be boring if workers already have those skills
● Workers keep up with new developments ● May not be worth the disruption
● Increased current productivity ● Workers may not see the value for their career
● Workers more likely to pay attention (relates to (doesn’t prepare them for the future)
current job, not hypothetical future citations)

Future skills (development​) = future skills for business growth → skills that can be used later in the
workers career
FUTURE

ADVANTAGES DISADVANTAGES

● Allowed for easier international promotion ● Risky (business might not get any benefit at all)
● Employees feel motivated by being trained for ● Worker may leave and take skills to competing
possible promotion business
● Workers can cover absences ● Workers may feel disconnected (“what does this
have to do with me?”)

PERFORMANCE MANAGEMENT - DEVELOPMENTAL OR ADMINISTRATIVE

DEVELOPMENT PM ● Developmental PM​ = on-the-spot coaching and interaction to help employee achieve
goals, quality improvements
○ Developmental model = focused on using data to develop individual skills and
abilities to improve employee effectiveness in their roles, overcome
weaknesses and are prepared for promotion → typically encompasses

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 learning new skills on the job, mentoring, new responsibilities, stretching of
targets and formal courses
○ Best achieved through year-round periodic feedback and shared discussion
(both empathetic and goal focused)

BENEFITS
● Can plan to overcome gaps/weaknesses in performance
● Shows effectiveness of current selection processes and staff match to culture and
skills
● Helps identify, motivate and retain talented staff for leadership succession
● Communicates expectations, helps build trust, promotes LT organisational
development

ADMINISTRATIVE ● Administrative PM​ = assessed business progress in meeting its strategic goals to
PM identify areas for improvement → quantitative measures such as output and sales
● Giving workers the same kind of work, but recognise their skills, talent and importance
by granting them more responsibility and authority (job enrichment)
● Increased motivation, specialisation and efficiency → however can be routine and
boring
● Efficiency process that often uses low-skilled, cheap labour
● Best represented through Scientific management approach (Fredrick Taylor)

BENEFITS
● Higher productivity → better financial performance
● Helps assess rewards and benefits linked to performance and identifies strengths and
weaknesses → can be used to implement appropriate strategies to fix/improve them
● Builds self-efficacy (effectiveness, success, productiveness, benefit) as efforts of
employees are recognised → important in motivation and retention

REWARDS - MONETARY AND NON-MONETARY, INDIVIDUAL OR GROUP, PERFORMANCE

PAY
● Key strategy in attracting, motivating and retaining employees - can reinforce strategies to facilitate
change/support desirable corporate values (eg. focus on customer)
● Reward policies assist to reinforce culture, values and achieve strategic objectives - increase
efficiency
● Benefits are given to all employees, while rewards grant some employees above award offers
● Business must consider → business goals, economic conditions, rewards & benefits of competitors,
and relevant awards & agreements
● Aim to motivate staff & be equitable, clearly communicated, cost effective & integrated with
corporate strategy

MONETARY AND NON-MONETARY REWARDS

Monetary rewards ​= financial incentives beyond employee’s minimum legal entitlements
Non-monetary ​= those that do not have financial value
Remuneration​ = financial (pay) and non-financial benefits that employees receive in return for their work
effort → seeks to encourage employees → remuneration system assists to sustain business competitive
advantage

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INDIVIDUAL OR GROUP
Individual reward​ = received based on individual performance
● Individual rewards are motivating → however can create conflict/rivalry and issues arise as it is hard
to distinguish individual contribution, especially with teamwork

Group reward​ = team of employees sharing rewards for the performance of tasks
● Group rewards develop good workplace relationships by minimising conflict/rivalry and encouraging
cooperation → however are less motivating as they can result in ‘free-riders’ who contribute little to
the overall performance and receive the reward regardless (eg. profit sharing, payment by result,
bonus)
● Difficult to distinguish the performance of individuals within teams

PERFORMANCE PAY
Performance pay ​= employees are rewarded (in addition to normal base pay) individually or as a group
based on performance, rather than the number of work hours
● Performance pay system involves reaching targets and demonstrating improved performance to
receive pay increase
● Adv = financial rewards are often key motivators (especially for inefficiency staff), good employees
are attracted to business → performance pay regarded as a measure of successful work attributes
● Dis = some employees may only seek non-financial rewards, performance may be difficult to
measure for some jobs

GLOBAL - (COSTS, SKILLS, SUPPLY)

● Globalisation is the removal of trade barriers between nations, which opens opportunity to trade,
access to cheaper labour/resources, and access to new markets
● Brings about issues related to managing HR eg. accessing lower labour costs while complying with
overseas regulations and pay rates
● Increased trend of outsourcing in 2019

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APPROACHES TO OVERSEAS STAFFING
● Ethnocentric​ = hiring management that is the same nationality as the parent company → enales
company policies to be transferred and implemented more effectively
● Polycentric​ = recruitment of personnel from the host country → have better knowledge of local
culture
● Geocentric​ = hiring the best person for the job, regardless of their nationality

COSTS ● Labour costs vary between countries, depending on their workforce size, skill level
and demand for workers within particular industries or the nation as a whole
● Hiring overseas = less regulations regarding cheap labour and environmental
responsibility

SKILLS ● Must hire employees overseas where standard of learning and education are same or
better
● India has become a preferred source of global labour because of good literacy levels
in English (can speak multiple languages too) and in technical skills → able to reach
larger markets

SUPPLY ● Supply of labour depends on the current world population and demographic (eg. age,
gender)
● Labour force supply is declining in advanced areas of he world and increasing in
areas such as Africa and Asia, as they are developing necessary skills and offering
them at a cheaper rate

WORKPLACE DISPUTES - RESOLUTION (NEGOTIATION, MEDIATION, GRIEVANCE

PROCEDURES, INVOLVEMENT OF COURTS AND TRIBUNALS)
● Caused by wage demands, working conditions, management policy, political goals and social issues
→ arise from conflicting interests of stakeholders (this is inevitable)
● Workplace conflict = increased levels of absenteeism, decreased productivity
● Strikes, lockouts, pickets

TYPES OF WORKPLACE DISPUTATION

● Overt (obvious) = strikes, workbans, lockouts
● Covert (hidden) = sabotage, absenteeism, staff turnover
Al these strategies to stop dispues highly disrupt productivity and are unhealthy to business performance

RESOLUTION
● Resolution of disputes should be swift for the benefit of all parties
● Preferred method of resolving disputes has moved to an approach focuses at the
employer-employee evel
● Four methods that can be used to resolve disputes include negotiation, mediation, grievance
procedures and involvement of courts and tribunals

STRATEGIES FOR CONFLICT/DISPUTE RESOLUTION

NEGOTIATION ● Discussion between both parties in an attempt to compromise and reach a

formal or informal agreement (collective bargaining)
● Good method for parties voicing their concerns, allowing the other parties
to learn and prevent similar situations from arising
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 ● Involves:
● Identifying the issues causing the disagreement/dissatisfaction
● Developing and understanding of the reasons behind certain actions
● Discussing strategies to resolve the problem and improve the working
relationship

MEDIATION ● Confidential discussion of issues in a non-threatening environment in the

presence of a neutral third party
● Neutral third party appointed in finding a way to reach agreement
● Third party is mutually acceptable to both parties in finding or a
representative from a business, tribunal or government agency (eg. Fair
Work Australia)
● Decreases risk of disputes escalating and leading to expensive legal
costs/industrial action → often first step of dispute resolution

GRIEVANCE PROCEDURES ● Complaint made by an individual or group regarding a specific aspect of

their employment conditions or policy, and the practices of their employer
● Grievance procedures ​= formal procedures generally written into an
award or agreement that state an agreed process to resolve workplace
disputes
● Without a clear process, a grievance can lead to a serious dispute
● Useful in decreasing risk of issue rapidly becoming serious debate
● Effective procedures require a full description of the complain and the
person whom the grievance is made against a full description of the
complaint and the person whom the grievance is made against should be
given details and the opportunity to provide their POV
● Steps of a grievance procedure include:
○ Informal negotiation between both parties
○ Matter referred to external conciliation or arbitration by parties
involved
○ Complaint handled by middle management by meeting with
employee/representative

INVOLVEMENT OF COURTS ● Used when no agreement is made during negotiation period

AND TRIBUNALS ● Three approaches include conciliation, arbitration and common law action

CONCILIATION ● Third party or Fair Work Australia representative

assists in seeking a mutually agreeable solution
● Both parties obliged to attend meetings when
requested by FWA
● Agreement conditions are not legally binding

ARBITRATION ● FQA appoints arbitrator who will consider

arguments from both sides and make legally
binding decision based on the evidence
presented to a formal, court-like setting

COMMON LAW ● Courts become involved when a dispute goes

ACTION beyond industrial relations → property damage,
assault on employer/employee, breach on
contract
● Common law is unavailable if action is protected
during bargaining period

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 ● Very costly method → seen as a last resort

27
 EFFECTIVENESS IN HUMAN RESOURCE MANAGEMENT

INDICATORS
Indicators​ = performance measures that are used to evaluate organisational/individual effectiveness

To evaluate HRM strategies, a range of measures need to be analysed:

CORPORATE ● Culture within a business
CULTURE ● Relates to values/beliefs within a business
● Develops over time
● Difficult to measure in quantity terms
● Effective corporate culture is one that is believed/acted upon by management and
employees
● Creating a workplace culture
○ High quality personal relationships
○ Creative perks, especially health and training
○ Flexible and family friendly practices
○ Culture of trust → transparency, impartiality (fairness) and equality
○ Collaboration across all levels and involvement in decision making
○ Fun atmosphere

BENCHMARKING ● Process of measuring employees performance against established standards eg.

KEY VARIABLES output per worker, level of faults breakdowns, level of customer satisfaction
● Businesses having motivated, rewarded and committed workforce = productive
workplace while producing quality products about benchmark
● Established standards, businesses are able to measure success of delivery of HR
function = set goals lifting business’ performance, motivate staff

CHANGES IN ● Rate at which employees leaves a business

STAFF TURNOVER ● High level of staff turnover caused by voluntary separation is indicative of poor
employment relations within a business
● Costs due to this include time and money spend on recruitment, periods of low
productivity from new employees
● Important for businesses to benchmark their turnover against other businesses in
the same industry and to determine the type of staff leaving and their reasons →
can be ‘pull’ factors outside business or ‘push’ factors inside the business

ABSENTEEISM ● Employees being unable to attend work due to illness, daily responsibility
● This is costly - employees work isn't done - lower productivity, cost in replacing
absent worker
● Covert form of industrial action - seen in 2007 as large number of business drivers
called in sick on same day
● Managers must assess if level of absenteeism is valid and the cause eg. stress,
poor health, job dissatisfaction

ACCIDENTS ● Businesses need to develop accident/safety improvement plan

● Need to review data on accidents and safety
● All workplaces across Australia need to be aware of potential hazards
● Businesses need to adopt a systematic, legally compliant approach to managing
WH&S
● Low levels of accidents indicate effective training and development

LEVELS OF ● Monitoring the frequency and severity of industrial disputes will give indications of

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DISPUTATION the effectiveness of grievance procedures and dispute resolution processes
● More disputes = less effective management is in managing employment relations
functions
● Employers need to examine why disputes ar occurring
● Can be caused by legal issues regarding benefits and pay, as well as conflicting
interests of stakeholders
● Determined by the duration of a work ban, the rate at which employees work, and
the amount of sabotage/damage an employee does towards business

WORKER ● Where employees are happy and fulfilling their desires and needs at work
SATISFACTION ● Satisfied employees = work efficiently and value the organisation they work for
● Can be assessed through surveys, suggestion boxes, discussion etc.
● Satisfied employees are more productive, innovative, loyal and have low
absenteeism
● Worker satisfaction arises from recognition, challenging work, safe working
environment, appropriate rewards and employee participation

29