THE INSTITUTE OF BUSINESS STUDIES UNIVERISTY

INDUSTRIAL RELATIONS
Short Answer Questions
Semester 2, 2023
Assignment 1

Junior YAMA

2333559 (ID)

Year 2

Economics and Development Studies

Question 1

Industrial Relations is an important arena that looks at the relationship between an employer(s) and
his or her employee(s), the state, trade unions, and employer organizations its main objective is to
uphold and create a great and prosperous relationship amongst employees and employers. The basis
of IR is to allow employees to have a say in their opinions and take part in the decision making
process within the business that includes them.

Question 2

 Reduces productivity, increases costs;

Consequence of having disputes within a firm results in reduced productivity. Reduced
productivity over a period of time would mean a decrease in the company’s profit.
Therefore, results in an increase in the company’s cost of production in trying to keep the
company afloat.
 Wasted time and energy;
The energy and time that could be used for increasing a firm’s productivity, thus, increasing
profits and overall performance, is wasted and lost to petty disputes. But once the problem
is corrected in a peaceful manner time and energy will be very much utilised for the firm.
 Difficulty in recruiting and keeping staff;
As a result of failing to meet certain IR protocols recruiting and keeping staff within an
organization becomes difficult. This makes the company to have a high level of turnovers. If
not properly addressed by employers to meet employee requests this would eventually lead
to the company’s closure, turmoil, etc.

Question 3

Is a method of agreement between the two groups which have both shared and disagreeing
interests? It is the method of determining the changes concerning union and management without a
third party. The union and management are required to come to an agreement peacefully “in good
faith.”

A well put out collective bargaining in good faith follows the process of;

 preparing for negotiations

 identifying bargaining issues
 negotiation
 a settlement and contract agreement
 administration of the agreement

The importance of following these procedures contradicts to a good and prosperous agreement in
which both parties are satisfied. Thus, serves the true primary purpose of Industrial Relations. To
serve the employee and employer well.

Question 4
Trade Unions are bodies that represents the employee’s and employers. Union participants select a
spokesperson to represent them in discussions with the employers. Listed are advantages and
disadvantages of joining a Trade Unions in PNG.

Advantages

 Increase Bargaining Power – elect a leader as representative

Not everyone has to speak. Appointing an individual to represent a Trade Union makes it
easier for the spokesperson to settle argument and come to an arrangement in quick time.
Without having everyone to be shouting and screaming on the top of their lungs inside
boardrooms to their employers. For example, in doing so in PNG’s National Nurses
Association in Goroka (EHP, 2022) arrangements were made quickly and nurses resumed
their duties at once.
 Greater chances of job security if the union is powerful
A Trade Union that is powerful will most certainly grab the attention of the public and will
have a greater chance of attaining in most cases, the thing, the item, or approval they most
certainly require. Given that is done in good faith. For example, PNG’s National Nurses
Association in Goroka (EHP, 2022) had a strike on the government to increase their wages
and salaries.

Disadvantages

 Less job security if a union is weak

If the trade union is not powerful and is not recognized. Those employees will not attain the
benefit of having greater job security. For example, in PNG conditions of employment for
non-unionised sectors like truck drivers, mine workers, informal sectors, etc. are not
factored in.
 Political influence and manipulation
Given the circumstances of the people. Politicians use this approach of promising trade
unions of bright futures for those unions and their cause. Thus, are elected into power and
may or may not help those unions in their conquest, for example, for better pay, suitable
working conditions, overtime pay, etc.

Question 5

Industrial conflicts occurs when workers direct their disappointment and administration over the
present state of the organisation employee connection. Two reasons why industrial conflicts occur
includes, working conditions and discrimination.

 Working conditions
It includes the type of job the employee performs and the situations they have to overcome
in order to complete their tasks. For example, for a man working as a nurse in a hospital he
has the right to complain, if the equipment and safety gear he uses on a daily basis to assist
patients isn’t clean and well protect from contracting diseases even viruses from the
patients.
 Discrimination
It may come in the form of insulting employees for their state of health, financials,
background, family, race, etc. For example, an individual within a firm may not be credited
 for his hard work due to the fact that he is physically disable. Though he has the necessary
knowledge and experience for the job.

Question 6

Marxist theory

It believes that the industrial relations is be influenced by the connection among the employees and
employers. It adopts that the existence of the employees without work is more important than the
endurance of the employer without the labours. Employees will be exploited if the government does
not control. In conclusion, it cannot function without a third party or the government for sure.

Political Unitarism is seen as all parties sharing the same interest and being homogenous.
Discourages strikes and conflicts. Management and staff share common goals through their loyalty
towards organizations. Third parties are seen in this scenario as irrelevant as employees and
employers have mutual cooperation. Therefore, in Political Unitarism there is no need of a third
party involvement between employee and employer, unlike the Marxist theory.

Question 7

Minimum Wages is the lowest salary or payment in exchange for work that the employer can legally
compensate their workers. Listed are advantages and disadvantages of increasing the minimum
wage in PNG.

Advantages

 It would stimulate consumption, by increasing the cash flow within the economy.
 Gives reasons to go into the workforce, as different to other ways of moving income to the
unfortunate who are not employed.
 It would increase the people’s standard of living.

Disadvantages

 It may cause price inflation as industries try to protect their profits by increasing the prices
of goods and services.
 It would profit some employees at the expense of other less productive employees.
 It would hurt more small businesses than large businesses in PNG.

Question 8

Discrimination in the workplace occurs when an individual or a group of people are unfairly treated
due to certain characteristics. Listed are three of the main types of discrimination in the workplace in
PNG;

 Gender Discrimination
When someone is treated unfairly due to their gender but not in a sexual manner. For
example, in PNG, this could involve discrimination based on sex, gender, identity, or gender
expression.
 Racial Discrimination
 Is any discrimination on any person with regards to the basis of their skin colour, race or
ethnic origin? For example, in PNG people can be discriminated by rejecting to do trade,
meeting people, or sharing assets with other individuals.
 Age Discrimination
Includes giving employees less opportunities due to his or her age. For example, some
government office in PNG would not allow for young qualified individuals to take up
positions of power because of their age.

Question 9

The Minimum Wage Board – it is important because it tasked with the responsibility of setting the
minimum wage/ price floor of what an employee earns and trades for their time and labour. In
addition, they play a vital role in PNG as they seek to protect the employees of a firm from being
exploited by employers. Other minimum conditions include consultations, allowances, other types of
leave minimum rate of pay, penalty rates, etc.

The National Tripartite Consultative Council – its main purpose is to find ways of improving the space
of IR through the working atmosphere. And adopting a continuous trading of ideas among the third
parties and reps of both employee and employer during the entire time. Upholding business
coordination amongst the people of the employed sector.

Question 10

Automation is the practice of using control systems and ITC to decrease human effort in the
manufacturing of goods and services. Listed are some of the advantages and disadvantages of
automation in industrial relations.

Advantages

 It saves time and money

If done right in the context of PNG we could be looking at a new and improved way of
enabling firms to save money and time. Due to the fact that automation will do much for the
benefits of the firm.
 No Trade Unions
A good thing about automation in PNG is that they unlike humans have no feelings and
emotions like petty humans. Therefore, there is no need to complain and stress out
employers and their firms.
 Speed
In the world that we currently live in (PNG), things need to be done fast. A day spent
contemplating on what and where to invest your money in, is a day that can never be taken
back. Automation solves numerous problems in quick time something an individual cannot
comprehend.

Disadvantages

 Increase in Unemployment
 Adapting the use of automation will inevitably cause a decrease in employment and an
increase in the rate of unemployment in our country (PNG). Resulting in the population
finding it difficult to provide for their families.
 Costly to maintain and repair
Automation comes with a price to pay. It would be much costly to repair damaged parts, and
do maintenance on the equipment.
 Safety threats
A mechanized system might have restricted level of intelligence, therefore, the mechanized
system is more expected to make mistakes in production of goods or service in some cases.