Essays on Australian Chamber of Commerce and Industry Approach to Reward Management Case Study

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The paper 'Australian Chamber of Commerce and Industry Approach to Reward Management" is a good example of a management case study. Reward management process is a challenging responsibility both at the industry and national levels in the economy. Without proper reward management strategies in place, the economic imbalance can be ignited leading to problems of unemployment, high inflation, glut and low productivity. A clear understanding of the underlying reasons for rewarding should not be ignored since it gives value to whichever strategy applied. Reward management is, therefore, a very crucial aspect of the employer-employee relationship since it forms its point of interaction (Geoff 2000).

Contemporary rewarding options should thus not focus more on the short term relationships with employees, but instead, extend beyond pay increases to include psychological contracting. For players enhancing reward management at national levels, a holistic approach is essential since variables involved are more diverse while goals are conflicting and stakeholders are fierce, this leads to a mediation kind of reward management approach (Bratton 2003). Rewards management is, therefore, an integral part of the economic processes which requires meticulous care and approach. Australian Council of Trade unions approach to reward management Australian Council of Trade Unions – ACTU- is a union representing most of the Australian workforce and just like any other collective bargaining vehicle, it advocates for the best interest of employees (Blyton 2000).

ACTU’ s submission is basically advocating for a minimum wage increase that is based on dollar increase and not percentage increase. This is further justified by that fact that this increase will qualify the objective of the minimum wage increase since it benefits the low-income gap. Submissions ACTU was advocating for an increase in the minimum wages both in the modern awards and minimum wage orders by $27 per week.

This increment was to apply for all transitional wage instruments and to schedule 2B awards. ACTU proposed that the effective date of the above changes be on 1st July 2010 arguing that employers have had enough time to prepare for these awards. ACTU was of the view that there had been an improvement in the economy of Australia after the economic downtime; consequently, employees ought to be rewarded so as to match the productivity levels. ACTU was also of the opinion that moderate and predictable wage increases were good for inflation, employment, productivity growth and international business competitiveness. ACTU did advocate for the minimum wage increment for the low income earning as a means of social inclusion and restoration of relative living standards Analysis From the ACTU’ s submission, it is clear that the role of ACTU in reward management is very critical.

Reward management involving the process of creating incentives to employees so that they could improve their productivity and increase their job satisfaction levels.

ACTU’ s approach has more to do with total reward strategies. This involves consideration of pay increase and benefits, in this sense, the aspect of productivity based rewards are not on their agenda. This kind of systems would also like to link employee wages to the market (Armstrong 2005). Advocating for a uniform minimum wage is a recipe for low productivity and reluctance by some of the employees to work. The role of a union like ACTU is just to assist in negotiating for the level of reward, distribution for the agreed levels and advocate generally for equal pay for all jobs that are of equal value.

The ACTU reward strategy is therefore not very productive for the industry but essential for employees’ welfare since it focuses more on the welfare and social needs of the employees neglecting the one side of the labour market.


Armstrong, M & Stephens, T 2005, A Handbook of Employee Reward Management and Practice, Kogan Page, Thousand Oaks.

Blyton, P & Turnbull, P 2000, Reassessing human resource management, Sage Publications, Canberra.

Bratton, J & Gold, J 2003, Human Resource Management: Theory and Practice, Macmillan, Sydney.

Geoff, W & Jan, D 2000, Reward management: a critical text, Routledge, Melbourne.

Horman, G & Thorpe, R 2000, Strategic Reward Systems, FT Prentice Hall, Thousand Oaks.

Shields, J 2007, Managing employee performance and reward: concepts, practices, strategies, Cambridge University Press, London.

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