Discuss about the Reward Management for Fair Work Act.
The report is prepared to adders the perspectives of different types of stakeholders in business on the management of rewards, benefits and compensation based on the organizational perspective. According to the case study, it can be understood that the rules and regulations in Australia maintained has helped in creating fair work commission to make a national minimum wage order. It is the duty of the minimum wage panel to conduct the review of annual wages during each financial year and ensure that the workers’ needs and requirements are kept fulfilled. One of the most important legislation can be the Fair Work Act that has created few requirements of the processes that are needed to be reviewed. Thus, the topic will discuss the perspectives, views and opinions of the various stakeholders and ensure that they have reviewed the minimum wage conditions efficiently (Aubert et al. 2014).
The contrasting theoretical approaches to minimum wage determination
The wage determination theoretical approaches have been combined, as presented in the FWA, is needed for determining the right structure of wages provided to the workers and ensure that it benefits both the employers and employees of the various business organizations in Australia. The topic will also illustrate the reviews and perspectives of the FWC to check whether the aims and objectives of the FWA have been achieved or not. Based on the submissions of ACTU and employer organisations, it could be understood that the Fair Work Act was managed by the Expert Panel, who believed that it could accomplish the requirements of reviewing the national minimum wage in the form of rewards provided at each of the financial years. Based on the feedbacks of the Expert panel, who are also regarded as important stakeholders, the national minimum wage order is set and can help to set the right wages for the employers and employees of the organisation with ease and effectiveness (Brown 2014). The Fair Work Act enables to fulfill the requirements of the minimum wage review allow all the individuals to participate in the review panel.
According to the reviews, it is clear that the NMW rate has to be set properly and understand the necessity of making any changes to the modern reward minimum wage. The Panel performs its roles and responsibilities by making certain considerations according to section 134 and then set the NMW rate to handle the legal considerations as well. Under the Fair Work Act, the Fair Work Community or FWC is also considered as an important stakeholder who has reviewed the financial years and declared that there may or may not be changes to the national minimum wage order (Bustamam, Teng and Abdullah 2014).
The Fair Work Act has created an impact on the national minimum wage through the encouragement of collective bargaining. The collective bargaining enables to negotiate between both the employees and employers of the organisation to control the salary structure, manage terms and conditions and benefits related to the rights and compensations of the employees. The representatives of the Trade Union provide the interests of the employees and it can also facilitate the scale of pay, working hours, training, health and safety, grievance methods, rights to get involved in the workplace and other company related affairs (Panagopoulos 2012).
It is seen that the various theories for the determination of wages based on the contribution of labour workforce have changed from time to time with the change in economic business environment. Previously there was subsistence theory that focused more on the labour market supply, and the demands were ignored. The change in workers' supply had facilitated changes in the wages structure and ensured that proper amounts of wages should be paid to the workers so that they could support their families and live properly (Garbers and Konradt 2013).
The market price of labour must not change from the actual price, and in case the wages increase more than the subsistence, there would be an increase in the numbers of workers and the rate of wages would come down as well. If the structure of wages decreases than the subsistence., there would be a decrease in the number of workers and the salary would hike for the remaining workers too (Garbers and Konradt 2014). The collective bargaining theory allows for establishing the wages structure, working hours, working conditions according to the bargaining power of the individuals during the agreement. The employers do hold more power and better position to combine the various wages related aspects according to the demands of the employees (Cuevas?Rodríguez, Gomez?Mejia and Wiseman 2012). This would also help them to endure or survive the loss of revenue and even manage the various processes effectively to develop the bargaining strengths of the parties.
Based on the review, it could be understood that there had been several changes in the economic environment including the increase in net disposable income by 6.8 percent after it suddenly fell. The inflation rate had also increased though it was lower at the medium target range of RBA. Their statements also proved that the growth in labour productivity was more than the last year and profit level achieved had been consistent during the past few years for both the total and non-mining industries. The major business conditions are also surveyed to assess the positives and ensure that proper wages structure is followed to gain long-term benefits (Karami, Dolatabadi and Rajaeepour 2013). According to the employer organisation, the workers who are paid lesser wages may be forced to suffer from poverty and requirements not met as well whereas the employees who work as full-time workers have been getting a better living standard that can go beyond the poverty level. The stakeholders believed that increased level could result in no such inflationary effects and there had been very negligible chances of affecting the employment negatively (Perkins, White and Jones 2016).
Based on the responses of ACTU, i.e., an amount of $27.00 has been increased for the NMW and a 3.6 percent increase in the modern award wages. Based on the submissions, it could be understood that the overcompensation benefits provided to the workers has resulted in increasing the rate of inflation, which created further complexities and issue related to the national minimum wages reward. One of the major changes related to the economy that was done had been the decrease in inflation rate and growth in the average wages paid to the employers and employees. This resolved a lot of issues, and even the national minimum wages were increased efficiently (Shields et al. 2015).
There were also economic situations where the hospitality, restaurant, retail and few other industries have faced issues due to the occurrence of natural disasters including cyclones, droughts during the previous years. According to ACTU, equal wages should be paid to the workers and ensure that the standards of living for NMW could be improved and the needs and requirements of the employees could be met easily. According to the various Acts, it is necessary to promote social inclusion and national economic prosperity, which can help in providing good workplace relations as well as maintain a good workforce to enhance the production level and promote economic growth as well. From the submissions of ACTU and employer organizations, it is quite evident that there is need to make superannuation contribution for benefiting the employees and even prevent the employer to provide the superannuation guarantee charge according to the legislations and policies implemented (Sparrow 2013).
The extent to which these stakeholders approached aligns with contemporary reward management
It is evident and true to the fact that the various stakeholders involved in business have been highly involved with the alignment to reward management. They are highly involved with the reward management system, and they have performed their roles and responsibilities properly to ensure that proper amounts of wages are paid to the workers, and they are kept satisfied too. It could be seen that the Panel had the role of increasing the national minimum wage of employees and could also check the effectiveness of economy. The Panel within the stakeholders could also ensure that the award wages had been increased along with the higher production of labour within the organisations without creating any negative impact on the inflation rate (Speiser and Speiser 2012). This would encourage the employees and influence their behaviours to perform better and efficiently as well. It is not easy to measure the rewards and manage those and so to a particular extent, rewards should be relied upon to ensure that positive effects are created both by the employees and employers. The involvement of stakeholders in the management of rewards is essential for checking the employees' productivity for those who suffer from a disability and also not (Tobey Sr and Yasanthi Perera 2012).
There are few limitations that have been faced while allocating labour during the reward management. The human resources department must check the wage structure within the workplace of the organisations. It can help in setting the right wages by addressing the changes in supply and demand, which may have resulted from the structural changes in the economic structure. To some extent, it is also important to be noted that ACTU has supported the reviewing of various literature from US and UK to understand the impact of employment effects on the national minimum wages. The engagement of stakeholders is also essential for ensuring competitiveness within the organisation that can not only improve the economic performance but will also allow for setting the minimum wages provided to the employees of the organisation. The reward management also involves the various employees to ensure that their needs and requirements are fulfilled, and the wages structures are adjusted according to the labour input and the contribution of the employees to the organisation, rather than focusing on the working hours (Aubert et al. 2014). The employees who are also considered as important stakeholders have the power to do collective bargaining. From various data and information collected, it could be seen that most of the employees had been provided with the wages based on the collective bargaining and this had managed to fulfill their needs and requirements as well (Bustamam, Teng and Abdullah 2014).
There are other stakeholders too such as the managers, business professionals, technician and trade workers, sales workers, labourers, operators or machinery and equipments, etc. The employees who are paid lesser wages shall have to be provided with proper benefits based on the growth in production level. With the labour share of income-decreasing at both economy level and reward management level, it is also important to make sure that growth in production level is achieved and the living standards of the employees are improved too (Panagopoulos 2012). The employers also have the responsibilities of setting the wages of employees based on the power of market held by the employers. Within the area of enormous competition, the maximization of profit is based on the wages provided and employment practices as well. Therefore, it could be concluded that the stakeholders had been aligned with the reward management to a large extent (Cuevas?Rodríguez, Gomez?Mejia and Wiseman 2012).
The topic focused on the various aspects of reward management considering the reviewing of modern award minimum wages and thereby created a national minimum wage order. The Fair Work Act was considered as useful for setting out the most important process requirements for the review and ensured successful management of rules and regulations of minimum wages provided to the employees. The impact of ACTU, NMW and the involvement of various stakeholders involved in business had helped in setting the right amount of wages provided to the employees. The various theories including the wage theory and subsistence theories had been considered here as useful along with the submissions made by ACTU and employer organizations to determine the ways of setting wages. The stakeholders who were approached had also been involved with the reward management largely for creating a positive impact on the setting of wages of employees within the organizations.
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