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© 2005 Prentice Hall Inc.All rights reserved.

PowerPoint Presentation by Charlie CookThe University o !est Alaba"a

t e n t h e d i t i o n

GaryGary

DesslerDessler

PartPart 55 #"$loyee %elations #"$loyee %elationsCha$ter Cha$ter &'&'

Ethics, Justice, and Fair TreatmentEthics, Justice, and Fair Treatment

in HR Managementin HR Management

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After studying this chapter, After studying this chapter,

you should be able to: you should be able to:

1. Explain what is meant by ethical behavior at work.

2. Discuss important factors that shape ethicalbehavior at work.

3. Describe at least four specific ways in which HRmanagement can influence ethical behavior at

work.

. Employ fair !isciplinary practices.

". #ist at least four important factors in managing!ismissals effectively.

© 2005 Prentice Hall Inc. All rights reserved. © 2005 Prentice Hall Inc. All rights reserved. &'(&'(22

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© 2005 Prentice Hall Inc.

All rights reserved. 14–3

Ethics and Fair Treatment at Work

Ethics– The principles of conduct governing an

individual or a group; specically, thestandards you use to decide what your

conduct should be– Ethical behavior depends on the person!s

frame of reference

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The Wall "treet #ournal Workplace$Ethics %ui&

)ig*re &'(&$ource% &all $treet 'ournal , October 21, 1999, pp. B1B!" Ethics O##icer $ssociation, Be%mont, M$" Ethics &eadership

'roup, (i%mette, )&" sur*e+s samp%ed a crosssection o# -orers at %arge companies and nation-ide.

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Factors a'ecting ethical decisions

(ormative )u!gments– #udging something as good or bad, right or

wrong, better or worse

*oral stan!ar!s +*orality,

– "ociety!s accepted standards for behaviorsthat have serious conse(uences to its well$being

/ Beha*iors that cannot be estab%ished or changed b+decisions o# authoritati*e bodies.

/ Beha*iors that o*erride se%#interest.

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Ethics and Fair Treatment at Work

)cont!d*Ethics an! the law – +n behavior may be legal but unethical

– +n behavior may be illegal but ethical

– +n behavior may be both legal and ethical– +n behavior may be both illegal and

unethical

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Ethics, Fair Treatment, and #ustice

Distributive )ustice– The fairness and ustice of a decision!s

result

-roce!ural )ustice

– The fairness of the process by which thedecision was reached

nteractional +interpersonal, )ustice

– The manner in which managers conducttheir interpersonal dealings with employees

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-erceptions of Fair .nterpersonal Treatment "cale

)ig*re &'(2

$ources% Miche%%e $. 0ono*an et a%., The erceptions o# Their )nterpersona% Treatment 3ca%e4 0e*e%opment and 5a%idation o# aMeasure o# )nterpersona% Treatment in the (orp%ace,6 'ournal of /pplie! -sychology 78, no. :1997;, p. 199?

b+ Miche%%e $. 0ono*an, Frit@ 0rasgo-, and &ibert+ J. Munson at the Ani*ersit+ o# )%%inois at Arbana=hampaign. $%% rights reser*ed.

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What "hapes Ethical /ehavior atWork0

n!ivi!ual factors0rganiational factors

he bosss influence

Ethics policies an! co!eshe organiations culture

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All rights reserved.

14–

10

Employees and Ethical 1ilemmas

4uestions employees shoul! ask when face!with ethical !ilemmas%

– .s the action legal0

– .s it right0

– Who will be a'ected0– 1oes it t the company!s values0

– 2ow will it 3feel4 afterwards0

– 2ow will it look in the newspaper0

– Will it re5ect poorly on the company0

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14–

11

-rincipal 6auses of Ethical 6ompromises

Table &'(&

$ources% O.=. Ferre%% and John Fraedrich, 5usiness Ethics, 8rd ed. :e- Cor4 Houghton Mi##%in, 199?;, p. 27"adapted #rom Rebecca 'oode%%, Ethics in /merican 5usiness% -olicies6 -rograms6 an! -erceptions :199!;, p. !.

ermission pro*ided courtes+ o# the Ethics Resource =enter, 112D

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What .s 7rgani&ational 6ulture0

0rganiation culture– The characteristic values, traditions, and

behaviors a company!s employees share

How is culture is reveale!7

– 6eremonial events– Written rules and spoken commands

– 78ce layout

– 7rgani&ational structure

– 1ress codes

– 6ultural symbols and behaviors

– Figureheads

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The 9anager!s :ole in 6reating6ulture

8larify expectations for values to be followe!.9se signs an! symbols to signal the

importance of values.

-rovi!e physical +the firms rewar!s, supportfor values.

9se stories to illustrate values.

0rganie rites an! ceremonies reinforcingvalues

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2:!s :ole in Fostering Ethics and

Fair Treatment&hy treat employees fairly7

– 3They!re not employees, they!re people4

/ Management guru eter 0rucer

– +voidance of employee litigation

– Enhanced employee commitment

– Enhanced satisfaction with the organi&ation,

with obs, and with leaders– .ncreased organi&ational citi&enship

behaviors

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2: Ethics +ctivities

$taffing an! selection– Fostering the perception of fairness in the

processes of recruitment and hiring of people/ Forma% procedures

/ )nterpersona% treatment

/ ro*iding ep%anation

raining

– 2ow to recogni&e ethical dilemmas

– 2ow to use ethical frameworks )such as codesof conduct* to resolve problems

– 2ow to use 2: functions )such as interviewsand disciplinary practices* in ethical ways

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2: Ethics +ctivities )cont!d*

-erformance appraisal – +ppraisals that make it clear the company

adheres to high ethical standards bymeasuring and rewarding employees who

follow those standardsRewar! an! !isciplinary systems

– The organi&ation swiftly and harshlypunishes unethical conduct

&orkplace aggression an! violence– Taking care that 2: actions do not foster

perceptions of ine(uities that translate intodysfunctional behaviors by employees

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The :ole of Training in Ethics

)ig*re &'(5

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The :ole of Trainingin Ethics )cont!d*

)ig*re &'(5 +cont,d-

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/uilding Two$Way 6ommunications

-erceptions of fair treatment !epen! on%– Engagement

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Employee 1iscipline and -rivacy

5asis for a fair an! )ust !iscipline process– 6lear rules and regulations

/ 0e#ine -orp%ace issues

/ )n#orm emp%o+ees

– + system of progressive penalties

/ The range and se*erit+ o# the pena%t+ is a #unction o# theo##ense and number o# occurrences.

–+n appeals process

/ The right o# the emp%o+ee to grie*e the decision he%ps toensure that super*isors mete out discip%ine #air%+ andeuitab%+.

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1isciplining an Employee

Does the facts support the charge of employee wrong!oing7

&ere the employees !ue process rights protecte!7

&as the employee warne! of !isciplinary conse:uences7

&as a rule violate! an! was it ;reasonably relate!< to the

efficient an! safe operation of the work environment7

&as the matter fairly an! a!e:uately investigate! beforea!ministering !iscipline7

Di! the investigation pro!uce substantial evi!ence of

miscon!uct7

Have rules6 or!ers6 or penalties been applie! evenhan!e!ly7

s the penalty reasonably relate! to the miscon!uct an! to the

employees past work history7

Di! the employee have the right to counsel7

Di! anger6 hearsay6 or personal impression affect the !ecision7

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1isciplinary+ction Form .

)ig*re &'(

$ource% Reprinted -ith permissiono# the pub%isher, HRet.com.=op+right HRet.com, 2DD8.

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Employee

=rievance Form

)ig*re &'($ource% = 3tate Ani*ersit+. Ased -ith permission.

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Formal 1isciplinary +ppeals-rocesses

=e!Exs guarantee! fair treatment multi>step program

– "tep >? 9anagement review

– "tep @? 78cer complaint

– "tep A? EBecutive appeals review

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1iscipline without -unishment

)Conpunitive 1iscipline*1. ssue an oral remin!er.

2. $houl! another inci!ent arise within six weeks6

issue a formal written remin!er6 a copy of which is

place! in the employees personnel file.3. ?ive a pai!6 one>!ay ;!ecision>making leave.!ay pai! suspension from the

persons file.

f the behavior is repeate!6 the next step is

!ismissal.

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Employee -rivacy

Employee privacy violations uphel! by courts%– .ntrusion )locker room and bathroomsurveillance*

– -ublication of private matters

– 1isclosure of medical records

– +ppropriation of an employee!s name or likeness

/ctions triggering privacy violations%

– /ackground checks

–9onitoring o'$duty conduct and lifestyle– 1rug testing

– Workplace searches

– 9onitoring of workplace

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Employee -rivacy )cont!d*

&hat !o employers monitor about employees%– E$mail activity

– .nternet use

– Telephone calls

Employers monitor employees to%– .mprove productivity

– -rotect from computer viruses

– 1etect leaks of condential information

– =uard against liability for illegal acts andharassment suits caused by employeemisuse

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:estrictions on Workplace9onitoring

he Electronic 8ommunications -rivacy /ct+E8-/,

– The 3business purpose eBception4 permitsemployers to monitor communications if

they can show a legitimate business reasonfor doing so

– The 3consent eBception4 allows employersto monitor communications if they have

their employees! consent to do so8ommon>law provi!es protections against

invasion of privacy.

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"ample Telephone 9onitoring+cknowledgement "tatement

)ig*re &'(/$ource% Reprinted -ith permission #rom 5ulletin to *anagement :B$ o%ic+ and ractice 3eries;!7, no. 1!, art )), :$pri% 8, 199?;, p. ?. =op+right 199? b+ The Bureau o# ationa% $##airs, )nc.

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9anaging 1ismissals

Dismissal – .nvoluntary termination of an employee!semployment with the rm

erminate>at>will rule

– Without a contract, the employee can resignfor any reason, at will, and the employercan similarly dismiss the employee for anyreason )or no reason*, at will

– Dimitations on 3terminate$at$will4/ 5io%ation o# pub%ic

/ )mp%ied contract

/ 'ood #aith

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9anaging 1ismissals )cont!d*

#imitations on terminate>at>will – -ublic policy eBception/ 0ischarge is -rong#u% -hen it -as against an ep%icit,

-e%%estab%ished pub%ic po%ic+4 emp%o+ee #ired or re#usingto brea the %a-.

– .mplied contract eBception/ Emp%o+er statements about #uture emp%o+ment create a

contractua% ob%igation #or the emp%o+er to continue toemp%o+ the emp%o+ee.

– 6ovenant of good faith eBception/ 3uggests that emp%o+ers shou%d not #ire emp%o+ees

-ithout good cause.

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=rounds for 1ismissal

9nsatisfactory performance

– -ersistent failure to perform assigned duties or tomeet prescribed standards on the ob

*iscon!uct in the workplace

– 1eliberate and willful violation of the employer!s

rules? stealing, rowdy behavior, and insubordination

#ack of :ualifications for the )ob

– +n employee!s inability to do the assigned workalthough he or she is diligent

8hange! re:uirements or elimination of the )ob.– +n employee!s inability to do the work assigned,

after the nature of the ob has changed

– Elimination of the employee!s ob

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.nsubordination

1. 0irect disregard o# the bossGs authorit+.

2. F%atout disobedience o#, or re#usa% to obe+, the bossGs ordersparticu%ar%+ in #ront o# others.

8. 0e%iberate de#iance o# c%ear%+ stated compan+ po%icies, ru%es,regu%ations, and procedures.

!. ub%ic criticism o# the boss. =ontradicting or arguing -ith him or her isa%so negati*e and inappropriate.

. B%atant disregard o# reasonab%e instructions.

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9anaging 1ismissals )cont!d*

=oster a perception of fairness in the!ismissal situation by%

– .nstituting a formal multi$step procedure)including warning*

– 2aving a supervising manager give fulleBplanations of why and how terminationdecisions were made

– Establishing a neutral appeal process also

fosters fairness

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+voiding Wrongful 1ischarge "uits

5ases for wrongful !ischarge suits%– 1ischarge does not comply with the law

– 1ischarge does not comply with thecontractual arrangement stated or impliedby the rm via its employment applicationforms, employee manuals, or other promises

/voi!ing wrongful !ischarge suits

– "et up employment policies and dispute

resolution procedures that make employeesfeel treated fairly

– 1o the preparatory work that helps to avoidsuch suits

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Typical "everance -ay

/ oneempt emp%o+eeone -ee o# pa+ #or each +ear -ith a

minimum o# #our -ees and maimum o# t-o months.

/ Eempt emp%o+ee to 9D,DDDt-o -ees #or each +ear -ith aminimum o# t-o months and a maimum o# si months.

/ Eempt emp%o+ee o*er 9D,DDD to director or 5 %e*e%t-o to

three -ees #or each +ear -ith a minimum o# three months andmaimum o# nine months.

/ 0irector or 5 to compan+ o##icerthree -ees #or each +ear-ith a minimum o# #our months and maimum o# a +ear.

/ O##icerusua%%+ co*ered b+ an emp%o+ment contract or =hangeo# =ontro% pro*isions and can be a%% the -a+ #rom one +ear o# pa+to three or #our +ears, -ith other pers that ma+ be continued.

)ig*re &'($ource% ---.shrm.org, do-n%oaded March

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"teps in +voiding Wrongful 1ischarge "uits

Ha*e app%icants sign the emp%o+ment app%ication and mae sure it

contains a c%ear%+ -orded statement that emp%o+ment is #or no #iedterm and that the emp%o+er can terminate at an+ time.

Re*ie- +our emp%o+ee manua% to %oo #or and de%ete statements thatcou%d preIudice +our de#ense in a -rong#u% discharge case.

Ha*e c%ear -ritten ru%es %isting in#ractions that ma+ reuire discip%ine

and discharge, and then mae sure to #o%%o- the ru%es. )# a ru%e is broen, get the -orerGs side o# the stor+ in #ront o#

-itnesses, and pre#erab%+ get it signed. Then mae sure to chec outthe stor+, getting both sides o# the issue.

Be sure to appraise emp%o+ees at %east annua%%+. )# an emp%o+ee sho-se*idence o# incompetence, gi*e that person a -arning and pro*ide an

opportunit+ to impro*e. $%% e*a%uations shou%d be in -riting and signedb+ the emp%o+ee.

Keep care#u% con#identia% records o# a%% actions such as emp%o+eeappraisa%s, -arnings or notices, memos out%ining ho- impro*ementshou%d be accomp%ished, and so on.

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"teps in +voiding Wrongful 1ischarge "uits)cont!d* $ #ina% 1Dstep chec%ist -ou%d inc%ude4

> .s employee covered by any type of written agreement,including a collective bargaining agreement0

@ 2ave any representations been made to form a contract0

A .s a defamation claim likely0

.s there a possible discrimination allegation0

.s there any workers! compensation involvement0

G 2ave reasonable rules and regulations been communicatedand enforced0

H 2as employee been given an opportunity to eBplain any ruleviolations or to correct poor performance0

I 2ave all monies been paid within @ hours after separation0J 2as employee been advised of his or her rights under

67/:+0

>K 2as employee been advised of what the employer will tell aprospective employer in response to a reference in(uiry0

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T#- .ncEmployee2andbook

+cknowledgment Form

)ig*re &'(&0

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-ersonal "upervisory Diability

/voi!ing personal supervisory liability%

– /e familiar with federal, state, and local statutesand know how to uphold their re(uirements

– Follow company policies and procedures

– /e consistent application of the rule orregulation is important

– 1on!t administer discipline in a manner thatadds to the emotional hardship on theemployee

– 1o not act in anger

– tili&e the 2: department for advice regardinghow to handle di8cult disciplinary matters

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The Termination .nterview

-lan the interview carefully. Mae sure the emp%o+ee eeps the appointment time.

e*er in#orm an emp%o+ee o*er the phone.

$%%o- 1D minutes as su##icient time #or the inter*ie-.

Ase a neutra% site, ne*er +our o-n o##ice. Ha*e emp%o+ee agreements, the human resource #i%e, and a

re%ease announcement :interna% and eterna%; prepared inad*ance.

Be a*ai%ab%e at a time a#ter the inter*ie- in case uestions orprob%ems arise.

Ha*e phone numbers read+ #or medica% or securit+emergencies.

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The Termination .nterview )cont!d*

?et to the point.

– 1o not beat around the bush by talking aboutthe weather or making other small talk

– +s soon as the employee enters, give theperson a moment to get comfortable and theninform him or her of your decision

Describe the situation.

– /rie5y eBplain why the person is being let go

– :emember to describe the situation ratherthan attack the employee personally

– Emphasi&e that the decision is nal andirrevocable

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#isten.

– 6ontinue the interview until the personappears to be talking freely and reasonablycalmly about the reasons for his or hertermination and the support package

)including severance pay*

Review all elements of the severance package.

– 1escribe severance payments, benets,access to o8ce support people, and the way

references will be handled 2owever, under noconditions should any promises or benetsbeyond those already in the support packagebe implied

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!entify the next step.– The terminated employee may bedisoriented and unsure what to do neBt

– EBplain where the employee should go neBt,

upon leaving the interview

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Termination +ssistance

0utplacement 8ounseling – + systematic process by which a terminated

employee is trained and counseled in thetechni(ues of conducting a self$appraisal

and securing a new ob appropriate to his orher needs and talents

/ Outp%acement does not imp%+ that the emp%o+er taesresponsibi%it+ #or p%acing the person in a ne- Iob.

/ Outp%acement counse%ing is part o# the terminatedemp%o+eeGs support or se*erance pacage and is o#tendone b+ specia%i@ed outside #irms.

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Termination +ssistance )cont!d*

0utplacement firms– 6an help the employer devise its dismissal

plan regarding?

/ Ho- to brea the ne-s to dismissed emp%o+ees.

/ 0ea% -ith dismissed emp%o+eesG emotiona% reactions.

/ )nstitute the appropriate se*erance pa+ and eua%opportunit+ emp%o+ment p%ans.

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.nterviewing 1eparting Employees

Exit nterview

– .ts aim is to elicit information about the obor related matters that might give theemployer a better insight into what is right

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EBit .nterview %uestions

Ho- -ere +ou recruitedL

(h+ did +ou Ioin the compan+L

(as the Iob presented correct%+ and honest%+L

(ere +our epectations metL

(hat -as the -orp%ace en*ironment %ieL

(hat -as +our super*isorGs management st+%e %ieL

(hat did +ou %ie most%east about the compan+L

(ere there an+ specia% prob%em areasL

(h+ did +ou decide to %ea*e, and ho- -as thedeparture hand%edL

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The -lant 6losing Daw

&orker /!)ustment an! Retraining (otification

/ct +1@A@,

– :e(uires employers of >KK or moreemployees to give GK days! notice before

closing a facility or starting a layo' of Kpeople or more

– The law does not prevent the employer fromclosing down, nor does it re(uire saving obs

– The law is intended to give employees timeto seek other work or retraining by givingthem advance notice of the shutdown

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The -lant 6losing Daw )cont!d*

&orker /!)ustment an! Retraining

(otification /ct +1@A@,

– Employment losses covered by the law?

/ Terminations other than discharges #or cause, *o%untar+

departures, or retirement/ &a+o##s eceeding si months

/ Reductions o# more than DN in emp%o+eeGs -or hoursduring each month o# an+ simonth period.

– -enalty for failing to give notice/ One da+Gs pa+ and bene#its to each emp%o+ee #or each

da+Gs notice that shou%d ha*e been gi*en, up to

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Dayo's

#ayoff are not terminations.

emporary layoffs occur when%

– There is no work available for employees

– 9anagement eBpects the no$work situationto be temporary and probably short term

– 9anagement intends to recall theemployees when work is again available

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/umpingLDayo' -rocedures

3eniorit+ is usua%%+ the u%timate determinant o# -ho-i%% -or.

3eniorit+ can gi*e -a+ to merit or abi%it+, but usua%%+on%+ -hen no senior emp%o+ee is ua%i#ied #or aparticu%ar Iob.

3eniorit+ is usua%%+ based on the date the emp%o+ee Ioined the organi@ation, not the date he or she too aparticu%ar Iob.

=ompan+-ide seniorit+ a%%o-s an emp%o+ee in one Iob to bump or disp%ace an emp%o+ee in another Iob,pro*ided the more senior person can do the Iob-ithout #urther training.

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+lternatives to Dayo's

5o%untari%+ reducing emp%o+eesG pa+ to eepe*er+one -oring.

=oncentrating emp%o+eesG *acations during s%o-periods.

Taing *o%untar+ time o## to reduce the emp%o+erGspa+ro%%.

Taing a rings o# de#ense approach6 b+ hiringtemporar+ -orers that can be %et go ear%+.

O##ering bu+out pacages to #ind enough *o%unteersto a*oid dismissing peop%e.

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+dusting to 1ownsi&ings and9ergers?ui!eline for implementing a re!uction in

force%

– .dentify obectives and constraints

– Form a downsi&ing team

– +ddress legal issues

– -lan post$reduction actions

– +ddress security concerns

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14–

56

+dusting to 1ownsi&ings and9ergers )cont!d*?ui!elines for treatment of !eparting

employees !uring a merger%

– +void the appearance of power anddomination

– +void win–lose behavior

– :emain businesslike and professional

– 9aintain a positive feeling about the ac(uired

company– :emember that how the organi&ation treats

the ac(uired group will a'ect those whoremain

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14–

57

Employee 9oraleand /ehavior

.mproves When #ustice -revails

$ource% Ton+ 3imons and uinetta Roberson, P (h+ Managers3hou%d =are about Fairness. The E##ects o# $ggregate Justiceerceptions on Organi@ationa% outcomes,6 'ournal of /pplie!-sychology 77, no. 8 :2DD8;, p. !82.

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14–

58

)ig*re &'(&2

2:"corecard

for 2otel-aris

.nternational6orporationM

(ote% B+/n abbreviate! example showing selecte!

HR practices an! outcomes aime! at implementing

the competitive strategy6 ;o use superior guest

services to !ifferentiate the Hotel -aris properties

an! thus increase the length of stays an! the return

rate of guests an! thus boost revenues an!

profitability

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© 2005 Prentice Hall Inc. 14–

Ney Terms

ethics

distrib*tive 1*stice

$roced*ral 1*stice

interactional +inter$ersonal-

1*stice

organiational c*lt*re

non$*nitive disci$line

3isci$line witho*t $*nish"ent

#lectronic Co""*nications

Privacy Act +#CPA-

dis"issal

*nsatisactory $eror"ance

"iscond*ct

ins*bordination

wrong*l discharge

ter"ination interview

o*t$lace"ent co*nseling

e4it interviews

b*"$inglayo $roced*res

downsiing

hrm10ech14-1233274941515539-1

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