CHAPETR 8: INTERGRATION AND MAINTENABCE

An employee would naturally perform a job since he is properly placed trained and compensated. However, it is
not enough that one is able to work. One must also be willing to work.

This willingness of employees to work is based largely on management’s ability to integrate the interests and
needs of employees (personal goals). That is when personal goals and organizational goals are integrated; the
result tends to be high productivity and high employee morale.

8.1 Employee discipline

Discipline means systematically conducting the business by the organizational members who strictly
adhere to the essential rules and regulations. These employees/organizational members work together as a
team so as to achieve organizational mission as well as vision and they truly understand that the
individual and group aims and desires must be matched so as to ensure organizational success.

According to Mondy and Noe, 1990, is state of employees self control and orderly conduct and indicates
the extent of genuine teamwork within an organization

A disciplined employee will be organized and an organized employee will be disciplined always.
Employee behavior is the base of discipline in an organization. Discipline implies confirming with the
code of conduct established by the organization. Discipline in an organization ensures productivity and
efficiency. It encourages harmony and co-operation among employees as well as acts as a morale booster
for the employees. In absence of discipline, there will be chaos, confusion, corruption and disobedience in
an organization.

In short, discipline implies obedience, orderliness and maintenance of proper subordination among
employees. Work recognition, fair and equitable treatment of employees, appropriate salary structure,
effective grievance handling and job-security all contribute to organizational discipline.

Discipline is viewed from two angles/dimensions:

Positive Discipline: Positive Discipline implies discipline without punishment. The main aim is to ensure and
encourage self-discipline among the employees. The employees in this case identify the group objectives as

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 1

their own objectives and strive hard to achieve them. The employees follow and adhere to the rules and
regulations not due to the fear of punishment but due to the inherent desire to harmonize in achieving
organizational goals. Employees exercise self-control to meet these goals.

Negative Discipline: Employees adhere to rules and regulations in fear of punishment which may be in form of
fines, penalties, demotions or transfers. In this case, the employees do not perceive organizational goals as their
own goals. The action taken by the management to ensure desired standard of behavior/code of conduct from
the employees in an organization is called negative discipline. The fear of punishment prevents the employees
from going off-track.

Wether and Davis(1996) suggest two ways to handle disciplinary cases in an organization

Preventive discipline is an action taken to encourage employees to follow standards and rules so t hat
infractions are prevented. It is basic objective is to encourage self- discipline

Corrective discipline is an action that follows a rule of infraction. It seeks discourage further infractions and
ensure future compliance with standards and rules. The corrective or disciplinary action is a penalty, such as
warning, or suspension without pay. In principle, disciplinary action should aim at correcting unaccepted
behavior.

Chandler and Plano (1988) have suggested 5 steps which can be used to discipline employees in an
organization.

A. Informative talk or counseling- Is used for minor first time infractions. A friendly discussion will often clear
up the problem
B. Oral reprimand warning- is used for second offenses or more severe first-time rule violations.

C. Written reprimand or warning-is a letter or memorandum written to the employee listing prior accidents,
specifies on what behavior is expected, what will happen if the behavior is not corrected.

D. Suspension or disciplinary layoffs- occurs if the behavior is not corrected. The employee is suspended or
laid off for one to thirty days. This is the final step that attempts to correct behavior before discharging.

E. Discharge- is the most drastic form of disciplinary action as it separates the employee from the job
COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 2
 General disciplinary principles

1. Disciplinary actions should be corrective rather than punitive

Positive approach- The disciplinary system should be preventive and not punitive. Concentrate on
preventing misconduct and not on imposing penalties. The employees should not only be explained the
reason for actions taken against them but also how such fines and penalties can be avoided in future.

2. Disciplinary actions should be progressive

 Identify problems and explain how the employees’ behavior detrimentally affected the
organization

 Provide clear warning and explain the consequences of failing to make the necessary behavioral
changes

 Document a progressive disciplinary action taken

 Demonstrate disciplinary actions were consistently applied to others under similar circumstances

3. Applying the hot- stove rule

Characteristics of a Sound Disciplinary System (Red Hot Stove Rule)

Discipline should be imposed without generating resentment. Mc Gregor propounded the “red hot stove rule”
which says that a sound and effective disciplinary system in an organization should have the following
characteristics-

Immediate- Just as when you touch a red hot stove, the burn is immediate, similarly the penalty for violation
should be immediate/ immediate disciplinary action must be taken for violation of rules.

Consistent- Just as a red hot stove burns everyone in same manner; likewise, there should be high consistency
in a sound disciplinary system.
COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 3
Impersonal- Just as a person is burned because he touches the red hot stove and not because of any personal
feelings, likewise, impersonality should be maintained by refraining from personal or subjective feelings.

Prior warning and notice- Just as an individual has a warning when he moves closer to the stove that he would
be burned on touching it, likewise, a sound disciplinary system should give advance warning to the employees
as to the implications of not conforming to the standards of behavior/code of conduct in an organization.

In short, a sound disciplinary system presupposes-

Acquaintance/Knowledge of rules- The employees should be well aware of the desired code of conduct/
standards of behavior in the organization. This code of discipline should be published in employee handbook.

Timely action- Timely enquiry should be conducted for breaking the code of conduct in an organization. The
more later the enquiry is made, the more forgetful one becomes and the more he feels that punishment is not
deserved.

Fair and just action- There should be same punishment for same offence/ misconduct. There should be no
favoritism. Discipline should be uniformly enforced always.

The organizations rules and regulations are intended to direct and control the effective functions of employees.
Thus, to ensure compliances with organizational standards rules and regulations must be communicated to all
employees.

Types of disciplinary problems

 Attendance
 On the job misbehavior

 Dishonesty

 Outside activity: bad mouthing the organization, criminal activities, working for competing
organizations

The disciplinary interview process

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 4

  Root out the causes
 Analyze the reason for poor performance

 Prepare for the disciplinary interview

 Conduct the interview with care & professionalism- keep it private

 Criticize selectively&

 let the employee speak

 Take one point at a time- do not confuse points

 Attack the problem and not the person

 Issuing the discipline- do not make a joke of having to discipline the employee

 Do not expect to win a popularity contest

8.2 labor unions

An employee relation is the interactions between the employer (represented by management) and the workforce
(represented by trade unions) Beech and Mckenna, 1995

Employee relation is concerned with what should be done to enhance the contributions of its emploloyees to
achieve objectives:

Maintaining good employee relations through:

Creating good working atmosphere, providing attractive rewards, having good leadership, assigning employees
to interesting and challenging tasks

Moreover, according to Armstrong (1996), an employee relation is concerned with:

 Managing and maintain formal and informal relationships with trade unions and their members.

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 5

  Sharing information with employees and involving them in decision making on matters of mutual
interest

 Creating and transferring information of interest to employees

A labor relation is the study and practice of managing unionized employment situations. In academia, labor
relations is frequently a sub area within industrial relations, though scholars from many disciplines--including
economics, sociology, history, law, and political science--also study labor unions and labor movements. In
practice, labor relations are frequently a subarea within human resource management. Courses in labor
relations typically cover labor history, labor law, union organizing, bargaining, contract administration,
and important contemporary topics.

In the United States, labor relations in the private sector are regulated by the National Labor Relations Act.
Public sector labor relations are regulated by the Civil Service Reform Act of 1978 and various pieces of state
legislation. In other countries, labor relations might be regulated by law or tradition.

An important professional association for U.S. labor relations scholars and practitioners is the Labor and
Employment Relations Association.

Employee relation objective

Milkovich and Boudreau 1991 noted that employee relations activities are those whose objective is :

 to create atmosphere of trust, respect, and cooperation

 Provide a conducive work encironment in which employees can do their jobs better

 Help management to mutually solve employees problems

Communication plays an important role in managers’ jobs as described below:

 Interpersonal role
 Informational role

 Decisional role

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 6

8.3 Collective bargaining

Definition of 'Collective Bargaining'

The process of negotiating the terms of employment between an employer and a group of workers. The terms of
employment are likely to include items such as conditions of employment, working conditions and other
workplace rules, base pay, overtime pay, work hours, shift length, work holidays, sick leave, vacation time,
retirement benefits and health care benefits.
In the United States, collective bargaining takes place between labor union leaders and the management of the
company that employs that union’s workers. The result of collective bargaining is called a collective bargaining
agreement, and it establishes rules of employment for a set number of years. The cost of this employee
representation is paid by union members in the form of dues. The collective bargaining process may involve
antagonistic labor strikes or employee lockouts if the two sides are having trouble reaching an agreement.  

A trade union is an organization of members whose purpose is to protect and maintain the interests of union
members. As workers representatives, trade unions provide workers a collective voice to make their wishes
known to management.

Types of labor unions

Unions can be classified according to type of members, scope, and degree of independence

A. According Membership

 Craft Unions – members with uniform skills needed to do a particular type of work. Eg.
Carpenter

 Industrial Unions- members from different skills and lack homogeneity

 General Unions- members representing many types of industries or companies and skills

 Employee associations- composed of associations. eg. Teachers’ association

B. According to scope

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 7

 Local union- the local operations within a relatively small area

National unions- local/regional labor unions composed of some crafts or industry may band together
into national or international union

C. According to degree of independence

A union may be independent or affiliated with a national union

For the bargaining to occur: The following conditions must exist

1. Employees must be prepared to act collectively and recognize their common interests
2. Management must recognize trade unions and their representatives as legitimate bargaining agents for
labor. Trade unions must be free to organize employees without pressure from state

Joint labor-management agreement has two outcomes:

Substantive agreements -they set out agreed out terms and conditions of employment covering pay and
working hours, holidays, and overtime regulations

Procedural agreements- like equal opportunities, recruitment, discipline, etc,

Basic types of collective bargaining

1. Distributive bargaining- occurs when labor & management are in conflict on an issue & the outcome is a
win-lose situation-ex, If the union wins an increase of 40% per hour, mgt has lost some of its profit.
2. Integrative bargaining- occurs when two sides face a common problem for example high absenteeism
among employees. Both parties can attack the problem & seek a solution that provides for a win- win
outcome.

3. Concession bargaining- exists when something of importance is given back to management;

concessions can consist wage cuts, wage freezes of previously negotiated increases, benefits reductions,
change in work rule that result in increased flexibility for management etc.

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 8

Collective bargaining and labor arbitration: an overview

Collective bargaining consists of negotiations between an employer and a group of employees so as to

determine the conditions of employment. The result of collective bargaining procedures is a collective
agreement. Employees are often represented in bargaining by a union or other labor organization. Collective
bargaining is governed by federal and state statutory laws, administrative agency regulations, and judicial
decisions. In areas where federal and state law overlap, state laws are preempted.

The main body of law governing collective bargaining is the National Labor Relations Act (NLRA). It
explicitly grants employees the right to collectively bargain and join trade unions. The NLRA was originally
enacted by Congress in 1935 under its power to regulate interstate commerce (USA)

The NLRA establishes procedures for the selection of a labor organization to represent a unit of employees in
collective bargaining. The act prohibits employers from interfering with this selection. The NLRA requires the
employer to bargain with the appointed representative of its employees. It does not require either side to agree
to a proposal or make concessions but does establish procedural guidelines on good faith bargaining. Proposals
which would violate the NLRA or other laws may not be subject to collective bargaining. The NLRA also
establishes regulations on what tactics (e.g. strikes, lock-outs, picketing) each side may employ to further their
bargaining objectives.

State laws further regulate collective bargaining and make collective agreements enforceable under state law.
They may also provide guidelines for those employers and employees not covered by the NLRA, such as
agricultural laborers.

Arbitration is a method of dispute resolution used as an alternative to litigation. It is commonly designated in

collective agreements between employers and employees as the way to resolve disputes. The parties select a
neutral third party (an arbitrator) to hold a formal or informal hearing on the disagreement. The arbitrator then
issues a decision binding on the parties. Both federal and state law governs the practice of arbitration.

Freedom of association ensures that workers and employers can associate to efficiently negotiate work relations.
Combined with strong freedom of association, sound collective bargaining practices ensure that employers and
workers have an equal voice in negotiations and that the outcome will be fair and equitable. Collective
bargaining allows both sides to negotiate a fair employment relationship and prevents costly labour disputes.
COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 9
Indeed, some research has indicated that countries with highly coordinated collective bargaining tend to have
less inequality in wages, lower and less persistent unemployment, and fewer and shorter strikes than countries
where collective bargaining is less established. Established collective bargaining practices were an element that
allowed the Republic of Korea to weather the Asian financial crisis and enabled South Africa to make a
relatively peaceful transition into the post-apartheid era. ILO (international labor organization) standards
promote collective bargaining and help to ensure that good labor relations benefit everyone.

For bargaining to takes place, according to Beardwell and Holden 1996, the following conditions must exist

1. employees must be prepared to act collectively and recognize their common interests
2. Management must recognize trade unions and their representatives as legitimate bargaining agents for
labor trade unions must be free to organize employees without pressure from state.

Joint labor- management agreement has two outcomes

These are: Substantive agreements- they set agreed terms and conditions of employment covering pay
and working hours, holidays, overtime regulations, allowances

Procedural agreements- agreed courses of actions for various eventualities such as equal opportunities,
recruitment, and discipline

Formal negotiations often follow the following stages

1. preparation-set objectives
2. negotiations

 Exchange information

 Signal likely compromise points

 Propose ways foreword

3. closing

 Summarize
COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 10
  Reach agreement

8.4 Grievance handling

The manager should immediately identify all grievances and must take appropriate steps to eliminate the causes
of such grievances so that the employees remain loyal and committed to their work. Effective grievance
management is an essential part of personnel management. The managers should adopt the following approach
to manage grievance effectively

Quick action-As soon as the grievance arises, it should be identified and resolved. Training must be given to the
managers to effectively and timely manage a grievance. This will lower the detrimental effects of grievance on
the employees and their performance.

Acknowledging grievance- The manager must acknowledge the grievance put forward by the employee as
manifestation of true and real feelings of the employees. Acknowledgement by the manager implies that the
manager is eager to look into the complaint impartially and without any bias. This will create a conducive work
environment with instances of grievance reduced.

Gathering facts- The managers should gather appropriate and sufficient facts explaining the grievance’s nature.
A record of such facts must be maintained so that these can be used in later stage of grievance redressal.

Examining the causes of grievance- The actual cause of grievance should be identified. Accordingly remedial
actions should be taken to prevent repetition of the grievance.

Decisioning- After identifying the causes of grievance, alternative course of actions should be thought of to
manage the grievance. The effect of each course of action on the existing and future management policies and
procedure should be analyzed and accordingly decision should be taken by the manager.

Execution and review- The manager should execute the decision quickly, ignoring the fact, that it may or may
not hurt the employees concerned. After implementing the decision, a follow-up must be there to ensure that the
grievance has been resolved completely and adequately.

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 11

An effective grievance procedure ensures an amiable work environment because it redresses the grievance to
mutual satisfaction of both the employees and the managers. It also helps the management to frame policies and
procedures acceptable to the employees. It becomes an effective medium for the employees to express feelings,
discontent and dissatisfaction openly and formally.

Grievance handling is an essential part of any business, in case people have been dismissed unlawfully so there
has to be a structure and rules and regulations in place. Even in well-run businesses, it may sometimes be
necessary to take disciplinary action against employees.
So in essence it is vitally important to have written disciplinary rules and procedures in place in the workplace.
If problems do arise, these procedures should help deter employees from making employment tribunal claims
and ensure that you are dealing with employees as fairly as possible
The rules and procedure with regards to grievance handling should be set out in writing, follow the good-
practice principles set out accordingly and follow your areas code of practice on disciplinary and grievance
procedures
If you do not meet these criteria then it may lead to extra compensation for the employee if they succeed in a
tribunal claim. You should by law inform each employee about a number of things including your disciplinary
rules, your disciplinary/dismissal procedure and the name of the person to whom they should appeal if they are
unhappy about a disciplinary or dismissal decision.
There should be an employee's written statement of employment or the written statement may refer the
employee to a document which is handed to everyone before employment. In cases that you do not provide this
information to an employee and they succeed in another employment tribunal claim against you in a case of
unfair dismissal, they could be awarded up to four weeks' pay.
However, if you do decide to make your disciplinary procedure contractual and you fail to follow it when taking
disciplinary action, the employee could bring something called a breach of contract claim against you.

Handling Grievance & Discipline Procedures

When dealing with a grievance:

 Ensure you're familiar with the procedure and apply it correctly

 Hold any grievance hearing in private without interruptions

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 12

  Where a grievance relates to the person's line manager, ensure that the employee can raise the grievance
with someone else

 Listen carefully to the person's explanation of the problem and consider whether there is a deeper issue
which might be the root cause of the grievance

 Listen to any conflicting points of view

 Weigh up all evidence to see whether there is an issue you need to address

 Decide what action to take, trying to balance fairness to the person without compromising the business
or other workers

 Inform all concerned parties of your decision and the appeal process

 Ensure you resolve any problems relating to policies, procedures or conduct where the grievance
procedure highlights these

 Keep the process as confidential as possible

Deal with grievances sensitively, particularly where they concern other workers. You may wish to develop
specific procedures for very sensitive matters involving unfair treatment eg, discrimination, bullying or
harassment. . Consider also having a separate "whistleblowing" procedure, so that workers are encouraged to
raise any complaints about wrongdoing eg fraud, internally rather than disclosing them outside the business.

If a worker raises a separate grievance during a disciplinary hearing, it's good practice to adjourn the hearing
until the grievance is dealt with.

By dealing with problems in a fair and reasonable manner, you're much less likely to lose valued and skilled
staff through resignation. It will also help you successfully defend a constructive dismissal claim.

Grievance- any factor involving wages, hours, conditions of employment that is used as a complaint against the
employer

SOURCES OF GRIEVANCE
COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 13
  Discipline  and incentives plans
 Seniority problems
 Overtime
 Promotions
 Union activism
 Transfers
 Company rules
 Layoffs, job evaluations,
 Insubordination
 work assignments, vacations,
 Absenteeism

GUIDELINES FOR HANDLING GRIEVANCES

The best way to handle a grievance is to develop a working environment in which grievances don’t occur in the
first place.

 If needed use arbitration

 Discuss with employees

 Examine prior grievances records

 Treat the union representatives as your equal

COMPILED BY ASHENAFI E. WOLLO UVIVERSITY, DEPARTMRNT OF MANAGEMENT, 2012 Page 14