Chapter 17 Employee Stakeholders and Workplace Issues © 2012 South-Western, a part of Cengage Learning 1

Global Competition and the Social Contract The social contract between organizations and their workers has been reshaped. Driven by global competition and the economic recession. The trend toward more expansive employee rights Right not to be fired without good cause Right to due process and fair treatment Right to freedom of speech in the workplace © 2012 South-Western, a part of Cengage Learning 2

The New Social Contract Today’s worker has held nine jobs by age 30. The workforce is: More mobile Less loyal More diverse Employees want: Competitive pay Benefits Opportunities for professional growth © 2012 South-Western, a part of Cengage Learning 3

The Changing Social Contract 4 © 2012 South-Western, a part of Cengage Learning

Employee Loyalty Loyalty remains important Employers must earn employee loyalty through demonstrating: Trust Respect Commitment  Uncertainty from the global economic recession made employees feel more loyal to their employers. 5 © 2012 South-Western, a part of Cengage Learning

Training and the New Social Contract Outplacement Assistance provided to laid-off employees.  Is an important ethical responsibility. The duty to treat employees well does not end when they are terminated. 6 © 2012 South-Western, a part of Cengage Learning

Models of Management Morality Moral management Employees are viewed as a human resource that must be treated with dignity and respect. Amoral management Employees are treated as the law requires. Immoral management Employees are viewed as factors of production to be used, exploited, and manipulated. 7 © 2012 South-Western, a part of Cengage Learning

The Right Not to Be Fired Without Cause Good cause norm The belief that employees should only be discharged for good reasons. Prevails in the United States today. Employment-at-will doctrine The relationship between employer and employee is a voluntary one that can be terminated at any time by either party. Is a fairly unique concept in the world. 8 © 2012 South-Western, a part of Cengage Learning

Legal Challenges to Employment- at-Will Public policy exceptions Protects employees from being fired for refusal to commit crimes. Implied contract exception Protects employees who they believe have contracts or implied contracts. Good faith principle Employers may lose lawsuits to former employees if they cannot show that employees had opportunities to improve their performance before termination. 9 © 2012 South-Western, a part of Cengage Learning

Moral and Managerial Objections to Employment-at-Will 1.Employees deserve respectful treatment. 2.Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility. 3.Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration. 10 © 2012 South-Western, a part of Cengage Learning

Terminating an Employee 1.Fire employees in a private space. 2.Be mindful of employees’ logistics. 3.Preserve the employee’s dignity. 4.Choreograph the notification in advance. 5.Use transparent criteria for layoffs. 11 © 2012 South-Western, a part of Cengage Learning

What Not to do When Terminating an Employee 1.Don’t fire on a Friday. 2.Don’t say that downsizing is finished. 3.Don’t terminate an employee via . 4.Stick to the topic and avoid platitudes. 5.Don’t rush through the meeting. 12 © 2012 South-Western, a part of Cengage Learning

The Right to Due Process Due Process The right to receive an impartial review of one’s complaints and to be dealt with fairly. The right of employees to have decisions that adversely affect them be reviewed by objective and impartial third parties. 13 © 2012 South-Western, a part of Cengage Learning

The Requirements of a Due Process System 1.It must be a procedure and must follow rules. 2.It must be visible so that potential violators are aware of it. 3.It must be predictably effective. 4.It must be institutionalized. 5.It must be perceived as equitable. 6.It must be easy to use. 7.It must apply to all employees. 14 © 2012 South-Western, a part of Cengage Learning

The Ombudsman Has been used in Sweden since 1809 to curb abuses by government against individuals. Ombuds handle the concerns of employees who believe they have witnessed wrongdoing. They keep the problem from getting out of hand. 15 © 2012 South-Western, a part of Cengage Learning

Factors for a Successful Peer Review Panel 1.People in the process are respected members of the organization. 2.Elected, rather than appointed, committee members. 3.Provide training in dispute resolution, discrimination, fairness, legalities, and ethics for everyone involved. 4.Representatives of both employees and management should be involved in decision making. 16 © 2012 South-Western, a part of Cengage Learning

Freedom of Speech in the Workplace Whistle-Blower An organization member who discloses illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action. 17 © 2012 South-Western, a part of Cengage Learning

Whistle-Blowing Key Elements in the Whistle-Blowing Process 1.The whistle-blower 2.The act or complaint 3.The party to whom the complaint is made 4.The organization against which the complaint is made 18 © 2012 South-Western, a part of Cengage Learning