1 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition. 11 E L E V E N Managing Employee Relations C H A P T E R

2 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Open-door Policy A policy of encouraging employees to come to higher management with any concerns

3 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Importance of Employee Relations Implementation of organizational strategies Reduce employment costs Goals and strategies are communicated Employees provide their commitment Have concern and interest in employees Reduced absenteeism and turnover Help employees grow and develop Help employees achieve personal goals Improved morale, loyalty and productivity Improveproductivity Productivity is significantly impacted by ability and attitude

4 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Relations KeyDimensions EmployeeCommunication EmployeeCounselling EmployeeDiscipline EmployeeInvolvement EmployeeRights

5 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Communication Downward In-House publicationsIn-House publications Information bookletsInformation booklets Employee bulletinsEmployee bulletins Prerecorded messagesPrerecorded messages Electronic communicationElectronic communication Information sharingInformation sharingUpward GrapevineGrapevine Electronic communicationElectronic communication Complaint proceduresComplaint procedures Manager-employee meetingsManager-employee meetings Suggestion systemsSuggestion systems Attitude/opinion surveysAttitude/opinion surveys

6 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Counselling Counselling – Discussion of a problem with an employee, to help the employee cope. The employee may be provided with advice and reassurance as part of the communication process. Employee & Family Assistance Programs –Comprehensive company programs that seek to help employees overcome personal and work-related problems

7 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Discipline Management action to encourage compliance with the organization’s standards Preventive Discipline –Action taken prior to any infraction to encourage employees to follow the rules Corrective Discipline –Action that follows a rule infraction and seeks to discourage further infractions

8 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Discipline Due Process –Established rules and procedures for disciplinary actions are followed and employees have an opportunity to respond to the charges Progressive Discipline –A type of discipline whereby there are stronger penalties for repeated offences e.g. verbal reprimand, written reprimand

9 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Positive Discipline Positive discipline takes a problem-solving approach to resolve the performance or behaviour issue: –Focus on the specific problem, rather than the employee’s attitude or personality –Gain agreement that a performance problem exists and that the employee is responsible –Take a problem-solving approach –Document commitments made –Follow-up

10 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition DismissalDismissal Wrongful Dismissal –Dismissal without just cause or reasonable notice of termination Determining Just Cause –Includes any act by the employee that could have serious negative effects on the organization –Typically includes incompetence or employee misconduct e.g. fraud, dishonesty

11 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Dismissing an Incompetent Employee RequirementstoDismiss Reasonable & objectiveperformancestandards Document failure to meet standards Reasonable time given for improvement Evidence of warnings Show that employee was given time, training etc.

12 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Constructive Dismissal A major change in the employment terms that results in an employee resigning may be considered constructive dismissal –e.g. significant change in job function, demotion, demand for an employee’s resignation, forced transfer

13 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Reasonable Notice –When an employer does not have just cause for dismissal “reasonable notice” or compensation in lieu of notice must be provided Reasonable Notice or Severance Considerations: –Employee’s age, length of service, salary, occupational status, labour market conditions

14 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Rights EmployeeRights Privacy FairTreatment Business Closure or Restructuring

15 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Employee Involvement Self-Directed Work Teams or Groups –Teams of workers without a formal, company-appointed supervisor who make decisions traditionally handled by a supervisor High Involvement Work Practices –Benefits include lower turnover, higher productivity and improved financial performance

16 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Job Security & Downsizing No-Layoff Policies –Employees who have job security are more receptive to change and more likely to be innovative Organizational Downsizing –Organizations continue to downsize –Morale sinks, productivity drops and employees distrust management

17 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Retaining Top Performers Develop a planned approach to employee retention Become an employer of choice Communicate vision and values clearly, frequently and consistently Reward managers for retention Use exit interviews to obtain information

18 Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition. 11 E L E V E N Managing Employee Relations C H A P T E R