Chapter 6

Question 1

What is employee relations

Answer 1

Employee relations involves a level of interaction between employer and employees, or their representatives to achieve a set of working conditions that will meet the needs of employees as well as allowing the organisation to achieve it’s strategic, tactical and operational objectives

Question 2

Define employee relations

Answer 2

refers to the total interaction that occurs between employers and employees (including their representatives) in regards to the establishment of conditions of employment.

Question 3

Explain employee relations

Answer 3

Incorporates all issues included in relationship in workplace (i.e: recruitment, equal opportunity, training and development)
Industrial relations refer to the resolution of conflict between employees and employers (and their representatives).

It us accepted that legitimate differences exist in workplaces, but the aim is to reduce conflict through effective procedures and relationships

Organisations are continually examining ways to improve competiveness and profitability. Central to these objectives is the effectiveness and efficiency of employees –
a business strategy seeking to improve performance will use it’s employees relations processes to:

Encourage an effective workforce as a way of adding value to all areas of it’s Organisational performance
Focus on using specific strategies to retain, reward and motivate effective and skilled employees

Question 4

Define employer

Answer 4

an employer for legal purposes: exercises control over employees, has a responsibility for payment of wages, holds the power to dismiss employees

Question 5

Define employee

Answer 5

is a worker under an employer’s control. Control may involve: the location of the workplace, the way in which the work is performed, the degree of supervision involved. These criteria are critical in determining legal disputes over the employment contract

Question 6

Explain the link between business objectives and strategies

Answer 6

Employees are the most valuable asset to the organisation and produce the good and service that the organisation sells to make a profit. Maintaining positive relationships is essential for the business to be successful as poor relationships can ruin productivity and therefore reduce profits. Managers involved in ER must meet employee expectations regarding agreements to optimize individual performance that will ultimately optimize individual performance, which will ultimately improve organisation wide performance and thus achieve objectives.

Another link is that employee relations aim to reduce conflict and the chance of escalation to an industrial dispute. Therefore, ER will reduce costs associated with conflict and industrial disputes, which will increase profits and therefore achieve business objectives.

Profit and profitability – wages that are too high will reduce profits but wages that are too low can reduce employee motivation. Most increases in wages are tied to improvements in productivity. Relating wages to productivity creates a strong link between employee relations processes and business objectives.

Customer and staff satisfaction – Customer satisfaction is related to the way customers are treated by staff. Staff satisfaction influences the way staff relate to customers. A positive workplace relations environment is likely to lead to greater staff satisfaction (and reduced STO) and which will influence the satisfaction of customers, which positively impacts profits and market share.

Improving quality – a positive workplace relations environment can contribute to the willingness of employees to participate in quality improvement activities such as TQM, quality circles or continuous improvements which requires a commitment from employees. Improved quality products and customer satisfaction can assist in improving profits and market share

Acting ethically – doing the right thing by its employees builds trust and assists in negotiations of difficult employee relations issues.
Social responsibility – workplace relations legislation requires large-scale organisations to include flexible working arrangements for workers. Recognition of work-life-balance issues in a positive manner contributes to enhancing the workplace relations environment.

Question 7

What is the aim of employee relations

Answer 7

Focus on using specific strategies to retain, reward, and motivate effective and skilled employees.

The aim of Employee relations is to achieve an optimum working relationship between employees and management

Encourage workforce to add value to all areas of Organisational performance.
Achieve optimal relationship between employees and management.
Create optimal worker and Organisational productivity to increase business Competitiveness.

Question 8

Strategies for establishing a positive work environment for employee relations

Answer 8

Participative or consultative management style.
Good open communication and employee relationships.
Mutual respect, enthusiasm rewarded, and motivational leadership.
Training and development.
Recognition and reward.
Effective performance management systems.
Generous remuneration.
Safe and comfortable working conditions.
Meeting higher order needs.
Positive role models.

Question 9

Explain linking employee relations to business strategies and objectives (steps)

Answer 9

his model is not the relationship between business objectives and strategy and is only used to ensure ER is in line with business objectives and strategy.
This is not listed in the study design, however could appear in a SAC.

The following model may be used to ensure ER is linked to business strategy:

1. Review of Current Practice
   Acknowledge changes that need to be made in the internal and external environments
   i.e – internal: hire more people; external: availability of resources.
   E.g. availability of new technology
2. Setting the Agenda
   Notify employees and representatives of details of strategic plan.
   Identify and discuss issues that influence success the plan.
   Explore changes in operations required to achieve objectives.
   i.e – future workforce needs for business.
3. Implementing Changes
   Likely to involve: redesign of job descriptions and job criteria, retraining of staff, changes in working hours to allow training time, fair and open retrenchment processes, changes in remuneration and rewards and recognition programs.
   Setting performance indicators to measure success for changes.
4. Evaluation
   Seek feedback from workforce on practicality of changes.
   Regularly assess retraining and retrenchment processes.
   Establish monitoring process to measure how well new employment

Conditions are meeting objective

Review current practice. If new production processes will be required to produce the new range of foods, do staff have the necessary skills to carry out these processes? Will retraining be necessary, and will the expected increase in production require changes in working hours? It must be possible to identify the ways in which the new strategic objective may cause new practices to be introduced.

2. Set agenda. Include input from all parties. All issues which can affect the relationship between employer and employees should be identified and included in discussions. Potential changes in work practices, job descriptions, roles and duties, and their effect on employees must be identified, and possible changes to employee recognition and reward structures included in discussions.
3. Implement changes. This is likely to involve some new job descriptions and job criteria; retraining and changes in working hours to allow for that retraining; changes in wages and other areas of recognition and reward to recognise improved skill levels of staff; and a retrenchment process for those unable to be accommodated in the new environment. These changes would be incorporated into a new workplace agreement.
4. Evaluation. A set of KPIs should be established that relate to the strategic goal of achieving the increased market share within the next four years. These may be broken down into interim targets, but will ultimately measure the success of the changes to the conditions of employment in assisting the organisation to achieve its strategic objective.

Question 10

Benefits of effective employee relations

Answer 10

Increased motivation – leading to increased productivity, lower staff turnover, lower absenteeism, and positive relationships.

Increased business performance and achievement of objectives – such as greater net profit, increased market share, increased sales, and increased business competitiveness.

Less conflict – between employees and employers that results in less strikes and better pathways to fast resolution of conflict.

Increased safety performance – reduced accidents and defects due to better conditions and motivation

Question 11

Negatives of poor employee relations

Answer 11

Reduced business performance – lower productivity, net profit, sales.

Reduced motivation – increased staff turnover and absenteeism.

Increased conflict – more strikes, poor resolution of conflict.

Reduced safety performance – increased accidents.

Question 12

Explain stakeholders in an organisation (internal)

Answer 12

Employers (management):
An employer exercises control over employees, controls pay and wages, and has the power to terminate employees.
LSOs often employ ER specialists to assist with complexity of legal responsibilities of businesses in relation to ER.
Includes HR who is responsible for all ER issues.
Requires more attention in decentralized system as negotiations occur at enterprise level.

Employees:
An employee is a worker under an employers control in terms of location of the workplace, the way work is performed, or the degree of supervision involved.
Demand higher order needs to be met, such as challenging and interesting work, or greater involvement in decision-making.
Demand better working conditions and pay.

Employees are engaged with ER matters through:
Workplace level negotiations for individual employment conditions.
Vote/approve a collective agreement negotiated y a representative.
Employers may require improved productivity and changes in work practices in order to offer greater conditions and wages.
The increasing practice of negotiating employment agreements at the workplace level means that employees will be more closely engaged in the process of developing new or changed agreements

Question 13

External stakeholder in an organisation in OPERATING environment

Answer 13

Trade unions

Employee associations

Question 14

External stakeholders of an organisation in the MACRO environment.

Answer 14

Peak Union bodies
Peak employee bodies
Government bodies (FWA)

Question 15

Explain the external - operating environment stakeholders

Answer 15

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

Represent employees in development of new or changed agreements to achieve the best possible conditions and wages.
Services provided by unions include:
Negotiating collective agreements.
Making submissions to Fair Work Australia (FWA) when determining Awards. o Providing support to individual members in relation to disputes with

employers (i.e – lawyer for unfair dismissal claim).
Supporting shop stewards who are the union official at each individual
workplace, as elected by the members.

Employer associations – Are organisations that represent and assist employer groups

Services include submissions to FWA when determining awards, such as:
Industrial Association – (industry) such as Mining Council of Australia of Professional Association – (profession) such as Australian Medical
Represent employers in the making through the centralized employee relations system
Since the late 1980’s legislative changes decentralizing employee relations have placed grater emphasis on the negotiation of working conditions at the individual workplace level

Log of claims - Logs of claims are a list of demands by workers (often made through unions) against employees covering wages and conditions. Assist employers in formulating policies and processing logs of claims.

Question 16

Define trade unions

Answer 16

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

Question 17

Define employer associations

Answer 17

Are organisations that represent and assist employer groups

Question 18

Define log of claims

Answer 18

Logs of claims are a list of demands by workers (often made through unions) against employees covering wages and conditions. Assist employers in formulating policies and processing logs of claims

Question 19

Explain employer associations

Answer 19

Services include submissions to FWA when determining awards, such as:
Industrial Association – (industry) such as Mining Council of Australia of Professional Association – (profession) such as Australian Medical
Represent employers in the making through the centralized employee relations system
Since the late 1980’s legislative changes decentralizing employee relations have placed grater emphasis on the negotiation of working conditions at the individual workplace level

Question 20

Explain trade unions

Answer 20

Represent employees in development of new or changed agreements to achieve the best possible conditions and wages.
Services provided by unions include:
Negotiating collective agreements.
Making submissions to Fair Work Australia (FWA) when determining Awards. o Providing support to individual members in relation to disputes with

employers (i.e – lawyer for unfair dismissal claim).
Supporting shop stewards who are the union official at each individual
workplace, as elected by the members.

Question 21

Explain the stakeholders of the macro environment

Answer 21

Peak union bodies:
Peak Union Bodies represent trade unions in dealings with the media, government, or Fair Work Commission (FWC).
Formulates and coordinates national union policies, and represents unions in dealing with government and other organisations, as well as settlement of disputes.
Campaigns politically on behalf of other unions and members.
E.g – Australian Council of Trade Unions (ACTU)

Peak employer bodies:
Peak Employer Bodies represents business interests in dealings with other large organisations, the media, the community, and regulatory authorities to influence the natural economic trade, employment and workplace policy.
Australia’s peak council of business organisations.
E.g – Australian Chamber of Commerce and Industry (ACCI)

Question 22

Explain government organisations - macro environment

Answer 22

Established Fair Work Australia (FWA), which deals with resolution of industrial disputes and makes decisions regarding minimum wages and conditions of employment.
Approves agreements established at enterprise level.
Resolves employee/employer disputes when a resolution cannot be reached.

Question 23

Explain the 5 key roles of government

Answer 23

1. Legislator
   State + federal passes laws that provide legal framework for employee relations.
   Areas such as tax, OH&S, Equal Opportunity, Pay and Conditions
2. Employer
   Public sector employs one third of all Australian workers.
   Federal + state government employee almost 1/3 of Australian workers e.g. teachers, nurses
3. Economic Manager
   Ensures cost of wages do not lead to inflationary pressures.
4. Administrator of Government Policies on ER
   Government’s implements legislation by publishing information and guidelines. Provides advice to employees, employers and their representatives.
5. International Representative
   Represents Australia in worldwide organisations concerned with betterment of workplace conditions and wages.

Question 24

Define an award

Answer 24

is a legally binding agreement that sets out minimum wages and conditions for a groups of employees

Question 25

Define collective bargaining

Answer 25

involves determining the terms and conditions of employment through direct negotiation between unions and employers

Question 26

Define wage indexation

Answer 26

is the process whereby wage increases are given by a tribunal in national wage cases, in the line with increases in the cost of living (prices)

Question 27

Define enterprise bargaining

Answer 27

is the process of directly negotiating wages and employment conditions between employers and employees at the enterprise level

Question 28

Explain similarities between centralised and decentralised systems

Answer 28

A centralized system of employee relations is one in which central tribunals decide the ages and employment conditions of all employees. Decentralized is one in which direct negotiation occur between an individual an employer and either individual employees, groups of employees or the representatives The centralized system: In place from 1904 to early 1990s. The Centralised system was where Awards setting out pay and working conditions were determined by a central body relating to an industry, trade or occupation. Awards set out the minimum wages and conditions to which an employee is entitled. Where possible agreement between the parties was reached through a process of conciliation. When agreement could not be reached, a process of arbitration would result in the commission making a ruling which was legally binding by all parties

Question 29

Define conciliation

Answer 29

occurs when a third party participates in the resolution of a dispute and attempts to help resolve the differences through discussion

Question 30

Define arbitration

Answer 30

occurs when a judge (such as the commissioner of fair work Australia) or a panel of judges hears both arguments in a dispute in a more formal court like setting and determines the outcome

Question 31

Explain the role of the government in the centralised approach to employee relations

Answer 31

Government determines pay and conditions of employees. Government makes awards that set out pay and conditions for employees in an Industry, trade or occupation. Awards are determined based on submissions from unions and peak bodies. Awards are the same for all employees, regardless of the size of the organisation that They work for or the skill level and experience of employees. Disputes are resolved through centralized bodies, such as FWA, through formal Resolution methods such as arbitration and conciliation.

Question 32

Advantages of the centralised system

Answer 32

Centralised wage fixing provides greater fairness and equality - workers employed by different employers and those in weaker bargaining conditions in the same industry are paid the same. Greater government control over wage outcomes allowing greater control over the economy. E.g policies such as wage indexation Greater efficiency – industrial disputes within individual businesses can be reduced because awards can cover entire industries Stability and predictability are enhanced because of one set of rules and procedures applies to all industries and organisations

Question 33

Disadvantages of the centralised system

Answer 33

Less flexibility – same wages for employees regardless of output, effort, or individual characteristics of each workplace e.g. lso / country town A centralized system does not provide enough opportunities for individual businesses to provide improvements in employment conditions in return for productivity gains Large unions favored – unions with money and resources to be able to launch expensive legal campaigns are favored over unions in smaller industries. Less incentive for management style allowing more employee input – participative and consultative styles have less benefits because negotiations for wages and conditions are not made within the organisation.

Question 34

Explain a decentralised system

Answer 34

decentralized system exists when employers and employees at each workplace determine pay and conditions without outside interference. The Keating Labour Government moved to a decentralized system because the inflexibility of the Centralised system reduced the ability of businesses to compete in an extremely competitive international environment. Management negotiates with trade unions/employee representatives when establishing conditions of employment. Government only approves the agreement and are not involved in negotiations. Third parties only involved in dispute resolution as last resort. Enterprise bargaining allows businesses to change workplace practices to suit and link productivity improvements to wage increases, and empower parties to resolve disputes themselves(enterprise bargaining represents a more decentralized system) workplace needs: Employers can link pay to productivity. Parties are empowered to resolve disputes themselves. Inconsistent but flexible to needs of workplace.

Question 35

Explain the importance of workplace needs

Answer 35

workplace needs: Employers can link pay to productivity. Parties are empowered to resolve disputes themselves. Inconsistent but flexible to needs of workplace.

Question 36

Advantages of the decentralised system

Answer 36

Greater flexibility – to introduce employment conditions that take into account of individual characteristics of each workplace. Greater communication – between employees and employers allowing for greater staff motivation and cooperation spirit. Improved productivity – as productivity can be linked to employees pay providing incentive to be more productive, leading to productivity gains. (output/input)

Question 37

Explain the disadvantages of the decentralised approach

Answer 37

Greater inequality – between wages of skilled and unskilled workers due to less bargaining power of unskilled workers. Reduced government of control – of wages, which makes management of economy more difficult. Longer industrial disputes – due to less involvement of centralized tribunals, which could result in resolution, taking longer. Reduced union influence – which could lead to increased vulnerability of workers due to less representation.

Question 38

Similarities of centralised and decentralised

Answer 38

Both deal with establishing terms and conditions of employment Both use awards as minimum terms and conditions of employment Both governed by fair work commission Both must meet 10 national employment standards Both have conflict resolution methods Both accept the role of the trade union

Question 39

Explain industry wide awards collective agreements + industrial agreements

Answer 39

The decentralization of employee relations has resulted in a shift from industry wide wards to agreements determined at the enterprise level. Awards now provide only a safety net of minimum conditions, while collective and industrial agreements provide the opportunity for employees to gain improved pay and conditions in return for improvements in productivity Industry-wide awards An Award is a document approved by Fair Work Australia that outlines the minimum wages and conditions of employment for all wage earners in a particular industry. Enterprise bargaining replaced Awards in Commonwealth legislation, but existing Awards remained active. Awards are succeeded as new collective agreements are established, Industry wide Awards today provide a minimum set of employment standards for Employees working in an industry. Awards act as a safety net for the minimum standards that must be met. Award Modernisation The Australian Industrial Relations Commission (AIRC) modernised all Awards, removing and inconsistencies and amalgamating any overlapping features. Aim of process was to reduce number of Awards to cover just over 100 industries

Question 40

What do awards include

Answer 40

Modern Awards combine with 10 National Employment Standards to provide safety net of basic conditions for all employees. All Awards are reviewed by FWA every four years. Enterprise bargaining allows employees to negotiate better pay and conditions over and above the Award and 10 NES, particularly when linked to changes in work practices that can deliver productivity improvements.

Question 41

What are the 10 national employment standards

Answer 41

Maximum weekly hours of regular work. 2. The right to request flexible working arrangements. 3. Parental leave and related entitlements. 4. Annual leave. 5. Personal, carers and compassionate leave. 6. Community service leave. 7. Long service leave. 8. Public Holidays 9. Notice of termination and redundancy pay. 10. Provision of Fair Work Information Statement detailing rights and entitlements of employees, and how to seek advice and assistance if required

Question 42

Explain collective agreements

Answer 42

A collective agreement is a negotiated agreement between employers and employees (and representatives) that determines pay and conditions of employees in a particular organisation. In addition to 10 national employment standards, Enterprise agreements must include: Nominal expiry date _ usually 2_3 years after commencement Dispute settlement procedures – for disputes that may arise during Implementation of agreement, including the right of employees to be represented in the dispute settlement procedure Terms to allow for individual flexibility – to allow arrangements to be made between the employer and individual employees. Provisions for consultation for employees on major workplace changes.

Question 43

Explain good faith bargaining

Answer 43

Good faith bargaining is primarily about the process and conduct of negotiations. Employer and employee representatives should: Attend and participate in meetings are reasonable times. Provide responses to proposals by other bargaining representatives in a timely manner. Give genuine consideration to proposals of other bargaining representatives and provide reasons if proposals are not accepted. Not engage in unfair conduct that undermines freedom of association or collective bargaining. Good faith does not mean either party should accept an agreement where they do not agree to the terms. Good faith bargaining is primarily about forcing either side to make particular offers accept offers made by the other side, once the parties to an enterprise agreement have concluded their negotiations the agreement then needs to be submitted to fair work aus for approval before it can commence operation. The employer and the bargaining representatives acting on behalf of the employees must sign the agreement, to certify that the agreement had been entered into voluntary by both sides

Question 44

Explain the approval of agreements

Answer 44

FWA will examine agreement to ensure: That there is genuine evidence they both employer and employees agree to the terms of the agreement Majority of employees consulted by negotiating representative. Employees better off by entering agreement rather than Award. Agreement is consistent with NES. No unlawful content in agreement.

Question 45

Explain individual agreements

Answer 45

Individual agreements determine the pay and conditions of an individual employee, as negotiated by the employee and their employer. Also known as a common law individual (employment) contract. Individual common law employment contracts are the only form of individual agreements able to be made in current legislation. They differ from AWA’s in that they must conform to existing awards, or if they pay wages above the award, this must not be in exchange for any reduction in other conditions Must meet minimum standards in relevant Award and NES. If pay is greater than Award, other conditions must not be reduced. However, when employee is guaranteed income of over $100,000 the Contract can exclude relevant Award conditions. Enforceable through the courts the same way as any other legal contract between two parties.

Question 46

Explain a collective / enterprise agreement

Answer 46

is a negotiated agreement between an employer and a union group of employees

Question 47

Define common law individual contract

Answer 47

covers those employees who are not under any award or collective/enterprise agreements

Question 48

Explain the overall role of an hr manager under a decentralised approach

Answer 48

The role of the HR manager in a Decentralised employee relation environment includes: Negotiating employment agreements with employment and representatives Training other managers and supervisors to facilitate the implementation of agreements within their areas of responsibility Ensuring the implementation of all key terms of agreements Dealing with disputes and conflict that may arise during the life of an agreement the manner in which the role of the hr manger will be performed is determined by the cooperate culture, strategic vision and objectives and dominant management style of the organisation

Question 49

Explain the role of an hr manager in under a decentralised approach in terms of - negotiating

Answer 49

Management should follow the following process to achieve the best possible outcome in terms of employee commitment, productivity improvements, and flexibility for the employee and employer: 1. Be aware of all relevant Awards and legislation HRM must be aware of minimum requirements in Award. NES and existing Awards act as safety net for basis of agreements. 2.Ensure all relevant information is available to employee representatives Immediate trust will be established if a cooperative approach is taken. " i.e – provide strategic planning details 3.Consult widely HRM must consult with other managers to determine feasible changes to work practises to make productivity gains (if required). Consultation with HR professionals or employer organisations can provide information on how to overcome potential problems. 4. Keep an open mind Employee representatives may have valuable ideas for productivity improvements in return for improved conditions. 5. Keep the big picture in mind Consistent with organisations vision, strategic objectives, and financial performance. Specific objectives incorporated into changes in work practices. 6. Exercise care with the wording of the agreement Ensure everyone understands implications Ensure legal requirements are met. 7. Lodge the agreement HRM need to be aware of lodgement/approval requirements of FWA.

Question 50

Hr managers role in terms of training + supervision of other managers

Answer 50

Inform on details on agreement to ensure processes to achieve productivity improvements are put into operation. Monitor process with appropriate KPI to track success of changed practices, necessary to track the success changes in work practices. Departmental managers responsible for day-to-day implementation of these aspects of the agreement

Question 51

Explain the hr manager role in implementing agreements

Answer 51

Changing conditions of employment (i.e – leave entitlements, wages, hours of work), will be handled by HR mangers They have a responsibility for preparing and distributing legally required Fair Work Information Statement HRM must assist other managers in preparing KPIs to measure productivity improvements. HRM must seek regular feedback on operation of agreements

Question 52

Explain how POLC should be related to the role of employee relations

Answer 52

Application of the Role of ER to POLC >>POLC should be applied to answers to secure all marks. This is a list of possible links and is not extensive to all possible links. The best links to be made are: Planning and negotiating agreements. Leading and training other managers and supervisors. Organising with implementing agreements. Controlling with dealing with disputes and conflict

Question 53

Explain planning - POLC

Answer 53

Planning refers to identifying objectives and determining methods to achieve objectives. Planning identifies the Organisational objectives to be achieved, and how employee arrangements can be altered to best achieve these objectives. For example, the business objective to increase productivity: HRM could achieve this objective through cutting out overtime and replacing with casual workers. Negotiating agreements: Prior to negotiating agreements, organisation will have objectives they would like out of the agreement (i.e – productivity improvements) and the HR role of negotiating will meet this objective. Wide consultation – refers to consulting other people with knowledge in the area of employee relations’ agreements. Wide consultation is the method used to achieve the objectives; the benefit consultation has to the organisation, and achieving specified objectives. Notifying stakeholders – refers to providing information to stakeholders about proposed changes. HRM need to ensure this is worded in a manner that will not anger any stakeholders. Will ensure objectives are achieved, such as smooth implementation of new ER process Training other managers and supervisors: Scheduling/rostering managers for training. Implementing agreements: Planning for required workforce size after agreement is implemented to measure amount of people to be retrenched.

Question 54

Explain leading - POLC

Answer 54

refers to inspiring and enthusing staff with a vision in order to achieve objectives. Leading through implementation of agreements. Changes to employee arrangements handled by HRM. Leading when negotiating: Showing use of good faith bargaining. Dealing with conflict and disputes: Showing appropriate management skills such as communication and problem solving when moving through grievance procedures. Training other managers and supervisors. Leading by example and showing all details of the agreement to ensure processes are implemented effectively. This involves informational skills to be able to show employees the relevant business practices.

Question 55

Explain organising - POLC

Answer 55

refers to the coordination of the allocation of resources and tasks in order to achieve objectives. When negotiating agreements, HR must Organise and coordinate employees to: Take part in negotiations. Vote on agreements. When implementing agreements, HR need to Organise and coordinate: Changes to job designs and job descriptions/specifications. Changes to employment arrangements (i.e – weekly hours). Retrenchment processes. HR need to train other managers and supervisors, which will require: Organising of timetables to allocate time for training. Distributing details of agreement to ensure policies and procedures in agreement are put into operation. HR will also need to Organise when dealing with disputes and conflict: Organise meeting times for internal resolution.

Question 56

Explain controlling - POLC

Answer 56

Controlling - refers to evaluating performance and taking corrective action to ensure established objectives are being achieved. Negotiating agreements: Ensure agreements meet legal requirements. Listen to stakeholder feedback on agreements. Implementing agreements: Assess retraining program and effectiveness of the program. Assess retrenchment program. Benchmark implemented agreements against previous practices. Seek feedback on operation of agreement. Training other managers and supervisors: Assist with other managers choosing appropriate KPIs to track success of Implemented practices within their divisions. Dealing with disputes and conflict: Ensuring the organisation is always taking protected industrial action.

Question 57

Explain management styles and skills of employee relations

Answer 57

Participative or consultative management styles usually result in positive employee relations. The benefits of these styles are: Encourages employee involvement in decision-making process. o Allows for negotiations to precede any final decisions. Develop harmonious and positive working relationships. Encourages employee innovation. Authoritarian or autocratic management styles are detrimental to establishing positive employee relations because: Source of conflict and suspicion between employees and management o Increases staff turnover and absenteeism

Question 58

Explain management skills

Answer 58

Positive working relationships will be enhanced by a convulsive or participative management style, so management skills that support a consultative or participative style contribute to positive employee relations’ culture. Following skills help develop such a culture: Negotiation - is the process of discussion and bargaining between two or more parties, wit the aim of resolving conflict and arriving at a mutually agreeable outcome. Negotiate agreements with employee representatives. o Negotiate positive outcomes to resolve conflict. Decision-making - is the process of identifying the options available and then choosing a specific course of action. Identifying best options for working conditions and conflict resolution Time management - involves the ability to priorities tasks, set deadlines, review progress and delegate. Ensure agreements and disputes are finalized and resolved within specified timeframes. Delegation - is the transfer of authority and responsibility from a manager to an employee to carry out specific activities. Willingness to entrust employees helps build positive attitude towards organisation. Saves management time to concentrate on ER and resolving conflict. Communication - is the process of creating and exchanging information, involving listening and responding appropriately. Communicate information to stakeholders to ensure key information is received. Good communication and interpersonal skills helps build trust to support negotiations and the timely resolution of disputes. Seek stakeholder feedback on information to find best solution. Problem solving involves searching for, identifying, and then implementing a course of action to correct an unworkable situation. Find solutions for issues during key times – i.e bargaining period/time of conflict.

Question 59

Benefits of effective employee relations

Answer 59

Organisations with a responsive and cooperative system for managing ER experience: Improved overall performance – greater sales, growth, market share, customer satisfaction. Global success – greater performance in international markets. Fewer industrial disputes. Higher productivity. More effective enterprise agreements. Fewer workplace accidents. Lower staff turnover and absenteeism.

Question 60

Define conflict

Answer 60

refers to disputes, disagreements or dissatisfaction between individuals and or groups

Question 61

Explain conflict

Answer 61

Industrial dispute - refers to a withdrawal of work by a group of employees, or refusal of an employer to permit employees to work. The amount of days lost annually due to industrial dispute action has exponentially reduced in the past 30 years. Each withdrawal or refusal is made to enforce a demand, refuse a demand, or express a grievance. >>The study design only talks about the management styles and skills in ER and their resolution to the application of conflict. This means that conflict is not as important as making links between the use of skills and styles to resolving conflict

Question 62

Forms of industrial action

Answer 62

``` Strike Lockout Picket lines Work banks Work to rule Absenteeism Vandalism Sabotage ```

Question 63

Define strike

Answer 63

action occurs when employees withdraw their labour for a period of time in pursuit of improvements in their conditions of employment.

Question 64

Define lockout

Answer 64

occurs when employers close the workplace for a period of time as a means of applying pressure to employees during conflict.

Question 65

Explain picket lines

Answer 65

are protests taken outside the workplace that are associated with strikes. Union members try to stop the delivery of good, and nonunion members from entering the workplace

Question 66

Explain work bans

Answer 66

a refusal to do a particular type of work, such as overtime, handling specific products or pieces of equipment, or working with specific individuals.

Question 67

Explain work to rule

Answer 67

occurs when employees refuse to perform any duties that are additional to the work they are normally required to perform

Question 68

Major causes of conflict

Answer 68

The major causes of conflict recognized by the ABS are: 1. Disputes relating to negotiation of awards and collective agreements. Remuneration – wages, superannuation, allowances, entitlements. Employment conditions – working hours, leave, benefits, others. Other agreement related matters – job security, relating to process ofenterprise bargaining process. Disputes relating to matters other than negotiation of awards and collective agreements – These issues include disputes about: Health and safety Working conditions, safety matters, protective equipment and clothing, employee amenities. Job security issues – retrenchments, downsizing, restructuring. Managerial policy issues (most common) – discrimination, Award restructuring, terms and conditions of employment, promotions, disagreements, changes in work practices. Union issues – employer approach to union disputes, sympathy stoppages, recognition of union activities. Other non_agreement related matters – political or social protests, green bans.

Question 69

Define green bans

Answer 69

are imposed by trade unions on any development that is considered harmful to environment or any area of historical significance.

Question 70

Explain protected and unprotected action

Answer 70

If either party takes actions that are considered to threaten wider economy, or other businesses which have a commercial relationship with the organisation: Fair Work Australia can setup conciliation process to resolve dispute. If conciliation fails, FWA can determine a resolution through arbitration.

Question 71

Define protected industrial action

Answer 71

refers to action taken by either party to a dispute that is approved by Fair Work Australia. Legitimate tactic that occurs during agreement negotiations. For strike action to be protected, the union must conduct a secret ballot of members and have a majority vote in favour of the action, and the employer must be notified three working days in advance.

Question 72

Define + explain unprotected industrial action

Answer 72

refers to action that has not been approved by Fair Work Australia. Action that takes place before expiry of previous agreement, therefore unlawful. Strike action taken without proper warning is unprotected. Party taking unprotected action subject to fines and compensation from the Fair Work Division of the Federal Court Mandatory requirement of employer to make minimum deduction of four hours pay.

Question 73

Explain resolution of a conflict

Answer 73

All enterprise agreements must have dispute resolution procedures to deal with potential disputes to gain approval from Fair Work Australia. Organisations likely to have hostile employee relations, such as that governed by an autocratic manager will likely have: Third parties involved with no internal resolution. Clearly defined roles for all third parties in dispute resolution process. Organisations with more positive employee relations, such as that governed by a participative or consultative style: Will likely be able to resolve disputes internally. Will be able to settle with local employee representatives without involvement of external third parties.

Question 74

Methods of dispute resolution

Answer 74

Negioation Mediation Conciliation Arbitration

Question 75

Define negioation and how it can be used in dispute resolution

Answer 75

is discussion between two parties resulting in compromise and a formal or informal agreement about a dispute. Direct discussion between the parties, with no third party involvement. Most effective with participative/consultative styles.

Question 76

Define mediation + how it can be used in dispute resolution

Answer 76

is the confidential discussion of issues in a nonthreatening environment in the presence of a neutral and objective third party. Many organisations now specify mediation as a first step in their dispute resolution or grievance procedures First step in many grievance procedures. Third party assists other parties in working towards their own agreement and will not usually offer suggestions or solutions. Third party in dispute can be agreed upon by disputing parties, or a representative of a business, tribunal or government agency. The mediator will not normally offer any solutions to the dispute, but will simply assist them to arrive at their own resolution.

Question 77

How can conciliation be used to assist in dispute resolutions

Answer 77

is similar to mediation, except the third party will be more proactive in making suggestions for either party to take. Any agreement made is voluntary between both parties. Offers greater satisfaction due to voluntary entering into agreement.

Question 78

How can arbitration be used to assist in dispute resolutions

Answer 78

is similar to mediation, except the third party will hear both sides of the argument and then make a legally binding decision. The final agreement made will be involuntary and both parties will be obligated to accept the decisions. Results in satisfied and dissatisfied party

Question 79

Explain common law action

Answer 79

Disputes are heard in court as a last resort. Usually heard in Fair Work Division of Federal Court. Legal action before the courts open to all parties involved in industrial action. Parties make direct claims of damages due to parties taking action, or breach of Contract resulting from action. If industrial action is protected (i.e – with permission) during bargaining period, then parties taking action cannot be sued through the course. Consultative/participative management styles would avoid common law action.

Question 80

Explain dispute resolution with fair work Australia

Answer 80

FWA is national independent workplace relations tribunal and aims to assist parties in resolving workplace disputes. Often uses mediation, conciliation, and arbitration to resolve disputes. Type of dispute resolution method used may be specified in enterprise agreement. Arbitration used in unfair dismissal cases

Question 81

Define + explain grievance procedures

Answer 81

provide a formalized set of steps that outline the process of dispute resolution between and employees and employers relating to claims about pay and conditions, or disciplinary action. Involve local union representative and/or external advisors. Can be included in collective or individual agreement. Usually involves primary steps to internally resolve conflict before involving a third party to resolve the dispute (i.e – FWA) *diagram

Question 82

The importance of negotiation in employee relations

Answer 82

``` negotiation is the process where one party (such as a union) asks for something (change in hours) from another party (manager). With a move towards a more decentralize employee relation system, the human resource manager and other managers increasingly have to negotiate with their employees. The employer + employee may negotiate on a range of issues such as: benefits date of when employment commences compliance of hr policies, such as equal employment opportunities policies hours of work standards of performance termination procedures overtime pay probationary hours ```

Question 83

Explain the negoiation process

Answer 83

set objective – what you want to achieve (establish purpose) Have a strategy – how will we be able to achieve our objective Chose tactics

Question 84

Effective negioation skills include

Answer 84

Communication – listening + asking questions, providing information + demonstrationing empathy Preparation – understanding negotiating is a process and preparation + anticipating how a meeting might go puts the negotiator in a strong position Problem solving – creatively looking for the most effective way to solve problems (trying to benefit both employer + employees in outcome) Truthfulness – must try to build trust and maintain goodwill towards the person or persons they re negotiating with Adaptability + flexibility – a willingness to listen to the opinions, ideas of others, changing previously held views and looking for alternate solutions

Question 85

Role of FWA

Answer 85

provides a safety net of minimum conditions, including minimum wages in awards 2. facilitates good faith bargaining and making enterprise agreements 3. deals with applications in relation to unfair dismissal 4. regulates how industrial action is taken 5. resolves a range of collective and individual workplace disputes through conciliation, mediation and in some cases public tribunal hearings 6. functions in connection with workplace determinations, equal remuneration, transfer of business, general workplace protections, right of entry and stand down

Question 86

Organisations use employee relations specialists in the hr department because

Answer 86

the legal responsibilities of employers have become more complex in recent years. Government legislation requires employers to negotiate agreements with employees or their representatives, and resolve disputes at the workplace level. Detailed knowledge of this legislation is important to ensure that all legal responsibilities are met

Question 87

Peak Union and peak employee bodies

Answer 87

formulatenationalpoliciesonbehalfoftheir members, 2. representtheirmembersbeforethecourtsand other tribunals, 3. campaignpoliticallyandmakerepresentationsto government, 4. assistintheresolutionofdisputes,particularly when a dispute in one business is likely to affect other businesses

Question 88

Contrast between centralised and decentralised

Answer 88

Contrast of centralised to decentralised employee relations systems Wages and conditions of employment are determined for all employees in an occupation / industry Wages and conditions of employment are determined for workers at one enterprise Fair Work Commission determines Awards which detail the wages and conditions of employment for employees in each occupation Each enterprise, together with their employees collectively, determines the wages and conditions of employment for employees at that enterprise called enterprise bargaining

Question 89

Wage fixing systems

Answer 89

Industry wide awards – cover all workers in particular occupations across all worksites 2. Collective agreements within an individual organisation / enterprise agreements – cover all workers at a particular worksite/enterprise 3. Individual contracts – individual common law employment contracts cover individuals at individual worksites/enterprises

Question 90

Types of awards

Answer 90

Awards in the national workplace relations system include two main types: modern awards, and award-based transitional instruments (including former federal and state awards created before 27 March 2006) which are being reviewed

Question 91

Explain modern awards

Answer 91

Modern awards are those awards created under the national workplace relations system which relate to specific industries or occupations. Together with the National Employment Standards (a legislated set of minimum standards effective from 1 January 2010), they provide a fair and relevant minimum safety net of terms and conditions. The first modern awards were created as part of an extensive review conducted by Fair Work Australia's predecessor, the Australian Industrial Relations Commission. They came into effect on 1 January 2010. Award modernisation is the process of reviewing and rationalising awards in the national workplace relations system to create a system of 'modern awards

Question 92

Assessment of workplace relations

Answer 92

Levels of employee participation in decision making Degree of consultation Communication channels within the workplace Productivity levels Staff morale levels Incidences of strikes and other industrial action

Question 93

Dispute resolution process

Answer 93

Negotion Mediation Greviance procedures - surpivisor middle management/ senior management attempt to resolve dispute external parties for conciliation - where an external party brings both sides together and helps them reach an agreement by clarifying issues and developing strategies to resolve dispute Arbitration - where external parties here arguments from both sides and makes a defining decision to resolve the dispute FWA conciliation mediation arbitration Common law action - legal action through the courts ; direct claims for damages or breach of contract Conclude relationship

Question 94

Deference between mediation and conciliation

Answer 94

Unlike a mediator, a conciliator will take an active role in helping the parties to find a compromise solution and can offer solutions to the dispute, and can order the parties to continue negotiations, or report back to another conference

Question 95

Explain grievance procedures

Answer 95

Employee or representative complaint to surpivisor ... (Satisfiers or dissatisfied) Complaint handled by middle mangement Meeting of employee and representive with top management or greviance committee Matter referred for external conciliation or arbitration