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Unit 3 Area of Study 2 Managing employees SAC

Outcome 2

Explain theories of motivation and apply them to a range of

contexts, and analyse and evaluate strategies related to the
management of employees.
Relevant key knowledge and skills

This assessment task addresses the following key knowledge outlined in Area of Study 2:
 The relationship between managing employees and business objectives
 Key principles of the following theories of motivation: Hierarchy of Needs (Maslow),
Goal Setting Theory (Locke and Latham) and the Four Drive Theory (Lawrence and
Nohria)
 Motivation strategies including performance-related pay, career advancement,
investment in training, support and sanction
 Advantages and disadvantages of motivation strategies and their effect on short-
and long-term employee motivation
 Training options including on-the-job and off-the-job, and the advantages and
disadvantages of each
 Performance management strategies to achieve both business and employee
activities, including management by objectives, appraisals, self-evaluation and
employee observation
 Termination management including retirement, redundancy, resignation and
dismissal, entitlement and transition issues
 The roles of participants in the workplace including human resource managers,
employees, employer associations, unions and the Fair Work Commission
 Awards and agreements as methods of determining wages and conditions of work
 An overview of the dispute resolution process including grievance procedures,
mediation and arbitration.
The key skills that this assessment task addresses include the ability to:
 Define, describe and apply relevant business management concepts and terms
 Research, analyse case studies and contemporary examples of management related
to managing staff in a business
 Interpret, discuss and evaluate business information and ideas
 Apply knowledge about managing employees to practical and/or simulated business
situations
 Examine and apply the key principles of the theories of motivation
 Compare and evaluate strategies used for motivation and training when managing a
business
 Propose and justify strategies to manage employees effectively.

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TASK DETAILS

Assessment task
Structured questions
Unit/area of study
Unit 3: Managing a business
Area of Study 2: Managing employees

Instructions and conditions

In completing the following assessment task you should demonstrate an understanding of
the relevant key knowledge and key skills for Outcome 2, and be able to explain theories of
motivation and apply them to a range of contexts, and analyse and evaluate strategies
related to the management of employees.

Answer all questions in this answer book. The marks for each question are indicated after
each question.

Conditions: Closed book

Time allowed: 80 minutes (plus 5 minutes’ reading time)

Marks allocated: 40 marks

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QUESTIONS

Question 1 (19 marks)

In 2014 South African retailer Woolworths took over the Australian department store David
Jones (DJs). It aims to make David Jones the best department store in the southern
hemisphere. To achieve this they need to boost the earnings of DJs while also
implementing some cost-cutting measures. One of the strategies has been to shift the head
office of the 178-year-old retailer from Sydney to Melbourne. The move, while providing cost
savings for the parent company, will also lead to the loss of hundreds of job in Sydney in
roles such as buying, planning, finance and visual merchandising. Staff will be offered the
opportunity to relocate to Melbourne, but more than 50 per cent are unlikely to be willing to
do so. Woolworths has also streamlined David Jones’ service model, hired more permanent
staff and introduced new accounting, merchandise and planning systems.

a. Describe the relationship that exists when a business is managing its objectives
while also endeavouring to meet the objectives of its employees. (2 marks)

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b. David Jones has identified that more than 50 per cent of its Sydney workforce will
not relocate to Melbourne.
i. Identify two termination management issues that will face David Jones as a
result of this relocation. (2 marks)

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c. Propose and describe two strategies that David Jones management could
implement to ensure the termination of the Sydney employees is handled in an
appropriate manner. (3 marks)
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d. David Jones as part of streamlining its service model has introduced new
accounting, merchandise and planning systems. As a training consultant you have
been asked to propose and justify a training option that would be appropriate to
train the employees in this new service model. (2 marks)

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e. Compare the ideas of the following motivational theories: Hierarchy of Needs

(Maslow), Goal Setting Theory (Locke and Latham) and the Four Drive Theory
(Lawrence and Nohria). (6 marks)

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f. Identify and explain two motivation strategies that DJs management could use to
motivate their staff following the relocation to Melbourne. (4 marks)

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Question 2 (11 marks)

In November 2016, Asciano Limited, the owner of Patricks, Australia’s largest stevedoring
business which handles almost 45 per cent of all container cargo in Australia, has
successfully negotiated a workplace agreement with the Maritime Union of Australia (MUA).
The vote by 1000 dock workers working at Patrick Stevedores’ four container terminals in
Sydney, Melbourne and Brisbane to accept this agreement came after a long and complex
two-year campaign. The long and bitter workplace feud between Patricks and the MUA
culminated in simultaneous strikes which forced the shutdown of Patrick’s four terminals
earlier in 2016. Patricks threatened a national lockout of its employees to force the
deadlocked dispute over rosters, hours worked, pay, worker safety and other financial
issues to arbitration.

Many of the negotiated terms of the workplace agreement are well above inflation and
broader wage growth predicted in the economy. The MUA believes the new workplace
agreement is a victory for workers and the company, securing important job protection
conditions and should provide stability to the waterfront.

Under the new four-year deal, Patricks’ workers will receive:

 Financial payments eg. a $1500 sign-on bonus, a one-off payment of 2.5 per cent
for the six-month period in 2016, subsequent pay rises of 2.5 per cent for the
remainder of the agreement period
 Legal protection for job and job security for all work currently performed
 Job protection provisions and full consultation on the introduction of new
technology or automation including extra redundancy payment, redeployment,
reduced hours, retraining and protection of jobs through such change
 Fully functional dispute settlement and consultation procedures
 Superannuation at the rate of 12 per cent.

a. For each of the two types of industrial action listed below, identify which party to
an industrial dispute takes this action and describe the purposes of the action. (2
marks)
I. Strike

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II. Lockout

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b. Describe the role of the Fair Work Commission when an employer and its employees
cannot reach agreement on the terms and conditions of a new workplace/enterprise
agreement. (2 marks)
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c. Describe the role of the following participants in the workplace:

 Unions
 Employer associations
 Human resource managers (3 marks)

Unions
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Employer associations

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d. Analyse and evaluate whether the satisfactory negotiation and adoption of the
workplace agreement between Patricks and the MUA will achieve both the
objectives of a business: to increase its productivity levels and its workers to
achieve better pay and working conditions. (4 marks)

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Question 3 (10 marks)

In Australia, employees working for businesses can be employed under any of the
following three types of agreement.

 Industry-wide awards
 Workplace/enterprise agreements
 Individual contracts
a. Compare the three types of employment arrangements under which Australian
employees can be employed. (6 marks)

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b. Implementing a performance management system is a practice that businesses

undertake to assist their decision-making relating to the performance of their
employees. There are a range of strategies that can be used with performance
management, namely:
 Management by objectives
 Appraisals
 Self-evaluation
 Employee observation
Choose two strategies from the above list and describe how they are used to
determine the performance of an employee. (4 marks)

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Megan Jeffery & Gillian Somers 10 © Cambridge University Press 2017