OH 5-1 Agenda Review articles from Chapter 4 Review Your Learning Questions, page 88 Chapter 5 – Managing Terminations

OH 5-2 Managing Terminations Hospitality and Restaurant Management 5 OH 5-2

OH 5-3 Chapter Learning Objectives State the difference between voluntary and involuntary termination. Defend involuntary terminations. Explain guidelines that apply to unemployment compensation laws.

OH 5-4 Voluntary Termination Occurs when an employee decides to leave an organization Managers should conduct an exit interview.

OH 5-5 Exit Interviews Meeting between the employer and employee when the employee leaves the company

OH 5-6 Reasons to Conduct Exit Interview Determine why the employee is leaving Discover employee grievances Retain the employee’s goodwill Discover any misunderstandings about the supervisor Assess if the employment relationship can continue

OH 5-7 Uses of Exit Interview Data Reduce turnover Improve work experiences Identify employee-relation or legal concerns Assist with developmental needs Improve management practices

OH 5-8 Exit Interview Methods and Questions Methods Unstructured Structured Types of questions Open-ended Closed-ended Multiple-choice Written

OH 5-9 Exit Interviews Exit interviews can be very helpful.

OH 5-10 How Would You Answer the Following Questions? 1. Exit interviews ( can/cannot ) identify unknown problems. 2. _______ exit interviews allows spontaneous responses to questions. 3. When should the exit interview be held? 4. Exit interview information should remain _______.

OH 5-11 When an Employee Leaves Voluntarily Identify the candidate for rehire. Retrieve company property.

OH 5-12 Involuntary Termination Management determines that an employee must leave. Prior to termination, managers should try to help the employee become a productive team member.

OH 5-13 Reasons for Involuntary Termination Lack of work Lack of funding Unsatisfactory performance Violation of company policy

OH 5-14 Procedures for Involuntary Terminations Step 1 – Evaluate performance against job descriptions and standards. Step 2 – Implement a progressive disciplinary action process to address poor performance.

OH 5-15 Progressive Discipline Process Objectives To avoid or minimize misunderstandings To ensure that the employee has evidence of unacceptable performance and guidelines for improvement To reduce the number of involuntary terminations To assure that documentation is available

OH 5-16 Progressive Discipline Discussions Identify the problem and apparent causes. Indicate the employee’s role in solving problem. Suggest specific actions for the employee and manager. Develop a timetable. Indicate actions to be taken if performance does not improve.

OH 5-17 Procedures for Involuntary Termination continued Step 3 – Issue verbal or written warnings. Discipline may range from a warning to immediate dismissal. Discussions can clarify misunderstandings. Managers may provide a written report that is reviewed with the employee. If the employee must be terminated immediately, documentation is needed.

OH 5-18 Procedures for Involuntary Termination continued Step 4 – Develop time frame for performance improvement. Time frames must be reasonable so the employee can improve. Time frames should not be long enough to cause problems for the operation. OH 5-18

OH 5-19 Procedures for Involuntary Termination continued Step 5 – Training supervisors and coaching employees All workplace rules must be clearly written, must comply with legal standards, and must be consistently implemented. Managers must know how to coach employees to help assure that the employee’s performance will meet standards.

OH 5-20 Punishable and Terminal Acts Employee actions that typically cause immediate termination Examples include Disruptive behavior Destructive behavior Insubordination Theft of property/funds Harassment Alcohol use Illegal drug use

OH 5-21 Final Steps in Conducting Involuntary Terminations Conduct a meeting to formally terminate the person. Supervise the person as he/she removes personal items. Assure that the employee turns over company property. Escort the person from the building.

OH 5-22 Involuntary Termination— Notification Guidelines Monitor staffing needs. Examine skills and service levels. Attempt to locate other employment. Make termination decision. Communicate decision. Identify length of notice to be provided. Set expectations for employees.

OH 5-23 Unemployment Compensation Laws This program is administered at the state level following federal guidelines. To be eligible, potential recipients must be unemployed through no fault of their own. In most states, the tax rate is based on the number of claims made against a business. Benefits paid to recipients are based on a % of an individuals earnings over a 52 week period

OH 5-24 Let’s Practice The Case of the Drinking Cook Page 103 in book: read case and discuss questions as a group

OH 5-25 How Would You Answer the Following Questions? 1. The only reason that employees are terminated involuntarily is because of poor performance. ( True/False ) 2. Discipline can range from a warning to immediate _______. 3. Behaviors that justify discharge without progressive discipline are called _______. 4. As unemployment compensation claims against an employer increase the tax rate ( increases/decreases ).

OH 5-26 Key Term Review Exit interview Federal-State Unemployment Compensation Laws Involuntary termination Progressive disciplinary action Structured exit interview Terminable acts Unstructured exit interview Voluntary termination

OH 5-27 Chapter Learning Objectives— What Did You Learn? State the difference between voluntary and involuntary termination. Defend involuntary terminations. Explain guidelines that apply to unemployment compensation laws.

OH 5-28 Next Week Read Chapter 6 – Motivation and Employee Development Due : Article Review for Chapter 5 – Managing Terminations