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© 2008 by Prentice Hall13-1 Human Resource Management 10 th Edition Chapter 13 INTERNAL EMPLOYEE RELATIONS.

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Presentation on theme: "© 2008 by Prentice Hall13-1 Human Resource Management 10 th Edition Chapter 13 INTERNAL EMPLOYEE RELATIONS."— Presentation transcript:

1 © 2008 by Prentice Hall13-1 Human Resource Management 10 th Edition Chapter 13 INTERNAL EMPLOYEE RELATIONS

2 © 2008 by Prentice Hall13-2 HRM in Action: Continuous Background Checking Not just for pre-employment any more Few employers are screening their employees on an ongoing basis People and events are ever-changing Examples: Financial devastation, marital collapse or a medical crisis can send a person with the cleanest record over the edge

3 © 2008 by Prentice Hall13-3 Internal Employees Relations Defined Human resource activities associated with movement of employees within firm after they become organizational members

4 © 2008 by Prentice Hall13-4 Internal Employees Relations Activities Promotion Transfer Demotion Resignation Discharge Layoff Retirement Discipline Disciplinary action

5 © 2008 by Prentice Hall13-5 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

6 © 2008 by Prentice Hall13-6 Not Included Individuals with a contract for a specified time period - collective bargaining agreements between labor and management and teachers Whistleblowers

7 © 2008 by Prentice Hall13-7 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 the common- law doctrine of good faith and fair dealing

8 © 2008 by Prentice Hall13-8 How Employers Can Protect Themselves No statements suggesting job security or permanent employment Avoiding statements during job interviews, such as “You can expect to hold this job as long as you want” - Could be considered a contractual agreement A person should not be employed without a signed acknowledgment of the at-will disclaimer

9 © 2008 by Prentice Hall13-9 How Employers Can Protect Themselves (Cont.) Clearly defining worker’s duties Providing good feedback on a regular basis Conducting realistic performance appraisals on a regular basis There is no law involving ethical considerations for employment-at-will

10 © 2008 by Prentice Hall13-10 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

11 © 2008 by Prentice Hall13-11 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, there are more positive ways of convincing employees to adhere to company policies

12 © 2008 by Prentice Hall13-12 The Disciplinary Action Process Set Organizational Goals Establish Rules Communicate Rules to Employees Take Appropriate Disciplinary Action Observe Performance Compare Performance with Rules EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

13 © 2008 by Prentice Hall13-13 Disciplinary Action Word discipline comes from word disciple Translated from Latin, it means, to teach Intent of disciplinary action should be to ensure recipient sees disciplinary action as learning process

14 © 2008 by Prentice Hall13-14 Approaches to Disciplinary Action Hot stove rule Progressive disciplinary action Disciplinary action without punishment

15 © 2008 by Prentice Hall13-15 Hot Stove Rule Burns immediately Provides warning Gives consistent punishment Burns impersonally Problem - All situations are not the same

16 © 2008 by Prentice Hall13-16 Progressive Disciplinary Action Ensure minimum penalty appropriate to offense is imposed Model developed in response to National Labor Relations Act (NLRA) of 1935 Involves answering series of questions about severity of offense

17 © 2008 by Prentice Hall13-17 The Progressive Disciplinary Approach 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 No Disciplinary Action Oral Warning Written Warning Suspension No

18 © 2008 by Prentice Hall13-18 Suggested Guidelines for Disciplinary Action 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; and Then Termination Sleeping on the job Failure to report to work one of 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

19 © 2008 by Prentice Hall13-19 Disciplinary Action without Punishment Process of giving worker time off with pay to think about whether he or she wants to follow the rules and continue working for company Employee violates rule, manager issues oral reminder Repetition brings written reminder Third violation: Worker takes 1, 2 or 3 days off (with pay) to think about situation Important all rules explicitly stated in writing

20 © 2008 by Prentice Hall13-20 Problems in Administration of Disciplinary Action Lack of training Fear The only one Guilt Loss of friendship Time loss Loss of temper Rationalization

21 © 2008 by Prentice Hall13-21 Disciplinary Action Advice Managers often avoid disciplinary action, even when it is in company’s best interest Some managers believe that even attempting to terminate women and minorities is useless Proper time and place to administer disciplinary action Many supervisors may be too lenient early in disciplinary action process and too strict later

22 © 2008 by Prentice Hall13-22 Grievance Handling Under Collective Bargaining Agreement Grievance - Employee’s dissatisfaction or feeling of personal injustice relating to employment Grievance procedure - Formal, systematic process that permits employees to express complaints without jeopardizing their jobs

23 © 2008 by Prentice Hall13-23 Grievance Procedure Assists management in seeking out underlying causes of and solutions to grievances Virtually all labor agreements include some form of grievance procedure Normally well defined Usually restricted to violations of terms and conditions of agreement

24 © 2008 by Prentice Hall13-24 General Principles for Effective Grievance Administration Grievances should be adjusted promptly. Procedures and forms used for airing grievances must be easy to utilize and well understood by employees and their supervisors. Direct and timely avenues of appeal from rulings of line supervision must exist

25 © 2008 by Prentice Hall13-25 A Multiple-Step Grievance Procedure Arbitrator International Representative, Local President, etc. President, Vice President for Labor Relations, etc. Plant Manager, Personnel Manager, etc. First-Line Supervisor Grievance Committee, Business Agent, etc. Union Steward Aggrieved Employee To Impartial Third Party Grievance in Writing Oral Presentation

26 © 2008 by Prentice Hall13-26 Arbitration Parties submit dispute to impartial third party for binding resolution Final step in most grievance procedures Union and company select arbitrator Courts will generally enforce arbitrator’s decision

27 © 2008 by Prentice Hall13-27 Factors Arbitrator May Use to Evaluate Fairness of Managements Actions Nature of offense Due process and procedural correctness Double jeopardy Past record of grievant Length of service with company Knowledge of rules Warnings Lax enforcement of rules Discriminatory treatment

28 © 2008 by Prentice Hall13-28 Formats of Written Warnings Statement of facts concerning offense Identification of rule that was violated Statement of what resulted or could have resulted because of violation Identification of any previous similar violations by same individual Statement of possible future consequences should violation occur again Signature and date

29 © 2008 by Prentice Hall13-29 Example of a Written Warning Date: August 1, 2007 To: Judy Bandy From: Wayne Sanders Subject: Written Warning We are quite concerned because today you were thirty minutes late to work and offered no justification for this. According to our records, a similar offense occurred on July 25, At that time, you were informed that failure to report to work on time is unacceptable. I am, therefore, notifying you in writing that you must report to work on time. Please sign this form to indicate that you have read and understand this warning. Signing is not an indication of agreement. Name Date

30 © 2008 by Prentice Hall13-30 Grievance Handling in Union-free Organizations Most large and medium sized nonunion firms have established formal grievance procedures Means of resolving complaints varies

31 © 2008 by Prentice Hall13-31 Trends & Innovations: Alternative Dispute Resolution Procedure where employee and company agree problems will be addressed by agreed upon means ahead of time Arbitration, mediation, mini-trials, and ombudspersons used Uses range from racial, gender, and age discrimination to unfair firings

32 © 2008 by Prentice Hall13-32 Trends & Innovations: 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, and (2) promote greater use of negotiated rulemaking Circuit City v Adams - Greatly enhanced employer’s ability to enforce compulsory alternative dispute resolution agreements

33 © 2008 by Prentice Hall13-33 Ombudspersons Complaint officer with access to top management hears employee complaints, investigates, and recommends appropriate action Impartial, neutral counselors give employees confidential advice about problems ranging from abusive managers to allegations of illegal corporate activity Typically independent of line management and reports near or at top of organization

34 © 2008 by Prentice Hall13-34 Termination Most severe penalty; should be most carefully considered Termination of nonmanagerial/ nonprofessional employees Termination of executives Termination of middle- and lower-level managers and professionals

35 © 2008 by Prentice Hall13-35 Termination of Nonmanagerial/Nonprofessional Employees If firm unionized, termination procedure well defined in labor agreement Non-Union workers can generally be terminated more easily

36 © 2008 by Prentice Hall13-36 Termination of Executives Economic Reorganization/downsize Philosophical differences Decline in productivity No formal appeals procedure

37 © 2008 by Prentice Hall13-37 Termination of Middle- and Lower- Level Managers and Professionals In past, most vulnerable and neglected group with regard to termination Not members of union nor protected by labor agreement

38 © 2008 by Prentice Hall13-38 Demotion as Alternative to Termination Demotions used as alternative to discharge Demotion is process of moving worker to lower level of duties and responsibilities, usually involving reduction in pay

39 © 2008 by Prentice Hall13-39 Transfers Lateral movement of worker within organization Should not imply that person is being either promoted or demoted

40 © 2008 by Prentice Hall13-40 Transfers Serve Several Purposes Necessary to reorganize Make positions available in primary promotion channels Satisfy employees’ personal desires Deal with personality clashes Becoming necessary to have wide variety of experiences before achieving promotion

41 © 2008 by Prentice Hall13-41 Promotion Movement to higher level in company One of the most emotionally charged words in human resource management

42 © 2008 by Prentice Hall13-42 Resignation Exit interview Advance notice of resignation

43 © 2008 by Prentice Hall13-43 Analyzing Voluntary Resignations Exit interview - Means of revealing real reasons employees leave jobs which is conducted before employee departs company Postexit questionnaire - Sent to former employees several weeks after leave organization to determine real reason the employee left.

44 © 2008 by Prentice Hall13-44 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

45 © 2008 by Prentice Hall13-45 Advance Notice of Resignation Would like 2 weeks Communicate policy to all employees May pay employee for notice time and ask him/her to leave immediately

46 © 2008 by Prentice Hall13-46 Retirement Many long-term employees leave organization through retirement

47 © 2008 by Prentice Hall13-47 A Global Perspective: Getting Information to Support Disciplinary Action Multinational companies face significant challenges when they try to encourage whistle-blowing across a wide variety of cultures Number of cultural factors that discourage international employees from reporting misconduct

48 © 2008 by Prentice Hall13-48

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