| The Performance Management Strategies | Performance Appraisals
Management By Objectives
Employee Self-Evaluation
Employee Observation |
| Performance Appraisals | This is where an employee's performance is measured and receives feedback. New objectives are also developed for the employee
Important for management to gain information as it can be used for decisions such as promotions, transfers, and terminations.
Facilitates communication.
Feedback can help employees to improve their performance
Time-consuming
Stressful and somewhat uncomfortable for both managers and employees. |
| Management By Objectives | management by objectives a process by which management and employees agree on a set of goals for each employee, with these goals all contributing to the objectives of the business as a whole
employees will be more familiar with the organization's objectives
More likely to work productively and fulfill their responsibilities. Both manager and employee know what's expected from them, reducing ambiguity and confusion.
Costly and time-consuming process.
The meetings and reports required can add to the responsibilities and burden of both management and employe |
| Employee Self-Evaluation | A form of self-assessment where employees evaluate their own performance against set objectives – analyzing their own strengths and weaknesses.
Provides the opportunity to gain insight into how employees perceive their performance.
Can highlight the need for training.
Employees can overstate their own performance.
Management may need to take some responsibility for monitoring performance and make efforts to correct performance. |
| Employee Observation | Once objectives have been set the manager evaluates an employee’s performance by watching how they perform in their role and providing feedback to the employee.
Useful in evaluating skills such as leadership, teamwork and interpersonal abilities.
Identifies strengths and weaknesses which can provide a comprehensive picture of the employees
performance
Damaging if any one of the participants has a personal vendetta against the employee
Expensive and time consuming |
| Voluntary Methods of termination | Resignation
Retirement |
| resignation | This is where an employee decides to leave the organization.
The employee must give a period of notice to the employer. An employer can withhold money if the employee does not give a minimum require notice.
Entitlements
Employees may be entitled to long service leave or annual leave that they have accrued over time. |
| Retirement | This is where the employee decides to leave the organisation and the workforce. It is important that there has been a strong succession plan in place so that the organisation can fill the role(s) of those retiring.
Entitlements
Upon retirement, employees are entitled to their superannuation package that has accrued over their time of employment - this is usually a minimum of 9.5% (can access once they are 65). Some are also entitled to a pension (government payment) |
| involuntary Methods of termination | Dismissal
Redundancy
Retrenchment |
| Dismissal | This is where the employee has been fired and can happen for a variety of reasons. It could be constant lack of performance or something more serious such as theft or sexual harassment.
There are two types of dismissal, summary dismissal and dismissal on notice:
Summary Dismissal: An employer can dismiss an employee without notice or warning when the employer believes on reasonable grounds that the employee's conduct is sufficiently serious to justify immediate dismissal.
Dismissal on Notice: If an employee is underperforming or not adhering to policies they can be dismissed on notice. |
| redundancy | This is where a job is no longer needed in the organization.
Employees are entitled to a redundancy payment which is set out in their agreement. Employees must also be given a period of notice, as well as time off work during the period to look for other employment. |
| Retrenchment | Similar to redundancy but slightly different in that the employee is dismissed because there is not enough work to justify paying them, can be caused due to an increased focus on the use of technology. |
| Internal Environment | The Employees
The Human Resource Manager |
| external environment | Trade Unions
Employer Associations
Fair Work Commission (FWC) |
| Fair Work Commission (FWC) | Fair Work Commission (FWC)
FWC approves enterprise agreements, resolves disputes, sets minimum wage, promotes compliance through education, provides information and assistance to employees and employers. |
| Trade Unions | Organizations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions.
Trade unions have a direct involvement in workplace relations (they represent employees in negotiations) |
| Employer Associations | Created as a response to employees joining unions.
Represent the employers during negotiations involving working conditions and pay.
Today they take on a more supportive role – informing employers of legislative changes made to workplace relations |
| The Employees | They work for the business and work towards the achievement of objectives.
Their Role in Workplace Relations: They are involved in the negotiation of new agreements (through the union), vote on new agreements, take industrial action if required (such as 'walking off the job') |
| The Human Resource Manager | Responsible for managing the relationship between employees and the business (employer).
They represent the employer in negotiations of new wage agreement, participate in resolution of disputes, implement agreements, liaise with employer associations, unions and the Fair Work Commission |
| Industry Wide Awards/Modern Awards | These set out legally enforceable minimum conditions of employment, such as pay and length of shifts for employees in a certain industry, such as nursing.
key matters included in these awards are: types of employment (full-time, part-time, casual), overtime rates, penalty rates, superannuation arrangements, details of leave
both are finalized by fair work commissions
both set out the basic pay and working condition= similarities with enterprise
Difference
who it applies= for an industry(for modern) a specific workplace(enterprise)
system-= centralised(for modern) decentralised(enterprise)
advantages = less costly and less time spent
disadvantages=the business may not attract the best candidates and cannot be customized to the needs of the business |
| Award | Award a legally binding document determined by the Fair Work Commission that sets out minimum wages and conditions for whole industries or occupations |
| Enterprise Bargaining Agreement | These involve direct negotiation by groups of employees (or their representative, the union) and their employer (or their representative, employer association) to determine wages and conditions.
Advantages=more flexible and attracts best employee
Disadvantages= its expensive to make a new agreement and takes time to negotiation |
| Individual Contracts | This is an agreement negotiated between an employer and ONE employee regarding their conditions of employment. |
| Grievance Procedure: | A formalised set of steps established by organisations internally to handle disputes about wages, conditions and other conflicts. It may involve an employee first directly seeing their supervisor about it, who escalates to middle management, and if it is not resolved they may take it to the top management e.g. Human Resource Manager who then may convene a grievance committee to investigate. If still unresolved it will need to be resolved by external methods below. |
| Mediation | More formal. If negotiation has broken down, mediation may be more appropriate. This is where an independent third party helps facilitate the negotiation between the two parties. The mediator does not have a say in the final conclusion, but simply facilitates positive discussion between parties. |
| Arbitration: | If everything else has broken down, arbitration may be the final course of action. This is where both parties put their case forward and an arbitrator or court determines how the dispute will be resolved. |
