business unit 3 aos 2b

Performance management

 is the process used to improve business and employee performance to meet business objectives.

employee observation

is where employee performance is witnessed, then assessed, so feedback can be provided.

strengths of employee observation

Able to gain multiple insights into an employee’s performance. A range of perspectives is achieved by having multiple staff assess an employee’s performance

provides a realistic view of how employees perform their tasks in a natural setting which allows for skill gaps or areas to improve in a business more effectively

employee observation weaknesses

employees may feel stressed or anxious when they know they are being observed, which could lead to performance issues or prevent them from performing at their best

If the employee knows they are being observed, they may alter their behaviour, leading to inconsistent observations that may not reflect their typical performance

appraisals

is a process that evaluates how well an employee has performed in their job over a specified period of time, provides feedback and helps develop new objectives for the individual.

performance appraisal steps

• Review performance against set standards.

• Discuss strengths and improvement areas

• Set future goals and development needs.

• Provide formal feedback

strengths of performance appraisals

Employees receive both positive and negative feedback, providing guidance on areas to improve and encouragement on the positive behaviours already established.

Provides information to managers on employee performance to help make business decisions e.g. pay increases, promotions or dismissals.

weaknesses performance appraisals

Can be time consuming and demand a lot of resources.

Feedback can be subjective (needs to be based on work performance, and not subject to non-work related issues)

Can be stressful and overwhelming for employees

employee self-evaluation

a process whereby employees carry out self-assessment based on a set of agreed criteria

strengths employee self-evaluation

Allows employees the opportunity to self-reflect on their work, encouraging self-development and improved performance.

Provides managers an insight into how the employee views their performance.

Allows the managers to understand the strengths and weaknesses of the employee.

weaknesses of self-evaluation

Self-evaluation may not be a true reflection of the employees performance (some may overestimate or underestimate their abilities)

It can be challenging for an employee to recount all of their achievements.

management by objectives def

A process where managers and employees collaboratively set individual employee goals that contribute to the achievement of wider business objectives.

management by objectives steps (I am the fav employee)

1. Management identify business objectives

2. Collaborate with employees to establish personal goals which align with the business objectives.

3. Set time frame

4. Feedback should be continuous whilst the goal is being undertaken

5. Evaluation to take place after completion of the goal, and feedback provided

management by objectives strengths

Employees understand what they need to do and how they will be assessed.

Employee and business objectives are aligned.

Makes the employee more aware of the businesses objectives and their role in contributing to the achievement of these.

management by objectives weaknesses

It can be time consuming to set objectives with each employee.

Some managers may lack skills in setting goals with employees.

Failure to meet objectives may become demoralising for some employees, resulting in a lack of motivation.

human resource manager

The manager involved in maintaining the relationship between the business and the employee

role of HR manager to achieve business objectives

motivate employees

train them

monitor their performance

provide feedback and support employees

awards

Awards are legally enforceable minimum wages and conditions applying to specific industries that are established by the Fair Work Commission.

agreements

are collective agreements between the employer and a union or between the employer and a majority of employees that sets out the wages and conditions at a workplace.

similarities between awards and agreements

both approaches must comply with the NES
both involve the FWC- awards are set by the FWC and the FWC has to approve agreements

differences between awards and agreements

awards are established by the FWC whereas agreements are negotiated

Awards cover all employees in an industry whereas Agreements cover a workplace.

Awards set minimum wages/conditions whereas Agreements will often be above those in an Award.

Adv of awards

cost effective

less time lost to negotiations

safety net for employees

Disadv of awards

Workers may not be able to receive wage increases due to their increases in productivity. Thus decreasing the incentive for workers to increase productivity

Business may find it difficult to attract and retain highly talented staff as the pay isn’t performance related.

adv of agreements

Increased ability to attract and retain quality staff by offering competitive wages/conditions.

increases the flexibility for both employers and employees to enter into workplace arrangements relevant and suitable to them.

negotiation process requires employers and employees to engage in meetings and conversations. Therefore, positive relationships could have been developed improving corporate culture

disadv of agreements

There is potential for conflict and disputes over wages and working conditions occurring at workplaces between managers and employees.

Maybe very time consuming for HR managers

Results in increased expenses as employees must be provided with employment conditions above the industry award, therefore contributing to higher labour costs

hrm role in the workplace

negotiating employment agreement with employees on behalf of the employer

Implementing and managing the conditions outlined in agreements

Assisting in resolving workplace disputes to maintain a productive workplace.

employees

The people working in a business in return for pay. They are expected to contribute through their work efforts to the achievement of business objectives.

employee’s role in the workplace

negotiating individual employment contracts

providing input on desired wages and working conditions in agreements

voting to approve or reject enterprise agreements

unions for the employee

Organisations formed to protect and improve the wages, working conditions and rights of employees in a specific industry.

unions for the employee role in the workplace

Supporting members during workplace disputes or conflicts.

Negotiating enterprise agreements on behalf of union members.

Representing workers in hearings at the Fair Work Commission about awards or workplace issues.

employer associations

Groups of employers providing support to specific employer bodies.

employer association’s role in the workplace

Representing employers in award hearings and workplace matters.

Advising members about changes to workplace laws.

Assisting members when negotiating enterprise agreements.

Representing employer interests at Fair Work Commission hearings.

fair work commission (FWC)

Australia's national workplace relations tribunal. The FWC sets minimum conditions for wages and working conditions through the National Employment Standards. It also establishes industry awards and approves enterprise agreements.

roles of the FWC in the workplace

Approving enterprise agreements and ensuring employees are better off overall compared to the relevant award and creating and maintaining modern awards across industries

Resolving workplace disputes through mediation or arbitration and hearing and deciding unfair dismissal claims

Responsible for determining whether industrial action, such as a strike, is legal (protected) or illegal (unprotected), ensuring that any actions taken by employees follow legal guidelines.

termination

the end of the working relationship between employers and employees, it can be voluntary or involuntary.

resignation- voluntary termination

•The employee decides to leave the business. The business should arrange for an exit interview – which provides information about reasons for departure. This can help businesses to make changes to reduce staff turnover in the future

resignation entitilements and transition

entitlements- Employees are entitled to accrued benefits such as holiday pay, long service leave and wages owing

transition-Unlikely employee will require assistance

retirement- voluntary resignation

Employee leaves business not planning to re-join workforce

retirement entitlements and transition

entitlements- Employees are entitled to accrued benefits such as holiday pay, long service leave and wages owing

transition- significant change in their lives so business can assist by offering services such as counselling, investment advice and lifestyle planning.

dismissal- involuntary termination

Employee terminated due to unacceptable behaviour or performance.

summary dismissal

employee dismissed without notice or warning for serious misconduct

on notice dismissal

underperforming employee has been given warning to improve performance but doesn’t improve.

dismissal entitlements and transition

entitlements- Employees are entitled to accrued benefits such as holiday pay, long service leave and wages owing\

transition- •Career transitioning services offered would demonstrate CSR.

redundancy- voluntary/involuntary termination

When an employee’s job no longer exists – the business doesn’t need the skills of that employee. May occur because of technology, poor financial performance or business restructure

redundancy entitlements and transition

entitlements- •Employees are entitled to accrued benefits such as holiday pay, long service leave and wages owing

Must receive a redundancy package based on how many years they have worked at the business – the specific amounts will be in the workplace agreement.

transition- career counselling, assistance in writing resumes

mediation- dispute resolutions

Mediation is a dispute resolution method where an independent third party will aim to facilitate the conversation between the two disputing parties.

the mediator (the person facilitating) only facilitates the conversation

adv of mediation

the two disputing parties come to their own agreement, making it more likely that both parties will be happy with the outcome

most cost effective dispute resolution

relationships can be maintained as the disputing parties work together on a solution

disadv mediation

there is no guarantee that a resolution will be achieved, which means that the dispute can be ongoing.