U3 AOS2 Flashcards
employee
a person working for another person or business for wages or a salary
- employee engagement
- productivity
business objectives
the stated, measurable targets how to achieve business goals
Human resource management (HRM)
the management of a wide range of responsibilities relating to the human (employees) function within a business to increase the efficiency or both employees and the business
- how to motivate
- how to train
- termination
employee hr manager relationship
employees that are well supported by HR will achieve business objectives
HR business objective relationship
HR without business objectives don’t know how to help employees achieve
training
process of providing staff with knowledge or skills required to do a particular job, can include a range of different activities
on the job training examples
- Coaching, tutoring, mentoring
- Role modelling
- Apprenticeship
- Job rotation
- Planned work activities
off the job training examples
- Information presentation/lecture
- Simulations
- Role plays
- Information processing style
advantages of on the job training
- Cost effective as not paying for outside provider
- Employee works and learns at the same time, hence being productive
- Training is specifically tailored to the needs of the business
- Employee is being trained on the specific tools or equipment they will be using in their role
advantages of off the job training
- Wider range of skills can be taught/learner
- Learning from specialists and experts
- Less opportunity for workplace interruptions, so more focus on training
- Provides opportunity for networking and info sharing with employees
disadvantages of on the job training
- Trainer may have to leave their own duties to carry out the training
- Trainer may pass on bad habits to the trainees, often without realising they are doing so
- External trainer may be unfamiliar with practices and equipment in that business
- If training it not adequately planned, making it difficult for employees to grasp some concepts
disadvantages of off the job training
- More expensive if paying course fees, transport, accommodation
- Lost working time and potential output from employees while on the training course
- Employee with these skills/qualifications may leave the business to gain a job somewhere else, possibly for higher pay
- Skills acquired may not directly relate to that workplace
development
process designed to build up sills necessary for future work activities and responsibilities
performance management strategies
the system used to improve organisational, functional and individual performance through linking the objectives of each; it assessed all phases of the employment cycle.
- Vital for all businesses to conduct a continuous process of evaluating how effectively their employees are fulfilling their responsibilities and contributing to achieving business objectives and fulfil the businesses mission
what can strategies of performance management drive decisions about
- employee performance
- remuneration
- promotion
- transfers
- disciplinary procedures
- training/development
- termination
Management By Objectives (MBO)
Uses a set of quantifiable or objective standards against which to measure the performance of a company and its employees
- By comparing actual productivity to a given set of standards, managers can identify problem areas and improve efficiency
- Adopting the MBO strategy has the advantage of both manager and employee being aware of expected objectives and standards
- To be entirely effective as a method or strategy, it needs to be adopted throughout the entire business
Appraisals
Performance appraisals measure how well an employee has performed their job, provides feedback to employees and establishes places to improve performance
- Aims to improve organisational efficiency and performance by ensuring that employees are performing to the best of their ability and can develop their potential while also earning an appropriate reward
- Enables reporting on performance by reviewing staff selection, effectiveness of training/development programs, opportunities for training/development/motivation programs and acts decision making tool (in relation to remuneration, reward, promotion and dismissal)
Self evaluation
Where an employee self-assesses both their performance related to their predetermined objectives and their contribution to their business team or unit
- Provides employees with engaged role in performance management
- Difference between self and manager opinions creates opportunity for communication and review of current business processes (Training/Development)
Employee observation
Passively observing an employee perform their job to gain insight into the position or the way in which the individual carries out their job function and responds to stresses and demands
E.g. 360 degree multisource feedback which provides feedback to employees from each group of people they work with, (managers, colleagues, subordinates, customers)
termination management
Termination results from decisions made by either the employer or the employee to end the employment contract and relationship
- The relationship may be terminated by either the employer or the employee to end the employment contract and relationship
voluntary termination methods
when an employee decides to leave a business
what are the 2 voluntary termination methods
resignation and retirement
resignation
Voluntary termination that occurs when an employee leaves the workplace, usually to go to another job
- Must notify the employer in writing of the intention to resign (providing period of notice)
- Exit interview is recommended
retirement
Voluntary termination where an employee decides to leave the paid workforce
- Association with older employees and younger employees who no longer wish to work
- Must notify the employer in writing of the intention to retire (providing period of notice)
involuntary termination methods
When an employer decides that an employee must leave a business
what are the 2 involuntary termination methods
redundancy and dismissal
redundancy
An employee is redundant when there is no longer sufficient work for the employee to perform
- Must notify the employee in writing regarding reasons for termination, period of notice, date of termination and redundancy payment
- To be retrenched is the expression used to describe what occurs to an employee when their job becomes redundant
Dismissal
Termination of an employment contract due to incompetence or indiscipline
- The business must ensure that they have conducted appropriate counselling and disciplinary procedures before this takes place
- Employer is required to provide written notice of termination (including reasoning and period of notice)
what are the 2 termination considerations
entitlement considerations and transition considerations
entitlement considerations
When an employment relationship ends, employees are entitled to receive the following:
- Remuneration wages/salary still owing
- Accrued annual leave
- Their long service leave entitlements
severance or redundancy entitlements will be paid to employees made redundant (retrenched). The amount received by the employee will differ based on their years of service at the business
Transition considerations
Exist for workers who are retiring or have been retrenched from their role
- Retirement = assistance to organise finances, ease change in lifestyle, connection to community opportunities, reduce working days in lead up
- Redundancy = outplacement (support including counselling, skill development, resume assistance, setting up interview)
workplace relations
the relationship between employers and employees in determining wages, conditions and methods of resolving disputes should they arise
what is an employees role in a workplace
- Complete set tasks by management
- Be productive, engaged and effective
- Have ethical behaviours and values
- Should be treated fairly and treat others fairly
trade unions
an organisation formed to represent and protect the rights of workers in a particular industry - Works to support employees
Employees who choose to join a union pay an annual subscription fee. The union then:
- Negotiates and bargains on their behalf during the enterprise bargaining process
- Argues the employees’ case during hearings that determine awards
- Aids and support to individual workers
- Offers services and facilities to members, such as credit unions and health insurance
- Provides information to members on matters relevant to their workplace situation
- Acts as official spokesperson to the media on behalf of union members
employer associates
a body of employers that promotes the economic and social interests of its members by providing advice to employers and representing their interests in employee relations issues
Industry associations
Professional associations
Broad based/peak bodies
the role of employer associates is to
- Represent employers in Fair work commission cases
- Represent employers during collective bargaining over wages and conditions
- Advise employers of their rights and obligations
- Act as a spokesperson for members of their organisation
human resource managers
the management of a wide range of responsibilities relating to human (employees) function within a business to increase efficiency of both employees
role of HR manager includes
- Administering day-to-today procedures, ensuring that employees receive correct wages entitlements
- Negotiating with employees and/or representatives (unions) in establishing enterprise
- Participating in the dispute resolution process
- Responding to workplace relations queries from employees and management
- Acting as an intermediary between employees/unions and senior management
Fair work commission
Australia’s national workplace relations tribunal or industrial court. The fair work commission has the power to make legally binding decisions and orders relating to workplace relations
the role of the fair work commission is to
- Reviews the national employment standards
- Creates and maintains a safety net of minimum wages and working conditions for Australian employees covered by the 122 national industry awards, which are reviewed every four years
- Ratifies enterprise agreements, applying the better off overall test (BOOT = better off overall)
- Make decisions regarding industrial actions such as strikes that can be determined as ‘protected’ or ‘unprotected’
- Aids with the resolution of workplace disputes
- Hears and determines unfair dismissal cases
Awards
(whole industry)
Outline the minimum pay rates and conditions of work for an entire Australian industry, NOT REWARDS
- Legally binding minimum requirements for wages & conditions applying to specific industries
- Awards are reviewed by the Fair Work Commission every four years and are legally enforceable
- They establish terms of employment for various occupations and levels in a particular industry
- There are 122 industry and occupation awards that cover most Australian employees
- An award does not apply when a business has an enterprise agreement or other registered agreements with its employees.
- Awards serve as a safety net guaranteeing minimum wages and condition
each award specifies
- Minimum wages
- Working conditions and overtime
- Holidays and leave
- Penalty rates and allowances
- Procedures for resolution of grievances and termination of employment
- Superannuation
- Annual leave and leave loadings
advantages of awards
- Wage equality and transparency across industry
- Stability and predictability in negotiation process
- Employees can be represented by people skilled in negotiating, including unions
disadvantages of awards
- Less flexible to needs of individual business
- Hard to build in individualised productivity incentives
- Some strong unions can exert enormous influence
- No incentive for local employee-employer relations
Agreements
(Individual business)
Results from negotiations between an employer and union (employees) and is registered (ratified) by the Fair Work Commission, setting out the terms and conditions of employment at a workplace
- Enterprise agreements apply to specific businesses (employers)
- Enterprise agreements are reached via a process of enterprise bargaining (negotiating) between one or more employers and two or more employees with their chose representatives, usually a trade union
- Enterprise agreements can be tailored to meet the needs of employees at a given workplace
- An enterprise agreement must be approved by a majority vote of employees affected. Once an enterprise agreement is in place, both employer and employees are legally bound to adhere to it
Enterprise agreements must be registered with and ratified by the Fair Work Commission, which will ensure that the following criteria are met:
- Employees are better off overall than under the relevant modern award
- No unlawful terms are included
- Individual flexibility arrangements are included to meet the genuine needs of employees
- The agreement runs for a specified time of up to four years
- A dispute settlement procedure (grievance procedure) is included
advantages of agreements
- More flexible to needs of individual businesses
- Easier to build in individualised productivity incentives
- Large incentive for good employee-employer relations
disadvantages of agreements
- Less wage equality and transparency across industry
- Less collective employee strength in bargaining
similarities between awards and agreements
- Both methods can be used to determine wages and conditions of work (at or above)
Agreements are at or above the award
Awards are at or above the minimum standards (NES) - Legally enforceable/binding
- Both confirmed/ratified by the Fair Work Commission
- Both used to meet the needs of employees within the industry/business
- HRM will provide feedback to FWC (as representative) in relation to awards and agreements (they will forward agreement for ratification)
- HRM will enforce the award or agreement within the workplace
differences between awards and agreements
- Have different outcomes in wages and conditions of work
- Agreements are negotiated by the business whereas awards is reviewed and set by the FWC (in consultation with other stakeholders)
- Agreements are focussed on the personal needs/tailoring of the business of the business, whereas awards focus on industry wide needs
dispute resolution
a formal process that enables employees to complain about matters that affect them and their work
- Workplaces are expected to support the discussion, negotiation & resolution of disputes
- It is essential for workplaces to work towards a speedy resolution or run the risk of increasing inefficiencies in the workplace resulting from employee dissatisfaction
- The NES awards and agreements must include a dispute resolution process
Dispute resolution process
Grievance: grievance being brought to the attention of management, usually HRM
Negotiation: Negotiated outcome, where a settlement is reached within the business
Mediation: Mediated outcome, where an independent mediator (FWC) assists the parties to talk about the issues and arrive at their own agreement
Conciliation: Which may occur if mediation fails to produce agreement; this differs from mediation as the conciliator is able to suggest solutions with both parties agreeing to the outcome
Arbitration: Where an independent arbitrator at the FWC determines how the dispute is to be resolved and makes a binding decision
