Employee Engagement and Performance Study

This assignment involves analyzing the relationship between employee engagement, HR practices, and organizational outcomes. It requires studying various research papers and articles to identify key determinants of employee engagement, its impact on performance, and how it is influenced by HRM practices. The study also examines the role of trust and line manager behavior in shaping employee engagement.

Employment Relations for
Organisational Effectiveness

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Main features that distinguish enterprise agreements from modern awards..........................2
Process of enterprise bargaining entail...................................................................................4
Legal obligations and rights need to be observed by employers and employees when
negotiating an enterprise agreement.......................................................................................7
Advantages and disadvantages are said to be associated with enterprise agreements...........8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Employment relations plays vital role for every single organisation. If staff members
work with full of efficiency it may aid companies in attaining all the desired goals and objectives
(Guest, 2011). It has been located that if relationship in between employer and employees stays
healthy at workplace, suggestions can be given or taken from each other which may help firm in
gaining competitive advantages. Fair Work Act was developed by Australian country in the year
of 2009. Under this law, government tried to improve employment relations through structuring
a proper agreement that can be done in between management of a company and employees. In
the year of 2017, regulative government of Australia did around 14,497 federal agreements with
the help of Fair Work Act, 2009. Firm which had been chosen under this essay assignment i.e.
Woolworths Supermarkets which was found in the year of 1924. A$42.132 billion as revenue
was made by this organisation in 2015 and have almost 120,000 staff members that are
delivering their services to consumers of this company. Assignment will include main features of
enterprise agreement, process of organisational negotiation entail, some key legislations and
lastly it will show advantages and disadvantages of enterprise agreements.
MAIN BODY
Effectiveness can be seen within an organisation if both employer and employees are
rapidly giving each other suggestions, doing healthy conversation and maintaining proper
relation and with the help of this company can enhance their reputation, profitability,
productivity and so on. Woolworths Supermarkets is an Australian brand and deals in
supermarket and grocery sector it has ample number of stores in all over Australia and this chain
was owned by one of biggest organisation of this country named as Woolworths Limited.
Thousands of stores are present at the moment in all over nation and deals mostly in trading
almost every single grocery item like vegetables, fruit, meat, packaged foods and many more.
Employment relations is basically indulge with some important principles that may aid
both labour and administration in maintaining a healthy relation. According to Brewster, (2017),
if relationship stays effective among staff members and supervisors it may be possible that firm
do go through all the risk factors in an easy manner where they can implement their business
operations that may help them in reducing losses in much effective and efficient way. In this
context, Australian government took some initiatives in order to bettering the working
environment where employees and management do not face any sort of conflict arising situation.
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Initiatives were like bringing in contracts, policies and many more. Some actions have been
taken by companies where they build HR department with many strategies, along with made
policies and many more. It has been critically analysed that author's argument was right in some
context and in some it was not. Positively, if agreements stays there among staff members and
management then there will be no issues regarding wages, time period of staying in the office,
performance and many more. On the other hand, agreements may bound both employees and
administration. For an example: if a contract is being done in between and individual &
employer for one year where organisation cannot terminate him/her for this time of period if
he/she is not up to the mark which has been set by company.
Main features that distinguish enterprise agreements from modern awards
As per given by Welch, (2012), Australian firms have introduced modern awards related
to minimum employment standards that comes under National Employment Standards (NES). It
has been analysed that almost every single organisation in Australia contains modern award, that
brings all staff members and employer together in that section. On the other hand, as Guest and
Conway, (2011), proposed that enterprise agreements is being stated as a contract among
employees and management which is enclosed with various norms and conditions that needs to
be followed by staff members while working at workstation in order to better serve to customers.
It has been critically analysed that most of firms in all over Australia does follows enterprise
agreements as fixation of rates and other things are there which stops an individual to a level.
Salary is being paid to the person with same rates which was discussed while doing an
agreement. Compromise do not takes place in this scenario whether an organisation is going
through losses or profit, an individual will get the salary which was been discussed. If a company
do not pays salary or do not follow norms that are in legal contract then a person can put charges
on firm. This statement which was given by the author can be considered in both positive and
negative manner because most of firms does planning before implementing new tools and
techniques at workplace which reduces all the risk factors. This scenario may lead organisation
in attaining all the goals and objectives. With the help of this, company can directly deliver
products and services to consumers in much effective and in appropriate sense. It has been
analysed that company adopts enterprise agreements as pay rate stays really very low while
comparing with modern award.
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According to Anitha, (2014), law contracts of employment which has been created by
government of Australia in order to reduce all the margins where conflicts may get arose. Almost
every single organisation of Australia and in other countries mostly recruits candidates through
doing a contract. Under this, mutual understanding in between an individual and administration
plays an important role it is very much required for them to deal in different sections like wages
and other policies and come to a conclusion so that to healthy relationship can be maintained at
workstation. A contract is being considered as totally different from modern awards as it delivers
empowerment to many things like wages and hours of work, rosters, breaks, allowances, penalty
rates, overtime and so on. On the other hand, Woolworths Supermarkets keeps on making
modifications in their contracts that they have with employees to improve retention along with
profitability of organisation through giving flexibility to staff members at workstation. But it has
been analysed that an agreement can only be changed if both parties do agree with each other. A
written agreement may not deliver minimum rewards that stays less than organisations which
taken in reward in order to better serve to workers of company. All of these things has been
given in Fair Work Act 2009 which was made by Australian government.
As given by Welch, (2011), Modern awards can be applicable or staff members of firms
that are affiliated and licensed by government of Australia. Apart from this, this sort of
appliances stays connected to all the companies that works on basis of making profit. An
approach named as Award Finder Tool can be used by firms in order to locate the best sort of
awarding system that they can adopt at workstation. On the other hand, according to the authors
point of view it has been analysed that people who are designated at a high post or do work in
some special cases may not get covered under this sort of modern awarding system. If
Woolworths Supermarkets adopts enterprise agreements it may be possible that company may
not become able to follow modern award systems.
Apart from this, as given by Donaghey and et. al., (2011) Unitarist, Pluralist, and Radical
Theory are some main hypothesis of employment relations that can be used by Woolworths
Supermarkets in much effective and efficient manner in order to improve retention ratio of
employees at workplace and along with profitability and productivity ratio of firm. It is very
much required for organisation to keep on considering all these approaches at workplace and
adopt most relevant one which may aid organisation in hitting its targets. Industrial relations are
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much complex, have rapid changing nature and may or may not improve retention power of
employees.
According to Innocenti, Pilati and Peluso, (2011), Unitarist Theory is based on
dependency of employers and employees that may aid organisations in many context. In order to
improve employment relations at workplace this sort of approach is being considered as the best
one because this hypothesis do not support any union and in context to this, Woolworths
Supermarkets believes in integrated, friendly and collaborative actions and activities. With the
help of this sort of hypothesis, loyalty of employees can be improvised where they can give
suggestions to each other along with share a strong bond as well both at the same time.
According to this theory, Woolworths Supermarkets can improve its both profitability and
productivity right on time in much effective and in efficient manner.
As given by the same author as above Pluralist theory is being considered as the second
approach that can be used by representatives (management) and try to consider trade unions as
well which may and them in reinforcing alls the values that is related to bargaining. Accordingly
this sort of approach is being considered as the best approach for Woolworths Supermarkets as
management of this firm believes in co-ordinating, pass on information and carry forward things
and many more but do not go for relation or economic processes.
It has been critically analysed that there are many advantages of enterprise agreements
may aid both employers and employees in different manner and it also helps in bargaining
representatives. Apart from this, working together with proper agreements among staff members
and officers may aid firm in gaining competitive advantages. Along with this, motivation can
also be given to staff members on a regular basis that may aid Woolworths Supermarkets in
hitting their targets in much effective and in efficient manner.
Process of enterprise bargaining entail
In today's world, enterprise bargaining can be reasoned as a procedure which clearly
describes and take in consideration by a company where negotiation takes place among employer
and employees. This can be done through many ways and HR manager of an organisation mostly
makes plans and strategies that may aid them in making proper agreement which contains all the
policies that are being made by Australian government. According to current trends and along
with their negotiation representatives HR management of Woolworths Supermarkets can develop
a proper agreement.
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As given by Malik, (2011), enterprise bargaining is earning capacity of an individual is
being negotiated and this mostly being covered in all companies of Australia. Once agreement
gets signed by an individual then this process can be understood as an Enterprise Bargaining
Agreement (EBA). On the other hand, collective concur, benefit employers, because they try to
make their employees happy and try to deliver them flexibility while working at workstation.
Some of flexibility like average working hours, good pay scale on per hour basis and many more.
Along with this, corporate agreements aid company in different manners to a company. An
individual may not face higher pay, bonuses, additional leave and enhanced entitlements under
this sort of process. More benefits can be given to individuals of company at Woolworths
Supermarkets on a regular basis through adopting reward system approach at workstation. Some
of other things under this approach have been mentioned are: collective agreements, pre-reform
certified agreements, preserved individual and collective state agreements, Individual
Transitional Employment Agreements and Australian Workplace Agreements (AWA).
A venture understanding is between at least one national framework managers and their
workers, as indicated in the assention. Endeavor understandings are consulted by the gatherings
through aggregate dealing in compliance with common decency, basically at the venture level.
Under the Fair Work Act 2009, an endeavor can mean any sort of business, action, venture or
undertaking. Under the Fair Work Act 2009, the accompanying new venture understandings can
be made: Single-enterprise agreement, Multi-enterprise agreement and Greenfields agreement
can be considered as some of approaches that can be used by organisation and these can help
firm in hitting their targets in much effective and in efficient manner. Enterprise agreement may
aid both employees and employers in many ways and these agreements may aid company in
attaining goals and objectives. Process is consist with many actions and some of them are given
under this: Preparation of EBA is filled with collecting performance level and information of
staff members. Notice can be delivered by employers to employees that may aid in intending to
get down the bargaining procedures. Third stage where amendments are being made by EBA
where HR management keeps on developing policies according to needs and wants of individual
of Woolworths Supermarkets. On the other hand, it has been located that Fair Work Commission
which has been developed by Australian government needs to develop programmes on a regular
basis so that to deliver all the information that is related to policies and about changes as well if
any changes has been made by them. Lastly approval can be seen from FWC.
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Henceforth, EBA's may take some time to get set up but according to the authors point of
view it has been analysed that this sort of tools plays an important role when it comes to earn
high profit or to develop reputation or image of firm among society people. With the help of this
tool, Woolworths Supermarkets may raise its productivity because employees will stay satisfied
inclusion will be there of both employees and employers. On the other hand, awards system is
totally different from enterprise bargaining approach. Some legal obligations these two
approaches makes them distinctive from each other (Watson, 2013).
Apart from this, it has been located that there are ample number of issues that stay
present at workplace when it comes to maintain employment relations. At current time, Australia
is facing many sort of problems in the same context and some initiatives has been taken under
this are: Government has made national workplace relations system and which was established
by looking at and considering the Fair work act, 2009 of Australia. Second initiative is paid
parental leave which helps parents in getting paid for 18 weeks with minimal rates that
government of Australia has fixed. Apart from this, third initiative which has been taken under
by government of Australia is Fair entitlements guarantee (FEG) approach under this, financial
aid is being given to employees for a certain time of period but it depends on his/her eligibility
and some of these are: loss of job, bankruptcy, many more and is being occurred from 5th of
December 2012.
On the other hand, Building Code 2013 is being considered as necessitate companies
have taken under Commonwealth Bank and got funded in order to building work. Supporting
guidelines helps Commonwealth federal agency in order to improve productivity and
profitability in much effective and in appropriate sense. Along with this, there are many
obligations under Building Code 2013 and these may put impact on adopting approaches at
marketplace of Australia. The Building Code is being considered as an approach that may aid In
developing an entry portal which is an online tool. As given by Alfes and et. al., (2013)
enterprise bargaining entails aid an organisation in improvising retention of staff members and it
also aid in motivating them. According to the author statement which was given by him it has
been evaluated that retention can be build up in much effective and in efficient manner.
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Legal obligations and rights need to be observed by employers and employees when negotiating
an enterprise agreement
An obligation can be understood as a legalised bond where more than two parties may get
bound together to refrain at marketplace for a longer period of time (Green, 2012). Apart from
this, it has been located that obligation can be considered as a duty which is much required for
negotiator to depend in order to hit their targets. Along with this, it has been located that an
endeavor understanding is between at least one national framework bosses and their workers, as
indicated in the assention. Venture understandings are consulted by the gatherings through
aggregate dealing in accordance with some basic honesty, principally at the undertaking level.
Under the Fair Work Act 2009, an endeavour can mean any sort of business, action, venture or
undertaking.
Negotiation is defined to be approach focuses on identifying a common grounds during a
conflict situation. It is extremely important for parties to consider governing law which will be
emphasized by them. In this scenario Fair work act 2009 stands most crucial as they act as a
governing body determining relation between employer and employee. The laws which will be
considered helps in governing of contract and determination of the policies and practices within
the negotiation. Woolworth can have access to experienced commercial lawyers and can help in
resulting in favourable outcome from the negotiation. It has been identified that English law is
commonly preferred when negotiating a contract with the party.
However there are certain circumstances in both the parties results in the conflict
situation considering choosing of governing law in this contract. Therefore it is suggested to
organisations in negotiating when it comes to choosing governing law while emphasizing on
forum. Out of forum and law, the former stands more important and can result in successful
negotiating amongst the parties. It is essential for employer and employee to form right grounds
so that it is a win-win situation for both the parties. The consideration fo mutual benefits will
assure that there is a development of ideal relation amongst the two ultimately leading to
improved productivity for business.
Aggregate bartering is a productive discussion for tending to working conditions and
terms of business and relations amongst managers and labourers, or their particular associations.
Usually more compelling and more adaptable than state control. It can help in foreseeing
potential issues and can progress serene systems for managing them; and discovering
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arrangements that consider the needs and needs of the two businesses and labourers. Sound
aggregate haggling benefits both administration and labourers, and the peace and security it
advances advantage society all the more by and large. Aggregate haggling can be an essential
administration organization, it is a method for expanding the assent of the administered by
including them in the choices that influence them specifically.
According to Harrison, (2012), procedure of aggregate bartering permits the interests of
the two specialists and bosses to be voiced, for regular interests to be recognized, distinctive
interests to be adjusted against each other and exchange off to be arranged. For instance, in
regard of working time, aggregate dealing has been utilized as a part of a few nations to adjust
specialist interests for work/life adjust with manager interests for adaptable working time plans
and a diminished in the cost of additional time which may aid Woolworths Supermarkets in
many ways. The after effect of taking part in a procedure of haggling in compliance with
common decency is that the results of aggregate transactions will probably be seen as reasonable
and are more impartial than those touched base at through individual dealing or one-sided
contracting. This has positive advantages for endeavors regarding labourer duty, strength and
efficiency; and for specialists as far as enhanced wages and working conditions.
Advantages and disadvantages are said to be associated with enterprise agreements
EBA that stands for Enterprise Bargaining Agreement, which was formulated in order to
have Fair work between employer and employees. There are some advantages and disadvantages
that are related to relationship between workers and workforce. In terms of advantages for
employers, EBA is helping them in making the process of remunerating more easier so that they
can pay them the salaries to its employees. Most of the company give this in the form of reward
system but sometimes because of complexities of understanding to whom it must be given they
find it difficult for the same. EBA can contour this by incorporating overtime, penalties and
many more. In simple words, company can simply handover the copies of EBA so, there is no
need of giving employment contract individually. For employees, EBA assist them in getting
into a better position if it is paid according to the modern award. The process of bargaining give
opportunities to employees in order to work collaborate with other organisation as well. Through
this they gets an opportunity of bargain on the terms of agreement so as to get maximum benefits
form this.
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In terms of disadvantages of EBA, in context to employers, the entire process of
Enterprise Bargaining Agreement, it requires ample time and cost for negotiation so that they can
come to a conclusion. They have to follow a strict process for accomplishing the task and if
employers fail to do so than it can leads to rejection from EBA. For Employees, they don't have
face much disadvantages but if employee wants to become apart of the union that they are
needed to fill a fee that is regulated by the union. Further if EBA wants to approve any kind of
laws than it is mandatory to have a majority of votes in favour of them but if employees doesn't
agree to this in majority than EBA doesn't have any option except surrender (Ruck and Welch,
2012).
Enterprise agreements carries ample number of advantages and disadvantages both at the
same time that may aid organisation in fulfilling needs and wants of an individual while selecting
or recruiting. It is responsibility of an HR managers to keep on locating every single change if
any made by government of Australia. In the event that individuals have inquiries or issues with
your business, individuals can contact the worker rights warning administration for settlers. The
administration is given by the Central Organization of Australian Trade associations SAK.
individuals can utilize the administration regardless of whether individuals are not an exchange
association part. In the administration, a legal counsellor answers inquiries concerning things like
business contracts, wages or working hours (Boxall and Purcell, 2011).
In context to Woolworths Supermarkets, work enactment and aggregate understandings
control representatives' rights and commitments. Workers' and managers' affiliations consult with
each other on field-particular aggregate assentions. The enactment and aggregate assentions
decide, for instance, least wages, working hours, occasions, debilitated pay and the terms of
rejection. An agreement of business is made when a worker and boss concur on the work the
representative will perform and on the compensation to be paid for it and different advantages
and conditions. The states of an agreement of business are resolved as per the work enactment
and aggregate assention. The agreement of work ties the two gatherings. Trade unions is another
part, Unionisation is common in Australia and persons who serve actively in trade unions are not
persecuted in this country (Davidson, McPhail and Barry, 2011). A person that means staff
member can join a trade union in regards to improve. A trade union strives to secure the interests
of its members in working life.
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CONCLUSION
From above mentioned report, it has been concluded that Australian government has
made ample number of initiatives which has helped companies in attaining all the goals and
objectives in much effective and efficient manner. Along with this, there are many advantages
that can be given to employees and to employers as well which may aid company in hitting their
targets in short period of time. On the other hand, legal obligations may put impact on both
enterprise agreements and modern awards which needs to be taken care in an appropriate
manner. Away with this, enterprise bargaining process is consist with various steps in order to
better serve to customers right on time. Lastly, negotiating process plays an important role within
an organisation and is responsibility of an HR manager to recruit candidates according to their
qualifications and need as well in order to hit their targets right on time.
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REFERENCES
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Welch, M., 2012. Appropriateness and acceptability: Employee perspectives of internal
communication. Public Relations Review. 38(2). pp.246-254.
Guest, D. and Conway, N., 2011. The impact of HR practices, HR effectiveness and a ‘strong
HR system’on organisational outcomes: a stakeholder perspective. The international
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Welch, M., 2011. The evolution of the employee engagement concept: communication
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Donaghey, J. and et. al., 2011. Reconceptualising employee silence: problems and
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Innocenti, L., Pilati, M. and Peluso, A. M., 2011. Trust as moderator in the relationship between
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Malik, N., 2011. A study on occupational stress experienced by private and public banks
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Harrison, R., 2012. Employee development. Universities Press.
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