ExerciseEveryone get up and move at least 3 seats

away from where you are right now?

Chapter 15Chapter 15

SECTION 5SECTION 5EmployeeEmployee Relations Relations

How to deal with employee complaints

Rights and Responsibilities IssuesRights

That which belongs to a person by law, nature, or tradition.

ResponsibilitiesObligations to perform certain tasks and duties.

Statutory RightsRights based on specific laws and statutes passed by

federal, state, and local governments.Minimum WageEqual employment opportunityCollective bargainingWorkplace safety

Contractual RightsContractual Rights

Rights based on a specific contract between employer and employee. Can be spelled out formally in written employment

contracts or implied in employee handbooks and published policies..

Employment ContractAn agreement that formally outlines the details of

employment.Originally for executive managers

Implied ContractThe idea that a contract exists between the

employer and the employee based on the implied promises of the employer. Enforceable in court.

Contractual RightsNon-Compete Agreements

Prohibit individuals who quit from competing with an employer in the same line of business for a specified period of time. Non-piracy agreements bar former employees from

soliciting business from former customers and clients for a specified period of time.

Non-solicitation of current employees agreements prevent a former employee encouraging former co-workers to join a different company, often a competitor.

Intellectual property and trade secrets prevent former employees from revealing key competitive information.

Rights Affecting the Employment RelationshipEmployment-at-Will (EAW)

Common law doctrine that employers have the right to hire, fire, demote, or promote as they choose, unless there is a law or contract to the contrary.

Employees have the right to quit and get another job under the same constraints.

Horace Gay Wood “Master and Servant” treatise- 1877

Described Employment At Will Cited Court Cases Stated it was accepted by courts Completely falsified

1887 - McCullough Iron Co. v. Carpenter -One of first cases to cite Wood’s treatise stating “[Wood’s

treatise] is an American authority of high repute” Union Represented employees are not EAW employees

Wrongful DischargeWrongful Discharge

Termination of an individual’s employment for reasons that are illegal or improper (covenant of good faith and good dealing). Fortune v. National Cash Register Violation of covenant of good faith and fair dealing

Exceptions to EAWPublic PolicyEmployment Contracts (Express / Implied

Contracts)Good Faith

Figure 16–2

Employment-at-Will (EAW) Restrictions

Constructive DischargeAn employer deliberately makes working

conditions intolerable for an employee in an attempt to get (to force) that employee to resign or quit.

Just CauseReasonable justification for taking an

employment-related action.

Figure 16–3

Due ProcessDue Process

The means used for individuals to explain and defend their actions against charges or discipline.

Unionized due process based on grievance procedures

Distributive JusticePerceived fairness in the distribution of outcomes.

Procedural JusticePerceived fairness of the process used to make

decision about employees.The issue of transparency

Jack Welch on transparency(Winning)“Candor is the biggest little dirty secret in business” “lack of candor basically blocks smart ideas, fast action and

good people contributing all they’ve got.”“When you’ve got candor, everything just operates faster

and better.”Candor: 1) gets more people in the conversation, 2)

generates the ability to debate rapidly (the 5 person start-up down the street can move faster than you. Candor is a way to keep up), 3) Cuts costs (all the meaningless reports and conversations that unnecessarily “frame” or “spin” things.

“To get candor you reward it, praise it and talk about it. You make public heroes out of those to demonstrate it”.

“Candor works because candor unclutters”

ExerciseHow did you feel when I told you to move to a

new seat?Why?How is this like change or policies in

organizations?What should be done different?How is this process influenced by our implicit

theories of leadership and power?

Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI)Covers employer’s costs

for legal fees, settlements, and judgments associated with employment-related actions such as:

DiscriminationWrongful disciplineSexual harassmentWrongful terminationNegligent evaluationInfliction of emotional

distressBreach of employment

contractDeprivation of career

opportunityImproper management of

employee benefits

Balancing Employer Security Concernsand Employee Rights

Right to PrivacyDefined in legal terms for individuals as the

freedom from unauthorized and unreasonable intrusion into their personal affairs.

Privacy Rights and Employee Records:Access to personal information held by

employerResponse to unfavorable information in recordsCorrection of erroneous informationNotification when information is given to a

third party

15–17

Body Appearance

An employer can place legitimate job-related

limits on an employee’s personal at-work

appearance such as tattoos and body

piercings.

Off-Duty Behavior

An employer can discipline an employee if

the employee’s off-the-job behavior puts the

company in legal or financial jeopardy.

Employee RecordsADA Provisions

Employee medical records are to be kept as separate confidential files available under limited conditions specified in the ADA.

Security of HR RecordsRestrict access to all HR recordsUtilize confidential passwords to HRIS databasesPlace sensitive information in separate files and

restricted databasesInform employees of types of data to retainPurge outdated data from recordsRelease information only with employee’s consent

E-mail and Voice MailElectronic Communications Policy Elements

Voice mail, e-mail, and computer files are provided by the employer and are for business use only.

Use of these media for personal reasons is restricted and subject to employer review.

All computer passwords and codes must be available to the employer.

The employer reserves the right to monitor or search any of the media, without notice, for business purposes.

Figure 16–5

Substance Abuse and Drug TestingDrug-Free Workplace Act of 1988

Requires government contractors to take steps to eliminate employee drug use. Failure to do so can lead to contract termination.

Tobacco and alcohol do not qualify as controlled substances under the act, and off-the-job drug use is not included.

U.S. Department of Transportation (DOT) requires regular testing of truck and bus drivers, train crews, mass-transit employees, airline pilots and mechanics, pipeline workers, and licensed sailors.

Figure 16–7

Drug Testing and Employee RightsConducting Drug Tests

Random testing of all employees at periodic intervals

Testing only in cases of probable causeTesting after accidents

When to Test (Conditions)Job consequences outweigh privacy concernsAccurate test procedures are availableWritten consent of the employee is obtainedResults are treated confidentiallyEmployer has drug program, including an EAP.

C:\Documents and Settings\James Avey\My

Drug Testing

While in the restroom one day at work you overhear an employee speaking about how she falsified her recent drug test. You are unable to get a look at the employee but you can narrow down a group of suspects by process of elimination based off of what you overheard. Since the employee is female and claims to have taken a drug test recently you can be sure that it is an employee from a group of new-hires that have been the only ones to have taken a drug test within the past 6 months.

Being an HR manager, how do you go about tracking down the correct employee and dealing with them accordingly?

Drug Testing

80% of major firms test

Positive- get second opinion

Adulterants/Dilution Tests- cheap but only on request

Alcohol on the Job

You are a manager for Build Big Construction Co. After a daily lunch break there is an extreme accident in which a large piece of machinery was backed into an employee’s car. The operator responsible claims it was a legitimate accident while the distressed victim makes some outrageous claims about the operator drinking while on his lunch break and therefore being clearly responsible. There is a clear no drug/alcohol policy in the employee handbook which is well known.

What are the steps that would go into an investigation of such a case and how would you deal with it in light of the results?

Employee HandbooksLegal Review of Language

Eliminate controversial phrases in wording.Use disclaimers disavowing handbook as a

contract.Keep handbook content current.

ReadabilityAdjust reading level of handbook for intended

audience of employees.Use

Communicate and discuss handbook.Notify all employees of changes in the handbook.Add EAW clause (not a defense for Wrongful

Discharge lawsuits)

Employee DisciplineDiscipline A form of training that enforces organizational

rules.Positive Discipline Approach1. Counseling2. Written Documentation3. Final Warning (decision day-off)4. Discharge

The Hot Stove RuleGood discipline (or a rule) is like a hot stove in

that:It provides a warning (feels hot)It is consistent (burns every time)It is immediate (burns now)It is impersonal (burns all alike)

No discriminator of persons No discriminator of levels

This philosophy is very theory X. However, the legal environment does not tolerate an individualized approach.

Discharge: The Final Disciplinary StepTermination Process

Coordinate manager and HR review If layoffs, do not announce until all affected people have been

notified. Move swift and cut deep. Select a neutral and private location (e.g. No e-mail even if

virtual) Conduct the termination meeting

If for cause on a Friday If layoffs without a WARN or two week notice, midweek (to find new job)

Clearly tell employee they are being terminated and why Should be no surprises (e.g., don’t bring up anything new) Be prepared with notes and example only if needed Give them time to react Discuss termination benefits. Escort the employee from the building (if terminating for

cause) Notify the department staff

Separation agreement An agreement in which a terminated employee agrees not to

sue the employer, in exchange for specified benefits.

Jack Welch (Winning)- Two rules of firing are no surprises and no humiliation “firing someone is awful, both for the person doing

the casting out and obviously for the person being asked to leave. Most good managers find the actual deed incredibly difficult—feeling guilt and anxiety both before during and after.”

Firing for integrity violations is easy. They did it. They are making you and the company look bad. They are gone.

Performance firing: 3 mistakes of firing are 1) moving to0 fast (no surprises)2) not using enough candor (no surprises)3) taking too long (preserve dignity/minimize humiliation).