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Unit 4 - Business Management - SAC 1b

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Jess Maree

on 21 August 2013

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Transcript of Unit 4 - Business Management - SAC 1b

The Human Resource Management Function
- SAC 1 b

First stage in the employment cycle.
Concerned with obtaining new employees.
Establishment - continued
Types of termination:

Employee chooses to terminate employment arrangement.

Employee chooses to terminate employment when they have reached an age where they have the option to cease work.

Employee and employer relationship is terminated because of a lack of work. It is no longer viable for the employee to remain at the organisation.

Employer makes the decision that a position is no longer required, the employee is made redundant. May be voluntary or involuntary. Employer is liable to offer compensation for lost income and is usually dependent on the number of years service.

Employer terminates employment either summarily (instantly) because of serious misconduct (eg:theft) or following due process, where appropriate warnings were given.
Good Luck!
- Mrs Hall

1 SAC to go after this one! You're almost there. Stay motivated!
Please listen simultaneously to the podcast
Employee Arrangements:
Types of employment (Full time, Part time, Casual)
Working conditions (Leave entitlements)

The monetary payment in return for the work an employee performs.
Wage (hourly rate)
Salary (fixed amount, regardless of hours worked)
Employment arrangement and Remuneration
Involves choosing the candidate who best matches the organisation's requirements.

How do H.R Managers select the right candidate?
Application forms
Background Checks

Selection is crucial in order to maximise performance and keep recruitment costs low.
Screening & Selection
The process of attracting qualified job applicants from which to select the most appropriate person for a specific job

Methods of recruitment:
Noticeboards, company newsletters and email.
Recruitment Agencies
Professional associations
Previous Applicants
Effective reward and recognition programs will attract, retain and motivate employees.

is acknowledging employees have performed well and may include a
(eg. Bonus).
Should reinforce the organisations values and corporate code of conduct.
Intrinsic rewards are received from the job itself, like a sense of achievement.
Extrinsic rewards are externally sourced, and may include monetary benefits or fringe benefits.
is the process of providing employees with the knowledge and skills required to complete their tasks, while
in the process of preparing employees for future promotion and longer term opportunities.

Benefits of training and development:

For Employees
Opportunity for promotion
Increased satisfaction through job performance
Challenges the employee to try new things and come out of their comfort zone
Increased innovation

For Employers

Higher Productivity.
Achieve Objectives.
Reduced costs due to lower turnover, absenteeism and mistakes.
More capable and flexible workforce.
Fewer OH&S injuries.
Training & Development
The process of introducing new employees to the organisation; it's history, objectives, culture and policies. Also provides employees with information needed in order to perform their job and ease anxiety.

Benefits of induction:

For Employees
Relieves anxiety associated with beginning a new job.
Motivation will increase
Able to be productive quicker.
Sense of purpose and achievement

For Employers

Recruitment is expensive so a well inducted employee is likely to last longer in an organisation.
Employees will be more productive and motivated. Sense of purpose and achievement Morale will be higher.
Focuses on improving both organisational and individual performance through relating organistional performance objective to individual employee performance objectives.

Performance appraisal is the formal assessment of how efficiently and effectively an employee is performing their role in the organisation.

Employees should understand what is expected of them.
Allows employers to identify any future training requirements.
Can make judgements on pay
Allows for feedback - promote job satisfaction
Recognition & Reward
Performance management
Employee Relations:
incorporates all the issues in an employee-employer relationship in the workplace in regard to the establishment of conditions of employment. It includes recruitment, equal opportunity, training and development and organisational structure.

Industrial Relations:
Refers to the resolution of conflict between employers and employees.

Working conditions must be linked to business objectives. Good employee relations is central to business success. Positive relationships are based on:

Joint commitment between management and employees to the organisation’s objectives.
An effective use of communication and Emotional Intelligence (EQ).
Provision of good pay and rewards and return for productive work.
Maintenance of good employer-union relationships
Employee Relations
The government interferes in the process of wage and conditions fixing between employer and employees.
Used from 1904 – 1990s.
Award was determined as a result of union and employer bodies presenting submissions to the Conciliation and Arbitration commission.
Centralised System
Employees are able to negotiate conditions with their employers individually.
Enterprise bargaining represents a decentralised system.
Change work practices to needs and link productivity to wage increases.
Decentralised system
Employers and human resource managers handle employee relations daily.
Employees are closely engaged in employee relations matters, whether it be through individual agreement negotiations or through voting on a collective agreement.
Trade Unions
Organisations formed by employees in an industry to represent employees for improvements in wages and conditions. Often called upon when it is time to negotiate new agreements.
Employer Associations
Organisations that represent and assist employer groups.
Create legislation related to employee relations, employee 1/3 of Australian workers
Industry wide agreement (Award)
Legally binding agreement that sets out the minimum wages and conditions of employment for a group of people, usually industry-wide.

Collective agreement
Has been determined by the process of collective bargaining and determines the terms and condition of employment through direct negotiation between unions and employees relating to a particular workplace or industry.
Negotiations should be conducted in good faith, not about forcing the other side to make certain or accept certain offers. Negotiations should be genuine, fair, reasonable, with all relevant information disclosed.
Must meet all minimum award conditions.

Individual agreement (contract)
Agreement made directly between an employer and an employee that covers working conditions and remuneration.
Must still meet all minimum award conditions.
Industry Awards, Collective Agreements, Individual Agreements
Negotiating Employment Arrangements
These things should be considered when negotiating an agreement, in order to achieve the best possible outcome for both employee and employer:
1. Be aware of awards and legal requirements.
2. Be transparent with all relevant information, in order to maintain a level of trust.
3. Seek feedback from other managers, especially if productivity is forming a basis for the agreement.
4. Keep an open mind.
5. Consider organisational objectives.
6. Exercise care in the wording of the document.
7. Lodge the agreement with Fair Work Australia

Training other managers and supervisors to facilitate and implement agreements within their areas of responsibility.

Implementing agreements

Dealing with disputes and conflicts that may arise during the life of an agreement.
H.R Manager's role
Top down communication often leads to conflict.
Tend to prefer individual contracts.
Good EQ skills which mean they have the ability to turn negative conflicting situations into positive outcomes.
Build positive relationships because employees feel valued.
They will often compromise
Employees involved in decision making process.
Often more individual agreements.
Much more accommodating to the employees’ wants.
Management styles
Clear, accurate messages during negotiations
Need active listening skills
Interpret body language during discussions in order to gauge the other parties position. Eg: Arms crossed – closed body language.
Managers often deal with conflict resolution. During these negotiations, they must analyse their position and that of the other side, in order to find an acceptable compromise.
Must identify common goals and work towards a mutual agreement, with a win-win outcome.
Emotional Intelligence
H.R Managers ability to empathise with the other side, during enterprise bargaining can help to resolve matters more quickly.

Decision Making
During enterprise bargaining, ultimately a decision needs to be made, so having this skill is crucial.
If employee believe the decision only benefits the organisation, they may leave or become demotivated, impacting on the organisation’s productivity.
Management Skills
Negotiation – method of resolving disputes through discussion
Not legally binding
Two parties
Mediation – confidential discussion of issues
Independent third party who doesn’t give suggestions.
Not legally binding.
Independent third party who gives suggestions.
Not legally binding.
Independent third party who provides a legally binding decision.
Common Law Action
Legal action
Parties may make direct claims for damages.
Seen as a ‘last resort’
Grievance Procedures – formalised set of steps
1.Employee and supervisor meet to discuss issue between themselves.
2.Complaint handled by middle management in a meting with employee and/or representative.
3.Meeting with employee and/or representative with top management and/or grievance committee.
4.Both sides meet with mediator.
5.Both sides meet for conciliation at Fair Work Australia.
6.Both parties meet with an arbitrator.
Conflict Resolution
Motivates employees.
New views.
Uses an established skill set.
Employee morale may improve.
Employees without the right skills may be promoted.
Employees may be dissatisfied if they are not promoted.
Different attitudes and ideas.
Current staff may not be suitable.
Wider choice of candidates.
New employees need to adjust to the new environment.
New employee may not fit in with the corporate culture.
The maintenance phase of the employment cycle aims to retain and/or advance the best employees in an organisation.
Similarities / Differences
Equal wages, comparative wage justice.
Government has better control over wage outcomes through indexation and can manage the economy better.
Disputes reduced as Awards cover businesses.
Consistency with rules as there is only one set.
Advantages Disadvantages
Less flexible.
Fewer opportunities for individual businesses to provide improvements in employee conditions in return for productivity increases.
Large unions favoured this as they have funds to mount expensive cases.
Less incentive for participative management as wages are not made within the organisation.
Improved motivation.
Productivity improvements can be rewarded.
Advantages Disadvantages
Inequality between wages.
Government has less control.
Disputes can drag on for longer.
Fair Work Australia - Dispute Resolution
- refers to disputes, disagreements or dissatisfaction between individuals and/or groups.

Forms of Industrial Action:
Strike :
Employees withdraw their labour for a period of time in pursuit of better pay and working conditions
Employers close the workplace for a period of time as a means of applying pressure to employees during industrial conflict.
Picket Line:
Usually accompany a strike. Employees protest outside the workplace. May stop delivery of goods.
Work Ban:
Refusal to work overtime, handle a product or piece of equipment.

Causes of conflict:
Employment conditions - hours worked
Job security

Protected action

Approved by Fair Work Australia
Legitimate tactic in negotiating a new enterprise agreement.
Employees cannot be fired for partaking in it
Unprotected industrial action

Not been approved by Fair Work Australia and is seen as unlawful.
This action is taken without proper notice or will take place before the expiry date of the previous agreement.
Both deal with terms and conditions of employment.
Both use awards as the minimum terms and conditions of employment for an entire industry, though under decentralised awards are more of a safety net.

Decentralised approach has terms and conditions that are determined at the organisation level, while centralised is for the entire industry.
Decentralised approach, stronger link between productivity and terms and conditions. Centralised does not have this link.
Decentralised approach is more flexible than centralised approach.
Fair Work Australia
Act as an independent tribunal, arranging arbitration hearings that are conducted along the lines of a court case.
A Commissioner can be appointed to convene a conference between the parties to resolve the issue, hear the matter, and make orders to ensure that good faith bargaining occurs between the parties in conflict.
Fair Work Australia has power to stop or suspend industrial action if it threatens significant harm to Australian economy or welfare of the population.
Under the Rudd Labor government, the Fair Work Act established Fair Work Australia.
It is a one-stop shop for information, advise and assistance on workplace issues.
Replaced a number of previous government agencies eg: Australian Industrial Relations Commission and Australian Fair Pay Commission.
Determines wages and working conditions.
Modernised awards.
Outlines 10 National Employment Standards.
Unions given back some power.
Full transcript