1 Quote of the Day  “To stand in silence when they should be protesting makes cowards out of men” Abraham Lincoln “Ignorance is bliss they say but to actually know what they were doing, you can’t stand by and let that happen” Joseph M. Darby (pg. 678)

2 Introduction to Chapter 17  Consider how global competition has reshaped the social contract between organizations and their workers   YOU, inc.  Consider the trend toward more expansive employee rights Right not to be fired without just cause Right to due process and fair treatment Right to freedom of speech in the workplace

3 Discussion question  Explain the employment at will doctrine in your own words.  How is it being eroded?  Do you think it is leading to a healthy or an unhealthy employment environment in the US?

4 The New Social Contract Reasons for Change in the Social Contract Globalization Shareholder Activism Technology and Automation Technology and Automation Deregulation

5 The Changing Social Contract Old Social ContractNew Social Contract Job securityFew tenure arrangements Life careers with one employerFew life careers; changes common Stable positions / job assignmentsTemporary project assignments Loyalty to employerLoyalty to self PaternalismRelationships far less familial Employee sense of entitlementPersonal responsibility for one’s job future Stable, rising incomePay for “value added” Job-related skill trainingEmployees in charge of own education Focus on individual accomplishmentsFocus on team building and projects Figure

6 Employee Rights Outplacement services - Assistance provided to laid-off employees Employee rights provide workers with: 1.Desired outcomes or 2.Protection from unwanted outcomes

7 Sources of Employee Rights Employee Rights  Statutory rights (legal, contracted)  Collective bargaining rights (union)  Enterprise rights (implied, policy)

8 Models of Management Morality Moral Management Employees are a human resource thatmust be treated with dignity andrespect. Amoral Management Employees are treated as the lawrequires. Immoral Management Employees are viewed as factors ofproduction to be used, exploited,and manipulated. Figure 17-2

9 Job-Related Rights The right not to be fired without just cause The right to due process and fair treatment The right to freedom, particularly freedom of expression and freedom of speech The rights to privacy, safety, and health in the workplace

10 Right Not to be Fired Without Cause Public Policy Exceptions Contractual Actions Contractual Actions Breach of Good Faith Actions Employment-at-Will Doctrine Protects employees from being fired for refusal to commit crimes Protects employees who they believe have contracts or implied contracts Employers are expected to hold to a standard of fairness and good faith dealings

11 Management’s Response to Job Claims 1. Employees deserve respectful treatment. 2. Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility. 3. Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration. Objections to Employment-at-Will

12 Terminating an Employee 1. Fire employees in a private space. 2. Be mindful of employees’ logistics. 3. Preserve the employee’s dignity. 4. Choreograph the notification in advance. 5. Use transparent criteria for layoffs.

13 The Right to Due Process Due Process The right of employees to havedecisions that adversely affect themto be reviewed by objective, impartialthird parties.

14 The Requirements of a Due Process System 1.It must be a procedure and must follow rules. 2.It must be visible so that potential violators are aware of it. 3.It must be predictably effective. 4.It must be institutionalized. 5.It must be perceived as equitable. 6.It must be easy to use. 7.It must apply to all employees.

15 Alternate Dispute Resolution Open-Door Policy Hearing Procedure The Ombudsman The Peer Review Panel

16 Freedom of Speech in the Workplace Whistle- Blower An organization member whodiscloses illegal, immoral, orillegitimate practices under thecontrol of their employers, to personsor organizations that may be able toeffect action.

17 Whistle-Blowing Key Elements in the Whistle-Blowing Process 1.The whistle-blower 2.The complaint 3.The party to whom the complaint is made 4.The organization against which the complaint is made 5. XngKA (The “Insider” Russell Crowe, Al Pacino : Tobacco Companies/Sixty Minutes) XngKA

18 Two Views of Employees Responsibility in Whistle-Blowing Situation Corporat e Employer Loyalty Obedience Confidentiality Employe e Traditional (Has certain rights) Public Employe e Corporat e Employer Whistle blowing Responsibility (Has certain rights) Emerging Figure 17-3

19 A Checklist to Follow Before Blowing the Whistle 1. Is there any alternative to blowing the whistle? 2. Does the proposed disclosure advance public interest rather than personal or political gain? 3. Have you thought about the outcomes of blowing the whistle for yourself and your family? 4. Have you identified the sources of support on which you can rely during the process? 5. Do you have enough evidence to support your claim? 6. Have you identified and copied all supporting records before drawing suspicion to your concerns? Figure 17-4

20 Consequences of Whistle-Blowing  Firing  More stringent criticism of work  Less desirable work assignments  Pressure to drop charges against the company  Heavier workloads  Loss of perquisites  Exclusion from meetings previously attended

21 Whistle-Blowing  1978 Civil Service Reform Act  Michigan Whistle-Blowers Protection Act of 1981  Sarbanes-Oxley Whistle-Blower Protections  False Claims Act pg. 681 “qui tan” Examples of Government Protection

22 Whistle-Blowing  Comprehensive coverage for all employees of publicly-traded companies  Comprehensive protection for discrimination or harassment  Any corporate conduct that could threaten shareholder value  Timely responses  The right to a jury trial  Lessened burden of proof on employee  Compensatory damages and judicial fees  Criminal felony penalties for retaliation  Audit committees required to have complaint response procedures Sarbanes-Oxley Whistle-Blower Protections

23 Management’s Responsiveness to Whistle-Blowing 1.Managers must be clear that they invite suggestions. 2.Managers must refute commonly held assumptions and organizational myths that discourage communication. 3.Managers should tailor rewards so that employees share more directly in cost savings or sales increase from ideas they offer.