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Year 12 VCE Business Management > Unit 3: Area of Study 2 - Managing Employees > Flashcards

Unit 3: Area of Study 2 - Managing Employees Flashcards

1
Q

Business Objective

A

Is a goal that a business sets out to achieve in a given time period

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2
Q

The Relationship Between Managing Employees and Achieving Business Objectives

A

For the best results, it is important that the Employees are performing to their potential. This can be achieved by ensuring they are engaged and motivated.

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3
Q

Ways Businesses can Help Employees Achieve Business Objectives (List 2)

A
  • Align the Employees with the Business Objectives
  • Ensure the Employees are motivated
  • Ensure the Employees receive training when needed
  • Measure and manage the Employees’ performance
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4
Q

Human Resource Management

A

Is the effective management of the formal relationship between the Employer and Employees

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5
Q

Maslow’s Hierarchy of Needs

A

Suggests that Employees have 5 levels of needs which can be rearranged according to their importance in a Hierarchy. The lower levels must be met before an individual can move to the needs that are higher in the Hierarchy

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6
Q

Levels of Maslow’s Hierarchy of Needs (From Bottom to Top)

A
  • Physiological Needs
  • Safety and Security Needs
  • Love and Belonging Needs
  • Self-Esteem Needs
  • Self-Actualisation Needs
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7
Q

Maslow’s Hierarchy of Needs: Physiological Needs

A

Is where the Employees are motivated by fair pay and working conditions

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8
Q

Maslow’s Hierarchy of Needs: Safety and Security Needs

A

Is where the Employees are motivated by knowing they have job security and a safe workplace

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9
Q

Maslow’s Hierarchy of Needs: Love and Belonging Needs

A

Is where the Employees are motivated to build strong relationships within the business

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10
Q

Maslow’s Hierarchy of Needs: Self-Esteem Needs

A

Is where the Employees are motivated to build a large amount of self-esteem within themselves. Recognition and responsibility can help achieve this

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11
Q

Maslow’s Hierarchy of Needs: Self-Actualisation Needs

A

Is where the Employees are motivated by aiming to achieve their full potential

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12
Q

Advantages of Maslow’s Hierarchy of Needs (List 2)

A
  • It recognises that every Employee’s needs are different and can use strategies to satisfy those needs and improve motivation
  • The theory is easy to understand and apply at a basic level
  • It is relevant in all fields of employment
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13
Q

Disadvantages of Maslow’s Hierarchy of Needs (List 2)

A
  • Based on the theory, we assume that if an individual lacks the basic amenities or are in an unsafe working environment, they will never unlock the higher needs in the Hierarchy
  • It cannot be applied uniformly because each Employee is at a different level on the Hierarchy
  • It is time-consuming because the Human Resource Manager needs to consult each Employee
  • It Fails to consider cultural differences because people in certain cultures place the importance of needs in a different order
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14
Q

Locke and Latham’s Goal-Setting Theory

A

Suggests that Employees are motivated by clear and challenging goals in addition to feedback about their achievement

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15
Q

Attributes of Locke and Latham’s Goal-Setting Theory

A
  • Clarity
  • Challenge
  • Commitment
  • Feedback
  • Task Complexity
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16
Q

Locke and Latham’s Goal-Setting Theory: Clarity

A

The goals need to be clear, specific and clearly understood. The goals also need to be measurable and developed within a clear timeframe, with an end date for when the goals need to be completed by

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17
Q

Example of a Clear Goal in Relation to Locke and Latham’s Goal-Setting Theory

A

To increase sales by 8% by the next quarter

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18
Q

Locke and Latham’s Goal-Setting Theory: Challenge

A

Suggests how the goal should be challenging but still achievable by the Employee and should be relevant in being able to achieve Business Objectives. The theory shows how there is a direct correlation between how challenging a goal is and how much motivation an Employee has

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19
Q

Locke and Latham’s Goal-Setting Theory: Commitment

A

The more committed an Employee is and the more say they have in the goal, the more motivated they will be to work towards the goal and the more committed they will be in achieving that goal

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20
Q

Locke and Latham’s Goal-Setting Theory: Feedback

A

Shows how regular constructive feedback helps keep the Employee on track to achieving the goal. Feedback can either be formal or informal

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21
Q

Formal Feedback

A

Is feedback where the Employer organises a meeting to provide the Employee with feedback

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22
Q

Informal Feedback

A

Is feedback where an Employer meets with the Employee at lunch or during their break to provide them with feedback

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23
Q

Locke and Latham’s Goal-Setting Theory: Task Complexity

A

Refers to how the goal should be challenging enough to motivate the Employee, but not too challenging that the Employee is overwhelmed. Deadlines for the goals have to be set

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24
Q

Advantages of Locke and Latham’s Goal Setting Theory (List 2)

A
  • It is a clear way of measuring an Employee’s performance against Business Objectives
  • It allows for Employee Feedback and may improve the relationship between the Manager and Employee
  • Setting goals that are clear and specific,
    challenging but not overwhelming, will motivate
    Employees and improve their performance, thereby contributing to Business Objectives
  • 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 Managers work with each Employee to collaboratively set goals and provide feedback
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25
Q

Disadvantages of Locke and Latham’s Goal-Setting Theory (List 2)

A
  • Time-consuming goals may result in Employees having a hard time remaining motivated and the tasks will eventually seem unimportant
  • Employees that lack skills to perform actions for achieving goals may lead to goal-setting failure
  • Failing to meet a goal could be detrimental to an Employee’s confidence
  • Employees may focus so intently on their goals
    that they ignore other aspects of their job
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26
Q

Similarities Between Maslow’s Hierarchy of Needs and Locke and Latham’s Goal-Setting Theory (List 2)

A
  • 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 it is one goal at a time and Maslow is one step in the Hierarchy at a time
  • The successful achievement of a goal in Locke and
    Latham’s Goal- Setting Theory is similar to meeting the Self-Esteem and Self-Actualisation needs in Maslow’s
    Theory
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27
Q

Differences Between Maslow’s Hierarchy of Needs and Locke and Latham’s Goal-Setting Theory (List 2)

A
  • Maslow’s Theory has to be achieved in order whilst the Goal-Setting Theory does not
  • Maslow’s Theory is ongoing and long-term whilst the Goal-Setting Theory is more short-term because when a goal is achieved, the process ends
  • 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
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28
Q

Lawrence and Nohria’s Four Drive Theory

A

Suggests that all people have 4 major Drives that need to be satisfied in order to be motivated

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29
Q

The Four Drives in Lawrence and Nohria’s Theory

A
  • Acquire
  • Bond
  • Learn
  • Defend
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30
Q

Lawrence and Nohria’s Four Drive Theory: Acquire

A

Relates to how an individual is driven to gather Tangible items such as clothing and also status and power

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31
Q

Lawrence and Nohria’s Four Drive Theory: Bond

A

Relate to how an individual wants to feel as though they ‘belong’ in the business and is driven to seek strong relationships within the workplace

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32
Q

Lawrence and Nohria’s Four Drive Theory: Learn

A

Relates to Employees have a drive to satisfy their curiosity and to develop understandings of their environment, which is done by the drive which pushes the Employees to collect information and to understand how things work

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33
Q

Lawrence and Nohria’s Four Drive Theory: Defend

A

Relates to how Employees have a desire to remove threats to their safety and to protect those who are closest to them. The aim of a business is to create a work environment where the Employee doesn’t need to defend themselves

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34
Q

Advantages of Lawrence and Nohria’s Four Drive Theory (List 2)

A
  • The Theory is very adaptable to complicated environments and situations
  • When all Drives are being applied by Managers for Employees, the motivation levels are high and Business Objectives will be achieved
  • The Four Drives will convert into effort that is
    directed at improving behaviour, thereby improving business performance and achieving Business Objectives
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35
Q

Disadvantages of Lawrence and Nohria’s Four Drive Theory (List 1)

A
  • Individual Employees have a unique Four Drive motivational profile
  • Since all Employees are different, one strategy of the Theory cannot motivate all Employees
  • Other drives besides the four outlined by Lawrence
    and Nohria may exist
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36
Q

Similarities Between Maslow’s Hierarchy of Needs and Lawrence and Nohria’s Four Drive Theory (List 1)

A

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

  • In both Theories it is important that the Manager understands the needs of their Employees
  • Both Theories are primarily focused on employees
  • In Locke and Latham’s Theory, Employees have a significant role in setting goals and in Lawrence and Nohria’s theory, what drives the Employees is at the centre of achieving required levels of motivation
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37
Q

Differences Between Maslow’s Hierarchy of Needs and Lawrence and Nohria’s Four Drive Theory (List 1)

A
  • In Locke and Latham’s Theory, a person is usually pursuing one specific goal at any given time, while Lawrence and Nohria’s Theory assumes that a person needs to satisfy all Four Drives simultaneously
  • 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
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38
Q

Motivation Strategies

A
  • Performance-Related Pay
  • Career Advancement
  • Investment in Training
  • Support
  • Sanction
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39
Q

Motivation Strategy: Performance-Related Pay

A

Is where an Employee receives a financial reward based on them meeting or exceeding performance standards

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40
Q

Advantages of Performance-Related Pay (List 2)

A
  • Can provide immediate motivation
  • Rewards the best performers in the business
  • Can improve productivity levels within the business
  • Provides a direct financial reward to an Employee
  • It is a Tangible way of recognising achievement
  • Encourages goal-setting not to be too hard
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41
Q

Disadvantages of Performance-Related Pay (List 2)

A
  • It is often a short-term motivator
  • Generates a ‘competition-based’ culture
  • Reduces equality in Employees’ pay
  • Can cause resentment between Employees
  • Can demotivate if goals are too challenging
  • Difficult to measure productivity levels in some types of jobs
  • A business may not be able to afford Performance-Related Pay
  • Not all employees will be motivated by pay
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42
Q

Performance-Related Pay: Short-Term Motivation

A

More money may motivate Employees in the short-term to work harder and achieve goals

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43
Q

Performance-Related Pay: Long-Term Motivation

A

When financial rewards become an ongoing strategy, long-term motivation can occur

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44
Q

Motivation Strategy: Career Advancement

A

Is where an Employee is given the opportunity to take on greater responsibilities in the business

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45
Q

Forms of Career Advancement (List 2)

A
  • Increased pay
  • Promotions
  • Fringe benefits
  • Increased responsibilities
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46
Q

Advantages of Career Advancement (List 2)

A
  • Helps the business retain talented Employees
  • Satisfies the 3 higher needs of Malsow’s Hierarchy
  • Employees are rewarded for their past performances
  • Allows a way of keeping valuable and experienced Employees
  • Will satisfy Employees who desire a sense of achievement or extra responsibility
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47
Q

Disadvantages of Career Advancement (List 2)

A
  • It is difficult to promote all Employees
  • May create Employee rivalries
  • There is a lack of outside perspective brought into the business
  • Employees may be promoted beyond their abilities
  • Employees may have to compete for a limit number of promoting positions, creating and rivalry with the business creating low job satisfaction and motivation
  • Promotion positions cannot just be established for the sake of promoting employees, which would contribute to higher costs. Positions must have a real purpose
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48
Q

Career Advancement: Short-Term Motivation

A

By providing the possibility of a promotion, motivation can increase in the short-term because it gives Employees something to strive towards

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49
Q

Career Advancement: Long-Term Motivation

A

Employees may see the position they would like to be in the long-term and set out a career pathway

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50
Q

Motivation Strategy: Investment in Training

A

Is when a business puts money or time into teaching new skills to Employees

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51
Q

Advantages of Investment in Training (List 2)

A
  • It helps build a learning culture
  • It helps retain valued Employees
  • It enables the Employees to perform at a higher level
  • Shows the Employee that the business values them
  • Can give a sense of job security for Employees
  • Improves the skills of the employees in both the short-term and long-term
  • Improving employee skills can satisfy higher level needs in Maslow’s Hierarchy of Needs, as well as providing goals for Locke and Latham’s Goal Setting Theory and satisfying some of the four drives in Lawrence and Nohria’s Four Drive Theory
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52
Q

Disadvantages of Investment in Training (List 1)

A
  • Training Employees is often expensive
  • The business may train the Employee, but afterwards they may leave for another job that pays more
  • Unless there are sufficient jobs within the business that require higher skill levels, the training may be wasted
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53
Q

Investment in Training: Short-Term Motivation

A

Employees are motivated in the short-term as they have improved skills and knowledge which allows them to perform their job better

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54
Q

Investment in Training: Long-Term Motivation

A

Ongoing Investment in Training creates a learning culture within the business which can lead to long-term motivation

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55
Q

Motivation Strategy: Support

A

Is when the business provides individual assistance and services to Employees to help them cope with problems that may negatively impact their lives or work performance

56
Q

Advantages of Support (List 2)

A
  • Support can be a long-term motivator
  • Helps build a strong workplace culture where the business and Employees are supporting each other
  • Support such as encouragement can be provided with little or no cost
  • Can improve mental wellbeing of employees via Employee Assistance Programs if they are finding things difficult
  • Support and encouragement can influence Employee attitudes which improves Employee motivation
57
Q

Disadvantages of Support (List 2)

A
  • Requires a positive workplace to work
  • Employees may become too dependant on support services
  • May be difficult to encourage and support some Employees
  • Managers may not know of an employee’s problems or the particular employee who has the problem since support programs are confidential, which makes it difficult for managers and employees to demonstrate emotional intelligence
58
Q

Support: Short-term Motivation

A

Support can be a short-term motivator by helping Employees complete tasks or helping them through difficult times

59
Q

Support: Long-Term Motivation

A

Support can have a positive long-term impact on motivation by creating an environment where the Employee feels like they belong

60
Q

Motivation Strategy: Sanction

A

Are the penalties that are imposed in an Employee for poor performance or for disobeying a policy. Sanctions may be necessary when the error is deliberate and reckless which may harm others

61
Q

Examples of Sanctions (List 2)

A
  • Loss of benefits
  • Demotion
  • Written warnings
62
Q

Advantages of Sanctions (List 2)

A
  • Sanctions for poor behaviour can motivate workers’ to improve their performance
  • Sanctions can quickly stop bad behaviour
  • Sanctions may bring other Employees in line with policies through the fear of being sanctioned
  • Some Employees respond to sanctions and are motivated by the negative consequences of the sanction
  • Positive reinforcement for Employees that always do the right thing because the sanctioning of Employees who do the wrong thing, it reassures other Employees they are doing the right thing
63
Q

Disadvantages of Sanctions (List 2)

A
  • Sanctions are normally a short-term motivator
  • Can cause Employee resentment towards the Manager who gave them the Sanction
  • Can cause Union involvement if the Employee believes they were unfairly Sanctioned
  • Excessive emphasis on Sanctions can reduce the Employees’ sense of belonging, and therefore have a negative impact on motivation
64
Q

Sanctions: Short-Term Motivation

A

Sanctions can ensure that Employees are motivated to do the right thing in the short-term through the fear of being Sanctioned

65
Q

Sanctions: Long-Term Motivation

A

Over the long-term, Sanctions can harm relationships within the business and damage the Corporate Culture

66
Q

Training and Development

A

Is when a business improves their Employees’ skills and abilities, which is a necessity for both personal and business growth

67
Q

Methods of Training and Development

A
  • On-the-Job Training

- Off-the-Job Training

68
Q

Benefits of Training and Development for Employees (List 2)

A
  • Improves the Employee’s abilities
  • Improves the Employee’s self-esteem
  • Allows Employees’ to take on greater responsibility
  • Increased job satisfaction through better job performance
  • Opportunity for promotion/s and self-improvement
  • Provides the Employee a greater ability to adapt and cope with changes
69
Q

On-the-Job Training

A

Is where an Employee is trained at their workplace, often whilst they are performing their job or in a special setting, such as a training room. The training is often conducted by an experienced Employee or Manager. On some occasions, external trainers are used

70
Q

Advantages of On-the-Job Training (List 2)

A
  • It is normally the most cost effective form of training
  • Employee’s often work whilst being trained, so they are still productive
  • Employees are in a familiar environment, so they feel more comfortable
  • Employees often gain experience with the equipment they will be working with
  • Trainees use the actual equipment that’s required to do the job
  • Immediate feedback from more experienced colleagues is available
71
Q

Disadvantages of On-the-Job Training (List 2)

A
  • The quality of the Trainer may vary
  • The business operations may be disrupted
  • The learning environment may be loud
  • Bad habits from older Employees may pass on
  • If experienced Employee is the Trainer, they have to put their regular duties on hold to train the Employee
  • If real tools and equipment are used, other Employees may be distracted and therefore production is disrupted
72
Q

Off-the-Job Training

A

Is where the Employee is trained away from the workplace. This usually involves sending Employees to University or TAFE, so they get an official qualification

73
Q

Advantages of Off-the-Job Training (List 2)

A
  • Less interruptions from the workplace
  • Employees learn from experienced specialists
  • Gain a formal qualification after the training is complete
  • Availability of a wider range of skills and qualifications than those is the workplace
  • Usually more structured and organised, with clear assessment processes
  • Training can be more intense due to no workplace distractions for both the Trainer and Trainee
74
Q

Disadvantages of Off-the-Job Training (List 2)

A
  • Often the most expensive form of training
  • Lost working time due to being away from the workplace
  • Employees may used gained qualification to leave the business to find a higher paying job
  • Employee may not learn on exact equipment that will be used in the workplace
  • The training may not relate directly to the exact skills required in the workplace
75
Q

Performance Management

A

Is the process that is used to evaluate and improve individual and business performance

76
Q

Performance Management Strategies

A
  • Management by Objectives (MBO)
  • Performance Appraisal
  • Self-Evaluation
  • Employee Observation
77
Q

Performance Management Strategy: Management by Objectives (MBO)

A

Is a program where both the Manager and Employee set clear objectives together which are in line with the business. The Employee is then evaluated against the set objectives and provided feedback on their performance

78
Q

Performance Management Strategy: Performance Appraisal

A

Is an evaluation that measures an Employee’s performance, provides feedback and develops new objectives

79
Q

Methods of Performance Appraisal

A
  • Essay Method
  • Rating Scale
  • Critical Incident Method
80
Q

Methods of Performance Appraisal: Essay Method

A

Is where the Manager writes down notes on the Employee and a long extended response on the Employee’s performance

81
Q

Methods of Performance Appraisal: Rating Scale

A

Is numerical data that looks at rating the Employee on different criteria, usually ranging on a scale from 1-10

82
Q

Methods of Performance Appraisal: Critical Incident Method

A

Is where the Manager writes down any serious incidents that has occurred and how the Employee responded during those incidents. The Employee’s performance is then discussed

83
Q

Performance Management Strategy: Self Evaluation

A

Is where an Employee assesses their own performance related to predetermined objectives. The Employee’s performance and feedback is discussed with the Manager

84
Q

Performance Management Strategy: Employee Observation

A

Is where an Employee’s performance is regularly watched and evaluated. The common form of observation is 360° feedback where the Manager talks to the Stakeholders that are associated with the Employee, such as their peers and Customers

85
Q

Termination

A

Is where an Employee leaves a workplace, ending the employment relationship. Termination can either be Voluntary or Involuntary

86
Q

Voluntary Termination

A

Is where the Employee volunteers to leave the business, whilst the business is terminating Employees

87
Q

Involuntary Termination

A

Is where the Employee is forced to leave the business

88
Q

Types of Termination

A
  • Retirement
  • Resignation
  • Redundancy
  • Dismissal
89
Q

Type of Termination: Retirement

A

Is a type of Voluntary Termination where the Employee decides to leave the workforce permanently on their own merits

90
Q

Reasons Why Employees May Retire (List 2)

A
  • Old age
  • Illness
  • Injury
91
Q

Entitlements for Retirees

A

Retiring Employees are entitled to Annual Leave, Long Service leave and advice or counselling (if needed)

92
Q

Transition Issues for Retirees

A

The business slowly reduces the Employee’s working hours, which allows the Employee to gradually transition into Retirement

93
Q

Type of Termination: Resignation

A

Is a type of Voluntary Termination where the Employee voluntarily leaves the business

94
Q

Reasons Why Employees May Resign (List 2)

A
  • The Employee can receive better pay elsewhere
  • They want to change their career path
  • The Employee gets a promotion at another business
95
Q

Entitlements for Resigning Employees

A
  • Payment for completed work

- The business is entitled to notice regarding the Employee’s resignation

96
Q

Transition Issues for Resigning Employees

A

The business will provide advice and support the Employee leaving the business

97
Q

Type of Termination: Redundancy

A

Is where an Employee leaves the business because their job no longer exists. Redundancy can be Voluntary or Involuntary

98
Q

Voluntary Redundancy

A

Is where the Employee nominates themselves to leave the business if there is insufficient work

99
Q

Involuntary Redundancy

A

Is where the Employee is forced to leave the business due to there being insufficient work

100
Q

Entitlements for Redundant Employees

A

Redundant Employees are entitled to Redundancy Packages, notice to leave and time off to attend job interviews

101
Q

Transition Issues for Redundant Employees

A

The business will provide the Redundant Employee with Counselling, Training and Career Advice

102
Q

Dismissal

A

Is Involuntary Termination where the Employee is terminated from the business due to unacceptable behaviour or performance

103
Q

Types of Dismissal

A
  • On-Notice Dismissal
  • Summary Dismissal
  • Unfair Dismissal
104
Q

Type of Dismissal: On-Notice Dismissal

A

Is when an Employee is not performing satisfactorily and they are given notice and an opportunity to improve their performance

105
Q

Type of Dismissal: Summary Dismissal

A

Is when an Employee commits a serious breach of their Employment Contract and can be dismissed immediately, without notice.

106
Q

Reasons for Summary Dismissal (List 2)

A
  • Theft
  • Serious breach of safety
  • Sexual harassment
107
Q

Type of Dismissal: Unfair Dismissal

A

A type of Dismissal that can occur if the Employee believes they were dismissed in an unjust, harsh or illegal manner such as the Employee being absent from work due to an illness or injury, belonging or not belonging to a trade union or discrimination on the basis on race, sex, religion, etc. The Fair Work Commission will decide if the employee was dismissed unfairly

108
Q

Entitlements for Dismissed Employees

A

Dismissed Employees are entitled to their pay for the work they have done

109
Q

Transition Issues for Dismissed Employees

A

Some businesses may offer Career Transition Services to their dismissed Employees

110
Q

Workplace Relations

A

Is the relationship and communication between Employees and their Employers in areas such as Wages and Working Conditions

111
Q

Key Participants in Workplace Relations

A
  • Employees
  • Human Resource Manager
  • Unions
  • Employer Associations
  • Fair Work Commission (FWC)
112
Q

Key Participant in Workplace Relations: Employees

A

Are those who work in the business and have the role to work towards achieving Business Objectives

113
Q

Roles of Employees in Workplace Relations (List 2)

A
  • To participate in Dispute Resolution
  • The negotiation of new agreements
  • Voting on new agreements
  • Taking industrial action if required
  • They need to carry out their responsibilities
114
Q

Key Participant in Workplace Relations: Human Resource Manager

A

Is responsible for managing the relationship between the Employees and the business

115
Q

Roles of Human Resource Management in Workplace Relations (List 2)

A
  • Represent the Employer in negotiations of New Wage Agreements
  • Participate in resolution of disputes
  • Implement agreements such as training Managers and Supervisors
  • Cooperate with Employer Associations, Unions and the Fair Work Commission
116
Q

Key Participant in Workplace Relations: Unions

A

Are organisations that represent and advise Employees

117
Q

Roles of Unions in Workplace Relations (List 2)

A
  • Offer advice to Employees
  • Support and represent Employees in disputes
  • Represent Employees in New Wage Agreements
  • Organise strikes and other industrial actions
118
Q

Key Participant in Workplace Relations: Employer Associations

A

Are organisations that represent and advise Employers

119
Q

Roles of Employer Associations Workplace Relations (List 2)

A
  • To Negotiate New Wage Agreements
  • Advising or representing Employers in disputes
  • Notifying and advising Employers with law changes
120
Q

Key Participant in Workplace Relations: Fair Work Commission (FWC)

A

Is Australia’s independent Workplace Relations Tribunal

121
Q

Roles of the Fair Work Commission in Workplace Relations (List 2)

A
  • To hear Unfair Dismissal cases
  • To approve Workplace Agreements
  • To hear and investigate bullying and harassment claims
  • Providing a safety net of minimum wages and conditions for all Employees
  • Regulating and monitoring industrial action
  • Assisting in resolving workplace disputes through Mediation, Conciliation or Arbitration
122
Q

Types of Employment Contracts

A
  • Awards

- Enterprise Agreements

123
Q

Type of Employment Contract: Awards

A

Is a legally binding employment contract made by the Fair Work Commission that states the minimum pay and working conditions for a given industry. This is updated every 4 years

124
Q

Advantages of Awards (List 2)

A
  • Ensures wage equality across an industry
  • Less expensive for businesses
  • Ensures stability and predictability in the negotiation process
  • Ensures that one Employee is not worse off than another
  • It may be easier for an Employer to establish a friendly relationship with Unions who represent Employees
  • Employers and Employees may prefer an Award that can be settled with an independent “third-party” that will be faster to be decided
125
Q

Disadvantages of Awards (List 2)

A
  • Can’t control the pay given to Employees’
  • There is no incentive for Employer-Employee relations
  • Employees cannot negotiate pay
  • Less flexible to cater for requirements of individual workplaces and Employees needs
  • Employees will not be better off than others due to equality
126
Q

Type of Employment Contract: Enterprise Agreements

A

A contract between an Employer and a group of Employees, relating to wages and working conditions. This is reviewed every 4 years and has to be approved by the Fair Work Commission

127
Q

Advantages of Enterprise Agreements (List 2)

A
  • Employees can negotiate pay
  • Employers can offer pay and working conditions above an Award if Employees increase their productivity
  • The business must meet the BOOT test so that Employees are better off when the conditions in an Agreement are compared to a relevant Award
128
Q

Disadvantages of Enterprise Agreements (List 2)

A
  • Less wage equality across an industry
  • It is more expensive for the business
  • Negotiation of wages and working conditions is time-consuming
  • Can cause conflict between the Employer and Employee due to ongoing negotiation about wages and working conditions in the Enterprise Agreement
  • Less collective Employee strength in bargaining
129
Q

Similarities Between Awards and Enterprise Agreements (List 2)

A
  • Both reviewed every 4 years
  • Both have to be approved by the Fair Work Commission (FWC)
  • Both have to contain pay and working conditions equal to or better than the 10 National Employment Standards (NES)
130
Q

Differences Between Awards and Enterprise Agreements (List 2)

A
  • Enterprise Agreements contain better pay and working conditions than Awards
  • Awards apply to an entire industry whilst Enterprise Agreements only apply to one workplace
  • Awards are determined by the Fair Work Commission (FWC) whilst Enterprise Agreements are negotiated between and Employer and Employee
131
Q

Methods for Dispute Resolution

A
  • Grievance Procedure
  • Mediation
  • Arbitration
132
Q

Method for Dispute Resolution: Grievance Procedure

A

Is where the Human Resource Manager and an Employee resolve matters through a formal set of steps. In some cases, Unions are involved. If this doesn’t solve the problem, Mediation has to occur

133
Q

Method for Dispute Resolution: Mediation

A

Mediation occurs when a Grievance Procedure has not been successful. It is where an independent third-party ensures that the conversation between the parties runs smoothly. The Mediator does not offer suggestions to the parties on how to resolve their dispute. If this does not solve the problem, Arbitration has to occur

134
Q

Method for Dispute Resolution: Arbitration

A

Arbitration occurs when Mediation has not been successful. It is where both parties put their case forward to an independent third-party who makes the decision for the parties, which is legally binding

135
Q

Similarities between Mediation and Arbitration (List 2)

A
  • Both Mediation and Arbitration are Dispute Resolution Methods for Awards and Enterprise Agreements
  • Both usually involve the Fair Work Commission (FWC)
  • Both mean that the Employers and Employees were unable to resolve the dispute internally
136
Q

Differences Between Mediation and Arbitration (List 2)

A
  • Mediation is informal whilst Arbitration is formal
  • Mediators do not make any decisions whilst Arbitrators do
  • Outcomes from Mediation are not legally binding whilst outcome from Arbitration are
  • Mediation is voluntary whilst parties can be forced into Arbitration

Year 12 VCE Business Management (5 decks)

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