Human Resource Management - INTERNAL EMPLOYEE RELATIONS by RushenChahal


Prof Rushen's Notes for MBA, BBA students

More Info
									Human Resource Management


    Prof. Rushen Chahal

         Prof. Rushen Chahal   13-1
     HRM in Action: Continuous
       Background Checking
• Not just for pre-employment any more
• Few employers are screening their
  employees on an ongoing basis
• People and events are ever-changing
• Examples: Financial devastation, marital
  collapse or a medical crisis can send a
  person with the cleanest record over the
                 Prof. Rushen Chahal         13-2
Internal Employees
 Relations Defined

           Human resource
           activities associated
           with movement of
           employees within firm
           after they become

    Prof. Rushen Chahal        13-3
Internal Employees Relations
           • Promotion
             • Transfer
            • Demotion
          • Resignation
            • Discharge
              • Layoff
           • Retirement
            • Discipline
       • Disciplinary action

            Prof. Rushen Chahal   13-4
       Employment at Will
• Unwritten contract created when
  employee agrees to work for
• No agreement as to how long parties
  expect employment to last
• Approximately 2 of every 3 U.S.
  workers depend almost entirely on
  continued goodwill of employer
               Prof. Rushen Chahal   13-5
           Not Included

• Individuals with a contract for a
  specified time period - collective
  bargaining agreements between
  labor and management and
• Whistleblowers

              Prof. Rushen Chahal      13-6
 Exceptions to Employment-at-Will
• Prohibiting terminations in violation of
  public policy
• Permitting employees to bring claims
  based on representations made in
  employment handbooks
• Permitting claims based on the common-
  law doctrine of good faith and fair dealing

                  Prof. Rushen Chahal       13-7
    How Employers Can Protect

• No statements suggesting job security or
  permanent employment
• Avoiding statements during job interviews,
  such as “You can expect to hold this job
  as long as you want” - Could be
  considered a contractual agreement
• A person should not be employed without
  a signed acknowledgment of the at-will
                 Prof. Rushen Chahal      13-8
    How Employers Can Protect
       Themselves (Cont.)
• Clearly defining worker’s duties
• Providing good feedback on a regular
• Conducting realistic performance
  appraisals on a regular basis
• There is no law involving ethical
  considerations for employment-at-will

                 Prof. Rushen Chahal      13-9
Discipline and Disciplinary Action

        • Discipline - State of employee
          self-control and orderly
        • Disciplinary action -Invokes
          penalty against employee
          who fails to meet established

             Prof. Rushen Chahal      13-10
    Effective Disciplinary Action

• Addresses employee’s wrongful behavior,
  not employee as a person
• Should not be applied haphazardly
• Not usually management’s initial response
  to a problem
• Normally, there are more positive ways of
  convincing employees to adhere to
  company policies
                 Prof. Rushen Chahal     13-11
The Disciplinary Action Process

          Set Organizational Goals

               Establish Rules

     Communicate Rules to Employees

            Observe Performance

       Compare Performance with Rules

      Take Appropriate Disciplinary Action

                 Prof. Rushen Chahal         13-12
Disciplinary Action

  • Word discipline comes from
    word disciple
  • Translated from Latin, it
    means, to teach
  • Intent of disciplinary action
    should be to ensure
    recipient sees disciplinary
    action as learning process
     Prof. Rushen Chahal       13-13
Approaches to Disciplinary

            • Hot stove rule
            • Progressive
              disciplinary action
            • Disciplinary action
              without punishment

        Prof. Rushen Chahal    13-14
Hot Stove Rule

      • Burns immediately
      • Provides warning
      • Gives consistent
      • Burns impersonally
      • Problem - All
        situations are not the

   Prof. Rushen Chahal       13-15
  Progressive Disciplinary Action

• Ensure minimum penalty appropriate to
  offense is imposed
• Model developed in response to National
  Labor Relations Act (NLRA) of 1935
• Involves answering series of questions
  about severity of offense

                 Prof. Rushen Chahal    13-16
         The Progressive Disciplinary Approach

          Improper Behavior
Does this violation warrant disciplinary     No
                                                       No Disciplinary Action
Does this violation warrant more than        No
                                                           Oral Warning
          an oral warning?
Does this violation warrant more than a      No
                                                         Written Warning
           written warning?
Does this violation warrant more than a      No

                                 Prof. Rushen Chahal                        13-17
      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; and Then Termination
Sleeping on the job
Failure to report to work one of two days in a row without notification
Negligent use of property

Offenses Requiring Immediate Termination
Fighting on the job
Falsifying time cards
Failure to report to work three days in a row without notification
                                      Prof. Rushen Chahal                 13-18
      Disciplinary Action without
• Process of giving worker time off with pay to
  think about whether he or she wants to follow
  the rules and continue working for company
• Employee violates rule, manager issues oral
• Repetition brings written reminder
• Third violation: Worker takes 1, 2 or 3 days off
  (with pay) to think about situation
• Important all rules explicitly stated in writing

                    Prof. Rushen Chahal          13-19
Problems in Administration of
     Disciplinary Action
          •   Lack of training
          •   Fear
          •   The only one
          •   Guilt
          •   Loss of friendship
          •   Time loss
          •   Loss of temper
          •   Rationalization

          Prof. Rushen Chahal      13-20
       Disciplinary Action Advice

• Managers often avoid disciplinary action, even
  when it is in company’s best interest
• Some managers believe that even attempting to
  terminate women and minorities is useless
• Proper time and place to administer disciplinary
• Many supervisors may be too lenient early in
  disciplinary action process and too strict later

                    Prof. Rushen Chahal         13-21
   Grievance Handling Under
 Collective Bargaining Agreement
• Grievance - Employee’s dissatisfaction or
  feeling of personal injustice relating to
• Grievance procedure - Formal, systematic
  process that permits employees to
  express complaints without jeopardizing
  their jobs

                 Prof. Rushen Chahal     13-22
       Grievance Procedure
• Assists management in seeking out
  underlying causes of and solutions to
• Virtually all labor agreements include
  some form of grievance procedure
• Normally well defined
• Usually restricted to violations of terms
  and conditions of agreement
                 Prof. Rushen Chahal      13-23
   General Principles for Effective
     Grievance Administration

• Grievances should be adjusted promptly.
• Procedures and forms used for airing
  grievances must be easy to utilize and well
  understood by employees and their
• Direct and timely avenues of appeal from
  rulings of line supervision must exist

                 Prof. Rushen Chahal      13-24
          A Multiple-Step Grievance Procedure


                                     To Impartial
                                     Third Party
President, Vice President for                           International Representative,
   Labor Relations, etc.                                     Local President, etc.

 Plant Manager, Personnel                                  Grievance Committee,
       Manager, etc.                                        Business Agent, etc.
                                      in Writing

   First-Line Supervisor                                       Union Steward

                                Aggrieved Employee
                                  Prof. Rushen Chahal                          13-25
• Parties submit dispute to
  impartial third party for binding
• Final step in most grievance
• Union and company select
• Courts will generally enforce
  arbitrator’s decision
     Prof. Rushen Chahal        13-26
Factors Arbitrator May Use to Evaluate
  Fairness of Managements Actions

•   Nature of offense
•   Due process and procedural correctness
•   Double jeopardy
•   Past record of grievant
•   Length of service with company
•   Knowledge of rules
•   Warnings
•   Lax enforcement of rules
•   Discriminatory treatment
                Prof. Rushen Chahal          13-27
    Formats of Written Warnings

• Statement of facts concerning offense
• Identification of rule that was violated
• Statement of what resulted or could have
  resulted because of violation
• Identification of any previous similar violations by
  same individual
• Statement of possible future consequences
  should violation occur again
• Signature and date
                    Prof. Rushen Chahal           13-28
              Example of a Written Warning
Date:        August 1, 2007
To:          Judy Bandy
From:        Wayne Sanders
Subject:     Written Warning
  We are quite concerned because today you were thirty minutes late to
work and offered no justification for this. According to our records, a similar
offense occurred on July 25, 2007. At that time, you were informed that
failure to report to work on time is unacceptable. I am, therefore, notifying
you in writing that you must report to work on time.
 Please sign this form to indicate that you have read and understand this
warning. Signing is not an indication of agreement.


                               Prof. Rushen Chahal                          13-29
 Grievance Handling in
Union-free Organizations

       • Most large and
         medium sized
         nonunion firms have
         established formal
         grievance procedures
       • Means of resolving
         complaints varies
        Prof. Rushen Chahal   13-30
 Trends & Innovations: Alternative
       Dispute Resolution
• Procedure where employee and company
  agree problems will be addressed by
  agreed upon means ahead of time
• Arbitration, mediation, mini-trials, and
  ombudspersons used
• Uses range from racial, gender, and age
  discrimination to unfair firings

                 Prof. Rushen Chahal    13-31
 Trends & Innovations: Alternative
    Dispute Resolution (Cont.)

• Presidential EO requires federal agencies to (1)
  promote greater use of mediation, arbitration,
  early neutral evaluation, agency
  ombudspersons, and other alternative dispute
  resolution techniques, and (2) promote greater
  use of negotiated rulemaking
• Circuit City v Adams - Greatly enhanced
  employer’s ability to enforce compulsory
  alternative dispute resolution agreements
                    Prof. Rushen Chahal         13-32

• Complaint officer with access to top
  management hears employee complaints,
  investigates, and recommends appropriate
• Impartial, neutral counselors give employees
  confidential advice about problems ranging from
  abusive managers to allegations of illegal
  corporate activity
• Typically independent of line management and
  reports near or at top of organization
                   Prof. Rushen Chahal        13-33

  Most severe penalty; should be
  most carefully considered
• Termination of nonmanagerial/
  nonprofessional employees
• Termination of executives
• Termination of middle- and
  lower-level managers and

       Prof. Rushen Chahal    13-34
      Termination of
          • If firm unionized,
            termination procedure
            well defined in labor
          • Non-Union workers can
            generally be terminated
            more easily

           Prof. Rushen Chahal        13-35
Termination of Executives

      •   Economic
      •   Reorganization/downsize
      •   Philosophical differences
      •   Decline in productivity
      •   No formal appeals

           Prof. Rushen Chahal        13-36
Termination of Middle- and Lower-
Level Managers and Professionals

        • In past, most vulnerable
          and neglected group with
          regard to termination
        • Not members of union nor
          protected by labor
             Prof. Rushen Chahal   13-37
Demotion as Alternative to

         • Demotions used as
           alternative to discharge
         • Demotion is process of
           moving worker to lower
           level of duties and
           responsibilities, usually
           involving reduction in
         Prof. Rushen Chahal       13-38

• Lateral movement of
  worker within
• Should not imply that
  person is being either
  promoted or demoted

 Prof. Rushen Chahal       13-39
Transfers Serve Several Purposes
• Necessary to reorganize
• Make positions available in primary
  promotion channels
• Satisfy employees’ personal desires
• Deal with personality clashes
• Becoming necessary to have wide variety
  of experiences before achieving promotion

                 Prof. Rushen Chahal    13-40

• Movement to higher level
  in company
• One of the most
  emotionally charged
  words in human resource

 Prof. Rushen Chahal    13-41

           • Exit interview
           • Advance notice
             of resignation

  Prof. Rushen Chahal         13-42
Analyzing Voluntary Resignations

 • Exit interview - Means of revealing
   real reasons employees leave jobs
   which is conducted before employee
   departs company
 • Postexit questionnaire - Sent to
   former employees several weeks
   after leave organization to
   determine real reason the employee
              Prof. Rushen Chahal        13-43
      Attitude Surveys: Means of
     Retaining Quality Employees

    Seek employee input to determine feeling
    about such topics as:
•   Work environment
•   Opportunities for advancement
•   Firm’s compensation system
•   Their supervisor
•   Training and development opportunities
                  Prof. Rushen Chahal     13-44
Advance Notice of Resignation

      • Would like 2 weeks
      • Communicate policy to all
      • May pay employee for
        notice time and ask
        him/her to leave
           Prof. Rushen Chahal   13-45

                Many long-term
                employees leave

 Prof. Rushen Chahal         13-46
   A Global Perspective: Getting
Information to Support Disciplinary
• Multinational companies face significant
  challenges when they try to encourage
  whistle-blowing across a wide variety of
• Number of cultural factors that discourage
  international employees from reporting
                 Prof. Rushen Chahal      13-47
Prof. Rushen Chahal   13-48

To top