INTERNAL EMPLOYEE RELATIONS Chapter 13 © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–1

Internal Employees Relations Defined Human resource activities associated with movement of employees within firm after they become organizational members Human resource activities associated with movement of employees within firm after they become organizational members 13-2

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–3 Employee Rights and Responsibilities RightsRights  That which belongs to a person by law, nature, or tradition. ResponsibilitiesResponsibilities  Obligations to perform certain tasks and duties. Statutory RightsStatutory Rights  Rights based on specific laws and statutes passed by federal, state, and local governments.  Equal employment opportunity  Collective bargaining  Workplace safety

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–4 Contractual Rights Contractual RightsContractual Rights  Rights based on a specific contract between employer and employee. Employment ContractEmployment Contract  An agreement that formally outlines the details of employment. Implied ContractImplied Contract  The idea that a contract exists between the employer and the employee based on the implied promises of the employer.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–5 Contractual Rights (cont’d) Non-Compete AgreementsNon-Compete Agreements  Prohibit individuals who quit from competing with an employer in the same line of business for a specified period of time. Non-piracy agreements Non-solicitation of current employees Intellectual property and trade secrets Employment Contract Clauses

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–6 Contractual Rights (cont’d) Employer’s Intellectual Property Rights:Employer’s Intellectual Property Rights:  The right to keep trade secrets confidential  The right to have employees bring business opportunities to the employer first before pursuing them elsewhere  A common-law copyright for works and other documents prepared by employees for their employers

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–7 Employee Rights and Personal Behavior Body Appearance An employer can place legitimate job-related limits on an employee’s personal at-work appearance such as tattoos and body piercings. Off-Duty Behavior An employer can discipline an employee if the employee’s off-the-job behavior puts the company in legal or financial jeopardy.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–8 Balancing Employer Security and Employee Rights Workplace Monitoring Monitoring and voic Conducting video surveillance at work Monitoring employee performance Employer Investigations Conducting work-related investigations Employee theft Honest and polygraph tests

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–9 HR Policies, Procedures, and Rules Policies General guidelines that focus organizational actions. “Why we do it” Procedures Customary methods of handling activities “How we do it” Rules Specific guidelines that regulate and restrict the behavior of individuals. “The limits on what we do” Employee Rights

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–10 Employee Misconduct Sample Sample Illegal Drug Use Falsification of Documents Misuse of Company Funds Disclosure of Organizational Secrets Workplace Violence Employment Harassment Employee Theft Types of Employee Misconduct

Internal Employee Relations Activities DisciplineDiscipline TerminationTermination DownsizingDownsizing DemotionDemotion TransferTransfer PromotionPromotion ResignationResignation RetirementRetirement 13-11

Discipline and Disciplinary Action Discipline: State of employee self- control and orderly conductDiscipline: State of employee self- control and orderly conduct Disciplinary action: Invokes penalty against employee who fails to meet established standardsDisciplinary action: Invokes penalty against employee who fails to meet established standards 13-12

Disciplinary Action Word discipline comes from word discipleWord discipline comes from word disciple  Translated from Latin, it means to teach Intent should be to ensure recipient sees disciplinary action as learning processIntent should be to ensure recipient sees disciplinary action as learning process 13-13

Effective Disciplinary Action Addresses employee’s wrongful behavior, not employee as a personAddresses employee’s wrongful behavior, not employee as a person Should not be applied haphazardlyShould not be applied haphazardly Not usually management’s initial response to a problemNot usually management’s initial response to a problem Normally are more positive ways of convincing employees to adhere to company policiesNormally are more positive ways of convincing employees to adhere to company policies 13-14

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

Progressive Disciplinary Action Ensures minimum penalty appropriate to offense is imposedEnsures minimum penalty appropriate to offense is imposed Model developed in response to National Labor Relations Act of 1935Model developed in response to National Labor Relations Act of 1935 Involves answering series of questions about severity of offenseInvolves answering series of questions about severity of offense 13-16

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

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; 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 Advice Managers often avoid disciplinary action, even when it is in company’s best interestManagers 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 laterMany supervisors may be too lenient early in disciplinary action process and too strict later Proper time and place to administer disciplinary action is crucialProper time and place to administer disciplinary action is crucial 13-19

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–20 Organizational culture of avoiding discipline Lack of support by higher management Fear of lawsuits Avoidance of time loss Guilt about past behavior Fear of loss of friendship Reasons Why Managers Might Not Use Discipline

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–21 Employee Discipline (cont’d) Positive Discipline 1.Counseling 2.Written Documentation 3.Final Warning (decision day- off) 4.Discharge Progressive Discipline 1.Verbal Caution 2.Written Reprimand 3.Suspension 4.Discharge Approaches to Discipline

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.15–22 FIGURE 15–9 Progressive Discipline Process

Trends & Innovations: Emotional Intelligence Needed in Disciplinary Action Ability to recognize and manage emotionsAbility to recognize and manage emotions Capacity for recognizing own feelings and those of othersCapacity for recognizing own feelings and those of others Quality needed in disciplinary actionQuality needed in disciplinary action 13-23

Emotional Intelligence Daniel Goleman

The Four Branches of Emotional Intelligence 1.the perception of emotion, 2.the ability reason using emotions, 3.the ability to understand emotion 4.the ability to manage emotions.

Perceiving Emotions The first step in understanding emotions is to accurately perceive them. In many cases, this might involve understanding nonverbal signals such as body language and facial expressions.

Reasoning With Emotions The next step involves using emotions to promote thinking and cognitive activity. Emotions help prioritize what we pay attention and react to; we respond emotionally to things that garner our attention.

Understanding Emotions The emotions that we perceive can carry a wide variety of meanings. If someone is expressing angry emotions, the observer must interpret the cause of their anger and what it might mean. For example, if your boss is acting angry, it might mean that he is dissatisfied with your work; or it could be because he got a speeding ticket on his way to work that morning or that he's been fighting with the spouse.

Managing Emotions The ability to manage emotions effectively is a key part of emotional intelligence. Regulating emotions, responding appropriately and responding to the emotions of others are all important aspect of emotional management

Downsizing Also known as restructuring and rightsizingAlso known as restructuring and rightsizing Reverse of company growthReverse of company growth Suggests one-time change in organization and number of people employedSuggests 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 performanceBoth organizational structure and number of people in organization shrink for purpose of improving organizational performance 13-30

Negative Aspects of Downsizing Natural grieving period; desire to go back to way things used to beNatural grieving period; desire to go back to way things used to be Layers removed, making advancement in organization more difficultLayers removed, making advancement in organization more difficult Workers may seek better opportunities, fearing they may be in line for layoffsWorkers may seek better opportunities, fearing they may be in line for layoffs 13-31

Negative Aspects of Downsizing (Cont.) Employee loyalty significantly reducedEmployee loyalty significantly reduced Institutional memory lostInstitutional memory lost Remaining workers required to do moreRemaining workers required to do more When demand for products or services returns, firm may realize it has cut too deepWhen demand for products or services returns, firm may realize it has cut too deep 13-32

Ombudsperson Complaint officer with access to top managementComplaint officer with access to top management Hears employee complaints, investigates, and recommends appropriate actionHears employee complaints, investigates, and recommends appropriate action Impartial, neutral counselor who gives employees confidential adviceImpartial, neutral counselor who gives employees confidential advice Typically independent of line management and reports near or at top of organizationTypically independent of line management and reports near or at top of organization 13-33

A Global Perspective: Administering Disciplinary Action in the Global Environment Moving into international arena, often presents different disciplinary action situationsMoving into international arena, often presents different disciplinary action situations Much harder to terminate person in Europe than in North AmericaMuch harder to terminate person in Europe than in North America Difficult for global company to establish standardized policy on disciplinary actionDifficult for global company to establish standardized policy on disciplinary action 13-34