Chapter 6 Flashcards
(38 cards)
Define employee relations.
Refers to the total interaction (recruitment, equal opportunity, training and development and organisational structure) that oo curs between an employer( and their representatives) and the employee(and their representatives) in regard to the establishment of conditions of employment.
A business seeking to improve performance will use its employee relations processes to:
Encourage an effective workforce as a way of adding value to all areas of its organisational performance.
Focuses on using specific strategies to retain, reward and motivate effective and skilled employees.
What is the relationship to business objectives and business strategies (WAHOO)?
What it is-the total interaction that occurs between an employer and the employee in regard to the establishment of conditions of employment.
Aim-parties want a favourable outcome.
How-this can be done by any number of employee relation strategies including: flexible work arrangements, above award level pay.
Outcome-happy motivated workers, increased customer service, improved profit.
Objective-this then meets the business objective of reducing staff turnover, increase in net profit and increased staff satisfaction.
Define trade unions.
Are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members. Trade unions that have members employed by an organisation will have direct stake in the employee relations processes of that organisation.
Define employee associations.
Are organisations that represent and assist employer groups. Originally created by employees in response to employee membership of unions, to represent employers in the making of awards through the centralised employee relations system.
Define log of claims.
Is a list of demands made by workers against their employees. These demands cover specific wages and conditions. Employers may also serve a counter log of claims on the Union.
Define centralised system.
Under a centralised system, governments and their tribunals control the process of wage determination. The major area of employee relations that is still completely centralised is the determination of the minimum wage.
Advantages of the centralised system.
Centralised wages fixing provides a degree of comparative wage justice and equality for workers employed by different employers.
Governments have greater control over wage outcomes through policies such as wage indexation, and so can maintain better management of the economy.
Industrial disputes within individual businesses can be reduced because awards can cover entire industries.
Disadvantages of the centralised system.
The system is less flexible. For example, the same wages and conditions would be applied to a large organisation in a capital city and a small business in a country town.
Does not provide enough opportunities for individual businesses to provide improvements in employment conditions in return for productivity gains.
Large unions are favoured because they have the money and resources to mount expensive legal cases before industrial tribunals.
Define decentralised system.
A decentralised system exists when employees are able to negotiate agreements with employers in individual workplaces. Enterprise bargaining represents a more decentralised system. It allows businesses to change workplace practices to suit workplace needs and to link productivity improvements to wages increases, and it empowers the parties to resolve disputes themselves.
Advantages of the decentralised system.
There is flexibility to introduce employment conditions that take into account the individual characteristics of each workplace.
Greater communication between employers and employees can improve staff motivation through the development of a great cooperative spirit.
Greater effort and contribution to productivity improvements by the employees can be rewarded.
Disadvantages of the decentralised system.
There is likely to be a greater inequality between the wages of skilled and unskilled workers, as unskilled workers have less bargaining power.
Government has less control over wages, making management of the economy more difficult.
With less involvement of centralised tribunals, industrial disputes could drag on for longer periods.
Define conciliation.
Occurs when a third party participates in the resolution of a dispute and attempt to help resolve the differences through discussion.
Define arbitration.
Occurs when a ‘judge’ or a panel of ‘judges’ hears both arguments in a disputes in a more formal court-like setting and determines the outcome.
Define industry wide awards.
A legally binding agreement that sets out minimum wages and conditions for a group of employees made by Fair Work Australia arising from submissions made to it by employees, unions and other peak bodies. The 10 national employment standards form part of the award.
Define collective agreement.
A collective agreement results from a period of good faith bargaining at a workplace between employers and the employees. The agreement covers pay and working conditions and incorporates the 10 minimum standards(NES). Fair Work Australia provides approval for the agreement.
Define individual contract.
An individual contract is an agreement made directly between an employer and an employee that covers working conditions and remuneration. The employee and employer negotiate the terms and conditions of the contract and any dispute arising from the contract is enforced through the courts. Award conditions is when the employee is guaranteed an income of greater than $133,000.
What is the role of the human resource managers under a decentralised approach?
Negotiation of employment agreements with employees and their representatives.
Training of staff and other managers.
Implementation of the agreement.
Dealing with disputes.
What is the role of the human resource manager when negotiating employment agreements?
The following process can be used by human resource managers seeking to achieve the best possible outcome:
- Be aware of all relevant awards and legal requirements.
- Ensure all relevant information is available to employee representatives.
- Consult widely.
- Keep an open mind.
- Keep the big picture in mind.
- Exercise care with the wording of the agreement.
- Lodge the agreement.
What is the role of the human resource manager when training other managers and supervisors?
Other managers and supervisors need to be fully informed of the details of the agreement to ensure that processes for achieving productivity improvements are put into operation. Monitoring processes with appropriate performance indicators is necessary to track the success of changes in work practices.
What roles does the human resource manager have when implementing agreements?
Changes to wages, hours of work, leave entitlements and flexibility arrangements will be handled by human resource managers. Also have responsibility for preparing and distributing the legally required Fair Work Information Statement.
What role does the human resource manager have when dealing with disputes?
Human resource managers are central to managing the resolution of disputes that may arise under an enterprise agreement.
What management styles are used in relation to employee relations?
The participative and consultative styles.
These styles encourage employee involvement in the decision-making process, allow negation stop precede any final decsion, develop harmonious, positive working relationships so the organisations objectives can be more easily achieved; and importantly, encourage employee innovation.
Management skills used in employee relations.
Communication skills:good communication helps to build trust, support positive negotiations and helps with the timely resolution of disputes.
Delegation skills:a willingness to entrust responsibility to employees helps build a positive attitude towards the organisation.
Teamwork skills:establishing and supporting teams and responding positively to team activity contributes to the level of engagement of employees.
Problem-solving skills:the ability to analyse and interpret the sources of problems helps avoid a tendency to blame individuals or groups for those problems.
