unit 3 aos 2 Flashcards
Human resourse management
What does HR do
- effectively managing employees in a business and the relationship between employees and the business
- the motivation of employees, with the aim of ensuring the business objectives are successfully met.
relationship between HR and business objectives (BO)
- knowledge/skill/efforts of employee have effect on how well business will achieve the BO.
- HR is responsible for the management of (E), which include:
- hiring suitable (E) to perform the specific tasks required
- ensuring they are suitably trained
- providing motivation to encourage them to put an appropriate amount level of effort
BO: expand market share
What are HR’s objectives and strategies?
(o): Increase worker productivity
(s): Introduce motivation strategies
BO: increase in sales
What are HR’s objectives and strategies?
(o): Develop sales skills
(s): Performance-related pay
BO: increase in profits
What are HR’s objectives and strategies?
(o): Improve product knowledge
(s): ongoing training
BO: provide safe workplace
What are HR’s objectives and strategies?
(o): Reduce number of accidents
(s): Establishment of work teams & Introduction of flexible work practices
Marslow’s Hierarchy of Needs (MHN): Definition
suggests that all humans have five fundamental needs that they strive to achieve in a sequential order.
Marslow’s Hierarchy of Needs (MHN): (1)
Physiological:
- the basic needs for human survival
(HR) can provide enough remuneration to satisfy this needs - called a living wage (minimum income required to afford basic needs)
Marslow’s Hierarchy of Needs (MHN): (2)
Safety & Security:
- desires to be protected from environments that pose a risk
-> safety need: avoid physical harm
= HR can ensure business is abiding OH&S/ wearing protective clothing / trained if handling dangerous equipment
-> security need: have stable income
= HR can provide long-term employee contracts/ training opportunities &programs
Marslow’s Hierarchy of Needs (MHN): (3)
Social Needs:
- desire for a sense of belonging and strong interpersonal skills within and outside the workplace
(HR) can encourage then to work in teams / organize social gatherings / celebrate birthdays
Marslow’s Hierarchy of Needs (MHN): (4)
Esteem Needs:
- desire for recognition, respect, and a sense of accomplishment
(HR) can provide recognition + reward program / provide expanding job responsibilities / promote employees to higher positions
Marslow’s Hierarchy of Needs (MHN): (5)
Self Acualisation:
- personal desire to achieve their full potential through creativity, personal growth and development
(HR) can provide work that is interesting, challenging & allows creativity / provide opportunities for skills and knowledge development
Marslow’s Hierarchy of Needs (MHN):
Implication for managers
- identify the level each employee is one and then provide strategies to move them up to the next highest level
- MUST go bottom to top
- acknowledge that employees may be on different levels
Marslow’s Hierarchy of Needs (MHN):
strengths
1) allows management to develop an understanding of individual needs
2) Allows management to be aware that employees will be at different stages of development and so need to be motivated using a variety of methods.
3)The theory is fairly easy to understand
Marslow’s Hierarchy of Needs (MHN):
weaknesses
1) Maslow’s Hierarchy of Needs is only a theory and not supported by proper evidence
2)hard to identify the stage at which each individual employee is — may make it difficult to determine an appropriate strategy to motivate each employee.
3)The Hierarchy of Needs is very simplistic and one motivation strategy should be able to satisfy several needs at the same time.
Goal Setting Theory (GST):
definition
posits that if 5 principles are applied when setting goals, it’s likely to enhance the motivation and performance of certain individuals
Goal Setting Theory (GST):
what are the 5 principles?
1)clarity
2)challenge
3)commitment
4)feedback
5)complexity of tasks
Goal Setting Theory (GST):
1) clarity
Goals should be clear and specific.
- clear if it is measurable.
- a goal is specific if it is time-bound.
Goal Setting Theory (GST):
2) challenge
A goal should be challenging in the sense that the goal will extend the employee in a manner that will help
achieve the overall business objectives.
o This is the case because the motivation provided by a goal will be reduced if the goal:
(a) is too easy for the employee to achieve; or
(b) lacks importance in the operations of the business.
A goal should also be attainable in the sense that the goal is not beyond an employee’s capabilities.
Goal Setting Theory (GST):
3) commitment
The employee should be committed towards (ie, dedicated to) the achievement of the goal.
The preferred way to get the employee committed is to include them in the goal setting process (ie, the goal is set collaboratively between management and the employee).
- more employee input = more commitment
Goal Setting Theory (GST):
4) feedback
During the process of working towards achieving a set goal, an employee should be provided with regular constructive
feedback.
- manager can provide suggestions to improve, whilst minimizing the extent to which E is demotivated
- also recognise the work put in
Goal Setting Theory (GST):
5) complexity of task
If a goal is clear, specific and challenging, it is likely that, for the goal to be achieved, a number of complex tasks will need to be carried out. it acceptable if:
- complex enough to motivate E (not overwhelming)
- additional training and/or support provided = skill development
- timeframe is appropriate for the tasks themselves and employee skill level
Goal Setting Theory (GST):
implication for managers
- set these goals with employees to align them with BO and their needs
- provide ongoing support, feedback, suggestions in formal and non-formal ways
Goal Setting Theory (GST):
strenghts
- many studies support this theory
- better relationships between managers and employees will occur as manages work with each employee to collaboratively set goals and provide feedback
- this theory will improve motivate, improve performance and contribute to BO
Goal Setting Theory (GST):
weaknesses
- goals set too vague can lead to poor management - goals not challenging (too overwhelming) can be demotivating
- individual goals may clash with each other or BO or not support the attainment of BO
- failing to meet a goal could be detrimental to an employee’s confidence
- focus so intensely on the goal, E may ignore other aspects of their job
The Four Drive Theory (FDT): definition
suggest that there are 4 basic human needs that influence human behaviour
The Four Drive Theory (FDT): what are the 4 drives
1) drive to aqure
2) drive to bond
3) drive to learn
4) drive to defend
The Four Drive Theory (FDT): (1) drive to aquire
desire for:
- promote achievements
- own material goods
- status, power & influence
The Four Drive Theory (FDT): (2) drive to bond
desire to:
- develop bonds and friendships
- sense of belonging
The Four Drive Theory (FDT): (3) drive to learn
desire to:
- learn more
- need to understand the world around us
The Four Drive Theory (FDT): (4) drive to defend
desire to:
- fairness and ethical
- safety
- removement of fears and insecurities in workplace
The Four Drive Theory (FDT): implication for managers
??
The Four Drive Theory (FDT): strenghts
- drives work independantly allowing management and E to be flexible in behaviours or strategies implemented
- very adaptable theory to complicated or intricate enviroments’situations
- will convert into effort that is directed at improving behaviours
The Four Drive Theory (FDT): weaknesses
- don’t necessarily explain all individual characteristics that may motivate a person
motivation strategies
are the plans and methods of which managers can implement to increase motivation
motivation strategies 1:
performance related pay
a financial reward
to employees whose work has reached or
exceeded a set standard
- received as: sales commision, profit sharing, employees being allocated shares, bonus
motivation strategies 1:
performance related pay
advantages
- Remuneration can be linked to achieving business
objectives. - Can be used to motivate employees at once – Timely.
motivation strategies 1:
performance related pay
disadvantages
- Employees may take harmful shortcuts to the company or economy to received a reward.
- May have a negative impact on corporate culture
- Rewards may be unequal between employees.
- may need to be increase for the same effect
motivation strategies 1:
performance related pay
long-term
through:
* example, share plans, profit sharing and gainsharing tend
Example 1 – share plans:
Shares can rise and fall in value in the short term, but generally trend upwards in value over a longer
period.
o Example 2 – profit sharing:
Profits require employees to take a long-term view of a business’ success because profits aren’t
guaranteed every year.
o Example 3 – gainsharing:
Employee suggestions may take a long time to result in a business’ productivity improving and/or
production costs decreasing.
motivation strategies 1:
performance related pay
short term
Employees can be motivated to meet or exceed pre-determined goals or criteria in order to receive immediate
financial rewards, such as a pay increase, a bonus or a commission on sales.
motivation strategies 2:
career advancement
promoting employees to positions that
include more responsibility
BC:
- increased remunereation (salery +)
- better benifits
- job experiance
- ambition/status
motivation strategies 2:
career advancement
advantages
- Promotion helps retain high performing employees.
- Promoted employees feel valued, improving morale.
- Promotion from within can be cheaper than recruiting
externally.
motivation strategies 2:
career advancement
disadvantages
- Limited management positions/Employees can be overlooked.
- Can negatively influence corporate culture.
- Inexperienced employees can be in over their heads.
motivation strategies 2:
career advancement
long term
(1) If a business can provide its employee with ongoing opportunities to be promoted, career advancement can be
a source of long-term employee motivation, with the employees being encouraged to remain with the business,
rather than to seek opportunities elsewhere. In doing so, career advancement can help reduce staff turnover
.
(2) The long-term benefits provided by an employee advancing their career can be a source of long-term
employee motivation by satisfying Maslow’s high order needs.
(3) The long-term benefits provided by an employee advancing their career can be a source of long-term
employee motivation by satisfying Lawrence and Nohria’s drive to bond and drive to learn.
motivation strategies 2:
career advancement
short term
The short-term benefits provided by an employee advancing their career – such as a pay rise and/or greater
job security – can motivate them to do what is necessary to maximise the likelihood of them being granted this
advancement (eg, performing their job at as high a standard as possible).
motivation strategies 3:
investment in training
employees gain skill and job knowledge through training and job experience
motivation strategies 3:
investment in training
advantages
- Increases employee productivity and performance.
- Builds relationships within the business.
- Employees feel valued within the business.
motivation strategies 3:
investment in training
disadvantages
- Employees may be absent from work to receive training.
- Some employees may not value training.
- Training employees is both time consuming and costly
to a business.
motivation strategies 3:
investment in training
short term
tolearn the skill relevent to achieving their goal
motivation strategies 3:
investment in training
long term
motivation strategies 4:
support
The strategies and resources a business provides to motivate employees, including training, recognition, communication and creating a positive work culture
motivation strategies 4:
support
advantages
- Employees who are supported are less likely to leave thebusiness.
- Employees feel valued when their wellbeing is beingsupported.
- Implementation is cheap and cost effective.
motivation strategies 4:
support
disadvantages
- Reliance on manager having good interpersonal and communication skills.
- Can be time consuming.
- May not motivate employees quickly, but over time.
motivation strategies 4:
sanctions
involves penalty being imposed on an employee for poor work.
- some may only take it seriously if threated with a sanction for their unacceptable performance
motivation strategies 4:
sanctions
advantages
- Forces employees to abide by business policies to help
achieve business objectives. - Immediate motivation.
- No immediate cost to implement.
motivation strategies 4:
sanctions
disadvantages
- Can negatively impact corporate culture as tasks are completed out of fear.
- Decreasing trust between management and employees.
- Replacing employees can be both costly and time
consuming.
TRAINING:
on - the - job
On-the-job training is employees improving their knowledge and skills within the work place.
Enables employees to become familiar with the equipment, machinery or processes in the workplace related to their role.
done by - job shadowing / being coached by existing E / senior E as mentor / external trainer brought in / job rotations
TRAINING:
on - the - job
advantages
- E feel more comfortable as it is done in a familiar enviroment
- cheaper than off-the-job training bc of additional costs like travel &accomodation
- uses equipment within workplace = familiarity + confidence
TRAINING:
on - the - job
disadvantages
- those co-workers training others may not be skilled enough to teach = low quality
- may lose own productivity as they leave their own duties to provide training
TRAINING:
off - the - job
employees improving their knowledge and skills in a location external to the business.
Enables employees to be sent off-site to perform specialised courses with professional instructors.
done by - attending conferences / performing simulations or workshop / uni & tafe/ online training outside of working hours
TRAINING:
off - the - job
advantages
- covers a wide range of skills and knowledge than on-the-job
- co-workers don’t need to leave the job to provide training
- exposes employees with broader experiences
TRAINING:
off - the - job
disadvantages
- E are absent from workplace = delay of tasks
- more expensive
- travelling to location may be time consuming
Performance management strategies
the processes used to measure and improve business objectives and employee performance to help ensure the business and employee performance objectives are being met
- both need to be aligned (E & BO)
- performance of E need to be measured and evaluated
Performance management strategies: Management By Objectives
involves management and employees agreeing on a set of goals for each employee with them contributing to the overall objectives of business
- involves regular monitoring = providing feedback = offering assistance or implementing training that’ll aid
Performance management strategies: Management By Objectives
Advantages
- aligns BO with E
- increases collaboration, E commitment and builds relationships
- success and achievement can improve corporate culture
Performance management strategies: Management By Objectives
Disadvantages
- E may take harmful shortcuts in achieving the objectives
- failure can be demoralizing
- creating objectives can be time consuming
Performance management strategies: Appraisals
the formal assessment of how well and employee is performing their role
- often done against a set of pre-determined performance criteria
- provides them feedback and plans to improve in the future
Performance management strategies: Appraisals - purpose
Management to:
1) provide E with feedback
2) determine whether E should be granted pay rise/promotion
3) monitor E performance
4) identify E training and developmental needs
5) identify new objectives for E and put a plan for them to improve
6) review E objectives in line with BO
Performance management strategies: common methods of Appraisals:
the essay method
manager keeps a journal on each employee to whom they’ll be carrying out an appraisal
Performance management strategies: common methods of Appraisals:
The critical incident method
similar to essay method but manager only takes record of exceptionally good or bad aspects of work performance
Performance management strategies: common methods of Appraisals:
The comparison method
manager ranks each employee against a list of pre-determined performance criteria
- often incorporates statistical values as means to measure
Performance management strategies: Appraisals
NevertheLess
crucial for results of appraisals to be discussed between management and E asap. manager should:
- explain the good and bad aspects
- encourage E to continue their good work
- tell E what needs to be done to improve
Performance management strategies: Appraisals
advantages
- result can improve performance
- can promote high-achieving E
-direct communication can improve the relationships - can provide info on dismissing poor performing E
Performance management strategies: Appraisals
disadvantages
- E may lose motivation if they receive poor evaluation
- can be time consuming on an individual bias
- those who perform well may desire a financial reward
Performance management strategies: self - evaluation
involves E carrying out a process of self - assessment, based on set criteria
sutible for those who accurately asses:
- their contribution to the business
- their strenghts and weaknesses
- how to improve
- take into account career aspirations
Performance management strategies: self-evaluations
advantages
- manager can gain insight into E understanding
- E can identify their weakness
- can save manager time
Performance management strategies: self-evaluations
disadvantages
- E may be dishonest and/or biased
- developing criteria can be time consuming
- relevant training courses can be expensive
Performance management strategies: 360 degree feedback = employee observations
involves a range of people evaluation an employee’s work performance in order to give management a broader and objective perspective on E’s past n current performance
- more useful in evaluating leadership, teamwork, interpersonal skills
- less useful for skills requiring specific knowledge
Performance management strategies: 360 degree feedback = employee observations
advantages
- manager can gain multiple perspectives
- many E are involved = increase interconnectedness
- E can be responsive to peer feedback
Performance management strategies: 360 degree feedback = employee observations
Disadvantages
- E may work harder Infront of E assessing them and skew results
- increase pressure and stress
- time consuming to create criteria and the process
Termination management:
retirement
where E voluntarily leaves both their current employment and the workplace
- Notice: E needs to inform employer in writing
- End date: negotiated
Termination management:
retirement
entitlement issues
entitled to:
- be paid out any accurated benefits, such as annual leave, accumulated long service leave and money for work completed
BUT NOT sick or careers leave
- employer is entitled to be given notice of retiree’s retirement
Termination management:
retirement
transition issues
Business can
- offer employee counselling, support on superannuation/government pension entitlements and advice on income planning and future lifestyle choices
- allow E to gradually reduce their hours in lead up to retirement allows for smooth transition
Termination management:
redundancy
employee’s employment being ended voluntarily or involuntarily due to their job no longer existing.
Termination management:
redundancy - voluntary
involves management :
- announcing to their employees that their business are making positions redundant and providing them the opportunity to nominate themselves out
FINANCIAL incentives are present to accept redundancy
Termination management:
redundancy - involuntary
- employee is being asked to leave the business against their will bc their job no longer exists
- the decision made to make employee redundant is based purely on the ongoing needs of the business, not employee’s fault!
Termination management:
redundancy
entitlement issues
1) entitled to be paid out any accrued benefits (annual leave, accumulated long-service leave and money made for work completed)
- generally not entitled to sick or careers leave
2) entitled to receive a redundancy package, a financial payment which is based on how long the employee has been working at the business
3) entitled to be paid of work to attend job interviews
4) to receive sufficient notice of their redundancy to provide time to prepare for their loss of current employment
5) Employer MUST provide a valid reason to the redundancy
Termination management:
redundancy
transition issues
business can help by:
- offering counselling (career or psychological), job references for potential employers, assistance writing resumes and extra training to enhance their employability
- also pay for an outplacement service to help redundant employees transition to a new job by providing (the above)
Termination management:
resignation
employee voluntarily ends their current employment, but continues in the workplace because :
- want a new job
- want to start own business
- being bored of current job
- wanting change in lifestyle
Termination management:
resignation
notice…
- employee needs to give employer a sufficient notice of their intention to resign
- the precise length may vary with the job they do
- notice period is typically set out in the employees award, employment contract of agreeement ACA
- FAILUARE to privide required notice may lead to a penalty
Termination management:
resignation
exit interview
where employer investigates the reason for the resignation bc the reason can identify problems that need to be fixed
- areas of improvement can be identified
Termination management:
resignation
entitlement issues
- be paid out any accrued benefits (annual leave, accumulated long service leave and money for work completed)
- notice of employees resignation be given
Termination management:
resignation
transition issues
not worth mentioning bc it employee choice not business
Termination management:
dismissal
where employee’s employment is being ended involuntarily due to issues such as serious misconduct or ongoing poor job performance
Termination management:
dismissal on notice
where employee fails to perform their job satisfactorily
NOTICE?
- depends on a number of reasons such as whether employment is governed by award or a contract, their age and how long they’ve worked for employer
WARNING?
- by law no written or verbal warnings are prescribes
- But warnings help reduce the likelihood of an unfair dismissal claim being made
Termination management:
summary dismissal
- MOST sever form
- involves employment being ended due to serious misconduct
- no notice required
Termination management:
unfair dismissal
- type of civil claim (kinda a lawsuit) that can be lodged with the FWC
- if employer has dismissed them in a harsh, unjust or unreasonable manner
- makes dismissing staff risky bc if done incorrectly, business can be successfully sued
Termination management:
dismissal
entitlement issues
- be paid out any accrued benefits (annual leave, accumulated long service leave and money for work completed)
- if dismissed on notice, E entitled to receive sufficient notice time
- must be provided a valid reason
Aim of workplace relations
to try align the needs of the overall business with the needs of employees so that employees are able to maintain or improve their standards of living while the business is able to achieve its BO
Human Resource Manager - aspects of their role
- negotiate with Employees and their representatives
- train other managers and supervisors to facilitate the implementation of agreements within their area of responsibility
- ensure that all key terms are implemented
- help resolve any disputes that may arise during the life of the agreement
+ hire, recruit, train and terminate Employees
Employees - aspects of their role
- engage in the process of developing new or changed employee agreements
- follow and understand workplace safety procedures (aware of OH&S)
- complete all tasks with due care and skills
- obey the terms in their employment contract
- to not misuse the business’s confidential information
- to report illegal or unethical behaviour
Employer assosiation - aspects of their role
- represent employers during negotiations with employees
- share information with each other
- provide support and advice to each other
Unions - aspects of their role
- represent their union members in the development of new / changed employment agreements
- act as an advocate for the employees when working with management to help resolve workplace issues that arise
- investigate suspected breaches of workplace laws and other laws
- to help employees uphold their employment contracts
Fair Work Commission - aspects of their role
- set minimum working standards
- make and vary awards
- to approve and monitor enterprise agreements (EAs)
- help parties resolve workplace disputes when no agreement can be made through mediation, conciliation or arbitration
- approve/disprove industrial action
DO NOT: - act for one party against another
- investigate claims about underpayment of wages and entitlements
Awards!
a legally binding document determined by the FWC that sets out minimum wages and conditions of work for specific industry
the relationship between awards and enterprise agreement
- if business is affected by both, then the enterprise agreement cannot make employees worse off than the relevant agreement
- if business is affected by award, but no enterprise agreement, then business follows the wages and conditions set out in award
modern award?
came into affect in jan 2010 to:
- combine overlapping awards, and remove any inconsistences
10 national employment standards (only a few)
- parental leave and related entitlements:
- can be taken after: giving birth, a spouse gives birth or adopts child under 16 yrs
- entitlements relating to annual leave (aka ‘holiday pay’)
- allows employee to be paid while having tile off work
- entitlements relating to long - service leave
- similar to annual leave but occurs after employee worked for same employer for a long period of time
- entitlements relation got public holidays
- entitlements relating to notice of termination and redundancy pay
Awards! advantages
(1) If a business uses an award to set wages and conditions of work, the business will spend less time and money doing so than if wages and conditions are set via an EA or an individual contract.
(2) If a business uses an award to set wages and conditions of work, rather than an EA, the business’ employees will have limited input into the wages and conditions, due to the absence of collective bargaining.
(3) Awards provide a safety net for employees by guaranteeing minimum wages and conditions of work.
(4) The existence of awards can help promote transparency and equality across different employers in the same industry.
Awards! disadvantages
(1) Awards provide less flexibility in relation to wages and conditions of work than an EA.
(2) If a business uses an award to set wages and conditions of work, the business’ employees will have a lower wage than would be the case if an EA or individual contract was used.
(3) Modern awards can be complex for employers and employees to understand.
(4) If a business’ workplace consists of multiple industries, a business may need to implement multiple awards in the same workplace, which can be time-consuming and expensive.
enterprise agreements (EA)
a collective agreement on wages and conditions of work that is made at the workplace level via negotiations between the employer and a union or group representing the majority of the business’ employees
what must enterprise agreements (EA) include?
- the 10 national employment standards
- an expiry date
- procedures for settling any disputes that arise in the implementation of the EA
- terms that allow for individual flexibility, so that unique arrangements can be made between the employer and individual employees
- provisions for consulting with the business’s employees in relation to major workplace changes
enterprise agreements (EA)
what does Good faith bargain include
(1) Attend and participate in meetings at reasonable times.
(2) Disclose relevant information – other than confidential or commercially sensitive information – to the otherparty to the negotiations in a timely manner.
(3) Provide responses to proposals made by the other party to the negotiations in a timely manner.
(4) Genuinely consider proposals made by the other party to the negotiations.
(5) If a proposal isn’t accepted, provide reasons for doing so.
(6) Don’t engage in unfair conduct that undermines collective bargaining.
enterprise agreements (EA)
what happens of an employer refuses to bargain?
- The FWC will determine, via ballot or petition, whether there is majority employee support for pursuing an EA.
- If there is majority support, the FWC can force the employer to bargain collectively with the relevant employees.
enterprise agreements (EA)
What happens after both parties to the negotiations have agreed to the terms of the EA?
- Once both parties have concluded their negotiations, they must submit the EA to the FWC for approval.
- Once the FWC approves the EA, the EA commences operation.
enterprise agreements (EA)
How does the FWC determine whether to approve an EA?
The FWC will carefully examine the EA to ensure the following:
(1) The employer and the employees genuinely agreed to the terms of the EA.
(2) A majority of employees have been consulted, either by the relevant union or any other group or individual representing the employees in the negotiations.
(3) The employees will be better off overall by entering into the EA than simply being covered by the relevant award.
(4) The agreement is consistent with the National Employment Standards.
(5) The agreement doesn’t include any unlawful terms, such as terms that potentially contradict equal employment opportunity legislation.
(6) The agreement specifies a date as its nominal expiry date.
(7) The agreement provides a dispute settlement procedure.
(8) The agreement includes a flexibility term and a consultation term.
enterprise agreements (EA)
what is a flexibility and consultation term?
- A flexibility term allows an employer and their employee to make an individual flexibility agreement (IFA).
An IFA varies the effect of terms of the EA in order to meet the genuine needs of the employer and the individual employee.
Note: Various requirements apply to an IFA to help prevent an abuse of power, however, you don’t need to know them. - A consultation term requires the employer to consult with the employees about:
(1) A major workplace change that’s likely to have a significant effect on the employees.
(2) A change to their regular roster or ordinary hours of work.
individual contracts
An individual employment contract is a legally binding agreement between an employer and an employee that sets out the employee’s wages and conditions of work.
AND must comply with the 10 national employement standards
What happens if there is no EA or award?
THEN an individual contract will cover the terms of the employee’s employment.
enterprise agreements! advantages
(1) The wages and conditions of work in an EA can be tailored to the needs of a specific workplace.
(2) To be approved by the FWC, the wages and conditions of work in an EA must at least be better than those set out in the relevant award.
(3) The existence of EAs can increase competition for better wages and/or conditions of work in a particular industry.
enterprise agreements! disadvantages
(1) Wages and/or conditions of work that are better than those set out in the relevant award may be expensive for the business.
(2) An EA can be very time-consuming to create, due to the collective bargaining process and the need for the FWC to approve the EA before it’s enforceable.
(3) Engaging in collective bargaining can be stressful, time-consuming and expensive.
(4) The existence of EAs can reduce wage equality in a particular industry, due to businesses with an EA getting better wages and/or conditions of work than businesses using the award.
What is a workplace dispute?
A workplace dispute is a conflict between workplace participants as a result of a disagreement and tend to relate to:
(1) Wages.
(2) Conditions of work.
(3) Occupational health and safety concerns.
(4) Workplace policies.
(5) Personality conflicts.
(6) Bullying, discrimination or sexual harassment.
What is a dispute resolution process?
A dispute resolution process is a formal, systematic procedure that is used to hear and resolve workplace disputes.
MUST be set out in an enterprise agreement and modern awards for business to use
What are the benefits of effective dispute resolution?
- employers and employees maintain positive relationships with each other by resolving disputes at an early stage.
- reducing the amount of stress, time and money spent on the dispute, due to the dispute’s early resolutions
Example of a typical dispute resolution process
- Listen to a staff complaint.
- (2) Attempt to resolve the workplace dispute via a negotiation.
- (3) Follow the grievance procedure.
- (4) Attempt to resolve the workplace dispute via a mediation and/or a conciliation.
- (5) Resolve the workplace dispute via an arbitration.
Grievance procedures
- A grievance is a complaint that is submitted officially to a supervisor or manager.
- A grievance procedure is a formalised set of steps used by employers and employees within a workplace to attempt to resolve a workplace dispute.
- In a grievance procedure, the dispute will proceed to the next step if it isn’t successfully resolved via the previous step, with each step increasing in formality and seriousness.
What are the benefits of a grievance procedure?
(1) Grievance procedures can help result in workplace disputes being resolved at an early stage.
(2) Grievance procedures help result in workplace disputes being resolved within the business.
(3) Grievance procedures promote transparency because all of a business’ staff should be made aware of the steps involved the business’ grievance procedure.
(4) Grievance procedures promote equality because the same procedure should apply to all of a business’ staff.
Methods of dispute resolution
Negotiation
- involves direct discussions between the parties to a workplace dispute in an attempt to resolve it without the use of external third parties.
LEAST formal method
Methods of dispute resolution
Mediation
- involves an impartial third party (a mediator) helping the parties confidentially resolve a workplace dispute by helping them communicate with each other, but (usually) not offering suggestions or solutions.
- they CANNOT force the parties to resolve their dispute
- can be someone agreed by both parties or a representative from a business, tribunal or gov agency
Methods of dispute resolution
Conciliation
involves an impartial third party (a conciliator) helping the parties confidentially resolve a workplace dispute by helping them communicate with each other, and by suggesting ways in which their dispute may be resolved.
- cannot force for a resolution
Methods of dispute resolution
Arbitration
involves an impartial third party (an arbitrator) helping the parties resolve a workplace dispute by presiding over a private hearing of the dispute (an arbitration), and making a binding decision as to how the dispute is to be resolved.
- can force a resolution
- confidentual
- use evidence and submissions presented by both parties
Methods of dispute resolution
Initiating a civil claim
- In certain circumstances, one of the disputing parties can initiate a civil claim against the other party (ie, sue them).
- but tend to be far more expensive and time-consuming than other methods of resolving disputes
Mediations versus arbitrations: similarities
(1) Both methods involve an impartial third party helping the parties to resolve their workplace dispute.
(2) Both methods tend to result in a dispute being resolved more quickly and cheaply than getting the dispute
resolved in court.
(3) Both methods are more formal than resolving a dispute within a workplace without an external third party.
(4) Both methods are less formal than resolving a dispute in court.
(5) When used to resolve workplace disputes, both methods tend to be private and confidential.
(6) Both methods can be used by the FWC to help resolve certain types of workplace disputes.
Mediations versus arbitrations: Differences
(1) In an arbitration, the arbitrator will make a final binding decision as to how the parties’ dispute is to be resolved whereas, in a mediation, the mediator will merely help the parties communicate with each other.
(2) Unlike in an arbitration, in a mediation, the disputing parties have control over how their dispute will be resolved. As a result, a mediation is more likely to result in a dispute being resolved in a mutually beneficial manner (ie, a ‘win-win’ outcome) than an arbitration.
(3) An arbitration is more serious and formal than a mediation.
(4) The parties are more likely to be legally represented in an arbitration than a mediation, due to its greater seriousness, formality and complexity.
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