MGN506 Contemporary HRM Issues

WORKSHOP

8/17/12

Chow Alex n8437017 Ha Tran n8366616 Lara Nguyen n7314914

Hook

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1.What 2.What

Workshop Timelines
causes the JS? (Alex)

is Job Security (JS)? (Alex) 1 (Ha): fill in the sentence

3.Activity

If I am going to be fired tomorrow, I.

4.The

consequences of JS (Lara) 2 (Lara): Qantas case

5.Activity

video clip
a. b.

1. Employees
8/17/12 2. Strategies

The figure shows that the number of casuals is increasing of overtime in 8/17/12 (ABS, 2011) Australia

1. Job Security What is it ?

Job (in)security is defined as one's expectations about continuity in a job situation. This definition goes beyond concern over continuation of employment with an employer. It includes concern over loss of desirable job features such as lack of promotion opportunities, current working 8/17/12

Job Security (JS)

Job Security = Employee's Expectations about continuity in a job situation

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(Davy, Kinicki, & Scheck, 1997)

What causes the job security?

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Job securit y
Internal Factors
1.

External Factors
1.

2. 3.

Work Condition Career Promotion

Globalisation
(offshore & outsource)

2. 3. 4.

Economy (GFC) Technology Legal

(Samson and Daft, 2009)

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How do they influence Job Security ?

Career

Promotion

Work

Condition 8/17/12

Maslows Hierarchy Needs theory

Self Actualization Level (respect, Self-Esteem Level achievement,
confidence) (creativity, learning, problem-solving)

Love Belonging Level (love, friend) Safety Needs Level (house, shelter) Physiological Needs Level (food, water, air)8/17/12

Gambrel and Cianci (2003)

Herzberg Two factors Theory

Motivators
1. 2. 3. 4.

5.

Achievement Recognition Responsibility of job Advancement to higher level tasks Personal growth Hygiene Factors
1. 2. 3. 4. 5.

Working conditions Salary Security Policy 8/17/12 Administration

(Sachau, 2007)

Globalization

Cause by rapid development of internet and transportation

Communication Synchronizing

become faster

the worlds economic, social,

political relationship
People

share the same value in cultural,

ideological, technical areas

Strengthen

the co-operation of countries 8/17/12

(Choo, Halim and Keng-Howe, 2010) (Ukpere & Slabbert, 2009)

Globalization (cont)
Outsource:

obtain the cheapest sources of labour and supplies which also help firm focus on it own core business cleaning, security) same as outsourcing but different location call center, I.T.) labour form: part-Time, 8/17/12 (Chen, 2009) Casual, Self-employed

(e.g.

Offshore: (e.g.

Other

Economy - Global Financial Crisis (GFC)

Facts:

GFC

is the worst financial meltdown since the great depression. of large financial institution

Bankruptcy Bail

out of nations, government

Downturn of stock :and Cause (trigger) by

housing Liquidity problem of US banks such as markets montage Decline of economic activities Housing bubble in US 8/17/12 Decrease of investors confidence

(Chea, 2012) (Ortiz, 2012)

Technology
possible clear

to obtain more significant quantity production reduction of the different types of costs related to production and distribution in the inputs of technical risks related to obtaining of production earnings performance and appropriation of the value created by innovation;
8/17/12 level of product

reduction more

higher

(Basile and Cappello, 201

Technology (cont)
Artificial intelligence Nuclear energy Solar energy New energy Magnetic levitation
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Biometric technology

Renewable energy

Government (Legislation)
Today

Special low-paid bargaining stream Wage from unfair dismissal faith bargaining at the enterprise level workplace relations tribunal 8/17/12 Fair Work Australia.

Minimum

50 years late

Protection Good

???
(Fair Work Australia, 2009)

National

Activity 1 Warm up: 3 minutes

Alex is working part-time in a Chinese restaurant in the CBD while pursuing a Master degree of HRM in QUT. The job has enables him to pay for monthly expenses because his Mom and Dad only support him with the tuition fee. Recently he heard from the grapevine that a the boss wanted to replace him by the bosss 8/17/12 nephew who has just moved from

Activity 1 Sentence chain: 5 minutes

In turn, you are asked to finish the sentence If I were Alex, I would .
For example: If I were Alex, I would be very worried.

Your sentence must be different from those told before. If you have no idea to add, just say Pass. After 5 minutes, those left with the most 8/17/12 (and even craziest) ideas will be the

Internal Factors Job Security Externa l Factors

Negative Consequen ces

Positive Consequen ces

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4. Consequences of Job Security

Consequenc es of Job Security

Stream 1:

Stream 2:

Short term Long term

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Individual Organisation

Short term Consequences of JS

Job Security

b
Job Satisfactio n

+ a-

+ f + Withdraw al Cognition s

c
Commitme nt
Organisatio nal

8/17/12 Figure: Structural representation

Matrix of JSs Consequence

Focus on reaction Individual Organisation
Job Attitudes Organisational Sho attitudes Ty rtJob satisfaction Organisational pe ter Job involvement Commitment s m Trust of Health Work related re Lon behaviour act g- Physical health Performance ter ion m Mental health Turnover intention
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(Sverke, Hellgren, &

6. Activity 2 (Lara): Qantas case video clip

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Qantas Group

QANTAS

stand for Queensland and Northern Territory Aerial Services Limited in 1920 2 airline brand Qantas & Jetstar
(Qantas group, 35700 employees and 93 8/17/12 2012)

Founded Own

Employ

Qantas Case Study

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Qantas strike to cause flight cancellations and delay

???
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Restructuri ng

Flexible working arrangeme nts

Outsourci ng

Legislati on change new policy

Changes
Empowe rment and 8/17/12 autonom

Job enrichmen t and enlargeme nt

New technology (software, equipment )

Quanta case

Downsizing the last resort. Consideration of viable alternatives (hiring freezes, salary and benefit freezes, pay cuts, overtime restrictions, job sharing, reduced work weeks or unpaid vacations). Assistance to the terminated workforce (severance package, outplace services) The communication of the strategy, objectives, policy and procedures , benefits and impacts to all employees (forum, news bulletin, monthly meetings, counselling services...) before and during the implementation. Dealing with legal problems/ industrial relations. Training and development for retained staff. Leadership support Reward system Planning and Communication 8/17/12

Lewins 3 step change model

Unfreezing Change Freezing

Lewin (1974)

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Unfreezing
1. Determine what needs to change

Survey the organization to understand the current state Understand why change has to take place.

2. Ensure there is strong support from 8/17/12 upper management

Change

Communicate often Do so throughout the planning and implementation of the changes

1.
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Refreezing
1. Anchor the changes into the culture

Identity what supports the change Identify barriers to sustaining change.

2. Develop ways to sustain the change

Ensure leadership support 8/17/12

Motives of Management?

Total quality management Employee empowerment Programs Self-directed work team (SDWTs)
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Downsizing Reengineering Restructuring Flexible contracts Outsourcing

What do we need?
-

Employers require focused and skilled employees. Employees require the capacity to maintain their employability through opportunities.

Baker (2009)

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New psychological contract

Traditional psychological contract is based on value of Loyalty: employees would be loyal to the boss, and in turn, the boss would provide job security for the employees. New psychological contract is based on a completely different set of values. 8/17/12

The changing individual paradigm

Job security Credential/ degree Entitlement Job description and title Success equals promotion Next job focus Dependence on the 8/17/12 Employablity Continuous learning Adding value Portfolio of skill and Success driven roles by individual values and Broad career needs non-job Commitment to focus work in one field

Employability
Internal Individual skills and competences are useful in variety of positions in the organization External Skills that will make it possible for the employee to find another job outside the organization 8/17/12

What attract and retain valuable people?

q Employability q Development

of new skills

q Greater

job satisfaction

q More

autonomy to make decisions

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HR implications
Alignment

of individual career growth with Company Goals

Learning and Development / Mentoring and Coaching

Work design with Variety and Autonomy Flexible working arrangements Work-life balance incentives Information sharing
Baker (2009) SHRM (2010)

8/17/12 Psychological contract

HR responsibilities
Functional HR Core functional excellence mainstreams
-

Learning Career and talent management Performance and reward Industrial relations OHS CSR
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What we have covered

The The

causes leading Job security an issue consequences of job insecurity 3-step change model rather than Job

Lewins

Employability

security
HR
8/17/12 implications

Reference
Australian Bureau of Statistics. (2011). Forms of Employment, Australia, November 2011(no. 6359.0). Canberra, Australia Baker, T. (2009). The eight values of highly productive companies: Creating Wealth from a New Employment Relationship. Bowen Hills, Queensland: Australia Academic Press Basile, A., & Cappello, G. C. (2012). Modern agro-biotechnology, business decisions and firms competitiveness: Evaluating economic and managerial implications of the introduction of transgenic crops. International Journal of Economics and Business Modeling, 3(2), 165-171. Chea, A. C., PhD. (2012). The global financial meltdown of 2008, subsaharan africa, and the way forward for sustainable economic growth and development. International Journal of Economics and Finance, 4(1), 3-13. Chen, S. S. (2009). A transaction cost rationale for private branding and its implications for the choice of domestic vs offshore outsourcing. Journal of International Business Studies, 40(1), 156175. 8/17/12

Reference (cont)
Choo, S. S., Halim, H., & Keng-Howe, I. (2010). The impact of globalisation on strategic human resources management: The mediating role of ceo in hr. International Journal of Business Studies, 18(1), 101-124. Davy, J. A., Kinicki, A. J., & Scheck, C. L. (1997). A test of job security's direct and mediated effects on withdrawal cognitions. Journal of Organizational Behavior, 18, 323-349. Fair Work Australia (2009). Fair Work Act 2009. Retrieved May 9, 2012 from http://www.fwa.gov.au/documents/legislation/fw_act/FW_Act.htm# P103_8093 Fisher, C. D., Schoenfeldt, L. F., Shaw, J. B. (2006). Human Resource Management, (6th ed.). Boston, MA: Houghton Mifflin Company. Gambrel, P. A., & Cianci, R. (2003). Maslows hierarchy of needs: Does it apply in A collectivist culture. Journal of Applied Management and Entrepreneurship, 8(2), 143-161. 8/17/12

Reference (cont)
Gandolfi, F. (2008). HR strategies that can take the sting out of downsizing-related layoffs. Ivey Business Journal Online, Jul/Aug, 1. Greengard, S. (1993). HR's role in an effective downsizing. Personnel Journal, 72(11), 68. Lewin, K.(1947a).Frontiers in group dynamics. In Cartwright, D. (Ed.),Field Theory in Social Science. London: Social Science Paperbacks. Mabert, V. A., & Schmenner, R. W. (1997). Assessing the roller coaster of downsizing. Business Horizons, Jul/Aug, 45-53. Ortiz, G. (2012). What can the developed world learn from the Latin American debt and Mexican peso crisis? Business Economics, 47(1), 2-13. Qantas Group (2012). Our Company. Retrieved May 9, 2012 from http://www.qantas.com.au/travel/airlines/company/global/en 8/17/12

Reference (cont)
Qantas strike to cause flight cancellations and delays. (2011, September 19). BBC, p.1. Sachau, D. A. (2007). Resurrecting the motivation-hygiene theory: Herzberg and the positive psychology movement. Human Resource Development Review, 6(4), 377-393. Samson, D. & Daft, R. (2009). Fundamentals of Management (3rd ed.). South Melbourne: Cengage Learning Australia. Sverke, M., Hellgren, J., & Naswall, K. (2002). No Security: A MetaAnalysis and Review of Job Insecurity and Its Consequences. Journal of Occupational Health Psychology, 7(3), 242-264. Ukpere, W. I., & Slabbert, A. D. (2009). A relationship between current globalisation, unemployment, inequality and poverty. International Journal of Social Economics, 36(1), 37-46. Wadell, D. M., Cummings, T. G., & Worley, C. G. (2007). Organisation Development & Change, (3rd ed.). Melbourne, VIC: Cengage Learning. 8/17/12 Wilson (2010) The white paper