Influences Flashcards
Stakeholders - employers
- those who exercise control over employees, have responsibility for payment of wages and/or salaries + working conditions + have power to dismiss employees
- Interested in employee productivity + costs as these affect the competitive position of (b)
- goals: efficiency, profitability, productivity, competitiveness
- if HR is poorly managed, employers will suffer from low productivity, higher costs + possible industrial action
Stakeholders - employees
- workers under control of employer - control includes workplace location, the way work is performed, extent of supervision
- today = more highly educated → become bored quickly + demand more challenging work, involvement in decision-making + autonomy
- Interested in job security, working conditions + pay
- responsibility = complete tasks in a lawful manner
- if HR poorly managed = employees suffer from lower water + less safe, rewarding + interesting workplace
- following periods of extensive downsizing recently, employees don’t trust 1 (b) to look after needs (churning)
Stakeholders - employer associations
- act on behalf of employers in collective bargaining sessions + before industrial tribunals + courts - usually in wages, conditions + safety
Provide advice on matters such as unfair dismissals and discrimination issues - role: lobby govt with employer views; appear before industrial tribunals on behalf of members; advise on Equal Employment Opportunity, dismissal, wage negotiation
E.g. Aus Industry Group, Aus Medical Association
Stakeholders - trade unions
- Orgs formed by employees in industry, trade or occ. to represent them in efforts to improve wages + working conditions of members
- represents employees in: industrial conflict, WHS, negotiating wage + working conditions
- system for resolving industrial disputes gave unions a powerful role in HR - provided unions with an official bargaining position in making of industrial agreements
E.g. Aus Council of Trade Unions (ACTU), Aus workers union, IEU
Stakeholders - government organisations
- Legislator = pass laws in parliaments which provide legal framework for IR; (b)’s must uphold these laws
- employer = govt’s provide public service jobs, e.g. teachers, nurses
Fair Work Australia - National workplace relations tribunal established under Fair Work Act 2009 (Cwlth) - brought in as employees being taken advantage of: migrants, youth, disability
- functions include: safety net of min. wages + conditions (NES) → protection, resolving disputes, supervising development of awards/agreements, hearing appeals + handling unfair dismissal cases
Federal Court of Australia - handles cases relating to industrial action + breaches of industrial law
- able to impose penalties for breach of an award or order, discrimination or victimisation under industrial + human rights legislation
- other govt agencies: Aus Human Rights Commission (HREOC), Workplace Gender Equality Agency (WGEA)
Stakeholders - society
- workplace practices often reflective of behaviours upheld within society
- issues e.g. discrimination, harassment + unfair working conditions = becoming increasingly publicised + (b)’s must be seen to respond consistently to society’s views
- decisions in HR impact standards of living + rate of economic growth
Legal - the current legal framework
- laws + regulations that deal with employee relations - laws restrict (b)’s decision making power by stating conditions that must be followed
→ legislation covers: nature of employment contracts + agreements; dispute-settling methods; protection of human rights in employment
Legal
- the employment contract - common law (rights + obligations of employers + employees)
- a legally binding, formal agreement b/w employer + employee defining the rights + conditions for work
- features: salary/wage, supa, hours, benefits, duties
Common Law - developed by courts + tribunals
- under common law, both employers + employees have basic obligations in any employment r/s
Employers - Obligations: provide work, payment of income + expenses, duty of care - safe work conditions
- Rights: employees work with care + responsibility,
employees carry out work according agreement/award, notified of employee intention to take leave or leave (b)
Employees - Obligations: carry out duties in beneficial way to (b), maintain confidentiality + not use info in detrimental way, obey lawful + reasonable commands
- Rights: be paid for time worked (including overtime),
receive min. set out in award/agreement, receive allowances for tools + uniforms if applicable
Legal
- the employment contract - minimum employment standards
- must be provided by employers + state min conditions for employees
- provide basis from which modern awards + enterprise agreements are constructed
1. maximum weekly hours
2. flexible working arrangements
3. parental leave + related entitlements
4. annual leave
5. personal carers leave + compassionate leave
6. community service leave
7. long service leave
8. public holidays
9. notice of termination + redundancy pay
10. Fair Work Info Statement
Legal
- the employment contract - minimum wage rate
- base rate of pay for the no. of hrs they have worked
- generally determined by a modern award, enterprise agreement or the national minimum wage
- both employees + employers cannot agree upon a pay rate that is less than the minimum wage
- 2009 → part of Fair Work Act, set for all employees, approved by FWC
Legal
- the employment contract - awards
- sets out legally enforceable min. terms + conditions that apply to a (b) or industry
- handed down by FWA
- modern award conditions apply on top of NES + act as a basis for negotiation in enterprise agreements
- Includes min. wages, overtime + penalty rates, dispute settlement procedures, leave, allowances, super etc.
- flexibility term (IFA) - allows parties to negotiate changes to some conditions in modern award - arrangement must not undermine min. entitlements, must leave better off (BOOT TEST)
- modern awards = key feature of current IR system that sought to simplify older existing awards into industry or occupation-based categories
Legal
- the employment contract - enterprise agreements
- collective agreement made at a workplace level b/w an employer + a group of employees about terms + conditions of employment
- offer broader terms + conditions than a modern award, + are an alternative to a modern award
- 3 types:
1. Single-EA - made b/w single employer + group of employees
2. Multi-EA - made b/w 2 or more employers + groups of their employees
3. Greenfield agreements - single-E + multi-E agreements relating to a genuine new enterprise of the employer(s) before any employees are employed - Key features: pass BOOT + be approved by FWC, not include unlawful terms, include dispute settlement procedure + flexibility, expires within 4 yrs
- Cover pay rates, penalty rates, overtime, allowances, hours of work, leave
- may be negotiated with input of a union
Legal
- the employment contract - other employment contracts
Individual Common Law Employment Contracts
- cover employees not on federal agreements or specific state agreements, particularly those earning over limit of award wages
Independent Contractors
- undertake work for others, however, don’t have same legal status as an employee
- generally undertake a contract, service or project for another (b), + work for multiple clients
- carries most of risk on a job undertaken - covering own superannuation, tax, insurances + leave
Contracts for Casual Work
- contracts with employers for short-term, irregular or seasonal work
- many employers prefer casuals as reduces costs for recruitment, dismissals + other on costs
Part-Time Contracts
- continuing employment contract + work less than 38 hrs per week
- have access to employment entitlements offered to full time employees, but on a pro rata basis
Discuss the influence of government on the process of determining employment contracts
- govt’s pass laws which provide the legal framework for IR e.g. Fair Work Act
→ ensuring employees not disadvantaged + treated fairly - govt’s establish the institutions + processes used by employers + employees to conduct bargaining + resolve disputes when determining employment contracts
→ ensuring employee + employer protection - however laws quite restrictive = reducing bargaining power + negotiation
- due to changing comm. + worker expectations on SJ, safety + env, govt laws = reformed to reflect these
- Fair Work’s legislation aimed at ensuring govt’s role in determining employment contracts = limited
→ creating a legal framework that facilitates negotiation of EA, NES + min. wages
Legal
- Work health and safety
- WHS Act 2011 (Cwlth) = establishes rights + responsibilities of parties in regards to workplace safety
→ adaptations made due to COVID (58% of (b) were able to integrate working from home/flexible working arrangements to minimise risk) - stipulates that employers must:
→ ensure health, safety + welfare at work of all employees
→ take out workers compensation insurance
→ Keep records of wages + injuries
→ take steps to ensure non-workers on site are not exposed to risks
→ establish OHS committee with 20+ employee (b)’s - best practice (b)’s: undertake regular safety audits; benchmarks performance; implements comprehensive safety programs; visible: policy statements, safety signs, reminders; regular training
→ COVID: duty to provide info + instruction to employees about health risks + monitor, assess + take steps to mitigate risks e.g. sanitisers, add. cleaning, 1.5m
Legal
- Workers compensation
- range of benefits to an employee suffering from an injury or disease related to work
- WC matters are administered by SafeWork NSW (a statutory body responsible for achieving safe workplaces, effective return to work + security for injured workers)
- supports injured workers = benefits + assistance needed to recover + return to safe, ongoing work
Legal
- Anti-discrimination + equal employment opportunity
Anti-discrimination
- discrimination occurs when a policy or a practice disadvantages a person or a group because of personal characteristic that is irrelevant to performance of work = anti-discrimination law act
- Includes harassment + vilification
- AD legislation has been enacted to protect employees from direct + indirect discrimination in recruitment, selection, training, promotion, remuneration, termination + opportunities to access other benefits
- strategies to eliminate:
→ Committing to workplace free from discrimination
→ Writing + communicating policies e.g. a code of conduct
→ Training cultural diversity issues + ways to prevent or deal with discrimination + harassment
→ Appointing a grievance officer
Equal Employment Opportunity
- refers to equitable policies + practices in recruitment, selection, training + promotion
- Ensures best person for job chosen, gains person with skills + abilities most appropriate + more positive env
- level of equity reflected in extent to which women + minority groups have access to different occupations + positions within the (b)
- to comply with legislation, (b)’s implement affirmative action policies + positive steps to overcome current + historical causes of lack of EEO
Statutes
- laws made by federal + state parliaments e.g. laws relating to employment conditions
- provide framework for awards + agreements + resolution of disputes + require employers to:
→ Meet WHS requirements
→ Maintain workers’ compensation insurance
→ Provide all employees with super + leave
→ Ensure employment practices = free from discrimination
→ Give each new employee, covered by the national IR system, a Fair Work Info Statement
Economic
Economic cycle
- demand for labour determined by demand for g/s within the economy
Boom
- high demand for labour - raised production
- low unemployment
- better negotiating power = improved wages + conditions
Bust
- Unemployment rises + increased comp. for work
- Reduced staff to cut costs (redundancy)
- Employee bargaining power fails
- Global changes + outsourcing
Globalisation
- increased level of international competitions
- many restructure, outsource non-core functions or subcontract production in order to compete effectively
- relocate production in other cities where dispute levels, labour costs + regulatory costs are lower
- training in management of multicultural workforces, with differing approaches to power, authority + role of groups/individuals = increasing with globalisation of (b)
Technological
- production methods change because of new tech → loss of old jobs, increase of new jobs
- tech change = major source of improvements in productivity, communication + comp b/w (b)’s
- causing nature of production + services to change + new jobs to be created while other are made redundant
- allow firms to operate anywhere anytime + harness staff through telecommuting - re-engineering + restructuring
- increase need for ongoing training programs + new protocols to ensure that work-life balance is maintained
- training modules online e.g. videos, interactive programs or tests
→ COVID = working from home (tech aids)
Social - changing work patterns
- HR = significantly affected by CWP e.g. growth in women participating in workforce
- trend of women reentering workforce, has led HR managers to provide workplaces that offer flexible working hours to ensure work-life balance
- due to increased no. of women + casualiation (b)’s = affected through legislation + expectations
→ required to provide parental, carers + family leave + possibility of rewards (affordable childcare arrangements) - drift away from traditional full-time employment towards part-time employment
- reasons for changing work patterns: career flexibility + job mobility, increased participation rates for women, ageing of workforce, early retirement
Social - living standards
- high living standings in Aus result in OHS, regular wage increases, fringe benefits, leave, superannuation benefits
- companies who seek to undercut conditions to reduce costs and increase profits will be challenged by unions keen to avoid erosion of our living standards
- high living standards make Aus attractive for woking + immigration, access to local + international skilled workers
- Social Disadvantages: cost of ‘weekends’ + lost penalty rates, blurring of work/home lives (email communication + work extra hrs + holidays/weekends lost), uncertainty of casual work, financial pressure (reduction of govt benefits)
Ethics + Corporate Social Responsibility
- ethical (b) practices = practices that are socially responsible, morally right, honourable + fair
- not ethical = poor morale, low productivity, heavy costs + industrial disputes
- pleasant work env + good working conditions = valuable in motivating + retaining staff
- Performance + motivation = maximised when staff feel secure, confident, recognised, valued + rewarded for their efforts = lower absenteeism + increased retention
- ethical framework developed including:
→ code of conduct: statement of acceptable + unacceptable behaviours in a (b)
→ code of ethics: statement of a firm’s values + principles - CSR = commitment by a (b) to contribute to sustainable development by delivering economic, social + env benefits for all stakeholders
- treating staff well + acting responsibly, employers = sustain valuable, productive employees, + avoid damage to company reputation
- seen through regularly undertaking audits of, working with agencies to support ethical practice in local + offshore operations
- rapid rise in globalisation = increased comp + efficiency, reduced costs, however, faces ethical issues e.g. exploiting regulatory differences → many (b)’s turned to outsourcing to reduce costs while taking advantage of relaxed labour laws
