1. INTERNAL EMPLOYEE RELATIONS

2. Chapter Objectives Discuss the case for and against downsizing
Explain discipline and disciplinary action
Describe internal employee relations
Explain how grievance handling is typically conducted
Describe how termination conditions may differ with regard to non-managerial employees, executives, managers, and professionals

3. Chapter Objectives (Continued)
Explain the concept of employment at will
Discuss layoffs in today’s workforce
Describe transfers, promotions, resignations, and retirements as factors involved in internal employee relations
Discuss exit interviews and its purpose

4. Downsizing What does it mean? Why do organizations downsize?
What are possible outcomes?

5. Downsizing Outcomes Creates low morale
Can create a plateau environment
Employees start seeking better opportunities
Employee trust is reduced
Corporate culture suffers
Remaining employees are required to do more

6. Internal Employees Relations
Human Resource activities
associated with movement
of employees within the
organization

7. Discipline and Disciplinary Action
Discipline - State of employee self-control and orderly conduct
Disciplinary action -Invokes a penalty against an employee who fails to meet established standards

8. The Disciplinary Action Process
Consider internal and external environment
Organizational goals and values
Establish rules/policies
Communicate rules to employees
Observe performance
Compare performance with rules/policies
Take appropriate disciplinary action

9. Suggested Guidelines for Disciplinary Action
Offenses Requiring First, an Oral Warning; Second, a Written Warning; and Third, Termination
Negligence in the performance of duties Unauthorized absence from job Inefficiency in the performance of job
Offenses Requiring a Written Warning; and Then Termination
Sleeping on the job Failure to report to work one of two days in a row without notification Negligent use of property
Offenses Requiring Immediate Termination
Theft Fighting on the job Falsifying time cards Failure to report to work three days in a row without notification

10. Approaches to Disciplinary Action
Hot stove rule
Progressive disciplinary action
Disciplinary action without punishment

11. Hot Stove Rule Burns immediately Provides warning
Gives consistent punishment
Burns impersonally

12. The Progressive Disciplinary Approach
Improper Behavior
Yes
Does this violation warrant disciplinary actions? No
No Disciplinary Action
Yes
Does this violation warrant more than an oral warning? No
Oral Warning
Yes
Does this violation warrant more than a written warning? No
Written Warning
Yes
Does this violation warrant more than a suspension? No
Suspension
Yes
Termination

13. Problems in the Administration of Disciplinary Action
Lack of training
Fear
Guilt
Loss of friendship
Time loss
Loss of temper
Rationalization

14. Grievance and The Procedure
An employee’s dissatisfaction related to his or her employment
Process for employees to communicate a formal complaint

15. Termination Most severe penalty; should be most carefully considered
Termination of non managerial employees
Termination of executives
Termination of middle- and lower-level managers and professionals

16. Demotion as Alternative to Termination
Demotions used as alternative to discharge
Demotion is process of moving worker to lower level of duties and responsibilities, usually involving a reduction in pay

17. Employment at Will
Unwritten contract created when employee agrees to work for employer
No agreement as to how long parties expect the employment to last
Public-policy exception
Under the public-policy exception to employment at will, an
employee is wrongfully discharged when the termination is
against an explicit, well-established public policy of the State.
For example, in most States, an employer cannot terminate an
employee for filing a workers’ compensation claim after being
injured on the job, or for refusing to break the law at the request
of the employer. The majority view among States is that
public policy may be found in either a State constitution,
statute, or administrative rule, but some States have either
restricted or expanded the doctrine beyond this bound.
Implied-contract exception
The second major exception to the employment-at-will doctrine
is applied when an implied contract is formed between an
employer and employee, even though no express, written instrument
regarding the employment relationship exists. Although
employment is typically not governed by a contract,
an employer may make oral or written representations to employees
regarding job security or procedures that will be followed
when adverse employment actions are taken. If so,
these representations may create a contract for employment.
Covenant-of-good-faith exception
Recognized by only 11 States (see map 3), the exception for a
covenant of good faith and fair dealing represents the most
significant departure from the traditional employment-at-will
doctrine.34 Rather than narrowly prohibiting terminations
based on public policy or an implied contract, this exception—
at its broadest—reads a covenant of good faith and fair dealing
into every employment relationship. It has been interpreted
to mean either that employer personnel decisions are subject
to a “just cause” standard or that terminations made in bad
faith or motivated by malice are prohibited.

18. Layoffs in Today’s Environment
Layoff/recall procedures
Outplacement

19. Layoff/Recall Procedures
Carefully constructed procedures should be developed
When unionized, procedures are stated clearly in labor-management agreement
Agreement may have bumping procedure
Recall procedures also stated in agreement – seniority

20. Outplacement
Laid-off employees given assistance finding employment elsewhere
Career Management
Career Coaching
Retooling of ones background

21. Employee Relations Transfers Promotions Resignations – Exit Interview
Retirements