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Effective employment relations
Some 21st century initiatives
Casual dress codes, gymnasium subsidies, pizzas on company time and no doors to the boss's office. Welcome to the workplace of the 21st century.
Outcomes
Overview of some new employment
initiatives
Revision
HSC Topic 4: Employment Relations is covered in the NSW Board of Studies Syllabus (June 1999) on pages 32-33.
Outcomes
The student:
| H3.3 | Outcomes analyses the impact of management decision-making on stakeholders |
|---|---|
| H4.2 | evaluates management strategies in response to internal and external changes |
| H5.2 | plans and conducts an investigation into business to present the findings in an appropriate business format |
Overview of some new employment initiatives
For tens of thousands of Australians, most of the 1990s were difficult years. The majority of households were affected. 1990 marked the beginning of "the recession we had to have". Interest rates rose to record levels, consumer spending slowed, bankruptcies increased and public confidence fell.
All over the country and the industrialised world, distressed businesses, fighting to survive, decided that the best way to reduce costs was to reduce employee numbers. One of the consequences was the most severe global economic downturn since the "great depression" of the 1930s.
"Official" Australian unemployment rates in this country reached 13 per cent and there were reported to be many others not "officially" included in the statistics. Employees lived in fear of retrenchment notices while employers worried about not having enough cash flow to meet the next payroll. The majority of Australian households were affected.
Now, thankfully, general economic conditions have improved. In large metropolitan areas like Sydney the majority of workers with marketable conditions have jobs. Today, in large metropolitan areas, qualified workers, unhappy with the job they have, can usually get another one. Unfortunately, this is not the case throughout the country.
Businesses in metropolitan areas have realised they can save millons by keeping good staff. So far, managers and employers of the 21st century seem to be following a two-pronged employment relations strategy:
- doing whatever possible to attract the best staff
- keeping employees happy once they are there by encouraging loyalty and minimising damaging staff departures.
A few big Australian businesses and the 21st century initiatives they are using to foster effective employment relations are outlined below.
AMP
- parental leave
- child care and parent rooms
- children's Christmas party
BHP
- share options for some employees
- rewards for environmental and community contributions
- Olympic Games tickets and participation in the torch relay
COLES-MYER
- subsidised tuition for outside study
- employee discounts
- shift from permanent to casual shifts
COCA-COLA AMATIL
- no hierarchy: small teams work together to complete tasks
- anonymous surveys of employees for views on company operations
- casual clothing options
PRICE WATERHOUSE COOPERS
- gymnasium subsidies in city
- options to work from home
- personal counselling for employees and families
Revision
- Review the characteristics of economic cycles or "booms and busts", as they are often known. The effects described above are typical of what takes place when an "over heated" economy is slowed down by external factors beyond the control of the individual business. (Outcome H4.2)
- Have a second look at the variety of incentives listed above. They are all actually being used by large Australian businesses to foster more effective employee relations. As current examples of "real life" management strategies, some or all of them may be applicable to examination or assessment questions. (Outcome H5.2)
- Talk to relatives or family friends who experienced the recession of the early 1990s. Find out what impact, if any, economic influences of the day had upon their relationship with their employer or with their employees. Ask your contact for the meaning of the term "golden handshake". (Outcome H3.3)
- Revisit the small business you investigated during the Preliminary Course. Do the owners use any strategies you feel contribute to fostering effective relations? If so, this is more case study data that should help you. (Outcome H5.2)
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