1. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Problem Employees: Counseling and Discipline Starting and building a company is like going into battle—and I always prefer to go into battle with a team that is loyal to one another and to the cause. —Srivats Sampath, founder of McAfee.com and CEO of Mercora 12

2. 12-2 Learning Objectives 1.Identify common types of problem behavior among employees. 2.Explain why and when supervisors should counsel employees. 3.Describe counseling techniques. 4.Discuss effective ways of administering discipline. 5.Describe the principles of positive discipline and self- discipline. 6.Explain how supervisors can detect and confront troubled employees. 7.Specify how supervisors can direct troubled employees in getting help and then follow up on the recovery efforts. 8.Discuss the role of the supervisor’s manager and the human resources department in helping the supervisor with problem employees.

3. 12-3 Problems Requiring Special Attention Questions to help uncover the true source of a performance problem: Has the employee performed better in the past? Has the employee received proper training? Does the employee know and understand the objectives he or she is to accomplish? Is the supervisor providing enough feedback and support? Has the supervisor encouraged and rewarded high performance? Are other employees with similar abilities performing well or experiencing similar difficulties?

4. 12-4 Absenteeism and Tardiness A recent survey found that absenteeism cost employers an average of $645 per employee in 2003. The most common reasons given for taking unscheduled time off are personal illness and family issues. To help reduce absenteeism: Initiate paid time off banks Create a positive work environment in which morale is strong

5. 12-5 Why Employees Had Unscheduled Absences

6. 12-6 Insubordination and Substance Abuse Insubordination and uncooperativeness Criticizing Complaining Showing a dislike for a supervisor and the organization Poor work habits Alcohol and drug abuse About 1 out of 10 workers abuse or are dependent on alcohol or drugs. The ADA treats substance abuse arising from an addiction as a disability. Actions taken with regard to the employee should focus on work performance, not the substance abuse itself.

7. 12-7 Workplace Violence and Theft An estimated 2 million incidents of workplace violence occur each year. Domestic violence is a contributing factor to workplace violence. The largest cause of missing goods and money for retailers is employee theft, not shoplifting. “Stealing time” and Internet surfing are also considered theft. Information theft is a serious and growing problem.

8. 12-8 Counseling Benefits of counseling Improved job satisfaction and motivation Appropriate times to counsel When employees need help in determining how to resolve a problem that is affecting their work Counseling techniques Directive versus nondirective counseling The counseling interview Discussion of the problem Consideration of possible solutions Scheduling follow-up meeting

9. 12-9 Directive Versus Nondirective Counseling

10. 12-10 Administering Discipline A supervisor should distinguish between discipline and punishment. Punishment – an unpleasant consequence given in response to undesirable behavior. Discipline – a teaching process where the supervisor explains the significance of consequences of the employee’s behavior, then, if necessary, lets the employee experience those consequences. Administration of discipline may be dictated by company policies or a union contract.

11. 12-11 Employee Rights During the Disciplinary Process Know job expectations and the consequences of not fulfilling those expectations. Receive consistent and predictable management action in response to rule violations. Receive fair discipline based on facts. Be able to question management’s statement of the facts and to present a defense. Receive progressive discipline. Be able to appeal a disciplinary action.

12. 12-12 The Discipline Process 1.Observe and understand the facts behind problem behavior. 2.Begin the progressive discipline process: 1.Warning 2.Suspension 3.Demotion 4.Dismissal

13. 12-13 Guidelines for Effective Discipline Do not wait to act. Focus on learning about and resolving the issue at hand. Keep emotions in check. Make it a private matter. Be consistent in administering discipline. Keep a record of disciplinary actions taken and the basis for the discipline.

14. 12-14 Positive Discipline Effective discipline should end problem behavior as well as prevent problems from occurring. Make sure employees know the rules. Make sure employees understand the consequences. Supervisors should create conditions under which employees are least likely to cause problems. Be aware of and responsive to employees’ needs and ideas. Punish problem behavior but also reward desirable kinds of behavior.

15. 12-15 Self-Discipline Effective positive discipline results in self- discipline, in which employees voluntarily follow the rules and try to meet performance standards. Supervisors can help to encourage self- discipline by communicating not only the rules and performance standards, but also the reasons for those rules and standards. Supervisors should set a good example.

16. 12-16 Detection of the Troubled Employee If disciplinary action or counseling seem ineffective at resolving the problem, a supervisor may have a troubled employee. Look for signs of substance abuse but avoid accusations – instead, focus on job performance.

17. 12-17 Confrontation of the Troubled Employee Document the problem Confront the employee Review the employee’s performance, describing the evidence of a problem Refer the employee for counseling Explain the consequences of not changing

18. 12-18 Aid in and Evaluation of Recovery The ultimate objective should be the employee’s rehabilitation, not dismissal. Many organizations offer an employee assistance program (EAP). Types of EAP counseling: Recovery from substance abuse Financial or career counseling Referrals for child care and elder care AIDS education and counseling Cultural adjustment counseling

19. 12-19 Benefits of an Employee Assistance Program Employees can find treatment for problems affecting their performance Help organizations develop policies, educate employees, and train supervisors Relieve supervisors who feel pressured to help with employee’s personal problems Offers an alternative to firing troubled employees, saving the cost of replacing them Reduction in accidents, absenteeism, and turnover Help maintain a drug-free workplace

20. 12-20 Sources of Support Your manager The human resource department Outside consultant Labor attorney Outside human relations specialist Local Small Business Administration office

21. 12-21 Summary Common employee problems include absenteeism and tardiness, insubordination and uncooperativeness, alcohol and drug abuse, workplace violence, and employee theft. Counseling helps employees solve their problems, which enables them to perform better at work. Supervisors should counsel employees when they need help in determining how to resolve a problem that is affecting their work, otherwise refer the employee to a professional.

22. 12-22 Summary (continued) Supervisor counseling should include: Discussion of the problem Consideration of possible solutions Scheduling follow-up meeting When administering discipline, a supervisor should distinguish between discipline and punishment and take as many steps as necessary to resolve the problem behavior. Positive discipline focuses on preventing problem behavior from ever beginning.

23. 12-23 Summary (continued) In self-discipline, employees voluntarily follow the rules and try to meet performance standards. When a supervisor suspects that an employee is troubled, he or she should document the problem and then meet with the employee. Supervisors should follow their organization’s procedures for helping troubled employees. A supervisor should discuss employee problems with his or her manager and the human resources department.