The proof that a system functions properly is measured by the result of all the components working together to produce a specific goal. When math is properly applied the correct answer is the result. However, if a step or two have been skipped or missed the result might not be a true answer. In communication we find that there are procedures to follow in a logical order to achieve a positive outcome. One of the features of Systems Theory that make it so accessible is called processes and feedback, and just like the different formulas in mathematics, this "formula" adds to the functionality of the whole theory.

“In systems theory, there are two main types of feedback: negative and positive” (Eisenberg, Goodall, 2004, p 103). These help to interpret what needs to be done in order to accomplish the intended task. Negative feedback can cause a revisiting of a certain aspect of a communication process, which in turn, allows positive feedback to bring the aspect to its intended place or do away with it all together. This is really helpful in the attaining of goals.

Another aspect of systems theory is that it can be applied to a project regardless of the goal that is trying to be reached. Goals can be individually attained or corporately attained, or even a combination of the two. The definition of the goal as it pertains to a certain project will tell where it fits in the overall goal of a project. For example, if asked to triangulate the position of a satellite in orbit around the earth, there would be logical steps to take to come to a correct set of coordinates specifying where the satellite is. If a manger wants to reach a team comprised of 25 sales people he will have to use different variations of the same logic to reach them all even though the message is the same.

I use an illustration when teaching the order of operations in algebra. It is a story of three men who want to split the cost of a motel room evenly. They are told the room will be thirty dollars, so they each contribute 10 dollars. Later, the clerk discovers he overcharged the men and sends the bellhop to their room with five one dollar bills. On the way to the room the bellhop wonders how he is going to divide the five bills between three people. He decides to keep two of them and gives each of the men one. This means the men only paid nine dollars each for the room and the bellhop kept two. If you multiply nine and three, then add the two dollars the bellhop kept the total is only 29 dollars. What happened to the other dollar? The problem with this illustration is how I communicate the story which implies an illogical approach to the solution.

Understanding systems theory helps communicators do what is necessary by using many different aspects of communication as they apply to any given situation. In the illustration above, the solution was relegated to only one theory of mathematics. When organizations try to operate by using a single approach they will discover communication problems for which there is no solution.

I think anyone who's sold or bought on eBay in the past couple of years will agree that the system wasn't doing what it was intended to do. But the discussion of what to do about that dates back to who knows when, and THIS was determined to be the best solution? Don't the problems with this just spring to mind unbidden (pun totally intended)? Let's see:

• There are as many problem buyers (slow pay, no pay, wrong pay, too stupid to read the plain language description of an item, certified insane, and on and on) as there are sellers. Ebay's "seller protections" are essentially too little too late. Too little because you have to be reeeeeally bad to be blocked from bidding. Too late because there's no meaningful feedback on buyers to guide a seller through the process of receiving and answering questions and so forth, and because you have to be really bad to be blocked from bidding.
• Sellers are 50% of the equation that is eBay. Will this not result in the mirror image problem (now sellers are going to lose confidence in the system), in no time flat?
• Buyers are still allowed to leave feedback of any sort! how weird is this? If the feedback system has demonstrated that the human tendency to manipulate, exaggerate, and so forth is alive and well, what about this new policy reduces that tendency?
• I could go on. But others closer to the eBay playing field are way ahead of me. I just could not read that message today and not throw in my two cents (again with the wink), late though they may be. Surely there is some way of actually solving the problem of meaningless feedback. I suspect once seller confidence dwindles as buyer confidence had, we will see some wiser minds at eBay go to work on this.

Hiring an MCSE; Microsoft Certified System Engineer, (known as "Must Consult Someone Else") is going to cost you a lot of money in the long run. A Geek may appear to have arrived early, that is because he has been there all night.

An MCSE will walk away from a server which is malfunctioning because it is his lunch time, leaving the entire office off line.

A Geek will notice a problem, be able to format the hard drive and load another operating system. An MCSE will 'reinstall' the same failing system and preserve the problem. Geeks will experiment with every Operating System and application at home in their spare time, and be able to direct the employers as to what would work best.

MCSEs get the latest Window upgrades and have had offices moved from 98 to 2000 then to XP and now are clamoring for VISTA, because the Borg tells them so. Hence, an MCSE will insure you never stop buying software.

A Geek will get CDs of Linux load them, and the only time he will ever need to "tweak" is if some esoteric piece of equipment is purchased and he needs to find and load the drivers.

Zero is spent on software, saving a company millions of dollars. Further, the fact that Linux is virtually bullet proof means that malware and illegal access is not a problem.

Geeks know a little about a lot; they can build a computer from random parts, can tweak software, have no problem with all sorts of firmware, and even if something was just invented last month, one can be sure that a Geek either was involved in Beta Testing or has cleaned out his bank account to buy it for himself.

MCSE know nothing more than what they were certified to know and avoid learning anything else, save and except if another expensive course is being given and they can get their employers to pay for their attendance.

A Geek goes home, (if he has Broadband at home) to surf the Net. An MCSE goes home and if he does have a computer, might not even turn it on.

For a Geek, connectivity is air; being off line is suffering a major catastrophe. For an MCSE it is no more distressing than a pencil point breaking. It is your money, your office, you work. You decide.

• Planning the human resource needs of the business.
• Acquiring people with the right skills.
• Developing and training employees to improve their skills.
• Performance management.
• Maintaining staff with different types of rewards.

Stakeholders in Employment Relations

Employment relations are concerned with how employers and employees behave and interact. This relationship is affected by a number of other stakeholder groups such as:

Employer:

• Exercises control over employees.
• Is responsible for pay.
• Has power to dismiss employees.
• Responsible for planning, leading, controlling, directing and motivating employees.

An employee is a worker under an employee's control. Control may include:

• The location of a work place.
• The way in which work may be performed.
• The degree of supervision involved.

Employee associations are organizations that represent and assist employer groups:

Their main role is to act on behalf of employees and to defend their members interests Eg. Appearing before industrial tribunals on behalf of their members or representing their members in negotiation with unions.

Trade Unions are orgs formed by employees in an industry to represent them in efforts to improve working conditions of their members.

Social Wage refers to improvements in social benefits such as better health care which acts like a wage increase.

Government Organizations are orgs that represent and assist employer groups.

Their Key Roles Are:

1. Legislator: pass laws in parliament which provides the legal framework for industrial relations. Also develops commissions such as the Australian Industrial Relations Commission (an industrial tribunal) which resolves disputes.
2. Employer: Federal and State level employ one third of Aus workforce.
3. Responsible Economic manager.
4. Representative of Australia in foreign affairs.
5. Administrator of government policies on industrial relations.

Managing the Employment Relations Function

There are many aspects of employment relations:

• Employee selection.
• Employee recruitment.
• Occupational health and safety issues.
• Employee training and development.
• Handling grievances and disputes.
• Wage negotiations.

This means that employers need to plan, organize, lead, control and motivate their employees.

Line management and Specialist Management

ER is seen as an increasingly important aspect of a firm's overall human resource strategy. In large orgs, responsibility for managing ER is often the sole function of a specialist Human Resources or Employment Relations manager.

A line manager is responsible for the management of staff contributing to the prime function of the business, for example, a production manager, service manager or sales manager.

Specialist managers are responsible for:

• Recruitment and selection
• Induction
• Managing the implementation of equal employment opportunity and affirmative action legislation

Social Influences

Society is constantly undergoing changes which affect the quality and quantity of the pool of employees. Changes include:

• Increased immigration.
• Decreases in the natural rate of reproduction.
• Decreases in mortality rates.
• Increased school leaver retention rates.
• More people are acquiring post secondary education qualifications.

Changing Work Patterns

Traditional work patterns are rapidly changing. Many people today have periods as full time employees followed by periods of casual, part time or contract work, and sell their skills to different businesses. Some of the changes in work patterns are due to:

• Rapid growth of contracting out or outsourcing.
• Preference to a smaller permanent flexible workforce.
• Growth of Services - 78% of workforce is now engaged in the service sector.
• Reduction of workers in manufacturing sector.

Population Shifts

• Dramatic change in ethnic composition since 1950's.
• Increased importance of female employment.
• Training is needed to move younger staff into management positions - aging population.

Legal Influences:

The Employment Contract

• A legally binding agreement with associated rights and responsibilities of both parties.
• An employer has the responsibility to provide work, pay the relevant wage, and abide by employment relations legislation.
• The employee has the responsibility to obey all reasonable instructions, perform work without negligence and act in good faith to the business.

Types of Employment Contracts:

1. Award - Legally binding contract setting out minimum pay and conditions for employment.
2. Enterprise Agreement - Employers and employees collectively bargain over wage levels and working conditions.
3. Workplace Agreement - Individual contracts with employees .

Major Employment Legislation

1. Workplace Relations Act 1996.
2. Human Rights and Equal Opportunities Commission Act 1986.
3. Sex Discrimination Act 1984.
4. Disability Discrimination Act 1992.
5. Human Rights and Equal Opportunities Commission Act 1986.
6. Racial Discrimination Act 1975.

The employment contract creates obligations for both employer and employee and all businesses operate within a legal framework of common law and statute law. Legislation covers:

• The nature of employment contracts and agreements.
• Dispute settling methods.
• Protection of human rights in employment and employer responsibilities.

Social justice in the workplace involves businesses being responsible or behaving in a fair and ethical manner towards their employees, customers and the broader community. A centralized system is a collectivist approach in which disputes are referred to industrial tribunals, such as the AIRC, for conciliation and arbitration. In a decentralized system, employers and employees negotiate wages and working conditions in the individual workplace through collective or individual bargaining without the involvement of tribunals.

New Behavioral Influences for Organizations

There have been changes in styles of managing employees. Changes in organizational behavior have come about as management experts have attempted to use a better understanding of sociology (group dynamics) and psychology.

Hierarchical Vs. Flat Management Structure

U - Strict division of labor, employees undertake narrow specialized tasks, control technique - creates sharp division between employer and employees.

Flat Management Structure - closer communication, less "middle" management - efficiency gains, more harmonious, reduces conflict, increases flexibility.

Team Structures - members and leaders - creates a culture of teamwork, equal authority, motivates - their work contributes to concrete outcomes, increase employee autonomy and lead to a degree of self management, must have strong commitment from employees and employers.

Economic Influences:

The way in which the economy can effect employment relations:

• Wage determination and the role of industrial tribunals.
• Pace of economic growth can affect employment levels, types of employment and recruitment policies.
• Changes in economic structure can affect the skills required by employees and the training programs of businesses .

Economic Cycle:

The economic cycle reflects changes in demand for goods and services and can effect employment relations in a number of ways:

• need to change recruitment and remuneration policies in times of strong economic growth to attract and maintain high quality staff.
• consider expanding training programs to overcome any skills shortages.
• make remuneration packages more generous.
• in times of recession businesses may need to cut back number of employees and reduce size of business - downsizing .
• Downturn can lead to more flexible employment - part time, casual and temporary employees.

The Economic Cycle:

1. Recovery.
2. Boom.
3. Recession.
4. Depression.

Globalization:

Affects Business In Many Ways:

• Opening of domestic markets to international competition through reductions in trade protection (tariffs).
• Need for greater flexibility - decentralization of employment relations, reducing role of unions and industrial tribunals.
• Change in workplace structure - implementing faster workplace change.

Effective Employment Relations

The Role of Employment Relations in Business Success

The employment relations function is to manage the relationship between the employer and employees effectively in order to develop competent, flexible, productive employees committed to the organization.

Communication Systems:

Good communications systems can improve business through a number of ways:

• Senior management can communicate their ideas and goals to employees quickly and more clearly.
• Employees may have useful contributions and ideas which may be wasted without effective communication systems.
• If employees feel that they are involved, their job satisfaction and motivation will increase.
• Greater focus on common goals, and efficient resolution of problems can avoid conflict in the workplace.

Grievance procedures are mainly used to deal with personality conflicts and disciplinary matters. They can help prevent a workplace issue from developing into a serious dispute.

• Stage 1: Employee and supervisor meet with union representative and line manager. If no resolution...
• Stage 2: Union officials meet with human resources specialist. If no resolution...
• Stage 3: Senior union official meets with senior manager.

Worker participation - Communication in the workplace is changing with the use of e-mails. Improvements suggested by employees are often critical to a firm's competitiveness and success.

Team briefings - A range of team strategies are employed in industry today, from project teams who work together for the duration of a project to quality circles. Team briefings allow senior management to communicate their "vision" to employees.

Quality circles involve employees meeting voluntarily to discuss, and analyze and resolve specific problems such as safety.

Semi-autonomous teams/self-managing work teams - A semi autonomous team is a form of participative work organization where a group of employees assumes a high degree responsibility for a task or a group of tasks. In a self-managing work team (SMWT), the employees take responsibility for planning and organizing their work including the allocation of the tasks within the group.

Rewards and Working Conditions

Intrinsic rewards are those that the individual derives from the task or job itself, such as a sense of achievement. Extrinsic rewards are those given or provided outside the job itself. They may be monetary or non-monetary.

Monetary Rewards:

• Bonuses and cash payments.
• Deferred payment schemes such as superannuation.
• Issuing of shares and stock options to employees.

Non Monetary Rewards

• Employee recognition schemes.
• Informal praise for a job well done.
• Skill development and on the job training.
• Promotional opportunities.
• Lateral career movement (into different occupations).
• Flexible hours of work - By supporting employees lives outside of work, a business will enable those employees to be more focused on their job.
• Study or parental leave/childcare - Can increase employee productivity, improve business recruitment and elevate employee morale.
• Exciting workplace environment.
• Decision making responsibilities.
• Job security.

Flexible Working Conditions:

This allows some firms to operate shifts at much more intensive levels during peak seasons, with the benefits passed on to employees all year round, eg longer holidays in the in quieter parts of the year.

• Job Sharing involves two employees voluntarily sharing one permanent full-time job. This arrangement is now popular with women returning t he workforce after having children, but requires commitment and communication between the two job-holders to be effective.
• Part-time work allows employees to work fewer than full-time ordinary hours. Conflicting views are emerging about the benefits achieved from flexible working hours and permanent part-time work from the viewpoint of employees.
• Family friendly programs are effective in retaining staff in the longer term as they recognize the interdependence of work and family life and reduce problems involved in managing family responsibilities.
• Common family friendly policies include provision of job sharing, flexible hours/conditions.
• Family friendly policies include: flexible working arrangements, leave, family support, childcare, flexible salary packages.

Training and Development

The aim of training is to seek a long-term change in employee's skills, knowledge, attitudes and behaviour in order to improve work performance in the organization. Managers, supervisors and employees all require training and/or development in order to have the skills and competencies to achieve the goals and objectives of the business.

An effective induction program is carefully planned to introduce the mew employee to the job, their co-workers, the organization and its culture. A well prepared induction program includes:

• Positive attitude towards the job.
• Builds confidence.
• Stresses major policies.
• Helps establish good working relationships with co-workers and supervisors.

Steps For Induction:

1. Assess the needs.
2. Determine the objectives of the training program for the organization, job and individual.
3. Consider the internal and external influences.
4. Determine the process that is the content.
5. Evaluate the training program.

An important element in the training process is allowing the employee to learn by performing under actual working conditions, with close supervision that can identify any mistakes and continue to improve their performance.

Training strategies used by business:

• Apprenticeship and on the job training.
• Job shadowing.
• Scavenger hunt/research.
• Team training.
• Mentoring/buddy system.

Measures of Effectiveness

Effectiveness is measured by its impact on the human resource performance in the organization. Methods of measuring performance include; an information system, which measures each of:

Levels of staff turnover

While some staff turnover is inevitable and is cause by factors beyond the businesses control, if it becomes a regular occurrence it should be looked into. Happy and healthy work environments have low levels of staff turnover.

Absenteeism

Unhappy workers tend to have higher levels of sick leave which disrupt the work place.

Disputation

Dissatisfied workers are also involved with many more industrial disputes that in turn costs the employers, employees and society.

Quality

Quality is the worth of a good or service created by our ability to set and meet specifications. An emphasis on quality saves costs. Some businesses have quality circles which examine ways of improving the quality of their output.

Benchmarking

Benchmarking is a way of analyzing the performance of an organization by looking at best practices outside the company. It compares manufacturing and management processes. Benchmarking can be defined as:

'A continuous, systematic process for evaluating the products, services, and work processes of recognized best practice organizations for the purpose of organizational improvement. It is a strategic response by organizations to an increasingly competitive international environment.'

The three major objectives companies seek from benchmarking are; improving quality of goods and services; reducing production costs; and improving delivery and response time. All are key aspects of customer satisfaction.

Employment Relations Audits:

• An Human resource audit can be used to systematically analyze and evaluate employment relations activities and their effectiveness.
• Quantitative evaluation based on key indicators and trends should be combined with qualitative evaluation based on analysis and feedback from staff and customers.
• Quantitative measures - these should be able to demonstrate the actual effect of indicators in economic terms.
• Benchmarking of indicators is undertaken frequently by business seeking to operate at world's best practice. Leaders in benchmarking focus on quality do more training and have fewer industrial disputes and accidents.
• Qualitative evaluation involves detailed feedback and research on key issues which allows judgments to be made about changed in behaviour or quality of service provided. Key areas includes: Industrial disputes, feedback from performance appraisals, supervisors and interviews.

Ethical and Legal Issues

To reflect the wider context of employment, governments have enacted laws that outline the ethical and legal responsibilities of the employer. By regulating pay and working conditions it is hoped that the businesses interests of low costs and competitiveness can be combined with employee interests of fair pay, safe working conditions and enjoyable work. The law of employment is based on common law wait many statutes modifying the legal situation. There are two main types of contracts related to work situations, and different rules apply:

Contracts of service:

These are based on employer/employee relationship whereby the employer has control over the employee and the right to tell them how work is to be performed. The employer is vicariously liable.

There is usually an agreement to perform a specific task for a specific sum on money. The person providing the service is the independent contractor. The employer does not control the way the contractor does the work. The employer is not vicariously responsible for civil wrongs of the contractor.

Independent contractors are unlikely to have the same entitlements as employees, such as holidays, sick leave, working conditions and rates of pay, protection from unfair dismissal.

Statute law has added to these common law duties. For example the common law duty to provide a safe place of work was supplemented by the OH&S Act 1983 (NSW).

There are three types of contracts in the workplace; awards, workplace agreements, and certified agreements. Contracts are enforceable in the courts.

Awards:

Includes a minimum of 20 conditions including:

• Hours of work.
• Pay.
• Leave.
• Grievance procedures.

Workplace Agreements:

Is an agreement directly between the employer and employee. The employee can have anyone negotiate on their behalf. They are confidential. The Employee Advocate who uses the “no disadvantage test” examines them.

Certified Agreements

Employees and unions negotiate matters concerned with the contract at the enterprise. These are certified by AIRC.

The employment contract is a legally binding, formal agreement between employer and employee. They include: Duties, Supervision, Hours, Location, and Promotion policy procedures, O/T, Leave, and Super etc.

The contact is legally enforceable when:

• One party offers and the other accepts
• Consent is genuine and not pressured

Employment Relations in the workplace is governed by:

• Common Law.
• Statutes - Federal and state legislation.
• Awards and agreements determined through, or ratified by, industrial tribunals.

Common Law is developed by courts and tribunals. Under common law, judges made decisions based on the facts of a case, guided by precedent (decisions made in the past).

Employer responsibilities include the following:

1. Providing work - Employers are not allowed to "stand down" employees if here is no work.
2. Payment of income and expenses - required to pay the income stipulated in the award, enterprise agreement or contract.
3. Meeting requirements of industrial relations legislation.
4. Duty of care - OH&S.

Equity in the workplace is the provision of equal opportunities for all employees to gain access to jobs, training and career paths in the workplace.

All employees are to observe the following:

1. Obey lawful and reasonable commands.
2. Use care and skill.
3. Act in good faith.

Statutes are laws made by federal and state parliaments, for example, laws relating to employment conditions, wage and salary determinations and dispute resolution. These statutes require employers to:

1. Meet occupational health and safety requirements
2. Maintain workers' compensation insurance
3. Provide all employees with superannuation, annual leave and long service leave
4. All practices free from discrimination

Awards are legally binding agreements which set out minimum wages and conditions of employees.

The main difference between state and federal awards is in the way they apply to employees. State awards apply by "common rule" to employers employing someone. At the federal level awards are one of three streams of agreements available to businesses and employees. They are made by the AIRC following lodgment of a dispute by a union.

Agreements

• At federal level, employees must be covered by Certified Enterprise Agreements (CA's) or Australian Workplace Agreement (AWA's). AWA's co-exist with awards to remain as a safety net and agreement made must not disadvantage the worker overall in relation to the relevant award.
• Certified agreements are between an employer and a union(s), or between an employer and a group of employees.
• AWA's operate only at federal level. They exclude union involvement.

Individual contracts exist when an employer and an individual employee negotiate a contract covering pay and conditions. They are more common in the private sector and professional and managerial level. One third of Australia's employees are now covered by individual employment contracts.

Types of Employment Contracts

Part Time Employment - defined as work that is performed by an employee who is engaged for a number of hours that are either fixed or variable but are fewer than the standard hours in the relevant award for that industry. They are entitled to holiday and other leave entitlements on a pro rata basis.

Casual Employment - Refers to those employed for short term irregular or seasonal work and who are paid by the hour or day with no entitlements to sick or annual leave

Apprenticeships and Traineeships - Covers employees who contract to work for an employer in return for the opportunity to learn a trade or vocation.

Flexible - Employment which introduces flexibility to normal work practices such as starting and finishing times, standard hours and meal breaks.

Permanent Employment - Refers to employment for standard hours continuing unless terminated by the employer or employee, with payment by salary or wage.

Laws and Regulations which Govern Workplaces

Occupational Health and Safety

Occupational Health and Safety is important as it can be a significant workplace issue due to its high cost to society (injury and death), high cost to business and its role as a cause of industrial disputes. In NSW the Occupational Health and Safety Act 2000 and Occupational Health and Safety Regulation 2001 set out the guidelines that employers must follow to ensure the health and safety of their employees. The states work place safety legislation is administered by WorkCover NSW.

WorkCovers six step approach:

1. Develop appropriate OHS policies and programs
2. Set up a mechanism to consult about OHS matter with employees
3. Establish a training strategy
4. Establish a hazard identification and workplace assessment process
5. Develop and implement risk control strategies
6. Promote, maintain and improve these strategies

Workers Compensation:

Workers compensation provides injured workers with weekly payments to cover loss of earning capacity and payment of medical expenses and training expenses to assist their return to work. Under the Workers Compensation Act 1987 and NSW Workplace Injury Management and Workers Compensation Act 1998 all employers are required to have a workers compensation policy to protect them from financial claims when a worker suffers from a work related injury.

Anti Discrimination

Employers and employees are not allowed to discriminate on the basis of any personal characteristics such as:

• Sex, color or age.
• Physical or mental disability.
• Religious faith or political opinion.
• Social origin.
• Marital status and family responsibilities.
• Pregnancy or potential pregnancy.

Acts such as the following protect from this discrimination being allowed:

1. Disability Discrimination Act 1973.
2. Racial Discrimination Act 1975.
3. Sex Discrimination Act 1984.
4. Human Rights and Equal Opportunity Commission Act (1986).

Those discriminated against can appeal to the Human Rights and Equal Opportunities Commission (federal level) or the Anti Discrimination Board (state level).

Equal Employment Opportunities

Affirmative action refers to measures taken to eliminate direct and indirect discrimination and for implementing positive steps to over some the current and historical causes of lack of equal employment opportunity for women. This involves acts such as Equal Employment Opportunity (Commonwealth Authorities) Act 1987.

Unfair Dismissal

Retrenchment and redundancy refer to employees losing their jobs as they are no longer needed in an organisation, that is, they exceed the organisations needs. If an employee feels they were unfairly dismissed they can appeal to the courts for either:

• Reinstatement to their former position.
• Reemployment in another position.
• Awarded compensation.

Managing Conflict in the Workplace

The causes of Industrial Conflict:

Industrial conflict is caused by a clash between employees and employers. They are generally caused by:

Wage Demands

To employees wages represent a cost. Whilst employees want the highest income, employers want to keep costs low, thus placing the two in conflict.

Working Conditions

These refer to the organizational environment of the workplace including hours of work, rosters, and amenities.

Management Policies

These involve the methods used, the division of labor and the sharing of tasks between workers. Problems can arise from technological change, and alienation.

Political Goals

These can be aimed at trying to ensure the election of a party to government, or protests.

Social Issues

Unions have moved from economic benefits for their members and now include social issues such as childcare.

In industrial relations, a dispute officially exists when workers withdraw from work or place bans on work.

Perspectives on Conflict:

A unitary approach to employment relations assumes stakeholders, such as employees and their employers, work "hand in hand" to achieve shared goals. It believes there is no fundamental conflict between employers and employees. The business is seen as a unified entity where everyone shares the same purpose and is "part of the same team."

A pluralist approach recognises the active roles played by unions and the employer associations and the framework developed by the government. This "employment relations/ industrial relations" approach sees conflict as a legitimate outlet for pressures and tensions between the stakeholders and their competing interests. It believes that conflict in the workplace is inevitable due to the competition between different group's interests. Pluralists argue that employees are in a position of power and that employees need to act collectively through unions as otherwise they have no individual power.

The radical (Marxist) approach also recognises conflict as inevitable and reflects the traditional view of an "us versus them", conflict-based relationship between employer and employees. This approach sees the employment relationship as part of a social structure of classes. Conflict is caused by the class war in capitalist (market based) economies between workers and business owners. Government is seen to be on the side of the business and thus is unable to resolve conflict.

Types of Industrial Action

Overt industrial action:

Lockouts - Occur when employers close the entrance to a workplace and refuse admission to the workers. This cuts their supply of income and means they may be forced to accept a management decision.

Pickets - Are protests which take place outside the workplace. The workers block the delivery of good and try to stop the entry of non-union labour into the workplace.

Strikes - Involves the withdrawal from work of a group of employees to disrupt business operations as a means of expressing dissatisfaction with some aspects of employment relations. They are the more overt form of industrial action. Sympathy, rolling, rotating and revolving strikes, political, wildcat, lightning, general and stop-work meetings are all different types of strikes.

A ban is a refusal to work overtime, handle a product or even a refusal to work with individuals that are not specified within their legal contracts.

Work-to-rule in this action workers refuse to perform any duties additional to the work they normally are required to perform that is specified in the strict terms of their employment contract. This tends to decrease productivity.

Covert Industrial Action

Absenteeism - High levels indicate worker dissatisfaction.

Sabotage - Involvement of workers destroying the image of the firm via vandalism and disrupting the businesses production.

Turnover - Resignation through absenteeism rates. Indicates poor staff morale or conflict in the workplace.

Exclusion from decision making in business - Employers excluding groups or individuals from decision making. Not inviting them to meetings, using them as a scapegoat when things go wrong. This diminishes the power of the employees in the workplace. Makes like difficult for employees (undesirable shifts, reducing weekly hours) who then may be forced to resign.

Role of Stakeholders in Resolving Disputes

After the introduction of enterprise bargaining, resolving conflict is now in the workplace with employers required to include dispute resolution procedures in agreements.

Employers and managers

Use grievance procedures and negotiate agreements with employees to resolve disputes.

Employees

Use grievance procedures and negotiate with employers.

Trade Unions

Represent employees in disputes, represent employees in tribunals, and negotiate.

Employer Associations

Provide information and support to employers, represent employers at tribunals

Governments

Provide the institutions and policy and legislative framework for the resolution of conflict. Investigate breaches.

Industrial Tribunals (AIRC)

Make and supervise awards and agreements. Provide conciliation and arbitration.

Dispute Resolution Process

1. Grievance procedures - are mainly used to deal with personality conflicts and disciplinary matters within the workplace. They can help prevent a workplace issue from developing into a serious dispute.
2. Negotiation - discussions between the parties compromise a formal or informal agreement.
3. Mediation is the confidential discussion of issues in a non-threatening environment, in the presence of a neutral third party. Neither party are bound by the mediator's suggestions.
4. Conciliation - a third party such as AIRC is appointed to hear both sides and attempts to reach a mutual agreement.
5. Arbitration - if conciliation fails this is the next step. A panel of judges - court room setting. A decision is then imposed on the parties in a legally enforceable decision. A process that is usually avoided as one or both parties may not agree with the outcomes but must enact them.
6. Common law action - is open to any party involved in or affected by industrial action. An employer may ask a court to stop interference with the employer's trade or business. E.g. where a nuisance is created by a picket line.

Costs and Benefits of industrial Conflict:

Financial:

Benefits of IC:

• Increased productivity
• Fewer disputes
• Reduced absenteeism

Costs of IC:

• Lost production and sales
• Firms may close
• Legal rep costs

Personal:

Benefits of IC:

• Gains managements attention to major issues
• Better work relationships
• Greater employee involvement

Costs of IC:

• Stress from work changes
• Threats of downsizing cause fear
• Absenteeism and accidents can occur

Social:

Benefits of IC:

• Jobs can be saved.
• Common welfare can be enhanced.
• OH&S problems reduced.

Costs of IC:

• Community bitterness can be directed at unions.
• Abuse can occur.
• Demonstrations can disrupt communities.

Political:

Benefits of IC:

• Gov can change their policies.
• Industries may be restructured to improve the economy.

Costs of IC:

• Disruptive conflict impacts on gov opposition policies.
• Conflict between unions and governments can cause large civil unrest.

International:

Benefits of IC:

Changes to work practices following conflict improve a business's competitiveness.

Costs of IC:

Loss of export income can occur. Nations reputation for stability can be lost as well as overseas customers.

Come on, not one other company can claim this many great games. It features a wide variety of games; it has action-horror games like Resident Evil. It puzzle-action-adventure games like Prince of Persia; it has war games like Ghost Recon and Brother's in Arms. Stealth games feature Splinter Cell and Assassin's Creed. Ubisoft has it all! Its games have won numerous titles of “Game of the Year”, for example, Prince of Persia: Sands of Time and Ghost Recon: Advanced Warfighter. If it's an Ubisoft game, you got to get it.

SAP has designed an R/3 application module for business functionality in every business area in a company. R/3 application modules are integrated. So when a change is made to one application module, R/3 automatically updates the corresponding data in the other application modules. The automatic update of information in R/3 occurs as soon as data is entered into the system. This is referred to as “real-time” processing.

The application modules are integrated into a work flow business events and processes across department and financial areas. Any business that wants to fully integrate its business processes must use on source for customer, product, and supplier data. R/3 allows for this by providing a set of master records for the enterprise. This means that an entire company can share the same customer or material information that is entered in the R/3 master records.

The integration of application modules in real-time allows all the employees in your company to see the most up-to-date information in real-time at their desktops. It also reduces data redundancy. Globalization is one of the biggest challenges facing any organization seeking to integrate its business processes. A business system must be capable of supporting all of an organization's offices, across the globe. The R/3 system has no organizational or geographical boundaries. It is designed for international use and supports multiple languages, currencies, and taxation systems.

To examine what application modules do and how they connect to each other in more detail, let's take a look at the following application modules:

• Sales and Distribution (SD)
• Materials Management (MM)
• Financial Accounting (FI)
• Production Planning (PP)

Let's say a customer has ordered 100 motors from your company XYZ. You use the Sales and Distribution (SD) application module to enter the customer's request for the motors into R/3. This is done by creating a sales order. Once a sales order has been created, the Sales and Distribution module generates a delivery document, which contains information needed to ship the motors.

For example, the delivery document informs warehouse managers which motors to collect from stock. Once the motors have been shipped, an invoice is created to bill the customer. Materials Management (MM) application module is now used for procurement and inventory management. Elements of this application module include:

• Invoice verification
• Material valuation
• Vendor evaluation

The Financial Accounting (FI) application module manages and reports on sub ledger accounts using a chart of accounts that is defined by your company. Examples of these sub ledger accounts include:

• The General Ledger
• Accounts Receivable
• Accounts Payable

The Production Planning (PP) module is used to plan and control the manufacturing activities of a company. Some of the elements of the Production Planning module are:

• Bills of materials
• Sales and operations planning
• Material requirements planning
• Production orders

Let's look at R/3 integration by examining how the Sales and Distribution application module integrates with other application modules when you create a sales order.

• When a sales order is created, integration occurs between the Sales and Distribution module and the Financial Accounting modules. This is because R/3 checks the customer's credit limit, which is stored in Financial Accounting. Another reason is that the creation of the sales order updates your company's cash forecast, which is also stored in the Financial accounting module.
• When you create a sales order, Sales and Distribution integrates with the Materials Management module. This is to verify that the ordered material will be available on the requested delivery date.
• Sales and Distribution integrates with the Production Planning module when materials entered on sales orders use a planning strategy, such as make-to-order. When this happens, R/3 automatically creates a production order in the Production Planning module.

Application modules share a common user interface and architecture. They are also navigated in the same way. So in addition to being integrated technically, they have an integrated look and feel.

Other R/3 application modules include:

• Controlling (CO)
• Fixed Asset Management (AM)
• Project System (PS)
• Work flow (WF)
• Industry Solutions (IS)
• Human Resources (HR)
• Plant Maintenance (PM)
• Quality Management (QM)
• Enterprise Controlling (EC)
• Investment Management (IM)
• Treasury (TR)
• Service Management (SM)

When R/3 is first installed, each application module will need to be customized to suit a company's business needs. The groups of employees from a company who implement and configure R/3 are commonly called the project team or the implementation team. Sometimes companies implement a core group of R/3 application modules, and then add additional modules or functionality over time.

Project teams can customize R/3 tables, reports, and interfaces. R/3 project teams configure the application modules to increase the efficiency of a company's business processes. R/3 can process and generate information in several ways.

Batch input is R/3's standard method for entering a large number of records from legacy systems or routine interfaces. The R/3 business work flow links company-specific work processes to the business processes of R/3. The business work flow processing capability is a way an R/3 event can trigger one or a number of other events. Work flow applications control the flow of information and documents from one work center to another.

Let's see how the business work flow applies to handling a customer order. When a user is processing a sales order for a customer who has exceeded their credit limit, a supervisor might need to approve the acceptance of the order. As a result of R/3's business work flow, a message is then sent to the supervisor's inbox. The message informs the supervisor that a sales order is waiting for credit approval (Each user on R/3 has an inbox that is part of the R/3 mail system. This mail system handles internal and external mail, system notifications, and work flow items).

R/3 records business transactions and activities by creating documents for them. This is called the document principle. R/3 uses the document principle to record information for the business activities your company carries out.

A key feature of successful business integration is that information should be entered only once. R/3 facilitates this requirement by rolling information down the business process. Rolling information means that the system copies or transfers data from one document into another, thereby reducing data entry and making problem resolution easier. For example, during the customer order management process, information in the sales order, such as the customer name, materials or services requested, and so on, is copied into the delivery document. And all the information from the sales and delivery document is copied into the invoice.

The management of a company needs to be able to retrace the steps of a business process in order to see what caused a situation. They can do this because all R/3 documents are linked and because R/3 has drill-down capability. Using drill-down capability, one can establish the document numbers of all documents connected to a sales order.

The chain of documents in R/3 is called the document flow. The document flow provides the history and status of related documents in R/3. The output processing capability allows to exchange information between a company's business partners and employees. One way you can use the output processing capability is to send confirmation of an order to a customer. Another way you can use it is to bill a customer for a delivery.

R/3 provides several ways to send and receive information. R/3 provides several ways to send and receive information. These include:

• Print
• Fax
• E-mail
• EDI (EDI is the acronym for Electronic Data Interchange. It is a standard for the transfer of data between companies using networks such as the Internet).

The information that is sent to business partners using R/3 defaults from the electronic documents contained in the R/3 system. For example, much of the information entered on the sales and delivery document is transferred to the invoice.

The conditions processing capability allows a company to decide how R/3 will calculate the values of company-specific data or process a document in the system. Conditions are used to determine prices, discounts, surcharges, requisition release strategies, and work flow output.

Let's say your company manufactures engines and has created a condition to price them. Suppose a customer would like to order engines from your company and that you must create the sales order. Because a condition has been created to price engines, the price of the engines will default into the sales order. This saves you from having to enter a price manually.

The reporting tools in R/3 are flexible and meet internal and external reporting requirements. Reporting tools are useful for analyzing your company's performance so you can develop future business plans. R/3 includes two types of reporting - Standard reporting and Information Systems reporting. Standard reporting allows users to view transaction level data in each R/3 application. Information Systems reporting allows users to view summary-level statistical data from R/3 applications and external applications. This means a single report can display information from different application modules.

One can import data or export R/3 reports to external systems. One can import or export reporting data to and from Microsoft Access, Microsoft Word, Microsoft Excel, and many other applications. One can run reports for the whole of your company or for sections of it. It is possible to create a report for a section of your company by specifying which organizational unit you want to report on. Organizational units identify the hierarchical structure of an organization.

Let's say your company has divisions in the USA, Canada, and the United Kingdom. Each division forms an organizational unit called a "company". A company is an SAP term for an independent legal entity. A company can be further defined into smaller organizational units, such as plants and purchasing organizations.

R/3 provides a number of standard reports. However, one can also define your own reports to display information in a way that suits your company's needs. The archiving capability allows you to transfer information from R/3 onto storage media. To do this, one can use the ArchiveLink application. ArchiveLink is a communications interface between the R/3 system and an optical archive system. This allows you to store R/3 documents on optical disks that can't be overwritten.

Learn the language

It is important before you take your franchise internationally to investigate the language. Make sure you are proficient in the language to ensure that you can communicate effectively with staff members, advertising and marketing agencies and customers

Know the culture

By learning the culture, you will gain insight into the needs and expectations of your new constituency. A Star bucks franchise, for example, has proven to be ill received in Paris, where corner cafes and bistros have held the city since coffee was bought and sold. In order to properly develop and market your franchise, you will need to understand the culture of your country intimately. It's recommended that you spend a few months in the country doing research before making the investment.

Know the city

Many International small business owners develop their business in a part of the city that does not serve the business's needs as well as another part might. It's important to know the city in which you wish to place your franchise before you invest your time and money in construction and marketing. For example, a sandwich shop will do fine in a city suburb, but it will do excellently in a city center during the mid-day lunch rush.

Research your market

Researching your market is similar to getting to know the culture. Researching your market, however, involves investigating numbers and holding focus groups. You can either hire a company to conduct focus groups for you or you can hold informal focus groups on your own. Develop a list of questions, such as, “Would you use this business or product? How often? Why?” By researching your market, you will develop a sense of what your new community needs, seeks and expects. You can then shape your business to meet those demands.

Check with the Franchiser for Rules

Before you head international, make sure you contact your franchiser for their rules. Many franchisers have stipulations about advertising methods, communications and building structures. Make sure you have your plans and building drafts approved prior to settling internationally. It would be a huge set back to obtain a franchise, but not be able to use a building you've purchased because the franchiser has different requirements.

Market your Franchise

Marketing your franchise will largely be up to you. Many franchisers offer marketing packets and tips. You can even purchase sign age for most major franchisers. Yet actually doing the gritty work will be up to you. Send postcards to local residents in the area around your franchise. Consider investing in radio/TV, newspaper and mass transit advertisements. Host an open house or Grand Opening Party to announce your new business.

Most of all - be creative. The reason your franchise will succeed or fail relies largely on your ability to be more creative with your product and marketing than your competitor. Get out there and good luck!

Subway

Subway has over 23,000 franchises around the world and commands an 8% royalty fee from sales. The total investment into the franchise ranges between $70,000 and $220,000 and requires a net worth of $30,000 to $90,000. Subway has been so successful with its franchises partly due to the extensive training and support that it offer franchise owners. Owners are invited to a two week training session at the Subway quarters in over seven countries. Additionally, Subway provides ongoing support in the way of newsletters, meetings, and marketing help.

Curves

Curves has nearly 9,000 franchises around the world, with the majority in the United States. The company requires only a 5% royalty fee and has a modest investment into the company of only $36,400 to $42,900. The company requires a net worth of $75,000 to operate. Curves succeeds at offering one week-long training course at the national headquarters in addition to offering a four-day training course at the franchisee location. Franchise owners are also invited to regional meetings that are full-day, conventions and local events. Curves offers generous marketing help and on-going support to encourage franchise owners to spread the word about the innovative women-only gym.

Quiznos Sub

Quiznos Sub operates about 2,500 Italian sandwich stores around the world. The start-up investment is sizeable - ranging from $208,400 - $243,800, plus a 7% royalty fee. Net worth also must be high - at $125,000 with a $60,0000 cash liquidity requirement. Perhaps because of the high expenses, only about 7% of franchise owners own two or more stores. Quiznos does, however, offer substantial training, including one week at the Quiznos headquarters and a full three weeks at the franchise locations. Quiznos also offers a competitive support package for operations and marketing.

Jackson Hewitt Tax Service

Jackson Hewitt Tax Service has just over 4,000 locations spread out across the US. The tax firm specializes in federal and state taxes and sees clients year-round. The franchise requires a mid-line investment of $51,700-$85,400 and commands a rather large royalty fee of 15%. Net worth requirements must fall between $100,000 and $200,000 and most franchise owners own two or more Jackson Hewitt stores. Training for franchise owners is at a minimum. Jackson Hewitt offers five days at the headquarters and two days at a regional location. The company also offers support such as a newsletter, meeting invitations, Internet and operational materials. Additionally, Jackson Hewitt assists with marketing support in the way of national media and co-op advertising.

The UPS Store

The UPS store franchises nearly 6,000 franchises around the world, including over 4,200 in the US. The total investment is high, ranging from $138,700 - $245,500 with a low royalty fee of only 5%. Net worth also must be high at $150,000 and owners are required to have business and computer experience. Training and support for the UPS franchisee is substantial - with two weeks at the headquarters and two weeks at the franchisee's location. Ongoing support is also available.