Business Studies Employment Relations

8/12/2019 Business Studies Employment Relations

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Business Studies - Employment Relations

9.4 HSC topic 4: Employment Relations

20% of indicative timeThe focus of this topic is to understand the nature of effective employmentrelations and their importance to business operation and society.

Outcomes

The student: H2.1 describes and analyses business functions and operationsand their impact on business success H2.2 evaluates processes andoperations in global business H3.2 evaluates the effectiveness ofmanagement in the organisation and operations

of business and its responsiveness to change H3.3 analyses the impact ofmanagement decision-maing on staeholders H!.1 critically analyses thesocial and ethical responsibilities of management H!.2 evaluatesmanagement strategies in response to internal and e"ternal factors H#.1selects$ organises and evaluates information and sources for usefulness and

reliability H#.2 plans and conducts an investigation into business to presentthe findings in an appropriate business format H#.3 communicates businessinformation$ ideas and issues$ using relevant business terminology andconcepts in appropriate forms H#.! applies mathematical conceptsappropriately in business situations

Content

tudents learn to:use existing business case studies to investigate and communicate ideas andissues related to employment relations. The focus of these case studies willbe to:

& analyse ho' conflict and change are managed in a business& prepare and (ustify possible 'ays of resolving conflicts in the selectedbusiness organisations.

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tudents learn about:

the nature of employment relations

& staeholders in the employment relations process employers$employees$ employer associations$ unions$ government organisations

& managing the employment relations function

line management and specialist

key influences on employment relations

& social influences changing 'or patterns$ population shifts& legal influences overvie' of ma(or employment legislation& ne' organisational behavioural influences flat management and team structures& economic influences economic cycle$ globalisation

effective employment relations

& role of employment relations& communications systems grievance procedures$ 'orer

participation$ team briefings& re'ards financial$ non-financial& training and development induction& fle"ible 'oring conditions family-friendly programs

& measures of effectiveness levels of staff turnover$ absenteeism$disputation$ uality$ benchmaring

legal framework of employment

& the employment contract common la' *rights and obligations ofemployers and employees+$ statutes$ a'ards$ agreements

& types of employment contract casualpart-timefle"ible$ permanent$casual



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industrial conflict

& definition and causes 'age demands$ 'oring conditions$management policy$ political goals and social issues

& perspectives on conflict unitary$ pluralist$ radical

& & types of industrial action overt locouts$ picets$ stries$ bans$'or-to-rule

& covert absenteeism$ sabotage$ turnover$ e"clusion from decision-maing in business

& roles of staeholders in resolving disputes

& dispute resolution processes conciliation$ arbitration$ grievanceprocedures$ negotiation$ mediation$ common la' action$businessdivision closure

& costs and benefits of industrial conflict

financial$ personal$ social$ political$ internationalethical and legal aspects

& issues in the 'orplace& 'oring conditions& 4ccupational Health and afety *4H5+& 'orers6 compensation state andor federal agencies and common

la' redress& anti-discrimination& 7ual 7mployment 4pportunities *774+& unfair dismissal.

The nature of employment relations:

7mployment relations refer to the total relationship bet'een employee andemployer.

taeholders in the 7mployment elations 8rocess:

7mployers:

7mployers6 responsibilities are increasing$ as recent legislation todayencourages them to negotiate agreements and resolve disputes at anindividual employee level.

7mployees:

7mployees today are on average more highly educated than in the past. Theybecome bored more uicly and demand more challenging$ interesting 'or.



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Trade 9nions:

,re organisations formed by employees in an industry$ trade or occupation torepresent them in efforts to improve 'age and the 'oring conditions of theirmembers.

7mployer ,ssociations:

,re essentially counters to trade unions. They protect employers in themaing of a'ards and other industrial issues and disputes.

overnments and overnment 4rganisations:

Their ey roles are as follo's:

;egislator: 4ur elected representatives pass la's in parliaments 'hichprovide the legal frame'or for industrial relations.

/ederal and tate governments are employers of almost one third of,ustralian 'orers$ such as nurses and police officers.

esponsible economic manager.

,dministrator of government policies on industrial relations.

n larger enterprises$ linemanagers are also increasingly trained in general employment relationsissues$ including legal compliance in such areas as 4H$ eual employmentopportunity and 'orplace resolution of conflict.nduction and training

eparation

nfluences:

- ?hanging 'or 8atterns:


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The rapid gro'th of concentrating or outsourcing.

, preference of many businesses is to have a smaller permanent'orforce and casual employees as a fle"ible 'orforce to meetdemand at pea times.

/le"ible 'oring hours

- 8opulation hifts:

There is increased female participation in the 'orforce and early retirementfrom full time 'or is popular today.

- ?hanging ,ttitudes

The 'orforce today is 'ell educated and employees increasingly 'antchallenging 'or$ greater responsibility and anatomy.

;egal >nfluences: nfluences:

During times of increased economic gro'th goods and services aredemanded more and there for the demand for labour increases. tructuralchange in the economy has led to rapid gro'th in the employment sector.

lobalisation has increased the level of international competition. >n such anenvironment$ there is an increased need to attract and retain motivated andeffective staff$ and mae continuous improvements in

productivity$ costs$ innovation$ and uality and customer service. Training inthe management of multicultural 'orforces 'ith differing approaches topo'er$ authority and the role of groups individuals is increasing 'ith theglobalisation of business.

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4ther influences:

Technological change is a ma(or source of improvements in productivity$communication and competition bet'een firms. >t is causing the nature ofproduction and services to change$ resulting in the need for ongoing trainingprograms.

?ompetitors >f supply of labour is limited it can lead to poaching problems.etention of staff is improved through good management of the employmentrelationships$ and not (ust financial incentives.

Effective Employment Relations:

The role of 7mployment elations:

7mployees are often the only point of difference bet'een some firms.


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Team Briefings:

Fuality circles involve employees meeting voluntarily on a regular basis todiscuss$ analyse and resolve specific problems.

emi autonomous teams self managing 'or teams is 'here a group ofemployees assume a high level of responsibility for a (ob.

e'ards:

e'ards can either be intrinsic or e"trinsic.

>ntrinsic re'ards are those re'ards gained by doing the actual (ob itself sucha sense of achievement or satisfaction.

7"trinsic re'ards are those give or provided outside the (ob itself. They may

be monetary or non monetary for e"ample incentive payments or fle"ible 'orschedules.

Training and Development:

>nduction training is a foundation for all employment relations 'ith thatemployee. >t is done to introduce the employee 'ith the (ob$ co 'orers$ theorganisation and its culture.Training programs are planned and are an integral part of the businessstrategy. The steps involved are:

tep 1: access the needs of$ the individual$ the (ob and the business. tep 2: Determine the ob(ective of the training program for the

organisation$ (ob and individual.

tep 3: ?onsider internal and e"ternal influences.

tep !: Determine the content of training programs.

tep #: 7valuate the training program.

7ffective development plans ensure that all e"periences and talented staff areretained.

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/le"ible @oring Hours:

ocial changes have led to an increased need for fle"ible 'oring hours.

The first area is the need for fle"ible remuneration agreements 'hich allo'employees to be more motivated and to become lined financially to the

business6 success. 8ossible strategies are profit sharing and productivitysharing.

The second is the need for fle"ible 'oring hours and part time 'or 'hichallo's employee groups for e"ample students and mothers to 'or part time.Family friendly programs'hich include (ob sharing$ fle"ible 'oring hours

conditions$ family leave$ planning for spouses children 'ithin overseas careerpostings and assistance 'ith child care or provision of child care facilities arevitally important as social changes have taen place leading to often a motherand father 'oring.


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Legal Framework of Employment:

The 7mployment ?ontract:

,n employment contract is a legally binding$ formal agreement bet'eenemployers and employees. , contract is valid if:

The parties involved intend to create a legal relationship.

4ne party offers and another accepts the offer

Both parties obtain a benefit

Both parties have the capacity to contractI for e"ample they are oldenough to mae the contract.

?onsent in genuine and are not pressured.

The offer does not contravene any public interest.

The employment contract is governed by common la'$ statues and a'ards.

Common Law:

The common la' is la' developed by courts and tribunals. 9nlie statutes$ itis not made by parliamentI it is made by prior (udge6s decision. 9ndercommon la' both employers and employees have basic obligations in anyemployment relationship.

7mployer esponsibilities include the follo'ing:

8roviding 'or 7mployers are not allo'ed to stand do'n employeesis there is no 'or.

8ayment of income and e"penses 7mployers are reuired to pay theincome stipulated in the a'ard$ enterprise agreement or contract.


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Statutes:

,re la's passed in state and federal parliament$ for e"ample la's relating toemployment conditions$ 'age and salary determination and disputeresolution.

The statutory frame'or in ,ustralia today:

/air @or 200J *A@+-

The act reflects a government trying to incorporate principles of 'orplacefairness 'ith principles designed to consolidate 'orplace fle"ibility$productivity and efficiency. To the satisfaction of unions fair 'or ,ustraliareplaces 'or choices. The role of fair 'or ,ustralia 'ill be the po'er to varya'ards$ mae minimum 'ages$ approve agreements$ determine unfairdismissal claims and mae orders on Kgood faith6 bargaining and industrial

action. /air 'or ,ustralia provides a 'age based Ksafety net6 for employees.

Awards:

,re a means of a centralised 'age determination system and are oftenreplaced by enterprise agreements 'hich are agreements bet'een anindividual firm and its employees.

Agreements:

7nterprise agreements are made bet'een the employer and employees andoften better conditions are reached through the use of enterprise agreements.

Types of 7mployment ?ontract:

?asual 7mployment:

,re employees that are employed in irregular$ uncertain conditions and arenot entitled to sic leave or holiday leave.


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8ermanent ?ontracts:

- egular or continuing employees:

egular or continuing employees can be full time or part time. They cane"pect that they have a continuing contract of employment and are reuired to'or a specified number of hours per 'ee.

- /i"ed term employees:

,re employed on a contract for a specific period. They may be employed toreplace staff absent for a period of time or on a pro(ect basis.

>ssues ,rising from the gro'th of part time and casual 'or:/or many casual employment reflects a lac of full time employment$ ratherthan a long term preference for casual 'or. ?asuals often find it difficult to

access full time or permanent (obs$ particularly if they miss out on training anddevelopment opportunities available to full time staff.


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7mployer associations: 8rovide information and support to employers$assist in negotiations 'ith unions and represent employers in tribunals.

Dispute resolution procedures:

- rievance procedures: are useful in reducing the ris of an issuerapidly becoming a serious dispute. ince the introduction of enterprisebargaining and the unfair dismissal legislation introduced in the industrialrelation reform act 1JJ3.

- Aegotiation: is a method of resolving disputes 'hen discussionbet'een the parties result in compromise and a formal or informal agreementabout the dispute.

- ?onciliation: , conciliation commissioner hears both arguments andhelps a decision be made. The parties involved may ob(ect to a particularcommissioner and as that another be appointed.

- ,rbitration: Done 'hen conciliation fails$ a (udge or a panel of (udgeshear both arguments in a dispute in a more formal court lie setting. ,n order

is then handed do'n 'hich is legally binding.

- ntroduction of multisilling$ ne' training opportunities andcareer paths benefit individuals and society. 4H problems may be reduced.



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- ?osts: community bitterness may be directed at unions$ employees oremployers in industries 'here disputes affect the general public. Nerbal andphysical abuse can occur.

8olitical:

- Benefits: overnments can change their policies in response to'orplace conflict. Disputes can dra' public attention to the need to protect'orer entitlements

- ?osts: /reuent and disruptive conflict has an impact on governmentor opposition policies$ particularly at election times. Bitterness bet'een unionsand governments can lead to political conflict. 7"tended disputes can affecteconomic gro'th.

>nternational:

- Benefits: ?hanges to 'or practices follo'ing conflict can improve abusiness6s international competitiveness.

- ?osts: ;oss of e"port income and marets can occur after periods ofdisruption. The nations reputation for stability may be lost and overseascustomers or investors may turn else'here.

Ethical and Legal Aspects of Employment Relations Issues:

7thical and responsible behaviour:

7thical business practices are those that are socially responsible$ morallyright$ honourable and fair.

@oring conditions:

,n ethical employer can be e"pected to achieve safe and fair 'oringconditions that improve the 'elfare of employees. This is achieved through:

?ompliance 'ith social (ustice and industrial legislation.

8roviding a safe and healthy 'oring environment$ safe 'oringpractices and euipment$ appropriate supervision and training in safetyand health.

4ffering fle"ible 'oring hours and conditions that promote a balancebet'een 'or and life.

7stablishing a code of practice to sho' customers$ employees andsuppliers the organisation6s commitment to euity and ethical businesspractices.

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4ccupational health and afety *4H+:

4H la' covers employees$ employers and the self employed. The follo'ingare reuired:

7mployers must ensure the health and safety and 'elfare at 'or of allemployees by providing a safe system of 'or.

,ll employers must tae out 'orers compensation insurance.

7mployers must tae steps to ensure that people on site 'ho are notemployees are not e"posed to riss arising from 'or beingundertaen.

7mployees are reuired to tae reasonable care for the health andsafety of others$ to cooperate 'ith employers and comply 'ith 4H

reuirements.

7mployees 'ho engage in bullying or interfering 'ith machinery arebreaching their duties and could be fined.

Health and safety committees must be established at 'orplaces 'ithmore than 20 employees or if reuested by a ma(ority of employees.

@or cover inspectors may inspect the 'orplace$ collect informationand issue improvement and prohibition notices.

@or cover must be notified in the event of death or serious in(ury.

@orers ?ompensation:

8rovides a range of benefits to an employee suffering from an in(ury ordisease related to their 'or. >t is also provided to families of in(uredemployees 'hen in(ury disease 'as caused by or related to 'or.,ll employers must:

Tae out a policy 'ith a licensed insurer.

Geep time and 'age records$ a register of in(uries and completeaccident forms.

Aotify insurers of in(uries 'ithin ! hours.

8ass on compensation to the person entitled as soon as possible.

@or cover 'hich is run by the A@ government develops policies in each ofthese areas and supervises the 'orplace to ensure these policies are carriedout. The federal government *,??+ coordinates national efforts to prevent'orplace death$ in(ury and disease$ improve 'orplace compensationagreements and improve the rehabilitation of in(ured 'orers.

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@hen in(ured 'orers forgo their rights to 'orers compensation to purse anegligence claim against their employer in the common la' courts they aretaing a certain ris. ?ompensation is less certain that gained in statute la'.Ho'ever the benefit is that if 'on the payout could be larger than that ofstatute la'.

,nti Discrimination:

Discrimination occurs 'hen a policy or a practice disadvantages a personbecause of a personal characteristic that is irrelevant to the performance of'or. 7mployers must:

?omply 'ith legislation

,udit all policies and practices to ensure they do not discriminate.

9nder discrimination la's it is illegal to discriminate on the grounds of aperson6s:

e"$ colour or age.

8hysical or mental disability

eligious faith pr political opinion.

ocial origin


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The eual opportunity for 'omen in the 'orplace agency recommends thatbusinesses focus on si" areas to improve euity 'ithin their organisation:recruitment$ promotion and separation$ access to all occupations and areas$euitable total remuneration$ training and career development$ 'or and lifebalance$ se"ual harassment and 'oring relationships.

9nfair Dismissal:

9nfair dismissal is 'hen 'orer has been dismissed or threatened 'ithdismissal from their (ob and the 'orer believes that this action is un(ust.9nfair dismissal is supported by the industrial relations act. The A@industrial relations commission may determine 'hether:

There 'as a reason for the dismissal

There 'as an opportunity for the employee to (ustify or e"plain 'hythey should be reinstated or compensated

There 'as notification of unsatisfactory performance by the employee

The fair 'or act resolved the act of unfair dismissal. This is a state andfederal legislation.


Documents

Business Studies Employment Relations