Mondy hrm13 inppt13.ppt

Copyright © 2014 Pearson Education, Inc.

Human Resource Management 13th Edition

Chapter 13Internal Employee Relations

13-1Copyright © 2014 Pearson Education, Inc.


Learning Objectives • Describe the importance of worker retention and

define internal employee relations.• Explain the concept of employment at will.• Explain discipline and disciplinary action.• Describe the disciplinary action process, discuss

the various approaches to disciplinary action, and describe the problems in the administration of disciplinary action.

• Explain the need for emotional intelligence in conducting disciplinary action.

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Learning Objectives (Cont.)• Describe terminations, explain termination of

employees at various levels, and explain demotion as an alternative to termination.

• Describe downsizing and explain the use of ombudspersons and alternative dispute resolution.

• Describe transfers, promotions, resignations, and retirements as factors involved in internal employee relations.

• Explain problems with conducting disciplinary action in the global environment.

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HRM in Action: Worker Retention

• During recession, it is easy to forget that talent retention is critical

• Company must have ongoing strategy to retain valued employees

• Virtually every topic in text can be viewed in some manner as being part of retention strategy

• Provide means of preventing person from seeking job with competitor and remaining with firm

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Internal Employees Relations Defined

Human resource activities associated with movement of employees within firm after they become organizational members

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Internal Employee Relations Activities

• Discipline• Termination• Downsizing• Demotion• Transfer• Promotion• Resignation• Retirement

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Employment at Will

• Unwritten contract created when employee agrees to work for employer

• No agreement as to how long parties expect employment to last

• Approximately 2 of every 3 U.S. workers depend almost entirely on continued goodwill of employer

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Not Included

• Individuals with a contract for a specified time period

• Those with collective bargaining agreements

• Those with annualcontracts (i.e., teachers)

• Whistleblowers

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Exceptions to Employment-at-Will Doctrine

• Prohibiting terminations in violation of public policy

• Permitting employees to bring claims based on representations made in employment handbooks

• Permitting claims based on common-law doctrine of good faith and fair dealing

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How Employers Can Protect Themselves

• No statements suggesting job security or permanent employment

• No statements during job interviews that suggest a promise, such as, “You can expect to hold this job as long as you want”

• No hiring without a signed acknowledgment of at-will disclaimer

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How Employers Can Protect Themselves (Cont.)

• Clearly defining worker’s duties

• Providing good feedback on regular basis

• Conducting realistic performance appraisals on regular basis

• No law involving ethical considerations for employment-at-will

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Discipline and Disciplinary Action

• Discipline: State of employee self-control and orderly conduct

• Disciplinary action: Invokes penalty against employee who fails to meet established standards

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Effective Disciplinary Action

• Addresses employee’s wrongful behavior, not employee as a person

• Should not be applied haphazardly

• Not usually management’s initial response to a problem

• Normally are more positive ways of convincing employees to adhere to company policies

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The Disciplinary Action Process

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Set Organizational Goals

Establish Rules

Communicate Rules to Employees

Take Appropriate Disciplinary Action

Observe Performance

Compare Performance with Rules

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT


Disciplinary Action

• Word discipline comes from word disciple – Translated from Latin, it means to teach

• Intent should be to ensure recipient sees disciplinary action as learning process

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Approaches to Disciplinary Action

• Hot stove rule• Progressive disciplinary

action

• Disciplinary action without punishment

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Hot Stove Rule

• Burns immediately

• Provides warning

• Gives consistent punishment

• Burns impersonally

• Problem: All situations are not the same

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Progressive Disciplinary Action

• Ensures minimum penalty appropriate to offense is imposed

• Model developed in response to National Labor Relations Act of 1935

• Involves answering series of questions about severity of offense

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The Progressive Disciplinary Approach

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Improper Behavior

Does this violation warrant disciplinary actions?

Does this violation warrant more than an oral warning?

Does this violation warrant more than a written warning?

Does this violation warrant more than a suspension?

Termination

Yes

Yes

Yes

Yes

Yes

No Disciplinary Action

Oral Warning

Written Warning

Suspension

No

No

No

No


Suggested Guidelines for Disciplinary Action

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Offenses Requiring First, an Oral Warning; Second, a Written Warning; and Third, Termination

Negligence in the performance of duties Unauthorized absence from job Inefficiency in the performance of job

Offenses Requiring a Written Warning; Second, Termination

Sleeping on the job Failure to report to work one or two days in a row without notification Negligent use of property

Offenses Requiring Immediate Termination

Theft Fighting on the job Falsifying time cards Failure to report to work three days in a row without notification


Disciplinary Action Without Punishment

• Process of giving worker time off with pay to think about whether he/she wants to follow rules and continue working for company 1. Employee violates rule, manager issues oral

reminder

2. Repetition brings written reminder

3. Third violation: Worker takes 1-3 days off (with pay) to think about situation

• Important that all rules are explicitly stated in writing

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Disciplinary Action Advice

• Managers often avoid disciplinary action, even when it is in company’s best interest

• Many supervisors may be too lenient early in disciplinary action process and too strict later

• Proper time and place to administer disciplinary action is crucial

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Trends & Innovations: Emotional Intelligence Needed in Disciplinary

Action

• Ability to recognize and manage emotions

• Capacity for recognizing own feelings and those of others

• Quality needed in disciplinary action

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Termination

• Most severe penalty; should be most carefully considered– Termination of non-managerial and non-

professional employees– Termination of executives– Termination of middle- and lower-level

managers and professionals

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Termination of Non-Managerial/ Non-Professional Employees

• If firm is unionized, termination procedure is well defined in labor agreement.

• Nonunion workers can generally be terminated more easily.

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Termination of Executives

• Economic

• Reorganization

• Downsizing

• Philosophical differences

• Decline in productivity

• No formal appeals procedure

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Termination of Middle- and Lower-Level Managers and Professionals

• In past, most vulnerable and neglected group with regard to termination

• Not members of union or protected by labor agreement

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Demotion as Alternative to Termination

• Demotions may be used as alternative to discharge

• Process of moving worker to lower level of duties and responsibilities, usually involving reduction in pay

• Usually spelled out clearly in the labor–management agreement

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Downsizing

• Also known as restructuring and rightsizing

• Reverse of company growth

• Suggests one-time change in organization and number of people employed

• Both organizational structure and number of people in organization shrink for purpose of improving organizational performance

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System Used in the Event of Downsizing

• Unionized: Seniority is usually the basis

• Nonunion: Productivity is the primary factor

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Negative Aspects of Downsizing

• Natural grieving period; desire to go back to way things used to be

• Layers removed, making advancement in organization more difficult

• Workers may seek better opportunities, fearing they may be in line for layoffs

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Negative Aspects of Downsizing (Cont.)

• Employee loyalty significantly reduced • Institutional memory lost• Remaining workers required to do more • When demand for products or services

returns, firm may realize it has cut too deep

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Worker Adjustment and Retraining Notification Act (WARN)

• Requires covered employers to give 60 days advance notice before ordering plant closing or mass layoff

• Generally include those with at least 100 full-time employees

• Penalties for WARN notice violations include liability to each affected worker for back pay and benefits for up to 60 days

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Outplacement

• Laid-off employees are given assistance in finding employment elsewhere

• Companies use outplacement to take care of employees by moving them successfully out of company

• Firm tries to soften the impact of displacement

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Severance Pay

• Compensation designed to assist laid-off employees as they search for new employment

• No federal law requires severance • Between 70–80% of employers offer severance• Typically provide 1–2 weeks of severance pay

for every year of service, up to some predetermined maximum

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Ombudsperson

• Complaint officer with access to top management

• Hears employee complaints, investigates, and recommends appropriate action

• Impartial, neutral counselor who gives employees confidential advice

• Typically independent of line management and reports near or at top of organization

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Alternative Dispute Resolution

• Procedure where employee and company agree problems will be addressed by agreed upon means ahead of time

• Includes arbitration, mediation, mini-trials, and ombudspersons

• Uses range from racial, gender, and age discrimination to unfair firings

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Alternative Dispute Resolution (Cont.)• Presidential EO requires federal agencies to:

1. Promote greater use of mediation, arbitration, early neutral evaluation, agency ombudspersons, and other alternative dispute resolution techniques

2. Promote greater use of negotiated rulemaking

• Circuit City v Adams: Supreme Court ruling greatly enhanced employer’s ability to enforce compulsory alternative dispute resolution agreements

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Transfers

• Lateral movements of workers within organization

• Should not imply that person is being either promoted or demoted

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Transfers Serve Several Purposes

• Necessary to reorganize

• Make positions available in primary promotion channels

• Satisfy employees’ personal desires

• Deal with personality clashes

• Provide wide variety of experiences necessary before achieving promotion

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Promotion

• Movement to higher level in company• One of the most emotionally charged

words in human resource management

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Resignation

• Certain amount of turnover is healthy

• Most qualified employees are often the ones who resign

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Analyzing Voluntary Resignations

• Exit interview: Means of revealing real reasons employees leave jobs; conducted before employee departs company

• Post-exit questionnaire: Sent to former employees several weeks after leaving organization to determine real reason employee left

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Attitude Surveys: Means of Retaining Quality Employees

• Seek employee input to determine feeling about such topics as:– Work environment– Opportunities for advancement– Firm’s compensation system– Their supervisor– Training and development opportunities

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Advance Notice of Resignation

• Two weeks notice• Communicate policy to all employees• May pay employee for notice time and

ask him/her to leave immediately

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Offboarding

• Involves exit interviews, removing access to company property, and other services involved in workers leaving the company

• Numerous risks in termination process• Important to establish fair and uniform

process as employees leave company

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Retirement

Many long-term employees leave organization through retirement

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Phased Retirement

• Any arrangement that allows employees to move from full-time work to no paid work in stages

• More likely to be used among consulting firms, educational institutions, health care, private practice, wholesale/distribution, and other similar organizations

• Pension Protection Act permits limited phased retirement by allowing in-service pension plan withdrawals to begin at age 62 rather than 65

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A Global Perspective: Administering Disciplinary Action in the Global

Environment

• Moving into international arena, often presents different disciplinary action situations

• Much harder to terminate person in Europe than in North America

• Difficult for global company to establish standardized policy on disciplinary action

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