Can and should Australian employment relations legislation contribute to workplace productivity and performance?
Workplace productivity and performance can be both classified at the micro-level of the organisation and the macro-level of national economic performance. Productivity is the quantity of output per unit of input, specifically, labour productivity is measured by output per hour worked (Peetz 2012, p.269). Performance can be assessed in terms of efficiency and equity; efficiency is determined when there is minimal input to attain an output and equity is the fairness of a process or substantive outcome (Bray et al. 2014, p.390). Conceptually, employment relations policies have had more of an impact on fairness than on economic performance …show more content…
Freeman (1976) and Freeman & Medoff (1984) claimed unions could increase productivity with the provision of worker voice, by opening up communication channels, and by prompting managers to change production processes and implement policies that are more efficient. Supporting this idea is research conducted by Wooden (2001) which found a positive relationship between unionism and productivity at the workplace. In another study, researchers found that firms with high union density were more productive than firms without (Tseng & Wooden 2001). Another study by Alexander & Green (1992), showed a positive correlation between workplace performance and management and worker collaboration through union …show more content…
This is derived from the notion that collective bargaining gives workers a greater sense of company commitment and engagement; and provides a means for agreements to be made for employee benefits in exchange for increased productivity and performance (Hancock et al. 2007, p.9). A study researching the effects of legislative regulation on labour productivity, Kates (2010) found a decline in labour productivity after the introduction of the Fair Work Act’s enterprise bargaining requirements. However, Hancock (2012), when analysing productivity growth across industries nationally, found no evidence establishing an influence from enterprise
Workplace productivity and performance can be both classified at the micro-level of the organisation and the macro-level of national economic performance. Productivity is the quantity of output per unit of input, specifically, labour productivity is measured by output per hour worked (Peetz 2012, p.269). Performance can be assessed in terms of efficiency and equity; efficiency is determined when there is minimal input to attain an output and equity is the fairness of a process or substantive outcome (Bray et al. 2014, p.390). Conceptually, employment relations policies have had more of an impact on fairness than on economic performance …show more content…
Freeman (1976) and Freeman & Medoff (1984) claimed unions could increase productivity with the provision of worker voice, by opening up communication channels, and by prompting managers to change production processes and implement policies that are more efficient. Supporting this idea is research conducted by Wooden (2001) which found a positive relationship between unionism and productivity at the workplace. In another study, researchers found that firms with high union density were more productive than firms without (Tseng & Wooden 2001). Another study by Alexander & Green (1992), showed a positive correlation between workplace performance and management and worker collaboration through union …show more content…
This is derived from the notion that collective bargaining gives workers a greater sense of company commitment and engagement; and provides a means for agreements to be made for employee benefits in exchange for increased productivity and performance (Hancock et al. 2007, p.9). A study researching the effects of legislative regulation on labour productivity, Kates (2010) found a decline in labour productivity after the introduction of the Fair Work Act’s enterprise bargaining requirements. However, Hancock (2012), when analysing productivity growth across industries nationally, found no evidence establishing an influence from enterprise