Chapter 11 Managing Employee Relations

Chapter 11 Managing Employee Relations

managing employee relations

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Chapter Objectives

After studying this chapter, you should be able to:

Discuss the importance of downward and upward communication in organizational settings.

Define employee counselling and the major types of counselling.

Describe how progressive discipline and wrongful dismissal work.

Explain the different techniques available to improve quality of work life.

Outline the major issues relating to downsizing the workforce and their implications for strategic human resource management.

PowerPoint® Slides

Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.)

Lecture Outline (with PowerPoint® slides)

Managing Employee Relations
Slide 1
Open-door Policy
Slide 2
Indirect Compensation Objectives
Slide 3 /

employee relations

The state of employee relations in an organization is determined by how human resource planning, placement, training and development, evaluation and compensation is handled

• Open-door policy encourages employees to come to higher management with any concerns

strategic importance of employee relations practices

Employee relations is a complex blend of organizational culture, human resource practices, and individual perceptions. Virtually everything the human resource department does affects employee relations

• Improve productivity

-- Employee productivity is significantly affected by ability and attitude and effective employee relations practices improve both

·  Implementation of organizational strategies

-- Employees need to understand their roles and be rewarded for exhibiting desired behaviours

-- Effective employee relations practices ensure that organizational goals and strategies are properly communicated to employees and receive their commitment

·  Reduce employment costs

-- When the organization’s culture includes concern for and interest in employees, the result is reduced turnover and absenteeism which results in significant cost savings

·  Help employees grow and develop

-- An important goal of human resource departments is to help employees achieve their personal goals

-- Interest in employees’ work and career goals results in benefits of improved morale, loyalty, productivity, and availability of skilled people

Employee Relations
Slide 4
Employee Communication
Slide 5
Employee Counselling
Slide 6
Employee Discipline
Slide 7 /

FIVE KEY DIMENSIONS OF EMPLOYEE RELATIONS

There are five major components of effective employee relations: communications, counselling discipline, rights and involvement

1. Effective Employee Communication

·  Downward communication systems

-- Begins at some point in the organization and feeds down the organizational hierarchy to inform or influence others

-- Multiple channels are used to overcome barriers and reach the intended receivers

-- In-House Publications to inform employees about current developments and to foster understanding of objectives. May contain articles about sports activities, employee profiles, etc.

-- Information Booklets are often distributed by human resource departments e.g. employee handbook, specialized subjects such as employee assistance programs, etc.

-- Employee Bulletins concerning day-to-day operations are published by human resource departments. Increasingly electronic media are being used to communicate with employees

-- Pre-recorded Messages may take the form of television programs, automated voicemail, etc.

-- Electronic Communication (e-mail) is becoming a widely used method of communicating with employees. Intranets (internal communications systems that function like a smaller version of the World Wide Web) are being used for a wide variety of purposes including communication with employees. Extranets (intranets linked with vendors) are being used for purposes such as benefit inquiries. To prevent the misuse of electronic communications organizations require policies on Internet usage

-- Information Sharing and Open Book Management include sharing financial and other information with employees. (Statistics Canada reports that 49 percent of employers follow a practice of sharing information with workers)

·  Upward Communication Systems

-- Area of communication that requires improvement in most organizations

-- Upward communication begins in the organization and proceeds up the hierarchy to inform or influence others

-- Grapevine is an informal system that arises spontaneously from the social interaction of people in the organization. Feedback includes information about areas of job dissatisfaction, difficulties with supervisors, etc.

-- Electronic Communication such as e-mail, intranets, and discussion groups can also be used effectively to facilitate upward communication

-- In-House Complaint Procedures are formal methods through which an employee can register a complaint. Alternate dispute resolution (ADR) programs are used in many organizations to resolve disputes in a timely, cost-effective manner. ADR programs include open door policy, peer review panel, ombudsperson, mediation and arbitration

-- Manager-Employee Meetings are meetings between managers and groups of employees to discuss issues, suggestions, opinions, etc.

-- Suggestion Systems are a formal method for generating, evaluating, and implementing employee ideas. These systems may fail because suggestions may take too long to implement or supervisors/managers have failed to fully support or encourage the process—also need to reflect group contributions

-- Employee Attitude/Opinion Surveys are systematic methods of determining what employees think about their organizations (usually conducted through anonymous questionnaires); requires feedback of results and action; many organizations are using Web technology to conduct surveys

2. Employee Counselling

·  Discussion of a problem with an employee to help the employee cope. Major counselling functions include:

-- Advice to guide the employee toward desired courses of action

-- Reassurance is often provided that the employee is following a suitable course of action

-- Communication is a key aspect of counselling

-- Release of emotional tension when provided an opportunity to discuss their problems.

-- Clarified thinking can result from discussion of problems

-- Reorientation occurs if a change in goals or values results

·  Employee & Family Assistance Programs (EFAP)

-- Comprehensive company programs that seek to help employees to overcome their personal and work-related problems

-- Online communications are increasingly being used to supplement EFAP structures e.g. video counselling, chat rooms, bulletin boards, and self-help applications

3. Employee Discipline is management action to encourage compliance with the organization’s standards

·  Preventive Discipline is an action taken prior to any infraction to encourage employees to follow the rules

-- Management has responsibility for ensuring standards are known and understood

-- The human resource department has a major responsibility e.g. developing specific programs, communication

Employee Discipline
Slide 8
Positive Discipline
Slide 9
Dismissal
Slide 10
Dismissing an Incompetent Employee
Slide 11
Constructive Dismissal
Slide 12
Reasonable Notice
Slide 13
Employee Rights
Slide 14
Employee Involvement
Slide 15
Job Security & Downsizing
Slide 16
Retaining Top Performers
Slide 17 /

• Restrictions on Discipline

-- Ability to discipline may be restricted by union contracts (concerns about management authority) and government legislation for workers who assert rights protected by law (e.g. failing to perform work that is unsafe)

-- Due process may be required to ensure established rules and procedures for disciplinary action are followed, and employees have an opportunity to respond to the charges

• Progressive Discipline is a type of discipline whereby there are stronger penalties for repeated offences including verbal reprimand, written reprimand, suspension, discharge for cause

-- Verbal reprimand by supervisor

-- Written reprimand, with a record in file

-- One- to three-day suspension from work

-- Suspension for one week or longer

-- Discharge for cause

·  Positive Discipline

-- Takes a problem-solving approach instead of using punishment

-- Involves employee acceptance that a problem exists and agreement that the employee takes responsibility

-- Focus on the specific problem rather than the employee’s attitude or personality

-- Gain agreement with the employee that a performance problem exists and that the employee is responsible for changing his/her behaviour

-- Approach discipline as a problem-solving process

-- Document suggested changes and employee commitments

-- Follow up to ensure the employee is keeping commitments

DISMISSAL

The ultimate disciplinary action is dismissal (i.e. fired, terminated, discharged, separated)

·  Wrongful Dismissal

-- A non-union employer who does not have just cause for dismissing an employee may be sued for wrongful dismissal

-- The law is very complicated and legal guidance is advised

-- Employment standards legislation provides minimum notice for dismissal without cause, however, the courts frequently exceed these provisions

·  Determining Just Cause

-- Cause for dismissal under common law includes an act by an employee that could have serious negative effects on the organization e.g. incompetence; employee misconduct

-- Employer is responsible for proving the existence of just cause

-- Perceptions of employers and the courts often differ

·  Incompetent Work Performance

-- The employment contract contains an implied warranty that the employee is “reasonably competent” and able to perform the work for which the employee was hired.

-- Requirements in dismissing an incompetent employee include:

1.  Have a reasonable and objective performance standard. It is the employer’s responsibility to show the standard was effectively communicated and that others have achieved

2.  Document employee’s performance indicating that he/she has failed to meet the standards (while others have)

3. Have evidence of warnings given to the employee

4. Show that appropriate training, support, time and feedback have been provided to the employee

5. Demonstrate the employee had reasonable time to improve performance

·  Employee Misconduct

-- Theft, fraud, and dishonesty are among the most serious grounds for dismissal

-- Other cases involve consideration of the nature of the misconduct and the employer’s position within the organization e.g. senior mangers or those in position of trust (such as a teacher) may be held to a higher standard of conduct both on and off the job

·  Business or Economic Reasons

-- Terminating an employee for business or economic reasons is not just cause for dismissal i.e. reasonable notice or compensation is required

·  Constructive Dismissal

-- A major change in the employment terms that results in an employee resigning may be considered constructive dismissal Examples: significant change in job function, a demotion, a demand for an employee’s resignation, or a forced transfer

·  Reasonable Notice

When just cause for dismissal does not exist, a dismissed employee must be provided “reasonable notice” or compensation in lieu of notice

-- Major considerations include former employee’s age, length of service, salary, occupational status, labour market conditions. Note: employees who are terminated are required to attempt to mitigate losses i.e. make efforts to find alternative employment

4. Employee Rights

·  Right to Privacy

-- Access to Information Act prohibits disclosure of any record that contains personal information without the employee’s consent

-- Employers must only collect job-related information

-- Many organizations monitor employee communications and activities on the job

·  Right to Fair Treatment

-- An individual’s age, race, gender, religion, physical disability, etc. should not be considered when hiring (unless it is a bona fide occupational requirement)

-- An employer has an obligation to make reasonable accommodation to meet employee needs

-- These principles must also govern the day-to-day working relationship

-- Right to work in a safe and harassment-free environment

·  Rights in Business Closings and Workplace Restructuring

-- Legislation must be examined to ensure that notice requirements for mass layoffs are being observed

-- Many organizations try to provide advance notice and help employees affected by job loss e.g. outplacement assistance

5. Employee Involvement

Most of the approaches to employee involvement focus on the increased participation of workers. Employee involvement is a popular method to increase the quality of work life.

·  Self-Directed Work Teams

-- Teams of workers without a formal company-appointed supervisor who make decisions traditionally handled by a supervisor e.g. daily work assignments, the use of job rotation, orientation, training, and production schedules

·  High Involvement Work Practices

-- Benefits include lower turnover, higher productivity, and improved financial performance

JOB SECURITY, DOWNSIZING, AND EMPLOYEE RETENTION

·  No-Layoff Policies

-- Employees who have job security are more receptive to change, more likely to be innovative

·  Organizational Downsizing

-- Major corporations around the world continue to downsize

-- Implemented to enhance organizational performance, however, studies show that morale sinks, productivity drops, and survivors distrust management

·  Retaining Top Performers

-- Develop a planned approach to employee retention including addressing individual needs, investing in employees, etc.

-- Become an employer of choice with a goal of retaining employees

-- Communicate the organization’s vision and values clearly, frequently, and consistently

-- Reward supervisors and managers for keeping good people

-- Use exit interviews to obtain information as to why people are leaving the organization

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Chapter 11 Managing Employee Relations

answers to review and Discussion Questions

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Chapter 11 Managing Employee Relations

1. Think of a situation in which you learned some new information from the grapevine and took action on the basis of that information. Discuss.

Answers will vary. However, students’ examples will illustrate how grapevines can supplement more formal organizational communications.

2. List and describe different types of programs that can be used by the human resource department to improve communication.

Company magazines, newspapers, and other in-house publications provide employees with one-way communication about developments within the organization. This information may be supplemented by printed booklets, bulletins and various electronic communication media that inform employees about specific programs or changes in those programs. Television and other pre-recorded messages provide the same one-way communication but do it in a different format. Job-holder reports and meetings share information with employees about the organization's economic success. Employee meetings, employee question-answer programs, electronic communication, suggestion programs, and formal attitude and opinion surveys allow employees to communicate upwardly with others in the organization, which furthers the goals of two-way communications. Likewise, an open-door policy furthers two-way communication because it allows employees to interact with others in the organization.