Unit 4 - 1C Flashcards
centralised approach
a centralised system of employee relations is one in which central tribunals decide the wages and employment conditions of all employees.
main features of centralised approach
- awards are grouped based on industry
- awards are determined as a result of unions and employer organisations presenting submissions to the conciliation and arbitration commission
- current legislation states the minimum wage and standards
Advantages of centralised approach
- provides justice and equality fro all employees
- government has greater control over wage outcomes
- industrial disputes and conflict is minimised
- stability and predictability are enhanced as there is one set of rules
Disadvantages of centralised approach
- the system is less flexible
- doe not allow for improvement in employment conditions in individual lso
- arge unions are favoured due to their resources and money to access legal aid
- less incentive for a participative approach to management
Modern Awards and what they contain
modern awards are new and streamlined and created to replace thousands of existing ones. Awards contain the 10 national employment standards, including minimum wage.
Decentralised system
is one in which direct negotiations occur between an individual employer and either individual employees, groups of employees or the representatives of employees at a work place level. Employees are collaborative and have a say in the wage and conditions of the workplace.
features of decentralised system
- employees negotiate with employers in individual workplaces discussing the wage, benefits and working conditions
- all negotiated agreements must meet the minimum national standards.
- allows businesses to control productivity and motivation levels through the wage increase or benefits.
- collective or individual agreements available
Advantages of decentralised system
- flexibility to introduce employment conditions and take in the characteristics and culture of the organisation and what is required to satisfy employees
- greater communication of needs and wants between employees and employers
- encouragement of participative management style where employees feel valued and maintain motivation
disadvantages of decentralised system
- greater inequality between workers with individual agreements
- government has less control over wages and the economy
- tribunals are less involves, therefore disputes and conflict is increased
similarities between centralised and decentralised approach
- the objective of both approaches is to determine wages and conditions for employees
- both use awards. centralised = primary form of terms and conditions. decentralised = used as a safety net
- both have relations to fair work commission whether to create or approve
differences between centralised and decentralised approach
- centralised: wages and conditions determined externally vs decentralised: wages and conditions are negotiated within the LSO
- centralised: wages and conditions are determined by awards which are the same for all employees within the organisation. vs decentralised: wages and conditions are either collective to the individual to organisation or even individual employee agreements.
- centralised: no employee empowerment. vs decentralised: based on collaboration and negotiation between employees.
- centralised: less time consuming. vs decentralised: more time consuming through negotiation and disputes
- centralised: decreased chance of disputes. vs decentralised: increased chance of disputes and conflict
collective agreement
A collective agreement is when all employees within an individual organisation receive the same wages and conditions. A collective agreement is achieved through the collaboration and negotiation between employees and employers.
individual contract
An individual contract is when one employee negotiates with employers to determine wages and conditions. In order to achieve an individual agreement, employee must earn over $100, 000
what are the four subheadings/ areas the HR manager oversees when acting under decentralised approach ?
- negotiating employment agreements
- training other managers and supervisors
- implementing agreements
- dealing with disputes and conflict
the role of HR manager decentralised approach
negotiating employment agreements
- HR manager acts on behalf of LSO and therefore must ensure that all proposed agreements align with the objectives of the LSO, while being aware off all legal requirements such as the 10 national standards
- responsible for lodging all collective agreements with FWC
- gathering opinions and consulting key representatives within LSO, e.g. consult financial manager to see what wages would be appropriate
- coordinate meetings
