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a. Compare two features of a centralised approach and a decentralised approach to employee relations - VCE - SSCE Business Management - Question 5 - 2016 - Paper 1
Question 5
a. Compare two features of a centralised approach and a decentralised approach to employee relations.
Worked Solution & Example Answer:a. Compare two features of a centralised approach and a decentralised approach to employee relations - VCE - SSCE Business Management - Question 5 - 2016 - Paper 1
Step 1
Feature 1: Pay and Conditions of Employment
Answer
Both the centralised and decentralised approaches deal with the pay and conditions of employment for employees. In a centralised approach, the setting of pay scales and working conditions is handled by a central authority for the entire industry, ensuring uniformity. In contrast, the decentralised approach allows individual organisations to establish their own pay scales and conditions, which can lead to greater flexibility but also inconsistency across the industry.
Step 2
Feature 2: Resolution of Disputes
Answer
Both approaches involve methods for resolving disputes. In the centralised approach, disputes often go directly to a central authority, such as the Fair Work Commission, providing a structured and formal resolution process. On the other hand, the decentralised approach tends to emphasize internal resolution processes within the organisation, which may promote quicker and more tailored resolution strategies but can also lead to variability in outcomes.