Human Resource Management

Question 1

Human Resource Management

Answer 1

The effective management of the formal relationship between the employer and the employees to ensure that the business has the necessary employees with the skills and abilities to effectively perform their duties

responsibility for maintaining the relationship between employees and the business

Question 2

Human Resource Manager

Answer 2

Coordinates the activities involved in acquiring, developing, maintaining and terminating employees from a business’s human resources

Question 3

Effect of successfully managing employees (when they have increased job satisfaction…)

Answer 3

To make a profit:
…the number of employees leaving the business is likely to decrease.
–>The costs associated with recruiting and training replacement employees for leaving staff are reduced.

To increase market share
…the quality of the goods and services manufactured and delivered is likely to also increase.
–> A higher quality of goods and services can lead to increased customer satisfaction and sales.

To meet shareholder expectations
…they are motivated to work harder and to a higher standard.
–> Highly motivated employees can enable a business to increase its sales and profit, allowing higher dividends to be paid to shareholders.

To fulfil a market need
…they are more likely to contribute innovative ideas.
–> A business that produces unique goods and services may be able to better meet customer needs.

To fulfil a social need
…their support of business initiatives is also likely to increase.
–>
Business initiatives that aid the community and reduce waste are more likely to be successful.

To improve efficiency
…they are more motivated and determined to complete work tasks, doing so in a focused, error-free, and productive manner.
–>A business is able to produce goods and services at a faster pace and to a higher quality, with fewer errors and discarded materials.

To improve effectiveness
…they are more motivated to achieve business objectives and have greater resilience when doing so.
–>A business can more readily achieve its objectives and continue improving its performance.

Question 4

Relationship between Human and Resource Management

Answer 4

Human resource management plays a vital role in ensuring that the business have the necessary employees with the desired skills and abilities to effectively perform in the duties.

The HR department also need to ensure that employees are motivated and willing to perform tasks which align
with business objectives.

Question 5

Motivation

Answer 5

is what drives a person to apply individual effort over a sustainable period of time.

Motivation - a need or desire that direct energies and sustains and person behaviour

Question 6

Maslow’s Hierachy of Needs

Answer 6

Physiological, safety, social, esteem and self-actualisation.
The most basic needs are situated at the bottom of the hierarchy, progressing to higher level. An employee’s needs at a specific stage must be fulfilled before they can move up to the next level. Once satisfied it is no longer a motivator.

Question 7

Physiological needs

Answer 7

Basic requirements for human survival

theorised that people work to satisfy their physiological needs first, such as food and water. The wage that a business pays to an employee helps satisfy these needs.
- fair pay

Question 8

Safety and security needs

Answer 8

desire for protection from dangerous or threatning environments (shelter and clothing)
Businesses help to satisfy this need by providing safe working conditions (follow OHS regulations) and job security.
- pay on time, approval of leave, long term-contract

Question 9

Social Needs

Answer 9

Desire for a sense of belonging and friendship along groups
Once these first two needs have been satisfied, employees seek to satisfy their social needs. Work provides an opportunity for people to meet and form working relations that provide a sense of belonging.

• consultative/participative consultation, social gatherings, staff dinners, celebrations

Question 10

Esteem needs

Answer 10

the desire to feel important, valued and respected

Esteem needs are satisfied when an employee’s work is appreciated and he or she is given recognition, promotion or added status in the business.
- awards, bonuses, employee of the month, clarify policy of promotion

Question 11

Self-actualisation needs

Answer 11

Self-actualisation needs refer to an employee’s desire to reach his or her full potential. To satisfy these needs, businesses must provide a workplace that encourages personal growth and development, interesting and creative jobs, and opportunities for advancement.
- training, career counselling

Question 12

Maslow’s Hierachy of Needs Explanation

Answer 12

Important because it suggested that businesses have to create workplaces that attempt to satisfy all the needs of an employee. Businesses that attempt to motivate workers through pay rises or job security would only be satisfying lower order needs. Employees would not be fully motivated; and may become so dissatisfied and unmotivated that they become unproductive and/or leave the business, creating costs for the business in reduced efficiencies.

Question 13

Strengths of Maslow’s Hierachy of Needs

Answer 13

Allows management to develop an understanding of individual needs — all individuals are different and have specific needs.

Allows management to be aware that employees will be at different stages of development and that they will need to be motivated using a variety of methods.

MHN provides managers with a structured approach to determining the motivation strategies they should use to increase an employee’s motivation based on the level of the hierarchy an employee is on.

Question 14

Weaknesses of Maslow’s Hierachy of Needs

Answer 14

It can be difficult/time consuming for managers to accurately measure whether an employee’s needs are being satisfied. Consequently, it can be
difficult to measure the level of the hierarchy each employee is on.

MHN assumes that the five needs are exhaustive, which may be inaccurate. In other words, a person may desire for other needs to be met.

Maslow’s Hierarchy of Needs is only a theory — it is not supported by empirical evidence and the stages in the hierarchy do not apply to all individuals.

The Hierarchy of Needs is very simplistic and one motivation strategy should be able to satisfy several needs at the same time.

Question 15

Goal Setting Theory Locke and Latham

Answer 15

A motivational theory which states that employees strive to achieve well defined objectives. Managers are able to use goals which fulfil 5 key principles to motivate employees within the workplace.

Question 16

Clarity

‘improve your performance’ is not as effective as setting clear achievable and specific measures, such as ‘improve sales by 10 per cent’

Answer 16

Giving goals clarity means making them unambiguous and measurable. It is important that everyone understands what is expected and the result that will be rewarded. A vague goal does not include any specific actions that could be taken to achieve this. In addition, there needs to be a clear end date for the goal to be achieved.

Question 17

Challenge

Answer 17

People are often motivated by achieving something they have not successfully completed before. The opportunity to complete a task that is highly valued by the business can motivate an employee. There is no point in setting a goal that is beyond the capabilities of the employee, too easy, or does not seem to have much importance will not provide much in the way of motivation.

Question 18

Commitment

Answer 18

It is generally recognised that the greater the input from the employee, the more likely it is that the employees will commit to it, which means that a more challenging goal can be set, leading to greater rewards in the end.

Question 19

Feedback

Answer 19

Feedback provides opportunities to offer recognition for progress achieved, to make adjustments to the goal if necessary, and to ensure expectations are clear.
Frequency of feedback can depend on the timeframe of the goal.

Question 20

Task Complexity

Answer 20

While goals should be challenging enough to motivate employees, it is important that the level of complexity of the associated tasks should not be overwhelming. Rather, the tasks set to achieve the goal should be straightforward enough that employees feel that they can fulfil them.

Question 21

Strengths of Goal Setting Theory

Answer 21

Staff will perform at a higher standard due to their clear and specific goals, leading to a higher rate of productivity.

Better relationships between management and employees will occur as they work collaboratively to set goals and provide feedback.

Question 22

Weaknesses of Goal Setting Theory

Answer 22

Failing to meet a goal could be detrimental to an employee’s confidence.

GST only focuses on the setting of goals to improve performance,
even though other factors can affect an employee’s performance.

Setting goals that are too vague can lead to poor performance — goals that are not challenging can become demotivating.

Question 23

Four Drive Theory Lawrence and Nohria

Answer 23

The Four Drive Theory attempts to identify the
basic human drives that determine all human behaviour
and apply these as a means of motivating employees in the workplace.

Question 24

Drive to acquire

Answer 24

Achievement as in the desire to own material goods and non-material things, such as status and influence.

• tying monetary rewards (salary increase and financial bonuses)to improvements in performance
• HR can clearly set out for a business’ employees how their work performance will be evaluated, so the
  employees know how to work towards achieving financial and non-financial rewards.
• prestigous job titles and addtional responsibilities

-establishing high levels of performance as the norm, and the standard by which all employees are judged and rewarded

Question 25

Drive to bond

Answer 25

The drive to bond is most commonly expressed through a sense of belonging and the formation of relationships. - Employees will be encouraged to trust and support each other. - Personal friendships between employees will be fostered and supported.

Question 26

Drive to learn

Answer 26

The drive to learn encompasses the need to understand the world around us, to be challenged mentally and be faced with interesting and varied experiences. - Opportunities to learn new skills are provided on a regular and ongoing basis. - Tasks are made as interesting as possible.

Question 27

Drive to Defend

Answer 27

As the latent drive, defending comes into play in ensuring that the work environment is safe and non-threatening, with high levels of trust between employees and management. The drive to defend is a person’s desire to protect themselves, their accomplishments and the business they work for, whenever the person feels threatened. - The workplace is welcoming and supportive, and intimidation is not used as a management technique. - Managers treat all employees fairly and are seen to do so consistently.

Question 28

Strengths of Four-Drive Theory

Answer 28

- The drives work independently, allowing management and employees to be flexible in the behaviours or strategies selected or implemented. - Four Drive Theory is very adaptable to complicated or intricate environments or situations. - - because the drives in the FDT work independently, the FDT can be a quicker means of identifying the drive(s) the business should be focusing on than MHN, a theory of motivation in which each of the five levels doesn’t work independently.

Question 29

Weaknesses of Four-Drive Theory

Answer 29

Other drives besides the four outlined by Lawrence and Nohria may exist — these don’t necessarily explain all the individual characteristics that may motivate a person. Some of the workplace applications involve competition between employees, which can have detrimental effects

Question 30

Maslows compared with Locke and Latham

Answer 30

similarities Both theories highlight the importance of achieving job satisfaction as a key motivator. Both theories focus on achieving one thing at a time — Locke and Latham is one goal at a time, Maslow is one step in the hierarchy at a time. differences Maslow’s theory is an ongoing, long-term process through a series of steps, whereas Locke and Latham’s theory is more short term, in that the achievement of a goal ends the process, and a new process with new goals may be implemented. MHN focues on the internal needs of the employee while GST focuses on the setting of gosls that is more external to the employee and focuses more about the achievement of business objectives. Individual employees can be very significant in the goal-setting process, while managers are more significant in setting a tone that allows for the satisfaction of the different levels in Maslow’s Hierarchy of Needs.

Question 31

Locke and Latham compared with Lawrence and Nohria

Answer 31

similarities The rewards that come from the achievement of a goal in Locke and Latham’s theory can be linked to Lawrence and Nohria’s drive to acquire (status and achievement). In both theories, cooperation between manager and employee is essential. With Locke and Latham this comes with the setting of goals and feedback. With Lawrence and Nohria it comes from the manager having to understand how each of the four drives will affect employee motivations differences Goal Setting Theory can be closely aligned to the objectives of the business while the Four Drive Theory concentrates more on the internal motivating forces within each employee. In Locke and Latham’s theory, a person is usually pursuing one specific goal at any given time, while Lawrence and Nohria’s theory that a person needs to pursue all four drives simultaneously.

Question 32

Maslow's compared to Lawrence and Nohria

Answer 32

similarities Both theories were originally devised as a means of explaining human behaviour in general and have been adapted for application as theories of workplace motivation. Satisfying the drive to learn can be compared with having self-actualisation needs satisfied. differences Maslow’s theory has five different levels of needs in a hierarchical structure, while Lawrence and Nohria’s four drives are all considered to be of equal significance. Maslow’s theory assumes a sequential set of steps. A person will satisfy one level in the hierarchy before moving to the next one. In contrast, satisfying the four drives can occur simultaneously.

Question 33

Performance related pay

Answer 33

is a means of rewarding employees through monetary compensation when they perform their duties in a manner that equals or exceeds a set of pre-determined goals or criteria. such as pay increases, bonuses and commissions, including share plans, profit sharing and gainsharing.

Question 34

performance related pay short-term effects

Answer 34

Financial benefits such as pay increases, bonuses and commissions can influence short-term employee motivation in that they provide an immediate and tangible reward for effort and/or commitment to the business.

Question 35

performance related pay long-term effects

Answer 35

Share plans, profit sharing and gainsharing tend to provide longer-term motivation, as the rewards may take a number of years to be achieved.

Question 36

advantages performance related pay

Answer 36

Will only apply when there is actual performance improvement. Reward are generally predictable and easily calculated. improves productivity levels and thus engagement and commitment remuneration can be linked to achieving business objectives (thus employees motivation will be to work towards achieving bsuiness objectives) can be used to motivate employees at once - timely

Question 37

disadvantages performance related pay

Answer 37

a business may not be able to afford performance-related pay (due to the high cost it may not be sustainable in the long term) can create rivalries amongst employees and resentment for those employees who miss out not all employees are motivated by pay

Question 38

Career advancement

Answer 38

occurs when a person takes on a job that carries greater responsibilities or increased opportunities to provide leadership.

Question 39

short term effects of career advancement

Answer 39

In the short-term it usually brings a pay rise and greater job security, which satisfy the low order needs on Maslow’s hierarchy. The drive to acquire status and influence, the drive to bond, and the drive to learn can all be satisfied by promotion and career advancement. In the short term, satisfying these drives provides employees with a level of motivation.

Question 40

long term effects of career advancement

Answer 40

In the longer term it provides a means by which some of the higher level needs in Maslow’s hierarchy can be satisfied. An opportunity to be involved in decision-making in a leadership position can satisfy the social needs; gaining responsibility through promotion can satisfy esteem needs; and providing creative and interesting work can satisfy self-actualisation needs. Satisfying these drives can affect long-term motivation by encouraging the employee to remain with the organisation, and not seek opportunities elsewhere.

Question 41

Advantages of career advancement

Answer 41

can provide a means of retaining valuable/high perfomring employees will satisfy employees who desire a sense of achievement of extra responsibility. promoted employees can feel valued, incrasing morale

Question 42

Disadvantages of career advancement

Answer 42

employees may be promoted beyond their capacity promotion positions cannot just be created - they have to have some purpose there may be limited management posiions, some employees will be overlooked

Question 43

Investment in training

Answer 43

Employees gain skill and job knowledge through training and job experience refers to the direction of finances, or resources such as time, into the teaching of skills to employees.

Question 44

short term effects of investment in training

Answer 44

Providing employees with additional skills can increase job satisfaction. A more highly skilled job will usually pay more, so naturally employees will take the opportunity to take on additional training in the short term to give them access to those types of jobs.

Question 45

long term effects of investment in training

Answer 45

In terms of Maslow’s hierarchy, successful completion of additional training and personal growth supports the esteem and self-actualisation need by providing the employee with a sense of accomplishment. Locke and Latham’s, skill development goals can be established for employees to contribute to the business. Staff training also satisfies a number of the drives identified by Lawrence and Nohria through learning and improved comprehension.

Question 46

advantages of investment in training

Answer 46

May improve employee retention as staff loyalty and motivation are improved Benefits the business by improving the skills of employees so that they feel more confident and perform more productively

Question 47

disadvantages of investment in training

Answer 47

A business may be unable to afford the costs of training Business may pay cost of training only to have the employee leave for a position in other business.

Question 48

Support strategies

Answer 48

Support is the assistance or services provided by the business to help employees cope with difficulties that may impede their work performance.

Question 49

short term effects of support strategies

Answer 49

Providing support and encouragement for employees can motivate them to do better. Support can also be relevant when an employee has made a mistake when relatively new or inexperienced, the employee may benefit from the experience.

Question 50

long term effects of support strategies

Answer 50

A supportive workplace can have a positive effect on the employee’s long-term motivation, as it encourages a sense of loyalty, and willingness to remain in that work environment.

Question 51

advantages of support strategies

Answer 51

many forms of support may be provided with little to no cost positively influence employee attitudes and help to improve confidence and motivation employees feel valued and are less likley to leave the business

Question 52

disadvantages of support strategies

Answer 52

requires a business to have a positive corporate culture employees may become too dependant on the support service provided or the person offerring. may not motivate employees quickly, but over time can be time consuming

Question 53

Sanction strategies

Answer 53

A sanction is a penalty or form of discipline imposed on an individual. It may become necessary when an employee does the wrong thing in the workplace.

Question 54

long and short term effects of sanction strategies

Answer 54

Fear of sanctions can be a motivating factor for some employees, but will generally only influence Maslow's lower order needs. It can also influence the defence drive as identified by Lawrence and Nohria. It is only likely to impact on short-term motivation, as it does not encourage the employee to make a long-term commitment to the business.

Question 55

advantages of sanction strategies

Answer 55

sanction for poor behaviour can be a motivator to improve work performance quickly stop inappropriate behaviour of some employees + immediate motivtion no immediate cost to implement forces employees to abide by business policies to achieve business objectives

Question 56

disadvantages of sanction strategies

Answer 56

tends to act only as a short term motivator may cause resentment in employees and result in conflict between staff and employees

Question 57

On the job training

Answer 57

On-the-job training involves employees learning a specific set of knowledge and skills that is needed to perform particular tasks in the workplace. Enables employees to become familiar with the equipment, machinery or processes in the workplace related to their role This training usually occurs within the working environment provided by an experienced co-worker, by a leader or through external providers when new equipment is introduced. Being coached by an existing employee Job shadowing an experienced employee Having employees rotate through jobs Having a senior staff member as a mentor Hiring an external trainer to be brought in-house

Question 58

adv of on the job training

Answer 58

Employees are often actually working while training, so are more productive. Trainees use the actual equipment that is required to do the job.

Question 59

disadv of on the job training

Answer 59

Other employees may be disrupetd Business may not have experienced staff to train employees. The quality of the trainer may vary — not everyone has the ability to teach others. Bad habits of older staff may be passed on to younger employees.

Question 60

Off the job training

Answer 60

Off-the-job training involves employees learning knowledge and skills in a location away from the workplace, such as at a university, TAFE college or office of a specialist provider. It usually involves sending individuals or groups of employees to a particular specialised training institution.

Question 61

adv of off the job training

Answer 61

Can provide a formally recognised qualification for employees Outside experts and specialists can provide broader experiences.

Question 62

disadv of off the job training

Answer 62

More expensive, with fees charged, travel costs, etc. Lost working time while the employee is absent from the workplace

Question 63

Performance management

Answer 63

Performance management aims to improve both business and individual employee performance by relating the business’s performance objectives to the employee’s performance objectives.

Question 64

Management by objectives

Answer 64

It is a process by which management and employees agree on a set of goals for each employee, with these contributing to the objectives of the business as a whole. Included in the process are the means of measuring progress towards the achievement of these goals

Question 65

adv of management by objectives

Answer 65

The collaboration that occurs between management and the employees when creating goals can help develop and maintain positive work relationships between these staff. MBO ensures that all the employees’ individual goals contribute to the objectives of the business as a whole, consequently, these goals will also help boost the business’ productivity Can improve communication and result in employees being more aware of a business’s objectives. Both manager and employee are likely to know what is expected of them, reducing ambiguity and confusion in relation to roles.

Question 66

disadv of management by objectives

Answer 66

Management by objectives is not always useful for all types of employees. Creating goals that benefit the business and the employees, and that both the management and the employees agree on, can be time-consuming. A failure to meet objectives could become demoralising for some employees, resulting in a lack of motivation.

Question 67

Appraisal

Answer 67

is the formal assessment of how well an employee is performing their role in the business over a set period of time. (based on a set of predetermined criteria)

Question 68

explanation of what appraisal is

Answer 68

Performance appraisal typically occurs at frequent intervals. A performance appraisal can be formal or informal. Explain both the positive and the negative aspects of an employee’s performance, encourage continuation of positive behaviour, and advise improvements. The manager will also be able to identify training needs for the employee.

Question 69

advantages of appraisal

Answer 69

Facilitates communication and allows positive relationships to develop between management and employees. Feedback can help employees improve their performance by providing clear areas for improvement.

Question 70

disadvantages of appraisal

Answer 70

Can be time consuming, particularly if the cycle becomes shorter (such as monthly or weekly). Can be stressful for both managers and employees.

Question 71

Employee self-evaluation

Answer 71

Self-evaluation assumes that employees are able to assess their contribution to the business, their own strengths and weaknesses, and how they can improve their performance.

Question 72

explain employee self-evaluation

Answer 72

This strategy involves employees carrying out a process of self-assessment, based on a set of agreed criteria. Take into account an employee’s career aspirations as well as current strengths and weaknesses. - examine their current role in the business consider how that role may change identify how greater responsibility and leadership could be taken on in the future. Employees undertaking the self-evaluation process should be encouraged to keep documentary evidence of their achievements, as this helps provide a factual and measurable basis for that evaluation.

Question 73

adv of employee self-evaluation

Answer 73

Allows employees to be actively involved in the process of performance management and assists them in understanding their role. Self-evaluation can help save managers time as employees are evaluating their own work performance. Provides an opportunity for the business to gain an insight into how employees perceive their performance, help them planning training programs over the year.

Question 74

disadv of employee self-evaluation

Answer 74

Some employees may feel ill-equipped to undertake a self-assessment. can often overstate their own performance when completing a self-evaluation, or may complete parts of the process dishonestly.

Question 75

Employee observation

Answer 75

A range of employees from different levels of authority assessing another employees performance against a set criteria. is used by managers to gain insights into the performance of employees. The aim is to get feedback from a variety of different parties in order to arrive at a more comprehensive picture of past and current performance.

Question 76

adv employee observation

Answer 76

Employees observing strengths of colleagues may imitate their behaviour. Employees receiving feedback from other staff may be more likely to respond to the suggestions, if they value opinions of their peers.

Question 77

disadv employee observation

Answer 77

Staff may feel stressed when they know that they are being observed. Needs a high degree of trust. The process could be damaging if any one of the participants has a personal vendetta against the employee.

Question 78

Termination

Answer 78

of employment is when an employee leaves a particular workplace, ending the employment relationship.

Question 79

Retirement

Answer 79

is when an employee voluntarily leaves the workplace and the workforce. many businesses provide advice and assistance to employees to help them prepare for retirement.

Question 80

Resignation

Answer 80

or ‘quitting’, is a voluntary ending of the employment relationship. needs to give the employer sufficient notice of his or her intention to resign.

Question 81

Redundancy can be involuntary or voluntary

Answer 81

occurs when the job a person does is no longer necessary. Unless the existing employee can be redeployed, he or she will be retrenched — this means the employee will lose their job and will not be offered another.

Question 82

Voluntary redundancy

Answer 82

occurs when employees are informed of the situation and given the opportunity to nominate themselves for voluntary redundancy.

Question 83

Involuntary redundancy

Answer 83

occurs when an employee is asked to leave the business against his or her will because their job no longer exists. employee is not at fault in any way; purely based on the ongoing needs of the business.

Question 84

Dismissal summary dismissal Dismissal on notice

Answer 84

There are occasions when the behaviour of an employee is unacceptable and it then becomes necessary for a business to terminate the employment contract of that employee. summary dismissal — when an employee commits a serious breach of their employment contract. No notice from employer is required. dismissal on notice, when an employee is not performing the job satisfactorily. Amount of notice to be provided as well as termination payments

Question 85

Unfair dismissal

Answer 85

occurs when an employer dismisses an employee for discriminatory reasons. need to handle dismissals in a way that: takes account of the legal and financial implications minimises the trauma for both parties does not have adverse effects on the morale of the remaining staff.

Question 86

Entitlement considerations

Answer 86

legal obligations an employer owes to its employees following the termination of their employment contract. **annual or long service leave:** must be paid out to employee **redundancy pay**: often entitled to financial compensation from business. Size of redundancy pay is higher for employees who have stayed longer. Employees < 12 months usually don't get **notice of termination:** sufficient notice to provide employee with time to prepare **justifiable reasons for employment termination**: must provide valid reasons of redundancy or dismissal for it to be lawful

Question 87

Transition considerations

Answer 87

Issues that relate to the process that the employee will go through in changing from one job to another, or from one set of circumstances to another. are generally offered above and beyond the requirements of the law.

Question 88

Transition consideration services provided

Answer 88

Retirement: a gradual reduction in days worked over a period of time. Counselling and support on issues such as superannuation and government pension entitlements. Redundant: assistance writing job applications, references for potential employers, time off for job interviews. Outplacement services: job interview training career coaching assistance with improving resumes career counselling.

Question 89

workplace relations

Answer 89

Workplace relations refers to the interaction between employers and employees, to achieve a set of working conditions that will meet the needs of employees as well as allowing the business to achieve its objectives.

Question 90

Human Resource Managers

Answer 90

Human resource managers facilitate communication, provide expertise on labor laws and regulations, and address employee concerns to ensure a fair and compliant agreement that meets both company and employee needs. are individuals who coordinate the relationship between employees and management within a business. Recruit, hire, train, and terminate employees Negotiate with employees and their representatives Act as a mediating party Ensure that minimum legal requirements are met

Question 91

Employees

Answer 91

individuals who are hired by a business to complete work tasks and support the achievement of its objectives. Follow and understand workplace safety procedures Complete tasks with proper care and diligence Obey terms in their contract Avoid misusing confidential information Report illegal or unethical behaviour

Question 92

Employer associations

Answer 92

are advisory bodies that assist employers in understanding and upholding their legal business obligations. part of an association improves legal protection and gain assistance when negotiating their employees’ wages and conditions. share information provide advice represent employers during negotiations with employees provide support

Question 93

Unions

Answer 93

Unions are organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions. employee can voluntarily join a union and gain the benefits of this membership in their relevant industry. Seek better wages and work conditions on behalf of employees Protect job security and integrity of employee contracts

Question 94

Fair Work Commission

Answer 94

Fair Work Commission (FWC) is Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by the Fair Work Act. Set national minimum working standards Establish awards Approve and monitor enterprise agreements Act as an arbitrator Act as a mediator Respond to serious workplace issues

Question 95

Awards

Answer 95

A legal document which outlines the minimum wages and conditions of work across an entire industry. These minimum standards are set and made by the Fair Work Commission as National Employment Standards (NES).

Question 96

adv of awards

Answer 96

Less costly for the business Provides a stable and secure safety net for employees

Question 97

disadv of awards

Answer 97

Provides less flexibility — cannot be customised to the needs of a workplace Modern Awards can be complex - have to spend time and money yo understand and explain the award and its contents to employees. the business’ employees will have a lower wage than would be the case if an EA or individual contract was used. less motivated than the employees of competitors who are using an EA or individual contracts This lower wage may also mean the business is unable to attract the highest quality candidates for its positions due to low wages

Question 98

Enterprise Agreements/Agreements

Answer 98

Agreements: A legal document which outlines the wages and conditions of employees and is applicable to a particular business or groups of businesses. Fair Work Commission must review and confirm an Enterprise Agreement.

Question 99

Agreements established during... Collective/Enterprise Bargaining

Answer 99

Collective/Enterprise Bargaining which is the process of negotiation between employers and employees, or their chosen representatives, to reach an agreement regarding their wages and conditions of employment.

Question 100

Individual Contracts

Answer 100

An individual employment contract is a legally binding agreement between an employer and an employee that sets out the employee’s wages and conditions of work. comply with the relevant Award, and must be consistent with the 10 National Employment Standards.

Question 101

adv of enterprise agreements

Answer 101

Very flexible — can be tailored to specific workplace needs. May be used to attract talented or highly skilled employees to the business.

Question 102

disadv of enterprise agreements

Answer 102

Conditions that are better than the relevant Award may be very expensive for a business. An EA can be very time-consuming to create, due to the collective bargaining process and the need for the FWC to approve the EA before it’s enforceable. Varying pay or conditions of work may result in industrial action.

Question 103

mediation

Answer 103

An impartial third party facilitates discussion between disputing parties to help each side reach a resolution by themselves.

Question 104

explanation of mediation

Answer 104

The third party helps the parties in dispute to work towards their own agreement. The agreement will only be legally binding if the parties draw up a contract on the terms of the agreement. Mediators do not act for either of the parties, nor do they advise or decide who is right or wrong. Their main role is to encourage the parties to examine all the issues, preferring to allow the parties to develop the agreement in their own terms.

Question 105

adv of mediation

Answer 105

Positive working relationships are maintained as the parties in dispute are encouraged to work together in reaching a decision. Mediation is voluntary — if both parties have agreed to it, they are both clearly willing to work towards a solution and it’s more likely that this resolution will be a mutually beneficial one that both parties are happy with Resolving a dispute via a mediation is less expensive and time-consuming than resolving the dispute in court or via an arbitration.

Question 106

disadv of mediation

Answer 106

A decision made using mediation may not be legally binding on the two parties meaning that one of the parties or both parties may not honour their commitments. One party may refuse to attend mediation as it is not compulsory to attend — it is also not compulsory to reach agreement. This may result in mediation becoming a waste of time and money.

Question 107

Arbitration

Answer 107

An arbitration is a method of dispute resolution that involves an impartial third party helping the parties resolve a workplace dispute by presiding over a private hearing of the dispute, and making a binding decision as to how the dispute is to be resolved. is a means of dispute resolution involving an independent third party hearing submissions from the parties in dispute and then making a decision in favour of one or the other.

Question 108

explanation of arbitration

Answer 108

Decision will be binding on the parties. Arbitration is usually a formal process in which both parties present their evidence to the arbitrator. The arbitrator then determines which party is more in the right and makes a binding decision.

Question 109

adv of arbitration

Answer 109

Arbitrations are compulsory to attend. The dispute will normally be resolved much more quickly and is less costly than if it was taken to court.

Question 110

disadv of arbitration

Answer 110

Parties have reduced control over the outcome, as the decision will be imposed by the arbitrator. The process may be more time consuming and more expensive than other dispute resolution methods, depending on the nature of the dispute and how the arbitration is conducted.

Question 111

similarities between mediation and arbitration

Answer 111

formal methods of dispute resolution involves the use of external third parties in order to help the conflicting parties come to an agreement When used to resolve workplace disputes, both methods tend to be private and confidential.

Question 112

differences between mediation and arbitrationes

Answer 112

the mediator does not provide any advice/suggestions or decide who is right or wrong but the arbitrator determines which party is right and makes a binding decision arbitration is compulsory to attend mediation is not Decisions made in arbitration by the arbitrator are legally binding and enforceable however a decision made in mediation is not necessarily legally binding.

Question 113

awards and agreements similarities

Answer 113

business must uphold requirements of employment as stated through NES contractual disputes are dealt by FWC

Question 114

awards and agreements differences

Answer 114

awards applicable to an entire industry is developed by FWC employees not always represented by union in the process agreements leaves employees better off than the relevant award reviewed and approved by FWC developed through voluntary negotiation

Question 115

Transition and entitlement differences

Answer 115

transition are not legal obligations and are offered above and beyond a business' legal requirements whereas entitlements are required legally failure = serious legal action transition takes into account socially responsible practices whereas entitlement generally do not as they abide by minimum standards transition includes activities such as workshops for... whereas entitlements cover areas such as outstanding leave entitlements, long service leave.

Question 116

Transition and entitlement similarities

Answer 116

they both require a need for union involvement both contribute to a business' labour expense both part of the termination process both may be built into redundancy packages