1. © 2001 by Prentice Hall 14-1 14 Respecting Employee Rights and Managing Discipline

2. © 2001 by Prentice Hall 14-2 Challenges  Understand the origins and the scope of employee rights and management rights.  Explain why the HR department must balance management’s rights and employees’ rights when designing employment policies.  Describe the employment-at-will doctrine.  Distinguish between progressive discipline procedures and positive discipline procedures.  Apply fair standards to a case of employee misconduct and justify the use of discipline.  Manage difficult people who challenge their supervisors with such problems as poor attendance, low performance, insubordination, and substance abuse.  Avoid disciplinary actions by taking a proactive and strategic approach to HRM.

3. © 2001 by Prentice Hall 14-3 Categories of Employee Rights Protection from discrimination Safe working conditions Right to form unions Contractual RightsOther RightsStatutory Rights Employment contract Union contract Implied contracts/ employment policies Ethical treatment Privacy (limited) Free speech (limited)

4. © 2001 by Prentice Hall 14-4 Ways Managers and Supervisors Can Influence Their Companies’ Climate of Fairness and Behavior  Take actions that develop trust, such as sharing useful information and making good on commitments.  Act consistently so that employees are not surprised by unexpected management actions or decision.  Be truthful and avoid white lies and actions designed to manipulate others by giving a certain (false) impression.  Demonstrate integrity by keeping confidences and showing concern for others.

5. © 2001 by Prentice Hall 14-5 Ways Managers and Supervisors Can Influence Their Companies’ Climate of Fairness and Behavior (cont.)  Meet with employees to discuss and define what is expected of them.  Ensure that employees are treated equitably, giving equivalent rewards for similar performance and avoiding actual or apparent special treatment of favorites.  Adhere to clear standards that are seen as just and reasonable.  Demonstrate respect toward employees, showing openly that they care about employees and recognize their strengths and contributions.

6. © 2001 by Prentice Hall 14-6 Management Rights  The rights of the employer, usually called management rights, can be summed up as the rights to run the business and to retain any profits that result.  Management rights include the right to manage the workforce and the rights to hire, promote, assign, discipline, and discharge employees.  Management rights are influenced by the rights of groups who have an interest in decisions made in the workplace.  One of the most important employer rights is employment at will.

7. © 2001 by Prentice Hall 14-7 Employment at Will  Employers have long used employment at will, a common- law rule, to assert their right to end their employment relationship with an employee at any time for any cause.  Although the courts originally assumed the employment at will would give both parties equal footing in the employment relationship, it is apparent that employment at will has stacked the deck in favor of employers.  One labor relations expert has estimated that approximately 150,00 employees are wrongfully discharged each year.  Virtually all of these wrongful discharges occur in the 70% of the U.S. labor force that is not protected by either a union contract or civil service rules.

8. © 2001 by Prentice Hall 14-8 Legal Limitations to Employment at Will  Public Policy Exceptions The courts have ruled that an employee may not be discharged for engaging in activities that are protected by law. Examples are: u Filing a legitimate workers’ compensation claim u Exercising a legal duty, such as jury duty u Refusing to violate a professional code of ethics u Refusing to lobby for a political candidate favored by the employer

9. © 2001 by Prentice Hall 14-9 Legal Limitations to Employment at Will (cont.)  Implied Contracts The courts have determined that an implied contract may exist when an employer makes oral or written promises of job security. u To prevent implied contract lawsuits, employers should carefully rewrite employee handbooks to eliminate any language that could be interpreted as an implied contract. u Lack of Good Faith and Fair Dealing Courts in some jurisdictions expect each party in the employment relationship to treat the other in good faith. If one party acts with malice or bad faith, the courts may be willing to provide a remedy to the injured party.

10. © 2001 by Prentice Hall 14-10 Random Drug Testing  Many employees consider random drug testing an unreasonable and illegal invasion of their privacy. u Although random drug testing is required by law for specific occupations where safety is critical, it has been challenged in cases where the employer has other methods available to ensure a drug-free work environment. u Employees’ anger and humiliation about random drug testing is compounded by the evidence that it does not help deter accidents. u In 1991 a Federal Railroad Administration report found that only 3.2% of workers involved in railroad accidents tested positive for drugs.

11. © 2001 by Prentice Hall 14-11 Electronic Monitoring  Companies are attempting to fight various forms of theft by using electronic surveillance devices to monitor employees.  The increased sophistication of computer and telephone technology now makes it possible for employers to track employees’ job performance electronically.  Employees are most likely to see electronic monitoring as legitimate when management used it to control theft.

12. © 2001 by Prentice Hall 14-12 Whistleblowing  Whistleblowing is risky because managers and other employees sometimes deal harshly with the whistleblower.  Despite the risks, many employees have used whistleblowing to call their employers to account.

13. © 2001 by Prentice Hall 14-13 Dos and Don’ts for Whistleblowers DO make sure your allegation is correct. Something may look fishy but be allowable under a technicality you don’t understand. DO keep careful records. Document what you’ve observed —and your attempt to rectify the problem or alert a supervisor. Keep copies outside the office. DO research on whether or not your state provides protection for whistleblowers. It may require that you follow special procedures. DO be realistic about your future. Talk to your family and make sure you’re prepared for a worst-case scenario, which can include a loss of job, severe financial burdens, and blacklisting in your field. Even if you’re not fired, you may be treated with suspicion by colleagues and management.

14. © 2001 by Prentice Hall 14-14 Dos and Don’ts for Whistleblowers (cont.) DON’T assume a federal or state law will protect you. Legal protection for private-sector workers is often inadequate and varies widely state to state. Most federal protections cover only government workers. DON’T run to the media. You may be giving up certain rights or risking a defamation suit. Check with an attorney before contacting any reporters. DON’T expect a windfall if you’re fired. Although some states allow punitive damages, you may be eligible only for back pay and reinstatement—in a place you probably don’t want to work anyway.

15. © 2001 by Prentice Hall 14-15 Five Steps for Effective Disciplinary Sessions  Determine whether discipline is called for. Is the problem an isolated infraction or part of a pattern?  Have clear goals for the discussion that you outline in your opening remarks. Be specific. Do not rely on indirect communication or beat around the bush.  Ensure two-way communication. The most helpful disciplinary meeting is a discussion, not a lecture.  Establish a follow-up plan. The agreement to a follow-up plan is crucial in both the progressive and positive disciplinary procedures.  End on a positive note.

16. © 2001 by Prentice Hall 14-16 Categories of Employee Misconduct Absenteeism Dress code violation Smoking rule violation Incompetence Safety rule violation Sleeping on the job Horseplay Tardiness Serious ViolationsMinor Violations Drug use at work Theft Dishonesty Physical assault upon a supervisor Sabotage of company operations

17. © 2001 by Prentice Hall 14-17 Progressive Discipline  Progressive discipline procedures are warning steps, each of which involves a punishment that increases in severity the longer the undesirable behaviors persist.  Progressive discipline systems usually have three to five steps. Serious violations, sometimes referred to as gross misconduct, can result in the elimination of several steps and sometimes even begin at the last step, which is discharge.

18. © 2001 by Prentice Hall 14-18 Four Steps in a Progressive Discipline Procedure 1. Verbal Warning The employee has an unexcused ab- sence from work. He received a ver- bal warning from the supervisor and is told that if he takes another un- excused absence within the next month, harsher punishment will follow. 2. Written Warning3. Suspension4. Discharge Two weeks after the verbal warning from his super- visor, the employee takes another un- excused absence. He now receives a written warning that if he fails to correct his ab- senteeism problem within the next two months more severe treatment will follow. This warning goes into his personnel file. Two weeks after his return from suspension, the employee does not show up for work. Upon his return to work the following day, he is discharged. Six weeks later the employee fails to show up for work for two consecutive days. This time he is suspended from work without pay for one week. He also received a final warning from his supervisor that if he has another un- excused absence within three months after his return from suspension, he will be terminated.

19. © 2001 by Prentice Hall 14-19 Positive Discipline  The emphasis on punishment in progressive discipline may encourage employees to deceive their supervisors rather than correct their actions. To avoid this outcome, some companies have replaced progressive discipline with positive discipline, which encourages employees to monitor their own behaviors and assume responsibility for their actions.  Rather than depending on threats and punishments, the supervisor uses counseling skills to motivate the employee to change.  To ensure that supervisors are adequately prepared to counsel employees, companies that use positive discipline must see that they receive appropriate training.

20. © 2001 by Prentice Hall 14-20 Basic Standards for Discipline  Some basic standards of discipline should apply to all rule violations, whether major or minor. All disciplinary actions should include the following procedures at a minimum: u Communication of rules and performance criteria u Documentation of the facts u Consistent response to rule violations

21. © 2001 by Prentice Hall 14-21 The Just Cause Standard of Discipline  In cases of wrongful discharge that involve statutory rights or exceptions to employment at will, U.S. courts require the employer to prove that an employee was discharged for just cause.  Failure to answer “yes” to one or more of these questions suggests that the discipline may have been arbitrary or unwarranted. u Notification Was the employee forewarned of the disciplinary consequences of his or her conduct? u Reasonable Rule Was the rule the employee violated reasonably related to safe and efficient operations? u Investigation Before the Discipline Did managers conduct an investigation into the misconduct before administering discipline? u Fair Investigation Was the investigation fair and impartial?

22. © 2001 by Prentice Hall 14-22 The Just Cause Standard of Discipline (cont.) u Proof of Guilt Did the investigation provide substantial evidence or proof of guilt? u Absence of Discrimination Were the rules, orders, and penalties of the disciplinary action applied even handedly and without discrimination? u Reasonable Penalty Was the disciplinary penalty reasonably related to the seriousness of the rule violation?

23. © 2001 by Prentice Hall 14-23 Mistakes to Avoid when Administering Discipline  Losing your temper u When you lose control of your temper you may say things that damage your relationship with the employee and that you may later regret.  Avoiding disciplinary action entirely u Avoiding disciplinary action may actually harm an employee who is deprived of the chance to learn how to correct his or her behavior.  Playing therapist u Unless a supervisor is trained as a therapist, the employee may misinterpret the supervisor’s personal questions as being nosy or overly analytical, which is unlikely to achieve the desired change in behavior.  Making excuses for an employee u By accepting excuses, supervisors deprive employees the chance to accept responsibility for their mistakes and instead enable them to continue rationalizing their performance deficiencies.

24. © 2001 by Prentice Hall 14-24 Preventing the Need for Discipline with Human Resource Management  Many of the functional areas of HR can be designed to prevent problem employees: u Recruitment and Selection u Training and Development u Human Resource Planning u Performance Appraisal u Compensation