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Business 3&4 > AOS2 > Flashcards

AOS2 Flashcards

1
Q

what is human resource management?

A

the organisation of employee’s roles, pay, and working conditions

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2
Q

What does effective human resource management give

A

enable a business to
* retain its employees,
* giving them high levels of motivation
* job satisfaction

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3
Q

What does poor human resource management give

A

employees being unsatisfied and demotivated by their work task (affecting business objective completion)

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4
Q

what is motivation

A

the willingness of an individual to expend energy and effort in completing a task.

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5
Q

what does more motivation by employees lead to?

A

increase productivity of them, and the willingness to work hard to achieve business objectives

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6
Q

what are 3 benefits of motivated employees

A
  • Likely be more focused, adaptable, and productive
  • Employees feel valued, appreciated
  • More satisfied employees mean a business can retain and use employees’ skills and experiences
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7
Q

what is Maslow’s Hierarchy of Needs

A

a motivational theory that suggests people have five fundamental needs, and their sequential (in sequence) attainment of each need acts as a source of motivation.

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8
Q

what are the 5 fundamental needs (Maslow’s)

A
  1. physiological
  2. safety and security
  3. social
  4. esteem
  5. self-actualisation
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9
Q

what are the 3 intrinsic (higher-order) needs (Maslow’s)

A

social, esteem, self-actualisation

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10
Q

what are the 2 extrinsic (lower-order) needs (Maslow’s)

A

physiological, safety and security

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11
Q

what are physiological needs

A

the basic requirements for human survival, such as food, water, and shelter

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12
Q

what are 2 examples of physiological needs in a business

A
  • wage
  • working conditions
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13
Q

what are safety and security needs

A

the desires for protection from dangerous or threatening environments

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14
Q

what are 3 examples of safety and security needs in a business?

A
  • job security (long term contracts)
  • safe and healthy workplace (safety equipment)
  • required training is given
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15
Q

what are social needs

A

the desires for a sense of belonging and friendship among groups, both inside and outside the workplace

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16
Q

what are 2 examples of social needs in a business

A
  • having friendly associates
  • having organised employee activities
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17
Q

what are esteem needs

A

an individual’s desires to feel important, valuable, and respected

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18
Q

what are 2 examples of esteem needs in a business

A
  • working for a promotion
  • pay being risen due to status of role
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19
Q

what are self-actualisation needs

A

the desires for an employee to reach their full potential through creativity and personal growth

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20
Q

what are 3 examples of self-actualisation needs in a business

A
  • challenging work allowing for creativity
  • participative decision-making
  • opportunities for personal growth and advancement
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21
Q

what are 2 advantages of Maslow’s Hierarchy of Needs

A
  • Simple and easy to understand, so easy to implement
  • managers can observe employee behaviour and figure out what motivates them (increasing efficiency, productivity, and profitability of the business)
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22
Q

what are 3 disadvantages of Maslow’s Hierarchy of Needs

A
  • time-consuming for management to assess which needs have been met for each individual employee
  • no explanation of what motivates employees once they have achieved self-actualisation.
  • no way to measure precisely how satisfied one level of need must be before the next higher need becomes a motivator
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23
Q

what is Lawrence and Nohria’s four drive theory

A

a motivational theory that suggests that people strive to balance four fundamental desires

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24
Q

what are these 4 fundamental desires (lawrence and nohria)

A
  • drive to acquire
  • drive to bond
  • drive to learn
  • drive to defend
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25
Q

drive to acquire definition

A

the desire to achieve rewards and high status

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26
Q

what types of rewards can the drive to acquire give

A

non-financial and financial

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27
Q

what are 3 non-financial rewards that employees can get

A
  • pathways for promotion
  • prestigious job title
  • increased range of responsibilities
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28
Q

what are 3 financial rewards that employees can get

A
  • performance-based bonuses
  • higher wages
  • increase in salary due to promotion
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29
Q

drive to bond definition

A

the desire to participate in social interactions and feel a sense of belonging

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30
Q

how can a manager fulfil the drive to bond

A

creating an environment that promotes both work-related and personal interactions

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31
Q

what are 3 examples of how a manager can implement strategies to fulfil the drive to bond

A
  • Celebrating employee milestones and birthdays
  • Encouraging group work instead of tasks to be done by a single person
  • Holding social events that employees can regularly attend and participate in
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32
Q

drive to learn definition

A

desire to gain knowledge, skills, and experience

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33
Q

what should managers do to fulfil the drive to learn

A

provide employees with opportunities to grow, face and overcome challenges and enhance their knowledge and skills

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34
Q

what are 3 examples of manager implementing strategies to fulfil the drive to learn

A
  • Adopting a mentoring system between junior and senior employees
  • Regularly rotating the types of tasks assigned to employees
  • Assigning challenging work tasks to employees to broaden their range of skills
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35
Q

drive to defend definition

A

the desire to protect personal security as well as the values of the business

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36
Q

how can managers fulfil the drive to defend

A

ensure that employees can defend themselves and the business when required

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37
Q

what are 3 ways that managers can fulfil the drive to defend

A
  • Implementing policies using employee input
  • Developing a vision that employees agree with
  • Building trust by supporting and collaborating with employees
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38
Q

What are 3 advantages of Lawrence and Nohria’s four drive theory

A
  • is a model for managers for an increase in employee engagement and motivation
  • managers can use any 4 drives at one time
  • Strategies that motivate employees through the drive to acquire can also boost productivity
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39
Q

What are 3 disadvantages of Lawrence and Nohria’s four drive theory

A
  • time-consuming (determining each strength for each drive in each employee)
  • Should one drive dominate, an imbalance can occur between the personal and business outcomes
  • Dominant drives for each employee can change over time, (management has to regularly assess effectiveness)
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40
Q

What is Locke and Latham’s goal setting theory

A

A motivational theory that states that employees are motivated by clearly defined goals that fulfil five key principles

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41
Q

what are the 5 key principles for goal setting

A
  • clarity
  • commitment
  • task complexity
  • feedback
  • challenge
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42
Q

what should does a clear (clarity) goal include

A

Clear and specific goals, that are easy to measure
As well as having a time-frame to coordinate resource use

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43
Q

What does a committed goal include

A

a goal that an employee want to work towards
With more input of the goal creation, the more likeliness of goal completion

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44
Q

what is a complex goal include (task complexity)

A

It is important that goals are challenging enough to motivate employees, though the level of complexity should not overwhelm them.

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45
Q

what happens if the goal is too complex

A

motivation will decrease as it may be out of their reach

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46
Q

what should a challenging goal include

A

challenging goals create more motivation, because people are more motivated to complete something that they haven’t done before.
The goal should still be achievable. There is no point setting a goal that is unachievable or beyond the capabilities of the employee (setting up to fail).

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47
Q

what does feedback of the goal include

A

include opportunities for ongoing, constructive feedback for the employee.

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48
Q

why is feedback on goal important (what does it give)

A

It provides opportunities to offer recognition for progress achieved, to make adjustments to the goal if necessary

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49
Q

how should goals be made

A

Managers need to sit down with individual employees or small teams of employees to collaboratively create a set of goals that they could work towards achieving over a specific period of time.

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50
Q

what are 3 advantages of the goal setting theory

A
  • Goals that align employee goals with achieving business objectives are likely to improve business performance
  • The process of managers setting goals with employees can improve levels of trust and the relationship between employees and management.
  • Employees may be more motivated to complete tasks if work goals align with their personal interest
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51
Q

what are 3 disadvantages of the goal setting theory

A
  • Goals that are too difficult can become overwhelming and lead to dissatisfaction
  • If goals are not specific enough, employees be confused and can lack focus.
  • The process of collaboratively establishing goals with individual employees or teams and providing regular feedback is very time consuming
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52
Q

what is a strategy?

A

A strategy is a set of specific actions used to achieve a particular outcome (this case to motivate employees)

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53
Q

what are financial motivating strats

(motivational strategies)

A

strategies that generate motivation by providing some monetary incentive

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54
Q

what are non-financial motivating strats

(motivational strategies)

A

strategies that provide an incentive or benefit to the employee through non-monetary means

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55
Q

what are the 5 main motivation strategies

A
  • performance-related pay
  • career advancement
  • investment in training
  • support
  • sanction
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56
Q

performance-related pay definition

A

a financial reward that employees receive for reaching or exceeding a set business goal

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57
Q

what are 3 examples of performace-related pay being used in a business

A
  • pay increases
  • bonuses
  • commissions (extra money with sales)
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58
Q

what are 3 advantages of using performance-related pay

A
  • Can provide immediate motivation
  • Clear criteria on how to achieve the incentive
  • Can be used to motivate many employees at once improving overall business performance.
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59
Q

what are 3 disadvantages of using performance-related pay

A
  • Can cause conflict among employees if they feel assessment is unfair
  • Safe work practices may be sacrificed to achieve set outcomes
  • time-consuming for the manager to review each employee’s performance against criteria and determine who receives a financial reward
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60
Q

what is the short-term advantage of performance-related pay

A

Employees may be motivated to improve performance quickly in order to gain financial rewards

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61
Q

what is a short-term disadvantage of performance-related pay

A

Employees may be demotivated if they are competing against their colleagues for financial rewards.

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62
Q

what is the long-term advantage of performance-related pay

A

With history of reward and recognition for high-performing employees, employees are more likely to be motivated by the expectation that they will receive rewards in the future

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63
Q

what is the long-term disadvantage of performance-related pay

A

In the long term, employees may become demotivated if they continually have to compete with their peers to achieve financial rewards

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64
Q

what can career advancement in a business look like

A

job enlargement
job enrichment

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65
Q

simple terms what is job enrichment

A

increased authority over their work and a greater depth of content

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66
Q

simple terms what is job enlargment

A

giving employees more tasks to do (could be more complex or more variety)

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67
Q

career advancement definition

A

the upwards progression of an employee’s job position

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68
Q

what are 3 advantages of career advancement

A
  • Can provide a means of retaining valuable employees, (can develop inside the business, with promotion or more responsibilties)
  • Employees may develop broader skills and knowledge base which may help with long term career opportunities
  • cheaper than recruiting new employees
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69
Q

what is the short-term advantage of career advancement

A

Employees may be rapidly motivated if they are taking on more responsibility in the workplace

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70
Q

what are 3 disadvantages of career advancement

A
  • conflict due to limited number of roles available
  • May not motivate employees immediately as a promotion can take time to earn
  • May cause resentment from those overlooked for promotion
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71
Q

what is the short-term disadvantage of career advancement

A

Employees may become resentful and demotivated if they believe they were not considered for a promotion.

72
Q

what is the long-term advantage of career advancement

A

Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities.

73
Q

what is the long-term disadvantage of career advancement

A

There may be a limited number of responsibilities an employee can absorb into their role within a business.

74
Q

investment in training definition

A

allocating resources to improve employee skills and knowledge

75
Q

what can investment in training look like in a business

A
  • providing employees with mentoring
  • training programs within the business
  • paying for employees to be trained by other professionals outside of the business
76
Q

what are 3 advantages of investment in training

A
  • Employees feel valued as the business recognises their work and is willing to invest in them
  • productivity gains and quality improvements as employees are increasing their skills and knowledge
  • Can provide a sense of job security for employees as the business is making an investment in the employee
77
Q

what are 3 disadvantages of investment in training

A
  • Training can be financially expensive, especially for off-the-job training
  • There may be a loss of productivity temporarily while the employee is being trained
  • Training may not be directly relevant to tasks undertaken by employees.
78
Q

what is the short-term advantage of investment in training

A

Employees may be motivated in the short term by the opportunity to learn new skills

79
Q

what is the short-term disadvantage of investment in training

A

Taking time off work to participate in training programs may cause employees to lose momentum and consequently lack motivation.

80
Q

what is the long-term advantage of investment in training

A

Employees may be constantly motivated as they feel valued by the business when they are provided with opportunities to develop their skills

81
Q

what is the long-term disadvantage of investment in training

A

Employees may become demotivated by the consistent workflow interruptions caused by training programs.

82
Q

support (motivational strategy) definition

A

involve providing employees with any assistance that improves their satisfaction at work

83
Q

what can support look like in a business (2)

A
  • regularly checking on their health and wellbeing.
  • praising and encouraging good performance.
84
Q

what are 3 advantages of using support

A
  • Problems can be dealt with efficiently before they escalate, saving time.
  • Support is generally financially cheap
  • Employees who feel supported are less likely to leave the business.
85
Q

what are 3 disadvantages of using support

A
  • It can be time-consuming for a manager to maintain relationships with staff
  • May be ineffective if a manager does not have good interpersonal skills.
  • It can be costly to provide ongoing support
86
Q

what is the short-term advantage of support

A

Employees may be motivated by working in a business where their wellbeing is considered and valued.

87
Q

what is the long-term advantage of support

A

Employees may be motivated for a long period of time when they feel valued by management and are able to resolve issues efficiently.

88
Q

what is 3 examples of sanction being used in a business

A

written warnings, demotion, lost promotional opportunity

89
Q

sanction definition

A

involve penalising employees for poor performance or breaching business policies

90
Q

what are 3 advantages of sanction being used

A
  • can motivate some workers to improve their performance
  • It can get some employees motivated to act quickly as they feel guilty
  • Does not incur any immediate cost to implement.
91
Q

what are 3 disadvantages of sanction being used

A
  • Can create a negative corporate culture as tasks are completed out of fear.
  • Excessive emphasis on sanctions can reduce employee sense of belonging
  • Levels of trust between employees and management may decrease.
92
Q

what is the long-term disadvantage of sanction

A

The use of sanctions can contribute to a negative workplace environment, decreasing employee satisfaction and motivation.

93
Q

what is the short-term disadvantage of sanction

A

Employees may become resentful of their managers using sanction, potentially leading to resignations and decreases in productivity.

94
Q

what is the short-term advantage of sanction

A

Employees may be motivated to quickly follow instructions in order to avoid punishment.

95
Q

what are the 2 types of training

A
  • on the job
  • off the job
96
Q

what is training

A

the process of increasing the knowledge and improving the skills of an employee to help them perform more effectively and efficiently in their role.

97
Q

what does on the job training involve

A

employees improving their knowledge and skills within the workplace

98
Q

what are 3 examples of on the job training being used in the workplace

A
  • Being coached by an existing employee on how to perform a role
  • Job shadowing (watching over experienced employee working in the same position)
  • senior staff member acts as a mentor
99
Q

what are 3 advantages of on the job training

A
  • No travel is required, expenses and costs are reduced
  • Employees can quickly become familiar with work equipment, reducing the time to complete their training
  • Training is tailored to meet the specific needs of the business
100
Q

what are 3 disadvantages of on the job training

A
  • Poor habits of staff may be passed on to other employees
  • Quality of the trainer may vary (teaching skills of other employees low)
  • Senior staff who are responsible for training new employees are taken away from their own work duties
101
Q

what does off the job training involve

A

employees improving their knowledge and skills in a location external to the business

102
Q

what are 3 examples of off-the-job training

A
  • Attending conferences that provide theoretical knowledge
  • Performing simulations or workshops external to the workplace
  • Online training courses that are performed outside of traditional working hours
103
Q

what are 3 advantages of off the job training

A
  • training from professionals gives employees new perspectives on how to perform their roles to a higher standard
  • It does not take more experienced employees away from their jobs to train other employees
  • Errors made by employees during training do not occur on site, decreasing expenses associated with waste
104
Q

what are 3 disadvantages of off the job training

A
  • More expensive, with fees charged for travel costs, loss of productivity, possibly accommodation
  • Lost working time and potential output while the employee is absent from work
  • Employees may try to find a job elsewhere with the external qualifications they gain, causing this investment in training to be redundant
105
Q

what is performance management

A

the process used to improve business and individual employee
performance to ensure that goals and objectives are being met.

106
Q

what are the 4 performance management strategies

A
  • management by objectives
  • performance appraisals
  • self-evaluation
  • employee observation
107
Q

what does management by objectives involve

A

both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives.

108
Q

what are 3 advantages of management by objectives

A
  • Promotional opportunities may arise for employees who consistently achieve their objectives
  • Collaboration between managers and employees when setting objectives can foster positive workplace relationships
  • Aligning employee objectives with the business’s overall objectives means that employees are always working towards business goals
109
Q

what are 3 disadvantages of management by objectives

A
  • Developing objectives that benefit both the business and employees can take time
  • Employees may take harmful shortcuts in their work in order to achieve their objectives, negatively impacting progress of objective
  • Employees that achieve objectives may desire monetary rewards or promotions, increasing the business’s expenses.
110
Q

what does performance appraisals involve

A

a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for future improvements

111
Q

what is a way that performance appraisals can be undertaken, and how does it work

A

Essay Method, manager will keep a journal on each employee being appraised, these may be about the performance of different aspects of the employees tasks

112
Q

what are 3 advantages of performance appraisals

A
  • Employees who demonstrate strong performance may be recognised for promotional opportunities.
  • Communication between managers and employees during one-on-one reviews, improving workplace relationships.
  • The results from the performance appraisal process can outline areas where employees are struggling, training can be given
113
Q

what are 2 disadvantages of performance appraisals

A
  • Employees may lose motivation if they receive multiple poor performance appraisals
  • This process can be time consuming as managers individually review each employee’s performance
114
Q

what does self-evaluation involve

A

an employee assessing their individual performance against a set of criteria

115
Q

what are 3 advantages of self-evaluation

A
  • Self-evaluation can save managers time, as employees evaluate their own performance
  • The employer can gain insight into an employee’s understanding of their own strengths and weaknesses and assign work accordingly
  • Employees may be empowered to improve performance (directly involved in performance management)
116
Q

what are 3 disadvantages of self-evaluation

A
  • If an employee is biased or dishonest in assessing their performance, a manager will not gain reliable information
  • Employees may underestimate or exaggerate their own skills, (not reliable or accurate eval)
  • Training courses provided to address employee weaknesses can increase business expenses
117
Q

what does employee observation involve

A

a range of employees from different levels of authority assessing another employee’s performance against a set of criteria

118
Q

what are 3 advantages of employee observation

A
  • Employees may be responsive to feedback provided by peers as they value their opinion
  • Where an employee is unaware, they are being observed, this allows for an accurate analysis of an employee’s performance
  • The manager can gain multiple different perspectives about an employee
119
Q

what are 3 disadvantages of employee observation

A
  • Results may be misleading if employees are aware they are being evaluated
  • Employees may feel stressed if they are made aware that they are being observed, leading to poorer performance
  • The development of criteria for observers to use can be time consuming
120
Q

what is termination

A

the process whereby a business ends its employment contract with an employee

121
Q

what are the types of ways employees can be terminated

A

voluntarily, involuntarily

122
Q

what is the termination method that is both voluntary and involuntary

A

redundancy

123
Q

what are the 2 termination methods that are exclusively voluntary

A

retirement, resignation

124
Q

what is the termination method that is exclusively involuntary

A

dismissal

125
Q

what does retirement involve

A

an individual deciding to leave the workforce permanently as they no longer wish to work

126
Q

what does resignation involve

A

an employee voluntarily terminating their own employment, usually to take another job position elsewhere

127
Q

what does redundancy involve

A

an employee no longer working for a business because there is insufficient work or their job no longer exists

128
Q

what is voluntary redundancy

A

a business allows employees to nominate themselves to become redundant after the business announces that this process will occur

129
Q

what is involuntary redundancy

A

a manager notifies employees that their position in the business has been made redundant, providing them with no choice in the matter.

130
Q

what does dismissal involve

A

the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behaviour

131
Q

what are the two considerations a business may have when terminating an employee

A

transition, entitlement

132
Q

what are entitlement considerations

A

legal obligations an employer owes to its employees following the termination of their employment contract

133
Q

what is an example of an entitlement consideration for retirement

A

entitled to receive their accrued entitlements including payment of untaken annual leave and untaken long service leave

134
Q

what is an example of an entitlement consideration for resignation

A

The employee must give a period of notice to the employer. The amount of notice is stipulated in the employment agreement. An employer can withhold money if the employee does not give the minimum required notice.

135
Q

what is an example of an entitlement consideration for redundancy

A

notified in writing about the redundancy which should include matters such as reasons for termination, period of notice, actual date of termination and the redundancy payment

136
Q

what is an example of an entitlement consideration for dismissal

A

to full payment for the work they have completed

137
Q

what are transition considerations

A

social and ethical practices that a manager can consider implementing when terminating employment.

138
Q

what are 3 examples of transition considerations

can apply to many types of termination

A
  • offering resume writing or interview training to employees to improve their employability
  • introducing counselling and financial services to ease the uncertainty of leaving the business
  • providing retiring employees with reduced number of hours as getting closer to retiring
139
Q

what are the 5 main participants in the workplace

A
  • HR managers
  • employers/employer associations
  • employees
  • unions
  • Fair Work Commision
140
Q

what are 3 roles of HR managers

A
  • Act as mediating party
  • Implementing agreements
  • Resolving conflicts
141
Q

employees definition

A

individuals who are hired by a business to complete work tasks and support the achievement of its objectives

142
Q

what is the main goal of employees

A

to work towards completing business objectives

143
Q

what are 3 examples of roles employees can have

A
  • Complete tasks with proper care and diligence
  • Avoid misusing confidential information
  • Obey terms in their contract
144
Q

employer association definition

A

Employer associations are advisory bodies that assist employers in understanding and upholding their legal business obligations.

145
Q

what are 3 roles of employer association

A
  • Employee relations
  • Changes in laws
  • Provide support
146
Q

in depth role of employer association - employee relations

A

they advise in areas related to disputes between businesses and employees, They may offer advice or even be a representative of an employer during a collective bargaining period

147
Q

what is the collective barganing period

A

the negotiation between employer and employees in regards to wages and conditions

148
Q

in depth of employer association - change in laws

A

The associations keep their members informed of the implications of these legislative changes, making employers aware of their rights and obligations.

149
Q

union definition

A

organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions.

150
Q

what are 2 roles of unions

A
  • Seek better wages and work conditions (for emps)
  • Represent employees and negotiate these new wages and conditions (for emps)
151
Q

fair work commision definition

A

Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by the Fair Work Act.

152
Q

what are 3 roles of the fair work commision

A
  • Set national minimum working standards
  • Approve and monitor enterprise agreements
  • Act as a mediator
153
Q

what are the 2 main ways of determining wages and working conditions

A

awards and agreements

154
Q

what are awards

A

legal documents that outline the minimum wages and conditions of work for employees across an entire industry

155
Q

who develops the awards

A

FWC, bases on considering submissions made by employees and employers (or representatives)

156
Q

what are 2 advantages of using awards

A
  • All employees within a particular industry, receive the same minimum wage and working conditions (level playing field)
  • the use of Awards is time efficient, (no bargaining process)
157
Q

what are 2 disadvantages of awards

A
  • Businesses lack the opportunity to develop a relationship with their employees, as awards are based upon predetermined standards
  • Employees may be unsatisfied by only receiving the minimum wages and conditions.
158
Q

what are agreements

A

legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of businesses

159
Q

how is the agreement developed

A

collective bargaining, done by employees and employers (or the representatives) at the workplace level

160
Q

what does collective bargaining involve

A

negotiation between employees or employees (or representatives)

161
Q

does the FWC have to approve the agreements

A

yes

162
Q

what are 3 advantages of agreements

A
  • positive relationships between employees and employers may develop in the negotiation process
  • Greater flexibility for both the employer and the employee in having a collective agreement that reflects the needs of individual workplaces
  • Can improve employee satisfaction and performance (better wages and working conditions)
163
Q

what are 3 disadvantages of agreements

A
  • More time-consuming for employers to undertake negotiations
  • Employees who cannot gain representation from unions may be exploited by employers (power imbalance)
  • As they provide wages and/or working conditions above the Award, they are generally more expensive to implement
164
Q

4

what are disputes commonly about

A

wages and working conditions, safety, and business policies

165
Q

when a dispute occurs, what are the 4 simple steps for an outcome

A
  1. try to resolve in the business
  2. if cannot be solved, get a third party to try to help
  3. attempt mediation
  4. if mediation doesn’t work, go to arbitration
166
Q

what does mediation involve

A

an impartial third-party facilitating discussions between disputing parties to help each side of the conflict reach a resolution themselves

167
Q

what can the third party do in mediation

A

third party only assists the conversation to help the disputing parties to work towards their own agreement but will not offer suggestions or make any decisions on their behalf

168
Q

which dispute resolution method results in a legally binding decision

A

arbitration

169
Q

what are 3 advantages of mediaition

A
  • Participants in mediation are generally more satisfied with the agreed outcome
  • It is less expensive than more formal dispute resolution processes (informal setting)
  • When parties reach decisions together, it promotes positive working relationships for the future
170
Q

what are 3 disadvantages of mediation

A
  • Each party is under no obligation to reach an agreement
  • There may be an unbalanced power dynamic between employees and managers (employees are tentatitive/nervous)
  • If a final decision is not reached, the process can be a waste of time.
171
Q

what does arbitration involve

A

an independent third-party hearing arguments from both disputing parties and making a legally binding decision to resolve the conflict

172
Q

what are 2 advantages of arbitration

A
  • It guarantees that a final decision is made by a third party
  • The final decision is legally binding (argument cannot happen again)
173
Q

what are 3 disadvantages of arbitration

A
  • expensive, due to the costs incurred from conducting hearings.
  • Employees have reduced control over the final decision and therefore may be unhappy at the end of this process.
  • may harm future workplace relations (people may be unhappy (both parties))
174
Q

what are 2 similarities between arbitration and mediation

A
  • Both methods require an independent body or individual to be involved in resolving the dispute
  • Both methods are more formal than resolving disputes within a workplace without a third party
175
Q

what are the 2 dispute resolution methods

A

mediation and arbitration

Business 3&4 (7 decks)

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