Professional Documents
Culture Documents
09DRG Lecture Week 13 (Chapter 15 & 16)
09DRG Lecture Week 13 (Chapter 15 & 16)
© 2020 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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)
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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
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
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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
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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
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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
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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
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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
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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
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