V I C T O R I A N T A F E A S S O C I A T I O N – A G U I D E T O T H E R E S P O N S I B L E G O V E R N A N C E O F T A F E IN S T I T U T E S

Module 8. HUMAN RESOURCE MANAGEMENT

Introduction
This module sets out good practice in Human Resource Management (HRM) in TAFE and outlines the responsibilities of Councillors in relation to
it.

HRM includes issues about the management of people and their development; from traditional selection, training, compensation and performance
management to the alignment of HRM functions and activities with strategic goals.

Arguably the human resources of an Institute are its greatest resource and can provide a competitive edge through excellence in teaching
standards, professional behaviour, efficient and externally focussed administration, and community leadership.

Council and the senior management team have a profound influence on an Institute through their resp ective inputs to HRM issues. Typically,
Council members have input to HRM at the strategic planning and review level. Senior managers also participate at the strategic level and are
responsible for implementation at the operational level.

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Why is Human Resource Management Needed?

Effective HRM at a strategic level is a crucial source of sustaining an Institute’s competitive advantage and continuous improvement particularly
when it enables the following outcomes:

 Employees to contribute more fully to organisational objectives and

 Organisations to respond more positively and creatively to changes in their environment.

It is a truism that nothing happens without people making it happen and systems, tools and techniques are becoming increasingly more
sophisticated and useful. However, these systems cannot operate at all unless people use them by providing appropriate inputs and make
interpretations and decisions based on the information available.

Human resources, people, are THE critical ingredient in organisational success.

For TAFE, people are an integral part of that ‘competitive edge’ that lies between a community that is engaged with learning and a community
that is not. They are critical in building the respect and value that the community has to have for TAFE to become the knowledge provider of
choice.

Management practice has evolved to a point where HRM is a distinct function that must be aligned with other strategic functions and directly
affects the performance and sustainability of an Institute.

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Essential Thinking For Councillors
The Challenges
Compliance with general
workplace regulations
Enterprise Bargaining
Agreements (EBA)
Performance Management
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Issues & Implications
 Many organisations have taken an ad hoc approach
to understanding Occupational Health and Safety,
Equal Opportunity, and Sexual Harassment,
assuming such issues are the domain of ‘others’.
 Individuals and organisations are liable, and
organisations must be able to demonstrate that they
have fulfilled their obligations under the relevant Act.
 A key plank of the current industrial climate is the
negotiation and implementation of Enterprise Based
Agreements between the organisation and
representative Unions.
 The process of negotiation of an Enterprise
Agreement can facilitate the development of a more
open and productive industrial relationship that is
integral to the achievement of organisational goals.
 In a more accountable environment, TAFE Institutes
generally have implemented a performance
management system to establish, measure, and
recognise the achievement of key accountabilities or
key performance indicators.
 Performance Management leads to agreed
expectations and performance standards between
managers and staff, and to the linking of development
needs to the organisation’s strategic goals.
Actions & Responses
 Councillors need to be familiar with a broad range of
issues in HRM, but they are not expected to be
experts in the detail.
 In particular Councillors need to ensure the Institute
provides an appropriate working environment,
training and education for all staff, and appropriate
responses to any HRM issues raised.
 Council would expect the CEO to drive EBA planning
negotiations, but they should ensure that they are
familiar with the main issues.
 Measurement must be conducted in the context of
the strategic priorities set by Council and as
articulated in the Strategic Plan.
 Councillors must be confident that measurement is
being well conducted, including the rigour and scope
of Key Performance Indicators.
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The Challenges Issues & Implications Actions & Responses

Remuneration  The remuneration of the majority of staff is generally  Councillors need to be familiar with their role in the
part of the EBA process and the subject of periodic Victorian Government’s Executive Officers
reports to OTTE. Remuneration process.
 The remuneration of “Executive Officers” in Institutes
must be endorsed by the State Government.
Workforce Development  Workforce Development is a broad term that covers  Councillors need to be familiar with workforce
areas such as workforce statistics and broad human characteristics, trends and the implication for the
resource development planning. Institute.
 The government report “Trends in the Victorian TAFE  Comprehensive workforce development plans need
Institute Workforce” outlined the major characteristics to be in place, and Council must be aware of how
of the workforce in the period 1993 to 1998 and the their Institute’s plan is aligned with other parts of the
implications for future training and development. This Strategic Planning and Reporting System.
report is available at www.otfe.vic.gov.au/workforce
 The workforce is ageing, with the majority of older
teachers employed on an ongoing basis.
 It is predicted that 60% of executive and other key
teaching and support staff will retire from the TAFE
workforce in the next few years.
 There is a shortage of future managers with the
necessary knowledge of business and key
techniques such as strategic planning.
Recruitment  Recruitment and retention of quality staff is part of  Councillors may become involved in Recruitment and
Workforce Development. Executive recruitment and Selection Panels where the appointment of an
retention is a matter that Councillors must executive fulfils a key strategic objective.
understand.  Councillors, and specifically the President, need to be
involved with the selection of the CEO.

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The Challenges Issues & Implications Actions & Responses

Flexible workforce
 The realisation is growing that a flexible workforce is
fundamental to achieving business plans. Flexibility
in terms of skills and working arrangements, in order
to respond effectively to the changing need of
customer groups, will become a key capability of
organisations.
 The CEO would be expected to drive this as part of
the EBA process. However, Council should be
informed on what is being done to ensure adequate
flexibility in the workforce.

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The Role of a Councillor

The development and operation of an HRM Plan is the responsibility of the Management. Councillors must ensure that such a plan is active and
should request periodic briefings on the results of its implementation.

This plan should ensure that the organisation has well understood Human Resource policies in place and that those policies include
implementation plans and monitoring procedures that reflect its strategic objectives.

The areas that Human Resource Policies should address include:

 Occupational Health and Safety

 WorkCover

 Anti-Discrimination

 Equal Opportunity

 Racial Hatred

 Privacy

 Protection of Whistle blowers

The sources of the legislation that govern these requirements are shown in Appendix I of Module 1 of this Guide.

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How To Ensure that Human Resource Management is Satisfactory

It is not the role of a Councillor to contribute to the detail of Human Resource Management, but Councillors do have a responsibility to ensure that
satisfactory policies and plans are in place.

It has been mentioned elsewhere in this Guide that many Institutes are now engaging in non-traditional activities, and this involvement raises a
new and complex range of legislative issues involving Institute staff at home and abroad. Again, Councillors need to be assured that appropriate
policies and risk management processes have been developed and implemented.

Councillors need to be assured that key people understand the strategic priorities and direction developed at Council level for the Institute, and
that critical HRM components such as performance appraisals, training and development, enterprise bargaining agreements and succession
planning have been given proper attention by management.

Normally the CEO or his or her delegate would keep Councillors informed about these matters. If Councillors have concerns about the
information provided or the risk element of HRM practices, they should raise them and insist on receiving timely and satisfactory answers.

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Examples of Good Practice

Key Elements of HRM Plans include:

 A well designed integrated organisational structure, and commentary on how it aligns with the Institute’s strategic objectives
 Modern employment relations practices linked to strategic objectives
 A performance management system that includes a system for matching an individual’s development to the organisation’s strategic needs
 A program to achieve workforce productivity and flexibility
 Valuable Enterprise Agreements and processes
 Documented recruitment and selection processes, based on job analysis and core competencies
 A Succession Plan
 A documented HR strategy which specifies that workforce development will facilitate the achievement of business objectives and bring about
the changes required
 Regular review and assessment of HRM implementation, including an annual review of workforce development objectives and achievements
 Processes and practices that enable clear and genuine communication between staff members and their managers.

Further references:

A key reference document is Managing People for Performance: Leadership and People Management in TAFE Institutes, VTA 1998.

A CD Rom from OTTE (2001) Defining and Scoping Human Resource Development in the Victorian TAFE System, OTTE, 2001.

The website http://www.summaries.com is a site showing subscribers the latest developments in HRM and best practice examples.

TAFE Workforce: The Continuous Transition, A VTA Discussion Paper (Nov 2001).

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