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LAWS AFFECTING BUSINESS. Terminating an employee has become a necessary part of a business. When firing an employee you should always remember to legally.

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Presentation on theme: "LAWS AFFECTING BUSINESS. Terminating an employee has become a necessary part of a business. When firing an employee you should always remember to legally."— Presentation transcript:


2 Terminating an employee has become a necessary part of a business. When firing an employee you should always remember to legally cover all their bases so it doesn’t encounter a lawsuit. How to Legally Terminate an Employee

3 Outline the company’s rules and expectations. Inform the employer if performing poorly in a timely manner. Do not fire an employee for poor performance if the employee has no idea that his/her performance is poor. Don’t terminate an employee in the heat of the moment; you’re setting yourself up for a lawsuit. There is also the possibility the employee might respond in an overly emotional way.

4 Terminate the employee privately in a neutral room like a conference room. Always treat the employees with dignity. Keep the meeting short. Don’t begin the meeting with normal small talk. Be honest. The employee should not look surprised by the decision.

5 The Sherman Antitrust Act Passed in 1890, the Sherman Antitrust Act was the first major legislation passed to address oppressive business practices associated with cartels and oppressive monopolies. The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade.

6 The Clayton Act The purpose of the Clayton Act was to give more enforcement teeth to the Sherman Antitrust Act. Passed in 1914, the Clayton Act regulates general practices that may be detrimental to fair competition. Some of these general practices regulated by the Clayton Act are: price discrimination, exclusive dealing contracts, tying agreements, or requirement contracts; mergers and acquisitions; and interlocking directorates.price discrimination mergers

7 Robinson-Patman Act Robinson-Patman Act, passed by the U.S. Congress in 1936 to supplement the Clayton Antitrust Act. The act, advanced by Congressman Wright Patman, forbade any person or firm engaged in interstate commerce to discriminate in price to different purchasers of the same commodity when the effect would be to lessen competition or to create a monopoly.Clayton Antitrust Act

8 Types of Legislation in Businesses Employment Law- Laws that protects employees in the workplace. Consumer Law- Laws that protects consumers in and from businesses. Competitive Law- Protects businesses from other businesses in the market.

9 Examples of Legislation in Businesses Health and Safety at Work Act 1974 (Promises that workers will have a safe premises and machinery to work with) Sex Discrimination Act 1975 (No one shall be discriminated sexually in training, employment, and recruitment) Trade Description Act (Product must perform the way as advertised)

10 Code Of Ethics A code of ethics is a set of guidelines which are designed to set out acceptable behaviors for members of a particular group, association, or in this case a business Many organizations govern themselves with a code of ethics, when dealing with sensitive issues like investments, health care, or interactions with other cultures.

11 A code of ethics can also increase confidence in an organization by showing outsiders that members of the organization are committed to following basic ethical guidelines in the course of doing their work. It should address both the particular nuances of the company's industry as well as its broader goals for social responsibility and should be concrete enough to serve as a guide for employees in a quandary without laying out rules for every situation that could arise

12 Identify legislation affecting the all personal practices. (compensation, promotion, recruitment, selection, termination, and training and development)

13 Job interviews In every job interview, the goal is to obtain important information while building a friendly rapport with the candidate. But you cant get to personal and go over board about the questions you ask. Such examples: Asking what religion do you practice?, or How much longer do you plan to work before you retire? Instead use more broad questions that don’t get to personal but still give you a legit answer like: What days are you available to work? or What are your long-term career goals?

14 Federal Laws Prohibiting Job Discrimination Title VII of the Civil Rights Act of 1964 (Title VII), which prohibits employment discrimination based on race, color, religion, sex, or national origin; the Equal Pay Act of 1963 (EPA ), which protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination; the Age Discrimination in Employment Act of 1967 (ADEA), which protects individuals who are 40 years of age or older; Americans with Disabilities Act of 1990, as amended (ADA), which prohibit employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments; the Civil Rights Act of 1991, which, among other things, provides monetary damages in cases of intentional employment discrimination.

15 Examples of Acts: Age Discrimination in Employment Act – statements or specifications in job notices or advertisements of age preference and limitations. An age limit may only be specified in the rare circumstance where age has been proven to be a bona fide occupational qualification (BFOQ); – discrimination on the basis of age by apprenticeship programs, including joint labor-management apprenticeship programs; and – denial of benefits to older employees. An employer may reduce benefits based on age only if the cost of providing the reduced benefits to older workers is the same as the cost of providing benefits to younger workers. Equal Pay Act – The EPA prohibits discrimination on the basis of sex in the payment of wages or benefits, where men and women perform work of similar skill, effort, and responsibility for the same employer under similar working conditions. Employers may not reduce wages of either sex to equalize pay between men and women. – A violation of the EPA may occur where a different wage was/is paid to a person who worked in the same job before or after an employee of the opposite sex. – A violation may also occur where a labor union causes the employer to violate the law.

16 Active Leaders Understand the needs and characteristics of each person in the group. Fulfill work responsibilities. Passion drives a lot, and you can inspire so much in others through your own passion and enthusiasm. A great leader needs to be able to delegate effectively. Pay attention and listen carefully to the input of each member of the group. A popular leadership trend since the 1980s has been to encourage employee participation in problem solving and decision making. By obtaining and considering the suggestions of others, a leader has access to more data, experience and opinions. Great communicator. Great leaders are followers too. If you’re a leader without following, you’re a dictator.

17 Inactive Leaders  Tend to react to a daily work challenge after someone tells them about it, whereas the active leader proactively seeks out obstacles.  A disorganized leader isn’t leading, he’s chasing his own tail.  If all you want to do is talk, you’re not a leader.  You aren’t in it to win it, your just there to get by.  Uses power to serve there self.  In-groups vs. Out-groups  Fear Tactics

18 Micromanagemen t To manage or control with excessive attention to minor details. The people that are hired to do certain jobs inside of the business have certain skills, and those skills need to be taken advantage of. “Hey, go-getter. Yes, you could do it all, but there are times it's best to step back and stop stifling your team's productivity and creativity.”


20 Culture In A Workplace 1. Understanding Who They Are and What Drives Them – Each company is like an individual, everyone has different ways of doing things. – When starting in a workplace, understand the business’s vision and mission. 2. Flexibility – Businesses are constantly making changes, and that means having to interfere with one thing to get the most important priorities done first. – Usually business have to cancel things they had planned in order to meet customers needs and demands. 3. Commitment to Individual and Collective Success – Businesses have to be committed to their employees in order to achieve success – Employees are relying on their workplace for their education and experience

21 Diversity in a workplace Respecting individuals differences can increase productivity and reduce any problems. Diversity is critical for an organizations success. Diversity doesn’t need to mean race and ethnicity, it can also be used as each single employees qualities that make the organization grow and succeed. Different views from each person to make a judgment about a topic. Ignoring diversity can issue time, money, and efficiency. Diversity increases organizations sales and ignoring it you can lose valuable workers.

22 Leading Leaders do not tell other people what to do, they help others to take charge. Concern not only about goals but also about the people. Many leaders inspire others to follow by setting an example. A leader builds people’s confidence. Must have clear vision, effectively communicate, also have a strategy in mind to make the vision reality.

23 Managing Managers are task oriented. They supervise and direct work flow. Tend to be more concerned about the process and the results. Often focus on goals, structures, and resources. Managers get paid to get things done. Managers have stability.

24 We must find places to “unplug” ourselves when personal communication presents itself. Guidelines must be established for technology. When you receive a new device, it is best to play around and explore its many features. Get used to its functions before using it. “Check Your Guns At the Door” – This means that all cell phones, pagers, laptops, etc. have to be turned off. – Make it easier for people to do without their gadgets, and harder for them to come up with excuses. Technology

25 When To “Unplug” Do not drive distracted. Use a land-line whenever possible. Use capitals and proper spelling and grammar, even on a PDA. Devote your full attention to people you’re in the room with, (dining companions, coworkers in a working session, the facilitator and other team members in a meeting, etc.) unless you excuse yourself. If you must take a call, excuse yourself and leave the room until you are finished.. Do NOT distract others in public places where they might be concentrating or enjoying the experience (parks, performances, libraries, etc.).

26 Set Your Own Guidelines (cont’d) Silent Only – Put all of your devices on “silent”. – In other words, SHUT YOUR TECH UP! Technology Free Zones – Designate certain areas as “technology free” or at least “silent” at all times, such as break rooms, libraries, family dining areas, etc.

27 What is Outsourcing? Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in- house employees. Examples: call center services, e-mail services, and payroll

28 Why do we outsource? There are many reasons that companies outsource different jobs, but the biggest reason is that it saves money. Many of the companies that provide outsourcing services are able to do the same amount of work for less money, because they don't have to provide benefits to their workers and have fewer expenses to worry about. Depending on location, it may also be more affordable to outsource to companies located in different countries.

29 Types of Outsourcing Business Process Outsourcing: When a particular process task is outsourced. The most common type of BPO is customer oriented work which is work that is related to customer service such as marketing, answering calls, and technical support. The other type is internal work is what occurs behind the scenes of a business like billing and purchase. Knowledge Process Outsourcing: Is when businesses outsource work that needs higher levels of involvement from the worker. Some example of this are pharmaceutical research and development, patent/ intellectual property research, animation and simulation.

30 Impact of Outsourcing Outsourcing is as much a regional issue as it is a national concern Some companies prefer to outsource while others think it is a very bad idea Outsourcing saves money but also creates jobs overseas instead of in America The country with the highest percentage of outsourcing is India. IBM, Microsoft, Coca-Cola, Hewlett Packard, and οtһеr industry giants һаνе opted tο outsource

31 Positive Stressors for Employees Deadlines: Giving employees an allotted time to complete a task helps everyone to be productive. Enforcing policies- keep a firm policy so that all employees are pushed to avoid breaking any policies. Comfortable working atmosphere- Temperatures, sound etc are at a manageable level to be more productive. Benefits- relieve some stress about the workers fear of protection for their families.

32 Negative Stress for Employees Work overload: creating deadlines that are impossible for anyone to achieve. Overly Strict policies: policies that give no leeway at all give fear to employees so they will push themselves at a dangerous level when they are sick etc. Uncomfortable atmosphere- temperatures, sound etc, at an uncomfortable level without compensation for it (ex: ear plugs). Fear of losing ones job- need for job security.

33 Positive Stressors for Owners Having responsible workers that you can count on to achieve the tasks asked of them. Creating rewards or incentives to keep the employees happy and doing their job. Creating opportunities for employees to be innovative and creative to give you ideas on how to better the company. Deadlines- help make sure the owner is pushing everyone else to meet their deadlines so you can to. Organizing a plan, stress to get it done but breaking up the work into smaller sections.

34 Negative Stressors for Owners Constant defiance of policies by workers. Assuming sole responsibility for the company (mainly financially). Constant mistrust of the employees. Appropriate delegation to the workers. Over extending yourself, trying to have a hand in everything a worker does.

35 Objective Evaluation: Objective Evaluation :is based on factors that can be quantified, scores that can be measured and results that can be clearly tabulated. The biggest advantage of objective evaluation is that the employee cannot accuse the supervisor of being partial. It is based off of performance no bias involved. The work undertaken by the employee and his actions alone will influence the results of an objective evaluation.

36 Subjective Evaluation: Subjective Evaluation criteria includes assessing the quality of work and the attitude of the employee. Initiative, dependability, effective communication and proactive exchange of information are key performance indicators that would influence the outcome of a subjective evaluation.


38 Workplace Manners Office Etiquette or Office Manners is about conducting yourself respectfully and courteously in the office or workplace First impressions are important! You are the ambassador/s of the business

39 Examples of Workplace Manners Always act with honesty and dignity Chewing gum and popping bubble gum in the presence of co-workers is neither cool nor dignified Wear appropriate office attire; No cut off’s, Short shorts, Low cut shirts, flip flops be sure to shower regularly and use a suitable deodorant The essence of good manners and etiquette is to be respectful and courteous at all times and with everybody

40 Soft Skills Soft skills are personal attributes that enhance an individual's interactions, job performance and career prospects Unlike hard skills, soft skills are interpersonal and broadly applicable Soft skills are often described by using terms often associated with personality traits, such as: optimism common sense responsibility a sense of humor Integrity More simply soft skills are the “common sense” skills applicable in the workplace

41 Styles of leadership Autocratic Leadership Is the leadership form of, to a basic level, dictatorship. The Autocratic leader exerts there power on there employees with little room for there input. It is effective for unskilled jobs but for other jobs it often leads to high employee turn over, absenteeism, and a loss of benefits from teamwork.

42 Bureaucratic Leadership A Bureaucratic leader makes the employees work by the book. It is effective for jobs with risk involved such as jobs with toxic substances involved or high places. The down falls of this leadership style involve a demoralized staff and a diminish organization ability to react to external changes.

43 Laissez-Faire Leadership Laissez-Faire is a French term for “leave it be” This leadership style involves letting your employees work on there own. Often a leader would monitored the progress the employees make and communicate it back to them. This is a good form of leadership for some skilled employees but it can lead to a leader not exerting enough control.

44 Democratic Leadership This form of leadership involves taking your employees ideas and wants into consideration when making decisions. This often encourages teamwork in the work place as well as encourages harder working employees. This form of leadership is good where teamwork is essential but time is not.

45 Etiquette in The Workplace Office etiquette or Office manners is about conducting yourself respectably and courteously in the office or workplace.

46 Good Office Manners Always act with honesty and dignity Be neat, clean and conservative Show respect for other people’s workspace Show appreciation Be helpful and co-operative with other workers Aim to improve your other work skills Say “Please”, “Thank you”, “You’re welcome.” Take responsibility for your mistakes, apologize and go about correcting the mistake. Make new employees welcome Show consideration for others Keep work area tidy Have cell phone turned on silent Wear approiate clothes

47 Bad Office Manners Do not cough or sneeze in someone’s direction Do not interrupt while someone is speaking Do not gossip about other workers Do not sell things to other workers Do not take your IPod to work Avoid sexist remarks Never blame someone else for your mistake Do not arrive late for a meeting Never be petty Do not dominate a meeting

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