HR processes: acquisition, development, maintenance and separation, with the legal rules for notice, redundancy and unfair dismissal (HSC Business Studies)
“Processes of human resource management - acquisition (recruitment and selection); development (induction, training, mentoring, performance appraisal); maintenance (employee participation, organisational culture, change management); separation (voluntary - resignation, retirement; involuntary - retrenchment, redundancy, dismissal)”
HRM manages the employment relationship through four processes. Acquisition: workforce planning, recruitment (internal or external) and selection. Development: induction, training, mentoring and performance appraisal. Maintenance: keeping employees productive and committed through pay and conditions, employee participation, organisational culture and change management. Separation: voluntary (resignation, retirement) or involuntary (retrenchment/redundancy, dismissal). Each stage is governed by law: anti-discrimination in selection, the National Employment Standards on notice and redundancy pay, consultation duties, and the Fair Work Act's unfair dismissal and general protections rules.
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What this dot point is asking
The syllabus lists "processes of human resource management: acquisition; development; maintenance; separation". Questions ask you to describe or explain the processes, apply them to a stem business, or recommend how a business should manage one (often separation or change).
Acquisition
Acquisition is attracting and selecting the employees the business needs.
- Workforce (human resource) planning: forecasting the number and type of employees needed, compared with the current workforce, given the business's plans.
- Job analysis: identifying the tasks of a role, producing a job description (duties, responsibilities, conditions) and a job specification (qualifications, skills and attributes required).
- Recruitment: attracting a pool of suitable applicants.
- Internal recruitment (promotion, transfer): cheaper and faster, motivates staff, the person already knows the business; but limits new ideas and leaves another vacancy.
- External recruitment (online job boards, social media, the business's website, recruitment agencies, employee referrals, universities and TAFE): wider pool and new skills; but costlier, slower and riskier.
- Selection: choosing the best applicant.
- Screening applications and CVs against the specification;
- Interviews, preferably structured (the same questions for every candidate, scored against criteria) to reduce bias;
- Tests: skills, work samples, psychometric and aptitude tests;
- Reference and background checks (and legal right-to-work checks);
- Making the offer and employment contract.
Legal and ethical requirements. Anti-discrimination laws apply from the job advertisement onwards: selection must be based on merit, not on protected attributes such as age, sex, race, disability or pregnancy. Automated screening tools must be checked so they do not disadvantage protected groups. Employees must receive the Fair Work Information Statement (and the Casual Employment Information Statement for casuals).
Development
Development is improving employees' skills, knowledge and performance.
- Induction: introducing new employees to the business (history, values, structure), their role, colleagues, policies, systems and work health and safety procedures. Good induction speeds productivity and reduces early resignations.
- Training: building the skills to do the current job (and the next one).
- On-the-job: coaching, job rotation, demonstration while working: relevant and cheap, but can disrupt work and pass on bad habits.
- Off-the-job: courses, workshops, online learning, formal qualifications: structured and expert-led, but costlier and less directly applied.
- Mentoring: an experienced employee guides a less experienced one on skills, career and culture; benefits both parties and supports retention.
- Performance appraisal: assessing performance against agreed goals and giving feedback.
- Developmental appraisal focuses on feedback, strengths and training needs.
- Administrative appraisal informs decisions about pay rises, bonuses, promotion or dismissal.
- Methods include self-appraisal, manager review, 360-degree feedback (from managers, peers, direct reports and sometimes customers), and goal-based reviews.
Example: development after a failure. When the Federal Court ordered Optus to pay a $100 million penalty in September 2025 for unconscionable sales practices towards vulnerable customers, its compliance commitments included a new training and induction system for sales staff and a specialist care team for vulnerable customers. Development was part of the remedy.
Maintenance
Maintenance is keeping employees productive, satisfied and committed, so the business retains the people it has invested in.
- Pay and conditions: correct and fair pay at least at award and agreement rates (award wages rose 4.75 per cent from 1 July 2026), leave, flexible work, a safe workplace and benefits.
- Employee participation: involving employees in decisions, through consultation, work teams, suggestion schemes, surveys, work health and safety committees and enterprise bargaining. Participation improves decisions and commitment.
- Organisational culture: the shared values, beliefs and behaviours of the organisation. HR shapes culture through who it hires, what it rewards, how leaders behave, induction and communication.
- Change management: helping employees through changes in technology, structure or location by communicating, consulting, training, supporting and staging the change (see the Original question above).
- Wellbeing and work-life balance: employee assistance programs, flexible working, the right to disconnect outside working hours (for all employers since 26 August 2025) and managing psychosocial hazards.
Example: maintenance through change. When Woolworths announced its automated and semi-automated distribution centres at Moorebank in 2020, replacing older centres at Minchinbury and Yennora, it committed to offering 650 redeployment roles at the new sites and career transition support for affected workers.
Separation
Separation is the end of the employment relationship.
Voluntary separation (initiated by the employee)
- Resignation: the employee leaves for another job, study or personal reasons, giving the notice required by their award, agreement or contract.
- Retirement: leaving the workforce, often around superannuation preservation age (60) or Age Pension age (67). Forcing someone to retire because of age is age discrimination.
HR tasks: final pay including accrued annual leave (and long service leave under state law), return of property, handover, and an exit interview to learn why people leave.
Involuntary separation (initiated by the employer)
- Retrenchment/redundancy: the job is no longer required by anyone because of restructuring, technology, falling demand or relocation. It is about the job, not the person.
- Dismissal: termination because of the employee's conduct or performance. Summary dismissal (without notice) is only for serious misconduct such as theft, fraud, violence or serious safety breaches.
NES notice of termination (by the employer)
| Continuous service | Minimum notice |
|---|---|
| 1 year or less | 1 week |
| More than 1 year to 3 years | 2 weeks |
| More than 3 years to 5 years | 3 weeks |
| More than 5 years | 4 weeks |
Employees over 45 with at least 2 years' continuous service get an extra week. Employers can pay in lieu of notice.
NES redundancy pay (not required for small business employers with fewer than 15 employees)
| Continuous service | Redundancy pay |
|---|---|
| At least 1 year, less than 2 | 4 weeks |
| 2 to less than 3 | 6 weeks |
| 3 to less than 4 | 7 weeks |
| 4 to less than 5 | 8 weeks |
| 5 to less than 6 | 10 weeks |
| 6 to less than 7 | 11 weeks |
| 7 to less than 8 | 13 weeks |
| 8 to less than 9 | 14 weeks |
| 9 to less than 10 | 16 weeks |
| 10 years or more | 12 weeks |
A redundancy is genuine only if the employer no longer requires the job to be done by anyone, it has met its consultation obligations under the award or agreement, and it would not have been reasonable to redeploy the employee within the business or an associated entity.
Unfair dismissal and general protections
An employee can apply to the Fair Work Commission for unfair dismissal within 21 days if the dismissal was harsh, unjust or unreasonable. To be eligible they must have completed the minimum employment period (6 months, or 12 months with a small business employer) and be covered by an award or agreement or earn less than the high income threshold ($190,100 from 1 July 2026). Small businesses that follow the Small Business Fair Dismissal Code are protected. Separately, the general protections make it unlawful to dismiss someone for a prohibited reason, such as a workplace right, union membership, a complaint, or a protected attribute.
Procedural fairness for dismissal means: a valid reason; telling the employee the reason; giving them an opportunity to respond (with a support person); and, for performance, prior warnings and a chance to improve.
- Consultation first
- When Telstra announced in May 2024 that up to 2,800 roles would go in its restructure, it said consultation on 377 of those roles would begin immediately, reflecting the consultation obligations in its enterprise agreements.
- Method matters
- On 30 July 2025 Atlassian informed about 150 customer support staff of redundancies through a pre-recorded video from its chief executive, followed by emails; affected staff reportedly lost access to their laptops soon afterwards, and were to receive six months' pay. The pay was generous, but the method was widely criticised.
- Lesson
- Separation should be lawful (genuine, consulted, correct pay), respectful (personal communication, dignity, support such as outplacement and employee assistance) and considerate of remaining staff, whose engagement suffers if colleagues are treated poorly.
Redundancy is about the job no longer being needed; dismissal is about the employee's conduct or performance. The legal tests and entitlements differ.
Quote notice periods, redundancy pay and the small-business exemption accurately; the table is examinable knowledge.
Development includes induction, training, mentoring and performance appraisal. Mention all four.
Maintenance (pay, participation, culture, change, wellbeing) is where retention is won or lost and links directly to the effectiveness indicators of turnover and absenteeism.
How this dot point appears in the HSC
- Section I: identify the process or sub-process in a scenario (for example, a coaching session is development; a restructure is involuntary separation).
- Section II: explain one or two processes, or distinguish voluntary and involuntary separation (3 to 5 marks).
- Section III: recommend processes for a business with high turnover, poor performance or planned restructuring.
- Section IV: evaluate the effectiveness of HR processes using indicators such as turnover and absenteeism.
Exam-style questions
Questions in the style of NESA exam questions on this dot point, each with a worked answer. They are written by ExamExplained unless tagged "Past paper"; the year shows the paper a question is modelled on.
Original5 marksExplain the acquisition and development processes of human resource management.Show worked answer →
Marks guide (Original, modelled on NESA criteria). 5 marks: explains both processes, their main stages and how they contribute to business goals, with examples. 3-4 marks: describes both processes. 1-2 marks: some relevant information.
Acquisition is attracting and selecting suitable employees. It begins with workforce planning (identifying how many people and what skills are needed), then job analysis to write a job description and person specification. Recruitment attracts applicants, internally (promotion or transfer, which motivates staff and is cheaper) or externally (job boards, social media, agencies, referrals, which brings new skills and ideas). Selection chooses the best candidate through screening applications, interviews (ideally structured, asking every candidate the same questions), skills or psychometric tests, and reference and background checks, all without discrimination.
Development is improving employees' skills and performance. Induction introduces new staff to the business, their role, safety procedures and culture, reducing early turnover. Training builds job skills, on the job or off the job. Mentoring pairs an employee with an experienced colleague for guidance. Performance appraisal reviews performance against goals, gives feedback and identifies training needs.
Together, acquisition gets the right people and development makes them more productive and loyal, supporting business goals.
Original4 marksDistinguish between voluntary and involuntary separation, including the legal requirements for redundancy.Show worked answer →
Marks guide (Original, modelled on NESA criteria). 4 marks: clearly distinguishes the two with examples and accurately outlines redundancy requirements. 2-3 marks: describes both. 1 mark: some relevant information.
Voluntary separation is initiated by the employee: resignation (leaving for another job, study or personal reasons, giving the notice required by the award, agreement or contract) or retirement (leaving the workforce; employers cannot force retirement because of age).
Involuntary separation is initiated by the employer: retrenchment/redundancy (the job itself is no longer needed, for example because of restructuring or technology) or dismissal (termination because of the employee's conduct or performance).
Redundancy requirements. The redundancy must be genuine: the employer no longer needs the job done by anyone, it has complied with consultation obligations in the award or agreement, and it has considered redeployment within the business. Under the National Employment Standards, employers (other than small businesses with fewer than 15 employees) must give notice and pay redundancy pay based on continuous service, from 4 weeks' pay for 1 to 2 years' service up to 16 weeks for 9 to 10 years. Accrued annual leave (and long service leave, under state law) must also be paid out.
Original5 marksExplain how a business can manage change as part of the maintenance of its human resources.Show worked answer →
Marks guide (Original, modelled on NESA criteria). 5 marks: explains why employees resist change and specific HR strategies to manage it, with an example. 3-4 marks: describes change management strategies. 1-2 marks: some relevant information.
Model answer. Change such as new technology, restructuring or relocation creates uncertainty about jobs, skills and routines, so employees may resist it. HR manages change by: communicating the reasons, benefits and timetable early and honestly; consulting employees and their representatives (most awards and enterprise agreements require consultation on major workplace change); involving employees in planning so they own the change; providing training for new skills; offering support such as redeployment, counselling through employee assistance programs and fair redundancy arrangements; and introducing the change in stages. When Woolworths announced its new automated distribution centres at Moorebank in 2020, replacing older centres, it committed to offering 650 redeployment roles at the new sites and career transition support for affected workers. Managing change this way reduces disputes, keeps productivity up and protects the business's reputation as an employer.
Practise this
Sources & how we know this
- Business Studies Stage 6 Syllabus (2010) — NSW Education Standards Authority (2010)
- Redundancy pay and entitlements — Fair Work Ombudsman
- Notice of termination and redundancy pay fact sheet — Fair Work Ombudsman
- Overview of unfair dismissal — Fair Work Commission
- Woolworths to build automated distribution centres in NSW — iTnews (2020)
- Telstra to sack 2,800 workers as part of cost-cutting measures — ABC News (2024)
- Atlassian terminates 150 staff with pre-recorded video, AI customer contact solutions rolled out — Cyber Daily (2025)
- Federal Court orders Optus to pay penalty for unconscionable conduct — ACCC (2025)
- Business Studies HSC exam papers — NESA