learn.stleonards.vic.edu.au€¦ · Web viewThis assessment task for Outcome 2 in VCE Business Management Unit 3 (Managing a Business) focuses on motivation theories and strategies,

COMPAK | BUSINESS MANAGEMENT UNIT 3

BUSINESS MANAGEMENT UNIT 3

Unit 3, Outcome 2 assessment task: case study and structured questions

SUSAN DRIESSEN | ELTHAM COLLEGE

This assessment task for Outcome 2 in VCE Business Management Unit 3 (Managing a Business) focuses on motivation theories and strategies, training options, workplace relations and dispute resolution processes. The task involves applying theory to a contemporary case study and demonstrating an understanding of key concepts relating to managing employees, and proposing and evaluating strategies used to manage employees. Suggested answers are provided.

ASSESSMENT TASK DETAILSName of taskCase study and structured questions

Unit/area of studyUnit 3: Managing a Business

Area of Study 2: ‘Managing employees’

Outcome 2 ‘Explain theories of motivation and apply them to a range of contexts, and analyse and evaluate strategies related to the management of employees.’

Source: VCE Business Management Study Design (2017–2021), VCAA, page 17

vcta.asn.au | published March 2018 | © VCTA and Susan Driessen


Key knowledge and key skillsThis task addresses the following key knowledge and key skills outlined in Area of Study 2 in Unit 3. Where part of a key knowledge point or key skill is covered, the applicable words are highlighted in bold.

Key knowledge

the relationship between managing employees and business objectives

key principles of the following theories of motivation: Hierarchy of Needs (Maslow), Goal Setting Theory (Locke and Latham) and the Four Drive Theory (Lawrence and Nohria)

motivation strategies including performance related pay, career advancement, investment in training, support and sanction

advantages and disadvantages of motivation strategies and their effect on short- and long-term employee motivation

training options including on-the-job and off-the-job training, and the advantages and disadvantages of each

termination management including retirement, redundancy, resignation and dismissal, entitlement and transition issues

the roles of participants in the workplace including human resource managers, employees, employer associations, unions, and the Fair Work Commission

awards and agreements as methods of determining wages and conditions of work

an overview of the dispute resolution process including grievance procedures, mediation and arbitration.

Key skills

define, describe and apply relevant business management concepts and terms

research and analyse case studies and contemporary examples of management related to managing staff in a business

interpret, discuss and evaluate business information and ideas

apply knowledge about managing employees to practical and/or simulated business situations

examine and apply the key principles of the theories of motivation

compare and evaluate strategies used for motivation and training when managing a business

propose and justify strategies to manage employees effectively.



INSTRUCTIONS AND CONDITIONSAnswer all questions in this question and answer book. The marks for each question are indicated after each question. Extra space is available following the questions if you need extra paper to complete an answer. If you use this additional space clearly label all of your answers with the appropriate question number.

Conditions: Closed book

Time allowed: 50 minutes (plus 10 minutes reading time)

Marks allocated: 40 marks

QUESTIONS

Read the following case study and answer the questions below.

Glencore Australia employs approximately 15 600 people in its mining and agriculture departments. It has 24 mines across three states and the Northern Territory and its coal is used in steelmaking. Glencore’s steel is exported to countries including Asia, North Africa, Europe and South America.

Almost nine months ago Glencore banned union members from its Oaky mine in Queensland, resulting in a lockout for 190 workers. This lockout is likely to continue as attempts to end the labour dispute with the Construction, Forestry, Mining and Energy Union (CFMEU) have failed. The dispute is over wages, working conditions and Glencore’s hiring practices.

While the lockout continues, the mine is being operated by non-union staff and contractors who started work in June 2017. A spokesperson for Glencore said that the employment of these people had not adversely affected production.

Over this time little progress has been made in determining a new enterprise work agreement between Glencore and the CFMEU. In fact, there has been little progress since the last agreement expired in mid–2015. This is despite the fact that as at November 2017 both parties had met on 23 occasions to try to resolve the dispute. In addition, even the involvement of the Fair Work Commission as mediator did little to bring the parties closer together; however, the Commission is still acting as mediator. A spokesperson for the CFMEU said that the union is determined to fight Glencore until its requests are met.

At the negotiating table, Glencore is proposing to increase wage rates, making the average annual salary approximately $180 000 over the duration of a new enterprise bargaining agreement. On the other hand, the CMFEU has offered some concessions to its demands regarding workplace representation and the resolution of workplace disputes.

References: Our operations, Glencore Australia, http://www.glencore.com.au/en/who-we-are/glencore-in-australia/Pages/our-operations.aspx, and Glencore extends lockout at Australia coal mine as talks stall again, Financial Review, 8 November 2017, http://www.afr.com/news/glencore-extends-lockout-at-australia-coal-mine-as-talks-stall-again-20171108-gzhj09


http://www.afr.com/news/glencore-extends-lockout-at-australia-coal-mine-as-talks-stall-again-20171108-gzhj09

http://www.afr.com/news/glencore-extends-lockout-at-australia-coal-mine-as-talks-stall-again-20171108-gzhj09

http://www.glencore.com.au/en/who-we-are/glencore-in-australia/Pages/our-operations.aspx

http://www.glencore.com.au/en/who-we-are/glencore-in-australia/Pages/our-operations.aspx


Question 1 (2 marks)

Explain why the relationship between managing employees and business objectives is important to a business.


Propose and justify one motivation strategy, other than investment in training that Glencore could use to help resolve this workplace dispute.




Explain why the strategy you proposed in your answer to Question 2 might not motivate some employees at Glencore.


a. Describe the role of a human resource manager. 1 mark

b. Provide two examples of how a human resource manager at Glencore could assist in resolving this dispute. 2 marks




a. Outline two key roles of the Fair Work Commission, other than conducting mediation.2 marks

b. Suggest one reason why mediation has not yet been successful at Glencore. 1 mark


Compare the principles of Maslow’s Hierarchy of Needs with one other motivation theory. In your answer, explain how these theories help motivate employees.




Distinguish between the processes of mediation and arbitration in resolving workplace disputes.


As the dispute at Glencore continues, it is possible that some employees will be faced with transition issues.

a. Define the termination management term ‘transition issues’. 1 mark



b. Describe two transition issues that might be experienced by employees at Glencore.2 marks


Evaluate the effectiveness of on-the-job training as a strategy to assist in meeting business objectives.




Evaluate the effectiveness of using awards and agreements as methods of determining wages and conditions at Glencore.



Extra space for responses

Clearly number all responses in this space.



Suggested answersNote: The answers below are suggestions only. For some questions, more than one answer is possible.


Explain why the relationship between managing employees and business objectives is important to a business. The relationship between business objectives and managing employees is an important one. Business objectives are the outcomes that a business sets out and hopes to achieve. Employees are a very important aspect of any business as they help to achieve the business objectives, and therefore the relationship that a business has with its employees will directly impact on a business achieving its objectives.

Marking guide:

1 mark for defining business objectives

1 mark for stating the connection between the managing employees and business objectives


Propose and justify one motivation strategy, other than investment in training that Glencore could use to help resolve this workplace dispute. Note: The following answer is one of a number of possible answers to this question. Other strategies include sanction and support and performance related pay.

As the dispute at Glencore is centred on wages, benefits, working conditions and hiring practices, the offer of a career advancement strategy could help resolve this situation. Career advancement can act as a motivator to employees and could neutralise the disagreement over Glencore hiring contractors. This strategy entails promoting employees to positions that bring rewards, such as increased salary, fringe benefits and increased responsibilities.

Some employees would be motivated by the opportunity of assuming greater responsibility or authority in their jobs. This could appeal to their sense of ambition and status, and increase their commitment to Glencore and their willingness to resolve the workplace dispute. Glencore has offered increased remuneration but this in itself has not been sufficient to resolve the dispute. If Glencore provided other career advancement opportunities, such as job enlargement, job enrichment and job rotation, these might assist in resolving the dispute. Job enlargement usually increases the size of the job, whereas job enrichment increases its depth. Job rotation increases the variety of work, creating a more flexible workforce. This might provide opportunities for Glencore union employees to assume positions currently outsourced to contractors.

Advancing the career prospects of all employees would allow them to gain more skills and develop their expertise within the business, potentially increasing their contribution to Glencore. This would show union-member employees that Glencore values their expertise, their intellectual property and recognises the benefits of continuity of practice. The challenges associated with career advancement can be great motivators for individuals as it rewards employees for their past performance and invests in them to achieve future business objectives.

Marking guide:

1 mark for proposing and outlining a relevant motivation strategy

3 marks for supporting the selection of the strategy to resolve the workplace dispute




Explain why the strategy you proposed in your answer to Question 2 might not motivate some employees at Glencore.

Note: The following answer is one of a number of possible answers to this question. Other possible disadvantages for this strategy include resentment and unrest.

Career advancement, in the form of promotions, job enlargements and enrichments must be handled in a fair and equitable way. If not, it could result in some employees becoming demotivated because they were overlooked for advancement. There is a possibility they might feel that promotions were based on favouritism rather than merit or based on their union membership status. Furthermore, this might deter some unsuccessful employees from seeking advancements in the future. Also, for some employees promotion could become a demotivator if the nature of their enlarged or enriched position places excessive demands on their capabilities. This could demotivate them and result in lower productivity levels and a loss of self–esteem. In addition, if a union-member employee at Glencore was not successful in gaining advancement they could become resentful towards successful non-union employees, withdrawing their commitment to, and/or involvement, in team projects. This lack of sharing could negatively affect the achievement of business objectives.

Marking guide:

2 marks for providing reasons why some employees are demotivated by the strategy

1 mark for linking the reasons to the case study


a. Describe the role of a human resource manager. 1 mark

Human resource managers play a vital role in managing workplace relations. They help maintain a harmonious workplace where employees want to work. They are involved in managing payrolls, managing workplace issues and assisting in workplace disputes, as well as being an intermediary between unions and senior management.

Marking guide:

1 mark for providing the key characteristics and features of human resource manager’s role

b. Provide two examples of how a human resource manager at Glencore could assist in resolving this dispute. 2 marks

The Construction, Mining, Forestry and Energy Union (CMFEU) is in dispute with Glencore over several matters including working conditions and its hiring practices. A human resource manager might be able to take direct action or provide advice to relevant managers to help resolve the dispute. For example, human resource managers could directly conduct a review of the existing recruiting and selection procedures to identify points of contention and suggest possible solutions. Also, as this lockout is at a mine where safety is very important, the occupational health and safety guidelines could be reviewed to determine if the best possible practices are being proposed and carried out (working conditions).

Marking guide:

1 mark for providing an example that is linked to the case study (x two = 2 marks)




a. Outline two key roles of the Fair Work Commission, other than conducting mediation.

2 marks

The Fair Work Commission (FWC) is Australia’s national workplace relations tribunal. The Commission is an independent body that operates under the Fair Work Act 2009. One specific role is to create and maintain minimum wages for different industries and occupations. Another role is to provide support for the determination of enterprise agreements to ensure that they are fair.

Marking guide:

1 mark for indicating the main features of each role (x two = 2 marks)

b. Suggest one reason why mediation has not yet been successful at Glencore. 1 mark

Mediation involves an independent person from the FWC helping the disputing parties arrive at that their own agreement or outcome. At Glencore it is possible that while both parties have made some concessions, neither is willing to match each other’s remaining requests. Added to this, the parties’ steadfast attitudes in preserving their main claims, has made reaching an agreed outcome through mediation difficult. It appears there is limited willingness to negotiate.

Marking guide:

1 mark for providing a reason that is relevant to the case study


Compare the principles of Maslow’s Hierarchy of Needs with one other motivation theory. In your answer, explain how these theories help motivate staff.

Note: The following answer is one possible answer to this question. The other motivation theory is the Goal Setting Theory (Locke).

Both Maslow’s Hierarchy of Needs theory and Lawrence and Nohria’s Four Drive Theory illustrate alternative ways of motivating people to achieve business objectives. Maslow believed that within all individuals there exists a hierarchy of five needs that are ranked or based on an order of importance. The lowest need (psychological) forms the base or the foundation of the pyramid, progressing through the hierarchy to the most important needs, such as self–esteem and self–actualisation. Maslow states that a person must be substantially satisfied at a level before moving up to the next level (or need), which is then activated as a motivator. Once a level of need is satisfied, it is no longer effective in motivating an employee’s behaviour.

Lawrence and Nohria’s Four Drive Theory is premised on a different assumption, namely that its four motivational drives (to acquire, to bond, to comprehend and to defend) can be simultaneously used as motivators, meaning they are not hierarchical, but rather they are situational. Each of these drives combines to motivate people, and the extent to which each drive is met or satisfied affects our behaviours and emotions. The Four Drive Theory implies that every job must provide an opportunity to fulfil all four drives; however, the relative emphasis given to each drive will differ for each individual. In this theory what motivates people is when they believe that they do not have enough of one core drive (or are dissatisfied), they will do what they can to get more. However, Maslow acknowledges that because his theory is hierarchically based, different employees will require different motivating factors for them to be substantially satisfied at their need level, before progressing to the next level.



While the academic backgrounds of Lawrence and Nohria and Maslow are different, their theories are both based on an understanding of human psychology. Lawrence and Nohria had a business background, while Maslow was a humanistic psychologist. Both theories were not intended for workplace motivation. Another similarity is that they both focus on satisfaction—in Maslow’s case it is satisfying needs and in Lawrence and Nohria’s case it is satisfying each of the drives.

Marking guide:

1 mark for providing the key characteristics of each theory and how they motivate employees (x two = 2 marks)

2 marks for stating the similarities between the two theories

2 marks for stating the differences between the two theories


Distinguish between the processes of mediation and arbitration in resolving workplace disputes.

Workplace relations in Australia have become more decentralised. This means greater power lies with individual employers and their employees, represented by trade unions, to negotiate agreements using enterprise bargaining. There are significant differences between the processes and outcomes of mediation and arbitration.

If a workplace dispute cannot be resolved within a workplace, a party can apply to the FWC to begin a process of mediation. This is where the employer and employee/or trade union meet to discuss their differences with an impartial mediator, who may be either appointed by the FWC or chosen jointly by negotiating parties. The mediator does not offer advice to either party but does assist in supporting the parties in reaching their own agreement.

If the mediation process fails, then arbitration is the next step with the FWC assuming the role of independent umpire. The arbitration processes are similar to those in a court case. The presiding Commissioner will listen to each party make their case and will make a legally binding order as to how it must be resolved.

Marking guide:

2 marks for describing the processes and purposes of mediation and arbitration

2 marks for noting the difference between the two processes and outcomes


As the dispute at Glencore continues, it is possible that some employees will be faced with transition issues.

a. Define the termination management term ‘transition issues’. 1 mark

For some employees, when their employment relationship ends, either voluntarily or imposed, they experience social and financial issues, such as loneliness and budgeting problems when adjusting to their new life. These adjustments are often referred to as ‘transition issues’ and today many businesses work with their employees to support a smooth transition to their new life arrangements.

Marking guide:

1 mark stating the meaning of the term, including its essential qualities



b. Describe two transition issues that might be experienced by employees at Glencore. 2 marks

The employees at Glencore may be at risk of losing their jobs if the dispute cannot be resolved. Furthermore, even if the dispute is resolved it still might involve redundancies. For those who lose their job, they might need assistance in finding employment in the field same or another field, and adjusting to retirement. In this instance, Glencore could assist these employees in becoming more involved in their community if they retire, offer financial advice on their superannuation or provide them with opportunities to be retrained into other forms of employment.

Marking guide:

1 mark for describing an issue relevant to the case study (x two = 2 marks)


Evaluate the effectiveness of on-the-job training as a strategy to assist in meeting business objectives.Training is a way that organisations can equip its employees with specific knowledge and skills to perform particular tasks. On-the-job training occurs in the workplace and types of on-the-job training include mentoring an employee by assigning them to a more experienced person, participating in organised work activities, usually held during working hours, and job rotation.

On-the-job training has the advantage of employees learning within the context of their organisation, allowing for programs that can be directly targeted to a business objective. Employees will learn using known equipment and procedures, so there are some efficiency gains for the employee and the organisation. Conversely, the effectiveness of the training might be lost if a mentor, for example, has not be trained to take on this role and bad habits are unconsciously passed on by the trainer. This could lead to inefficiencies and contribute to a business objective being compromised.

Marking guide:

2 marks for providing the key features of on-the-job training

1 mark for providing a disadvantage, acknowledging its effect on meeting business objectives

1 mark for providing an advantage, acknowledging its effect on meeting business objectives


Evaluate the effectiveness of using awards and agreements as methods of determining wages and conditions at Glencore.

Since 2009, with the enactment of the Fair Work Act, the workplace relations system is heavily influenced by the federal government and the processes of establishing wages and conditions are set out in this Act. Each of the three fair work institutions established through this Act work side-by-side to achieve the optimal employee–employer relationship.

Two of the three ways of determining the wages and conditions of an employee are through an award and an enterprise bargaining agreement. An award is legally binding and is reviewed every four years. These awards are industry specific but not business specific. Awards are legally enforceable and provide a safety net for employees but they have little flexibility for them. The awards cover conditions such as minimum wages, holidays and working conditions.



The other way of determining wages and conditions is through an enterprise agreement, which is negotiated between the employees (often through union representation) and the employer. The agreement is negotiated and involves coming to an agreement between the parties about their respective demands. These agreements enable flexibility for employees to negotiate their workplace wages and conditions but it can be difficult to achieve mutually beneficial outcomes if there is an imbalance of power in the negotiations. Sometimes this arises when there is an oversupply of the employees’ skills, meaning that the employees are not in a strong bargaining position. However, if the employees skills are in short supply this is advantageous for the employee who is in a strong bargaining position.

At Glencore, wages and conditions are determined via an enterprise agreement, the most recent one expiring in 2015. To date, limited progress has been made in striking a new agreement. For an agreement to be successful it needs to be ratified by the majority of the employees and this has not happened at Glencore as there is still a lockout. Once an agreement is ratified it must then be registered and approved by the FWC.

Given the length of the lockout and Glencore’s ability to continue its business with contractors and non-union labour, it could be suggested that the likelihood of reaching a new enterprise agreement is minimal. This might indicate that there is an imbalance of power as Glencore is able to continue its core business using non-union members. This restricts the bargaining power of these employees. However, if Glencore chose the award approach, there is a possibility that some of the wages and conditions currently enjoyed by the non-lockout employees could be lost and the business might have difficulty attracting potential employees.

Despite the length of the workplace dispute, both parties are still willing to involve the FWC as mediator, which provides opportunities for an agreement to be tailored to satisfy each party’s needs.

Marking guide:

2 marks for describing the characteristics and features of awards and agreements

6 marks for providing the strengths and weaknesses of both systems and providing an opinion



Copyright notice: Compak is a membership service of the Victorian Commercial Teachers Association (VCTA). Copyright of Compak material is vested in VCTA and individual contributors, subject to the Copyright Act 1968 (Cwlth).

VCTA gives permission for the reproduction or alteration of Compak material if used by VCTA members for non-commercial, educational (classroom) purposes. For purposes other than classroom use, permission to reproduce, alter or transmit Compak material should be sought from VCTA.

Compak articles must not be placed on publicly accessible online spaces (including those accessed by students).

Some Compak material includes links to external (third-party) websites. These are provided for information purposes only and VCTA does not exercise any editorial control over these sites or endorse any of the opinions of the individual or organisation.

Every effort has been made to trace the copyright holders of all third-party content where this is included in Compak articles.

© VCTA and individual contributors

Disclaimer: This assessment task has been written by the author (Susan Driessen) for use with students of VCE Business Management. This does not imply that it has been endorsed by the Victorian Curriculum and Assessment Authority (VCAA). The current VCE Business Management Study Design (2017–2021) can be accessed directly via the VCAA website. VCE is a registered trademark of VCAA. While every care is taken, we accept no responsibility for the accuracy of information or advice contained in Compak. Teachers are advised to preview and evaluate all Compak classroom resources before using them or distributing them to students.


http://www.vcaa.vic.edu.au/Pages/vce/studies/busmngmnt/businesstindex.aspx

Documents

learn.stleonards.vic.edu.au€¦ · Web viewThis assessment task for Outcome 2 in VCE Business Management Unit 3 (Managing a Business) focuses on motivation theories and strategies,