Unit 4 A.O.S. 1C Flashcards
What relationship does employee relations have to business objectives and strategies?
Look at the question what role does employee relations have in an organisation and achieving its overall objectives?
If an organisation can manage their employee relations well, it can assist them in achieving their objectives. Positive employee relations can result in a number of things including:
- improved relationships.
Between the manager and the employee or the organisation and employee.
- improved work life balance.
- improved productivity.
- increased wages.
- higher morale.
- lower staff turnover and absenteeism.
The majority of these things all relate to an increased chance to achieve business objectives.
Who represents employers and employees in employee relations matters?
Union:
Represents employees in employee relations matters.
With human resource managers and others employers essentially represent themselves.
Explain the centralised employee relations system.
A centralised system is defined as a system in which the government and their tribunals set the wages and working conditions for entire industries. The government body would go through either CONCILIATION OR ARBITRATION to figure out what the wages and working conditions should be in a particular industry the agreement that these tribunals would come to was called an AWARD and covered an entire industry.
What are some advantages and disadvantages of the centralised employee relations system?
ADVANTAGES:
- Equality for workers.
- Government has greater control over wages which helps in the management of the economy.
- Stability and predictability as same rules are applied to all organisations in an industry.
DISADVANTAGES:
-less flexibility.
- productivity gains at individual workplaces cannot be rewarded with better conditions.
- large industrials disputes can occur as an entire industry is fighting for better pay and conditions.
Define the decentralised employee relations system and enterprise bargaining agreements.
A decentralised employee relations system is where the wages and conditions are negotiated at workplace level (at their actual workplace) through enterprise bargaining and individual contracts. Enterprise bargaining is where the employer and employees are able to negotiate their wages and conditions these agreements are called enterprise bargaining agreements. Individual contracts are negotiated 1 on 1 between the individual employee and employer.
What roles do awards play in the decentralised employee relations system?
Awards that exist from the centralised system still exist in the decentralised system. However they are used as a safety net for employees within a particular industry. The enterprise bargaining agreement is negotiated above the award and cannot undercut the award. Some organisations still use the award as their main agreement but the majority use EBA’s.
What are some advantages and disadvantages of the decentralised system?
Advantages of the decentralised system:
- increased flexibility.
- enhanced communication between employer and employees.
- productivity gains can be rewarded.
DISADVANTAGES:
- greater inequality of wages between skilled and unskilled
- government has less control over wages and economy.
- disputes may last longer.
What are some similarities and differences between the two employee relations systems?
SIMILARITIES BETWEEN THE TWO SYSTEMS:
- both systems relate to how wages and conditions of employment are determined.
- both systems use awards.
Centralised as the main agreement, and decentralised as the safety net for EBA’s.
- the government body (fair work commission) can still be involved in conciliation and arbitration.
DIFFERENCES:
- how award are used.
- flexibility
- if increased productivity can be rewarded with increased wages or not.
What are the agreements in a decentralised system?
AGREEMENTS IN A DECENTRALISED APPROACH: the current agreements that exist in a decentralised approach include: - awards. - collective agreements. - individual contracts.
What is an award?
Awards are defined as the agreement that tribunals have come to through either conciliation or arbitration on the set wages and working conditions for entire industries. Awards were created in the centralised employee relations system (between 1904 and 1999) and were the main agreement between organisation and employer in the centralised system. Awards still exist today in the decentralised system but are used as a safety net for enterprise bargaining agreements as opposed to the main agreement in a centralised system.
What is a collective agreement?
COLLECTIVE AGREEMENTS:
Are a contract between an employer and employees.
- both the employee and employer have representatives.
- collective agreements cannot go below the award for that industry.
- Collective agreements cannot go below the Award for that industry.
- they normally last three years and must include an expiry date as well as a procedure for dispute an resolution.
- the agreement should be amicable and negotiated in good faith.
- Once both parties have agreed it I then sent to the fair work commission for approval.
What is an individual agreement?
INDIVIDUAL AGREEMENTS:
Are common law contracts and are not overseen by the fair work commission.
They are common among high salary earners and are enforced in the same way as a normal common law contract.
Disputes are handled through the courts.
What role do the national employment standards play in employee relations?
The national employee my standards are a set of 10 minimum employment entitlements. These entitlements must be provided to all employees. An award or enterprise agreement cannot provide conditions that are less than the NES.
What is the role of the human resource manager under a decentralised employee relations system?
THE ROLE OF A HUMAN RESOURCE MANAGER UNDER A DECENTRALISED APPROACH:
In a decentralised approach, agreements are settled through enterprise bargaining.
This has resulted in the HRM having a much larger role in employee relations.
Having positive employee relations is crucial to maintaining strong relationships and achieving objectives,
The role of the HRM includes:
Negotiating employment agreements.
Implementing agreements.
Resolving disputes.
What is the Human resource managers role in negotiating agreements?
When a new agreement needs to be created, the HRM will represent the employer in these negotiations.
It is important to bargain in good faith to ensure relationships are maintains.
The HRM needs to consider the needs if the employees but also needs to consider the financial position of the organisation: