Managing Employee Relations

Chapter 11

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-1

 Learning Objectives
1. Discuss the importance of downward and upward
communication in organizational settings.
2. Define employee counselling and the major types of
counselling.
3. Describe how progressive discipline and wrongful dismissal
work.
4. Explain the different techniques available to improve quality
of work life.
5. Outline the major issues relating to downsizing the
workforce and their implications for strategic human
resource management.
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-2
 Employee Relations
The state of employee relations in an organization is
determined by how human resource planning,
placement, training and development, evaluation, and
compensation is handled

Human resource initiatives – such as policies on

workplace and sexual harassment, conflict resolution
procedures, and employee involvement programs –
play an important role in enhancing employee
relations
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-3
 Strategic Importance of
Employee Relations Practices

• Productivity is significantly
Improve
impacted by ability and
Productivity
attitude

Implementation • Goals and strategies are

of communicated
Organizational • Employees provide
Strategies commitment

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-4

 Strategic Importance of
Employee Relations Practices Cont’d

• Reduced absenteeism and

Reduce
turnover
Employment • Provides recruitment
Costs
advantage
• Help employees achieve
Help Employees
personal goals
Grow and • Improve morale, loyalty &
Develop
productivity

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-5

 Five Key Dimensions of Employee
Relations

Schwind 13th Edition, Figure 11-1

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-6
 Effective Employee Communication
Downward Upward
• In-House publications • Grapevine
• Prerecorded messages • Electronic communication
• Electronic • Complaint procedures
communication • Manager-employee
• Social media / Mobile meetings
Devices • Suggestion systems
• Information sharing and • Employee attitude/opinion
open-book surveys
management

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-7

 Employee Counselling
Discussion of a problem with an employee to resolve
the issue and/or help the employee cope
Employee Assistance Program (EAP)
• Comprehensive company program that seek to help
employees to overcome personal and work-related
problems
• Online communications are increasingly being used to
supplement EAP structures

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-8

 Employee Discipline: Preventive
Employee discipline is management action taken to
encourage compliance with standards
Preventive Discipline
• Action taken prior to any infraction to encourage
employees to follow the rules
• HR is responsible for developing programs and
communication

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-9

 Employee Discipline: Corrective
Corrective Discipline follows a rule infraction
(e.g., a warning, suspension without pay)
The objectives of disciplinary action are:
• To reform the offender
• To deter others from similar actions
• To maintain consistent, effective group standards

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-10

 Restrictions on Discipline
May be restricted by union contracts and government
legislation
Due process to ensure established rules and
procedures are followed
A useful guide for corrective discipline is the hot-stove
rule:
• With warning
• Immediate
• Consistent
• Impersonal
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-11
 Progressive Discipline
Stronger penalties for repeated offences
• Verbal reprimand by supervisor
• Written reprimand; with a record in file
• 1-3 day suspension
• Suspension for 1 week+
• Discharge for cause
It is essential that employers document
discipline efforts

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-12

 Positive Discipline
Takes a problem-solving approach
Employee accepts that a problem exists and takes
responsibility
4 suggestions for positive disciplinary interviews:
• Focus on the conversation, not the disciplinary action
• Change the name of disciplinary steps (from reprimands
and warnings to notice and conversation)
• Provide employees with the opportunity to clear their
record
• Avoid unpaid suspensions
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-13
 Dismissal
The ultimate disciplinary action is dismissal
Wrongful Dismissal
• The termination of an employee without just cause or
without giving the employee reasonable notice or pay in
lieu of notice
• Non-union employer who does not have just cause for
dismissing an employee may be sued for wrongful dismissal
Determining Just Cause for Dismissal
• Any act by an employee that could have serious negative
effects on the organization
• Employer is responsible for proving just cause

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-14

 Incompetent Work Performance
Incompetent work performance is one justification for
just cause dismissal
Requirements in dismissing an incompetent employee
include:
• Providing reasonable, objective standards of performance
• Showing that employee failed to meet standards
• Establishing that employee was given a clear warning
including warning that dismissal could result if standards
were not met

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-15

 Employee Misconduct
Employee misconduct can also potentially lead to just
cause dismissal
Four classes of misconduct identified in the case law
including:
1. Unfaithful service to the employer
2. Misconduct of a general nature
3. Theft, fraud, or dishonesty
4. Willful disobedience of a reasonable and lawful order.
Business or economic reasons are not just cause for
dismissal because such factors are not related to the
employee’s behaviour
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-16
 Constructive Dismissal
A major change in the employment terms that results
in an employee resigning may be considered
constructive dismissal
Examples:
• Significant change in job function
• Demotion
• Demand for an employee’s resignation
• Forced transfer

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-17

 Reasonable Notice
When an employer does not have just cause for
dismissal, “reasonable notice” or compensation in lieu
of notice is required
Considerations include:
• Employee’s age
• Length of service
• Salary
• Occupational status
• Labour market conditions

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-18

 The Wallace Effect
Decision of the Supreme Court in Wallace v. United
Grain Growers
• Resulted in the awarding of extended periods of notice in
a number of wrongful dismissal cases where the
employer acted in a callous manner
• In the Honda Canada v. Keays decision, addressed bad-
faith damages and restricted use of punitive damages

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-19

 Managing the Dismissal
Guidelines to follow in dismissing an employee
• Prepare for the interview and conduct a rehearsal
• Consider the employee’s perspective
• Get to the point
• Select the time and a private place
• Have necessary information ready
• Notify others and ensure duties are covered
• May require special security measures

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-20

 Employee Rights: Right to Privacy
Collect only job-related information
PIPEDA requirements
Many organizations monitor their employees’
communications and activities on the job

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-21

 Employee Rights:
Right to Fair Treatment
Employer cannot consider age, race, gender etc. and
has an obligation to make reasonable accommodation
Right to work in a safe and harassment-free
environment

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-22

 Cannabis Legalization
Employer concerns include:
• Lack of product knowledge
• Unavailability of an accurate and reliable test of
impairment
• Use in safety-sensitive positions
Will be important to distinguish between
recreational and medical use
• Accommodation
• Risk of blanket zero tolerance policy
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-23
 Employee Involvement
Self-Directed Work Teams
• Teams of workers who make decisions
traditionally handled by a supervisor
High-Involvement Work Practices
• Set/bundle of human resource practices aimed at
increasing employee/employer performance

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-24

 Employee Involvement Cont’d
Employee Self-Service - aimed at reducing
administrative work
• Productivity Applications
– Management of personal data, retirement plans,
and health and benefits management
• Strategic Applications
– Online recruitment and skills management
applications

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-25

 Job Security, Downsizing,
and Employee Retention
No-Layoff Policies
• Contrary to the downsizing trend of the 1990s,
some organizations are developing no-layoff
policies
• Employees who have job security are more
receptive to change and more likely to be
innovative

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-26

 Job Security, Downsizing,
and Employee Retention Cont’d
Organizational Downsizing
• Reducing employment to improve organizational
performance

Three types of downsizing strategies:

1. Workforce Reduction
2. Work Redesign
3. Systematic Change

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-27

 Artificial Intelligence and Job Loss
Advances in AI, machine learning, and
computerization are radically changing the
nature of work
High risk of job redundancy:
• Retail salespeople, admin assistants, food
counter attendants, cashiers, truck drivers
Low risk of job redundancy:
• Management, teaching, science, technology,
engineering, math
© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-28
 Retaining Top Performers
Develop a planned approach to employee retention
Become an employer of choice
Communicate vision and values clearly, frequently, and
consistently
Reward managers for keeping good people
Use exit interviews to obtain information

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-29

11 Managing Employee Relations
Summary
After mastering this chapter content, you should be able to:
1. Discuss the importance of downward and upward
communication in organizational settings.
2. Define employee counselling and the major types of counselling.
3. Describe how progressive discipline and wrongful dismissal work.
4. Explain the different techniques available to improve quality of
work life.
5. Outline the major issues relating to downsizing the workforce
and their implications for strategic human resource
management.

© 2022 McGraw-Hill Education Ltd. Schwind 13th Edition 11-30