Upload
hoangthien
View
218
Download
0
Embed Size (px)
Citation preview
Topic 3 – Employee Relations &
Employment Legislations
Higher Business Management
1
Learning Intentions / Success Criteria
Learning
Intentions
Employee
Relations &
Employment
Legislations
Success Criteria
Learners should be able to describe and explain the following aspects to do
with employee relations & employment legislations:
• the meaning of ‘employee relations’ and the impact of positive employee
relations
• industrial action that can occur due to negative employee relations
• the use of appraisal methods and the costs and benefits of these methods to
the organisation and the employee
• legal and company policies (grievance, discipline, dismissal, absenteeism,
downsizing, de-layering) and their impact on employee relations
• contemporary working practices and their impact on the employee
relations
• the role of external institutions e.g. Trade Unions, ACAS, CBI and their
impact on organisations and employees
• current employment legislation and its impact on employee relations e.g.
Health and Safety, Equalities Act.
2
Employee Relations
Employee relations refers
to the relationships that
exist between management
and employees in an
organisation.
3
Methods to Promote Positive
Employee Relations
• Appraisals
• Contemporary
working practices
• Negotiation
• External
institutions
4
Appraisals
• A two-way meeting between an
employee and another member of staff
to discuss the employee’s performance
and to set targets for the future.
• An appraisal is traditionally a formal
meeting between an employee and their
line manager; however, modern methods
include:
- peer appraisal
- 360-degree appraisal
- informal appraisal.
5
Advantages of Appraisals
• Positive feedback can be given which motivates the employee.
• Targets will be set for the employee which motivates them and gives
them a goal to work towards.
• Training needs can be identified which can motivate staff and
increase quality standards.
• Pay rises and bonuses can be awarded after a successful appraisal
which will motivate staff and ensure their work rate improves
further.
• Employees can be identified for promotion, which will increase their
loyalty to the organisation.
• Strong relationships are formed between managers and employees
as they are given the opportunity to have a professional discussion.
6
Disadvantages of Appraisals
• Negative feedback can be given which demotivates
employees.
• An employee might be set unrealistic targets which puts them
under pressure.
• Too many development needs may be identified which will
stress the employee.
• Some employees resent the appraisal system. They feel under
pressure and as if they are being checked up on.
• Appraisals are time consuming to carry out which will result in
lost work time during the time they are being conducted.
7
Informal Appraisal
• An informal appraisal
takes place whenever the
line manager feels it is
necessary.
• This is just a quick chat,
while working or during a
coffee break, perhaps
highlighting something an
employee is doing well or
to give advice on how to
improve.
8
Advantages/Disadvantages of Informal
Appraisals
Advantages
• Feedback is current to the
employee’s tasks and actions,
so it’s more likely to affect
change than waiting until a
formal review.
• Employees are more relaxed
than in a formal appraisal so
are more receptive to advice.
Disadvantages
• Informal
appraisals can
become too
informal and
advice can fail to
be taken on board.
• No record of
feedback or
targets is kept.
9
Peer Appraisal
A peer appraisal is when
the review interviews is
carried out by a colleague
at the same level in the
organisation as the
employee.
10
Advantages/Disadvantages of Peer
Appraisals
Advantages
• Employees may relax
more and react better to a
review given by a
colleague.
• Relationships with line
managers are not harmed
through judgements or
weaknesses being
highlighted.
Disadvantages
• Personal relationships
between peers could
result in the appraisal
being ineffective.
• Bias could wrongly
highlight an employee
for a pay rise or
promotion.
11
360-degree Appraisal
The most complete method
is the 360-degree appraisal.
In this scenario, whoever
conducts the appraisal, such
as an HR manager, peer or
line manager, interviews
fellow employees,
supervisors and subordinates
about the performance of the
employee.
12
Advantages/Disadvantages of 360-
degree Appraisals
Advantages
• A complete profile of
the employee is gained.
• Areas of subjectively,
such as character and
leadership skills are
measured.
Disadvantages
• Some employees may
find it difficult to be
critical of their
colleagues.
• Time constraints can
limit the quality of
responses from so many
people in the
organisation.
13
Contemporary Working Practices
Modern working practices have evolved due to the following factors:
• More woman are taking up managerial and professional roles so
organisations need to be flexible to work around family
commitments.
• There are been a dramatic increase in tertiary and quaternary
employment which do not require the same 9-5 hours, in a set place
of work, in the same way as factory work in the secondary sector
requires.
• There has been an increase in self-employment due to government
training schemes and incentives for entrepreneurs.
As a result of these changes, employers have had to introduce a range
of flexible working practices.
14
Advantages of Flexible Working
Practices
• Greater choice and flexibility to suit changing needs and lifestyle, e.g. it makes it easier to combine work and family life especially for single parents or carers.
• Part-time workers tend to have lower stress levels as they have some time to ‘recharge’ themselves on days off.
• Freedom to choose when and where to work.
• Reduction in travel time and costs.
15
Disadvantages of Flexible Working
Practices • There may be fewer opportunities for staff development and
training.
• There can be feelings of isolation when working from home.
• Hot desking may result in depersonalisation of space, leading
to a feeling of not belonging to the organisation.
• It can be more difficult to develop new relationships.
• Difficult to balance work and home commitments, need for
discipline to work working hours.
• Question of security of job if contracts are increasingly of a
temporary or fixed-term nature – implications for e.g.
pensions, ability to get a mortgage, etc.
16
Negotiation
• Employees and management often need to come to an
agreement on very serious changes, such as changes to pay
and working conditions.
• In this situation, employees benefit from using collective
bargaining.
• This means to speak as a group and not as a number of
individuals, which gives employees a strong voice when
negotiating.
• For large employee groups, this can be done through a trade
union.
17
External Institutions
Often, employees need assistance from external
institutions in order to come to agreements with
their employers, especially if disputes occur.
• Trade unions
• ACAS (Advisory, Conciliation and Arbitration
Service)
• CBI (The Confederation of British Industry).
18
Trade Unions
• An organisation that represents a group of
employees.
• Members benefit from the collective
bargaining power of the trade union, the
experience of the union leaders who represent
them and the legal powers the union has
should matters need to be taken to court.
19
ACAS (Advisory, Conciliation and
Arbitration Service)
• When a trade union cannot come to an
agreement with an employer on behalf of its
members, the organisation can involve ACAS.
• This is a government-funded organisation
which attempts to solve disputes in the
workplace to stop them going to court.
20
CBI (The Confederation of British
Industry)
• The CBI is a large and powerful business group that represents
many employers.
• While employees have trade unions to go to for assistance,
employers have the CBI looking out for them.
• The CBI represents all major industries and can use its size
and voice to campaign (known as ‘lobbying’) for government
influence that will benefit their members, such as campaigning
for more investment in ‘green’ infrastructure or subsidising
broadband developments.
21
Grievances
• Grievances are concerns, problems or
complaints raised by an employee.
• Examples could include working
conditions, disputes between staff and
changes being introduced.
• The employee should raise these
concerns with their manager.
• If a worker has a grievance against their
manager, they should contact their HR
Department, their trade union or ACAS.
22
Discipline
• Organisations should have company policies (rules)
regarding employee conduct and set procedures in
place to deal with employees who fail to follow them.
• These rules could cover: poor attendance, conduct
and personal use of telephones and the Internet.
• For minor offences, employees could escalate
through these sanctions until the sanctions are
exhausted; however, serious offences, such as theft
from the organisation, could lead to immediate
dismissal.
23
Dismissal
• A dismissal is when an
employer terminates the
employee’s contract.
• Dismissal should be the last in
terms of sanctions for breaking
company policy and should
only be used after formal
disciplinary procedures have
taken place.
24
Impact of Positive Employee Relations
• Employees will have their chance to discuss changes or
grievances so will feel happier and more secure in the workplace.
• Disputes are less likely to raise as the workers will have been
consulted and understand why changes are necessary.
• The workplace will be committed to the organisation and will
help ensure it meets its objectives.
• It will be easier to introduce change within the organisation as
staff will be more flexible with suggestions from management.
• The organisation will gain a good image for treating its
employees correctly and maintaining good employee relations.
Customers, investors and potential employees might be attracted
to the organisation.
25
Impact of Negative Employee
Relations
If employee relations are poor, an organisation can
experience:
• poorer employee performance due to low morale
• increased staff turnover as employees leave for a
better work environment
• increased staff absenteeism
• less co-operation of staff during periods of change
• an increase in grievances and discipline problems
• industrial action in extreme cases.
26
Industrial Action
Employees who are unhappy with their
working conditions or terms of
employment, and where discussions have
not reached an agreement, have the option
of undertaking industrial action.
27
Types of Industrial Action taken by
Employees Strike Employees refuse to enter the workplace. They might
have a picket line or demonstration outside the business
to raise awareness of the issues they are facing.
Work to rule Employees only carry out the tasks and duties written in
their job description and no other tasks are performed.
Sit in Employees refuse to work and ‘sit in’ the workplace.
Go slow Employees work slower than normal in order to reduce
productivity.
Overtime ban No hours above the minimum required (as per the
employee’s contract are worked.
Boycott Employees refuse to carry out a new task or to use a
new piece of machinery.
Demonstration A gathering of people raising awareness of a particular
issue. 28
Types of Industrial Action taken by
Employers
Overtime
withdrawal
Management refuses to give employees
extra hours.
Lock out Management locks employees out of a
factory or workplace.
Close A factory or branch is closed completely.
29
Employment Legislations
Below are legislations that deals with the rights
of employees and the responsibilities of
employers:
• The Equality Act 2010
• Employment Rights Act 1996
• National Minimum Wage Act 1998
• Health and Safety at Work Act 1974
30
The Equality Act 2010
• The Equality Act brings together a number of different aspects of
equality under one piece of legislation.
• The Act states that people must not be discriminated against on the
basis of ‘protected characteristics’.
• These protected characteristics are race, gender, sexual orientation,
age, disability, religion, pregnancy and maternity.
• This applies not just to employees of a business, but also to the
people who purchase goods and services.
• Managers of a business need to be aware of this legislation because
they will need to take certain actions to ensure the business remains
within the law.
31
Employment Rights Act 1996
An employee must be given a written contract of
employment particulars within two months of
starting, this contract will state:
• Rate of pay, hours, holiday entitlement, etc.
• Type of contract, e.g.
Permanent: employment lasts until either party
gives the required notice of termination.
Temporary: is usually for a set period of time
to fill a vacancy, such as a maternity leave.
Fixed term: a fixed and definite period that the
contract will run for, e.g. a seasonal contract,
such as a summer job.
Employees have a
right to:
• an itemised pay
slip
• maternity and
paternity leave
• flexible
working
• redundancy
payments if
they are made
redundant.
32
National Minimum Wage Act 1998
This act sets out the lowest amount of
pay a person can receive per hour. The
current minimum wage (As of
October 2014) is:
• This act makes it illegal to pay an
employee below a certain amount
per hour.
• Employees must meet the age
criteria to qualify for each
minimum rate and can take action
if they are not paid the correct
rate.
• Employers must calculate work-
related costs, such as renting tools
or cleaning uniforms, and ensure
employees are paid above the
minimum wage after these costs
are deducted.
33
Age Rate
21 and over £6.50 per hour
18 to 20 £5.13 per hour
Under 18 £3.79 per hour
Apprentice £2.73 per hour
Health and Safety at Work Act 1974
It is the duty of every employer to ensure the
health, safety and welfare at work of all
employees, for example:
• The provision and maintenance of machinery
and equipment so they are safe and without
risks to health.
• The provision of training and instruction on
safety issues, particularly regarding dangerous
chemicals and equipment.
• Employers should prepare a written statement
of their general health and safety policy and
ensure employees are aware of it., including
any updates.
Employees’ duties
include regarding
care of their own
and other
employees’ health
and safety, such as
reporting of
incidences or
accidents, for
example.
34