copyright ©2012 by cengage learning. all rights reserved.6- 1 chapter 6 human resource decision...

Copyright ©2012 by Cengage Learning. All rights reserved. 6- 1

Chapter 6Human ResourceDecision Making in Organizations

Prepared by Joseph Mosca

Monmouth University


Learning Objectives

1. Discuss the role of ethics in human resource decision making.

2. Describe the concept of rightsizing and identify organizational strategies for rightsizing.

3. Describe how to manage termination and retention.4. Describe the elements of voluntary turnover.5. Discuss the key human resource issues during

mergers and acquisitions


Ethics and Human ResourceManagement Ethics refers to an individual’s beliefs about

what is right and wrong and what is good and bad. Ethics are formed by the societal context in which people and organizations functions.

Ethical behavior and legal behavior are not always the same because ethics and law do not always coincide precisely, therefore, managers must take steps to ensure their behavior is both ethical and legal.


Rightsizing the Organization

Rightsizing is the process of monitoring and adjusting the composition of the organization’s workforce to its optimal size.

Organizations face a real challenge in managing the size of their workforces as a way to deal with their current needs and potential future economic realities.


Temporary Solutions for Increased Demand for Employees

Overtime refers to hours worked above the normal 40.

Employee leasing involves an organization paying a fee to a leasing company that provides employees on a temporary basis. This pool of employees usually constitutes a group or crew intended to handle all or most of the organization’s work needs in a particular area.

Part-Time workers are those who work less than 40 hours a week. They typically do not receive benefits and they afford the organization a great deal of flexibility in staffing.


Three Types of Justice

Distributive justice refers to perceptions that the outcomes a person faces are fair when compared to the outcomes faced by others.

Procedural justice refers to perceptions that the process used to determine the outcome was fair.

Interactional justice refers to the quality of the interpersonal treatment people receive when a decision is implemented.


Is Downsizing Effective?

A major study was conducted in the 1990s. It tracked companies from 1980 through 1994.

Stable employers are defined as those firms in which changes in employment throughout these years fell between plus and minus 5%.

Employment downsizers are firms in which the decline in employment was more than 5% and the decline in plant and equipment was less than 5%.


Progressive Discipline

Punishment refers to following unacceptable behavior with some type of negative consequences.

Discipline refers to the system of rules and procedures for how and when that punishment is administered and how severe the punishment

Disciplinary programs are designed to improve performance.

The goal is to convince the employee to stop the ineffective behavior.


Progressive Disciplinary Plans

Verbal warnings: the first step in most progressive disciplinary programs. They are cautions conveyed orally to the employee.

Written warning: the second step in most progressive disciplinary programs. They are more formal warnings. They are given to the employee in writing and become part of the employee’s permanent record.


Progressive Disciplinary Plans (con’t)

Suspension refers to a temporary layoff and is usually the third step in progressive disciplinary plans.

Termination is the final step. The employee is finally fired.


Employment-at-Will

This is the only real legal perspective on employee termination and is based on a nineteenth-century common law rule.

This view asserts that because an employee can terminate an employment relationship at anytime (i.e. quit a job), the employer should have the same rights.

Therefore, employment-at-will states that an employer can terminate any employee at any time, for any reason (good or bad), or for no reason at all.


Job Embeddedness

Refers to the fact that some people stay on their jobs, even when they are unhappy and should leave. Other ties in the community or obligations keep the employee on the job.


The Effects of Job Dissatisfaction

Organizational commitment is the degree to which an employee identifies with an organization and is willing to exert effort on behalf of the organization.

Organizational citizenship behaviors (OCBs) include employee behaviors that are beneficial to the organization but which are not formally required as part of an employee’s job.


Measuring and Monitoring Job Satisfaction

This monitoring is done primarily through the use of attitude surveys that are distributed to employees.

The responses from these surveys are used to track changes in employees’ attitudes.


Retention Strategies

Realistic job previews (RJPs) are pre-employment previews that provide the job applicant with accurate and realistic information. They can also be used with new employees as a means of socializing them in their new job roles, and they are effective in reducing turnover.

copyright ©2012 by cengage learning. all rights reserved.6- 1 chapter 6 human resource decision...

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ethical behavior

legal behavior

ineffective behavior

unacceptable behavior

employee leasing

human resourcemanagementethics

human resourcedecision

human resource decision