UNIT 3 AOS2 - SAC 2

Question 1

Define and explain Human resource management.

Answer 1

Human resource management is the area of a business that is responsible for managing the relationship between the employees and the business

The size of the business may determine who is responsible for managing the human resources
- Larger businesses may have an entire team
- Small businesses may just have the owner
(responsibility of a specialised human resource manager)

The aim is to have the best employees, in the right roles, performing at a high level.

• Positive relationship between the employees and the business
• Getting the most out of employees = productive

Question 2

List the key parts of the employment cycle.

Answer 2

Establishment -> Maintaining -> Termination

Question 3

Explain the relationship between HRM and business objectives.

Answer 3

Effective human resource management will ensure employees are performing to a high level. This can be achieved by:
- Ensuring the best employees are in the right roles
- Training employees to improve skills and abilities
- Monitoring performance and providing feedback
- Motivating employees

• Employees are an asset and can help develop a competitive advantage
• Having employees performing to a high level and aligning the work they do to the objective, will ensure the objective is achieved.

Question 4

Explain how human resource strategies can support business objectives.

Answer 4

Question 5

Define and explain motivation in relation to motivational theories. List what motivation can lead to in employees.

Answer 5

Motivation is the drive a person has to exert effort towards the achievement of something.

Having employees who are motivated can improve the ability of the business to achieve objectives.

Motivated employees can lead to:
- Improved productivity
- More engagement
- Greater commitment
- New ideas and innovations
- Higher customer satisfaction
- Positive corporate culture

Question 6

Explain the steps in Abraham Maslow’s Hierarchy of needs.

Answer 6

1. Physiological Needs: Basic biological needs such as food, water and shelter. Basic pay and working conditions
2. Safety Needs: Security, stability and protection from harm. Job security and a safe workplace.
3. Social Needs: Strong relationships, affection and a sense of community. Teamwork, social events, supportive management
4. Esteem Needs: Self-esteem, respect and recognition. Recognition & rewards, promotions, responsibility
5. Self-actualisation Needs: Personal growth, reaching potential. Opportunities to take on new challenges, employee development.

Question 7

Explain the process of Abraham Maslow’s Hierarchy of needs.

Answer 7

• The needs are structured in a hierarchy and must be met in sequence.
• The lower need will be a motivating factor until it is satisfied.
• Once satisfied, the individual is motivated by the next level in the hierarchy.
• The higher up the hierarchy, the longer the motivation is as it is coming from within the individual (intrinsic motivation).

Question 8

Explain motivating employees using Abraham Maslow’s Hierarchy of needs.

Answer 8

• It is important for businesses to look to satisfy all needs in the hierarchy.
• For example, offering employees high pay, does not satisfy all of the needs.
• Managers can look to identify where employees are on the hierarchy and implement strategies to satisfy the need and move the employee up the hierarchy.

Question 9

List the advantages and disadvantages of Abraham Maslow’s Hierarchy of needs.

Answer 9

ADVANTAGES:
- Provides managers with a scaffold on how to motivate employees.
- Following the theory should allow the business to increase motivation for all employees.
- Demonstrates how motivation can be increased over the long term.

DISADVANTAGES:
- It can be difficult to identify where employees are on the hierarchy.
- It can be difficult to monitor the progression through the hierarchy.
- Doesn’t consider individual differences

Question 10

Explain Locke & Latham’s Goal Setting Theory.

Answer 10

• According to Locke and Latham, employees are motivated to achieve goals.
• Businesses can focus on setting goals for employees with the aim of improving motivation and drive

They found there were 5 key factors that influenced motivation when setting goals:
1. Clarity
2. Challenge
3. Commitment
4. Feedback
5. Task complexity

Note (not that important teacher just mentioned it in class): this theory is more specified towards business

Question 11

Explain Clarity in Locke & Latham’s Goal Setting Theory.

Answer 11

Clarity: goals need to be clear and specific.

This ensures the employee understands exactly what needs to be accomplished and how they will be assessed.

Question 12

Explain Challenge in Locke & Latham’s Goal Setting Theory.

Answer 12

Challenge: Challenging goals create more motivation than easy goals.

The more challenging a goal is, the more motivation it creates in the employee.

The employee is likely to work harder and put in more effort to achieve something that will extend them.

Question 13

Explain Commitment in Locke & Latham’s Goal Setting Theory.

Answer 13

Commitment: Employees must be committed to the achievement of their goals to generate the drive towards its achievement

The more committed the employee is, the more motivated they will be to work hard towards the goal.

Commitment can be gained by:
- The manager setting the goals and convincing the employee why it is important.
- Manager setting the goal collaboratively with the employee or group

Question 14

Explain Feedback in Locke & Latham’s Goal Setting Theory.

Answer 14

Feedback: regular feedback is important as it helps the employee monitor their progress towards the goal.

• The feedback can allow the employee to make adjustments if required.
• Feedback helps maintain momentum towards the goal.
• Feedback can come in many forms. For example, from a supervisor or from direct results.

Question 15

Explain Task Complexity in Locke & Latham’s Goal Setting Theory.

Answer 15

Task complexity: while challenging goals are important, the tasks should not be so complex that the employee does not have the ability to complete.

• If tasks are too complex it can harm motivation
• Individuals become overwhelmed when tasks are too complex
• Manager needs to consider the skills and ability of the employee when setting goals.
• Training and support may be provided

Question 16

List the advantages and disadvantages of Locke & Latham’s Goal Setting Theory.

Answer 16

ADVANTAGES:
- Setting clear and challenging goals that are not overwhelming improve motivation and works towards business objectives.
- Continues to improve the ability of the employees as they are challenged constantly.
- Improved relationship between managers and employees.

DISADVANTAGES:
- Time consuming for the manager to set goals and provide constant feedback.
- Difficult to find the balance between challenging goals and overwhelming goals.
- May harm confidence if goal is not achieved.

Question 17

Explain the four drive theory.

Answer 17

Lawrence and Nohria found that humans are motivated by four basic drives.

These drives come from our evolutionary past and influence the way we behave.

Businesses need to implement strategies to provide employees the opportunity to satisfy each of the drives.

The four drives are:
- Acquire
- Bond
- Learn
- Defend

Question 18

Explain the drive to acquire in the four drive theory.

Answer 18

Drive to acquire: is where individuals desire material possessions, status and power.

People are motivated by the prospect of gaining more resources, whether it be money, promotions, or power.

To satisfy this drive, businesses can:
- Offer financial incentives such as competitive pay, monetary incentives, bonuses.
- Provide opportunities for career progression through promotions.
- Recognising good work through recognition/reward programs

Question 19

Explain the drive to bond in the four drive theory.

Answer 19

Drive to bond: is where individuals desire social interaction and connection with others.

Individuals want to feel as though they belong to the business or to a team they work in.

To satisfy this drive, businesses can:
- Create a positive and supportive work environment.
- Structure the employees into teams to build team work.
- Increase opportunities for social interactions. E.g. social gatherings, or eating lunch together.

Question 20

Explain the drive to learn in the four drive theory.

Answer 20

Drive to learn: is where individuals desire personal and professional growth and development.

Employees are driven to seek out new challenges and learn new skills.

To satisfy this drive, businesses can:
- Provide opportunities for training and development.
- Offer interesting and challenging work.
- Provide constructive feedback (possibly through performance management) to provide a learning experience.

Question 21

Explain the drive to defend in the four drive theory.

Answer 21

Drive to defend: is where individuals desire to protect themselves and others from harm.

• This drive is more latent.
• Employees are driven by a sense of security.

To satisfy this drive, businesses can:
- Provide a safe work place.
- Address any job security issues (e.g. ongoing contracts).
- Ensure reward programs are fair.
- Allow employees to respond if work performance is challenged.

Question 22

Explain the four drive theory process.

Answer 22

• All drives can occur at the same time (?)
• One drive can be more dominant. This can change over time.
• Can be detrimental is one drive is significantly more dominant.
• The drive to defend is more latent.
• Businesses need to provide opportunities for employees to satisfy each of the drives.

Question 23

List the advantages and disadvantages of the four drive theory.

Answer 23

ADVANTAGES:
- The drives are universal for all individuals, therefore the business can focus on strategies that will satisfy drives for all employees.
- Based on both short term and long term motivation for employees, therefore the business can continue to implement the strategies.
- Business performance can improve with the improved motivation.

DISADVANTAGES:
- Difficult to identify and monitor the more dominant drive in individuals
- Difficult to satisfy the drives for all emplovees. E.g. Drive to acquire can be expensive or challenging to promote all employees.

Question 24

List the motivational theories.

Answer 24

• Abraham Maslow’s Hierarchy of needs
• Locke & Latham’s Goal Setting Theory
• The Four Drive Theory (by Lawrence and Nohria)

Question 25

Define and explain motivation in relation to motivational strategies. List the motivation strategies.

Answer 25

Motivation: is the drive a person has to work hard towards the achievement of something.

• Businesses benefit from having employees that are highly motivated.
• Strategies are specific actions that businesses take to achieve an outcome.

Motivation strategies include:
- Performance related pay
- Career advancement
- Investment in training
- Support strategies
- Sanction strategies

Question 26

Explain the motivational strategy performance related pay.

Answer 26

Performance related pay: is where an employee’s salary or bonus is linked to their performance.

• The employee is set targets and is paid according to the level of their achievement.
• Employees are motivated to work towards the set targets as they strive to increase their level of pay.

Common methods of performance related pay include:
- Pay increases: pay is tied directly to performance
- Bonuses: often a one-off payment for reaching a target
- Commissions: receiving a percentage of each sale
- Share plans: receiving part ownership in the company

Question 27

Explain the motivational strategy career advancement.

Answer 27

Career advancement: is where an employee has the opportunity to take on greater responsibility in the business through the use of promotions.

• Employees can be motivated to perform well to give them a greater chance of promotion.
• Investing in career advancement opportunities can help retain quality employees.
• Employees that are promoted may be motivated to lead others towards the business objectives.

Question 28

Explain the motivational strategy training.

Answer 28

Training: is the process of improving the skills of the employee so they can perform the job to a higher level.

• Training helps provide the employee with the tools and skills they need to succeed in their role.
• Employees may feel valued that the business is investing in them, improving motivation to give effort.
• Ongoing training can continuously improve the ability of the employee and lead to greater motivation.

Question 29

Explain the motivational strategy support.

Answer 29

Support: is where the employees are provided with the resources they need to perform their role.

Support can come in many different forms including:
- Managerial support (supportive management style)
- Mentoring
- Access to more resources
- Financial support
- Counselling (potentially through an employee assistance program (EAP)

• Support shows the employee they are valued and have a place they belong, improving motivation.

Question 30

Explain the motivational strategy sanction.

Answer 30

Sanction: is where employees receive penalties or consequences for poor performance or behaviour.

• Sanctions set clear expectations for others.
• Sanctions can motivate employees to follow the business policies through fear of being sanctioned.

Sanctions may include:
- Loss of benefits
- Demotion
- Disciplinary action (e.g. written warnings)

Question 31

Explain training.

Answer 31

Training: is the process of improving an employee’s skills and knowledge so they are able to perform their job more effectively and efficiently

Employees may require training if the business is looking to change or improve: For example
- Implementing new processes
- Implementing new technologies
- Changes to policy
- New safety requirements
- Employee is undertaking a new role

• Ongoing training helps develop a learning culture where the employees continuously improve

Question 32

List the employee benefits of training.

Answer 32

Employee
- Improved skills and knowledge
- Increased job satisfaction and motivation
- Feel valued by the business
- Improved ability to take on greater responsibility
- Increased self-esteem

Question 33

List the business benefits of training.

Answer 33

Business
- Greater ability to achieve objectives
- Improved quality
- Improved efficiency
- Improved ability to retain quality employees
- Continuous improvement

Question 34

Explain on-the-job training.

Answer 34

On-the-job training: is the process of improving an employee’s job related skills, at their place of work.

• The employee is often involved in performing tasks or observing others in the workplace.
• The trainer/mentor is often an experienced employee.
• The mentor provides guidance and feedback to help develop the skills of the employee.

Question 35

List the advantages and disadvantages of on-the-job training.

Answer 35

ADVANTAGES:
- Employee gains experience on the equipment they will be working on.
- Employee experiences real work situations.
- Often the most cost effective form of training.
- Greater ability to customise the training to the needs of the business.

DISADVANTAGES:
- Greater chance that poor habits may be passed on to the employee.
- Although an employee is trained doesn’t mean they have the ability to train others.
- Potential for workplace distractions.
- The quality of the work while training is occurring may be poor.

Question 36

Explain off-the-job training.

Answer 36

Off-the-job training: is the process of improving an employee’s skills in a location away from the workplace.

This may include:
- Classroom instruction
- Online learning
- Conferences
- Workshops

• The employees learn from experts with experience in the area being trained.

Question 37

List the advantages and disadvantages of off-the-job training.

Answer 37

ADVANTAGES:
- Employee learns from experts in their field, providing broader perspective.
- No workplace interruptions.
- Often more structured approach, improving effectiveness of the training.
- Potential access to resources and tools not available in the workplace.

DISADVANTAGES:
- Often more expensive than on-the-job training.
- Not learning on the equipment that will be used in the normal role.
- Limited customisation.
- No work completed by the employee being trained.

Question 38

Define performance management.

Answer 38

Performance management is the process used to evaluate and improve both individual and business performance.
- Employees that perform well, help the business achieve it’s objectives.
- Employees may have areas they need to improve.

Performance management strategies help:
- Assess the performance on the employee
- Provide feedback to the employee
- Address areas of strength
- Address areas for growth
- Align employee objectives with business objectives

Question 39

Explain management by objectives.

Answer 39

Management by objectives: is where the managers and employees agree on a set of goals for the employee.

• The objectives are then used to evaluate the employee’s performance at regular intervals and provide feedback.
• MBO encourages employees to take ownership of their work.
• Helps employees understand how their work contributes to the success of the business.

Question 40

Outline the Management by Objectives (MBO) cycle.

Answer 40

> Set business objectives -> Set and align employee objectives -> Monitor behaviour -> Provide feedback -> Employee reward and recognition -

Question 41

List the advantages and disadvantages of management by objectives.

Answer 41

ADVANTAGES:
- Able to gain commitment from employees
- Employees and managers are clear on performance expectations
- May identify where employee needs training or support
- Objectives are aligned, so the work of employee contributes to the business objectives

DISADVANTAGES:
- Can be time consuming to set the goals and provide regular feedback
- May be challenging to set measurable goals for some roles
- Failing to meet an objective can harm esteem

Question 42

Explain performance appraisal.

Answer 42

Performance appraisal is a formal evaluation of how well an employee is performing in their role.

• Performance appraisals often occur on a regular basis. E.g. every 6 months or every 12 months
• Evaluation will normally be conducted by the employee’s manager/supervisor.

The performance appraisal typically involves:
- Reviewing employee goals and accomplishments
- Providing feedback on areas for improvement
- Developing a plan to achieve improvement (e.g. identifying training needs)
- Setting new goals

Question 43

List the advantages and disadvantages of performance appraisal.

Answer 43

ADVANTAGES:
- Provides feedback to employee
- Identifies areas for growth, leading to improved future performance
- May identify employees in line for a promotion

DISADVANTAGES:
- Can be time consuming, particularly if the whole business goes through the process at the same time
- The evaluation can be subjective
- Can be a time of stress for managers and employees

Question 44

Explain self-evaluation.

Answer 44

Self evaluation is where employees assess their own performance against pre determined goals.

• Process encourages employees to take ownership of their work and reflect on their own strengths and weaknesses.
• Employees may sit down with their supervisor to discuss their evaluation.

Question 45

List the advantages and disadvantages of self-evaluation.

Answer 45

ADVANTAGES:
- Encourages employees to take ownership of their performance
- Helps employee identify areas for growth as well as how to develop these areas
- Provides a basis for more meaningful feedback from managers

DISADVANTAGES:
- Evaluation may not be entirely objective
- Some employees may not have the ability to undertake an objective assessment
- Often requires ongoing documentation so the employee can recall their achievements and challenges

Question 46

Explain employee observation.

Answer 46

Employee observation is where managers, supervisors or other stakeholders view the employee while they are performing their work.

Observations can be formal or can be more informal: E.g. Formally observing an employee serve customers (such as a secret shopper); or Informally asking managers and other employees to provide feedback on their general observations of the employee.

• Feedback is then provided to the employee on these observations.
• One form of employee observation is 360 degree feedback.
• This helps provide more objective feedback and develops a clear picture of strengths and areas for growth.

This aims to get the views of different stakeholders that have had interactions with the employee. For example:
- Manager
- Other employees
- Customers

Question 47

List the advantages and disadvantages of employee observation.

Answer 47

ADVANTAGES:
- View the employee in action, more objective information
- If using 360 degree feedback, the managers get a broad range of feedback
- Identifies strengths and weaknesses as well as a path to improvement

DISADVANTAGES:
- May be deemed intrusive and creates anxiety for employees
- May not be an accurate representation of employee performance if observation is a one-off
- Requires time and resources to gather feedback from a range of stakeholders if using 360 degree feedback

Question 48

Explain termination.

Answer 48

Termination is the phase where the employee leaves the business, ending the employment relationship.

• Employees enter termination either voluntarily or involuntarily.
• It is important that the employee is treated fairly and lawfully during termination.
• The human resource manager is often the person responsible for managing termination.

Question 49

Explain retirement.

Answer 49

Retirement is where an employee decides to leave the business as well as the workforce.

• Retirement can be a difficult decision for many employees and the business can be supportive during this time.

Question 50

Define entitlements.

Answer 50

Entitlements are what the business is obligated to provide the employee (legally).

Question 51

Define transition.

Answer 51

Transition considerations are the elements that the business may provide the employees to assist their transition (by choice).

Question 52

List the entitlements and transition of retirement.

Answer 52

Entitlements: Employees are entitled to:
- Any accrued benefits (e.g. annual leave & long service leave).
- Pay for any work completed
- Compulsory superannuation payments during their work

Transition: To assist in the transition, businesses can:
- Enable the employee to gradually transition into retirement
- Provide access to counselling / financial advice
- Offering a farewell

Question 53

Explain redundancy.

Answer 53

Redundancy is where an employee leaves the business because their job no longer exists.

Redundancy may occur for a number of reasons.
- Reducing costs
- New technologies
- Restructuring the business
- Merging businesses

Redundancy can be voluntary or involuntary: - Voluntary redundancy: is where the employee nominates themselves to take up redundancy
- Involuntary redundancy: is where the employee is forced to leave because their job no longer exists.

Question 54

List the entitlements and transition of redundancy.

Answer 54

Entitlements: Employees are entitled to:
- Any accrued benefits (e.g. annual leave & long service leave).
- Pay for any work completed
- Notice period
- Redundancy package: This is a payment that the employee receives for being made redundant

Transition: To assist in the transition, businesses can:
- Offer counselling (e.g. career counselling)
- Engage outplacement services
- Providing extra time to attend job interviews
- Training

Question 55

Explain resignation.

Answer 55

Resignation is where an employee voluntarily leaves the business.

Employees may resign for a number of reasons. Businesses should find out these reasons to identify if they need to improve.

Question 56

List the entitlements and transition of resignation.

Answer 56

Entitlements: Employees are entitled to:
- Any accrued benefits (e.g. annual leave & long service leave).
- Pay for any work completed
- Business is entitled to notice

Transition: To assist in the transition, businesses can:
- Conducting an exit interview
- Offering a farewell
- Providing a positive reference for the employee

Question 57

Explain dismissal.

Answer 57

Dismissal is where an employee is terminated due to unacceptable behaviour or performance

• Summary Dismissal: when an employee commits a serious breach of their employment contract and can be dismissed immediately.
• On-notice Dismissal: when an employee is not performing to standard. They are warned and provided an opportunity to improve.

Question 58

List the entitlements and transition of dismissal.

Answer 58

Entitlements: Employees are entitled to:
- Any accrued benefits (e.g. annual leave & long service leave).
- Pay for any work completed

Transition: To assist in the transition, businesses can:
- Provide support for other employees
- Potential for career transition services

Question 59

Explain unfair dismissal.

Answer 59

Unfair Dismissal is when an employee is dismissed from their job in a harsh, unjust or unreasonable manner.

• Employees can apply to the Fair Work Commission to have their case heard by a tribunal.
• It is important that HR manager know the law and are trained in how to handle dismissals.

Question 60

List the workplace participants.

Answer 60

• Employees
• HRM
• Unions
• Employer Association
• Fair Work Commission

Question 61

Explain workplace relations.

Answer 61

Workplace relations:the interaction between the employer and the employees in regards to areas such as wages, employment conditions and workplace disputes.

Aim of workplace relations is to have:
- Employees that are satisfied with their wages and conditions
- A business that is productive and competitive
- Disputes are minimised or resolved quickly

• Having poor workplace relations can create an environment where employees are dissatisfied and constantly fighting with their employer and even other employees.

Question 62

Explain the employees.

Answer 62

Employees are those that work in the business in exchange for remuneration.

Their role is to:
- Carry out the tasks in their job description
- Work towards the achievement of business objectives
- Follow business policies

With regards to workplace relations issues:
- Employees may be involved in the process of negotiating a new wage agreement
- Vote on a new wage agreement
- Employees may be involved in taking industrial action (e.g. strike)

Question 63

Explain the human resource manager.

Answer 63

Human resource manager is responsible for managing the relationship between the employees and the business.

The HRM is involved in:
- Recruitment
- Training
- Employee motivation

With regards to workplace relations issues, the HRM:
- Represents the employer
- They manage disputes and workplace conflict
- May be involved in the negotiation of agreements
- Ensuring any new agreement is implemented
- Keeps the business updated with any workplace relations changes

Question 64

Explain a union.

Answer 64

Union is an organisation that represents the collective interest of employees in the workplace.

Their role is to:
- Offer advice or representing employees during negotiation of new wage agreement
- Resolving workplace issues by being a voice for employees
- Offer support or representing employees during workplace disputes
- Organise industrial action (e.g. strike)
- Ensuing employers are meeting their obligations

Question 65

Explain employer associations.

Answer 65

Employer associations are organisations that represent the interest of employers in workplace relations issues.

Their role is to:
- Offer advice or represent employers during the negotiation of a new wage agreement
- Provide support and advocacy for employers in workplace issues
- Offer support or representing employers during workplace disputes
- Advise employers of changes to workplace relations legislation

Question 66

Explain the Fair Work Commission.

Answer 66

Fair Work Commission is Australia’s independent workplace relations tribunal that is responsible for regulating the workplace relations system.

Their role is to:
- Provide a safety net of minimum wages and conditions for all employees
- Hear unfair dismissal claims
- Regulate and monitor industrial action
- Hear and investigate bullying and harassments claims
- Approve workplace agreements
- Assist in resolving workplace disputes

Question 67

Explain wages and conditions.

Answer 67

When an employee begins work at a business they receive pay and other entitlements.

• Pay, entitlements and other working conditions can help a business attract and retain quality employees.

Australia has multiple ways of determining what the pay, entitlements and other conditions of work are for the employees:
- Minimum Wage & National Employment Standards
- Awards
- Enterprise Agreements
- Individual Employment Contracts

Question 68

Explain the minimum wage and NES.

Answer 68

• Australia has a minimum safety net for all employees.
• Employees cannot legally receive wages or conditions below the minimums.
• These are set out in the minimum wage and the National Employment Standards.
• These minimums are set by the Fair Work Commission and are reviewed annually.

Question 69

List the 11 National Employment Standards.

Answer 69

1. Maximum weekly hours
2. Flexible work arrangements
3. Changing from casual to permanent
4. Parental leave
5. Annual leave
6. Other leave (e.g. personal, family & domestic violence leave)
7. Community service leave
8. Long service leave
9. Public holidays
10. Notice of termination
11. Information statements

Question 70

Explain awards.

Answer 70

• Awards set the minimum wages and conditions of employment for those in a specific industry.
• Employees cannot legally receive wages or conditions below those in the award for the industry they are working.
• The Fair Work Commission sets the wages and conditions in the award.

Question 71

List the advantages and disadvantages of awards.

Answer 71

ADVANTAGES:
- Cheaper for the business as they are only providing the minimums
- No need to spend time negotiating
- Fewer disputes over wages due to no ability to negotiate at enterprise level
- They provide a safety net for employees, ensuring they cannot receive wages or conditions below

DISADVANTAGES:
- May be more challenging to find talented employees
- Less flexibility to tailor the wages and conditions to the needs of the business and employees
- Business may need to implement multiple awards

Question 72

Explain an agreement.

Answer 72

Enterprise agreement: an agreement between the employees and their employer on the wages and conditions of employment.

Agreements are reached via the process of enterprise bargaining.
- Enterprise bargaining is the negotiation between the employer and the employees (or their representatives).

• Once parties agree to the conditions in the agreement, it is submitted to the FWC for approval.

Question 73

Outline what the FCW ensures before the approval of an agreement.

Answer 73

• Both parties have agreed to the terms and bargained in good faith
• Employees are Better Off Overall on the new agreement than they would be on the industry award (Pass Better Off Overall Test)
• There is no unlawful content in the agreement
• Not exclude the NES
• Include an expiry date

Question 74

Explain an individual employment contract in an agreement.

Answer 74

• An agreement between an employer and an individual employee that sets out the terms and conditions of employment.
• Individual employment contract can’t provide less than minimum requirements set out in the NES, award or enterprise agreement that apply
• Often used for highly paid employees such as executives

Question 75

List the advantages and disadvantages of agreements.

Answer 75

ADVANTAGES:
- Highly flexible - the wages and conditions can be tailored to the needs of the employees and the business
- Can attract and retain high quality employees
- Productivity gains can be rewarded with higher wages/improved conditions

DISADVANTAGES:
- Time consuming to negotiate and come to an agreement
- Negotiations can break down, increasing the chance of industrial action
- More expensive for the business

Question 76

Explain workplace disputes.

Answer 76

• Workplace disputes can arise at any time between employees or between employees and the business.
• Disputes should be taken seriously and dealt with in a fair and consistent manner

Some of the common reasons for conflict can be:
- Negotiation of a new agreement
- Health and safety issues
- Disciplines concerns
- Treatment from a manager or other colleague
- Harassment or bullying
- Disagreement over wages or conditions
- Job security

Question 77

Explain industrial action.

Answer 77

Industrial action: is measures taken by employees or employers as a form of protest.

Common actions include:
- Strike: Employees withdraw from work for a period of time
- Work to rule: Workers only perform the bare minimum
- Work ban: Employees refuse to perform all of their duties
- Lockout: Action taken by the employer where they don’t let the employees into the workplace

Question 78

Define protected and unprotected industrial action and list some requirements for approval.

Answer 78

Protected industrial action is action taken that is approved by the Fair Work Commission.

Unprotected industrial action is action not approved by the FWC and therefore unlawful. Damages can be sought for this action.

Some requirements for approval include:
- It is supporting claims in relation to an enterprise agreement
- The expiry date of the previous agreement has passed
- Both parties have genuinely tried to reach an agreement
- The employer has been provided with the required notice

Question 79

Explain dispute resolution.

Answer 79

Resolving disputes is important so that employees can get back to being productive and working in a positive environment.

The first step in resolving a dispute may be through a discussion or possibly through negotiation:
- Negotiation: is where the disputing parties discuss their issues between themselves to come to their own resolution.
- This can help maintain positive relationships where the disputing parties see the issue from different perspectives

Question 80

Explain mediation.

Answer 80

Mediation is where an independent third party facilitates the conversation between the disputing parties, with the aim of them coming to their own resolution.

• Can help if discussions had previously been breaking down.
• The hope is that the disputing parties come to their own resolution.
• Mediator helps ensure the concerns and ideas of each party are heard.

Question 81

List the advantages and disadvantages of mediation.

Answer 81

ADVANTAGES:
- The disputing parties come to their own resolution. More likely accepting of the outcome.
- Helps maintain positive relationships.
- Generally more cost effective
- Both parties have their opportunity to communicate

DISADVANTAGES:
- There is no guarantee there will be a resolution
- Outcomes from mediation may not be legally binding, allowing a change of mind afterwards
- It is voluntary which means the do not need to turn up, delaying any resolution

Question 82

Explain arbitration.

Answer 82

Arbitration: is where both parties put their case forward to an independent third party who then makes a final decision on the outcome.

• After considering both sides, the arbitrator will make a binding decision.
• The Fair Work Commission can be called on to be the arbitrator.

Question 83

List the advantages and disadvantages of arbitration.

Answer 83

ADVANTAGES:
- A resolution is guaranteed
- It is usually an efficient process where a decision will be made relatively quickly
- It is compulsory to attend
- The decision is legally binding

DISADVANTAGES:
- No control over the resolution, which may result in one or both parties being unhappy with the outcome
- Often more expensive