1. Respecting Employee Rights and Managing Discipline
Chapter 14
Respecting Employee Rights and Managing Discipline
Employees have rights in the workplace that are based on laws, company employment policies, and traditions. Employers also have rights that support their authority and what they can expect from their employees. This chapter provides an overview of employee rights and discipline and an understanding of how to create a culture of respecting employee rights and managing discipline.
Copyright © 2016 Pearson Education, Inc.

2. Chapter Challenges Understand employee rights
Understand management rights
Become aware of employee rights challenges: a balancing act
After reading Chapter 14, you should understand employee rights, understand management rights, and become aware of employee rights challenges: a balancing act.
Copyright © 2016 Pearson Education, Inc.

3. Chapter Challenges
Learn practices for administering and managing discipline
Develop competence for managing difficult employees
Become aware of preventing the need to discipline with human resource management
After reading Chapter 14, you should be able to also learn practices for administering and managing discipline, develop competence for managing difficult employees, and become aware of preventing the need to discipline with human resource management.
Copyright © 2016 Pearson Education, Inc.

4. The Managerial Perspective
Developing and enforcing policies that inform employees
Making managers aware of employees’ rights and managers’ obligations
Acting as an employee advocate
The rights of both employees and employers should be clearly spelled out in every employment relationship. The HR department can help in several ways: by developing and enforcing policies that inform employees of their rights and responsibilities, by making managers aware of employees’ rights and managers’ obligations to employees, and by acting as an employee advocate, especially in cases where a supervisor misunderstands or disregards discipline policy.
Managers can make a tremendous difference. Managers who respect employees’ rights are more likely to have employees with higher levels of morale and job satisfaction than managers who ignore these rights.
Copyright © 2016 Pearson Education, Inc.

5. Categories of Employee Rights
First, let us discuss the meaning of rights. A right is the ability to engage in conduct that is protected by law or social sanction, free from interference by another party. A statutory right is a right that is protected by specific laws. A key statutory right of employees is protection from discrimination based on race, sex, religion, national origin, age, handicap, or other protected status under Title VII of the Civil Rights Act of Other statutory laws include OSHA and labor relations laws.
Employees have the legal right to form a union, for example. It is illegal for an employer to discourage employees from exercising their right to form a union by withholding pay increases from those who support the union.
The scope of employee rights has broadened over the last 50 years as the federal and state governments have enacted laws giving employees specific rights.
A contractual right is a right based on the law of contracts. A contract is a legally binding promise between two or more competent parties. A breach of contract, in which one of the parties does not perform his or her promised duty to the other party, is subject to legal remedy. An employment contract is a contract that spells out explicitly the terms of the employment relationship for both employee and employer. For example, all union grievance procedures subject to disciplinary actions must undergo due process. Due process is equal and fair application of a policy or law. Wrongful discharge is a termination of an employee for reasons that are either illegal or inappropriate.
Sometimes employers and employees enter into a contract even though no formal contract exists; this is an implied contract.
This slide displays several of the different types or categories of rights that employees have.
The next slide will discuss in detail the other rights that employees and managers need to be aware of.
Copyright © 2016 Pearson Education, Inc.

6. Other Rights Rights to Ethical Treatment Limited Right to Privacy
Psychological Contract
Limited Right to Privacy
Privacy Act of 1974
Employees often expect certain other rights in addition to statutory and contract rights. These include a right to ethical treatment and limited rights to free speech and privacy.
Right to ethical treatment: Employees expect to be treated fairly and ethically in return for providing their employer with a fair and reasonable amount of work. This expectation is called a psychological contract.
Managers and supervisors should:
Take actions that develop trust, such as sharing useful information and making good on commitments.
Act consistently so that employees are not surprised by unexpected management actions or decisions.
Be truthful, demonstrate integrity, ensure employees are treated equitably, adhere to clear standards, and demonstrate respect toward employees.
Limited right to privacy: The right to privacy protects people from unreasonable or unwarranted intrusions into their personal affairs. Personnel files should be kept securely and confidentially within organizations. A file is maintained for each employee, containing the documentation of critical HR-related information, such as performance appraisals, salary history, disciplinary actions, and career milestones. The Privacy Act of 1974 guarantees the privacy of personnel files for employees of the U.S. federal government.
Limited right to free speech: The First Amendment to the U.S. Constitution guarantees all U.S. citizens the right to free speech. As with the right to privacy, managers should interfere as little as possible with employees’ free speech because this right is so deeply ingrained in U.S. culture. When employees reveal management misconduct to outsiders, they are engaging in whistle-blowing.
Limited Right to Free Speech
Whistle-blowing
Copyright © 2016 Pearson Education, Inc.

7. Management Rights What Are Management Rights? Employment-at-Will
Public Policy Expectations
Implied Contract
Good Faith and Fair Dealing
Management rights are rights to run the business and retain any profits that result. In the United States, management rights are supported by property laws, common law, and the values of a capitalistic society. Additionally, the stockholders and owners who control a firm through their property rights delegate the authority to run the business to managers. Management rights are also termed residual rights because they pertain to the remaining rights that are not affected by contracts or laws.
Employment-at-will is a common law rule used by employers to assert their right to end an employment relationship with an employee at any time for any cause. However, for the last 35 years, state courts have been ruling that employment-at-will is limited in certain situations.
Public policy exceptions: The courts have ruled that an employee may not be discharged for engaging in activities that are protected by law.
Implied contracts: Courts have determined that an implied contract may exist when an employer makes an oral offer or written promises of job security.
Lack of good faith and fair dealing: Courts in some jurisdictions expect each party in the employment relationship to treat the other in good faith.
Copyright © 2016 Pearson Education, Inc.

8. Employee Rights Challenge: A Balancing Act
Random drug testing
Electronic monitoring
Whistle-blowing
Moonlighting restrictions
Five workplace issues are challenging to HR professionals and managers. We will be covering each of these in detail. They are as follows:
Random drug testing
Electronic monitoring
Whistle-blowing
Moonlighting restrictions
Office romance restrictions
Office romance restrictions
Copyright © 2016 Pearson Education, Inc.

9. Employee Rights Challenges
Random drug testing
Probable cause
False positives
Security
Alternative testing
Electronic monitoring
Employee theft
Invasion perception
Employee awareness
Random drug testing: The practice of random drug testing pits management’s duty to protect the safety of its employees and customers against an employee’s right to privacy. A random drug test screens employees for the use of drugs randomly, without suspicion or cause. Many employees consider random drug testing an unreasonable and illegal invasion of their privacy. Some unionized organizations, such as the Association of Fire Fighters, will allow testing for probable cause rather than random drug tests.
If an employee has a positive test, such as using prescription drugs or eating poppy seed bagel, an employer might consider that a false positive.
Secure procedures are usually required with drug testing, as these safely secure that the urine specimen is that of the employee. Secure procedures ensure less chance of employees using someone else’s urine in the sampling.
There is also an alternative to drug testing that does not invade the employee’s privacy and is much more reliable for determining an employee’s fitness for work: the performance test.
Electronic monitoring can be used to fight employee theft. Experts estimate that the employee theft costs U.S. businesses over $400 billion a year. There are many ways in which employers are monitoring employees. Some include software tracking, cameras on company grounds, microprocessor chips, hidden microphones, and other sophisticated technologies. However, many employees feel that the perception of invasion is problematic, so companies must address these concerns.
Copyright © 2016 Pearson Education, Inc.

10. Employee Rights Challenges
Whistle-Blowing
Retaliation
Internal procedures
Top-management support
Moonlighting Restrictions
Office Romance Restrictions
Policies
Supervisor/subordinate relationships
Whistle-blowing occurs when an employee discloses an employer’s illegal, immoral, or illegitimate practices to persons or organizations that may be able to take corrective action. Dealing with whistle-blowing requires balancing employees’ right to free speech with the employer’s right to prevent employees from disregarding managers’ authority or disclosing sensitive information to outsiders. A potential whistle-blower should have good documentation of the evidence of wrongdoing before disclosing it to others. The whistle-blower should also be prepared to deal with employer retaliation and have a contingency plan, which may include lining up another job in case the worst happens. Internal procedures might include procedures in which employees are protected and anonymous. The most important part is that there should be top management support for whistle-blowing policies.
Moonlighting restrictions are policies that do not allow for a second job outside the company. Most of the time employees moonlight for extra income; however, at times, the second job can pose a conflict of interest, especially for those in sales.
Office romance restrictions: Because most people spend the majority of their waking time at work, it is natural that the office is an inviting place for romance. Most companies have policies that discourage office romance, but this is the case especially with supervisor and subordinate relationships. Management has to carefully balance the privacy rights of employees with the potential liability of sexual harassment.
Copyright © 2016 Pearson Education, Inc.

11. Effective Whistle-Blowing Policy
This slide displays some guidelines for developing an effective whistle-blowing policy.
Copyright © 2016 Pearson Education, Inc.

12. Disciplining Employees
Progressive Discipline
Verbal warning
Written warning
Suspension
Discharge
Employee discipline is a tool that managers rely on to communicate to employees that they need to change a behavior. Employee discipline is usually performed by supervisors, but in self-managed work teams employee discipline may be a team responsibility. Two different approaches to employee discipline are widely used: (1) progressive discipline and (2) positive discipline.
Progressive discipline is the most commonly used form of discipline and consists of a series of management interventions that gives employees opportunities to correct their behavior before being discharged. The first step is a verbal warning, letting the employee know that the behavior is not acceptable. The second step is a written warning if the behavior has not stopped. The third step is a suspension, if the employee has failed to adhere to the warnings. The last step is a discharge, if the employee continues to fail to change the behavior. Having these steps can help a company show that it has taken fair action steps in correcting employee behavior.
Copyright © 2016 Pearson Education, Inc.

13. Five Steps for Effective Discipline Sessions
Determine if discipline is necessary
Outline clear goals
Ensure two-way communication
Establish a follow-up plan
End on a positive note
This slide presents the five steps for holding effective disciplinary sessions:
Determine if discipline is necessary. It’s helpful to determine if this is a pattern or one-time occurrence.
Outline clear goals so that disciplinary processes are avoided. Make sure employees know what to expect.
Ensure two-way communication, which is important in determining if there is confusion and allows for questions.
Establish a follow-up plan.
End on a positive note. You many want to emphasize the employee’s strengths.
Copyright © 2016 Pearson Education, Inc.

14. Categories of Employee Misconduct
This slide shows some of the most common employee misconduct violations. These include minor violations and more serious violations.
Copyright © 2016 Pearson Education, Inc.

15. Disciplining Employees
Positive discipline
Employee plays an active role
Emphasis on change, not punishment
Management as counselor
Management training
Positive effects on bottom line
Positive discipline is a discipline procedure that encourages employees to monitor their own behaviors and assume responsibility for their actions. What is important to remember is that employees play an active role and that the procedure emphasizes change of behavior and not punishment. Management is viewed as a counselor instead of disciplinarian. Management training is crucial in ensuring that managers correctly apply this type of discipline. Finally, positive discipline can have positive effects on a company’s bottom line.
Copyright © 2016 Pearson Education, Inc.

16. Administering and Managing Discipline
Basic Standards of Discipline
Communication of rules and performance criteria
Documentation of facts
Consistent response to rule violations
Managers must ensure that employees who are disciplined receive due process. Due process means fair and consistent treatment.
Some basic standards of discipline should apply to all rule violations, whether major or minor. All disciplinary actions should include the following procedures at minimum:
Communication of rules and performance criteria
Documentation of facts
Consistent response to rule violations
Copyright © 2016 Pearson Education, Inc.

17. Just Cause Standard of Discipline
Notification
Reasonable Rule
Investigation
Fair Investigation
The just cause standard of discipline has been established for cases when employees are discharged. The U.S. courts require the employer to prove that an employee was discharged for just cause. This slide shows the seven areas that must be reviewed to affirm for just cause to discharge.
1. Notification: Employees must be forewarned of disciplinary consequences.
2. Reasonable rule: The rule should not jeopardize an employee’s safety or integrity in any way.
3. Investigation before the discipline: Find out what happened, as it may not require disciplinary action.
4. Fair investigation: Investigations should be fair and impartial.
5. Proof of guilt: Investigation should result in substantial proof that the infraction happened.
6. Absence of discrimination: There should be no discrimination before, during, or after investigation or discipline.
7. Reasonable penalty: The penalty must be reasonable, consistent, and fair.
Proof of Guilt
Absence of Discrimination
Reasonable Penalty
Copyright © 2016 Pearson Education, Inc.

18. Mistakes to Avoid Administering Discipline: Losing your temper
Avoiding disciplinary action entirely
Playing therapist
Making excuses for an employee
Using a non-progressive approach
This slide lists some of the common pitfalls that can occur when disciplining employees and ways to avoid them.
Losing your temper should be avoided at all costs.
Avoiding disciplinary action entirely will not solve the problem. Behavior that needs changing needs immediate attention.
Playing therapist is not the appropriate or effective approach. This is the time to focus on the behavior and not the person.
Making excuses for an employee is not going to resolve the problem.
Using a non-progressive approach is not recommended. This might occur when the manager has not dealt with the behavior before and has let it rise to an intolerable level. Managers then can sometimes react too harshly. This is not recommended.
Copyright © 2016 Pearson Education, Inc.

19. Managing Difficult Employees
Poor Attendance
Poor Performance
Insubordination
Workplace Bullying
Alcohol-Related Misconduct
Illegal Drug Use and Abuse
Preventing the Need for Discipline with HRM
Poor attendance includes absenteeism and/or tardiness. Poor attendance can have severe and negative consequences in the workplace, including reducing the morale of the atmosphere. Disciplinary action must be taken to correct behavior or adjustments made to the employee’s schedule (e.g., changing schedule if it is not working for employee and it is reasonable to do so). Here are the questions that should be asked:
Is the attendance reasonable?
Has the employee been warned of consequences?
Are there mitigating circumstances?
Poor performance is what every manager must deal with. In most cases performance appraisals can be used to turn around poor performance and help develop an action plan for improvement. Poor performance might also mean that the employee needs remedial training, so it’s important to uncover the reasons for poor performance.
Insubordination is either refusal to obey a direct order from a supervisor or verbal abuse of a supervisor. Insubordination also occurs when an employee is verbally abusive to a supervisor. Two exceptions allow an employee to disobey a direct order: (1) illegal activities and (2) safety conditions.
Workplace bullying is a form of harassment that consists of a persistent pattern of offensive, abusive, intimidating, malicious, or insulting behavior focused at a target employee. Abusive behavior can include swearing at an employee, treating employees in a rude and disrespectful manor, rumors and gossip with intentions to harm, threatening employees, temper tantrums, criticizing an employee for his or her personal life and activities, and treating employees in a condescending and insulting manor.
Alcohol-related misconduct can be a challenge for managers. It could be intoxication on the company premises or it could be a habitual behavior that disrupts the employee’s job performance. Attention must be given to this problem, and when it is proven to be the case, an EAP can be a way in which employees take positive action to avoid termination.
Illegal drug use and abuse refers to use of any illegal or prohibited substances such as marijuana, heroin, cocaine, and drugs such as Valium. Like alcohol abuse, drug abuse must be closely examined and corrective action taken immediately to ensure the safety of the employee and other employees.
Preventing the need for discipline with HRM can be done in several ways. The recruitment and selection process can help an organization avoid a bad hire and misfit between employee and position. We have already discussed the high costs of a bad hire. Another way to manage difficult employees is through training and development. Training for incompetence and obsolete skills can help employees avoid poor performance.
Human resource planning can help to motivate employees and help direct them into positions that are a fit for them. This strategic approach will help organizations avoid poor-performing employees.
Performance appraisals are also key in helping to change and direct employee performance in a more positive manner.
Effective compensation structures will also help avoid the perception of unfair pay and thus poor performance.
Copyright © 2016 Pearson Education, Inc.

20. Summary and Conclusions
Employee Rights
Management Rights
Employee Rights Challenges: A Balancing Act
Disciplining Employees
Administering and Managing Discipline
Managing Difficult Employees
Preventing the Need to Discipline with Human Resource Management
To summarize, managing employee rights and discipline brings with it many challenges. However, with a strong process in place and proactive HRM policies, managers can help limit the number of discipline actions that need to be taken. In this chapter, we have covered:
Employee Rights
Management Rights
Employee Rights Challenges: A Balancing Act
Disciplining Employees
Administering and Managing Discipline
Managing Difficult Employees
Preventing the Need to Discipline with Human Resource Management
Copyright © 2016 Pearson Education, Inc.

21. Pearson Education, Inc. Copyright
Copyright © 2016 Pearson Education, Inc.