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Business Management Unit 4 Outcome 1 PART B Employee Rela+ons Chapter 6 Text

Unit 4 Sac 1 part b

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Page 1: Unit 4 Sac 1 part b

Business  Management  Unit  4  

Outcome  1  PART  B Employee  Rela+ons  

Chapter  6  Text  

Page 2: Unit 4 Sac 1 part b

SAC  DATE:    Wednesday  27th  August                                          (next  week)  •  40  mins  wri+ng,    • plus  5  mins  reading  +me  • Chapter  6  text    • Human  Resource  Management  –  Employee  Rela+ons  • Checklist  &  past  sacs  in  WIKI  

Page 3: Unit 4 Sac 1 part b

Study  Design  –  Unit  4  Outcome  1

Management  prac+ces  and  processes  associated  with  employee  rela+ons:  •  rela+onship  to  business  objec+ves  and  business  strategy  •  the  similari+es  and  differences  between  centralised  and  decentralised  approaches  •  industry  wide  awards,  collec+ve  agreements  within  an  individual  organisa+on  and  individual  contracts  •  the  role  of  human  resource  managers  in  employee  rela+ons  under  a  decentralised  approach  • management  styles  and  skills  in  employee  rela+ons,  including  their  applica+on  to  the  resolu+on  of  conflict.  

Page 4: Unit 4 Sac 1 part b

Key  Skills  (as  per  study  design)

The  relevant  key  skills  for  this  assessment  task  include  the  ability  to:  •  accurately  use  relevant  management  terms  •  analyse  business  literature,  informa+on  and  data  •  evaluate  key  aspects  of  human  resource  management  theory  •  apply  human  resource  management  knowledge  and  concepts  to  

 prac+cal  and/or  simulated  situa+ons  •  evaluate  different  prac+ces  and  processes  for  managing  human  

 resources.  

Page 5: Unit 4 Sac 1 part b

PAST  VCAA  EXAM  QUESTIONS Ques%on  2  (18  marks)  2013  ZX  Bank  is  a  large  retail  bank  that  operates  in  all  states  in  Australia.  In  response  to  a  recent  market  survey  of  its  customers,  it  is  considering  opening  its  branches  on  Saturdays    and  Sundays.  Currently,  the  bank’s  employees  feel  that  their  expecta+ons  regarding  condi+ons  of  employment  and    work-­‐life  balance  are  being  met.  The  employees  have  been  asked  about  the  proposed  change  in  opening  hours  and  70  per  cent  said  that  they    would  prefer  not  to  work  on  weekends  but,  if  they  had  to,  they  would  expect  higher  pay  rates  on  those  days.  The  Human  Resource  Manager  has  responded,  saying  that  an  increase  in  pay  rates  might  make  opening    on  weekends  unprofitable.  The  bank  execu+ves  are  hoping  to  reach  an  agreement  with  the  employees  that    keeps  pay  rates  at  current  levels.  Both  sides  believe  that  it  is  important  to  discuss  this  issue  further.      b.  To  resolve  the  issue  regarding  the  proposed  change  in  opening  hours  and  the  employees’  expecta%ons    of  higher  pay  rates  on  weekends,  the  bank  execu%ves  will  need  to  apply  a  range  of  management  skills.    Describe  two  management  skills  and  jus%fy  their  use  in  this  situa%on.  4  marks  c.  Compare  the  centralised  and  decentralised  approaches  to  employee  rela%ons.  4  marks        

Page 6: Unit 4 Sac 1 part b

Examiners  report  2c  2013 Marks              0              1                  2                    3                        4                        Average  %                          45        14                18              14                        9                                    1.3  •  This  ques+on  was  poorly  answered.  Many  students  appeared  not  to  know  this  content  and  ocen  the  ques+on  was  unanswered.  Others  appeared  to  assume  that  the  ques+on  was  about  management  styles  and  explained  the  differences  between  the  autocra+c  and  par+cipa+ve  management  styles.  •  Employee  rela+ons  is  about  the  rela+onship  between  management  and  employees  in  determining  the  condi+ons  of  employment  –  such  as  wages,  hours  worked,  sick  leave  and  paid  holiday  leave.    •  The  ques+on  asked  students  to  compare  the  centralised  and  decentralised  approaches  to  employee  rela+ons,  the  best  answers  considered  both  similari+es  and  differences.  For  this  to  be  done  well,  it  was  not  enough  to  simply  iden+fy  similari+es  and  differences,  students  needed  to  consider  both  approaches  to  determine  where  there  were  similari+es  and  differences.  

Page 7: Unit 4 Sac 1 part b

�  Both approaches relate to the terms and conditions of employment. �  Both approaches use awards. However, the centralised approach uses

awards as the primary form of establishing terms and conditions. The decentralised approach also uses awards, but only as a safety net.

�  The centralised approach uses Fair Work Australia, industrial courts and tribunals. The decentralised approach has a limited third-party involvement.

�  The centralised approach’s terms and conditions of employment are for the whole industry with 10 minimum standards, while the decentralised approach’s are done at the organisation level.

�  Union involvement is greater in the centralised than in the decentralised approach.

�  The centralised approach is where everyone receives a pay rise; whereas, the decentralised approach pay increases are usually linked to productivity gains.

�  The centralised approach has national employment standards; however, the decentralised approach has collective agreements or individual contracts.

�  The decentralised approach is more time-consuming for the employers and employees as they are required to negotiate, while the centralised approach is less time-consuming as is done at an industry level.

�  The decentralised approach is more flexible at workplace level. The centralised approach is less flexible.

Page 8: Unit 4 Sac 1 part b

PAST  VCAA  EXAM  QUESTIONS Ques%on  2    (2011)  Freda  Campbell  is  sefng  up  a  new  business  in  Melbourne  that  will  manufacture  and  sell  furniture.  

Freda  will  need  to  employ  250  people  and  is  considering  factors  involved  in  managing  human  resources  such  as  employee  expecta+ons.  

 e.  Explain  how  employee  expecta%ons  of  Occupa%onal  Health  and  Safety  (OH&S)  and  job    security  will  need  to  be  addressed  by  Freda.  (4  marks)  

 

Page 9: Unit 4 Sac 1 part b

PAST  VCAA  EXAM  QUESTIONS Ques%on  3    (2011)  Jason  Green  is  an  Opera+ons  Manager  who  has  just  moved  from  an  organisa+on  that  provides  Internet  services  to  an  organisa+on  named  Trendseiers,  that  manufactures  clothing.  His  supervisor  has  indicated  that  one  of  his  first  tasks  is  to  work  with  the  Human  Resource  Manager  to  update  the  firm’s  employee  rela+ons  policies.  Jason  is  concerned  about  making  changes  too  soon  acer  he  arrives.  

 b.  Explain  the  similari%es  and  differences  between  the    centralised  and  decentralised  approaches  to  employee    rela%ons.    (4  marks)  

Page 10: Unit 4 Sac 1 part b

PAST  VCAA  EXAM  QUESTIONS Ques+on  2  (2008)  Country  Foods  is  a  food  processing  company  with  plants  in  Bendigo,  Ballarat  and  Geelong.  It  is  a  major  employer  in  these  regional  centres.  Due  to  the  severe  drought  in  Victoria,  Country  Foods  has  made  a  business  decision  to  close  the  Bendigo  factory.  The  Human  Resource  Manager,  Bob  Spiteri,  is  responsible  for  implemenZng  the  closure  in  relaZon  to  staffing  ma\ers.  The  company’s  CEO  has  contacted  Bob  Spiteri  as  he  is  concerned  about  possible  industrial  relaZons  acZon  that  might  impact  on  the  company’s  stakeholders. •  a.  Define  employee  rela+ons  and  discuss  the  role  of  the  human  resource  manager  in  this  area.  (4  marks)    •  c.  Iden+fy  and  explain  two  management  skills  Bob  Spiteri  could  use  and  discuss  how  these  skills  would  assist  him  in  this  current  situa+on.  (4  marks)  • d.  Iden+fy  two  stakeholders  of  Country  Foods.  Discuss  the  poten+al  impact  of  this  closure  on  these  stakeholders.  (4  marks)  

Page 11: Unit 4 Sac 1 part b

PAST  VCAA  EXAM  QUESTIONS Ques%on  2  (2007)  WAY  TO  GO  Skye  Daily  Press  ñ  22  September  2007  Recent  figures  show  that  Meehan  Electric  Company  is  leading  in  produc+vity  and  quality  compared  with  all  other  electricity  providers.  It  has  an  excellent  industrial  rela+ons  record  that  has  resulted  from  a  significant  change  in  its  corporate  culture.  Established  10  years  ago  by  James  Meehan,  the  business  ini+ally  struggled  to  gain  market  share.  There  were  feelings  of  mistrust  between  management  and  staff,  and  as  a  result  produc+vity  was  low.  James  decided  to  introduce  enterprise  bargaining  to  endeavour  to  become  more  produc+ve  and  to  improve  the  rela+onship  between  staff  and  management.  He  succeeded  beyond  his  expecta+ons  and  other  electricity  providers  now  benchmark  their  performance  against  his  company.  d.  Dis+nguish  between  individual  Australian  Workplace  Agreements  (AWAs)  and  Collec+ve  Agreements.  (2  marks)  

Page 12: Unit 4 Sac 1 part b

Ques%on  4  (2006)  Nursing  staff  claim  wages  situa%on  terminal  Newton  Morning  Express  –  20  October  2006  Nursing  staff  at  Newton  Hospital  are  upset  that  their  pay  and  condiZons  of  employment  have  fallen  considerably  behind  their  colleagues  at  other  hospitals  and  also  the  internaZonal  benchmark.  They  are  concerned  that  the  vision  of  the  hospital,  to  provide  quality  service,  will  be  undermined  if  this  situaZon  is  not  corrected.  The  nurses  are  considering  industrial  acZon  to  persuade  management  to  improve  their  pay  and  working  condiZons. Currently,  the  nurses  are  under  the  Victorian  Nursing  Award.  They  have  requested  that  management  negoZate  an  enterprise  agreement,  with  equal  representaZon  of  management  and  employees  in  the  enterprise  bargaining  process. However,  HR  Management  has  informed  the  employees  that  they  will  retain  the  award  system  and  that,  in  fact,  their  pay  and  condiZons  are  well  above  the  naZonal  average. a.  Compare  and  contrast  the  decentralised  and  centralised  systems  of  workplace  rela+ons.        

 (4  marks)    c.          Iden+fy  and  explain  an  appropriate  management  style  that  could  be  used  in  implemen+ng        enterprise  bargaining  within  this  workplace.    (3  marks)  

PAST  VCAA  EXAM  QUESTIONS

Page 13: Unit 4 Sac 1 part b

 What  are  Employee  RelaZons?  

•  The  overall  rela+onship  that  exists  between  employees  and  employers.  • Or  their  representa+ves  •  Establishing  condi+ons  of  employment.  •  Tradi+onally  known  as  industrial/workplace  rela+ons.  • Ocen  involves  conflict  and  the  need  for  ways  to          resolve  it.  • HR  managers  need  good  knowledge  of  laws  &  current  prac+ces  in  employee  rela+ons.  

   

Page 14: Unit 4 Sac 1 part b

RelaZonship  to  business  objecZves  and  business  strategy

• Good  employee  rela+ons  is  central  to  business  success.  •  If  the  rela+onship  is  good  &  two  way  communica+on  is  occurring,  employees  are  more  likely  to  perform  to  the  best  of  their  ability  to  ensure  organisa+onal  objec+ves  are  met.  • Good  employee  rela+ons  ensure  there  is  a  good  working  rela+on  between  employees  &  employers.  It  is  the  Human  resource  departments  responsibility  to  ensure  harmony  is  maintained  so  that  senior  management  can  implement  organisa+onal  objec+ves  through  the  work  completed  by  employees.  If  there  is  a  good  rela+onship,  then  employees  will  be  mo+vated  and  willing  to  accept  changes  and  work  harder  for  the  organisa+on.  •  LSO’s  that  manage  its  employee  rela+ons  well  is  likely  to  find  success  in  Profit  &  Employee  sa+sfac+on.  

 

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(ConZnued)

•  If  workers  are  happy  with  their  agreements  then  there  is  more  likely  to  be  increased  morale  and  lower  staff  turnover  rates  and  lower  absenteeism.  •  If  process  of  employee  rela+ons  is  not  handled  well  (poorly)  the  organisa+on  may  find  it  difficult  to  achieve  their  objec+ves.  

Page 16: Unit 4 Sac 1 part b

EffecZve  employee  relaZons  enables:

•  Excellent  overall  organisa+onal  performance.  •  Success  in  interna+onal  markets  •  Fewer  industrial  disputes  • High  produc+vity  • Beier  enterprise  agreements  •  Fewer  workplace  accidents.  

Page 17: Unit 4 Sac 1 part b

Employee  relaZons • Past  employee  rela+ons  =  centralised  approach  =  govt  &  tribunals  involved  in  wage  sefng.  • Contemporary  employee  rela+ons  =  decentralised  approach  =  enterprise  bargaining  at  business  level  

•  You  will  not  be  examined  on  the  history  of  employee  rela+ons,  but  it  is  worth  reading  through  as  this  will  help  you  understand  the  background  behind  the  modern  decentralised  system.  

Page 18: Unit 4 Sac 1 part b

 

The  similariZes  and  differences  between  centralised  and  decentralised  approaches  

Centralised  (WHAT  IS  THIS???)  (1904-­‐90’s)  • Governments  &  their  tribunals  control  the  process  of  wage  determina+on.  • Unions  &  employer  organisa+ons  present  submissions  to  the  Concilia+on  &  Arbitra+on  Commission.  • Wages  &  employment  condi+ons  formalised  in  Awards.  •  Ini+ally  Awards  were  determined  for  par+cular  occupa+ons,  later  par+cular  industries.  • Minimum  wage  s+ll  completely  centralised  through  Fair  Work  Australia.  

Page 19: Unit 4 Sac 1 part b

Decentralised  (WHAT  IS  THIS????) (from  late  80’s  onwards)  •  Employees  are  able  to  nego+ate  agreements  with  employers  in  individual  workplaces.  • Nature  of  decentralisa+on  has  changed  according  to  party  in  government.  • ALP  &  union  movement  supported  collec+ve  approach  with  an  Award  structure  ac+ng  as  safety  net.  •  Liberals  &  some  employer  organisa+ons  have  favoured  individual  approach  with  minimal  safety  provisions.  •  Enterprise  bargaining  allows  businesses  to  change  prac+ces  to  suit  work  needs.  

Page 20: Unit 4 Sac 1 part b

 The  similariZes  and  differences  between  centralised  and  decentralised  approaches  

SIMILARITIES  •  Both  the  centralised  approach  and  the  decentralised  approach  to  employee  rela+ons  apply  to  Australian  workers.  •  Both  approaches  are  systems  that  operate  to  establish  rela+onships  between  employees  and  employers  to  determines  wages  and  condi+ons  of  work.  •  Fair  Work  Australia  and  its  associated  bodies  provide  protec+on  for  workers  under  both  approaches.    •  Unions  need  to  apply  to  enter  the  workplace  under  both  approaches.    •  Unfair  dismissal  protec+on  is  provided  under  both  approaches.  

Page 21: Unit 4 Sac 1 part b

The  similariZes  and  differences  between  centralised  and  decentralised  approaches

DIFFERENCES  •  The  centralised  approach  applies  to  an  industry  or  occupa+on,  whereas  the  decentralised  approach  relates  to  a  workplace  and  provides  more  opportunity  for  nego+a+ng  produc+vity  gains  and  improved  pay  and  working  condi+ons.    • Under  the  decentralised  approach,  employees  are  able  to  nego+ate  with  employers  to  ‘cash  out’  two  weeks  of  their  annual  leave  en+tlement.  Awards  under  the  centralised  approach  do  not  allow  this.    

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Differences

• Under  the  centralised  approach,  pay  and  working  condi+ons  are  determined  by  a  central  body  or  authority  (Fair  Work  Australia)  acer  submissions  are  made  to  it  by  employers,  unions  and  other  peak  bodies;  and  increases  in  pay  are  determined  by  this  centralised  body  without  considera+on  of  an  organisa+on’s  ability  to  pay.  Wheras  in  a  decentralised  approach,  pay  increases  above  the  minimum  levels  outlined  in  the  Na+onal  Employment  Standards  can  be  nego+ated  at  a  par+cular  workplace  and  can  take  into  account  the  organisa+on’s  financial  ability  to  increase  wages  at  that  par+cular  +me.  

•  See  more  similari+es  &  differences    Ques+on  2C  2013  VCAA  EXAMINERS  REPORT  • Advantages  &  disadvantages  

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Centralised  or  decentralised?  Which  one  moZvates  employees??? Decentralised    •  Allows  for  greater  flexibility  (in  terms  of  hours,  working  condi+ons  and  pay)  when  nego+a+ng  an  agreement  at  the  workplace.  The  focus  is  on  the  individual  needs  of  the  workers  as  well  as  the  needs  of  the  employer.  Mee+ng  individual  needs  leads  to  a  more  mo+vated  workforce,  as  workers  will  be  given  more  flexibility  in  the  areas  that  they  regard  as  important.  •  Greater  communica+on  between  the  two  par+es  and  a  greater  focus  on  specific  needs,  which  would  help  to  promote  coopera+on  between  workers  and  the  employer  and  therefore  lead  to  a  higher  level  of  labour  produc+vity,  as  workers  would  have  a  beier  understanding  of  management  expecta+ons  and  management  would  have  a  beier  understanding  of  what  their  workers  need.  •  Can  recognise  outstanding  employee  work  and  reward  it  appropriately  which  would  help  mo+vate  employees  as  they  are  being  recognised.  

Page 24: Unit 4 Sac 1 part b

Centralised  or  decentralised?  Which  one  moZvates  employees???

• Under  the  centralised  approach,  an  industry-­‐wide  award  is  imposed  on  the  industry,  and  nego+a+ons  are  conducted  externally.  The  workers  or  union  therefore  do  not  have  to  undertake  the  nego+a+ons  with  management.  Therefore  worker  mo+va+on  would  come  from  feeling  assured  that  an  external  body  is  ac+ng  in  their  best  interests  when  nego+a+ng  an  award  that  applies  to  all  workers  within  that  industry.    

 

Page 25: Unit 4 Sac 1 part b

   Industry  wide  awards,  collecZve  agreements  within  an  individual  organisaZon  and  individual  

contracts   Industry-­‐wide  award  A  legally  binding  agreement  made  by  Fair  Work  Australia  arising  from  submissions  made  to  it  by  employers,  unions  and  other  peak  bodies.    Sets  out  the  minimum  pay  and  working  condi+ons  for  employees  within  a  par+cular  industry  or  occupa+on.    The  10  Na+onal  Employment  Standards  (NES)  form  part  of  the  award.    

Page 26: Unit 4 Sac 1 part b

CollecZve  Agreements • A  collec+ve  agreement  results  from  a  period  of  good-­‐faith  bargaining  at  a  workplace  between  employees  and  the  employer.    •  The  agreement  covers  pay  and  working  condi+ons  and  incorporates  the  10  minimum  standards  (Na+onal  Employment  Standards).    •  Fair  Work  Australia  provides  approval  for  the  agreement.    

Page 27: Unit 4 Sac 1 part b

Individual  Contracts

• An  individual  contract  is  an  agreement  made  directly  between  an  employer  and  an  employee  that  covers  working  condi+ons  and  remunera+on.    • he  employee  and  the  employer  nego+ate  the  terms  and  condi+ons  of  the  contract  and  any  dispute  arising  from  the  contract  is  enforced  through  the  courts.  

Page 28: Unit 4 Sac 1 part b

COMPARE:  Industry  wide  awards,  collecZve  agreements  within  an  individual  organisaZon  and  individual  contracts

• All  three  agreements  set  out  the  minimum  wages  and  condi+ons;  however,  individual  contracts  set  out  the  minimum  wages  and  condi+ons  for  a  single  individual,  while  industry-­‐wide  awards  and  collec+ve  agreements  set  out  the  minimum  wages  and  condi+ons  for  groups  of  people.    •  Similarly,  a  point  of  difference  between  the  laier  two  is  that  industry-­‐wide  awards  set  out  the  wages  and  working  condi+ons  for  an  industry  as  a  whole,  while  collec+ve  agreements  set  out  the  wages  and  working  condi+ons  for  a  par+cular  workplace.    • All  three  industrial  agreements  must  abide  by  the  Na+onal  Employment  Standards  (NES).  

Page 29: Unit 4 Sac 1 part b

COMPARE:  Industry  wide  awards,  collecZve  agreements  within  an  individual  organisaZon  and  individual  contracts

• A  collec+ve  agreement  is  one  that  has  been  determined  by  the  process  of  collec+ve  bargaining  and  determines  the  terms  and  condi+ons  of  employment  through  direct  nego+a+on  between  unions  and/or  a  collec+ve  group  of  employees  with  employers  rela+ng  to  a  par+cular  workplace  or  industry.    •  This  is  similar  to  the  direct  nego+a+ons  that  occur  between  an  individual  and  their  workplace  when  they  agree  to  an  individual  contract,  however,  industry-­‐wide  awards  arise  from  submissions  made  by  employers,  unions  and  other  peak  bodies  and  are  made  by  Fair  Work  Australia,  which  results  in  a  legally  binding  agreement  that  covers  the  whole  of  the  respec+ve  industry.  

Page 30: Unit 4 Sac 1 part b

Enterprise  agreement  vs  individual  contracts  or  industry-­‐wide  awards.

•  There  is  greater  flexibility  for  both  the  employer  and  the  employee  in  having  an  enterprise  agreement  that  suits  their  par+cular  workplace  • An  enterprise  (collec+ve)  agreement  would  also  allow  for  above-­‐award  pay  rates  as  a  means  of  mo+va+ng  and  maintaining  their  workforce  •  Fairer  and  more  efficient  having  an  enterprise  bargaining  agreement  rather  than  individual  contracts  means  that  as  a  group  employees  would  be  protected  and  receive  similar  benefits  rather  than  different  salaries  and  condi+ons  for  individuals.    

Page 31: Unit 4 Sac 1 part b

 The  role  of  human  resource  managers  in  employee  relaZons  under  a  decentralised  approach  

Human  resource  managers  undertake  the  roles  of    •  planning,    •  organising,    •  leading  and    •  controlling  under  a  decentralised  employee  rela+ons  system.  This  involves:  •  Recruit,  select,  induct  new  employees  &  nego+ate  agreements.  •  Nego+ator.  They  must  nego+ate  with  individual  employees  or  unions  to  develop  an  agreement  that  is  suitable  to  both  par+es.  •  Implement  agreements.  •  Manage  any  conflict  in  the  workplace.                                                                              

Must  link  these  to  POLC  

(See  next  slide)  

Page 32: Unit 4 Sac 1 part b

(ConZnued) •  Training  managers  &  supervisors  to  facilitate  the  implementa+on  of  agreements.  • Monitor  processes  with  appropriate  Performance  Indicators  to  track  the  success  of  changes.  •  Ensure  the  implementa+on  of  key  terms  of  agreement.  

Page 33: Unit 4 Sac 1 part b

 Planning

•  Sefng  goals  and  objec+ves  rela+ng  to  workforce  rela+ons  and  communica+ng  them  to  the  workforce.    •  Conduc+ng  nego+a+ons  to  ensure  that  collec+ve  (enterprise)  agreements  or  individual  contracts  would  allow  the  organisa+on  enough  flexibility  and  sufficient  resources  to  achieve  its  goals.    

Controlling  HR  manager  must  ensure  that  agreements  are  nego+ated  effec+vely  and  that  the  terms  and  condi+ons  of  an  agreement  are  monitored  and  met.  This  could  include  checking  that  the  nego+a+on  process  is  mee+ng  a  predetermined  +meline  (+me  management)  and  taking  ac+on  to  ensure  the  desired  results  of  an  agreement  are  achieved  (project  management  skills).  The  control  role  could  also  include  checking  that  the  nego+a+on  process  is  complying  with  legisla+ve  requirements  (technical  skills)  and  determining  whether  associated  budgets  have  been  met  (finance  skills).  

Page 34: Unit 4 Sac 1 part b

   Management  styles  and  skills  in  employee  relaZons,  including  their  applicaZon  to  

the  resoluZon  of  conflict.   Management  styles  –  must  be  able  to  explain  each  one    • Consulta+ve  would  be  used  when  changing  workplace  condi+ons.  • Par+cipa+ve  would  be  used  when  nego+a+ng  workplace  agreements,  managing  conflict  in  the  workplace.    • Par+cipa+ve  &  Consulta+ve  will  usually  result  in  posi+ve  employee  rela+ons,  as  they  encourage  employee  involvement  in  decision  making  processes  &  allow  nego+a+ons.  Gives  employees  more  ownership  of  decisions  made  and  they  are  likely  to  embrace  decision.  

Page 35: Unit 4 Sac 1 part b

Management  skills  in  employee  relaZons • People  skills  –  in  building  trust  and  support  for  posi+ve  nego+a+ons.  • Delega+on  –  increased  trust  helps  build  a  posi+ve  aftude  toward  the  organisa+on.  •  Teamwork  –  increased  employee  engagement.  • Problem  solving  –  eliminates  unnecessary  conflict.  • Communica+on  –  when  interac+ng  with  employees  or  their  reps  (union)  • Nego+a+on  –  •  Stress  management  -­‐  

Page 36: Unit 4 Sac 1 part b

Conflict  resoluZon  in  employee  relaZons Conflict  or  industrial  ac+on  can  occur  because:  • Unhappiness  with  decisions  being  made  by  employers  such  as  policies  &  procedures.  • Working  condi+ons  –  physical  working  condi+ons,  safety  concerns,  hours  expected  to  work.  • Remunera+on  –  pay,  hours  of  work,  rostered  days  off,  flexible  work  prac+ces.  

• Conflict  –  disputes,  disagreements,  dissa+sfac+on.  

Page 37: Unit 4 Sac 1 part b

Industrial  acZon

• Costly  •  Stops  produc+on  of  goods  and  services  so  needs  to  be  resolved  quickly.  • Role  of  HR  manager  –  try  to  resolve  conflict  before  it  becomes  an  industrial  dispute  and/or  nego+ate  a  suitable  outcome  to  the  ac+on  in  the  shortest  amount  of  +me.  •  Includes  –  strikes,  pickets,  stop  works,  work  bans,  lockouts.  (Must  know  each  one)  

Page 38: Unit 4 Sac 1 part b

Protected  industrial  ac+on  • Union  must  conduct  a  secret  ballot  of  members  –  a  majority  must  support  the  ac+on.  •  The  employer  must  be  informed  of  the  proposed  ac+on  at  least  3  working  days  in  advance.  • Occurs  when  a  new  collec+ve  agreement  is  being  nego+ated.  

Page 39: Unit 4 Sac 1 part b

Unprotected  industrial  ac+on  •  Industrial  ac+on  taken  outside  the  nego+a+ng  and  bargaining  process.  •  (Takes  place  before  the  expiry  of  the  previous  agreement)  •  Strike  ac+on  without  a  proper  warning.  • May  be  subject  to  legal  ac+on  before  the  Fair  Work  Division  of  the  Federal  Court.  

Page 40: Unit 4 Sac 1 part b

Resolving  conflict Nego+a+on  •  Least  formal  method.  •  Involves  direct  discussions  between  par+es  Media+on  •  Involves  a  third  party,  who  facilitates  discussion.  •  Third  party  does  not  offer  sugges+ons  or  solu+ons.  Concilia+on  •  Involves  a  third  party,  who  facilitates  discussion  •  Third  party  offers  sugges+ons  to  solving  the  issue  Arbitra+on  • When  a  ‘judge’  eg  commissioner  of  Fair  Work  Aust  hears  both  sides  of  dispute  in  a  court  like  sefng  and  hand  down  a  legally  binding  Order.  

 

 

Page 41: Unit 4 Sac 1 part b

Grievance  Procedures A  formalised  set  of  steps  established  by  organisa+ons  by  which  issues  can  be  handled.    

Page 42: Unit 4 Sac 1 part b

Fair  Work  Australia

•  Fair  Work  Act  2008  established  Fair  Work  Australia.  • One  stop  shop  for  informa+on,  advice  &  assistance  on  workplace  issues.  • Replaced  a  number  of  govt  agencies  eg  Aust  Industrial  Rela+ons  Commission.  • Role  in  rela+on  to  solving  industrial  conflict  –act  as  independent  tribunal,  arrange  arbitra+on  hearings.  • A  commissioner  can  be  appointed  to  convene  a  conference  between  par+es  to  resolve  an  issue.  • Methods  used  to  resolve  disputes  include  –  media+on,  concilia+on  &  arbitra+on.  

Page 43: Unit 4 Sac 1 part b

SAC  PREPARATION •  Summarise  chapter  6  • Complete  checklist  in  WIKI  • Complete  prac  sac  pg  242  text  book.  • Complete  last  years  sac  in  WIKI.  • Complete  past  VCAA  exam  ques+ons.  (Carefully  read  examiners  report)  • View  WIKI  tutorials.  •  EDROLO