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Compare two features of a centralised approach and a decentralised approach to employee relations. - VCE - SSCE Business Management - Question 5 - 2016 - Paper 1
Question 5
Compare two features of a centralised approach and a decentralised approach to employee relations.
Worked Solution & Example Answer:Compare two features of a centralised approach and a decentralised approach to employee relations. - VCE - SSCE Business Management - Question 5 - 2016 - Paper 1
Step 1
Feature 1: Pay and Conditions of Employment
Answer
One feature of both the centralised and decentralised approaches is pay and conditions of employment. Both methods deal with setting the salary and working conditions for employees.
In a centralised approach, pay and conditions are determined at an industry level, setting consistent standards across the workforce. This ensures uniformity but may not cater to specific organisational needs. In contrast, a decentralised approach allows individual organisations to set their own pay structures based on internal needs and employee performance, which can lead to more tailored solutions for staff.
Step 2
Feature 2: Resolution of Disputes
Answer
Another feature is the resolution of disputes. Both approaches involve negotiation but diverge significantly in the process.
In a centralised approach, disputes are directed to a formal body such as the Fair Work Commission for resolution, providing an objective third-party decision. This ensures that disputes are handled according to established protocols. Meanwhile, the decentralised approach encourages internal resolution discussions, enabling organisations to manage conflicts more swiftly and fostering a closer relationship between management and staff.