STAGE 2 BUSINESS AND ENTERPRISE
ISSUES STUDY
Executive Summary
This Issue Study investigated how a business attracts, trains and retains workers. It
demonstrates the importance of Human Resource Management in the workplace, and
its role in business. Information was gained through evaluating economic implications
of employment relations in one major business, current legislation and employer and
employee responsibilities.
Communication
Indicative of
coherent and
fluent
communication of
complex
information.
Research included a range of published materials and web sites. The primary source
has been interviews with Molly Jones, (see Appendix 2), a Human Resource Manager
(HRM) at Company X, and the surveying of employees at the same work site.
These materials gave insight into how directly HRM relates to the success of a
business.
Relevant Government legislation was sourced from www, as evidenced in the
bibliography. An incidental television program provided the “Employer Perspective” on
the topical issue of the “maternity leave burden”.
Human Resource Planning
HRM plays an important role in the ever-changing business environment. The four
Human Resource Cycle planning stages are shown in Figure 1.1
This image has been removed for
copyright reasons.
Dixon, T, Mann, D & O’Mahoney, J 2005, Business Studies Preliminary Course Second Edition, Reed
Inernational Books Australia, New South Wales.
1
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Communication
Demonstrates
appropriate
acknowledgement
of a range of
sources.
Acquisition - identifying of staffing needs, recruiting and then selecting the best
person. Advertising of positions can be either an internal or external process, followed
by interview and sometimes, employment tests.
Development - determining of training needs and providing the necessary training.
This can be ‘on-the-job’, or ‘off-the-job’, attending tertiary institutions, conferences or
external courses.
Maintenance - ability to identify outstanding employees, and keeping these valued
employees. Performance appraisals aid with the identifying process, whilst monetary
benefits, such as a pay rise, or non-monetary fringe benefits, helps to keep valued
employees.
Separation - employees eventually leave the business. This can be voluntary, through
retirement for example, or involuntary, redundancy, retrenchment or dismissal.
Company X has a clearly defined recruitment procedure which is standard practice for
all stores (See Figure 2), as it identifies staffing requirements and a sequential
proceses.
The development and improving of employee skills, abilities and qualifications ensure
that a business remains viable and competitive. Through training, productivity can be
improved and production quality enhanced. As well, a business can continue to adapt
to change through ongoing development of personnel.
On-the-job training gives employees hands on experience and can be relatively
inexpensive. However, productivity may suffer and mistakes can occur. Training can be
through supervisory assistance and job rotation. This type of training means that the
employee is learning to meet the needs of this particular business, but it is wasteful of
human resources.
Off-the-job training can involve a variety of external course, conferences or simulated
exercises. There is an advantage in having a large number of trainees educated at the
one time, but it does mean trainees are removed from the workplace and the course
may not be specific to that business.
External training at Company X consists of a full day relating to communication and
teamwork.
“Safety regulations are always changing”,2 so the Company X safety team conduct
regular safety training for all employees.
Research by EOC, Government of SA, shows that there is a direct correlation between
staff training and complaints received from customers. (See Appendix 3)3
2
3
www.development.tas.gov.ausbetterworkplacesinduct.train and development
www.eoc.sa.gov.au/sitge/annual_report_2008/statistics/organisation
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© SACE Board of South Australia 2010
Knowledge and
Understanding
Demonstrates
well-considered
understanding of
the relationship
between business
theory and
practice. The
student builds on
this understanding
later in the
response.
Analysis and
Evaluation
Demonstrates an
example of
perceptive
analysis of the
importance of the
link between
employees and
business success.
Analysis and
Evaluation
Points to the
demonstration of
insightful
evaluation of
implications and
consequences of
business
practices.
Knowledge and
Understanding
Provides some
evidence of indepth knowledge
and understanding
of the relationship
between business
theory and
practice.
Company X
Y
Figure 2: Company X Recruitment and Selection Process
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Retaining valued employees and maintaining motivation of high-performing employees
increases productivity,” and reduces absenteeism, disputes and staff turnover.”4 To do
this, benefits other than conventional financial packages should be provided.
Monetary rewards can be a financial bonus, profit sharing, or a salary package that
reduces income tax. These packages can include company car, medical plan, expense
accounts, telephone costs or housing assistance.
Reward can be in the form of “status”, such as a larger office, participation in decision
making, greater autonomy, all leading to maintaining interest in the job.
Performance appraisals can motive staff, as they recognize individual achievements,
and identify people who are suitable for promotion.
Company X conducts monthly and yearly performance appraisals of all employees.
(See Appendix 1)
“Paid “maternity leave” is being used as an incentive to maintain valuable employees”5.
This has been particularly important at Company X. Approximately half of their staff is
female. Company X decided to introduce six weeks paid maternity leave and a two
week bonus upon return to work.
Eventually, employees will leave the business for various reasons, either voluntarily or
involuntarily.6 (See Figure 3)
Analysis and
Evaluation
Demonstrates
examples of:
 discerning
analysis and
evaluation of
opportunities
and key issues
affecting
business and
enterprise
 insightful
evaluation of
implications and
consequences of
business
practices.
Analysis and
Evaluation
Provides an example
of insightful
evaluation of
economic and social
consequences of
business practices.
Company X give underperforming employees three verbal warnings before
their position is terminated. The HRM endeavors to prevent it from reaching this
stage, but if an employee breaks the law, their position is immediately terminated.
(See Appendix 2)
4
wwwallbusiness.com/human-resourcesfemployee-development
Transcript of ‘Companies take on maternity leave burden’ from the 7.30 Report
6 Dixon, T. Mann, D & O’Mahony, J, 2005. Business Studies Preliminary Course Second Edition, Reed
International Books Australia, New South Wales
5
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Communication
In-text referencing,
the use of
footnotes, and a
significant
bibliography
support the
consistent and
appropriate
acknowledgement
of a range of
sources.
Figure 3: Reasons for employees leaving
Government Legislation underpins the HR Cycle, in particular, acquisition and
separation. Unfair dismissal laws requirements must be adhered to, if separation is
not voluntary.
Acquisition is governed by one important Act, “Equal Opportunity Act”, 1984. This
details that discrimination is unlawful, “….. when a person is treated unfairly due to their
personal characteristics….” 7
This legislation must be in constant consideration when acquiring staff, training
and appraising them, and especially when separation occurs. An employee who
feels that they have been discriminated against can seek a legal resolution.
It is most important that HRM inform all staff of their responsibilities with relation
to Equal Opportunity. (See Figure 4)
7
Equal Opportunity Commission of South Australia 2007, Equal Opportunity Commision (SA) EO for
business, viewed 27 May
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© SACE Board of South Australia 2010
Communication
Examples of
coherent and
fluent
communication of
complex
information and
ideas about
business and
enterprise.
Steps when Considering EO
1
Have a policy which rules out discrimination and sexual harassment
2
Tell your customers and employees about it regularly
3
Have a procedure to deal with complaints
4
Handle complaints quickly, fairly and confidentially
5
Treat customers and employees fairly when dealing with them
6
Make an employee an EO contact person
7
Monitor and maintain a culture of EO
Figure 4: Seven Steps for Employers to Consider8
“The Equal Opportunity for Women in the Workplace ” Act, 1999, requires
businesses with over 200 employees to promote women on merit, inform them of
available jobs, provide them with training to compete for jobs, and “assume that
women want and can do j o b s! ” 9
Company X provides employees with both written and verbal information about
their rights. They have a clear anti-discrimination policy and process for dealing
with complaints. As Company X employs approximately 200 employees, they are
required to follow the Equal Opportunity for Women in the Workplace Act 1999.
However, a survey conducted of Company X staff indicates that Company X
needs to promote their EO Policy and review their current position of EO .
Employees believe improvement is needed. (See Figure 5)
8
9
www.eoc.sa.gov.au/site/eo_for_you/discrimination_laws
ibid
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Knowledge and
Understanding
Provides evidence
towards in-depth
understanding of the
relationship between
business theory and
practice.
Company X
Company X
Figure 5: Employee Opinions on EO
The, “Occupational Health, Safety and Welfare (SafeWork SA) Amendment” Act,
2005,10 details the responsibilities of HR Managers to ensure the safety of all
employees. Training for all members of a business, is an essential part of fulfilling this
responsibility.
Company X have a strict OHS Policy. They provide employees with extensive
safety training and constantly aim to reduce workplace accidents. Their success is
detailed in Figure 6.
Key Performance Indicators
2007
2008
ZERO
ZERO
Reduction in LTI (Lost time injuries) frequency rate
20%
23%
Reduction in new claim frequency rate
9%
9%
Reduction in customer claims
9%
9%
Reduction in hours lost for injuries in the last 12 months
10%
7%
(Health, Safety and Environment)
Employee work-related fatalities
Figure 6: Company X' Key Performance Indicators 2007–2008
10
Safework SA 2008, Occupational Health, Safety & Welfare Act & Regs viewed 29 May
www.safework.sa.gov.au/showsage
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Knowledge and
Understanding
Provides further
evidence towards
in-depth
knowledge and
understanding of
the relationship
between business
theory and
practice.
“Company X takes workplace accidents seriously and follows procedures, such as the
completion of a Workplace Incident Report, appropriate medical attention and
preventing further accidents.”11
However, results from a survey taken of Company X staff shows that they believe
Company X could improve in the area of OHS & W, especially with more training. (See
Appendix 4).
HR responsibilities include providing employees with correct wages, conditions,
and leave entitlements . These issues are all governed by the legislation,
“Australian Workplace Agreements, Enterprise Bargaining and Award Rates”.12
From the Company X Employee Survey (See Appendix 5) it is evident that they
receive minimum wages and conditions, in accordance with the “Award”. The majority
of the employees are part-time or casual. Part-time people are entitled to 4 weeks paid
annual, however, casual employees are paid at a higher hourly rate, but do not receive
the same leave entitlements. Thus, Company X always has a pool of experienced
workers to call upon. This aids in customer relations and directly impacts on the
success of the business.
HR must efficiently manage employees to ensure that maximum benefit is gained
from their skills and abilities, achievable by clearly detailing employee responsibilities.
This should be contained in a written document for each employee, “that gives
instructions on the finer points.”13
This clarity in requirements aids in appraising the performance of staff and is
especially useful if involuntary separation occurs. Company X have drawn up a clear
table for all employees to view. (See appendix 6).
Conclusion
Employees have an impact on the success of the business. They are the
“public face” for many businesses, and can be the most costly resource.
Acquisition is critical. Choosing the right staff can prevent greater expenses
in the future. I believe that Company X waste time and money in their method
of acquisition and training. The “selection process” could be outsourced. “Virtual
training” could be undertaken, rather than “in store”. They could develop a “virtual
training centre”.
Research clearly shows that adequate training of staff reduces customer complaints. I
believe that one day of “Customer Relations” training by Company X is inadequate.
This is the type of training that should be ongoing along with appraisal. Rewarding well
performing staff should be improved from “verbal praise” to some monetary reward, or
even a shopping voucher.
Offering “paid maternity leave” to a predominately female staff, will encourage
11
Woolworths Limited 2008, Woolworths Limited CPR 2008, viewed 28 May
http://crreport08.woolWorthslimited.com.au/safety
12 Dixon,T, Mann, D & O’Mahony, J 2005, Business Studies Preliminary Course Second Edition, Reed
International Books, Australia, New South Wales.
13 ibid
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© SACE Board of South Australia 2010
Analysis and
Evaluation
Perceptive and
discerning analysis
and evaluation of
some factors
involved in current
trends of business
and enterprise.
Analysis and
Evaluation
An example
indicative of
insightful and wellinformed evaluation
of economic
implications and
consequences of
business practices.
Communication
Provides an
instance of
coherent and fluent
communication of
complex ideas
about business
and enterprise.
Analysis and
Evaluation
Further evidence
towards perceptive
and discerning
analysis and
evaluation of key
issues affecting
business and
enterprise.
employee loyalty for Company X.
To avoid litigation it is essential that businesses abide by all work related Acts of
Parliament. Staff surveys suggest that Company X could improve work practices, and
knowledge about EO needs to be better publicized.
In this technological age it is easy to overlook the fact that, the management of human
resources is directly related to the success of the business.
Word Count: 1472
Additional comments
A review of the student’s work provides evidence of:
Communication

consistent and appropriate acknowledgement of a wide range of sources that provides
supporting evidence of detailed and effective research.
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Analysis and
Evaluation
Provides evidence
indicative of
insightful and wellinformed evaluation
of economic
implications and
consequences of
business practices.
Bibliography
Websites
Australian Human Resources Institute 2009, hr creating_business solutions.pdf, viewed
20 May 2009,
<http://www.ahri.com.au/MMSDocuments/profdevelopment/research/research_pap
ers/hr_creating_business_solutions.pdf>
The Government of Tasmania, Department of Economic Development and Tourism 2009,
Better Workplaces: Developing employees, viewed 21 May 2009,
<http://www.development.tas.gov.au/betterworkplaces/induct,_train and develo
p/developing_employees>
All Business.com N.D., Strengthen Your Business by Developing Your Employees I Educating
& Training > Employee Training & Assistance from AllBusiness.com, viewed 27 May 2009,
<http://www.allbusiness.com/human-resources/employee-development/1240- 1,html>
Equal Opportunity Commission of South Australia 2008, Equal Opportunity
Commission (SA) :: EO for business, viewed 27 May 2009,
<http://www.eoc.sa.gov.au/site/eo_forbusiness.isp>
Equal Opportunity Commission of South Australia 2008, Equal Opportunity Commission (SA)
:: Equal Opportunity for Women in the Workplace Act, viewed 2 June 2009,
<http://www.eoc.sa.gov.au/site/eo_for_you/discrimination_laws/australian_laws/eq
ual_opportunity for_women_in_the_workplace_act.jsp?str=women>
Equal Opportunity Commission of South Australia 2008, Equal Opportunity Commission
(SA) ::size of organisation training and complaining, viewed 3 June 2009,
<http://www.eoc.sa.gov.au/site/annual_report_2008/statistics/organisation_sizejs>
Safework SA 2008, Occupational Health, Safety & Welfare Act & Regs, viewed 26 May
2009. <http://www.safework.sa.gov.au/show_page.jsp?id=2474>
Website details for Company X provided.
Australian Government: Australian Tax Office 2008, Introduction to super, viewed 2 June
2009,
<http://www.ato.gov.au/super/content.asp?doc=/content/00098979.htm&pc=001100
2/064/001/001&mnu=38108&mfp=001/007&st=&cy=1>
Books
Dixon, T, Mann, D & O'Mahony, J 2005, Business Studies Preliminary Course Second
Edition, Reed International Books Australia, New South Wales
Interviews
Molly Jones, 25 May 2009, Company X, address provided.
Company X employees, 2009, interviewed by student, 29 June
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Television Program Transcripts
The 7.30 Report 2009, 'Companies take on maternity leave burden', 30 April 2009, transcript,
<http://elibrary.bigchalk.comtlibwebfaustralia/do/document?set=search&groupid=1
&requestid=lib_australia&resultid=1&edition=&ts=CA24298DE4F1AFCDOE9BEC8
321849519_1243992679071
&start=l&um=urn%3Abigchalk%3AUS°/03BBCLiV/03
Bdocumenr/038163473185>, accessed 2 June 2009
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List of Appendices
Appendix 1: List of Figures
Appendix 2: Human Resource Manager Interview Questions
Appendix 3: Training –v- Complaints
Appendix 4: Company X Employee Survey
Appendix 5: Company X Employee Survey – wages and conditions
Appendix 6: Employee Responsibilities - Company X.
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Appendix 1
List of Figures
Figure 1: Human Resource Cycle
Figure 2: Company X Recruitment and Selection Process.
Figure 3: Type of Separation
Figure 4: Steps when considering Equal Opportunity
Figure 5: Equal Opportunity Practices at Company X.
Figure 6: OHSW safety record
Appendix 2
Human Resources Manager Interview Questions (not provided in this resource)
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Appendix 3
Appendix 4
Employee Opinions on Occupational Health and Safety at Company X
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Appendix 5
Company X employee survey on wages and conditions (not provided in this resource)
Appendix 6
Responsibility
Examples

Follow all reasonable and lawful instructions

Abide by conditions of their employment type

Abide by OH&S policy
Duty to use care and

Completing tasks with care
skill

Consider the health, safety, and welfare of others

Keeping employer and customers information confidential

Account for money/materials used in the workplace

Behave appropriately in the workplace

Be punctual and attend required shifts
Duty to obey orders
Duty of good faith
Company X Employee Responsibilities
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PERFORMANCE STANDARDS FOR STAGE 2 BUSINESS AND ENTERPRISE
Knowledge and
Understanding
A
Comprehensive understanding
of the complex nature and role
of business and enterprise.
In-depth understanding and
coherent explanation of a
variety of business structures,
including those of small
business in a global
environment.
In-depth knowledge and
understanding of the
relationship between business
theory and practice.
B
Well-informed understanding
of the complex nature and role
of business and enterprise.
Some depth of understanding
and clear explanation of
different business structures,
including those of small
business in a global
environment.
Detailed and well-considered
knowledge and understanding
of the relationship between
business theory and practice.
C
Informed understanding of the
nature and role of business
and enterprise.
Considered understanding and
competent explanation of
different business structures,
including those of small
business in a global
environment.
Considered knowledge and
understanding of the
relationship between business
theory and practice.
D
Some awareness of the nature
and role of business and
enterprise.
Awareness and description of
a business structure, which
may be a small business in a
global environment.
Recognition and some basic
understanding of the relationship
between business theory and
practice.
E
Limited awareness of the
nature or role of business and
enterprise.
Attempted description of a
business structure.
Awareness of a relationship
between business theory and
practice.
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Analysis and Evaluation
Perceptive and discerning
analysis and evaluation of the
factors involved in current
trends, opportunities, and key
issues affecting business and
enterprise.
Insightful and well-informed
evaluation of the economic,
ethical, social, and environmental
implications and consequences
of business and enterprise
practices in different contexts.
Communication
Coherent and fluent
communication of complex
information and ideas about
business and enterprise to suit
the purpose and audience.
Comprehensive and highly
proficient use of conventions,
vocabulary, and terminology
appropriate to business and
enterprise.
Highly proficient use of technology
that meets current business
standards.
Selective and constructive application
of knowledge and understanding of
relevant business ideas, concepts,
and practices.
Proactive and focused selection and
use of relevant information from a
range of sources.
Consistent and appropriate
acknowledgement of a range of
sources.
Well-considered analysis and
evaluation of the factors involved
in current trends, opportunities,
and key issues affecting
business and enterprise.
Clear and well-structured
communication of complex
information and ideas about
business and enterprise to suit
the purpose and audience.
Thoughtful and informed
evaluation of the economic,
ethical, social, and environmental
implications and consequences
of business and enterprise
practices in different contexts.
Proficient use of conventions,
vocabulary, and terminology
appropriate to business and
enterprise.
Informed analysis and evaluation
of the factors involved in current
trends, opportunities, and key
issues affecting business and
enterprise.
Competent communication of
information and ideas about
business and enterprise to suit
the purpose and audience.
Evaluation of the economic,
ethical, social, and
environmental implications and
consequences of business and
enterprise practices in different
contexts.
Application
Proficient use of technology that
meets current business standards.
Thoughtful application of knowledge
and understanding of relevant
business ideas, concepts, and
practices.
Well-considered selection and use of
relevant information from a range of
sources.
Mostly consistent and
appropriate acknowledgement
of a range of sources.
Use of conventions,
vocabulary, and terminology
generally appropriate to
business and enterprise.
Mostly appropriate
acknowledgement of different
sources.
Basic description of one or more
factors involved in current
trends, opportunities, and/or key
issues affecting business and
enterprise.
Some endeavour to
communicate basic information
and ideas about business and
enterprise for a particular
purpose or audience.
Some consideration of the
economic, ethical, social, and
environmental implications or
consequences of business and
enterprise practices.
Inconsistent use of basic
conventions, vocabulary, and
terminology appropriate to
business and enterprise.
Recognition of one or more
factors involved in current
trends, opportunities, or key
issues affecting business and
enterprise.
Attempt to communicate one
or two ideas about business
and enterprise without
necessarily taking into account
the audience.
Limited consideration of any of
the economic, ethical, social,
and environmental implications
or consequences of business
and enterprise practices.
Limited and isolated use of
conventions, vocabulary, and
terminology appropriate to
business and enterprise.
Some acknowledgement of
sources.
Competent use of technology that
meets current business standards.
Competent application of knowledge
and understanding of relevant
business ideas, concepts, and
practices.
Considered selection and use of
relevant information from different
sources.
Basic use of technology which may
not meet current business standards.
Some endeavour to apply knowledge
and understanding of one or more
business ideas, concepts, and/or
practices, which have some
relevance.
Selection and some use of
information from more than one
source, with some relevance.
Limited skill in using technology.
Recognition of the need to apply
knowledge and understanding of
business ideas, concepts, and
practices, which may have some
relevance.
Attempted use of information from
more one or more sources, which
may have some relevance.
Limited acknowledgement of
sources.
Stage 2 Business and Enterprise annotated response for use from 2011
81917192 (October 2010)
© SACE Board of South Australia 2010