Unit 4 Outcome 1c

Question 1

What are employee relations?

Answer 1

This refers to the total interaction that occurs between an employer and the employee in regard to the establishment of conditions of employment. Conditions of employment can include wages, hours worked, sick leave and paid holiday leave. Furthermore the interaction usually includes the employer and employees’ representatives.

Question 2

What is an employer?

Answer 2

For legal purposes and employer:
. Exercises control over employees
. Has responsibility for payment of wages
. Hold the power to dismiss employees

Question 3

What is an employee?

Answer 3

An employee is a worker under an employer’s control. Control may involve:
. The location of the workplace
. The way in which the work is performed
. The degree of supervision involved

Question 4

What are industrial relations?

Answer 4

This is an old term which has now been replaced with the broader term ‘workplace relations’. Industrial relations usually refers to the resolution of conflict between employers and employees, whilst employee relations incorporates all the in the employer-employee relationship in the workplace.

Question 5

What are common objectives and strategies for businesses?

Answer 5

1. Profit and profitability
2. Customer and staff satisfaction
3. Improving quality
4. Acting ethically
5. Social responsibility

Question 6

Explain how the follow business objective can be linked to employee relations: Profit and profitability

Answer 6

Employees of course want higher wages because too low wages = poor motivation. However, businesses want low wage because too high wage = eats into profits. Most wage increases are negotiated by linking them to employee productivity . Productivity improvement = more profit.

Question 7

Explain how the follow business objective can be linked to employee relations: Customer and staff satisfaction

Answer 7

Customer and staff satisfaction can influence each other because satisfied staff will treat customers better. This better treatment therefore makes customers more satisfied. Furthermore customer satisfaction is a great indication of business performance whilst staff satisfaction helps to maintain the willingness of employees to remain with the business (reduces costs associated with turnover. Better workplace relations environment is likely to lead to greater staff satisfaction.

Question 8

Explain how the follow business objective can be linked to employee relations: Improving quality

Answer 8

A healthy, conflict-free workplace = staff more willing to participate in quality improvement activities eg. TQM requires commitment from everyone, this commitment can be achieved through conducting employee relations in a positive and inclusive manner.

Question 9

Explain how the follow business objective can be linked to employee relations: Acting ethically

Answer 9

An ethical workplace means there is openness and honesty with employees, which employees like. When difficult conditions arise, such as organisations having to take pay cuts or reduce work hours, employees will only agree if they believe it is being done ethically. eg. In order to protect from job cuts. If an organisation is recognised as ethical, then it can assist in employee relations issues.

Question 10

Explain how the follow business objective can be linked to employee relations: Social responsibility

Answer 10

Employees have the right to request flexibility in working arrangement, especially due to family concerns. Organisations that are willing to negotiate these sorts or things can assist the organisation in meeting its objective or being recognised as socially responsible workplace.

Question 11

What does employee relations focus on?

Answer 11

The total employer/employee relationship and is aimed at creating a harmonious working relationship. This allows for:
. maximum workplace productivity,
. increases business competitiveness,
. decreases levels of conflict
. and promotes the concept of an organisational team.

Question 12

What are the stakeholders in employee relations?

Answer 12

. Employees
. Employers and human resource managers
. Trade unions
. Employee associations 
. Governments and government organisations (eg. Fair Work)

Question 13

Explain the following stakeholder in employee relations: Employees

Answer 13

STAKEHOLDER IN THE ORG
. They are, on average, more highly educated than in the past.
. They demand more challenging, interesting work, greater involvement in decision-making process and autonomy at their workplace.
. Increasing practice of negotiating employment agreements means employees will be more closely engaged.
. They are likely to want improved productivity, or achievement of specified objectives, in return for improved wages or conditions.

Question 14

Explain the following stakeholder in employee relations: Employer and human resource managers

Answer 14

STAKEHOLDER IN THE ORG
. HRM’s represent employers in employee relations.
. Many LSO’s will employ one or more employee relations specialists within their HRM departments.
. This is because legal responsibilities of businesses in relation to employee relations matters has become more complex.
. This is due the moving away from a centralised system.

Question 15

Explain the following stakeholder in employee relations: Trade unions

Answer 15

STAKEHOLDERS IN OPERATING ENVIRONMENT
. They are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and the working conditions of their members.

Question 16

Explain the following stakeholder in employee relations: Employer associations

Answer 16

STAKEHOLDERS IN OPERATING ENVIRONMENT
. They are organisations that represent and assist employer groups.
. Originally created by employers in response to employee membership of unions, to represent employers in making awards through the centralised employee relations system.

Question 17

Explain the following stakeholder in employee relations: Government and government associations

Answer 17

STAKEHOLDERS IN THE MACRO ENVIRONMENT
. Have five key roles in employee relations processes:
1. Legislator
2. Employer
3. Economic manager
4. Administrator of government policies on employee relations
5. Representative if Australia in the international arena
. Over year, government has set up various bodies to deal with the resolution of industrial disputes.
. Current body is known as The Fair Work Commission

Question 18

What is a centralised system?

Answer 18

A centralised system of employee relations is one in which governments and their tribunals decide the wages and employment conditions of all employees in an industry, these were known as awards. The centralised system was in place in Australia from 1904 to the early 1990’s.

Question 19

What are the advantages of the centralised system?

Answer 19

1. Centralised wage fixing provides a degree of comparative wage justice and equity for workers employed by different employers.
2. Governments have greater control over wage outcomes through polices such as wage indexation, and so can maintain better management of the economy.
3. Industrial disputes within individual businesses can be reduced because awards can cover entire industries.
4. Stability and predictability are enhanced because one set of rules and procedures applies to all industries and organisations.

Question 20

What are the disadvantages if the centralised system?

Answer 20

1. The system is less flexible. Eg. The same wages and conditions would be applied to a large scale organisation in a capital city and a small business on a country town
2. A centralised system does not provide enough opportunities for individual businesses to provide improvements in employment conditions in return for productivity gain.
3. Large unions are favoured because they have the money and resources to mount expensive legal cases before industrial tribunals.
4. There is less incentive for a participative approach to management, because decisions on wages and conditions are not made within the organisation.

Question 21

What are the advantages if the decentralised system?

Answer 21

1. There is flexibility to introduce employment conditions that take into account the individual characteristics of each workplace.
2. Greater communication between employers and employees can improve staff motivation through the development of a greater cooperative spirit.
3. Greater effort and contribution to productivity improvements by employees can be rewarded.

Question 22

What are the disadvantages of the decentralised system?

Answer 22

1. There is likely to be grater inequality between the wages of skilled and unskilled workers, as unskilled workers have less bargaining power.
2. Government has less control over wages, making management of the economy more difficult.
3. With less involvement of centralised tribunals, industrial disputes could drag on for longer periods.

Question 23

What are similarities between the centralised and decentralised system?

Answer 23

. Both deal with determining wages and conditions for employees
. Both use awards
- centralised = primary form of terms and conditions
- decentralised = used as a safety net

Question 24

What are differrences between the centralised and decentralised system?

Answer 24

. In a CS wages and conditions are determined external to the workplace whilst in a DS wages and conditions are negotiated within the workplace.
. CS involves external bodies such as Fair Work Commission, unions representing the employees and the employer associations representing employers whilst the DS involves negotiations/bargaining between the employees and employers at the enterprise level.
. In a CS wages and conditions are set according to the industry awards for all employees in an industry whilst in a DS wages and conditions set according to collective of individual agreements for all the employees in a workplace.
. In a CS everything is industry specific - one set of rules applies (within the 10 minimum standards). Whilst in a DS everything is workplace specific - multiple conditions exist.

Question 25

What are differrences between the centralised and decentralised system? Continuation

Answer 25

. CS has no employee empowerment, meaning conditions are set for them by others. Whilst a DS has greater employee empowerment, meaning conditions are determined based in collaboration and negotiation.
. A CS is less flexible because there is a blanket approach, meaning it covers employees in an entire industry. Whilst a DS is more flexible because it can take into account individual employee and workplace needs.
. CS uses the 10 national employment standards whilst DS uses collective agreements and individual contracts.
. CS has grater union involvement whilst DS has less union involvement.
. CS is less time consuming because it is done at industry level and covers everything, whilst DS is more time consuming because there is negotiation taking place.
. In CS wage rises are linked to higher costs of living (meaning government has greater control, no link to productivity). Whilst in a DS wages rises are linked to increased productivity (benefit employee and employer).

Question 26

What are industry-wide awards?

Answer 26

They are applicable to any businesses which haven’t established agreements at enterprise level. However, for other organisations they simply provide a set of minimum employment standards for employees working within an industry.

The process of enterprise bargaining has provided the opportunity for employees to gain employment conditions that improve on these minimum standards. therefore centralised.

Question 27

What do awards include?

Answer 27

(This is provide a safety neg of basic employment conditions for all employees)
. The 10 national employment standards
. And the 10 matters that can be included in modern awards

Question 28

What are collective agreements?

Answer 28

A collective/enterprise agreement is a negotiated agreement between an employer and a union or a group of employees and is therefore decentralised. The expectation is that both parties enter negotiations in good faith and the duration of the agreement is up to four years.

Question 29

What are individual agreements?

Answer 29

An individual agreement is a negotiated agreement between an employer and individual employee, it is therefore decentralised. How long the agreement lasts is determined through the negotiation.

Question 30

What is the role of the HRM under a decentralised approach?

Answer 30

. Negotiation of employment agreements with employees and their representatives
. Training staff and other managers
. Implementation of the agreement
. Dealing with disputes

Question 31

Explanation of the following HRM role under a decentralised approach: Negotiating employment arrangements

Answer 31

The following process can be used by HRM seeking the best possible outcome in terms of employee commitment, genuine productivity improvements, and flexibility for both employer and employee.

1. Be aware of all relevant awards and legal requirements (legally enforceable safety net mist be known)
2. Ensure all relevant information is available to employee representatives (establishes immediate trust)
3. Consult widely (can provide info on how to overcome potential problems)
4. Keep an open mind (proposals may be worthwhile and unions often have experience)
5. Keep the big picture in mind (consistency with organisations vision and objectives)
6. Exercise care with the wording of the agreement (ensure everyone can understand all implications)
7. Lodge the agreement

Question 32

Explanation of the following HRM role under a decentralised approach: Training other managers and supervisors

Answer 32

Other managers and supervisors need to be fully informed of the details of the agreement to ensure that processes for achieving productivity improvements are put into operation. Monitoring processes with appropriate performance indicators is necessary to track the success of changes in work practice.

Question 33

Explanation of the following HRM role under a decentralised approach: Implementing agreements

Answer 33

Changes to wages, hours pf work, leave entitlements and flexibility arrangements will be handled by HRM. They also have responsibility for preparing and distributing the legally required Fair Work Information Statement.

Question 34

Explanation of the following HRM role under a decentralised approach: Dealing with disputes and conflict

Answer 34

HRM are central to managing the resolution of disputes that may arise under an enterprise agreement.

Question 35

What do successful employee relations depend on?

Answer 35

Both the management style and management skills of all managers and supervisors in an organisation.

Question 36

Management styles in employee relations.

Answer 36

Consultative or Participative styles of management result in positive employee relations. This is because these styles:
. Encourage employee involvement in the decision making process,
. Allow for negotiations to precede any final decision,
. Develop harmonious, positive working relationships
. Encourage employee innovations

On the other hand they can use the autocratic management style, however the HRM tends to find that employee relations becomes a source of conflict, furthermore it can be bad for the ‘brand if an organisation.

Question 37

Management skills in employee relations.

Answer 37

Positive working relationships will be enhanced by a consultative or participative management style, so management skills that support such a style is important in contributing to positive employee relations culture.
. Communication skills
. Teamwork skills
. Problem solving skills

Question 38

Explain the following management skill in employee relations: Communication skills

Answer 38

Good communication helps to build trust, support positive negotiations and helps with the timely resolution of disputes.

Question 39

Explain the following management skill in employee relations: Teamwork skills

Answer 39

Establishing and supporting teams and responding positively to team activity contributes to the level of engagement of employees.

Question 40

Explain the following management skill in employee relations: Problem-solving skills

Answer 40

The ability to analyse and interpret the source of problems helps avoid a tendency to blame individuals or groups for those problems. Unnecessary conflict can be avoided through the application of good problem solving skills.

Question 41

What are the benefits of effective employee relations?

Answer 41

. Superior overall organisational performance (in sales, growth, market share and customer satisfaction)
. Success in international markets  
. Fewer industrial disputes
. Higher productivity
. More effective enterprise agreements
. Fewer workplace accidents
. Lower staff turnover and absenteeism

Question 42

What is conflict?

Answer 42

This refers to disputes, disagreements or dissatisfaction between individuals and/or groups. This can still occur even with the most positive employee relations environment and can be expressed as industrial action.

Question 43

What is an industrial dispute?

Answer 43

The Australian Bureau of statistics defines this as a withdrawal from work by a group of employees, or refusal by an employer or number of employers to permit some or all of their members to work.

Question 44

Why do these actions occur?

Answer 44

Each withdrawal or refusal is made to enforce a demand, resist a demand or express a grievance.

Question 45

What is a strike?

Answer 45

This occurs when employees withdraw their labour for a period of time in pursuit of improvements in their employment conditions.

Question 46

What is a lockout.

Answer 46

This occurs when employers close the workplace for a period of time as a means of applying pressure to employees during a period of industrial conflict.

Question 47

What are other forms of industrial action?

Answer 47

1. Picket lines - protests which take place outside the workplace, generally associated with a strike. Unionists stop the delivery of goods and try to stop the entry of non-union labour into the workplace.
2. Work bans - a refusal to work overtime, handle a product, piece of equipment, process, or even a refusal to work with particular individuals.
3. Work to rule - this is where employees refuse to perform any duties that are additional to the work they normally are required to perform.
4. Absenteeism, vandalism and sabotage - these concealed, unofficial expressions of conflict may be even more costly to the organisations than open official industrial disputes.

Question 48

What are some causes of conflict?

Answer 48

1. Disputes relating to negotiation of awards and collective/enterprise agreements.
2. Disputes relating to outside awards and collective/enterprise agreements.

Question 49

What are some disputes relating to negotiation of awards and collective/enterprise agreements?

Answer 49

These issues include disputes about:
. Remuneration (wages, allowances, entitlements and superannuation)
. Employment conditions (working hours, leave, benefits and other general employment conditions)
. Other agreement related matters (eg. job security)

Question 50

What is protected industrial action?

Answer 50

This refers to action taken by either party to a dispute that has been approved by the Fair Work Commission.

Question 51

What is unprotected industrial action?

Answer 51

This refers to action that has not been approved by the Fair Work Commission.

Question 52

How is conflict resolved?

Answer 52

A number of different approaches are available. Successful resolution will often also depend on the styles and skills of managers, particularly HRM.
. Negotiation
. Mediation
. Grievance procedures
. Dispute resolution at the Fair Work Commission
. Common law action
(Also conciliation and arbitration)

Question 53

Explain the following conflict resolution: Negotiation

Answer 53

This is where discussions take place between parties to result in a compromise and a formal or informal agreement about a dispute. This is the least formal method of dispute resolution because it is kept between the two parties.

Question 54

Explain the following conflict resolution: Mediation

Answer 54

This is the confidential discussion of issues in a non-threatening environment, in the presence of a neutral third party. The third party assists the parties in dispute to work towards an agreement, but will not offer suggestions or solutions.

Question 55

Explain the following conflict resolution: Grievance procedures

Answer 55

This provides an orderly system where the employee and employer can resolve matters relating to complaints about wages, hours, working conditions or disciplinary action. It involves either going through to the next stage of moving on, depending on whether the dispute is resolved or not.
STAGES: (in typical grievance procedure)
1. Employee and/or representative present complaint to supervisor
2. Complaint is handled by middle management meeting with employee and/or supervisor
3. Meeting of employee and/or representative with top management representative and/or grievance committee
4. Matter referred to external conciliation or arbitration by parties involved

Question 56

Explain the following conflict resolution: Dispute resolution at the Fair Work Commission

Answer 56

The Fair Work Commission is the national independent workplace relations tribunal and can help parties resolve disputes on a variety of ways, particularly through mediation, conciliation and in same cases arbitration. All three involve a third party listening to both side to a dispute, however mediation is just listening whilst conciliation involves a more active role of putting forward suggestions. Arbitration takes it a step further as it is similar to a court hearing as their can be cross-examinations and a decision is made by a member of FWC which becomes legally binding to the parties.

Question 57

Explain the following conflict resolution: Common law action

Answer 57

Legal action before the courts is open to any party involved in or affected by industrial action. Parties may make claims for damages or for breach of contract. These legal actions are usually heard in the FW division of the federal court. This is considered a last resort and doesn’t go well with a consultative or participative management style.

Question 58

What are some disputes relating to outside awards and collective/enterprise agreements?

Answer 58

. Health and safety that relate to physical working conditions
. Job security issues
. Managerial policy issues
. Union issues
. Other non agreement related matters

Question 59

Explain the consultative management style.

Answer 59

The Consultative management style is where employees are consulted before decisions are made and is therefore less centralised, however the manager still makes the final decision.
. This style has two-way communication in place as it gives employees the opportunity to have some input in the decision making process and voice their ideas.
. This style is effective when a new operating procedure is to be introduced or some organisational change implemented.

Question 60

Explain the participative management style.

Answer 60

. The Participative style is where the manager not only consults with employees, but also gives them some responsibility in the decision making process, meaning two-way communication is present.
. Control is shared by the managers and employees and means the importance of organisational structure may be minimised.
. This style is great in times when the organisation is operating in an environment undergoing rapid change

Question 61

Explain the following management skill: communication

Answer 61

. Communication is the ability to transfer information from a sender to a receiver.
. It also involves listening to feedback and can occur both inside and outside the organisation.
. This skill lets staff know what is expected of them, maintains good relationships and has different methods of communication such as body language, oral, visual and written form such as letters, emails and reports.

Question 62

Explain the following management skill: problem solving

Answer 62

. Problem solving is the broad set of activities involved in searching for, identifying and then implementing a course of action to correct an unworkable situation.
. There is a problem solving process to help with this, however this systematic, formal approach doesn’t need to be used in every situation.

Question 63

Explain the following management skill: Negotiation

Answer 63

. Negotiation is the ability to resolve a dispute or to produce an agreement on a course of action.
. The outcome should be satisfactory to both sides.
. This skill involves managers putting themselves in the shoes of the other party.

Question 64

Explain the following management skill: Team building

Answer 64

. Team Building is the process of managers and employees collaborating in order to achieve objectives.
. This skill requires managers to have a good understanding of team/group dynamics which is the interaction of individuals within teams and groups.
. It also has the potential to empower employees and transform managers.

Question 65

What does the Fair Work Commission have the power to do?

Answer 65

. Vary awards
. Make minimum wage orders
. Approve collective agreements
. Determine unfair dismissal claims
. Make orders relating to: good faith bargaining and industrial action
. Assist employees and employers to resolve workplace disputes

Question 66

What is a decentralised system?

Answer 66

A decentralised system is one in which direct negotiations occur between and individual employer and either individual employees, groups of employees or the representatives of those employees. Even though decentralised employee relations is the approach now, under current legislation, the major area of employee relations that is still completely centralised is the determination of the minimum wage, this is however more of a safety net.