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Human Resources Flashcards

1
Q

Strategic role of human resources

A

The relationship between an employer and employee to achieve the strategic goals of (long-term; profit and market share)

Strategic challenges include:

  • developing and retaining talented staff
  • ethics and CSR
  • improving leadership development
  • managing an agewing workforce
  • the increased role of technology
  • increased outsourcing
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2
Q

Interdependence with other KBF’s

A

“find them, grow them, leep them”

  • Promote strong staff involvement ∴ high levels of engagement
  • Workplace designed to encourage interaction ∴ productivity and efficiency, leading to growth, performance and success

Finance:

  • The funds provide the maintenance and monetary benefits, alongside redundancy and payrolls
  • Attract new employees

Operations:

  • Having the people with the most efficient skills
  • Limit bottlenecks
  • Efficient customer service
  • Employees have adequate expertise and skills

Marketing:
- Customer service is part of the people and process of the business that comes about via the employees

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3
Q

Outsourcing

A

Hiring another business to complete non-prime functions

Human resources functions

  • Review business strategies to transform the business using independent consultants
  • Recruitment, induction, leadership training and payroll
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4
Q

Outsourcing - using contractors

A

Using contractors
- To create cost savings or gain greater access to expertise and skills to improve competitiveness

Domestic subcontracting:

  • Allows a focus on their CBF’s while the external specialists provide detailed assistance on non-CBF’s
  • Potential for businesses to improve the quality and productivity of their services
  • More consistent e.g. cleaning, payroll

Global subcontracting

  • Process outsourcing: focuses on repetitive, easily measures and document work
  • Project outsourcing: found in areas such as HR, marketing, design and IT

Risks of global outsourcing

  • Difficulty in quality control and reliability of the service
  • Cultural differences such as language
  • Security issues such as the sharing of confidential information
  • High labour turnover rates
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5
Q

Outsourcing - adv. and disadv.

A

Advantages

  • Expand capacity/flexibility
  • Improve quality
  • Save costs
  • Access new networks
  • Conserve capital
  • Allow business to focus resources on main activities
  • Help in managing complex issues
  • Transform culture
  • Improve legal compliance
  • Train staff
  • Access experts, practice management systems & research

Disadvantages

  • Less integrated organisation
  • Quality may fall
  • Consultants may not understand your culture
  • Costs may increase
  • Hidden costs
  • Morale and motivation may be damaged
  • Less face-to-face client contact
  • Reduce business learning through reliance on experts
  • Loss of security and confidentiality of information
  • A global issue takes place, lead times increase
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6
Q

Stakeholders - employers

A
  • Control over employees
  • The responsibility for payment of wages/salaries/benefits
  • Power to dismiss employees
  • With poorly managed HR employers suffer from low productivity, higher costs and possible industrial action
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7
Q

Stakeholders - employees

A
  • Control of workplace location, how they perform work and extent of supervision
  • With poorly managed HR lower wages and a less safe, rewarding and interesting workplace
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8
Q

Stakeholders - employer associations

A
  • Represent and assist employers, particularly in the making of awards
  • Assist with log of claims(demands from workers)
  • E.g. Australian Medical Association
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9
Q

Stakeholders - unions/employee associations

A
  • Trade Unions represent employee interests, usually in wages, conditions and safety.
  • eg CFMEU, TWU, AWU (declining as HR is becoming more valued therefore unnecessary membership, they are expensive
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10
Q

Stakeholders - government organisations

A
  • Industrial relations act - legislative power, legislation passed by parliament
  • Industrial relations regulations - executive power, made by governor/ governor-general on advice of government/ government departments
  • Case for breach of award conditions brought against employer - judicial power, case brought before tribunal / court
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11
Q

Stakeholders - society

A
  • Their jobs
  • Increase in use of contractors to supply of manufacture oofs and services while creating opportunities globally for suppliers with cost effective operations
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12
Q

Legal - the current legal framework

A
  • the employment contract - common law(rights and obligations of employees and employers), minimum employment standards, minimum wage rates, awards, enterprise agreements, other employment contracts
  • work health and safety and workers compensation
  • anti discrimination and equal employment opportunity
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13
Q

Legal - the current legal framework - common law

A

Common law(rights and obligations of employers and employees)

  • Developed by courts and tribunals
  • Both parties have basic obligations in any employment relationship

RIGHTS of EMPLOYEES

  • To be paid
  • Safe working space
  • Paid superannuation
  • Access to leave
  • Workers compensation

RESPONSIBILITY of EMPLOYEES

  • Complete set work to a satisfactory standard
  • To follow the policies and procedures of the business
  • Not intentionally sabotage the business

RIGHTS of EMPLOYERS

  • Address any working issues
  • Notified of leave
  • Notified of separation
  • Enforce their policies

RESPONSIBILITY of EMPLOYERS

  • Provide training and work
  • Grant leave
  • Provide safe working space as per WHS act 2011
  • Paying all staff accordingly
  • Duty of care
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14
Q

Legal - the current legal framework - minimum employment standards

A
  • Fair Work Act 2009 (AUS)
  • 10 national employment standards (NES)
    1) Requests for flexible working arrangements(who - carers, parents, disabled, domestic violence, 55+)
    2) Parental leave and related entitlements(12 months unpaid leave, if you have worked there for a year, right to request)
    3) Annual leave
    4) personal/carer’s leave, compassionate leave - 2 days(bereavement leave)
    5) Community service leave - SES, jury duty
    6) Long service leave
    7) Public holidays
    8) Notice of termination and redundancy pay - 4 weeks notice before occurring
    9) Provide information - there rights and responsibilities
    10) Maximum weekly hours - 38
  • Must be provided by employers and state the minimum conditions for employees
  • Planned to provide a safety net for employees
  • Provide a basis from which modern awards and enterprise agreements are constructed
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15
Q

Legal - the current legal framework - minimum wage

A
  • is determined by awards, enterprise or national minimum wage
  • every year it is review by the Fair Work Commission’s Minimum Wage Panel
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16
Q

Legal - the current legal framework - awards

A
  • Legally enforceable, formal agreements made collectively between employers and employees and their representatives at the industry level
  • Modern awards are a key feature of the current industrial relations system
  • Award simplification has recently undergone to reduce confusion surrounding proper minimum standards
  • Apply on top of NES and act as a basis for negotiation
  • Contents of modern awards:
    • Base pay rates
    • Overtime and penalty rates
    • Allowances
    • Leave and leave loading
    • Hours of work
    • Superannuation entit.
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17
Q

Legal - the current legal framework - enterprise agreements

A
  • Collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment
  • According to Fair Work Act 2009:
    • Single-enterprise; single employer and group of employees
    • Multi-enterprise; two or more employers and group of employees
    • Greenfields; either of above relating to a new enterprise
  • Covering pay rates, penalty rates, overtime, allowances, hours and leave
  • Must be approved by Fair Work Commision BOOT(better off overall test)
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18
Q

Legal - the current legal framework - other employment contractors

A

Individual contract:
- particularly common in private sector and non-unionised industries

Casual contract:
- own employment agreements - do not get paid leave

Independent contractors:
- usually outsourced and hired by businesses

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19
Q

Legal - work health and safety

A

Under the WHS Act 2011 businesses are required to:

  • Ensure the health, safety and welfare of employees by providing a safe system of work
  • Take steps to ensure that people on-site who are not employers are not exposed to various risks
  • Take reasonable care for the health and safety of others, cooperate with employers and meet WHS requirements
  • Establish health and safety committees in workplaces with more than 20 employees or ID directed by SafeWork NSW
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20
Q

Legal - worker’s compensation

A

Worker’s compensation: provides a range of benefits to an employee suffering from an injury or disease related to their work.
All workers compensation is administered by SafeWork NSW

All employers must:

  • Take out a policy with a licensed insurer
  • Keep time and wage records, a register of injuries and complete accident and internal investigation and investigation forms
  • Establish, in consultation with the insurer and the employee’s doctor, an injury management plan
  • Pass on compensation to the person entitled as soon as possible
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21
Q

Legal - anti-discrimination

A
  • Designed to protect employees from direct and indirect discrimination in the HR process
  • Prevent discrimination and avoid fines, employers need to comply with legislation and audit all their policies and practices to ensure they don’t discriminate

Anti-discrimination laws include:

  • Human Rights and Equal Opportunity Commission Act 1986
  • Affirmative Action (Equal Employment Opportunity for Women) Act 1986
  • Sex Discrimination Act 1984
  • Anti-Discrimination Act 1977(NSW)

Illegal to take adverse action in employment of the grounds of:

  • Race, sex, sexual preference, colour, age
  • Physical or mental disability
  • Religious faith or politics

The anti discrimination act was designed to protect employees from direct and indirect dissemination in the human resources process. To prevent discrimination and avoid fines, employers need to comply with legislation and audit all their policies and practices to ensure they don’t discriminate

STRATEGIES

  • Create a workplace free from discrimination
  • Write and communicate policies to prevent discrimination and harassment
  • Making sure all policies and procedures are clearly documented and accessible
  • Training managers and staff to in cultural diversity issues
  • Appropriating a grievance officer and specifying grievance procedures
  • Regularly evaluating record keeping, the implementation and effectiveness of policies, workplace culture and action to resolve complaints
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22
Q

Legal - equal employment opportunities

A
  • Refers to equitable policies and practices in recruitment, selection, training and promotion
  • Ensures the best person for the job ios choose, ensuring businesses employee people with skills relevant to the business needs and positive work environment is promoted
  • Level of equity in a business is reflected through opportunities for women and minority groups
  • Employers with more than 100 employees must develop an affirmative action program and provide a progress report to the Workplace Gender Equality Association (WGEA)
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23
Q

Economic influence

A

Boom → high employment, require a pay increase ∴ conflict
Recession/bust → not much employment
- During a peak/expansion employees compete for higher wages
- Demand for labour is determined by the demand for goods and services in an economy
- If labour shortages occur during periods of economic growth, employers compete for employees by offering higher wages
- Unions may also use stronger bargaining power to demand wage increases, however this places upward pressure on costs and prices which causes inflation. Therefore, businesses are forced to reduce the size of their workplace and limit their capacity to increase wages
- Structural change → removal of international trade barriers has increased competition and growth in service sector and decline in manufacturing (technology)
- Globalisation → employee shortage e.g. hospitality, tourism and some trades due to illegal immigrants taking cheaper jobs, uni students only allowed to work 20 hours
- Current conditions - covid

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24
Q

Technological influence

A
  • The development of new and innovative technologies has been a major source of improvement in productivity, communication and competition between businesses
  • Technological change has caused the nature of production to change, services change and new jobs are created while others are made redundant. However, the use of new technological communications has increased the need for ongoing training programs and new protocols to ensure work life balance is maintained
  • Technological advancements allows employees to work from home
  • Need for ongoing training programs → confidence
    Work life balance → protocol for when returning work
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25
Q

Social - changing work patterns, living standards influence

A

CHANGING WORK PATTERNS

  • With the growth in part time and casual work there has been a growing demand for flexibility and work life balance
  • Businesses who offer greater flexibility experience more casualisation of the workplace
  • Career flexibility and jobs mobility(technology)
  • Increased participation rates for women
  • Ageing in the workforce
  • Early retirement(moving to part time/gradual)

LIVING STANDARDS

  • Australia has very high standards in regard to WHS, wage increases, performance bonuses, and fringe benefits
  • A desire for high living standards has placed a strain on achieving a work life balance due to the loss of weekend as employees need to work extra hours
  • Social expectations
  • Excellent working conditions (leave, bonuses)

Disadvantages:

  • Flexible working hours/shifts has come at the cost of ‘weekends’ and loss of penalty rates
  • Blurring home work life
  • Lack of support for carers
  • Increasing income inequality (real wages growth has been behind company profit growth)
  • Uncertainty of casual work/entirely - no long periods of time
  • Women’s pay is still 82c to the mans $1
  • Financial pressure (reduction of government benefits

Influences of society:

  • workplace safety
  • paid paternal leave
  • work/life balance
  • ageing workforce
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26
Q

Ethics and CSR influence

A

Ethical business practices → practices that are socially responsible, morally right, honourable and fair
Code of conduct → is a statement of acceptable and unacceptable behaviours in a business
Code of ethics → is a statement of a firm’s value and principles
- Ethical and legal issues in the workplace include work overload, workers compensation, discrimination and unethical work practices and conditions
- Creates a positive image of the business, pleasant work environment that is free form harassment and discrimination
- Improves staff retention and absenteeism rates, and legal compliance, fines, claims and WHS costs are also reduced

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27
Q

Acquisition

A

Attracting and recruiting the right staff for roles in a business.

  • requires a skill audit to identify gaps in the bus.
  • analysing the internal environment, focusing on bus. goals and culture, and the external environment , focusing on the economic conditions
28
Q

Acquisition - recruitment

A

The process of locating and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies at the right cost.

  • Evaluating and hiring qualified applicants who are motivated
  • A fair, non-discriminatory and legally compliant selection policy and process
  • Giving applicants a realistic understanding of their job description and responsibilities
  • Using strategies that will be useful for later selection and placement decisions
29
Q

Development - induction

A

The process of developing and improving the skills, abilities and knowledge of staff through induction, ongoing training and further professional development.

  • Introduction into the business → introducing into role of the business, job role → what you should be doing
  • Hidden things during induction → culture, values, and priorities of the workplace
  • Can be done through team leader, co-workers, HR development, online
  • Builds confidence
30
Q

Development - training

A
  • Develop an employee’s knowledge and skills
  • Improve their work performance → by giving them extra skills but relies on confidencer
  • Train the staff if there is areas of weakness
  • Adapt to change and stay ahead of competition
  • Can be done internally or externally
  • Also training in safety procedures → eg how to use fire extinguisher
31
Q

Development - organisational development

A
  • Todays structures are flat
  • Behavioural = flat
  • Create job rotation → provides variety, motivation, not just relying on one person
  • Job enrichment → increasing the employees responsibilities → they feel like they are on the road to promotions
  • Job sharing → to people share the same job
  • Managing teams → should be self managed
32
Q

Development - mentoring and coaching

A
  • Motivate and develop leadership
  • Mentoring → mutual agreeance, more like a friendship, can develop naturally, someone who is experienced giving advice, can transfer the business culture
  • Coaching → structured role, look at goal orientated and developing skills, can be external
33
Q

Development - personal appraisal

A
  • To assess the performance of employees
  • Give a set of standards and tohey tick off, requires a self reflection
  • Reflection for employees so they can improve
  • Feedback for employee how to improve
  • Can determine pay raise or bonus
  • Can help with promotion
  • Identifies areas of the business where people might need training
34
Q

Maintenance - communication and workplace culture

A

The process of managing the needs of staff for health and safety, industrial relations, and legal responsibilities, including compensation and benefits of all staff.

  • Poor communication→ conflict and high turnover rates
  • Effective communication methods include: meetings, staff bulletins, social functions ∴ motivated staff
  • Implement strategies that focus on building trust and direct communication ∴ preventing conflict and build positive workplace culture
35
Q

Maintenance - employee participation

A 
Must be done to improve communication, empower employees, develop their commitment to improving quality and efficiency
Strategies include:
- Membership of board of directors
- Through ownership
- Joint consultative committees
- In collective bargaining
- Team briefings
- Surveys and feedback from performance interviews
36
Q

Maintenance - benefits

A
  • monetary and non-monetary

- e.g. flexible hours, paid training, travel allowances, health insurance, gym memberships, company car

37
Q

Maintenance - legal compliance and CSR

A
  • Minimising the exposure of risks by implementing a range of proactive and preventative strategies in WHS
  • ∴ reducing misconduct in employment relationship ∴ reducing damage to reputation
38
Q

Seperation

A

The process of employees leaving voluntarily or involuntarily through dismissal or retrenchment processes

  • Voluntary separation → includes resignation, relocation, voluntary redundancy or retirement
  • Involuntary separation → includes contract expiration, retrenchment or dismissal
  • Redundancy and retrenchment → refers to employees losing their jobs when the employees job or work no longer needs to be done
  • Businesses and employees must ensure that notice and leave entitlements given must comply with laws and industrial agreements
  • When an employee is terminated, the employer must provide a written statement and date confirming the employees termination
  • Have to manage separation appropriately → just as important as acquisition
  • Dismissal(summary)
  • Unfair dismissal
39
Q

Leadership style

A

Refers to the ways that managers communicate with their employees to inspire and motivate them to work together to achieve an organisation’s goals

The different types of leadership styles include

  • Directive
  • Visionary → everyone is on the same page and employees know why decisions are made
  • Affiliative
  • Participative/democratic
  • Pacesetting
  • Coaching
  • Australian culture comes into play
  • Social justice → looking after the underdog and the disadvantaged
  • If people are happy that will want to go work
40
Q

Strategies - autocratic leadership style

A
  • Managers who make quick decisions without staff input usually manager under autocratic leadership style
  • Works in hospitals, armies, in businesses where there is a large amount of people
  • This style is usually suited for unskilled workers where work is highly organised and controlled
  • This style causes problems such as increased absenteeism and staff turnover
  • Aligned with a transactional management style where workers compliance is recognised through financial rewards linked to meeting organisational objectives
41
Q

Strategies - participative or democratic leadership style

A
  • Emphasis a consultative approach between managers and workers who are all engaged in the decision making process
  • Linked to a transformation management style where managers have higher expectations of workers thus, leading to increased levels of job satisfaction
  • Increased level of involvement in the decision making process leads to increased levels of job satisfaction
  • Approach works particularly well when there is an emphasis on higher quality output rather than efficiency
  • Everybody has input
42
Q

Strategies - Job design - general or specific tasks

A
  • Job design is the number, kind and variety of tasks that a workers is expected to carry out in the course of performing their job
  • Some businesses consider internal candidates first as some positions need to be filled immediately, allowing them to be managed at a lower cost. Therefore, the recruitment process needs to be managed carefully to avoid expensive acceptance errors. Thi can be achieved through background checks which is critical to verify qualifications and experience

General tasks:

  • The specific tasks in job design are represented through a scientific management approach
  • This approach is based on specialisation and efficiency using low skilled, cheap labour to increase production volumes and reduce costs

Specific tasks:

  • Job design has expanded and now includes jo enlargement, job rotation and job enrichment
  • Main objective of refining job design through the provision of a weider variety of tasks to improve workers engagement, satisfaction and productivity
43
Q

Strategies - recruitment - general or specific skills

A

General skills

  • Jobs can be customised to suit recruits who can be trained and developed according to the business’ needs and wants
  • General skills include flexibility and versatility, social confidence, positive attitudes, motivation and the ability to work as a team and/ or independently
  • Behavioural (soft) skills are critical to build a successful workforce
  • General skills are also important as many job require people to work independently
  • General skills are more service oriented and human resource managers prefers these skills as they indicate that an employees has the capacity and willingness to learn
  • Ability to work in team
  • Positivity attitude
  • Willingness to learn
  • Social skills
  • Emotional intelligence → have empathy with other people
  • Social justice initiatives
  • Work with a team because of remoteness

Specific skills

  • Specific skills are highly specialised and are required for some jobs within the STEM sectors
  • Short and long term strategies needs to operate simultaneously to ensure staff have the required skills to carry out their work activities
44
Q

Strategies - recruitment - internal or external skills

A

ADVANTAGES of internal:

  • Motivates staff with opportunities
  • Builds commitment and loyalty
  • Staff know culture and operations
  • Leads to promotions in line with goals
  • Recognises and rewards staff
  • Cheaper than external

DISADVANTAGES of internal:

  • Can reinforce negative culture
  • Can lead to rivalry position
  • Need framework and training
  • Need a merit based system
  • Often attracts many —> need to manage successful applicants
  • No new skills
  • No additional knowledge and experience from outside the business
  • Could bing grievances with them

ADVANTAGES of external:

  • Wider applicant pool
  • New ideas, perspectives, and skills may produce better solution to business issues
  • Get specific skills needed which saves on training
  • More diversity in employment
  • Builds organisations ‘brand’ through publicity

DISADVANTAGES of external:

  • Not familiar
  • Spend money on training
  • Long time to get person up to speed
  • Can increase conflict if the position is given to an external individual
45
Q

Strategies - training and development

A

Training → aims to develop skills, knowledge and attitudes that lead to superior work
Development → refers to enhancing the skills of the employee in line with the changing and future needs of the organisation
- Training and development is critical in Australia, especially due to labour market problems such as shortage of skilled labour and increasing level of structura; unemployment.
- Businesses benefit by retaining employees to share their experience and knowledge of the business. To select the type of training and development businesses should implement, they must use systematic processes to evaluate the businesses needs, the supply of these skills in the economy, the damned for these skills and the changing nature and pattern of work
- Must maintain people because you have invested money in them
- Can also train people by sponsoring them to send them overseas, domestically, to a regional offices
- Ensures training is line with the changing nature of work

46
Q

Strategies - training and development - current or future skills

A
  • As the global economy is shifting more towards a service based economy, traditional skills are becoming obsolete and businesses need to consider a range of different options, some options include recruiting staff for specific skills, retaining women through a flexible work structure, or outsourcing and outsourcing function to specialist firm
  • There is a lack of ability to fill the skills deficit as Australia is reliant on immigrants
47
Q

Strategies - performance management

A

Performance management addresses both individual and business performance. By improving individual performance, it will translate into the business’ strategic objective being met. Features of performance management include job design, recruiting the best staff, training and development and rewards.
- Identifies areas for improvement → sometimes can be employees

Benefits of effective performance management:

  • A key element of performance management is the creation of a shared vision of the strategic direction of the business between employers and employees
  • Businesses can do this through the establishment of performance objectives and formal review process
  • The link b/w performance evaluation and employee development ensures that staff remain motivated
  • Helps to create a shared vision of the strategic role of the business
  • The establishment of performance objectives and developing a formula review process. It is the link between performance feedback and employee development so that the staff remain motivated and adequately skilled
48
Q

Strategies - performance management - development

A
  • Improves individual performance through establishing objectives such as reaching sales targets that are consistent with aching the organisation’s goals
  • This is best achieved through year round periodic feedback and shared discussion this is empathetic

Development benefits:

  • Assists with HR planning
  • Plan to overcome weakness in performance
  • Identifies training or legal compliance needs
  • Evaluation of rewards and benefits programs
  • Help identify, motivate and retain talented staff
49
Q

Strategies - performance - administrative

A
  • Assess the progress of a business in meeting its strategic goals and where necessary identifying the areas for improvement, such as establishing new goals or employee performance
  • This method often follows an annual appraisal which is used by management for planning HR functions such as training and development, rewards, pay levels, benefits and performance improvement

Administrative benefits:

  • Higher productivity
  • Better financial performance
  • Helps assess rewards and benefits
  • Builds self efficacy
  • Creates opportunity for feedback
50
Q

Strategies - rewards

A

Rewards systems can reinforce a business’ strategies that facilitate change or support desirable corporate values, such as customer orientation → trying to reinforce employees by giving them something as an incentive to change or something they are doing well → monetary or non-monetary

51
Q

Strategies - rewards - monetary and non-monetary

A
  • Remuneration → Financial and nonfinancial benefits that employees receive in return for their work
  • Monetary rewards → reflected in pay or having financial value
  • Non monetary rewards → do not have financial value eg social activities, retirement planning, car spot
  • A business’ reward policies assist in reinforcing its corporate culture and values, and achieve its long term and strategic objectives. Businesses who have a sustainable competitive advantage over its competitors are more likely to offer effective remuneration activities. This is because rewards ats as a significant tool to motivate staff in attempt to increase their productivity and efficiency
52
Q

Strategies - rewards - individual or group

A
  • Rewards are often related to individual performance, however, this can lead to conflict and rivalry if not managed effectively. This increasing use of group and team based structures has increased the need for cooperation and made it difficult to distinguish individual performance. Therefore, businesses may implement gain sharing plan and group incentive scheme to support a team based culture
  • Additionally key issues for HR managers to consider in designing a reward and benefits system for all employees include economic conditions, organisation objectives of rewards, rewards and benefits of competitors, relevant awards and agreements and the profitability and viability of the business
53
Q

Strategies - rewards - performance pay

A
  • Is remuneration that is based on distributing rewards according to individual employee performance

Key issues for HR managers to consider in designing a reward and benefits system for individual employees includes:

  • Performance related → incentive plans for performance above standards or criteria, bonuses, piece rates, commission, production related incentives
  • Job related → role and level of responsibility, scope of supervision, base pay, interpersonal skills, experience, value to the company
  • Other individual considerations → group incentives, employee values

Rewards systems should aim to motivate staff and be equitable, simple and cost effective. A rewards systems that is not clean or can cause internal conflict, loss of trust and decreased motivation

54
Q

Strategies - global - costs, skills, supply

A

The reason Australian businesses export labour is to reduce costs, therefore becoming cost leaders, as they are paying less for their labour supply.

  • IT skills are cheaper
  • Ethical issue with corporate social responsibility by exploiting workers therefore a compliance vs social justice issue
  • Joining bencher - collaborate with business overseas by moving production overseas - e.g. Bali surf schools
  • Shortage of labour due to COVID therefore outsources

Expanding their business and selling their products overseas
- UGG australia’s

55
Q

Strategies - workplace disputes

A
  • Industrial disputes
  • strikes
  • lockouts/lockdowns
  • picket/picket fence

Major issues relating to workplace disputes include:

  • remuneration
  • employment conditions
  • job security issues

Matters outside workplace agreements causing disputes are:

  • health and safety
  • management policy
  • union issues
  • political or social protests

Results of disputes:

  • high absenteeism
  • high-staff turnover
  • low productivity
  • extreme cases - workplace accidents - physical fights, complacency, legal claims
56
Q

Strategies - work place disputes - resolution - negotiation

A

Negotiation (within the business)

Negotiation → is a method of resolving disputes when discussions between the parties result in a compromise and a formal or informal agreement

  • Negotiation benefits parties by increasing their knowledge about the company policy, business objective, worker’s concerns, or other issues about organisational change
  • It is the most common method of dispute resolution as most disputes are resolved by negotiation
  • The options available to the parties involved is determined by the nature of industrial agreement and the business’ goals
  • Formal or informal agreement
57
Q

Strategies - work place disputes - resolution - mediation

A

Mediation (external)

Mediation → is the confidential discussion of issues in a non threatening environment in the presence of an objective third party

  • The third party present in negotiation may be an independent party agreed upon by both parties or it can be a representative from a business
  • Confidential discussion in neutral environment
  • Becoming very popular in society:
    • Cheaper than court
    • Less stressful
    • De-escalates the situation
  • Not legally binding
58
Q

Strategies - workplace disputes - resolution - grievance procedures

A

Grievance procedures → are formal procedures generally written into an award or (enterprise) agreement that states the agreed processes to resolve dispute in workplace

  • Written complaint → goes up the chain/flow chart of what happens next
59
Q

Strategies - workplace disputes - resolution - involvement of courts and tribunals

A

When disputes are not solved by negotiation and mediation, the Fair Work Commission appoints a conciliatory where they call a conference to help both sides reach an agreement

  • Conciliation → is a process where a third party is involved to help the other two parties reach agreement. However, if conciliation (similar to mediation) fails the parties move onto arbitration
    Two parties must come up with the solutions → what they think should happen, not legally binding
  • Arbitration → is a process where a third party is involved to hear both sides and makes a legally binding decision
  • Common law → civil law suits
60
Q

Effectiveness indicators

A
  • corporate culture
  • benchmarking key variables
  • changes in staff turnover
  • absenteeism
  • accidents
  • industrial disputes
  • workers satisfaction
61
Q

Indicators - corporate culture

A

The values, ideas and expectations and beliefs shared by members of the business.

Must maintain a balance between success and employees

Poor culture reveals:

  • High staff turnover and absenteeism
  • Accidents
  • Poor customer service
  • Dispute of internal conflict

Businesses can build positive workplace by introducing:

  • Fun atmosphere
  • A culture of trust
  • High levels of training
  • High quality personal relationships
62
Q

Indicators - benchmarking key variables

A

A process in which indicators are used to compare a business performance between internal sections of a business or between businesses. Aims to initiate change and foster improvement within the business.

  • Informal benchmarking: strategies such as networking through informal discussion with colleagues in other businesses
  • Performance benchmarking: compares performance levels of a process with other businesses
  • Best practices benchmarking: compares level with best practice businesses in specific areas using a structured process to gain skills and knowledge
  • Balance scorecard benchmarking: measures whether the activities of a business are meeting its objectives established in the strategic plan

Care must be taken and the business must not focus solely on low costs.

63
Q

Indicators - changes in staff turnover

A

Staff turnover: separation, either voluntary or involuntary. It is shown as a % of total staff numbers. Australia averages 12-15%. This fluctuates depending on the economic cycle and other influences such as COVID19.

  • Turnover varies between industries (hospitality having typically high turnovers…why?) - the pull and push factors of the industry.
  • The costs of high labour turnover are great and include the payout of entitlements, recruitment, induction and training of new staff and lost time and productivity.
  • Some level of turnover is good for business - new ideas, innovation etc. - balanced required
  • Not good for a business’ reputation
64
Q

Indicators - absenteeism

A

A worker who neglects to turn up for work when they are supposed to.

  • High levels of absenteeism and/or lateness may indicate that workers are dissatisfied or that there is conflict within the workplace.
  • Firms need to have much higher staffing levels to cope with high absentee levels.
    • Therefore, revenue is lost as work is disrupted and can lead to lower productivity and higher labour costs.
    • Absenteeism increases lead times and bottlenecks
  • Job satisfaction is high on the list of reasons for absenteeism in the workplace. Poorly designed jobs and a lack of a strong employer–employee relationship contribute to workers being absent.
65
Q

Indicators - accidents

A

Associated with:

  • Direct costs (medical bills, compensation and insurance)
  • Indirect costs (wages, lost time, contamination, wastage, production delays, repairs, fines, lower morale)

Minimise Accidents:

  • Regular safety audits and comprehensive safety programs
  • Build a culture of safety and communicate about health and safety
  • Provide careful induction and regular ongoing training
66
Q

Indicators - industrial disputes

A

→ common in large businesses where relationships and communication between employees and management tend to be more impersonal.

Types of Industrial Conflict:

  • Overt Manifestations
  • Employees; pickets, strikes, work bans, boycotts.
  • Employers: lockouts, standowns, dismissals

Covert Manifestations

  • Employees: absenteeism, high labour turnover, high defect rates, reduced productivity.
  • Employers: discrimination, harassment, lack of cooperation, exclusion.

Indications of Disputes:

  • Work-Bans: a refusal to work
  • Work-to-Rule: employees refuse to perform any duties additional to the work they normally are required to perform.
  • Go Slow: employees work at a slower rate than normal
  • Sabotage: involve employees taking action to harm or destroy the image of a business.
67
Q

Indicators - workers satisfaction

A

→ employee satisfaction surveys help employers measure and understand how their staff feel about their work, their management and the culture of an organisation.

Business (4 decks)

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