INTERNAL EMPLOYEE RELATIONS 1

Chapter Objectives  Discuss the case for and against downsizing  Explain discipline and disciplinary action  Describe internal employee relations  Explain how grievance handling is typically conducted  Describe how termination conditions may differ with regard to non-managerial employees, executives, managers, and professionals 2

Chapter Objectives (Continued)  Explain the concept of employment at will  Discuss layoffs in today’s workforce  Describe transfers, promotions, resignations, and retirements as factors involved in internal employee relations  Discuss exit interviews and its purpose  Discuss layoffs in today’s workforce 3

Downsizing  What does it mean?  Why do organizations downsize?  What are possible outcomes? 4

Downsizing Outcomes  Creates low morale  Employees start seeking better opportunities  Employee trust is reduced  Corporate culture suffers  Remaining employees are required to do more 5

Internal Employees Relations Human Resource activities associated with movement of employees within the organization 6

Discipline and Disciplinary Action  Discipline - State of employee self- control and orderly conduct  Disciplinary action -Invokes a penalty against an employee who fails to meet established standards 7

The Disciplinary Action Process  Consider internal and external environment  Organizational goals and values  Establish rules/policies  Communicate rules to employees  Observe performance  Compare performance with rules/policies  Take appropriate disciplinary action 8

Suggested Guidelines for Disciplinary Action 9 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

Approaches to Disciplinary Action  Hot stove rule  Progressive disciplinary action  Disciplinary action without punishment 10

Hot Stove Rule  Burns immediately  Provides warning  Gives consistent punishment 11

Progressive disciplinary action Ensure minimum penalty appropriate to offense is imposed Model developed in response to Employment Act 1955 Involves answering series of questions about severity of offense

Disciplinary action without punishment Process of giving worker time off with pay to think about whether he or she wants to follows the rules and continue working to the company Employee violets rule, manager issues oral reminder Repetition brings written reminder Eg: 1-3 days off (with pay) to think about the situation

The Progressive Disciplinary Approach 14 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

Problems in the Administration of Disciplinary Action  Lack of training  Fear  Guilt  Loss of friendship  Loss of temper  Rationalization 15

Grievance and The Procedure  An employee’s dissatisfaction related to his or her employment  Process for employees to communicate a formal complaint 16

Termination  Most severe penalty; should be most carefully considered  Termination of non managerial employees  Termination of executives  Termination of middle- and lower- level managers and professionals 17

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 a reduction in pay 18

Employment at Will  Unwritten contract created when employee agrees to work for employer  No agreement as to how long parties expect the employment to last 19

Layoffs in Today’s Environment  Layoff/recall procedures  Outplacement 20

Layoff/Recall Procedures  Carefully constructed procedures should be developed  When unionized, procedures are stated clearly in labor-management agreement  Agreement may have bumping procedure  Recall procedures also stated in agreement – seniority 21

Outplacement  Laid-off employees given assistance finding employment elsewhere  Career Management  Career Coaching  Retooling of ones background 22

Employee Relations  Transfers  Promotions  Resignations – Exit Interview  Retirements 23