CHAPTER 7 Employee Relations

Chapter Objectives To discuss employees as stakeholders To examine the economic, legal, ethical, and philanthropic responsibilities related to employees To describe an employer of choice and the employer of choice’s relationship to social responsibility

Economic Responsibilities to Employees Employee-employer contract Psychological contract

Workforce Reduction Process of eliminating employment positions Can involve reducing the number of employees, simplifying products and processes, and decreasing quality and service Makes the private relationship between employee and employer a public issue that creates concern, criticism, and economic effects on multiple stakeholders

How Individuals Can Mitigate the Effects of Downsizing Employees should understand how their skills and competencies affect business performance. Employees should strive for cost-cutting and conservation strategies regardless of the employer’s current financial condition. Today’s work environment requires that most employees fulfill diverse and varying roles.

Legal Responsibilities to Employees Employment at will Wages and benefits Labor unions Health and safety Equal opportunity employment Sexual harassment

Whistle-Blowing A whistle-blower is one who reports individual or corporate wrong-doing to either internal or external sources.

Ethical Responsibilities to Employees Training and development Diversity Allow for work/life balance

Philanthropic Activities Corporate giving affects employee attitudes toward the organization. Employees benefit from participating in volunteerism programs and other philanthropic projects.

Strategic Considerations Strong employee initiatives lead to a company being viewed as the “employer of choice.”