PowerPoint Presentation Design by Charlie Cook The University of West Alabama Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton Rouge Community College © 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–2 Learning Objectives After studying this chapter, you should be able to: 1.Discuss the role of ethics in HR decision making 2.Describe the concept of and organizational strategies for rightsizing 3.Describe how to manage termination and retention 4.Describe the elements of voluntary turnover 5.Discuss key HR issues during mergers and acquisitions 1.Discuss the role of ethics in HR decision making 2.Describe the concept of and organizational strategies for rightsizing 3.Describe how to manage termination and retention 4.Describe the elements of voluntary turnover 5.Discuss key HR issues during mergers and acquisitions

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–3 Ethics and HRM EthicsEthics  Are an individual’s beliefs about what is right and wrong, and good and bad.  Are formed by the societal context in which people and organizations function. Ethical Behavior versus Legal BehaviorEthical Behavior versus Legal Behavior

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–4 Rightsizing the Organization The process of monitoring and adjusting the composition of the organization’s workforce to its optimal size.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–5 Temporary Solutions for Increased Demand for Employees Overtime Employee leasing Part-time workers Meeting the Demand for Employees

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–6 Dealing with a Decrease in Demand for Employees Reduce contingent workforce Retain core of permanent workers Utilize strategic layoffs Adjusting for Fewer Employees

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–7 Justice in Organizations Distributive justice Procedural justice Interactional justice Types of Justice

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–8 Critical Dimensions of Procedural Justice

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–9 Legal Issues in Layoffs Protecting Employee Rights  If layoffs result in disparate impact for protected groups, legal actions can become problematic.  Decisions to layoff more senior employees can result in age discrimination suits.  Layoff decisions related to performance must be based on a defensible performance appraisal process. Protecting Employee Rights  If layoffs result in disparate impact for protected groups, legal actions can become problematic.  Decisions to layoff more senior employees can result in age discrimination suits.  Layoff decisions related to performance must be based on a defensible performance appraisal process.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–10 Is Downsizing Effective? Stable EmployersStable Employers  Have changes in employment between plus and minus 5% Employment DownsizersEmployment Downsizers  Have employment declines of more than 5%; plant and equipment declines of less than 5%  Have the lowest levels of return on assets and did poorly on stock price. Asset DownsizersAsset Downsizers  Have employment declines of less than 5% but plant and assets declines were at least 5% greater than declines in unemployment

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–11 Beyond the Book: Should Firms Use Downsizing When Employees Are No Longer Needed? YES  It leads to quicker decision making, more precise accountability, and harder-working employees.  It can significantly reduce a firm’s salary expense when unneeded employees are terminated NO  Employees are needed or they wouldn’t have been hired in the first place.  It is expensive because firms must make severance payments and fund retirement plans.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–12 Progressive Discipline PunishmentPunishment  Is following unacceptable behavior with some type of negative consequences. DisciplineDiscipline  Is a system of rules and procedures for how and when punishment is administered and how severe the punishment.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–13 Typical Disciplinary Problems

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–14 Verbal warning Written warning Suspension Termination Progressive Disciplinary Plans

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–15 Employment-at-Will Doctrine An employer can terminate any employee at any time, for any reason (good or bad), or for no reason at all.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–16 Exceptions to the Doctrine of Employment-at-Will

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–17  Make explicit statements that employment is at-will  Write contracts specifying termination procedures  Document performance or behavior problems that may lead to discharge Beyond the Book: Preventing Employment-at-Will Problems

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–18 Causes of Job Dissatisfaction Job DissatisfactionJob Dissatisfaction  Is the feeling of being unhappy with one’s job.  Is a major cause of voluntary turnover Job EmbeddednessJob Embeddedness  Refers to the fact that people will stay on their jobs, even when they are unhappy and should leave  Community ties or obligations keep the employee on the job

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–19 Beyond the Book: A Traditional Model of Quitting

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–20 A Model of the Turnover Process

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–21 Pay and benefits Supervisors and co-workers Nature of the work Causes of Job Dissatisfaction

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–22 The Effects of Job Dissatisfaction Organizational commitmentOrganizational commitment Organizational citizenship behaviors (OCBs)Organizational citizenship behaviors (OCBs)

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–23 Measuring and Monitoring Job Satisfaction Primarily done through attitude surveys distributed to employeesPrimarily done through attitude surveys distributed to employees Responses are used to track changes in employees’ attitudesResponses are used to track changes in employees’ attitudes

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–24 Retention Strategies Realistic job previews (RJPs)Realistic job previews (RJPs) Stock OptionsStock Options

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.6–25 Managing HR During Mergers and Acquisitions HR manager plays a key role as communicator because:HR manager plays a key role as communicator because:  Employees are concerned about their jobs.  Speculation and rumors begin circulating.  An atmosphere of distrust emerges.