The document provides an introduction package from YSource to Bruce Win for YSource's Human Resource Independency Solution Model. It includes an analysis of YSource's business, the manufacturing industry, and a preliminary analysis of Bruce Win's company, Metal By Design Pty Ltd. YSource has developed a framework called YSource to separate HR functions from a company and independently deliver full HR services while assuming corporate HR liability. The package contains information on YSource, an examination of Metal By Design, an industry breakdown of the manufacturing sector, and a business case for outsourcing HR functions to YSource.

1.
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
Bruce
Win
Unit
83,
111
Leitchs
Rd
Brendale,
QLD
,
4500
June
16,
2015
Dear
Bruce,
Please
find
attached
an
introduction
pack
to
the
YSource
Human
Resource
Independency
Solution
Model.
This
pack
is
an
analysis
of
our
business,
the
manufacturing
industry
and
a
preliminary
analysis
of
your
business.
We
have
developed
the
YSource
framework
to
achieve
the
separation
and
implement
the
delivery
the
full
spectrum
HR
internal
independency
department,
and
assume
corporate
HR
liability
from
a
company.
Kind
Regards,
Matthew
Bennett
Founder
of
YSource
&
New
Frontier
Operations
Group
P:
0478058068
E:
matthew.bennett@newfrontieroperations.com
Skype:
Bennetti321

2. 2
METAL
BY
DESIGN
PTY
LTD
ANALYSIS
PRESENTATION
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
Metal
By
Design
Pty
Ltd
Analysis
Presentation
Manufacturing
Industry
YSource
Introduction

3. 3
M
METAL
BY
DESIGN
PTY
LTD
ANALYSIS
PRESENTATION
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
Contents
1
YSOURCE
SUMMARY
4
1.1
WHO
IS
YSOURCE?
4
1.2
OUR
BUSINESS
5
2
COMPANY
EXAMINATION
SUMMARY
6
2.1
COMPANY
BACKGROUND
6
2.1.1
COMPANY
SUMMARISATION:
6
3
INDUSTRY
BREAKDOWN
7
3.1
AUSTRALIAN
GOVERNMENT,
AGENCIES,
UNIONS
AND
INDUSTRY
PARTNERS
7
3.1.1
GOVERNMENT
DEPARTMENTS
7
3.1.3
GOVERNMENT
AGENCIES
8
3.1.4
AUSTRALIAN
UNIONS
8
3.3
INTERNATIONAL
ORGANISATION
OF
STANDARD
(ISO)
9
3.3.1
CRITICAL
ARCHITECTURE
FOR
PROJECTS
&
DOCUMENTATION
9
3.3.2
SPECIFICATIONS
FOR
INDUSTRY
9
3.3.3
ISO
COLLECTIONS
FOR
INDUSTRY
9
3.4
INDUSTRY
HUMAN
RESOURCE
MANAGEMENT
SPENDING
10
3.4.1
PER
HIRE
HR
SPENDING
10
3.4.2
ADDITIONAL
HR
SPENDING
11
3.5
LEGAL
RISKS
REQUIREMENTS
AND
OBLIGATIONS
12
3.5.1
BREACH
OF
WARRANTY
12
3.5.2
NEGLIGENCE
12
3.5.3
WORKPLACE
HEALTH
AND
SAFETY
13
3.5.4
OTHER
LEGAL
REQUIREMENTS
14
4
BUSINESS
CASE
15
4.1
INTRODUCTION
15
4.2
NEW
FACE
OF
HR
FUNCTIONALITY
15
4.3
THE
STRUCTURE
17
4.4
MOVING
TO
OUTSOURCING
18
4.5
OUTSOURCING
BENEFITS
20
5
YSOURCE
INDUSTRY
RESPONSE
21
5.1
RESPONSE
PACKAGES
&
VALUE
ANALYSIS
21

4. 4
METAL
BY
DESIGN
PTY
LTD
ANALYSIS
PRESENTATION
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
1 YSource
Summary
1.1 Who
is
YSource?
YSource
is
Australia’s
first
HR
independency
solution
company
leading
the
HRM
industry,
bringing
together
businesses,
non-­‐for-­‐profit
organisations,
unions,
industry
partners,
education
institutes
and
government
agencies
to
help
deliver
enhanced
performance,
independency
and
greatly
reduced
human
liability.
Starting
from
a
one-­‐man
business
in
2012,
a
single
vision
shared
by
every
person
who
has
ever
had
a
dream
or
started
a
business
following
the
saying,
‘Dream,
Believe,
Create
–
Visions
Live
Forever’.
Due
to
increasing
ethical,
legislative
and
regulatory
requirements,
the
face
of
business
has
changed,
leading
us
to
create
an
organisation
where
we
help
get
companies
running
back
to
their
true
purpose.
Our
people
are
energetic
and
inspirational,
they
come
from
a
diverse
range
of
experienced
backgrounds,
including
arts,
business,
accounting,
hospitality,
tourism,
engineering,
finance,
marketing,
health
and
law.
From
small
business
to
corporate
working
side-­‐by-­‐side
with
entrepreneurs,
our
business
brings
a
unique
combination
of
knowledge
and
passion
to
address
new
challenges
and
opportunities
that
face
our
local
communities.
YSource
has
been
set
up
to
answer
the
ever-­‐changing
environment
of
business,
and
to
help
challenge,
develop
and
lead
the
next
generation
of
interdisciplinary
associates.
Thus
our
organisation
is
devoted
to
the
following
goals:
• Creation
of
human
resource
management
independency,
fairness
and
equality,
helping
to
increase
workplace
reputation.
• Ensure
that
innovation,
and
advancement
of
companies
so
they
can
progress
indifferent
from
economic
trends.
• Safeguarding
partner
companies
to
ensure
objectivity
and
fairness.
A
high
level
of
training
is
provided
to
our
associates
to
deliver
either
specialist
or
generalist
services
from
small
to
corporate
organisations.
• Ensure
that
we
understand
our
client’s
industry
and
their
workplaces
to
deliver
cost
efficient
and
highly
reduced
liability
within
their
structure

5. 5
M
METAL
BY
DESIGN
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LTD
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PRESENTATION
Confidential
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Group
D-­‐MI-­‐01
ACN:
163 959 797
1.2 Our
Business
YSource
is
Australia’s
first
hybrid
HRM
internal
independency
firm,
which
delivers
the
best
of
HR
consulting
and
outsourcing.
This
is
achieved
through
the
separation
and
implementation
of
an
organisation’s
human
resources
department,
bringing
it
across
into
the
YSource
structure,
to
deliver
the
full
spectrum
internal
department.
Furthermore
we
are
assuming
corporate
HR
liability
from
your
company.
The
unique
benefits
that
our
service
offers
are:
• Independency
within
organisations
allowing
us
to
train
our
people
to
a
higher
standard,
increase
autonomy
and
decision
making.
• Assurance
that
efficiency
is
maximised
to
deliver
an
organisation’s
human
resource
needs.
• Separation
of
Business,
Union,
Government
and
Industry
Partner
to
ensure
independency
from
influence,
creating
rapid
and
enhanced
implementation
of
legislative
and
regulatory
changes
across
all
platforms
of
business.
• YSource
HRM
staff
are
rotated
among
family
of
businesses
to
enhance
skills,
industry
/
cross
industry
understanding.
As
seen
below
our
business
takes
the
best
parts
of
what
human
resource
management
is
traditionally.
Becoming
a
business
partner,
combining
with
a
company,
we
will
take
responsibility
for
the
success
of
your
company’s
HRM
processes.
Functional
Area
Traditional
Internal
HR
Department
Traditional
HR
consulting
firm
(e.g.
Liquid
HR)
YSource
Nature
of
HR
program
and
function
• Responsive
• Operational
• Internal
• Proactive
• Strategic
• Societal
• Proactive
• Operational
/
strategic
• Internal
• Completely
Independent
Creation
of
HR
strategy
and
policy
• HR
function
has
full
responsibility
• HR
function
and
line
management
share
responsibility
• HR
function
with
full
process
responsibility,
shared
onto
employees
and
management
Organisation
of
the
HR
function
• Employee
advocate
• Functional
structure
• Reporting
to
staff
• Business
Partner
• Flexible
structure
• Reporting
to
line
• Process
Owner
• Flexible
Structure
• Reporting
to
all
committee
members
Profile
of
the
HR
Professional
• Career
in
HR
• Specialist
• Limited
financial
skills
• Current
focus
• Monolingual
• National
perspective
• Rotation
• Generalist
• Financial
expertise
• Focus
on
future
• Multilingual
• Global
perspective
• Rotational
• Specialist
• Financial
Skills
• Current
HR
Function
with
future
Strategic
Focus
• Bilingual
• Company
Specific

6. 6
METAL
BY
DESIGN
PTY
LTD
ANALYSIS
PRESENTATION
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
2 Company
Examination
Summary
2.1 Company
Background
Legal
Entity
Name:
Advance
Metal
Concepts
Pty
Ltd
ABN:
86
099
815
291
ACN:
099
815
291
Trading
Name:
Metal
by
Design
Establsihed
Date:
March
22,
2002
Other
Trading
Names:
Office
Address
Unit
83,
111
Leitchs
Rd
Brendale,
QLD
,
4500
Business
Phone:
07
3881
2092
Staff
Nuumbers:
Email
Address
metalbydesign@live.com.au
Website
www.metalbydesign.com.au
Owner
/
Partners
1.
Bruce
Win
2.
Business
Industry
Metal
Fabrication
2.1.1 Company
Summarisation:
Metal
by
Design
is
a
specialist
in
quality
unique
fabrication
and
all
aspects
of
mild
steel,
stainless
steel,
aluminum,
copper
as
well
as
brass.
A
company
founded
on
the
extra
mile
of
achievement
to
deliver
stunning
results
for
customers,
no
matter
what
the
requirement.
Metal
by
design
is
a
family
owned
and
operated
business
with
the
goal
of
making
it
as
easy
as
possible
for
our
customers
to
be
creative
by
tailoring
products
to
suit
their
individual
needs.
We
pride
ourselves
on
providing
quality
custom
crafted
metal
products
for
both
residential
and
commercial
clients.
The
latest
projects
and
services
that
are
currently
being
delivered
are:
Services
Latest
Projects
Stainless
Steel
Kitchens
Royal
Pines
Golf
Resort
–
Upgrade
Shop
Fittings
Custom
Boardroom
table
frame
Handrails
Eastern
Busway
Custom
Furniture
Heat
boxes
–
concrete
testing

7. 7
M
METAL
BY
DESIGN
PTY
LTD
ANALYSIS
PRESENTATION
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
3 Industry
Breakdown
3.1 Australian
Government,
Agencies,
Unions
and
Industry
Partners
The
manufacturing
industry
provides
unique
challenges
for
the
HRM
Process.
YSource
will
symbiotically
work
with
government
departments,
agencies,
unions
and
industry
partners.
Ensuring
that
all
current
regulatory,
legislative
and
industry
standards
are
maintained
without
disruption
to
business
activities
within
your
organisation.
YSource
will
provide
a
seamless
experience
in
HRM,
avoiding
lengthy
and
costly
change
management
processes.
The
departments
that
would
be
consulted
on
an
ongoing
basis
by
the
YSource
committee
members
are,
but
not
limited
to
the
following:
3.1.1 Government
Departments
• Department
of
Education
and
Training
o Consultation
this
department
would
be
to
ensure
that
all
accreditation,
training,
workplace
standards
are
continually
updated
to
ensure
employees
are
aware
of
the
latest
industry
knowledge.
This
department
would
be
consulted
further
to
ensure
that
training
material
and
knowledge
management
is
maintained
at
national
education
standards.
• Department
of
Employment
o Consultation
with
this
department
is
to
ensure
all
employment
legislation,
regulations
and
standards
are
being
maintained
within
the
workplace
including
remuneration,
training,
conduct,
selection
etc.
• Department
of
Health
o Consultation
with
this
department
is
to
ensure
that
health
standards
within
the
workplace
are
met,
implemented
and
followed
by
all
levels
of
an
organisation.

8. 8
METAL
BY
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PTY
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Confidential
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New
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D-­‐MI-­‐01
ACN:
163 959 797
3.1.3 Government
Agencies
• Administrative
Appeals
Tribunal
• Auditing
and
Assurance
Standards
Board
• Austrade
(Australian
Trade
Commission)
• Australian
Accounting
Standards
Board
• Australian
Competition
and
Consumer
Commission
• Australian
Competition
Tribunal
• Australian
Curriculum,
Assessment
and
Reporting
Authority
• Australian
Human
Rights
Commission
• Australian
Institute
of
Health
and
Welfare
• Australian
Law
Reform
Commission
• Australian
National
Audit
Office
• Australian
Radiation
Protection
and
Nuclear
Safety
Agency
• Australian
Research
Council
• Australian
Securities
and
Investments
Commission
• Australian
Signals
Directorate
• Australian
Skills
Quality
Authority
• Australian
Strategic
Policy
Institute
• Australian
Taxation
Office
• Board
of
Taxation
• Commonwealth
Grants
Commission
• Commonwealth
Superannuation
Corporation
• ComSuper
• CSIRO
–
Commonwealth
Scientific
and
Industrial
Research
Organisation
• Fair
Work
Commission
• Fair
Work
Ombudsman
• National
Competition
Council
• National
Disability
Insurance
Scheme
• National
E-­‐Health
Transition
Authority
• Office
for
Learning
and
Teaching
• Office
of
National
Assessments
• Office
of
the
Federal
Safety
Commissioner
• Productivity
Commission
• Professional
Services
Review
(PSR)
• Professional
Standards
Board
for
Patent
and
Trade
Mark
Attorneys
• Questacon
–
The
National
Science
and
Technology
Centre
• Regional
Development
Australia
• Remuneration
Tribunal
• Rural
Industries
Research
and
Development
Corporation
• Safe
Work
Australia
• Safety,
Rehabilitation
and
Compensation
Commission
• Superannuation
Complaints
Tribunal
• Tax
Practitioners
Board
• Telecommunications
Universal
Service
Management
Agency
• Tertiary
Education
Quality
and
Standards
Agency
• Workplace
Gender
Equality
Agency
3.1.4 Australian
Unions
• Australian
Council
of
Trade
Unions
• National
Union
of
Workers
• Australian
Workers
Union
• Australian
Manufacturing
Workers
Union
• Construction
Forestry
Mining
and
Energy
Union
• Australian
Institute
of
Marine
and
Power
Engineers
• Australian
Services
Union
• Professionals
Australia

9. 9
M
METAL
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DESIGN
PTY
LTD
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Confidential
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New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797
3.3 International
Organisation
of
Standard
(ISO)
Preliminary
industry
research
has
allowed
YSource
to
identify
international
standards
for
the
manufacturing
industry,
of
which
encompasses
your
company.
These
standards
are
explicit
guidelines
when
maintaining
procedural
training
of
employees
and
documentation.
When
working
onsite
and
within,
partner
sites
are
as
follows:
3.3.1 Critical
architecture
for
Projects
&
Documentation
• ISO
9001
Quality
Management
• ISO
14001
Environmental
Management
• ISO
27001
Information
Security
Systems
• ISO
31000
Risk
Management
3.3.2 Specifications
for
Industry
• ISO
19296
Mining
and
earth
moving
machinery
–
Mobile
Machines
• ISO
14721
Space
data
and
information
transfer
systems
• ISO
30101
Information
Technology
-­‐
Sensor
Networks:
Sensor
network
and
its
interfaces
for
smart
grid
system
• ISO
14048
Environment
Management
–
Life
cycle
assessment
• ISO
26000
Guidance
on
social
responsibility
• ISO
17755
Fire
Safety
–
overview
of
national
fire
statistics
practices
• ISO
18001
Information
Technology
–
Radio
frequency
identification
for
item
management
• ISO
26551
Software
and
systems
engineering
–
Tools
and
methods
for
product
line
requirements
engineering
• ISO
9241-­‐910
Ergonomics
of
human
system
interactions
3.3.3 ISO
Collections
for
Industry
• Collections:
Materials
for
the
production
of
aliminimum
• Collection:
Cleanrooms
and
associated
controlled
environments

10. 10
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3.4 Industry
Human
Resource
Management
Spending
Current
HR
spending
is
not
available.
YSource
would
work
on
centralising
all
HR
programs
and
practices
and
liaise
with
different
departments
outside
of
YSource.
For
example
communicating
with
government
departments
such
as
workplace
health
and
safety
and
“fit
to
work”.
YSource
is
to
be
viewed
as
a
centralised
matrix
that
deals
with
everything
involved
in
human
resource
management.
HR
costing
within
any
industry
can
add
up
very
quickly,
not
just
in
dollars
but
also
in
time
lost,
reputation,
and
employee
moral.
In
some
cases
as
a
direct
result,
contract
or
partnership
loss.
Below
we
have
broken
down
approximate
costs
for
human
resource
management
within
your
industry
as
well
as
generic
costs,
which
are
relevant
across
all
industry
sectors:
3.4.1 Per
Hire
HR
Spending
Description
Time
Cost
“TRADITIONAL
HR
APPROACH”
*Cost
per
hire
Agency
Recruitment
&
Selection
*10
–
16
percent
of
an
average
employee
wage
($55,000)
2
weeks
to
6
months
depending
on
position
$5,500
-­‐
$8,800
Advertising
Fees
*Regular
Seek
Advertisement
1
month
$280
Travel
Expenses
Varies
?
Relocation
Expenses
Varies
?
Internal
recruiter
costs
*Average
HR
Internal
(50K
per
year)
2
weeks
to
6
months
depending
on
position
$2,000
–
$24,000
Training
&
Up
skilling
*Employee
Wage
+
Course
+
Trainer
etc.
1
week
to
(X)
months
$1,000
–
10,000+
Employee
Record
1
Hour
$27
Employee
Medical
&
Fit
for
Work
*Basic
to
Rail
Safety
Requirements
2
hours
to
1
Day
$200
-­‐
$400
Alcohol
and
Drug
Testing
25
minutes
$25
Employee
Induction
*HR
+
Employee
5
Hours
to
1
Day
$270
-­‐
$600
Approximate
Total
Minimum
–
$7,500
*Individual
HR
Advisor
Cost
for
Industry
Basic
$52,000

11. 11
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3.4.2 Additional
HR
Spending
Description
Time
Cost
“TRADITIONAL
HR
APPROACH”
*Other
estimative
costs
for
HR
spending
within
an
organisation
Employee
Medical
&
Fitness
Testing
2
hours
to
1
Day
$200
-­‐
$400
Alcohol
and
Drug
25
minutes
$25
Workplace
Investigation
Example
Workplace
Bullying
depends
on
investigation
type
$17,000
-­‐
$24,000
Performance
Management
Meeting
(1hr);
with
potential
ongoing
consultation
and
monitoring
(total
time
24hrs
+)
$27
-­‐
$648
+
Consultation
Meetings
*Government,
Union,
Business,
Industry
Partners
Depending
on
Consultation
(Workplace
agreements
min
6
weeks)
Sum
of
all
parties
attending
Human
Resource
Documentation
4
Days
per
document,
not
including
consultation
$864
Procedural
Documentation
2
Days
per
procedure,
not
including
consultation
$432
Training
Development
&
documentation
3
-­‐
14
Days
per
procedure
not
including
consultation
$648
–
$3,024
People
&
Culture
(Development
and
management)
Progressive
-­‐
Employee
Career
&
Succession
Planning
Half
a
day
per
employee
$108
Work-­‐Life-­‐Health
Balance
Planning
Per
employee
depending
on
business,
industry
&
requirements
$50
–
$250
Exit
Interviews
Not
just
interview;
but
the
loss
of
human
asset
$100
-­‐
$40,000
+
Return
to
Work
Per
employee
depending
on
business,
industry
&
management
requirements
$5,000
–
$20,000
Workplace
Health
and
Safety
*Does
not
include
total
revenue
offset
loss
(Safety
Council)
Average
cost
of
workplace
injury
direct
cost
(38,000)
+
Indirect
cost
(Direct*4)
$190,000
Compliance
and
Quality
Management
Audit;
then
update
and
management
per
month
per
process
$324
-­‐
$567
Change
Management
Dependent
on
size
of
change
>$20,000
Corporate
Team
Building
Per
Session
(10
people)
$300
–
$500
In
House
Training
Trainer
*Separate
to
Development
Example
1
Day
Hire
*40
dollars
per
hr.
average
&
depends
on
training
type
Between
250
to
400
dollars

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3.5 Legal
Risks
Requirements
and
Obligations
Analysis
of
the
manufacturing
industry
has
uncovered
human
resource
legal
risks
and
costings.
By
leaving
these
unchecked
your
company
may
incur
both
heavy
industry
penalty,
damaged
reputation
and
possible
civil
or
criminal
action
by
either
public
or
employee.
The
main
types
of
liability,
which
may
be
incurred
around
the
product,
are:
3.5.1 Breach
of
Warranty
Warranty-­‐based
product
liability
claims
usually
focus
on
one
of
three
types:
(1)
breach
of
an
express
warranty,
(2)
breach
of
an
implied
warranty
of
merchantability,
and
(3)
breach
of
an
implied
warranty
of
fitness
for
a
particular
purpose.
3.5.2 Negligence
Manufacture
Negligence
Alleging
the
manufacturer’s
improper
assembly,
materials,
or
packaging
may
encounter
obstacles
because
the
evidence
needed
to
prove
a
breach
of
duty
is
under
the
defendant’s
control.
However,
modern
discovery
rules
and
the
doc-­‐
trine
of
resi
psa
loquitur
may
help
plaintiffs
establish
a
breach
in
such
situations
(taken
by
US
law).
Inspection
Negligence
Manufacturers
have
a
duty
to
inspect
their
products
for
defects
that
create
a
reasonably
foreseeable
risk
of
harm,
if
such
an
inspection
would
be
practicable
and
effective.
Negligent
Failure
to
Warn
Sellers
and
manufacturers
often
have
a
duty
to
give
an
appropriate
warning
when
their
products
pose
a
reasonably
foreseeable
risk
of
harm.
In
determining
whether
there
was
a
duty
to
warn
and
whether
the
defendant’s
warning
was
adequate,
however,
courts
often
consider
other
factors
besides
the
reasonable
foreseeability
of
the
risk.
Negligent
Design
Manufacturers
have
a
duty
to
design
their
products
so
as
to
avoid
reasonably
foreseeable
risks
of
harm.
As
in
failure
to
warn
cases,
however,
design
defect
cases
frequently
involve
other
factors
such
as
the
magnitude
or
severity
of
the
foreseeable
harm.
Three
other
factors
are
industry
practices
at
the
time
the
product
was
manufactured,
the
state
of
existing
scientific
and
technical
knowledge
at
that
time,
and
the
product’s
compliance
or
noncompliance
with
government
safety
regulations.

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Strict
Liability
This
type
of
liability
focuses
on
the
behavior
of
the
manufacturer
(as
in
negligence),
strict
liability
claims
focus
on
the
product
itself.
Under
strict
liability,
the
manufacturer
is
liable
if
the
product
is
defective,
even
if
the
manufacturer
was
not
negligent
in
making
that
product
defective.
3.5.3 Workplace
Health
and
Safety
Under
the
Workplace
Health
and
Safety
Standards
and
legislation
act
there
are
a
number
of
obligations
that
must
be
met
by
persons
conducting
and
undertaking
business
practices.
These
parties
include
business
owners,
officers,
workers
and
other
parties.
Such
obligations
are
subject
to
the
compliance,
enforcement
and
penalty
provisions
of
the
WHS
Act.
Should
compliance
under
this
act
not
be
met
government
bodies
are
able
to
enforce
depending
on
the
type
of
non-­‐compliance
within
the
workplace,
the
following:
• Improvement
notices.
A
statutory
notice
issued
by
the
inspector
requires
a
person
to
carry
out
certain
actions
within
a
certain
time.
An
inspector
issues
these
when
they
believe
someone
is
breaching,
or
has
breached,
a
provision
of
the
WHS
Act
or
Regulations.
• Prohibition
notices.
A
notice
that
prohibits
an
activity
or
an
activity
being
carried
out
in
a
particular
way
that
an
inspector
believes
involves,
or
will
involve,
a
serious
and
immediate
threat
to
the
health
and
safety
of
any
person.
A
prohibition
notice
stops
an
activity
from
happening
or
the
use
of
an
item
and
stays
in
place
until
an
inspector
is
satisfied
adequate
action
has
been
taken
to
remove
the
threat.
• Revoking,
suspending
or
cancelling
authorisations.
Authorises
are
given
to
people
and
organisations
to
undertake
some
forms
of
work,
such
as
operating
a
major
hazard
facility.
For
non-­‐compliance
it
may
be
decided
that
your
authorisation
is
to
be
revoked,
suspend
or
canceled
in
order
to
deal
with
conduct
or
practices
identified
during
interventions.
• Letters
of
caution.
A
warning
to
an
entity
or
a
duty
holder
that
there
has
been
a
detected
breach
of
the
WHS
legislation
or
other
responsibility
that
in
view,
has
reasonable
prospects
of
successfully
proving
in
court.
• Work
health
and
safety
undertakings.
An
undertaking
from
a
duty
holder
to
fulfill
an
obligation
under
the
WHS
Act.
A
government
agency
such
as
Comcare
can
accept
undertakings
in
lieu
of
court
proceedings
(except
for
the
most
serious,
category
one
offence/s).
• Prosecution.
Court
based
action
for
the
most
serious
alleged
breaches
of
legislation.
Prosecution
Policy
of
the
Commonwealth
in
deciding
whether
to
pursue
prosecution
action.

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3.5.4 Other
Legal
Requirements
Besides
the
above
legal
risks
and
obligations
an
employ
has
a
number
of
other
legal
responsibilities
when
undertaking
business
is
as
follows:
• Pay
Rate
• Leave
Obligations
• Types
of
Employment
Arrangements
• Employment
Records
• Superannuation
• Equal
Opportunities
• Return
to
Work
• Workplace
Dispute
Resolution
• Hours
of
Work
• Employment
Process
• Termination
and
Dismissal
• Descrimination
• Taxation
• Insurance
• Worker
Compensation
• Right
to
Work

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4 Business
Case
4.1 Introduction
Organisations
today
are
faced
with
constant
external
pressures.
Confronted
with
stiffening
competition
due
to
globalisation
and
international
trade,
companies
must
become
more
efficient
and
productive
if
they
are
to
remain
serious
contenders
in
the
ever-­‐expanding
world
stage.
Historically,
organizations
have
competed
through
technological
innovations,
the
availability
of
capital,
and
access
to
markets,
but
organizations
must
now
use
their
people
to
achieve
a
competitive
edge
and
take
a
serious
look
at
how
their
HR
policies
and
practices
are
contributing
to
the
total
business
strategy,
since
the
winning
organizations
of
the
future
will
be
those
that
can
best
attract,
retain,
and
motivate
employees
with
the
right
skills
(Lawler
1992,
Benimadhu
1989).
Human
Resource
Management
today
is
required
to
be
multi
faceted
playing
a
key
role
in
guarding
and
delivery
of
strategic
decision-­‐making.
Most
HRM
departments,
this
new
role
requires
a
change
in
mind-­‐set
and
in
the
way
they
do
business;
managers
must
find
ways
to
cut
costs
and
increase
service
delivery.
This
examination
of
how
HR
departments
are
coping
with
the
tumultuous
environmental
changes.
It
focuses
on
the
role
of
outsourcing
within
an
HR
context
and
the
role
that
outsourcing
might
play
in
dealing
with
the
new
challenges.
The
data
gathered
filtered
within
a
listing
of
the
organisations,
the
industries
in
which
they
operate,
and
the
total
number
of
employees.
Although
the
organisations
participating
in
this
study
do
not
represent
a
random
sample,
it
is
believed
that,
taken
together,
they
provide
a
snapshot
of
how
organisations
and
their
HR
functions
are
changing
to
meet
the
new
business
and
economic
pressures.
Organisation
Industry
Approx.
Workforce
IBM
Information
Technology
110,
000
Dofasco
Steel
7,
000
One
Steel
Steel
11,
000
John
Holland
Group
Construction
5,
000
–
10,000
Queensland
Rail
Transportation
5,
000
–
10,000
Warner
Lambert
Packaging
Goods
1,
400
Woolworths
Retail
50,
000
4.2 New
Face
of
HR
Functionality
Smaller,
leaner
businesses
that
emerge
count
on
high
productivity
from
fewer
people,
human
resources
management
is
at
the
forefront
of
organizational
change
(Coates
&
Jarratt
,
1994).
Once
believed
to
be
strictly
an
administrative
function
low
on
management's
priority
list,
the
human
resource
function
is
shedding
its
'administrative
stigma'
and
becoming
involved
in
top
management
decisions.
HRM
is
now
required
to
provide
a

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business
case
for
new
policies
and
practices
and
is
increasingly
being
forced
to
make
the
choice
between
becoming
bottom
line-­‐oriented
and
being
completely
eliminated
(Benimadhu,
1989)
within
many
businesses.
In
a
study
conducted
by
Lawler
(1992)
found
that
when
organisations
were
asked
to
identify
strategic
issue
which
were
the
responsibility
of
the
human
resource
management
department
the
most
common
answer
was
‘none’
(21
percent
of
the
cases).
However,
due
to
external
pressures
may
force
organizations
to
change
quickly.
Although
the
human
resource
management
department
will
still
need
to
deliver
technical
HR
services
and
perform
some
traditional
'Police’
work,
it
will
have
to
do
so
with
a
strategic
mindset,
ensuring
that
policies
and
practices
are
driven
by
the
business
strategy
and
business
needs,
and
that
functions
such
as
planning,
staffing,
development,
performance
management,
compliance,
OH&S,
benefit
management
and
change
management
attention,
because
they
help
to
generate,
reinforce,
and
sustain
organisational
competencies
(Ulrich
1994).
Thus,
human
resource
management
can
no
longer
be
a
separate
function
with
divergent
activities
(Dyer
1993).
To
achieve
its
position
as
the
right
hand
of
strategy
implementation,
HRM
professionals
must
be
able
to
act
as
consultants
and
partners
to
top
and
line
management
(Kesler,
1995).
Human
resource
management
professionals
must
know
how
to
evaluate
the
business
impact
of
policies
and
communicate
all
financial
benefits
and
risks.
They
will
also
need
to
be
effective
agents
of
change
if
they
are
to
provide
guidance
to
top
level
right
through
to
line
managers
in
dealing
with
pressures
such
as
organisational
downsizing,
restructuring,
and
implementing
new
technology,
legislative
requirements
or
new
operational
procedures.
In
addition,
since
human
resources
management
is
focused
on
increasing
employee
productivity,
fostering
and
developing
organizational
effectiveness
skills
within
the
function
will
be
critical
(Benimadhu,
1989).
Essential
competencies
required
in
the
new
era
of
human
resource
management
can
be
aligned
below.
Performance
Capabilities
HR
Technical
Know
How
Business
Know
How
Catalytic
influence
Diagnostic
and
fact
finding
analysis
Innovative
process
and
structure
Standard
Assurance
Administrative
Services
Problem
Solving
Organisational
design
Talent
Management
Employee
Involvement
Training
Development
&
Education
Reward
and
Recognition
Well-­‐being
and
morale
Communications
Competitive
strategy
Macro
and
micro
economics
World
class
operations
Marketing
and
Sales
Industry
knowledge

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4.3 The
Structure
The
strategic
alignment
between
line
management
and
human
resources
in
an
organisation
is
required;
integrating
this
function
within
line
management
is
required
more
than
just
linking
HR
to
the
business
strategy.
Human
resource
processes
must
be
integrated
with
management
processes,
HR
staff
functions
with
line
management,
and
HR
measures
with
management
measures
thus
permitting
the
organisation
to
quantify
the
business
impact
of
HR
practices
(Walker
1994).
According
to
Walker
(1994),
the
dilemma
between
centralization
and
decentralization
of
the
HR
function
is
at
the
centre
of
many
HR
decisions.
Overall,
operations
have
been
decentralised
and
a
lot
of
power
has
shifted
from
corporate
headquarters
to
business
units.
In
the
future,
the
number
of
HR
staff
at
headquarters
will
diminish
and
more
staff
will
be
assigned
to
support
the
business
units.
But
at
the
same
time,
to
avoid
duplication
there
is
a
movement
towards
centralizing
certain
activities
that
serve
all
areas
of
the
business
(Benimadhu
1989).
The
important
question
is
where
specific
functions
should
be
performed
to
best
support
the
organization's
needs.
Walker
establishes
that
HR]
unbundling
is
intended
to
integrate
the
HR
function
into
the
business
in
order
to
reduce
overhead
expense,
eliminate
duplication,
and
focus
time
and
resources
on
value-­‐added
activities.
Walker
points
out
that
many
organizations
keep
all
the
services
in
the
right-­‐hand
column
of.
In
the
HR
department,
however,
they
are
also
more
than
willing
to
contract
out
services
for
organizational
change,
quality
improvement
initiatives,
and
management
development.
But
if
change
management
and
strategic
orientation
are
to
play
a
critical
role
in
the
future
of
HR,
it
would
be
logical
to
develop
and
retain
these
competencies
inside
the
HR
department
while
contracting
out
non-­‐core
functions.
However,
Perrin
(1992)
explains
that
with
line
management
the
responsibility
for
certain
activities
should
not
be
equal.
Furthermore,
it
is
believed
that
HR
should
report
to
the
CEO
if
it
is
to
play
a
strategic
role
within
the
organization;
the
CEO
must
recognize
HR
as
a
value-­‐added
function,
and
the
link
between
the
CEO
and
the
head
of
HR
must
be
perceived
as
real
by
the
employees
(Benimadhu
1989).
A
Towers
Perrin
study
found
that
HR
functions
reported
to
the
CEO
in
74
percent
of
the
organizations
surveyed.
Eighty-­‐eight
percent
of
respondents
preferred
this
reporting
structure
for
the
future
(1992,
44).

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4.4 Moving
to
Outsourcing
Although
the
HR
function
will
be
increasingly
integrated
within
the
overall
organizational
structure,
HR
will
still
be
responsible
for
many
nonstrategic
activities.
A
recent
study
by
the
Bureau
of
National
Affairs
(1994)
indicated
that
in
85
percent
of
organizations
surveyed,
HR
departments
were
responsible
for
outplacement
counselling,
insurance
benefits,
cafeteria
management,
employment
equity
legislation,
HR
record
keeping
and
employee
assistance
programs
(EAP),
many
of
which
can
be
classified
as
nonstrategic.
In
addition,
there
may
be
activities
that
the
organization
has
neither
the
resources
nor
the
capital
to
perform
in-­‐house.
Thus,
transferring
these
activities
to
external
vendors
may
be
a
strategic
option
for
the
HR
function.
Although
some
organizations
are
outsourcing
HR
functions
such
as
recruitment,
benefits-­‐plan
design,
and
retirement
services,
the
most
commonly
outsourced
functions
are
temporary
placement,
employee
assistance
programs,
and
relocation
services
(Labbs,
1993).
As
the
number
of
government
regulations
increase,
companies
that
currently
supply
HR
services
are
expecting
a
rise
in
demand
because
many
organizations
no
longer
have
the
expertise
to
handle
all
the
necessary
services
internally
in
a
cost-­‐effective
manner.
Loh
and
Venkatraman
(1992)
found
two
key
determinants
pushing
organizations
to
outsource.
First,
the
business-­‐
cost-­‐structure
plays
a
critical
role.
If
costs
are
high,
the
organization
may
be
more
inclined
to
reevaluate
the
overall
expenditure
of
the
HR
department
and
improve
efficiency
and
productivity.
Second,
organizations
with
low
economic
returns
on
investments
may
be
more
inclined
to
outsource
key
functions.
In
these
organizations,
senior
executives
are
under
increased
pressure
to
prove
that
they
provide
an
essential,
value-­‐added
service.
This
is
particularly
true
of
staff
functions
such
as
HR,
which
have
been
under
extreme
pressure
to
cut
costs
and
increase
efficiency.
In
most
organizations,
HR
is
still
considered
to
be
a
cost
centre,
and
its
ability
to
contribute
in
a
direct
manner
to
the
bottom
line
is
limited
(Benimadhu
1989).
Functional
Area
Extremely
Important
(%)
Important
(%)
Not
Very
Important
(%)
Human
Resource
Management
37
46
18
Research
and
Development
58
24
15
Manufacturing
62
28
8
Marketing
73
23
2
Strong
Agreement
of
the
Following
Statements
(%)
Obtaining
and
preserving
the
necessary
human
resources
is
much
more
important
than
obtaining
and
preserving
the
necessary
financial
resources
5.2

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Obtaining
and
preserving
the
necessary
human
resources
is
much
more
important
than
obtaining
and
preserving
the
necessary
technology
resources
7.0
Obtaining
and
preserving
the
necessary
human
resources
is
much
more
important
than
obtaining
and
preserving
the
necessary
marketing
resources
8.0
**Martell
and
Carroll,
1995
Functional
Area
Functional
Business
Partner
Nature
of
HR
program
and
function
Responsive
Operational
Internal
Proactive
Strategic
Societal
Creation
of
HR
strategy
and
policy
HR
function
has
full
responsibility
HR
function
and
line
management
share
responsibility
Organisation
of
the
HR
function
Employee
advocate
Functional
structure
Reporting
to
staff
Business
Partner
Flexible
structure
Reporting
to
line
Profile
of
the
HR
Professional
Career
in
HR
Specialist
Limited
financial
skills
Current
focus
Monolingual
National
perspective
Rotation
Generalist
Financial
expertise
Focus
on
future
Multilingual
Global
perspective

20. 20
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4.5 Outsourcing
Benefits
Outsourcing
allows
an
organization
to
focus
on
a
set
of
‘core
competencies
or
the
core
business,’
which
are
the
critical
or
fundamental
functions
that
provide
a
competitive
edge.
Trying
to
establish
what
is
‘core’
within
an
organization
is
a
difficult
task,
not
easily
understood
by
many
senior
executives.
Quinn
and
Hilmer
(1993)
recommend
the
following
criteria:
• Core
competencies
should
focus
on
skill
sets,
not
product
knowledge,
since
products
are
easily
duplicated
or
outdated
but
skills
can
be
transferred
across
the
organisation
and
infiltrate
all
functional
areas.
• The
skill
sets
identified
should
be
flexible
and
able
to
adapt
to
changing
business
requirements.
It
is
crucial
that
the
core
skills
continue
to
be
valued
by
customers
and
provide
the
organization
with
a
competitive
edge
over
the
long
run.
• Organisations
should
limit
the
number
of
core
competencies.
Most
organizations
value
two
or
three
essential
activities.
Since
each
skill
is
at
the
centre
of
the
organization’s
competitive
advantage,
the
investment
in
these
skills
should
not
be
diluted.
• The
skills
should
provide
a
unique
source
of
leverage
in
the
organization's
value
chain
and
fill
a
gap
in
the
marketplace,
where
intellectual
resources
can
provide
the
organization
with
specific
advantages.
• Organizations
should
identify
areas
where
they
can
dominate
the
market.
• Finally,
core
competencies
should
be
embedded
in
an
organization's
systems
to
ensure
that
they
outlive
specific
individuals.
From
these
recommendations
it
follows
that
activities
with
little
strategic
focus
or
activities
for
which
the
organization
has
little
in-­‐house
capability
are
the
ones
that
could
be
contracted
out.
“Outsourcing
is
not
only
about
obtaining
a
partner
to
help
set
a
strategy,
the
truth
is
that
your
partner
in
business
should
be
independent
helping
your
company
achieve
the
end
result
helping
to
enhance
your
company’s
reputation
while
helping
to
reduce
liability
and
enhancing
human
resource
safety.”

21. 21
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5 YSource
Industry
Response
5.1 Response
Packages
&
Value
Analysis
*Each
package
is
based
upon
single
HRM
advisor
/
employee
required
for
a
company
custom
quotes
will
be
advised
through
consultation
method.
Each
package
has
been
established
to
safeguard
maximum
efficiency
and
monetary
value,
by
maximising
the
handling
of
each
HR
advisor
while
minimising
all
human
resource
management
processes
and
elements
in
your
organisational
structure.
The
YSource
process
for
establishing
proper
practice
is
to
first
conduct
a
one
time
full
audit
of
your
organisation’s
processes,
workplace
environment,
employee
training
and
development
requirements.
YSource
will
meet
with
each
staffing
level
to
be
able
to
understand
the
depth
and
breadth
of
your
full
organisation.
Normally
this
will
take
2
weeks
and
is
also
the
transition
phase.
Liability
will
be
directly
established
from
your
firm
as
consultation
for
each
process
is
taken
on,
immediately
handling
the
outsourcing
transition
and
transference.
This
discovery
phase
will
uncover
any
issues
that
are
currently
faced
within
the
workplace
environment.
Coupled
with
this
it
will
focus
on
integration
of
your
current
HR
department
into
the
Ysource
team.
Upskilling
these
employees
is
pertinent
to
the
overall
success
of
the
HRM
independency
program
we
are
offering.
We
then
consult
with
management
about
the
recommendations
and
deliver
a
phased
plan
on
top
of
normal
working
priorities.
Each
package
is
per
HR
advisor
the
basic
package
is
10,000
per
HR
advisor
per
month.
The
package
will
be
in
direct
correlation
to
how
many
HR
Advisors
required.
Upon
further
consultation
if
Metal
By
Design
requires
premium
or
corporate
packages
these
will
be
done
under
negotiation
due
to
the
specialty
requirements
around
them.
Specialty
programs
can
be
addressed
individually
or
can
be
maintained
continuously.
An
example
of
this
could
be
payroll;
a
specialist
payroll
accountant
hired
by
Ysource
for
superannuation,
employee
remuneration
and
taxation.
Each
specialty
requirement
will
be
done
on
a
case
by
case
basis
to
ensure
maximum
expenditure
and
efficiency.
Below
is
an
outline
of
individual
products
and
package
levels.

22. 22
METAL
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DESIGN
PTY
LTD
ANALYSIS
PRESENTATION
Confidential
©
New
Frontier
Operations
Group
D-­‐MI-­‐01
ACN:
163 959 797