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CHAPTER 15

Employee Rights and


Responsibilities

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Learning Objectives
 Explain elements of employment contracts, including noncompete and
intellectual property agreements
 Define employment at will and discuss how wrongful discharge, just
cause, and due process are interrelated
 Discuss issues associated with employee privacy, free speech, and whistle-
blowing

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Learning Objectives (continued)
 Analyze workplace monitoring, employer investigations, and other steps
taken to ensure a safe and productive workplace
 Understand the use of policies, procedures, and employee handbooks to
communicate workplace behavior and performance expectations
 Outline approaches to employee discipline and termination of employment

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Employee Rights and Responsibilities
 Rights: Powers, privileges, or interests derived from law,
nature, or tradition
 Statutory rights: Result of specific laws or statutes passed by
federal, state, or local governments
 Equal employment opportunity
 Collective bargaining
 Workplace safety
 Responsibilities: Obligations to perform certain tasks and
duties

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Contractual Rights
 Rights based on a specific contract between an employer and an employee
 Employment contract: Formal agreement that outlines the details of
employment
 Noncompete agreement: Prohibits individuals who leave an organization
from working with an employer in the same line of business for a specified
period of time

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Rights Affecting the Employment
Relationship
 Employment at will (E A W)
 Wrongful and constructive discharge
 Just cause
 Due process
 Organizational justice

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Employment at Will (E A W)
 Common-law doctrine stating that
 Employers have the right to hire, fire, demote, or promote whomever they choose,
unless there is a law or a contract to the contrary
 Employees can quit at any time with or without notice
 Courts have recognized certain exceptions to E A W
 Public policy exception, implied contract exception, good-faith and fair-dealing
exception, and statutory exception

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Wrongful Discharge and Constructive
Discharge
 Wrongful
discharge: Termination of an individual’s
employment for reasons that are illegal or improper
 Constructive discharge: Deliberately making conditions
intolerable to get an employee to quit

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Keys for Preparing a Defense against
Wrongful Discharge
 Put together accurate performance evaluations
 Develop documentation justifying dismissals
 Provide employees with a written warning
 Provide written grounds for termination decisions
 Involve more than one person in the dismissal decision

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Just Cause and Due Process
 Just cause: Reasonable justification for taking an employment-
related action
 Due process: Occurs when an employer is determining if there
has been employee wrongdoing and uses a fair process to give an
employee a chance to explain and defend his or her actions

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Alternative Dispute Resolution (A D R) Methods
 Arbitration: Uses a neutral third party to make a binding
decision, thereby eliminating the need to involve the court
 Compulsory arbitration: Employees waive their rights to pursue legal
action until arbitration is complete
 Peerreview panels: Internal committees of employees that
review disciplinary actions and make recommendations
 Reduce lawsuits, provide due process, and lower costs

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Alternative Dispute Resolution (A D R) Methods
(continued)

 Ombuds: Individuals outside the normal chain of command who act


as independent problem solvers for both management and employees
 Mediation: Tool for developing appropriate and fair outcomes for all
parties involved
 Facilitativeapproach: Fosters communication among parties and uncovers
options for settling
 Evaluative approach: Points out potential weaknesses in each side’s case and
offers potential settlement options

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Privacy Rights
 Rightto privacy: An individual’s freedom from unauthorized and
unreasonable intrusion into personal affairs
 Change in nature of privacy issues at workplace is due to:
 Internet communications
 Social media
 Mobile devices
 Telecommunication systems

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Employee Records
 Employee medical records
 Americans with Disabilities Act
 Requires that all medical-related information be maintained separately from all other
confidential files
 Health Insurance Portability and Accountability Act
 Includes regulations designed to protect the privacy of employee medical records
 Access restrictions and security procedures
 Should exist to protect the privacy of employees and protect employers from
potential liability for improper disclosure of personal information

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Whistle-Blowing
 Whistle-blowers: Individuals who report real or perceived wrongs
committed by their coworkers or employers

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Technology and Employer–Employee Issues
 Monitoring electronic communications
 E-mail, social media, and text messaging cause major issues for privacy
 Bring your own device (B Y O D): Employees use their own mobile devices such as
smartphones and digital tablets in the workplace
H R policies on electronic communications
 Should provide guidance
 Employers should develop policies

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Recommended Employer Actions Regarding
Electronic Communications

 Develop an electronic communications policy


 Communicate the policy to employees
 Obtain signed permission from employees
 Monitor for business purposes only
 Enforce the policy through disciplinary procedures

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Employee Rights and Personal Behavior
 Counterproductive behavior
 Bullying, harassment, and assault
 Dress and body appearance limitations
 Visible tattoos, certain clothing, and body piercings
 Off-duty behavior
 Misconduct, especially when wearing clothing or badges with company identification
 Weapons in the workplace
 Balance a safe workplace with the right to bear arms

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Workplace Monitoring
 Private-sector employers can monitor, observe, and search employees
 Conducting video surveillance at work
 Employers should be careful so that employer rights and employee privacy do not
collide
 Employers should develop a policy and inform employees of the policy
 Monitoring employee performance
 Signed employee consent form stating that performance will be monitored regularly
should be obtained from employees

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Employer Investigations
 Develop a good plan to respond in crises
 Specify who will conduct the investigation
 Investigate problems quickly before evidence can be tampered with
 Assess the credibility of individuals and information in an investigation
 Use the stories and information collected to conclude the investigation and
recommend any remedial steps

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Employee Theft and Fraud
 White-collar
theft occurs through embezzling, accepting bribes, and
stealing company property
 Addressing employee theft and other workplace misconduct
 Conduct thorough pre-hire applicant screening and background investigations
 Use honesty tests both before and after a person is hired
 Use workplace monitoring to review unusual behaviors
 Develop an ethics code that outlines appropriate behaviors, and conduct ethics training
 Conduct internal checks and balances and audits regularly

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Honesty and Polygraph Tests
 Employee Polygraph Protection Act
 Prohibits the use of polygraphs for most pre-employment screening
 Requires that employees must:
 Be advised of their rights to refuse to take a polygraph exam
 Be allowed to stop the exam at any time
 Notbe terminated because they refuse to take a polygraph test or solely because of the
exam results

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Negative Impacts of Substance Abuse in the Workplace
 Work performance  Financial costs
 Inconsistent work quality  Inadequate production
 Increased absenteeism  Rework or replacement for poor
 Carelessness and mistakes quality production
 Risky, unsafe acts  Coverage for absences
 Personal behavior  Workers’ compensation and
 Blaming coworkers for own errors health care
 Complaints and excuses for time off
 Deteriorating personal hygiene
 Avoiding colleagues
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Drug Testing and Employee Rights
 Policies for conducting  Test conditions
drug tests  Job-related consequences outweigh privacy
 Random testing of all concerns
employees at periodic  Accurate test procedures are available
intervals
 Written consent of the employee is obtained
 Testing only in cases of
 Results are treated confidentially
probable cause
 Employer offers a complete drug
 Testing after accidents
rehabilitation program, including an
employee assistance program

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H R Policies, Procedures, and Rules
 Policies: General guidelines that help focus organizational actions
 Procedures: Customary methods of handling activities
 More specific than policies
 Rules: Specific guidelines that regulate and restrict individuals’ behavior

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Shared Responsibility for Policies,
Procedures, and Rules
 H R unit  Managers
 Designs formal mechanisms for  Help in developing H R policies and rules
coordinating H R policies
 Review policies and rules with all employees
 Assists in developing organization-wide H R
policies, procedures, and rules  Apply H R policies, procedures, and rules
 Provides information on application of H R  Explain rules and policies to all employees
policies, procedures, and rules
 Give feedback on effectiveness of policies and rules
 Trains managers to administer policies,
procedures, and rules

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Employee Handbook
 Physicalor electronic manual that explains a company’s essential policies,
procedures, and employee benefits
 Communicates workplace culture, benefits, attendance, pay practices,
safety issues, discipline, and other critical information
 Effective when written in common language rather than legalistic fashion

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Recommendations on Creating an
Employee Handbook
 Eliminate controversial phrases
 Use disclaimers that are prominently displayed
 Keep the handbook content current

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Possible Topics for an Employee Handbook
 Workplace conduct
 Introduction
 Harassment and civility policies
 Welcome message
 Professional attire and behavior
 Company history
 Attendance requirements
 Mission, vision, and values
 Disciplinary procedures
 General employment policies
 Employment
 Compensation and benefits
and labor laws
 Employment status and work hours
 Pay grades and pay increase policy
 Nondisclosure and intellectual property  Performance management process
protections  Benefits eligibility
 Use of company technology/bring your own  Paid time off/vacation entitlement
device policy

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Communicating H R Information
 Downward communication
 Flows from top management to the rest of the organization
 Informs employees about what is and will be happening in the organization
and what top management’s expectations and goals are
 Upward communication
 Enables managers to learn about the ideas, concerns, and information needs
of employees

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Employee Discipline
 Discipline: Process of corrective action used to enforce organizational
rules
 Effective discipline:
 Is aimed at problem behaviors, not at employees personally
 Is monitored by H R to ensure that remedial actions follow corporate and legal
guidelines, are appropriate, and are fair and consistent
 Relies on supervisors and managers who are properly trained on when and how to use
discipline

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Approaches to Discipline
 Positive discipline approach
 Counseling
 Written documentation
 Final warning
 Discharge
 Progressive discipline approach
 Incorporates steps that become progressively more severe and are designed to change
the employee’s inappropriate behavior

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Figure 14-9:
Progressive Discipline Process

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Challenges in Employee Discipline
 At-will employment
 Formally stated discipline processes can undercut at-will provisions
 Fairness and consistency
 Equity should be the key
 Documentation problems
 Documenting issues ensures the process is done correctly
 Reluctance to discipline

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Employee Discipline (continued)
 Reasons why managers might not use discipline
 Organizational culture of avoiding discipline
 Lack of support from higher management
 Guilt about past behavior
 Fear of loss of friendship
 Avoidance of time loss
 Fear of lawsuits

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Termination
 Occurs when an employee is removed from a job at an organization
 Occurs for numerous reasons such as excessive violations of attendance
policies and behavioral issues
 Treating employees with dignity and respect is an ethical approach
 Separationagreement: Terminated employee agrees not to sue the
employer in exchange for specified benefits

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CHAPTER 16

Union–Management
Relations

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Learning Objectives
 Discuss
what a union is and explain why employees join and
employers resist unions
 Outline the current state of union activity in the United States and
identify several reasons for the decline in union membership

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Unions
 Union: Formal association of workers that promotes the
interests of its members through collective action
 Employees join unions because:
 They are dissatisfied with how they are treated by employers
 They believe that unions can improve their work situations

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Perspectives on Unionization
Advantages Disadvantages
 Provides a channel for  Negatively impacts the
feedback about employee allocation of organizational
concerns and suggestions resources
 Balances unchallenged  Decreases profitability
decision-making power of  Hurts productivity as a
management
result of increased
 Increases job tenure, compensation and rigid
performance, and employee work practices
earnings

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Factors Leading to Employee Unionization
 Working conditions  Management style
 Inadequate staffing  Arbitrary decision making
 Mandatory overtime  Use of fear/intimidation and autocratic
leadership
 Unsatisfactory work requirements
 Lack of recognition
 Unrealistic expectations
 Employee treatment
 Compensation
 Job insecurity
 Noncompetitive pay and inequitable pay
raises  Unfair discipline/policies
 Inadequate benefits  Lack of response to complaints
 Unfair allocation of resources  Harassment/abusive behaviors

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Why Employers Resist Unions
 Unions affect how employees and workplaces are managed
 Unionsmay create inefficiencies in the workplace that cause
waste and poor performance
 Unionworkers frequently receive higher compensation than
nonunion workers

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Prevention of Unions
 Develop good employment practices
 Earn employee trust
 Encourage employee feedback
 Offer fair, competitive compensation
 Build supportive supervisory relationships with workers
 Ensure that both H R professionals and operating managers are
attentive and responsive to employees

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Reasons for U.S. Union Membership
Long-Term Decline
 Changing job conditions
 Deregulation

 Foreign competition
 Increased right-to-work legislation
 Increased use of temporary or contingent workers
 Improved workplace practices
 Unions no longer seen as necessary

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Reasons for U.S. Union Membership Long-Term
Decline (continued 1)
 Geographic changes
 Firms may elect to move their operations to places that are less
open to unions or to places where there is cheaper labor and
fewer employment restrictions
 Industrial changes
 Jobs in the United States have shifted from manufacturing,
construction, and mining industries to service industries
 Private-sector union membership is primarily concentrated in
the shrinking part of the economy

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Reasons for U.S. Union Membership Long-Term
Decline (continued 2)
 In 2017, union representation of nongovernmental employees was
heavily concentrated in utilities, transportation and warehousing,
and other industrial sectors
 Unions are not making significant progress in the fastest-
growing segments of the U.S. economy
 Workforce changes
 Decline in many blue-collar jobs in heavy industry and
increase in white-collar jobs
 Growing percentage of women in the U.S. workforce

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Typical Unionization Process
 Involves  Employers’ union prevention  Unions’ organizing efforts can include:
the
following steps: efforts can include:  Personally contacting employees outside

 Emphasizing good morale and work


 Organizing campaign loyalty  Mailing materials to employees’ homes
 Authorization  Paying competitive wages and  E-mailing information about the union to
cards/petition filing benefits employees
 Using a fair system for dealing
 Inviting employees to attend special
 Representation election meetings away from the company
with complaints
 Certification  Publicizing advantages of union
 Providing safe working membership
 Collective conditions
 Distributing brochures and leaflets
bargaining/contract  Creating no-solicitation policies
negotiation
 Salting: Unions hire and pay people to apply
 Hiring “union busters” for jobs at certain companies to begin
organizing efforts
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Authorization Cards
 Union authorization card: Card signed by employees to
designate a union as their collective bargaining agent
 30% of the employees must sign authorization cards for a representative
election to be scheduled
 If enough employees sign authorization cards, a union could be designated
as their representative without an election

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Representation Election
 Bargaining unit: Employees eligible to select a single union to
represent and bargain collectively for them
 The Taft-Hartley Act excludes supervisors from voting for or joining
unions
 Resultsin the exclusion of supervisors in bargaining units for unionization
purposes except in industries covered by the R L A

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Unfair Labor Practices during Organizing Campaigns
 Threateningto reduce pay, fire workers, or take other negative steps to
prevent workers from voting for a union
 Questioning
employees to learn who initiated the organizing attempt and
how workers plan to vote
 Promising pay raises or other perks in exchange for employees rejecting
the union
 Spying on employees to find out who is participating in union organizing
activities

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Contract Negotiation or Collective Bargaining
 Process whereby representatives of management and workers
negotiate over wages, hours, and other terms and conditions of
employment
 Goal is to establish conditions beneficial to both
 Balances the power between parties
 Collective bargaining agreements will be in force for several years

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Figure 15-10: Continuum of Collective Bargaining Relations

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Collective Bargaining Issues
 Bargaining issues
 Management rights: Rights reserved so that the employer
can manage, direct, and control its business
 Union security provisions: Contract clauses to help the union
obtain and retain members and collect union dues
 Require union membership of all employees, subject to state
right-to-work laws
 Dues checkoff clause: Provides for the automatic deduction of
union dues from the payroll checks of union members

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Classification of Collective
Bargaining Issues
 Mandatory issues: Negotiation topics and collective
bargaining issues identified specifically by labor laws
or court decisions as subject to bargaining
 Permissive issues: Collective bargaining issues that
are not required but might relate to certain jobs or
practices
 Illegalissues: Collective bargaining issues that would
require either party to take illegal action

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Mandatory Subjects of Collective
Bargaining
 Compensation

 Wages, merit increases, and bonuses


 Benefits

 Pensions, profit sharing, and health and welfare plans


 Working conditions
 Grievance procedures, disciplinary procedures, drug testing, seniority, promotions and
transfers, worker health and safety, work assignments, and plant closings

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Collective Bargaining Process
 Consists of four possible stages:
 Preparation and initial demands
 Negotiations
 Settlement or impasse
 Strikes and lockouts

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Preparation and Initial Demands
 Employer and industry data on the following are gathered:
 Wages, benefits, working conditions, management and union rights,
productivity, safety, and absenteeism
 Core bargaining issues
 Wages
 Benefits
 Working hours and conditions

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Continuing Negotiations
 Eachside attempts to determine what the other side values
highly so that the best bargain can be struck
 Good-faith negotiations
 Parties agree to send negotiators who can bargain and make decisions
rather than people who do not have the authority to commit either group
to a decision
 Tobe more effective, meetings should be conducted
professionally and address issues rather than being
confrontational

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Settlement and Contract Agreement
 Ratification: Process by which union members vote to accept the terms of a
negotiated labor agreement
 Before ratification, the union negotiating team explains the agreement to the
union members and presents it for a vote
 If the members approve the agreement, it is then formalized into a contract

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Typical Items in a Labor Agreement
 Purpose of agreement
 Nondiscrimination clause
 Management rights
 Recognition of the union
 Dues checkoff
 Wages, incentives, and hours of work
 Vacations and sick/absence leaves
 Discipline

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Typical Items in a Labor Agreement
(continued)
 Separation allowance
 Seniority and pension/insurance
 Safety

 Grievance procedure
 No-strike or lockout clause
 Definitions

 Terms of contract (dates)


 Appendices

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Handling Bargaining Impasse
 Conciliation: Process by which a third party facilitates
the dialogue between union and management
negotiators to reach a voluntary settlement
 Mediation: Process by which a third party suggests
ideas to help the negotiators reach a settlement
 Arbitration:Process that uses a neutral third party to
make a decision

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Strikes and Lockouts
 Lockout: Management shuts down company
operations to prevent union members from working
 Strike:Union members refuse to work in order to put
pressure on an employer
 Replacement of workers on strike
 Management sometimes replaces workers who strike
 Workers’ rights vary depending on the type of strike that
occurs

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Types of Strikes
 Economic strikes
 Parties fail to reach agreement during collective bargaining
 Unfair labor practices strikes
 Union members leave their jobs over what they feel are illegal employer actions
 Wildcat strikes
 Occur during the life of the collective-bargaining agreement without approval of
union leadership and violate a no-strike clause in a labor contract

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Types of Strikes (continued)
 Strikers can be discharged or disciplined
 Jurisdictional strikes
 Members of one union walk out to force the employer to assign work to them instead
of to members of another union
 Sympathy strikes
 One union chooses to express support for another union involved in a dispute, even
though the first union has no disagreement with the employer

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Union–Management Cooperation
 Employee-involvement programs
 Successful organizational restructurings
 Occur when unions have been able to obtain information and
share that information with their members to work constructively
with company management at various levels
 Unions and employee ownership
 Unions have encouraged workers to become partial or full
owners of the firms that employ them
 Employee stock ownership plans for union members have
been successful in some situations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Resolving Disputes
 Divisionof responsibilities between the H R unit and
operating managers for handling grievances varies
from one firm to another, even among unionized firms
 Grievance: Complaint formally stated in writing
 Complaint: Indication of employee dissatisfaction
 Grievance procedures: Specific steps used to resolve
grievances

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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