Unit 3 Outcome 2

Question 1

employment arrangements

Answer 1

causual, fixed term and ongoing working aarrangements, contracted and awards is the basis of most working industries. these set the benchmark for pay, working hours and breaks. An employees can go above minimum requirements of an award, however never beneth the minimum requirements

Question 2

Selection

Answer 2

carrying out interviews, various form of testing, including aptitude test and phychological testing and do various other background checks

Question 3

Maintenance phase

Answer 3

induction provides employees with basic background information about the organisation as well as information needed to perform the job satisfactorily
Training and development is the process of teaching staff how to do their job more efficiently and effectly boosting their knowledge and skills
Performance management is the evaluation of employee performance

Question 4

Termination Phase

Answer 4

the conclusion of the employment cycle come to an end in which this can occur due to a number of ways
Voluntary: retirement, resignation, in which the employee themselves chooses to either end their working career or they decide to change industries
Involuntary: redundancy, dismissal, to which the employer makes the decision to move on their employees

Question 5

Entitlement and transition issues

Answer 5

Outstanding benefit payments, money owed must be deal with before an employee can end their working relationship. Remuration packages can also be given to people who been made redundant this include instancea pay of up to 3 months salary
Some companies may offer support and consolation is a way in which en employer can demonstrate respect to their employees as they move on from the work place

Question 6

Relationship between managing employees and business objectives

Answer 6

Responsibility for maintaining the relationship between employees and the business is known ashuman resource management.
HR managers are responsible for getting the best out of its employees, and that the employees contribute to the achievement of business objectives.
Motivated employees are more likely to work hard to achieve those objectives, so employee motivation is central to human resource management.

Question 7

Relationship between managing employees and business objectives

Answer 7

The HR department will work closely with the other departments in the business.
HR strategies can be used to achieve business objectives by supporting strategies in other areas of the business.

Question 8

HR and motivation

Answer 8

Motivation is the force that drives people to exert individual effort over a sustained period of time.
likely to lead to improved productivity and greater success at achieving business objectives.
Motivation is more than just about reward and punishment:
Reward – increased pay, improved conditions/entitlements
Punishment – reprimand, demotion, dismissal

Different theories show that individual employees respond differently to various motivational techniques…

Question 9

Motivated employees

Answer 9

Improved productivity and effectiveness
Strong and positive culture
Reduced absenteeism & staff turnover
Achievement of objectives

Question 10

Motivational theories

Answer 10

We will study three motivational theories:
Hierarchy of Needs (Maslow)
Goal Setting Theory (Locke & Latham)
Four Drive Theory (Lawrence & Nohria)

Question 11

Hierarchy of needs

Answer 11

Abraham Maslow
Believed all people have needs to be satisfied and will work towards satisfying those needs
The needs could be ordered according to their importance

How the theory translates to the business environment:
Self-Actualisation needs – creativity, problem solving, autonomy, career development
Esteem needs – appreciation or recognition, promotion, responsibility
Social needs – professional relationships with colleagues, supportive management
Safety needs – safe working conditions, job security
Physiological needs – satisfactory pay for survival

Question 12

Hierarchy of needs benefits and limitations

Answer 12

benefits
develop an understanding of individual needs
be aware that employees will be at different stages of development and that they will need to be motivated using a variety of methods
Limitations
it is only a theory. It is not supported by empirical evidence and the stages in the hierarchy do not apply to all individuals.

manager making use of the theory may struggle to identify the stage at which each individual employee is

Question 13

Motivational Theory:Locke & Latham’s Goal Setting Theory

Answer 13

Dr Edwin Locke
1960s research on motivation – employees are motivated by clear goals with appropriate feedback on their achievement of the goals
Goals needed to be challenging and clear, and employees need to be committed to meet the challenge, with recognition given to efforts being made

Question 14

5 principles of goal settings

Answer 14

Clarity
Goals should be simple and specific as possible , Everyone should understand what is expected and the result that will be rewarded, Timeframe built into goals so there is a clear end date for it to be achieved

Challenge
Extend the employee(s) but should still be achievable and relate to business objectives, Achieving something they have not successfully completed before is motivating, Completing tasks that are highly valued by the employer/manager can also motivate, Significance of the challenge should guide the reward for achievement

Commitment
Employee needs to be driven to actively pursue goal achievement
The greater the input from the employee in goal setting, the more likely they are to commit, which means a more challenging goal can be set, leading to greater rewards

Feedback
Frequency depends of timeframe of goal, Recognise progress achieved, make adjustments, clarify expectations, Formal or informal – may have milestones for expected progress

Task Complexity
Should not overwhelm employee, but should challenge them, additional training may be required to ensure skill development and goal attainment, Task allows employee to contribute to the objectives of the business

Question 15

Strengths and weakness of locke and lathams goal setting theory

Answer 15

Strengths
*Challenging & specific goal, with commitment and feedback will motivate employees
*Higher productivity due to clear and specific goals
*Better relationships between management and employees – collaborative goal setting
Weaknesses
*Unchallenging goals can be demotivating
*Individual employee goals may clash with business goals
*The Goal Setting Theory only focuses on setting goals to improve performance – there are other factors
*Failure to meet a goal to be detrimental to confidence of employee

Question 16

Lawrence and Nohria four drive theory

Answer 16

They identified four main drives that shape how humans think and behave:
To Acquire – own goods, desire for status, power and influence
To Bond – from relationships with other people
To Comprehend – satisfy curiosity, learn new skills, explore the world
To Defend – remove threats to safety and security, protect what we have

By applying this in the business world, they hoped to identify what motivates stakeholders

Question 17

Strengths and weakness of lawrnce and Nohrias four drive theory

Answer 17

Strengths
*The Drives work independently – behaviours or strategies can be flexible
*Four Drive Theory is very adaptable – to environments and situations
*The Drives convert to effort – which improves behaviour, business performance and objective achievement

Weakness
*Other drives exist outside the four in the theory – the four don’t explain all characteristics that motivate people
*Some workplace applications of the Theory involve competition between employees – leads to lack of cooperation and information sharing

Question 18

Motivational Stratergies

Answer 18

Paid stratergies:
pay increase, bonus, commision, share plans, profits sharing and gainsharing
Other strategies:
Career advancement, investement in training, support, sanction

Question 19

Financial stratergies

Answer 19

Performance-Related Pay – direct payments to employees
Pay increases – wage/salary rise as incentive to work hard and make significant contribution to achievement of business objectives.
Bonus – one off payment for meeting particular targets, often at Christmas time or when targets have been met
Commission – usually a fixed percentage of the sale price. Salesperson may have a basic base salary, topped up by commissions

Other Financial Incentives – payments separate to pay structure
Share Plans – registered company can offer shares in the ownership of the business. Profits are paid as dividends, meaning additional income. Value of shareholdings will increase as profits increase.
Profit Sharing – offering a fixed percentage of business profits as an incentive to raise profit levels, amount varies according to profit.
Gainsharing – encourage employees to suggest ideas for productivity improvements, with the savings being passed on to employees.

Question 20

Whats the purpose of training?

Answer 20

to seek long-term change in employee’s skills, knowledge, attitudes and behaviour in order to improve work performance in the business

Question 21

Pros and cons of training

Answer 21

Pros:

Question 22

Pros for employees and business

Answer 22

Employees: opportunity for promotion and self improvement, improved job satisfaction through better job, formants, the chance to learn new things, greater ability to adapt to and cope with changes
Business: higher productivity levels through better job performance and more efficient, use of human resources, goals and objectives, more effectively Matt, reduce costs due to less labour turnover and absenteeism and fewer errors an accident, a more capable mobile workforce

Question 23

On job training

Answer 23

Learning specific skills for particular tasks in the workplace, within the working environment, Using equipment, machinery, documents and programs, At workstation, training room, conference room, on site, Provided by experienced staff with specific expertise, sometimes external providers

Question 24

Off the job training

Answer 24

Training conducted away from the workplace, usually to a specialised institution in University, TAFE, specialist industry provider

Question 25

development programs

Answer 25

Job Rotation – experience different aspects of a business (apply management skills in different situations Mentoring – supports the employee as they learn, sharing the experience and skills of another collegue Formal Business Training – studying for a Masters of Businesses Administration (MBA) Succession Planning – ensuring managers can step into senior management positions when vacancies occur

Question 26

Strategies for performance management

Answer 26

Performance appraisal Management by objectives Self evaluation by employees Employee observation

Question 27

Management by objectives

Answer 27

Management and Employees agree on a set of goals, with individual goals contributing to the objectives of the business Each employee should be aware of the objectives of the business and their responsibility in achieving those objectives

Question 28

Employee self evaluation

Answer 28

Based on a set of agreed criteria, employees respond to questions about strengths, weaknesses, initiatives, potential change in role and future responsibility and leadership aspirations

Question 29

Employee Observation

Answer 29

Commonly used to evaluate managers by seeking input from their subordinates, fellow managers and superiors Colleagues complete confidential evaluation forms Identify strengths and weaknesses Useful for evaluation of leadership, teamwork and interpersonal skills

Question 30

Performance management strategies

Answer 30

Performance Appraisal Formal assessment of how efficiently and effectively an employee is performing their role in the business Aims to: Provide feedback from management Act as a measurement for promotion or pay rises Help business monitor employee selection Identify training and development needs Identify new objectives and plan for future performance Performance Appraisal - Steps involved: Set clear expectations – with time targets Assess performance regularly – regularly and annually Provide Feedback – recognition of effort & improvement, constructive feedback for development areas Continuous development – planning to upskill employees Performance Appraisal – Methods: Essay Method – keeping a journal on each employee Critical Incident Method – recording exceptionally good or bad aspects of performance Comparison Method – rank employees according to predetermined characteristics/measurements

Question 31

Whats training and development?

Answer 31

Training – teaching staff to perform their job more productively Development – the process of preparing employees to take on more responsibilities in the future by gaining more knowledge, skills and experience in a particular area

Question 32

Pros and cons of performance reviews

Answer 32

Pros- Establishes communication between employees and management Direct assistance and guidance established can be linked to further training Can objectively choose performance related pay and promotion based on merit Cons- time consuming due to number of employees Difficult to call out failings and shortcoming- stressful experience High performance does not lead to success No change occurs wasting time in doing the review

Question 33

Termination of employment

Answer 33

When an employee leaves a particular workplace ending the employement relationship. The HR manager ensures employee is treated unfairly and within the law. Types of termination: Retirment- not working at all Resignation- end employment relationship but still working Dismisal- employment relationship ended due to unacceptable behaviour of employees, a summary dismisal is a serious breach (drugs, alchohol or criminal activity) and a dismisal on notice is not performing satisfactorily but suffiecient notice but be provided Retrenchment- employees are terminated due to lack of suffieicent work to keep the employee fully occupied, HR manager must follow coerrect procedures and assist in departing employees to find new employment Redundency- employee performs a job that is no longer necessary, Voluntary where employees are given the opportunity to nominate themself for redundency and involuntarynwhere employees are asked to leave even though they are not at fault but due to any of the reasons that prompts redundancy

Question 34

Entitlement and transition issues

Answer 34

Fair work act- includes provisions to protect employees from unfair dismissal, employees must warn employees if work is not satisfactory and written notices are preferred avoiding misunderstanding of verbal warnings or heat of the moment resignation Unfair dismissal- employer dismisses an employee for discriminatory reasons such as absence from work due to illness or injury, race, colour, sex, age, disability ECT

Question 35

Workplace relations

Answer 35

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 strategic, tactical and operational objectives

Question 35

Workplace relations

Answer 35

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 strategic, tactical and operational objectives

Question 36

Participants in the internal enviroment

Answer 36

Employers: deal with employee relations on a daily basis large businesses will employ HR managers to manage the legal responsibilities of employee relations Employees: Vital resources to the day-to-day operation of the business More educated than ever before – demand interesting work and involvement in decision-making Employees more involved in negotiating employment agreements or collective agreements

Question 37

Human Resourse Managers

Answer 37

They manage the employment relationship between employees and the business. Negotiate employment agreements Train other managers and supervisors to ensure they comply with agreement in changing work practices Implement all key terms of agreements such as changes of wages, hours, entitlements Dealing with disputes and conflict, Resolve disputes related to employment agreement

Question 38

Participants in the external enviroment operating enviroment

Answer 38

Trade Unions: Organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members. Represent members in developing employee agreements and in Recent years, declining union membership Employer Associations: Organisations that represent employers of particular industries that assist employers in formulating polices and processing log of claims served by members of unions and assist employers in negotiating workplace agreements that are consistent with legislation

Question 39

Participants in the external enviroment Macro enviroment

Answer 39

Peak union bodies: State or Federal organisations that most unions affiliate with that represent union movement in court/tribunals and dealing with government, Assists with settlement of disputes and also act politically on behalf of other unions Peak employer bodies: Peak organisations that employer associations affiliate with and also perform a similar role for employers to that performed for unions by the peak union organisations at the state and federal level. Goverments and goverment orgination: Governments have five key roles in employee relations: -Legislators who pass laws for legal framework of employee relations -Employers who employ almost one-third of Australian workers -Economic Managers who impact of wages on inflation - Policy Administrators who publish information and guidelines -Represent Australia in the international arena Fair work Commision: Independent organisation (set up by government) to deal with the resolution of industrial disputes, minimum wages and employment standards. They Approves agreements, resolve disputes between employee and employer and promotes compliance with legislation through education, information and assistance

Question 40

Causes of conflict

Answer 40

Remuneration EMployment conditions health and safety job security managerial policy issues union issues

Question 41

Industrial action

Answer 41

A withdrawal from work by a group of employees, or refusal by an employer or number of employers to permit some or all of their members to work (ABS definition) Strike – refusal to work Lockout – refusal by employers to allow employees to work Picket Lines – protests outside the workplace Work Bans – refusal to work overtime, handle a product/equipment, or work with particular individuals Work-to-rule – employees refuse to perform any duties that are additional to the work they normally perform Absenteeism, vandalism, sabotage – concealed and unofficial actions that are costly to businesses

Question 42

Protected and unprotected industrial actions

Answer 42

Protected Action – approved by the Fair Work Commission When negotiating a new agreement Union members vote to take action Employer notified at least 3 days in advance Unprotected Action – not approved by the Fair Work Commission Action taken prior to expiry of current agreement Strikes without proper notice

Question 43

Dispute resolution procedures

Answer 43

All enterprise agreements must contain dispute resolution procedures to gain approval of the FWC. In a consultative or participative culture – disputes are likely to be resolved informally between local employee rep and HR management, without third parties In a autocratic culture – more likely to have formalised dispute resolution methods Negotiation Mediation Grievance procedures Fair Work Commission tribunal – conciliation or arbitration Common Law action

Question 44

Negotiation

Answer 44

Direct discussions between parties, no third party involvement Most effective when employer uses consultative or participative management style Best for on-going workplace relationships

Question 45

Meditation

Answer 45

Third party assists disputing parties in resolving the dispute Mediator – independent or agreed person Mediator does not offer suggestions or solutions Aim to have parties reach their own agreement

Question 46

Grievance Procedures

Answer 46

Formalised steps to resolve workplace complaints usually involves: Management local union rep external advisers

Question 47

Fair work commission tribunal

Answer 47

Offer services of mediation, conciliation and arbitration to resolve disputes with independent third parties Conciliation – voluntary or compulsory - third party helps parties to clarify issues, develop strategies to resolve disputes Arbitration – tribunal member considers arguments of both sides, then makes the decision to resolve the dispute (similar to court hearing), decision is legally binding

Question 48

Common law action

Answer 48

Legal action before the courts initiated by either of the disputing parties – heard in the Fair Work Division or the Federal Court Considered last resort Can prolong hostility and mistrust in the workplace Court decision is legally binding and very expensive

Question 49

Awards

Answer 49

Industry-wide Awards: Now: Greater emphasis on collective bargaining Leading to growth in enterprise agreements Awards do not apply to businesses with enterprise agreements Employees can negotiate improvements on minimum conditions with an enterprise agreement Award Modernisation: Workplace Relations Amendment Act 2008 removed inconsistencies and amalgamated overlapping Awards Consultation structure was set up (involving unions and employer associations) Modern Awards combine with the 10 National Employment Standards to provide a ‘safety net’ of basic conditions for all employees (next slide)

Question 50

Agreements

Answer 50

Collective Agreements (Enterprise agreement) Employment agreement negotiated between an employer and a union, on behalf of its members (or between the employer and a group representing a majority of its employees) Must have the 10 National Employment Standards, plus: Nominal expiry date – 2-3 years Procedures for settling disputes Terms allowing for individual flexibility Provisions for consultation for major workplace change Individual Contracts An employee can sign a contract with an employer Must comply with relevant Award be consistent with the 10 NES May provide improved conditions, cannot exclude any Award conditions or reduce conditions or benefits Have High income earners can enter an individual contract that renders Award conditions not applicable to them (enforced through the courts rather than FWC)