1. © 2015 Cengage Learning

2. Chapter 17 Employee Stakeholders and Workplace Issues
© 2015 Cengage Learning

3. Learning Outcomes
Identify the major challenges occurring in the workforce today.
Outline the characteristics of the new social contract between employers and employees.
Explain the employee rights movement and its underlying principles.
Describe and discuss the employment-at-will doctrine and its role in the employee rights.
Discuss the right to due process and fair treatment.
Describe the actions companies are taking to make the workplace friendlier.
Elaborate on the freedom-of-speech issue and whistle- blowing.
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4. Chapter Outline The New Social Contract The Employee Rights Movement
The Right Not to Be Fired Without Cause
The Right to Due Process and Fair Treatment
Freedom of Speech in the Workplace
Summary
Key Terms
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5. Employee Stakeholders and Workplace Issues
The social contract between organizations and workers continues to evolve, and is different from contracts of the past.
Three employee rights issues-
Right not to be fired without good cause
Right to due process and fair treatment
Right to freedom of speech in the workplace
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6. The New Social Contract
Today’s worker has held 11.3 jobs on average. All realize their jobs are vulnerable, and they receive a smaller portion of the economic pie.
They are more mobile, less loyal, and more diverse.
They seek:
Competitive pay
Benefits
Opportunities for professional growth
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7. The Changing Social Contract
Old Social Contract
New Social Contract
Job security
Few tenure arrangements
Life careers with one employer
Few life careers; changes common
Stable positions/job assignments
Temporary project assignments
Loyalty to employer
Loyalty to self
Paternalism
Relationships far less familial
Employee sense of entitlement
Personal responsibility for one’s job future
Stable, rising income
Pay for value added
Job-related skill training
Employees in charge of own education
Focus on individual accomplishments
Focus on team building and projects
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8. The Employee Rights Movement
Public sector employees have constitutional protections. We focus on employees in the private sector, not subject to constitutional control because of the concept of private property.
Individuals and private organizations are free to use their property as they desire.
Although labor unions have been successful in improving pay, benefits and working conditions, they have not been as active in pursuing civil liberties.
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9. The Meaning of Employee Rights
We approach the topic from the perspective of the Principle of Rights, justifiable claims that utility cannot override.
We will also cover legal rights.
Sources of employee rights -
Statutory rights
Collective bargaining rights
Enterprise rights
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10. 3 Models of Management Morality
Moral management -
Employees are viewed as a human resource that must be treated with dignity and respect.
Amoral management -
Employees are treated as the law requires.
Immoral management -
Employees are viewed as factors of production to be used, exploited, and manipulated.
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11. The Right Not to Be Fired Without Cause
Good cause norm -
The belief that employees should only be discharged for good reasons.
This belief prevails in the United States today, though it conflicts with reality.
Employment-at-will doctrine -
The reality is that the relationship between employer and employee is voluntary and can be terminated at any time by either party.
The central issue is changing views of the employment at will doctrine.
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12. Legal Challenges to Employment-at-Will
Public policy exceptions-
Protects employees from being fired for refusal to commit crimes or for utilizing legal rights.
Implied contract exception-
Protects employees who they believe have contracts or implied contracts.
Good faith principle-
Employers may lose lawsuits to former employees if they cannot show that employees had opportunities to improve their performance before termination.
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13. Moral and Managerial Objections to Employment-at-Will
Employees deserve respectful treatment.
Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility.
Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration.
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14. Dismissing an Employee With Care
Fire employees in a private space.
Be mindful of employees’ logistics.
Preserve the employee’s dignity.
Choreograph the notification in advance.
Use transparent criteria for layoffs.
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15. What NOT to do When Terminating an Employee
Don’t fire on a Friday.
Don’t say that downsizing is finished.
Don’t terminate an employee via e- mail.
Stick to the topic and avoid platitudes.
Don’t rush through the meeting.
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16. The Right to Due Process and Fair Treatment
The right to receive an impartial review of one’s complaints and to be dealt with fairly.
The right of employees to have decisions that adversely affect them be reviewed by objective and impartial third parties.
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17. The Requirements of a Due Process System
It must be a procedure; it must follow rules; it must not be arbitrary.
It must be visible and well-known so that potential violators and victims are aware of it.
It must be predictably effective.
It must be institutionalized – a relatively permanent fixture in the organization.
It must be perceived as equitable.
It must be easy to use.
It must apply to all employees.
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18. Alternative Dispute Resolution
Open-Door Policy
Hearing Procedure
The Ombudsman
The Peer Review Panel
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19. Concerns with the Open-Door Policy -
The process is closed.
One person is reviewing what happened.
There is a tendency for a manager to support another manager’s decision.
A hearing procedure helps open up the process because employees can elect representation.
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20. The Ombudsman An ombudsman is neutral and promises confidentiality.
An ombudsman can handle employee concerns in a way that keeps the problem from getting out of hand.
The procedure has been used in Sweden since 1809 to curb abuses by government against individuals.
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21. Factors for a Successful Peer Review Panel
Be sure that people involved in the process are respected members of the organization.
Committee members should be elected rather than appointed.
They must receive training in dispute resolution, discrimination, fairness, legalities, and ethics for everyone involved.
Representatives of both employees and management should be involved in decision making.
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22. The Future of ADR
The use of ADR is growing because of time and cost savings over litigation.
But some employers require new hires to sign contracts waiving their right to sue their employer in favor of mandatory arbitration.
Arbitration -
A neutral party resolves a dispute between two or more parties and the resolution is binding.
Mandatory arbitration
The parties must agree to arbitration prior to any dispute occurring, and be bound.
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23. Freedom of Speech in the Workplace
While the U.S. Constitution protects an individual's speech from government interference, this does not apply to an employer, and some forbid conflicting political views.
Whistle-Blower -
An organization member who discloses illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action.
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24. Whistle-Blowing Key Elements in the Process - The whistle-blower
The act or complaint
The party to whom the complaint is made
The organization against which the complaint is made
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25. Two Views of Employee Responsibility in a Whistle-Blowing Situation
Corporate Employer
Loyalty Obedience Confidentiality
Employee
Traditional
(Has certain rights)
Public
Employee
Corporate Employer
Whistle blowing
Responsibility
Emerging
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26. A Checklist to Follow Before Blowing the Whistle
Is there any alternative to blowing the whistle?
Does the proposed disclosure advance public interest rather than personal or political gain?
Have you thought about the outcomes of blowing the whistle for yourself and your family?
Have you identified the sources of support, both inside and outside the organization, on which you can rely during the process?
Do you have enough evidence to support your claim?
Have you identified and copied all supporting records before drawing suspicion to your concerns?
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27. Consequences of Whistle-Blowing
4800 employees reported retaliation -
64% - exclusion from decisions & work activities
62% - cold shoulder from coworkers
62% - verbal abuse from management
56% - almost lost job
55% - not given promotion or raise
51% - verbal abuse from coworkers
46% - cut in hours or pay
44% - relocated or reassigned
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28. Government Protections for Whistle-Blowers
1978 Civil Service Reform Act
Sarbanes-Oxley whistle-blower protections
Michigan Whistle-Blowers Protection Act of 1981
False Claims Act
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29. Management Responsiveness to Whistle-Blowing
Whistle-blowing occurs after normal, less dramatic channels of communication have failed. To encourage open communications -
Managers must be clear that they invite and accept suggestions.
Managers must refute assumptions and organizational myths that discourage communication.
Managers should tailor rewards so that employees share more directly in cost savings or sales increases from ideas they offer.
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30. Key Terms Alternative Dispute Resolution (ADR)
Civil Service Reform Act of 1978
collective bargaining
due process
employee Rights
employment-at-will doctrine
enterprise rights
false Claims Act
good cause norm
good faith principle
hearing procedure
implied contract exception
mandatory arbitration
Michigan Whistle-Blowers Protection Act of 1981
ombudsman
open-door policy
outplacement
peer review panel
private property
public policy exception
social contract
statutory rights
whistle-blower
© 2015 Cengage Learning