INTERNAL EMPLOYEE RELATIONS Chapter 13 © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly

INTERNAL INTERNAL EMPLOYEE EMPLOYEE RELATIONSRELATIONSChapter 13Chapter 13

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. 15–1

Internal Employees Internal Employees Relations DefinedRelations Defined

Human resource activities associated with Human resource activities associated with movement of employees within firm after movement of employees within firm after they become organizational membersthey become organizational members

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Employee Rights and ResponsibilitiesEmployee Rights and Responsibilities• RightsRights

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

• ResponsibilitiesResponsibilities Obligations to perform certain tasks and duties.Obligations to perform certain tasks and duties.

• Statutory RightsStatutory Rights Rights based on specific laws and statutes passed by Rights based on specific laws and statutes passed by

federal, state, and local governments.federal, state, and local governments.Equal employment opportunityEqual employment opportunityCollective bargainingCollective bargainingWorkplace safetyWorkplace safety


Contractual RightsContractual Rights• Contractual RightsContractual Rights

Rights based on a specific contract between Rights based on a specific contract between employer and employee.employer and employee.

• Employment ContractEmployment Contract An agreement that formally outlines the details of An agreement that formally outlines the details of

employment.employment.

• Implied ContractImplied Contract The idea that a contract exists between the employer The idea that a contract exists between the employer

and the employee based on the implied promises of and the employee based on the implied promises of the employer.the employer.


Contractual Rights (cont’d)Contractual Rights (cont’d)• Non-Compete AgreementsNon-Compete Agreements

Prohibit individuals who quit from competing with an Prohibit individuals who quit from competing with an employer in the same line of business for a specified employer in the same line of business for a specified period of time.period of time.

Non-piracy agreements

Non-solicitation of current

employees

Intellectual property and trade secrets

Employment Contract Clauses


Contractual Rights (cont’d)Contractual Rights (cont’d)• Employer’s Intellectual Property Rights:Employer’s Intellectual Property Rights:

The right to keep trade secrets confidentialThe right to keep trade secrets confidential The right to have employees bring business The right to have employees bring business

opportunities to the employer first before pursuing opportunities to the employer first before pursuing them elsewherethem elsewhere

A common-law copyright for works and other A common-law copyright for works and other documents prepared by employees for their documents prepared by employees for their employersemployers


Employee Rights and Personal Employee Rights and Personal BehaviorBehavior

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.


Balancing Employer Security Balancing Employer Security and Employee Rightsand Employee Rights

Workplace Monitoring

• Monitoring e-mail and voicemail

• Conducting video surveillance at work

• Monitoring employee performance

Employer Investigations

• Conducting work-related investigations

• Employee theft

• Honest and polygraph tests


HR Policies, Procedures, and RulesHR Policies, Procedures, and Rules

Policies

General guidelines that focus

organizational actions.

“Why we do it”

Procedures

Customary methods of handling activities

“How we do it”

Rules

Specific guidelines that regulate and

restrict the behavior of individuals.

“The limits on what we do”

Employee Rights


Employee MisconductEmployee Misconduct

Sample

Sample

Sample

SampleSample

Sample

SampleSample

Illegal Drug Use

Falsification of Documents

Misuse of Company Funds

Disclosure of Organizational

Secrets

Workplace Violence

Employment Harassment

Employee Theft

Types ofEmployee Misconduct

Internal Employee Internal Employee Relations ActivitiesRelations Activities

• DisciplineDiscipline• TerminationTermination• DownsizingDownsizing• DemotionDemotion• TransferTransfer• PromotionPromotion• ResignationResignation• Retirement Retirement

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Discipline and Disciplinary ActionDiscipline and Disciplinary Action

• Discipline: Discipline: State of employee self-State of employee self-control and orderly conduct control and orderly conduct

• Disciplinary action: Disciplinary action: Invokes penalty Invokes penalty against employee who fails to meet against employee who fails to meet established standardsestablished standards

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Disciplinary ActionDisciplinary Action

• Word Word discipline discipline comes from word comes from word disciple disciple

Translated from Latin, it means Translated from Latin, it means to to teach teach

• Intent should be to ensure recipient sees Intent should be to ensure recipient sees disciplinary action as learning process disciplinary action as learning process

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Effective Disciplinary Action Effective Disciplinary Action

• Addresses employee’s wrongful behavior, Addresses employee’s wrongful behavior, not employee as a personnot employee as a person

• Should not be applied haphazardlyShould not be applied haphazardly

• Not usually management’s initial response Not usually management’s initial response to a problem to a problem

• Normally are more positive ways of Normally are more positive ways of convincing employees to adhere to convincing employees to adhere to company policies company policies

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The Disciplinary Action ProcessThe Disciplinary Action Process

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Set Organizational Goals

Establish Rules

Communicate Rules to Employees

Take Appropriate Disciplinary Action

Observe Performance

Compare Performance with Rules

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

Progressive Disciplinary Action Progressive Disciplinary Action

• Ensures minimum penalty appropriate to offense Ensures minimum penalty appropriate to offense is imposed is imposed

• Model developed in response to National Labor Model developed in response to National Labor Relations Act of 1935 Relations Act of 1935

• Involves answering series of questions about Involves answering series of questions about severity of offense severity of offense

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The Progressive Disciplinary ApproachThe Progressive Disciplinary Approach

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Improper Behavior

Does this violation warrant disciplinary actions?

Does this violation warrant more than an oral warning?

Does this violation warrant more than a written warning?

Does this violation warrant more than a suspension?

Termination

Yes

Yes

Yes

Yes

Yes

No Disciplinary Action

Oral Warning

Written Warning

Suspension

No

No

No

No

Suggested Guidelines for Disciplinary Suggested Guidelines for Disciplinary ActionAction

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Offenses Requiring First, an Oral Warning; Second, a Written Warning; and Third, Termination

Negligence in the performance of duties Unauthorized absence from job Inefficiency in the performance of job

Offenses Requiring a Written Warning; Second, Termination

Sleeping on the job Failure to report to work one or two days in a row without notification Negligent use of property

Offenses Requiring Immediate Termination

Theft Fighting on the job Falsifying time cards Failure to report to work three days in a row without notification

Disciplinary Action AdviceDisciplinary Action Advice

• Managers often avoid disciplinary action, Managers often avoid disciplinary action, even when it is in company’s best interest even when it is in company’s best interest

• Many supervisors may be too lenient early Many supervisors may be too lenient early in disciplinary action process and too strict in disciplinary action process and too strict later later

• Proper time and place to administer Proper time and place to administer disciplinary action is crucialdisciplinary action is crucial

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Organizational culture of avoiding discipline

Lack of support by higher

management

Fear of lawsuits

Avoidance of time loss

Guilt about past behavior

Fear of loss of friendship

Reasons Why Managers

Might Not Use Discipline


Employee Discipline (cont’d)Employee Discipline (cont’d)

Positive Discipline

1. Counseling2. Written Documentation3. Final Warning (decision

day-off)4. Discharge

Progressive Discipline

1. Verbal Caution2. Written Reprimand3. Suspension4. Discharge

Approaches to Discipline


FIGURE 15–9 Progressive Discipline Process

Trends & Innovations: Emotional Trends & Innovations: Emotional Intelligence Needed in Disciplinary Intelligence Needed in Disciplinary Action Action

• Ability to recognize and manage emotionsAbility to recognize and manage emotions• Capacity for recognizing own feelings and those Capacity for recognizing own feelings and those

of othersof others• Quality needed in disciplinary action Quality needed in disciplinary action

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Emotional IntelligenceEmotional IntelligenceDaniel GolemanDaniel Goleman

The Four Branches of Emotional The Four Branches of Emotional IntelligenceIntelligence

1.1. the perception of emotion, the perception of emotion,

2.2. the ability reason using emotions, the ability reason using emotions,

3.3. the ability to understand emotionthe ability to understand emotion

4.4. the ability to manage emotions.the ability to manage emotions.

Perceiving EmotionsPerceiving Emotions

The first step in understanding emotions is to The first step in understanding emotions is to accurately perceive them. In many cases, this accurately perceive them. In many cases, this might involve understanding nonverbal signals might involve understanding nonverbal signals such as body language and facial expressions.such as body language and facial expressions.

Reasoning With EmotionsReasoning With Emotions

The next step involves using emotions to promote The next step involves using emotions to promote thinking and cognitive activity. Emotions help thinking and cognitive activity. Emotions help

prioritize what we pay attention and react to; we prioritize what we pay attention and react to; we respond emotionally to things that garner our respond emotionally to things that garner our

attention.attention.

Understanding EmotionsUnderstanding Emotions

The emotions that we perceive can carry a wide The emotions that we perceive can carry a wide variety of meanings. If someone is expressing variety of meanings. If someone is expressing

angry emotions, the observer must interpret the angry emotions, the observer must interpret the cause of their anger and what it might mean. For cause of their anger and what it might mean. For

example, if your boss is acting angry, it might example, if your boss is acting angry, it might mean that he is dissatisfied with your work; or it mean that he is dissatisfied with your work; or it

could be because he got a speeding ticket on his could be because he got a speeding ticket on his way to work that morning or that he's been way to work that morning or that he's been

fighting with the spouse.fighting with the spouse.

Managing EmotionsManaging Emotions

The ability to manage emotions effectively is a The ability to manage emotions effectively is a key part of emotional intelligence. Regulating key part of emotional intelligence. Regulating

emotions, responding appropriately and emotions, responding appropriately and responding to the emotions of others are all responding to the emotions of others are all important aspect of emotional managementimportant aspect of emotional management

Downsizing Downsizing

• Also known as Also known as restructuringrestructuring and and rightsizingrightsizing

• Reverse of company growthReverse of company growth

• Suggests one-time change in organization Suggests one-time change in organization and number of people employed and number of people employed

• Both organizational structure and number Both organizational structure and number of people in organization shrink for purpose of people in organization shrink for purpose of improving organizational performance of improving organizational performance

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Negative Aspects of Downsizing Negative Aspects of Downsizing

• Natural grieving period; desire to go back to way Natural grieving period; desire to go back to way things used to be things used to be

• Layers removed, making advancement in Layers removed, making advancement in organization more difficult organization more difficult

• Workers may seek better opportunities, fearing Workers may seek better opportunities, fearing they may be in line for layoffs they may be in line for layoffs

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Negative Aspects of Negative Aspects of Downsizing (Cont.) Downsizing (Cont.)

• Employee loyalty significantly reduced Employee loyalty significantly reduced • Institutional memory lostInstitutional memory lost• Remaining workers required to do more Remaining workers required to do more • When demand for products or services returns, When demand for products or services returns,

firm may realize it has cut too deepfirm may realize it has cut too deep

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Ombudsperson Ombudsperson

• Complaint officer with access to top Complaint officer with access to top management management

• Hears employee complaints, investigates, Hears employee complaints, investigates, and recommends appropriate action and recommends appropriate action

• Impartial, neutral counselor who gives Impartial, neutral counselor who gives employees confidential advice employees confidential advice

• Typically independent of line management Typically independent of line management and reports near or at top of organization and reports near or at top of organization

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A Global Perspective: Administering A Global Perspective: Administering Disciplinary Action in the Global Disciplinary Action in the Global EnvironmentEnvironment• Moving into international arena, often Moving into international arena, often

presents different disciplinary action presents different disciplinary action situationssituations

• Much harder to terminate person in Much harder to terminate person in Europe than in North America Europe than in North America

• Difficult for global company to establish Difficult for global company to establish standardized policy on disciplinary actionstandardized policy on disciplinary action

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