1. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 1

2. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 2 Managing Employee Discipline chapter 16

3. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 3 Categories of Difficult Employees 1. Those whose quality of work is unsatisfactory, owing to lack of abilities, training, or motivation 2. Those whose personal problems off the job begin to affect their productivity on the job 3. Those who violate laws while on the job 4. Those who consistently break company rules and do not respond to supervisory reactions

4. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 4 Possible Causes of Deficient Employee Behavior Problems of intelligence and job knowledge Emotional problems Motivational problems Physical problems Family problems Problems caused by the work group Problems originating in company policies Problems stemming from society and its values Problems from the work context and the work itself

5. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 5 Category 1: Ineffective Employees (1 of 2) There are three general questions a manager might use to analyze the performance problem: 1. What is the discrepancy? 2. Is it important? 3. Is it a deficiency in skills?

6. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 6 Category 1: Ineffective Employees (2 of 2) If there is a deficiency in skills, then it must be corrected If the problem does not have to do with skills, then it must be addressed in terms of: removing obstacles creating a more positive motivational climate bringing about some type of job change

7. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 7 Category 2: Alcoholic and Substance- Abusing Employees (1 of 2) Substance abuse affects 12 percent of the workforce It costs organizations about $150 billion per year in lost productivity and related expenses Substance abuse is one of the leading causes of recent increases in workplace violence

8. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 8 Category 2: Alcoholic and Substance- Abusing Employees (2 of 2) Alcohol and drug testing Omnibus Transportation Employee Testing Act of 1991 Americans with Disabilities Act (ADA) considerations Fourth Amendment considerations regarding unreasonable search and seizure Employee assistance programs (EAPs)

9. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 9 Characteristics of EAPs Employees needing assistance are identified and referred to the program The employee is introduced into the program, and his or her problem is evaluated The employee receives counseling and may be given a referral for treatment Employees receive professional diagnosis and treatment Usually provided by outside agencies

10. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 10 Category 3: Participants in Theft and Other Illegal Acts (1 of 3) Employees engage in illegal acts including: employee theft misuse of company facilities or property disclosure of trade secrets embezzlement sabotage of products use of company telephones and credit cards for personal use

11. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 11 Category 3: Participants in Theft and Other Illegal Acts (2 of 3) Employee theft costs employers over $25 billion annually To deal with employee dishonesty problems, HR managers use: discipline termination rehabilitation

12. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 12 Category 3: Participants in Theft and Other Illegal Acts (3 of 3) HR departments have responsibility for crime prevention security programs pre-employment screening mechanisms Employee Polygraph Protection Act of 1988 Prohibits the use of polygraph tests to gauge the honesty of current and prospective employees in most situations

13. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 13 Category 4: Rule Violators Consistently violate company rules, e.g., sleeping on the job having weapons at work fighting at work coming in late abusing the supervisor Workplace violence is a particularly difficult issue

14. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 14 4. Climate 5. Employee Support 6. Separation 2. Security 3. Policy 1. Selection U.S. Post Office’s Program to Prevent Violence

15. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 15 HR Department Programs to Prevent Workplace Violence Zero-tolerance policies Crisis management teams Pre-selection screening tools Employee assistance programs Reduce legal liability Occupational Safety and Health Act (OSHA) Americans with Disabilities Act (ADA) Negligent hiring or retention

16. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 16 Elements in a Disciplinary System Employees Employer Establish rules and goals Communicate rules and goals Assess behavior Modify undesirable behavior

17. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 17 Examples of Rules For Employees’ Behavior: Rules Directly Related to Productivity (1 of 2) Time Starting and late times Quitting time Maximum break and lunch times Maximum absenteeism Prohibited Behavior No sleeping on the job No leaving workplace without permission No drinking on the job No drug taking on the job Limited non-employer activities during work hours

18. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 18 Examples of Rules For Employees’ Behavior: Rules Directly Related to Productivity (2 of 2) Insubordination Penalties for refusal to obey supervisors Rules against slowdowns and sit-downs Illegal Behavior Theft Falsification Safety No smoking Safety regulations Sanitation requirements No fighting No dangerous weapons

19. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 19 Examples of Rules For Employees’ Behavior: Rules Indirectly Related to Productivity Prevention of moonlighting Prohibition of gambling Prohibition of selling or soliciting at work Regulations for clothing and uniform Rules about fraternization with other employees at work or off the job

20. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 20 Approaches to Discipline Hot Stove Rule Progressive Discipline Positive Discipline

21. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 21 The Hot Stove Rule (1 of 2) 1. Warning system Before any behavior has occurred, a good manager has communicated what the consequences of the undesirable behavior are 2. Immediate burn If discipline is required, it must occur immediately after the undesirable act is observed The person must see the connection between the act and the discipline

22. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 22 The Hot Stove Rule (2 of 2) 3. Consistency There are no favorites – stoves burn everyone alike Any employee who performs the same undesirable act will be disciplined similarly 4. Impersonality Disciplinary action is not pointed toward a person It is meant to eliminate undesirable behaviors

23. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 23 Progressive Discipline Discipline approach in which a sequence of penalties is administered Each one slightly more severe than previous one Goal is to build a discipline program that progresses from less severe to more severe punishment Objective is to create and maintain a productive, responsive workforce

24. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 24 Progressive Discipline: Recommended Steps to Document Progressive Disciplinary Actions 1. Identify the problem and explain how the employee’s behavior detrimentally affected the organization 2. Provide a clear warning and explain the consequences of failing to make the necessary behavioral changes 3. Document progressive disciplinary actions taken to prove the employee’s failure to make behavioral changes 4. Demonstrate that disciplinary actions were consistently applied to others under similar circumstances

25. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 25 Problems with Hot Stove Rules and Progressive Discipline They focus on past behavior There is the possibility that employees who are disciplined in a punitive way: will not build commitment into their jobs will not feel better about the job or the company

26. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 26 Positive Discipline Future-oriented approach Working with employees to solve problems so that problems do not occur again Recognizes that people make mistakes Deemphasizes punitive action by management Employee termination is a consequence

27. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 27 The Disciplinary Interview: A Constructive Approach 1. Root out the causes 2. Analyze the reasons for poor performance 3. Prepare for the disciplinary interview 4. Conduct the interview with care and professionalism 5. Prescribe the disciplinary steps to be taken in specific terms and with a specific timetable 6. Do not expect to win a popularity contest

28. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 28 Employment at Will An employee is hired for an indefinite duration in the absence of a written contract, and either the employer or the employee may end the employment relationship for any reason at any time Exceptions: The existence of an implied contract Covenant of good faith and fair dealing Violation of public policy

29. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 29 Alternative Dispute Resolution (ADR) Use of methods other than formal court litigation to resolve a dispute Used extensively in the labor-management arena Advantages over traditional litigation less time consuming less expensive more confidential

30. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 30 Mediation Arbitration Summary jury trial Minitrial Most Common ADR Methods

31. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 16 - 31 Summary Some of the most difficult human resource management problems involve handling difficult or ineffective employees Discipline is an area in which help is needed in many areas: supervisors, HRM, the work group, arbitrators, top management Each has a crucial role to play if the discipline system is to be effective