Chapter Sixteen Employment Transitions

Copyright © Houghton Mifflin Company. All rights reserved. 16–2 Chapter Outline Career Paths and Career Planning Retirement Voluntary Turnover Involuntary Turnover Employment-at-Will Discipline and Termination for Cause Retrenchment and Layoff

Copyright © Houghton Mifflin Company. All rights reserved. 16–3 Figure 16.1(a) Linear Career Paths

Copyright © Houghton Mifflin Company. All rights reserved. 16–4 Alternate Career Paths Expert or Professional Career Ladders –Junior engineer, Engineer, Senior Engineer Transitory Career Paths –Many shifts across organizations, may include self employed periods and consulting Spiral Career Paths between functions to develop additional skills

Copyright © Houghton Mifflin Company. All rights reserved. 16–5 Figure 16.1(b) Spiral Career Paths

Copyright © Houghton Mifflin Company. All rights reserved. 16–6 Career Planning Self assessment of interests and skills Exploration of job alternatives inside and outside the organization Formulation of career goals and plans Action and periodic review and updating

Copyright © Houghton Mifflin Company. All rights reserved. 16–7 Figure 16.2 Aligning Needs and Offers Source: Mike Broscio and Joe McClenna, Scherer Schneider Paulik, Chicago, “Taking Charge: Charting Your Way To Career Success, HEALTH CARE EXECUTIVE, Nov/Dec. 2000, pp Copyright Scherer Schneider Paulick 2001.

Copyright © Houghton Mifflin Company. All rights reserved. 16–8 Retirement No mandatory retirement age Retirement - full or partial? –Bridge jobs –Phased retirement The Impact of Retirement on Organizations

Copyright © Houghton Mifflin Company. All rights reserved. 16–9 Factors Affecting Voluntary Turnover External Factors –Unemployment rate –Alternative jobs available Internal Factors –Job satisfaction and organizational commitment –Fairness, growth opportunities Embeddedness –Number of links between employee and firm, locality, family, etc.

Copyright © Houghton Mifflin Company. All rights reserved. 16–10 Figure 16.3 A Traditional Model of Quitting

Copyright © Houghton Mifflin Company. All rights reserved. 16–11 Figure 16.4 The Optimal Turnover Rate Source: Adapted from Michael A. Abelson and Barry D. Baysinger, “Optimal and Dysfunctional Turnover: Toward an Organizational Level Model,” Academy of Management Review, Vol. 9, 1984, p Reprinted by permission.

Copyright © Houghton Mifflin Company. All rights reserved. 16–12 Figure 16.5 Performance Replaceability Strategy Matrix Source: D.C. Martin and K.M. Bartol, “Managing Turnover Strategically,” Reprinted with permission from the November 1985 issue of Personnel Administrator, copyright 1985, The American Society of Personnel Administration.

Copyright © Houghton Mifflin Company. All rights reserved. 16–13 Retention Management Find out what drives employees away (exit interviews and organizational surveys) and fix it Benchmark and set goals for retention, hold managers accountable for results Maximise opportunities for employees’ growth Use rewards and recognition fairly and effectively Be flexible and family-friendly Plan for knowledge retention before employees leave

Copyright © Houghton Mifflin Company. All rights reserved. 16–14 Employment-at-Will Most employees can be terminated at any time and for any reason Limitations on right to terminate at will: –Civil Rights Legislation –Union Contracts –Lawsuit claiming wrongful discharge

Copyright © Houghton Mifflin Company. All rights reserved. 16–15 Bases for Wrongful Discharge Claim Violations of Public Policy Whistleblowing Expressed or Implied Guarantee of Continued Employment Good Faith and Fair Dealing Tortious Conduct by Employer

Copyright © Houghton Mifflin Company. All rights reserved. 16–16 Preventing Employment-at-Will Problems Make explicit statements that employment is at-will Write contracts specifying termination procedures Carefully document performance or behavior problems that may lead to discharge

Copyright © Houghton Mifflin Company. All rights reserved. 16–17 Discipline Systems Positive Discipline Without Punishment –Warning, then suspension with pay, followed by pledge to mend ways or voluntary resignation Progressive Discipline Systems –Escalating penalties for repeated offences –Warnings, then suspensions, then discharge –Immediate discharge for very serious offenses

Copyright © Houghton Mifflin Company. All rights reserved. 16–18 Managing Termination for Cause Investigate offences carefully and tactfully Document everything Have decision reviewed by a higher level

Copyright © Houghton Mifflin Company. All rights reserved. 16–19 Retrenchment and Layoff Layoffs don’t always solve an organization’s problems They must be carefully planned to focus on productivity improvement not just cost cutting Wide involvement in planning is desirable Communication is important Laid off employees need outplacement assistance Survivors need care too

Copyright © Houghton Mifflin Company. All rights reserved. 16–20 Legal Constraints on Layoffs Worker Adjustment and Retraining Notification Act (WARN) –Requires 60 days notice of mass layoffs or plant closings affecting over 500 employees, or 1/3 of the workforce.

Copyright © Houghton Mifflin Company. All rights reserved. 16–21 Review Career Paths and Career Planning Retirement Voluntary Turnover Involuntary Turnover Employment-at-Will Discipline and Termination for Cause Retrenchment and Layoff