1 IntroductionRio Tinto’s vision is for strong regional economies in which local communities and Rio Tinto businesses work together to build on and benefit from the opportunities generated through our mining operations.The Rio Tinto is a leading mining group headquartered in UK with owning to branch office in Australian. The group expands their business on the Australia and recruits an amount of local residential as the employee. As most of the Rio Tinto work in Australia is located in remote area, it is important the master the demography and culture characteristics. Moreover, the basic condition should be learned to implement a better employee policy including the population, the education level of resident and etc. In this case study, a comprehensive demonstration of employment policy is explored, which can bring benefit for the company as well as the local community.Even though there are a lot of difficulties in remote area for Rio Tinto, the excellent employment policy has contributed to success, which arouses the interest in how the human resource management is applied in the actual situation, how the policy works and the experience that can be learned from the case. In the report, the author firstly introduces the theory of human resource management, and then analyzing Rio Tinto Indigenous Employment Program in Australia with the theory. Finally, the conclusion is obtained based on the analysis.2 TheoryThe Human Resources Management is an important part of enterprise management, whose objective is to enhance competitiveness of the enterprises, gain a competitive advantage and enhance the effectiveness of enterprise (Elwood, Holton, James and Trott 1996, 7). The human resource management is to manage the workforce and human resource in a company. There is a wide range of responsibilities including attraction, selection, training, assessment, and rewarding of employees, while at the same time keeping the culture of the company and following the labor laws (Merkle, Judith 2003). The Human resource management has a significant impact on business performance, which should be carefully studied. Effective human resource management will bring great benefit on employee, customer satisfaction, innovation, productivity, and reputation(Alvin 2009).Strategic HR planning is an component of strategic HR management, which is the starting point of the HRM and links the HRM with the strategic plan. A strategic plan is the guidance for the successfully meeting of missions(Ferrary, Michel 2009, 31).The overall purpose of strategic HR planning is to:∙Ensure human resources to meet the requirement of strategic goals and operational plans. That is to make employee at right place and right time(Libera 2004, 8).∙Keep up with change of the employee, society, economic, and technology trend that cast impact on the HRM.3 Analysis of Rio Tinto Indigenous Employment Program3.1 Role of HRMThe role of the Human Resource Manager is related with the change in competitive market environment and the complementation that Human Resource Management plays a more strategic role in the success of an organization. In a changing environment, the HR professional works as a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR understands the organization’s big picture and tries to make key decisions and policies. The focus of HR Manager is on strategic personnel retention and talents development. The HR manager will also promote and fight for values, ethics, beliefs, and spirituality within their organizations.3.2 challenges of the Rio TintoThere HRM in Rio Tinto meet the following challenges:∙Workplace diversity. The employees are different in age, education, gender, or any other things. It is a great challenge to make interaction with the diverse groups. Thus,the HR staff provides assistance in training program for those who is considered“different” and respect each other.∙Change management. This is also another important challenge for the HR department.As the environment will change and, the employee change, the HR should always know the change and change their role and responsibility in HR position(Myers, Charles 2003,37).∙Compensation and benefits. The benefit is what all the stakeholders concern, which is really difficult to complete all the need. In premise of the profit, the company shouldconsider the employee, the government and the local community, where they will agree with the benefit allocation arrangement.∙Recruiting skilled employees. It is really a great challenge as the education level of the local people is not as good as the average level. However, there is dire need foremployees with acceptable skills and required degree. Not only the health condition but also the technology is so important for the position.∙Training and development. For one hand, the company should cut off the budget, for another, the training is so important for the employees. To provide the training for the employees will be great expense.3.3 StrategiesIn order to solving the challenges and meet the goal of the companies, the HR takes a series of effective strategies.Planning a Mentoring ProgramOne of the best ways to handle the issue of being lack of skilled employee is to provide training program. In order to make sure the training program run successfully, the company provides a series of actions:∙Skills development. As there is a shortage of skill in northern Australia, the employment program focuses on the training of Indigenous employment. There is a two-yearIndigenous traineeship in civil earthworks, business administration, warehousing andtransport and metalliferous mining. Moreover, a three and four-year apprenticeshipsare offered in a range of fields, including heavy equipment, metals, engineering andelectrical.∙Job Readiness Training and Recruitment. Rio Tinto takes a holistic approach to ensuring potential Indigenous employees are ready for work.∙Literacy and Numeracy Support. In remote and regional Australia, few people have had access to employment and so require preparation for the workplace. English may be a second language and many Indigenous people have to overcome basic literacy andnumeracy barriers to enter the mainstream workforce.∙Professional Indigenous Employment. Rio Tinto aims to recruit Indigenous employees across a range of areas, including in professional roles.Retention and Career DevelopmentTo retain an employee is more important than recruiting an employee because it will save a lot of cost in recruiting and training. To success in retaining Indigenous employees, the HR is continuous mastering the need of the employee and trying to help the employee through meeting with Indigenous employees regularly and facilitating career development and counseling sessions. Moreover, the HR always encourages them and give oppornity for further study so that they will have confidence and a better career plan.Making Work EnjoyableThe HR tries to make a harmonious work environment so that the employee can enjoy their work. For example, in ERA, approximately 14 per cent workforce is Indigenous, who alwaysreceive support and encouragement from workmates. Within a good work condition, the worker will feel better.Combining engineering with community relationsThe company provides National Indigenous Cadetship for the college student. This is a good opportunity for them to know what they want and what they should learn. Thus, after a period of work, they will make sure the career. Rio Tinto has also aided employee in personal interests of assisting remote Indigenous communities and particularly Indigenous children through Business with Communities program. The program is not only able to make positive changes for remote Indigenous communities, but also encourages Indigenous to go the company, which, In turn, helps to complete company’ strategic objectives.Gain-sharing with all the stakeholdersGain-sharing programs generally refer to incentive plans that involve all the stakeholders to meet all need and then improving organizational performance(Greenwood 2007, 315).The stakeholders and their role are in the following:∙Rio Tinto. It is the executor of the Indigenous employment program of Rio Tinto.∙Employee. The direct target of the program.∙Aboriginal Traditional Owners. Cooperation with the company.∙The community. The indirect participate of the program, which provides the employee for the company.∙The Australia government. The government makes the norms and corresponding economic responsibility that the program should follow.Rio Tinto establishes relationships with Aboriginal Traditional Owners and groups affected by its operations. Rio Tinto does this to help gain access for exploration and gain consent for mining operations through the development of Indigenous Land Use Agreements.The company set out to build relationships with the neighbors. In Australia, the Group takes a partnership with Aboriginal Traditional Owners and with governments to assist Aboriginal people engages in the local economy. Moreover, the Rio Tinto set up Aboriginal Fund to improve the community capacity building activities in Indigenous communities (Baird, Lloyd. 1984, 76).As for the employees, the company has provides a lot of training opportunity and fund support for the Indigenous.4 ConclusionIn the paper, the author analyzes a case study entitled Rio Tinto Indigenous Employment Program in Australia. The HRM theory is introduced before analysis which lays the basis of the analysis. The HRM is essential for the enterprise management. And then, the study identifies the challenges the company meet and discusses the strategies for the challenges. Indigenous Employment Program, developed by the HR department, reflects its important role in the success of enterprise management. The success also gives good experience on the HRM, that is balancing benefit of all the stakeholders, providing training program for employees and considering the feeling and development of the employees.ReferenceElwood F. Holton II, James W. Trott, Jr., 1996. Trends Toward a Closer Integration of Vocational Education and Human Resources Development, Journal of Vocational and Technical Education, Vol. 12, No. 2, p7-12.Merkle, Judith A. 2003. Management and Ideology. University of California Press. ISBN 0-520-03737-5.Alvin Chan. 2009, HRM Singapore Asia motivation tumble,/business/hrm.html(accessed April 13 2013)Ferrary, Michel. 2009. A Stakeholder Perspective on Human Resource Management,Journal of Business Ethics. Vol. 87 Issue 1, p31-35.Greenwood. 2007. Stakeholder Engagement: Beyond the Myth of Corporate Responsibility. Journal of Business Ethics. Vol. 74 Issue 4, p315-321.Baird, Lloyd. 1984. Strategic Human Resource Management: Implications for Training Human Resource Professionals. Vol. 38 Issue 1, p76-81.Myers, Charles A. 2003. Human resources accounting. Monthly Labor Review. Vol. 99 Issue 4, p37-42.Libera, Joe. 2004. Generational Management Invites Dissention. Magazine of Physical Therapy. Vol. 12 Issue 5, p8-13.。
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