Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 14 Procedural Justice And Ethics in Employee Relations

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Definitions  Employee relations – all of the practices that implement the philosophy and policy of an organization with respect to employment  Justice – the maintenance or administration of what is just, especially by the impartial adjustment of conflicting claims or the assignment of merited rewards or punishments  Procedural justice –the fairness of the procedures used to make decisions. Procedures are fair to the extent that they are consistent across persons and over time, free from bias, based on accurate information, correctable, and based on prevailing moral and ethical standards

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Definitions  Distributive justice –fairness of the outcomes of decisions, for example, in the allocation of bonuses or merit pay, or in making reasonable accommodations for employees with disabilities  Due process – in legal proceedings provides individuals with rights as set forth by the Constitution of the United States.  Protects individual rights with respect to state, municipal, and federal government processes  Normally does not apply to work situations.  Employee rights to due process are based on a collective bargaining agreement, on legislative protections, or on procedures provided unilaterally by an employer

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Definitions  Ethical decisions about behavior – concern one’s conformity to moral standards or to the standards of conduct of a given profession or group  Ethical decisions take account not only of one’s own interests, but also equally of the interests of those affected by the decision

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Components of Procedural Justice  Employee voice  Provides individuals and groups the capacity to be heard, a way to communicate their interests upward  Interactional justice  Quality of interpersonal treatment that employees receive in their everyday work  Informational justice  Expressed in terms of providing explanations or accounts for decisions made

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Core Characteristics of Effective Voice Systems  Elegance  Simple procedures, broad application, vested authority, good diagnostic system  Accessibility  Easy to use, advertised, comprehensive, open process  Correctness  Includes follow-up, self-redesigning, correctable outcomes  Responsiveness  Timely, culturally viable, tangible results, management commitment  Nonpunitiveness  Appeal system, anonymity, no retaliation for using the system

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Negative Versus ‘Positive’ Discipline  Three reasons managers avoid imposing traditional discipline:  Ignorance of organizational rules  Fear of formal grievances  Fear of losing the friendship of employees  Positive discipline, an alternative to traditional discipline  Employees who commit offenses first get an oral “reminder” rather than a “reprimand”  If no change, the employee receives a written reminder, followed by a paid day off – called a “decision-making leave day”  The fully documented process is followed by termination if the employee does not change

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Improving the Effectiveness of Progressive Discipline  Progressive discipline – a procedure that proceeds from an oral warning to a written warning to a suspension to a dismissal  For progressive discipline to be effective:  The employee needs to know what the problem is  The employee must know what to do to fix the problem  The employee must have a reasonable period of time to fix the problem  The employee must understand the consequences of inaction

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Administering Discipline Without Incurring Employee Resentment  Follow the red-hot-stove rule:  Immediate – there should be no misunderstanding about why discipline was imposed; people are disciplined not because of who they are (personality), but because of what they did (behavior)  With warning – employees must know very clearly what the consequences of undesirable work behavior will be; provide adequate warning  Consistent –to be perceived as fair, discipline must be administered consistently, given similar circumstances surrounding the undesirable behavior  Impersonal – managers cannot play favorites by disciplining subordinates they do not like, while allowing the same behavior to go unpunished for those they do like

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Firing Employees Legally & Humanely  Be sure that all supervisors understand company policies and provide a termination checklist for them to use  Before deciding to dismiss an employee:  Conduct a detailed review of all relevant facts  To ensure consistent treatment, examine how similar cases have been handled in the past  After deciding on termination, the termination interview should minimize the trauma for the affected employee

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Firing Employees Legally & Humanely  Prior to conducting a termination interview, answer three questions:  Who? – the responsibility for terminating rests with the manager of the individual who is to be released; no one else has the credibility to convey this difficult message  When? – consider personal situations – birthdays, anniversaries, family illnesses, and day of the week  Where? – neutral territory – not the manager’s or the employee’s office  Five rules for the termination interview:  Present the situation in a clear, concise, and final manner  Avoid debates or a rehash of the past  Never talk down to the individual  Be empathetic but not compromising  Explain the “next step” – severance, benefits, outplacement arrangements

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Establishing a Fair Information Practice Policy  Set up guidelines and policies to protect information in the organization: types of data sought, methods of obtaining it, retention and dissemination policies, employee or third-party access to information, release of information about former employees, and mishandling of information  Inform employees of these information-handling policies  Become thoroughly familiar with state and federal laws regarding privacy  Establish a policy that states specifically that employees and prospective employees cannot waive their rights to privacy  Establish a policy that any manager or non-manager who violates these privacy principles will be subject to discipline or termination

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Articulating, Communicating, and Implementing Policies  Avoid fraudulent, secretive, or unfair means of collecting data; when possible, collect data directly from the individual concerned  Do not maintain secret files on individuals; inform them of what information is stored on them, the purpose for which it was collected, how it will be used, and how long it will be kept  Collect only relevant, job-related information  Maintain records of individuals or organizations who have regular access or who request information on a need-to-know basis  Periodically allow employees the right to inspect and update information stored on them  Gain assurance that any information released to outside parties will be used only for specific purposes

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Privacy Dilemmas  Privacy – the interest employees have in controlling the use that is made of their personal information and in being able to engage in behavior free from regulation or surveillance  Three main issues  The kind of information collected and retained about individuals  How this information is used  The extent to which it can be disclosed to others  Ethical dilemmas – situations that have the potential to result in a breach of acceptable behavior  Ethical behavior adapts and changes in response to social norms