chapter sixteen employment transitions. copyright © houghton mifflin company. all rights reserved....

Chapter Sixteen

Employment Transitions

Copyright © Houghton Mifflin Company. All rights reserved. 16–2

Chapter Outline

• Career Paths and Career Planning

• Retirement

• Voluntary Turnover

• Involuntary Turnover

• Employment-at-Will

• Discipline and Termination for Cause

• Retrenchment and Layoff


Figure 16.1(a) Linear Career Paths


Alternate Career Paths

• Expert or Professional Career Ladders– Junior engineer, Engineer, Senior Engineer

• Transitory Career Paths– Many shifts across organizations, may

include self employed periods and consulting

• Spiral Career Paths between functions to develop additional skills


Figure 16.1(b) Spiral Career Paths


Career Planning

• Self assessment of interests and skills

• Exploration of job alternatives inside and outside the organization

• Formulation of career goals and plans

• Action and periodic review and updating


Figure 16.2 Aligning Needs and Offers

Source: Mike Broscio and Joe McClenna, Scherer Schneider Paulik, Chicago, “Taking Charge: Charting Your Way To Career Success, HEALTH CARE EXECUTIVE, Nov/Dec. 2000, pp. 18-22. Copyright Scherer Schneider Paulick 2001.


Retirement

• No mandatory retirement age

• Retirement - full or partial?– Bridge jobs– Phased retirement

• The Impact of Retirement on Organizations


Factors Affecting Voluntary Turnover

• External Factors– Unemployment rate– Alternative jobs available

• Internal Factors– Job satisfaction and organizational commitment– Fairness, growth opportunities

• Embeddedness– Number of links between employee and firm,

locality, family, etc.


Figure 16.3 A Traditional Model of Quitting


Figure 16.4 The Optimal Turnover Rate

Source: Adapted from Michael A. Abelson and Barry D. Baysinger, “Optimal and Dysfunctional Turnover: Toward an Organizational Level Model,” Academy of Management Review, Vol. 9, 1984, p. 333. Reprinted by permission.


Figure 16.5 Performance Replaceability Strategy Matrix

Source: D.C. Martin and K.M. Bartol, “Managing Turnover Strategically,” Reprinted with permission from the November 1985 issue of Personnel Administrator, copyright 1985, The American Society of Personnel Administration.


Retention Management

• Find out what drives employees away (exit interviews and organizational surveys) and fix it

• Benchmark and set goals for retention, hold managers accountable for results

• Maximise opportunities for employees’ growth• Use rewards and recognition fairly and

effectively• Be flexible and family-friendly• Plan for knowledge retention before employees

leave


Employment-at-Will

• Most employees can be terminated at any time and for any reason

• Limitations on right to terminate at will:– Civil Rights Legislation– Union Contracts– Lawsuit claiming wrongful discharge


Bases for Wrongful Discharge Claim

• Violations of Public Policy

• Whistleblowing

• Expressed or Implied Guarantee of Continued Employment

• Good Faith and Fair Dealing

• Tortious Conduct by Employer


Preventing Employment-at-Will Problems

• Make explicit statements that employment is at-will

• Write contracts specifying termination procedures

• Carefully document performance or behavior problems that may lead to discharge


Discipline Systems

• Positive Discipline Without Punishment– Warning, then suspension with pay, followed by

pledge to mend ways or voluntary resignation

• Progressive Discipline Systems– Escalating penalties for repeated offences– Warnings, then suspensions, then discharge– Immediate discharge for very serious offenses


Managing Termination for Cause

• Investigate offences carefully and tactfully

• Document everything

• Have decision reviewed by a higher level


Retrenchment and Layoff

• Layoffs don’t always solve an organization’s problems

• They must be carefully planned to focus on productivity improvement not just cost cutting

• Wide involvement in planning is desirable• Communication is important• Laid off employees need outplacement

assistance• Survivors need care too


Legal Constraints on Layoffs

• Worker Adjustment and Retraining Notification Act (WARN)– Requires 60 days notice of mass layoffs or

plant closings affecting over 500 employees, or 1/3 of the workforce.


Review

• Career Paths and Career Planning

• Retirement

• Voluntary Turnover

• Involuntary Turnover

• Employment-at-Will

• Discipline and Termination for Cause

• Retrenchment and Layoff

chapter sixteen employment transitions. copyright © houghton mifflin company. all rights reserved....

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drives employees

employees leaveemployment

willmost employees

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organizational surveys