1 Spring 2008 Employee Relations Issues Policies, procedures, rules Employee discipline Grievances Employee rights

2 Spring 2008 Policies, Procedures and Rules Policies:  A general guideline  For example: “XYZ, Inc. does not tolerate sexual harassment” Procedures  A customary method  For example: the steps for reporting sexual harassment Rules  A specific guideline (“programmed decision”)  For example: sexually harassing a subordinate is cause for termination

3 Spring 2008 About Rules, Policies, and Procedures Why?  To ensure consistent treatment (i.e., fairness, procedural justice)  To reduce time demands (programmed decisions) How communicated  Employee handbooks  Policy and procedure manuals

4 Spring 2008 Effective PPR Internally consistent Only those that are necessary Applicable Understandable Reasonable Distributed and communicated Enforced

5 Spring 2008 Employee Discipline Establishing discipline Progressive discipline Why managers don’t discipline employees Why managers punish too soon

6 Spring 2008 Establishing Discipline Establish Rules Change Inappropriate Behavior Communicate Rules Assess Behavior

7 Spring 2008 Progressive Discipline What it is?  Gradual movement from less to more severe penalties Why?  Fair treatment for employees (chance to improve)  Preserve company’s investment in employees  Maintain employee morale  Ethical considerations  Professional approach to discipline  Legal considerations

8 Spring 2008 Steps in Progressive Discipline General steps  Verbal warning  Verbal caution (recorded)  Formal written reprimand  Suspension (paid or unpaid)  Demotion or termination May start at a higher level for more severe offences (for example, immediate termination for drug use)

9 Spring 2008 Why Managers Don’t Discipline Employees 1. Lack of training 2. Lack of support from above 3. Fear of acting alone 4. Guilt 5. Loss of friendships 6. Loss of time 7. Fear of losing one’s temper 8. Rationalization 9. Lack of appropriate policies and rules 10. Fear of lawsuits

10 Spring 2008 Why Managers Punish Too Soon 1. Lack of training 2. Not aware of alternatives 3. Fast, quick solution to problems 4. Personal gratification 5. Frustration 6. Belief that punishment is the best way to change employee behavior

11 Spring 2008 Employment at Will Common law doctrine:  Employers may hire, fire, demote and promote whomever they choose, unless a law exists to the contrary  Depends on state courts’ interpretations General exceptions to EAW:  Public policy Violation of law Filing workers’ comp claim Refusal to commit illegal acts)  Implied employment contract (the employee handbook)  Good faith and fair dealing

12 Spring 2008 Just Cause Reason for termination stems from a job-related, work performance problem Employee knew that the problem could result in termination If necessary, a fair and impartial investigation has been conducted (and documented) Substantial evidence supports firing employee Firing is not an unusually harsh action Problems are handled consistently

13 Spring 2008 Grievances Procedure for dealing with employee dissatisfaction with management action Found in union and many non-unionized organizations (FedEx, for example) Involves appeals through various levels of management, sometimes hearing by management / employee panel

14 Spring 2008 Employee Rights Access to personnel records Substance abuse / drug testing Medical records and genetic testing Off-the-job activities Polygraphs and honesty testing Miscellaneous  and employee monitoring  Whistle blowing  Right to be aware of hazards  Plant and facility closings

15 Spring 2008 Access to Personnel Records Unauthorized individuals should not have access  Individual records are confidential information  Employer has responsibility to take reasonable precautions to ensure this However, the employee has right to see his / her records Employee also has the right to:  Respond to unfavorable information and correct erroneous information  Be notified (or possibly consent) if information is released to a third party  Know how information is used internally

16 Spring 2008 Substance Abuse and Drug Testing Occurs in at least 85% of U.S. firms Why?  Absenteeism  Turnover  Accidents and workers’ compensation claims  Health care costs  Public safety

17 Spring 2008 Who Gets Tested? New hires (after conditional offer of employment) Probable cause (such as accidents) Employees at random  In certain industries, such as transportation  As a condition of being given a second chance

18 Spring 2008 Medical Records and Genetic Testing Employee medical records:  Must be kept separate from other personnel records  Medical conditions not grounds for dismissal if employee can perform the job Genetic testing:  Are employee, spouse or dependents at risk for developing an expensive-to-treat medical condition?  But…a certainty or just a predisposition?  Reluctance to hire and ADA

19 Spring 2008 Off-the-Job Activities Dating Smoking Language issues

20 Spring 2008 Dating at Work Possibility of conflict of interest if employee is dating a competitor’s employee Possible perceptions (or reality !) of sexual harassment Employer’s moral standards (WalMart case) Nepotism  More and more, spouses and relatives are allowed to work for same employer  Normally,not allowed to work in same unit, one can’t supervise the other

21 Spring 2008 Smoking The employer can prohibit / restrict at work Difficult to forbid off-the-job (how to enforce?) No federal protection, but smokers may be protected under state law (including Tennessee)  Some employers can ban smoking (primarily around children)

22 Spring 2008 Language Issues Can employees speak a language other than English at work?  Yes, on breaks  No, not at work

23 Spring 2008 Polygraphs and Honesty Testing Polygraphs  Now illegal for pre-employment screening in most instances  Can be used for security agencies, governments, manufacturers of controlled substances  Can be used (with employee’s consent) for internal investigations of theft or losses Honesty testing  A substitute for the polygraph?  Test validity?????

24 Spring 2008 Miscellaneous Issues and other employee monitoring  Employers are free to read and monitor productivity and other activities  Internet screens  Do need to notify employees that they are being monitored Whistle blowing Right to be aware of hazards (OSHA) Notification of plant and facility closings (WARN)