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Part Three: Management and Related Policy Development of Employee Relations

HUMAN RESOURCES MANAGEMENT. Part Three: Management and Related Policy Development of Employee Relations. Chapters 4.6 & 4.7. Key Criteria. relationship to business objectives and business strategy the similarities and differences between centralised and decentralised approaches

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Part Three: Management and Related Policy Development of Employee Relations

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  1. HUMAN RESOURCES MANAGEMENT Part Three: Management and Related Policy Development of Employee Relations Chapters 4.6 & 4.7

  2. Key Criteria • relationship to business objectives and business strategy • the similarities and differences between centralised and decentralised approaches • industry wide awards, collective agreements within an individual organisation and individual contracts • the role of human resource managers in employee relations under a decentralised approach • management styles and skills in employee relations, including their application to the resolution of conflict

  3. Introduction This topic focuses on: • the relationship between employees and the employer (LSO). • the role that HR plays in this relationship including a reference to management styles and skills • investigates the recent changes in Workplace Relations in Australia – including looking at past and present industrial relations systems

  4. Function of HR A function is a specialised area of responsibility or activity e.g. operations, finance, marketing or human resources. The role of the HR function in employee relations covers two main areas: • Resolution or more accurately facilitation (help with) of conflict resolution between employee and employers • Knowledge and understanding of changes to Workplace Relations Legislation.

  5. Relationship to objectives • One of the main objectives of most organisations is productivity (maximum output from inputs). • One example of the inputs used in production is ‘staff’. • Good employee relations ensure all members of the organisation are working toward the goals, objectives and strategic plans of the organisation. • By ensuring that conflicts between employees and employers are resolved, there is a better chance of productivity, objectives etc etc

  6. Australia Workplace Relations Read page 256 and answer the following questions: • What are employee relations? What other terms can be used to describe this area of management? • What is the key reason for conflict between employees and employers? • Outline the needs/wants of the employer and how they differ from those of the employees. • Why are productivity gains seen as a common goal for both employer and employee? • What two roles can you see for the HR function in the area of employee relations?

  7. Australian Workplace Relations Historical Perspective • The topic/area of workplace relations will be examined with a “transition” focus. Students will be asked to discuss the changes in the landscape of Australia’s industrial relations. • The key ‘change’ is from a centralised system of workplace or industrial relations to a decentralised system.

  8. Australian Workplace Relations Historical Perspective • Prior to 1991 all Australian workers were covered by Awards – documents which set out pay and conditions for all employees in particular industries. • Unions and LSO’s would negotiate settlement of any dispute over these conditions and if no resolution could be reached a third party would be called in to make a decision. • The process was known as arbitration and the third party was the Industrial Relations Commission (IRC) or the Court of Arbitration. It had the advantages of fairness, accuracy and consistency. • This was known as a CENTRALISED industrial relations system.

  9. Australian Workplace Relations Historical Perspective • A process known as DE-CENTRALISATION began in 1991 with a number of significant events taking place in the years following: • 1991 – Changes to Industrial Relations laws allowed workers at individual companies to negotiate their own wage agreements. • Workplace Relations Act 1996 (Cmth) • Reduction of awards • Introduction of AWA’s • Reduction in the role of the central body for dispute settlement • Restriction of unions • Workplace Relations Act (amended 2006) known as Work Choices • Remove awards completely • Replacement of EBA (enterprise workplace) to AWA’s (individual) • Removed protection of minimum standards • Cuts/changes to unfair dismissal rules • Further restrictions on Trade Unions

  10. Australian Workplace Relations • Centralised:Resolving disputes by the use of a central or controlling body (i.e. Industrial Relations Commissions or Tribunals), Industry based awards • Decentralised:Allowing employers, employees and unions to negotiate own agreements relating to the individual organisation, provided an increase in productivity could be demonstrated, EBA’s, individual contracts, limited 3rd party involvement in dispute settle ment • Australia has moved from being very centralised to a more decentralised system. However, the recent introduction of Fair Work Australia and the National Employment Standards has seen a small shift toward a more centralised system.

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