1. CHAPTER 7
Employee Relations

2. Chapter Objectives To discuss employees as stakeholders
To examine the economic, legal, ethical, and philanthropic responsibilities related to employees
To describe an employer of choice and the employer of choice’s relationship to social responsibility

3. Economic Responsibilities to Employees
Employee-employer contract
Psychological contract

4. Workforce Reduction Process of eliminating employment positions
Can involve reducing the number of employees, simplifying products and processes, and decreasing quality and service
Makes the private relationship between employee and employer a public issue that creates concern, criticism, and economic effects on multiple stakeholders

5. How Individuals Can Mitigate the Effects of Downsizing
Employees should understand how their skills and competencies affect business performance.
Employees should strive for cost-cutting and conservation strategies regardless of the employer’s current financial condition.
Today’s work environment requires that most employees fulfill diverse and varying roles.

6. Legal Responsibilities to Employees
Employment at will
Wages and benefits
Labor unions
Health and safety
Equal opportunity employment
Sexual harassment

7. Whistle-Blowing
A whistle-blower is one who reports individual or corporate wrong-doing to either internal or external sources.

8. Ethical Responsibilities to Employees
Training and development
Diversity
Allow for work/life balance

9. Philanthropic Activities
Corporate giving affects employee attitudes toward the organization.
Employees benefit from participating in volunteerism programs and other philanthropic projects.

10. Strategic Considerations
Strong employee initiatives lead to a company being viewed as the “employer of choice.”