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BUHRM5912 Human Resource Management
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BUHRM5912 Human Resource Management
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Course Code: BUHRM5912
University: Federation University
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Country: Australia
Question:
Write an individual report on any of the following scenario.
Scenario 1
In Australia, ‘on 1 July, 2017, certain penalty rates in the Restaurant, Hospitality, Pharmacy, Fast Food and Retail awards [sic] have changed. The changes affect penalty rates for some permanent and casual employees working on Sunday, public holidays, evenings or after midnight in these awards (Fair Work Ombudsman, Australian Government, 2017, p.1). Given this backdrop, examine how this change in the legal environment
al factor has impacted the HR planning, job design and quality of work practices in your organisation or an industry you are working for or familiar with. As an HR practitioner, suggest a set of justified recommendations for your representative industry body to advance their negotiations with the concerned parties.
Source: https://www.fairwork.gov.au/pay/penalty-rates-and-allowances/penalty-rates-changes-2017
Scenario 2
Today success of HR practitioners largely depends upon how agile they are in responding to the constant challenges happening in the internal and external environment. Given this backdrop, identify one either internal or external environmental factor from the Environmental Influences Model (see figure 2.16 of the textbook) and examine how a recent or proposed change in your chosen environmental factor can impact or has impacted the HR planning, job design and quality of work practices in your organisation or an industry you are working/familiar with. As an HR practitioner, suggest a set of justified recommendations for your top management on how to respond to the changing environmental influences impacting the given HR practices.
Answer:
Introduction
The report discusses the analysis of the environmental factors in the organisation BHP Billiton, and the impact of the environmental factors on the business HR practices, and job design policies. In today’s scenario the success of an organisation largely depends upon their human resource, and the effectiveness of the work practices in the organisation. For the assessment of the factors, a study is conducted by taking an Australian based company, ‘BHP Billiton Ltd.’ Founded in 1885; it is the trading entity of the BHP Billiton Ltd, or BHP Billiton Plc. The multinational deals in mining, petroleum sector and considered as one of the world’s largest mining company (Bell, 2017).
The headquarters of the BHP and the global headquarters of the combined group are located in the Melbourne, Australia. The company has the mining operations in Australia, North America, and South America and their petroleum operations in the Australia. The report further brings about the description of the functioning of the organisation and the role of various environmental factors (Wagner & Raymond, 2015). Also, it states about the impact or the significance of the factors to the organisation’s working. BHP is a well-known organisation with the large scale operations; therefore the impact of the factors will be to a great extent. As employees or the human resource is the most valuable asset of an organisation, hence there should be an effective evaluation of the factors which result in improved organisational performance (Westerman & Bonnet, 2015).
Technological Environmental Factor
In an order to become competitively successful, an organisation must consider the relevance of the environmental factors operating in the business environment. These factors are categorised into external and internal taken from the Pestle framework which affect the working of an organisation. For the purpose, external environment has been taken, in which technological factors are considered with the company. External factors are those which are outside the control of an business organisation, and which influences the organisation’s strategy to achieve goals and objectives. There are various external factors operating in this concern, these include political, social, legal, technological, and the economical. Amongst all the factors, technological factors are considered here with the context of the chosen company. Technological factors simply define the application of knowledge to control the environment, and to improve products or processes, or to launch new products in the market (Subramanian, 2017).
Technological factors affect the business and they are an integral part of the pestle analysis. Technology transforms the operations and impacts positively as the advancements in technology enhance the communication process in an organisation. There is a major contribution of the internet and the strong communication media to improve the operations and communication system. Moreover, technological advancements help in building good and sound business relationship with their investors, other organisations, and their business partners. This facilitates in making the negotiations and conducting discussion with ease. They need not to be present physically every time (Wheelen, Hunger, Hoffman & Bamford, 2017).
Hydraulic mining and X-ray diffraction
The technology used in the mining corporations include the Hydraulic mining which is used for the placer deposit of the gold, tin and several other metals. Amongst all the technologies and systems used by mining companies there is great significance of the Automation. Autonomous trucks are more frequently used by such businesses. Also, underground excavators are used by mining companies as safety is one of the major concerns therefore; underground mobile miners are used especially for hard rock mines (El Bizri, Macedo, Paglia & Morcatty, 2016). The business at mining industry is not considered as environment friendly, so there are factors which include the emissions, and the climatic change in the environment. Therefore, the use of electric vehicles is most common in these industries. Mining software used in these industries, and one of the most basic example from them is X-ray diffraction. To analyse the samples and to check their property densities, this ultimately saves time and money (Jilcha & Kitaw, 2017).
Efficiency of operations in an organisation is achieved when the organisation is updated in terms of human resource, technologies, methods, processes, and the production activities. In today’s world technology has a major impact which ensures an organisation’s competitive advantage among the competitors in the industry. Efficient manpower in an organisation with the best practices and production methods helps in achieving the organisational goals and objectives. When an organisation employs effective technology it reduces the manufacturing and the other costs, relatively the cost of manufacturers, suppliers, and the retail stores. However, this affects the employment level in the industry within the particular region or country. Use of technology or the trends in the mining and construction industry includes the use of Smart/green construction, cloud mobile technology. With all the possible efforts in this area, it ensures and improves the flexibility, accessibility and lowers the overall cost of the operations (BHP, 2017).
Multiple Perspectives on the Technological factor
Technological factor is one of the most important factors in the organisational context. Along with the benefits of technological advancements, in the business environment, there are some of the implications of the same. The use of technology may affect the environment and the organisation’s growth positively as well as negatively. Studying the role of technological factor in the business environment from the multiple perspectives, it can be analysed that the technology have affected the business in positive manner. Along with this, it replaces the human capital from the business organisations also. Critically reviewing the technological factor in an enterprise, it has been found that technological advancement is the common problem or threat to the miners in the mining companies including cave-ins (Brunow & Nijkamp, 2018).
Technology in this era can be understood from the multiple perspectives, relating from the improvement in the equipment handling, processes, or methods of operations, to the improvements or changes in the human resource management of the BHP. It specifies the HR practices or planning to manage and increase the efficiency of the workforce in the organisation. Most importantly, the technology had a major impact on the productivity and in the improvement of the communication processes. Therefore, looking at the multiple dimensions of the technological aspects of the environmental factors, it can be demonstrated that technology in the field of mining play a dominant role (Boulter & Hall, 2015).
Impact on HR Planning, Job design, and work practices on BHP Billiton
The technological environmental factor in an organisational context is related to the various dimensions of organisational performance. The external factors pose a great influence on the organisation. The HR planning, job design and the work practices are often essential for the organisation’s success. The changes in the external factors, impacts the work practices positively. Employees are the main source of the organisational performance in the long run, therefore the HR practices should be effectively implemented to obtain the desired outcomes. Advancement in technology, leads to the changes in the HR planning, of the company, as the management enhances the process of the hiring of the applicants in the organisation. Nowadays, the organisations have realised, that they cannot achieve the target of effective recruiting and skilled employees without the help of IT and other technologies. People these days are now aware of the online systems and the portals and they search for the job offers and the recruiting organisations. Also, the data management in the organisations becomes easier with the help of IT (Selvan, 2015).
Impact on the job design
It can be understood and analysed in the following manner. Job design also known as task design or work design is an important function of human resource management. It relates to the specification of the job content, methods, and the relationship of the job with respect to the organisational requirements, as well as the personal requirements of the job holder or employee in an organisation. It guides about how the nature of any particular job will affect the employees behaviour or attitude towards organisation (Liphadzi & Vermaak, (2017).
The aim of the job design is improve the level of job satisfaction in an organisation, therefore enhancing the human resource management practices in an organisation. For hiring and retaining the human resource in an organisation, the management team must ensure an effective human resource planning. It is described as a process of ascertaining the manpower requirements, of an organisation which must be linked with the attainment of strategic goals and objectives. Therefore, when there will be betterment in the policies of job design in an organisation, then it will automatically improve the HR planning process of the organisation (Perrott, 2015).
Technological advancement impacting the work practices
A number of work practices impacted by the technological changes include factors such as sustainability and safety, technology integration, energy costs, financial performance, and the factors affecting the people and their skilled performance. The technological changes impacting the BHP Billiton also includes the HR management and the work practices. These work practices may refer to the mining and automation practices, which with the use of new technologies improve the productivity (Szczurek, 2018).
With respect to the company, BHP Billiton uses the Escondido, as their IT function to enhance their productivity. Also, it helped the company to achieve the strategic business direction. The particular IT function helped them to attain the target of generating massive amount of data. This assist the workers in the process of data mining, and the organisation also, to have secured and accurate data which forms the basis of effective decision-making. The improvements in the technology helps to improve the productivity therefore, overall performance is thus improved (The conversation, 2018).
With the introduction of the advancements in technology, the company also aimed at achieving better communication with their employees and the other stakeholders. This also affects the HR practices, and the other activities in BHP. As IT improves the communication process and BHP is a very large company, and if the communication system fails, then the company would face the situation of loss. Enterprise communication and the network solutions are used by the company that facilitates the communication process which further leads their business processes bringing higher return on their investments. Thus, it can be stated that there are a number of influences that technology has on the HR practices or planning of BHP. Managers are now at ease effectively managing the functions of procurement, maintenance, development and the utilization of the resources more efficiently and effectively (Ramirez, 2016).
Implications/Examples from the company
From the above discussion, it can be stated that there are certain implications, resulting from the technological changes or advancements include certain things. It mentions about the business solution used by BHP Billiton, which ultimately helps them to manage their projects effectively, that further benefits them gaining a competitive advantage (Technology and Operations management, 2015).
BHP’s business solution refers to the inventory management that records each and every inventory item in the business operations. Also, they include the use of other methodologies and the ERP (Enterprise Resource planning) systems. Moreover, BHP has their own IT department which helps them in maintaining their systems and processes to be conducted smoothly. The company also used advanced sensors that further improved the quality and the grade of ores delivered to their processing plants. Autonomous drilling system is another example from the given context about technological advancements. Company uses IT for their supply chain management. This helps them to maintain sound relation with their suppliers, and their clients and the customers (Chugh, Sharma & Cabrera, 2017).
Remote and the autonomous technology as the key drivers of productivity
BHP is the world renowned leader, in terms of the remote monitoring and the large scale mines. Therefore, to improve the efficiency, safety, reliability and the consistency with the business strategies, certain changes were made in this regard. In the year 2013, BHP unveiled about the remote control centre which is called as the IROC (Integrated Remote Operations Center). This helped BHP to monitor and control in real time sense, the BHP’s Western Australian Iron Ore Network (The conversation, 2018). Therefore, it can be understood that the IROC, helped BHP to enhance the overall system-wide availability, utilization and the output rate of their assets. In a broader sense, it can be analysed that the IROC assist BHP ensuring that the company remains as a world’s largest miner with the competitive advantage (Lynas & Horberry, 2011). Also, it relates to the lowering of the per unit production costs, largest scale and higher productivity. This helps in improving the implementation and the achieving the desired outcomes of HR planning and effective human resource management (Saunders, Timson & Desloires, 2015).
Looking at the whole perspective about the technological changes or advancements, along with the positive impacts there are some of the negatives also, which impacted the human resource management. Past few years the company reported a failure regarding the BHP’s Brazilian dam which led to the safety issue. Hence, the above discussion states about the influence or impact of the technological changes on the BHP’s work practices in both positive and negative sense (St-Laurent & Le Billon, 2015).
Recommendations
As an HR practitioner, it can be recommended that there should be some changes regarding the safety issue in the organisation. As safety is one of the major concerns in the mining industries or organisations, therefore these should not be overlooked. And BHP is one the globally leading company with large and complex projects, effective data management becomes the major problem. The company should focus on the use of strong encryption for the prevention of data and the intellectual properties. The top management of any company holds the responsibility of effective decision-making and devising plans and strategies for the organisational goals and objectives. Therefore, as an HR practitioner, the company should aim at devising new strategies and plans that would help them in ensuring about their workers safety and security. In the terms of skilled and talented workforce, the company can develop new and effective training programs so that they gain the necessary skills and abilities. These include the training as on the job training programmes and vocational training must led to their improvement.
Conclusion
To conclude the above discussion it can be analysed that an organisation operates and functions in the environment or the society. The environment is categorised as external and internal, which influences the working of any organisation. With respect to the environmental analysis, considering all the factors external environmental factors has been taken to explain their relevance in the chosen company. The technological environmental factors play a major role in shaping the future success and performance levels. As today’s scenario mainly describes about the rapid advancements in the business environment, every business organisation has to develop new methods of working. There has been a great impact on the organisation’s HR planning, job design and the work practices of the BHP. The major changes or impacts were positive but, there were some of the negatives also, which impacted the organisation negatively. There were issues regarding the equipment and their safety to the people working in the industry. The company implemented several system of managing their human resource, diversifying their operations, and the use of ERP and other advanced systems. With reference to the description of the above mentioned technologies or systems adopted, the company achieved a world-wide acceptance or popularity amongst other mining companies in Australia.
References
Bell, T. (2017). Company Profile: BHP Billiton. Retrieved from: https://www.thebalance.com/company-profile-bhp-billiton-2340279
BHP (2017). Which technologies will boost mining safety and productivity? Retrieved from: https://www.bhp.com/media-and-insights/prospects/2017/11/which-technologies-will-boost-mining-safety-and-productivity
Boulter, A. & Hall, R. (2015). Wireless network requirements for the successful implementation of automation and other innovative technologies in open-pit mining. International Journal of Mining, Reclamation and Environment, 29(5), 368-379.
Brunow, S. & Nijkamp, P. (2018). The Impact of a Culturally Diverse Workforce on Firms’ Revenues and Productivity: An Empirical Investigation on Germany. International Regional Science Review, 41(1), 62-85.
Chugh, R., Sharma, S. C., & Cabrera, A. (2017). Lessons Learned from Enterprise Resource Planning (ERP) Implementations in an Australian Company. International Journal of Enterprise Information Systems, 13(3), 23-35.
El Bizri, H. R., Macedo, J. C. B., Paglia, A. P., & Morcatty, T. Q. (2016). Mining undermining Brazil’s environment. Science, 353(6296), 228-228.
Jilcha, K., & Kitaw, D. (2017). Industrial occupational safety and health innovation for sustainable development. Engineering science and technology, an international journal, 20(1), 372-380.
Liphadzi, S. M., & Vermaak, A. P. (2017) Assessment of employees’ perception to sustainable water management by coal and iron ore mining companies. Journal of Cleaner Production. 153(1), 608-625.
Lynas, D. & Horberry, T. (2011). Human factor issues with Automated mining equipment. The Ergonomics Open Journal, 4, 74-80.
Perrott, B. E. (2015). Building the sustainable organization: an integrated approach. Journal of Business Strategy, 36(1), 41-51.
Ramirez, J. (2016). The Use of Technology in Organizations. In Multinational Enterprise Management Strategies in Developing Countries , pp. 108-128. IGI Global.
Saunders, A., Timson, L. & Desloires, V. (2015). Report shows safety issues at BHP Billiton’s failed Brazilian dam were highlighted two years ago. Retrieved from: https://www.smh.com.au/business/companies/report-shows-safety-issues-at-bhp-billitons-failed-brazilian-dam-were-highlighted-two-years-ago-20151111-gkwb5w.html
Selvan, T. (2015). Study on role of technology in Human resource management. International Journal of Applied Research, 1(7), 472-475.
St-Laurent, G. P., & Le Billon, P. (2015). Staking claims and shaking hands: Impact and benefit agreements as a technology of government in the mining sector. The Extractive Industries and Society, 2(3), 590-602.
Subramanian, S. (2017). 5 Strategies to improve Mine safety and Productivity. Retrieved from: https://rapidbizapps.com/strategies-improve-mine-safety-productivity/
Szczurek, T. M. (2018). Champions of technological change: How organisations successfully implement new technology. United Kingdom: Routledge
Technology and Operations management. (2015). BHP Billiton- Remotely Resourcing the Future. Retrieved from: https://rctom.hbs.org/submission/bhp-billiton-remotely-resourcing-the-future/
The conversation. (2018). Technology will play a starring role in Australia’s future story. Retrieved from: https://theconversation.com/technology-will-play-a-starring-role-in-australias-future-story-48001
Wagner, T. P. & Raymond, T. (2015). Landfill mining: Case study of a successful metals recovery project. Waste Management, 45, 448-457.
Westerman, G. & Bonnet, D. (2015). Revamping your business through digital transformation. MIT Sloan Management Review, 56(3), 10.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. United Kingdom: Pearson.
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