1. 1 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Relation It is a combination of organizational culture, HR practice, and individual perceptions. Everything the HR department does affects employee relations directly or indirectly.

2. 2 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Importance of Employee Relations Implementation of organizational strategies Reduce employment costs Goals and strategies are communicated Employees provide their commitment Have concern and interest in employees Reduced absenteeism and turnover Help employees grow and develop Help employees achieve personal goals Improved morale, loyalty and productivity Improveproductivity Productivity is significantly impacted by ability and attitude

3. 3 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Key Dimensions of Employee Relations Good Employee Relations EmployeeCommunication EmployeeCounselling EmployeeDiscipline EmployeeInvolvement EmployeeRights

4. 4 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Communication Downward communication: is information that begins at some point in the organization and proceeds down the organizational hierarchy to inform or influence other. In-House publications: Job post must be posted on bulletin board or online Information booklet: Employee handbook with information on company regulations and benefit

5. 5 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Prerecorded message: Developing own TV program that is viewed by the employees in company lunchroom or other location. Electronic communication: using email, blackberry for communication Information sharing and open-book management: providing reports about organization’s economic performance followed by meetings. Employees are invited to question management.

6. 6 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Upward communication: consists of information initiated by people who seek to inform or influence those higher up in the organization. Employee Communication Grapevine: off-the-record feedback from employees like grievance issues, job dissatisfaction, difficulties with supervisors

7. 7 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Electronic communication: using email, blackberry for communication In-house complaint procedure: formal method of registering complaint. written complaint >> investigation >> advise of results. Manager-employee meeting: meetings between managers and groups of employees to discuss complaints, suggestions, opinions, and questions.

8. 8 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Suggestion systems: formal method (suggestion form) of generating evaluating and implementing employees ideas. Employee attitude/opinion survey: What do employees think about the organization? Do they have any problems? Do they understand the HR department benefit plan?

9. 9 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Counselling Counselling Functions –Advice: guiding employees –Reassurance: courage to build up confidence –Communication: initiating upward communication –Release of emotional tension: emotional release –Clarified thinking: help think clearly about problem –Reorientation: reorient personal values and recognize own limitations Employee & Family Assistance Programs (EFAP): assists employees with personal problem – marital difficulties, abuse. Discussion of a problem with an employee and help the worker cope with the situation

10. 10 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Discipline Management action to encourage compliance with the organization’s standards Preventive Discipline –Action taken prior to any offence or violation to encourage employees to follow the rules Corrective Discipline –Action taken after any offence or violation. This disciplinary action is typically a penalty

11. 11 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Discipline Due Process –Following proper rules and procedures for disciplinary actions and giving employees the opportunity to respond to allegations Progressive Discipline –The use of stronger and stronger penalties for repeated offences Hot-Stove Rule –Warning, immediate, consistent, & impersonal

12. 12 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Positive Discipline Employee acknowledges that a problem exists Employee acknowledges that he or she must assume responsibility for the behaviour A problem-solving approach is used to resolve the problem

13. 13 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition DismissalDismissal Wrongful Dismissal –Dismissal without just cause or reasonable notice of termination Termination of employee

14. 14 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Just Cause for Dismissal –Dismissal under legal grounds –Incompetent work performance: inability to carry out job duties –Employee misconduct: unfaithful service, theft, fraud, disobedience –Business or economic reason: declining demand, organizational downsizing

15. 15 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Constructive dismissal -A major change in the employment contract that results in an employee resigning -significant change in job function, demotion, demand for an employee’s resignation, forced transfer.

16. 16 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Reasonable Notice –When an employer does not have just cause for dismissal “reasonable notice” or compensation in lieu of notice is required –Considers employee’s age, length of service, salary, occupational status, labour market conditions

17. 17 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition The Wallace “Effect” –Requires good faith and fair dealing in the termination of employees –damages designed to compensate an employee who was subjected to “bad faith (unfair) dismissal” tactics of their employer. –Two aspects of “Wallace” damages: 1) the nature of the employer’s bad faith and 2) the impact of this conduct on the employee’s ability to find alternative employment.

18. 18 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Rights EmployeeRights Privacy (unnecessary involvement into the private lives of employees, employee information security employee information security Fair Treatment (age, race, gender, religion) Business Closing or Restructuring (Layoffs under Federal legislation)

19. 19 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Employee Involvement Employee Involvement Interventions are - Self-Directed Work Teams or Groups –Teams of workers who make decisions without a formal supervisor High Involvement Work Practices –HR practices are related to organizational performance, higher productivity and improved financial performance through focus on employment security, decentralization, high compensation, extensive training, etc. Employee Self-Service –Reducing the amount of administrative work. Productivity applications (online retirement plan, health-benefit management) and strategic applications (online recruitment and skill management)

20. 20 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Job Security & Downsizing No-Layoff Policies –Employees who have job security are more receptive to change and are more likely to be innovative and “go the extra mile” Organizational Downsizing –Reducing employment to improve efficiency, productivity, and competitiveness –Workforce reduction (layoff), work redesign (examine work process, function, product/services), systematic change (change in the culture, attitude, value)

21. 21 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Retaining Top Performers Develop a planned approach to employee retention Become an employer of choice Communicate vision and values clearly, frequently and consistently Reward managers for keeping good people Use exit interviews to obtain information (why people are leaving the organization?)