Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by...

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by Jeremy Seward and Tim DeinSlides prepared by Michelle Travers

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CHAPTER 2Administering HR

policies and procedures


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Learning Outcomes

Document, distribute and maintain organisational human resource policies and procedures.

Ensure that organisational human resource policies and procedures are clearly communicated.

(cont.)


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Learning Outcomes (cont.)

Document and communicate contingency plans to relevant groups and individuals to enable them to cope with extreme situations.

Identify and analyse employee turnover problems and present suggestions to management for consideration.

Determine the relevance of legislation to HR activities.


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Learning Outcomes (cont.)

Undertake research on legislative compliance. Prepare simple reports and maintain records in

accordance with organisational requirements. Coordinate workers’ compensation and

rehabilitation claims. Advise applicants and service providers about

the progress of claims. Coordinate reports from service providers.


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Policies and Procedures

Policies and procedures are developed to reflect the strategic direction of the organisation and are designed to benefit all stakeholders, including owners, managers and employees.

Policies and procedures provide direction on the process of how the employees are managed and how to determine their entitlements.


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Stakeholders

Stakeholders may be described as a group of people who have a major interest or claim on the operations of an organisation.


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Organisational HR Policies and Procedures

A policy may be defined as guidelines on how particular aspects of the employment relationship should be addressed.


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Examples of HR Policies

Typical examples of Human Resource Policiesinclude the following areas: recruitment, selection and probation induction and orientation employee assistance programs occupational health and safety career development/training performance management


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Human Resource Procedures

A human resource procedure is a document detailing how the organisational HR policy will be implemented.

A procedure describes the activities, responsibilities and tasks involved in specific detail.


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Drafting Policies and Procedures

Owners and managers of organisations can develop HR policies and practices to cover any aspect of the employment relationship, and they have a right to devise policies and practices to fit their organisation’s strategic needs and goals.


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The Importance of Legal Precedent

Policies and procedures will be worthless if they do not meet legislative compliance or are in conflict with legal precedent.

Legal precedent is a legal decision on a case that serves as a rule in similar cases in future.


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Stages in the Development of HR Policies and Procedures


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Equal Employment Opportunity

Equal employment opportunity (EEO) refers to attempts to ensure that all individuals have an equal chance for employment or promotion, regardless of characteristics such as ethnic or national origin, religion, age or sex. EEO policies must comply with legislative requirements.


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HR in a Changing World

Organisations need to react and cope with a range

of fluctuating factors including: economic recession or expansion new legislation, competitors or technology increased costs, disrupted supplies, war or terrorism changing employee attitudes and expectations changing community standards


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HR Policy and Contingency Planning

Contingency planning requires the development of HR plans to deal with unusual operating situations.


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Contingency Planning

Contingency planning can be developed to deal

with: severe employee shortages due to illness operational issues in times of takeover OHS issues relating to terrorism or sabotage natural disasters high levels of resignations


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Labour Turnover

Labour turnover is the measurement of the number of employees terminating their employment divided by the number of employees in the organisation, usually over a one-year period.

High labour turnover can be costly to an organisation, as it can reduce profitability and predictability of organisational performance.


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Reasons for Termination

Essentially people leave an organisation for one of

three reasons: employer initiated termination: dismissal or

retrenchment unavoidable reasons: retirement age

being reached, illness, death, family relocation or family problems

avoidable reasons: these are mostly employee initiated and involve resignation and early retirement


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Costs of High Labour Turnover

Unnecessarily high labour turnover can render an otherwise competitive business uncompetitive due to the costs associated with uncontrolled employee resignation or termination.


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Costs of Employee Turnover

Costs can be divided into two categories:

direct costs

indirect costs


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Direct Costs of Employee Turnover

Recruitment, selection and advertising Processing termination pay Overtime to assist work overload Initial induction training of new recruits Training Time taken for new recruits to become

productive


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Indirect Costs of Employee Turnover

Under-utilisation of equipment Loss of sales Lower service Lower quality Customer dissatisfaction Late deliveries Supervision time involved in training Low morale


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Finding the Causes of High Turnover

Ways that the causes of high turnover can be investigated include: examination of statistical data exit interviews containing structured and

unstructured responses determining the category of termination—

whether voluntary or involuntary employee attitude surveys consultation


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Reducing High Labour Turnover

High labour turnover can be reduced by anumber of initiatives. These include: improving remuneration packages improving incentives and rewards greater flexibility in working hours changing organisational culture developing a safe, healthy work

environment fostering ethical and honest work practices


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Legislative Compliance in HR

HR practitioners need to have a working knowledge of the major issues affecting the employment relationship, to assist the organisation in maintaining legislative compliance.


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Federal Legislation

Examples of federal legislation that organisations

may be required to comply with include: Equal Opportunity for Women in the Workplace

Act 1987 Disability Discrimination Act 1992 Workplace Relations Act 1996 Privacy Act 1988 Racial Discrimination Act 1975 Human Rights and Equal Opportunity

Commission Act 1986


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State Legislation

Examples of state legislation that organisations

may need to comply with include the following: Annual Holidays/Leave Acts (ACT, NSW, NT,

Qld) Employment Protection Act 1992 (NSW) Industrial Relations Acts (NSW, Qld, Tas., WA) Industrial and Employee Relations Act 1994

(SA)

(cont.)


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State Legislation (cont.)

Defamation Act (most states) Anti Discrimination Acts (ACT, NSW, Qld,

Tas., NT) Equal Opportunity Acts (Vic., WA, SA) Occupational Health and Safety Acts (NSW,

ACT, SA, Tas., Vic., WA) Workplace Health and Safety Acts (Qld, Tas.)


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Workers’ Compensation

Workers’ Compensation has been defined by WorkCover (NSW) as follows:

‘Workers’ compensation provides injured workers with weekly payments to cover loss of earning capacity, payment of medical expenses and vocational rehabilitation expenses, where necessary, to assist them to return to work.’

WorkCover NSW website, http://www.workcover.nsw.gov.au


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Injury Management

Injury management involves administering and enforcing compliance with the relevant legislation and managing the workers’ compensation system.


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Workers’ compensation legislation

Most workers’ compensation legislation in Australia

covers the following general areas: compulsory insurance employer liability incapacity for work entitlements payments promotion of safety and accident research dispute resolution bodies


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Employer Responsibilities in Relation to Workers’ Compensation

The role of the employer is to coordinate and manage workers’ compensation claims and workplace injuries through effective management of the claim process, including management of the injury and the injured worker.


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Employer Responsibilities

Within most states in Australia, an employer must: Notify the workers’ compensation insurer within

48 hours of becoming aware that a worker has suffered a significant injury.

Notify the workers’ compensation insurer within seven days of becoming aware that a worker has suffered a minor injury.

Provide details of workers’ compensation insurer to the injured employee.

(cont.)


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Employer Responsibilities (cont.)

Participate and cooperate in the establishment of an injury management plan.

Appoint an accredited rehabilitation provider if required.

Notify the workers’ compensation insurer immediately if suitable employment cannot be found.

Send all claim documents to the insurance company.


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Employee Responsibilities

Injured workers also have a number of

responsibilities including: Notifying the employer as soon as practical,

that they have sustained an injury or disease. Visit their doctor and obtain treatment and an

approved medical certificate. Comply with the injury management plan

arranged by insurance company.

(cont.)


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Employee Responsibilities (cont.)

Authorise treating doctor to provide relevant information to the insurance company.

Make all reasonable efforts to return to work with their pre-injury employer as soon as possible.


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Processing Workers’ Compensation Claims

Employers are required to have integrated information systems to manage the workers’ compensation process. These systems include: register of injuries and accidents reporting of workers’ compensation claims procedures for checking claim paperwork


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Rehabilitation

Rehabilitation involves undertaking reasonable actions to enable an injured employee to return to work.

Rehabilitation can take two forms: physical or medical, where the worker is

brought back to optimum physical capacity vocational, where the worker is enabled to

return to some form of suitable employment


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Chapter 2 Summary

Owners and managers of businesses have a right to develop policies and procedures to meet the needs of their business, provided that these documents meet legislative requirements.

Human resource policies and procedures need to be integrated with the organisation’s strategic plan.

Contingency plans are documented and communicated to relevant groups and individuals to enable them to cope with extreme situations.

(cont.)


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Chapter 2 Summary (cont.)

Employee turnover problems require analysis, as they may indicate organisational problems.

Costs of employee turnover may be indirect or direct.

An organisation must cover all employees with a workers’ compensation scheme appropriate to the state or territory that it operates in.

(cont.)


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Chapter 2 Summary (cont.)

Injured workers are required to notify their employer that they have sustained a workplace injury.

It is imperative that workers’ compensation and rehabilitation claims be accurately coordinated to meet appropriate state legislation.

The human resources administrator must advise applicants and service providers about the progress of workers’ compensation claims, and coordinate reports from service providers.

(cont.)

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Australian Human Resources Management by...

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