Upload
coburgpsych
View
406
Download
0
Embed Size (px)
DESCRIPTION
Preparation for Unit 4 SAC 1B
Citation preview
Business Management Unit 4
Outcome 1 PART B Employee Rela+ons
Chapter 6 Text
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
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.
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.
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
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.
� 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.
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)
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)
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)
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)
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
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.
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.
(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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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).
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.
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.
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)
(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.
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).
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.
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 -‐
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.
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)
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.
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.
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.
Grievance Procedures A formalised set of steps established by organisa+ons by which issues can be handled.
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.
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