An assignment on BUHRM5912 Human Resource Management, a strategic approach towards effective administration of employees

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BUHRM5912 Human Resource Management


Human resource management is construed as a strategic approach towards effective administration of employees in organization. With proper human resource practices and principles, an organization can taste success and stability in the end. This analytical report is a comprehensive synopsis of the impact of amendments in the penalty rates in Australia, as of 1 July 2017 by the Fair Work Ombudsman. The report is structured using a standardized framework to address the impacts of the change followed by a set of recommendations. Considering the influential nature of penalty rates in determining the rights and additional earnings of employees, the report has been devised consisting of a streamlined detail of the hospitality sector. 


Impacts of changed penalty rates in Australia 2017 


This section of the report consists of a comprehensive discussion of the impact of changed penalty rates regarding the FWC penalty rates resolution on the healthcare industries like Fiona Stanley Hospital. The most adverse impact was the sudden reduction in the Sunday rates for part time and full time workers underneath the retail rewards to 150 percent from 200 of the regular wage rate (McIvor & Markey (2017). There were many diverse

effects of this penalty rate, which include influence on pay rents, a daily

loss of wages, influence on annual earning, impact on the equity of earning, influence

on the aggregated losses and income of the labors, effect on individual

employment and their choices, impression on weekly pay and accounting choices

after employment consequences (Drahos & Braithwaite (2017)


HR planning

Human Resource planning is a boon to the modern society similarly; it greatly emphasized during the major fallout of the penalty rates in Australia during 2017. The grave decision to cut down penalty rates is a clear pointer that the FWC is quite transparent in their main objective to protect the employers over workers of Fiona Stanley Hospital. Thereby the HR’s are much more focused on their work for in hand proofs rather than media furor. Some of the major impacts are

Influence on Pay Rates

The reduction on the Sunday rates is quite equivalent to a cut of 17 to 13 percent in hourly wage rate. The Healthcare award is almost equal to the be one of the largest consideration of the awards here (Horn, Elgindy & Gomez-Iglesias (2016).Cuts in holidays of Public announcements is equivalent to 9 percent wage rate on Sundays for the hospital employees of Fiona Stanley



Loss of Daily Wage Structure 

 In a recent report, it suggests that employees work for a 5.5 hour the usual loss of an affected Sunday employee in hospital industry is equal to $25 to $31 per day (Broad,

Dandy & Maier, (2015). On public weekly offs the usual loss of an employee

under the penalty rate ranges from $25 to $33 per day.


Diverse Impact on Weekly Pay 

The main objective of the penalty rate was to increase the employment that would result from it but observing the present situation it is a serious doubt whether any employment result would materialize, and even some of the evidences suggest that there will be no significant gains as such.

Change on the Annual Earning

For the employees of low grade working for an average of 5.5 hours on each Sunday the earnings of changed penalty rates varies from $750 to $1600 in hospitality sector which a huge gap from the previous rate. Any worker on Sunday would experience an annual reduction due to the penalty rate changes.

Influence on Aggregate Losses and Income of the Labor

The Workers working on Sundays work for an average of 5.5 hours the total earning losses in the hospitality industry ranges up to $220 million depending mainly on the elasticity assumption used. A minor portion of these losses is usually unpaid but the greater proportion is of paid losses.

Impact of Earning Equity

Hospitality sector including Fiona Stanley Hospital were the lowest paid in the country in an individual level. A reduction in the earnings of this group would therefore necessarily increase distribution inequality of individualistic earning if measured on a weekly or hourly basis.


Job design

Due to the sudden change in the wage rate and holiday scenario, the job aspirants as well as the recruiters are facing same problems. By a survey conducted by the Macquarie University on 1352 workers it has been observed there has not been any short term or long term increase in the weekly hours as such. While the retail workers worked for a considerable amount of 9 percent fewer on Sundays but the hospitality workers did not had any facility as such as to the cut on the penalty rates have failed to create excess amount of jobs for the hospital sector including Fiona Stanley Hospital. Many of the well-known doctors and nurses were bound to leave their jobs due to the sudden change of the working scenario that FWC did to raise the employment to a greater level (Fowkes, & Sanders, (2018).

 Comparison between Previous and Present Healthcare Industry

The reaction on this scenario from the opponents has been on a hysterical basis. The main economical job design was quite different from the present situation as in the previous days the male working population was maximum in hospital sectors and industrial sectors. Most retail outlets and hospitals would shut during the peak noon hours and again open on monday.Weekends were a gateway from the otherwise hectic days and would help a person to recreate and refresh his mind. Although the previous system was lacking some of the effective measures but the present, penalty rates have further worsened the situation largely.

Impact of Reduction in Penalty Rates on Employment

Normally the business scenario determines the labor demand. The main objective is the costs included in employing a labor. A Health care firm decides simultaneously that how much labor would they hire and what their supply on output would be (Cassell, & Newstead, (2015). A major blow was received by the healthcare sector due to the reduction on the penalty. A rather fall in the costs of the labor would otherwise turnaround the profitable things to unprofitable thus the firms usually hire much more people than otherwise required only to boost much more efficiency of goods and services. Due to the sudden rate of penalty the healthcare firms are running at a loss as it have to provide both for the wages as well as the development of the infrastructure of the healthcare firms.

 Quality of work practices

Determination of the quality of the work practices are considered to be essential for conducting any kind of business done by the organizations (Jackson, 2015). The good quality of the works done is known to be beneficial for the organizations as the works will be carried out effectively without the occurrence of any defects which might hamper the image of the organization and thereby, their business. An accurate availing of the services or the products according to the customers helps to satisfy the customers and increase the brand value and thus, maintaining the goodwill of the organization at the same time. Therefore, it is essential requirement that the performances of the workforces related to the work done should be effectively management by the performance management department of the organizations. Thereby, the quality of the services offered by the company should be followed and the standards should eb followed for increasing the customer base of the company. The adaptability of the work ethics thus, should be incorporated within the organizational structural which includes willingness of the individuals towards working, taking responsibility of the works assigned to them, maintaining a positive attitude thorough out the whole processes until its completion. Other factors that needs to be considered as well includes the honesty in the works done and adapting to every kind of situations. However, from overviewing of the scenario one it is evident that the there was certain penalty rates in the sectors of hospitality, restaurants, fast foods, retails and in the pharmacies. Penalty rates of these above-mentioned sectors are considered to be more that than the other sectors.  Penalty rates denotes the increasing rate of the pay which is to be received by the individuals for working overtime or beyond the working hours or any abnormal conditions. According, to the new penalty rates in the above-mentioned award sectors have seen that the Fair Work Commission has revised old pay scale (Jackson, 2018). Hence, according to the new policies and regulations the employees will be increasing during the public holidays and during the Christmas weekends. It has also been mentioned that the trainees will also get the same pay scale as the normal employees who are working on a full time and part time basis. The change in the new rates has greatly changed the development of the strategies and planning of the workforce in the planning done by the human resources of the various companies in that sector. The designing of the jobs has also been changed up to some extent and new inputs has been incorporated in the practices done in the previous organizational structures of the organization. Thus, it is necessary that the works should be done maintaining the qualities. Thus, adopting of various policies for the development of the workforce will help in motivating the employees for effective working to be conducted and developing of their interpersonal skills and knowledge. Quality of the works denotes the sustaining capacity and the scopes for the success in the competitive market.

Recommendations to address the identified impacts

Recommendation 1

With the unlikely changes made, pertaining to penalty rates for the employees in the hospitality sector, the industry has undergone a holistic reformation. According to Fair Work Ombudsman, these changes will affect the permanent and casual employees who are working on holidays and non-business days. Assuming the role of an HR practitioner, a set of justified recommendation are being forwarded in this section 


An estimate accounts to 120,000 to 125,000 Sunday non-managerial employees getting affected by the Sunday penalty rates. As a direct outcome the productivity of employees are significantly declining leaving a gap in the qualitative aspects of services. Therefore, the hospitality industry needs to find ways to recover from the impact of changing penalty rates. Owing to the reduction in penalty rates especially in the Sunday working hours for employees, the efficiency of employees are strikingly reducing. According to, () there has been voluntary withdrawals from jobs owing to this drastic step by the Fair Work Ombudsman. 


The recommendation lies in the amelioration of the workplace agreements that will contain the fundamentals of employment details and fare release of wages and awards. It has been argued by critics that the cut in the Sunday penalty rates have been unjustified and prejudicial towards employment. One of the significant recommendations for fending off the situational fiasco would be to create an enterprise contract and let the employer negotiate with the individuals on their availabilities. Additionally the exploitation of expatriates and migrants employees must witness a considerable rise in the penalty rates. 


Recommendation 2

 This recommendation part is mainly based on the changed penalty rates regarding the FWC penalty rates resolution on the hospital industries like Fiona Stanley Hospital. According to the changed in the penalty rates on the annual earning of the Fiona Stanley Hospital it can be recommended that before doing any kind of plan about the patients’ treatment or medicine related the management team of this organization should communicate with their employees and the doctors properly. In the same way, in order to reduce the change in the annual earning in a good way, the management team needs to evaluate the treatment cost earlier before giving admission to a patient. On the other hand, if any employees can show the interest to do over time towards the patients’ treatment therefore the hospital authority will get the chance to reduce the maximum changes on the annual earning. On a similar note, they will get the chance to receive valuable feedback from the patients and increase the profit rate more than 78% than the previous time (Caballero, Farhi & Gourinchas, 2017). As the penalty rates mainly varies from $750 to $1600 therefore it can be recommended that in order to mitigate this huge earning gaps the hospital management team should evaluate their treatment cost properly. In addition, they need to bring new technology to make the annual earning process better and reduce the cost problem of Fiona Stanley Hospital.

Recommendation 3

From the diverse impact on weekly pay perspective, it can be recommended that in order to increase the penalty rate of this hospital the higher authority of Fiona Stanley Hospital needs to recruit some skill and knowledge based employees for them. Therefore, the management team of this organization would be able to give proper health treatment to their patients (Pels, van Rooij & Distelbrink, 2015).  On the other hand, for improving the diverse factor on weekly pay the hospital authority members should communicate with their employees to give them proper training in order to bring development on their health service process. The main objective of the diverse impact on weekly pay is to increase the employment that can have the perfect result from the employment development strategy of hospital members and that should be done by the higher authority for increasing the weekly pay. On the other hand, weekly pay process will give the opportunities to the employees for staying in the hospital to provide premium quality services to their Patients and increase the profit rate properly. The weekly pay process can have the good impact on the employees’ to encourage them for sustaining in the organization and work in an effective manner (Lu, Yang & Yuksel, 2015).

Recommendation 4

In order to understand as well as evaluate the impact of earning equity of the Fiona Stanley Hospital it can be recommended that the hospital authority needs to communicate with their patients for fulfilling their needs. With this, a reduction in the earnings of this hospital group can have the bad impact therefore; necessarily increase distribution inequality of individualistic earning is needed for measuring the earning equity process of the employees.




In the light of the above discussion, it can be asserted that, there has been a significant loss in income owing to the changes in the penalty rates in the hospitality sector. Despite of allowing the controversial employment gains, the average pay for Sunday employees are less compared to their prolonged working hours. In certain scenarios, the provisions of additional pays have been overlooked for that matter of fact. Considering the rarest possibility of an overall increase in the demand for penalty rates in the hospitality and retail sector, it can be stated that such changes are definite stimulators to restore the conventional provisions of penalty rates. The recommendations suggest for a fair enterprising contract that would relate to the pertinent aspects of employment on both business and non-business days. 

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