ch 15: managing employee separations

Question 1

describe employee relations

Answer 1

• managerial activity
• establishes and maintains a positive employee-employer relationship
• contributes to productivity, motivation, morale, and discipline
• maintains a positive, productive, and cohesive work environment
• Managing employee relations is usually assigned to HR
• most employers also institute special “employee relations programs” to maintain positive employee relations

Question 2

describe the effects of unfair treatment

Answer 2

• reduces morale, poisons trust, negatively impacts performance
• leads to lower job and life satisfaction; higher stress
• victims exhibit more workplace deviance
• leads to increased tensions
• undermine effectiveness
• may lead to destructive actions

Question 3

how do we minimize unfairness?

Answer 3

• hire competent and well-balanced employees
• ensure equitable pay
• institute fair performance appraisal systems
• set policies requiring fair treatment

Question 4

what is fair treatment?

Answer 4

Reflects concrete actions, such as “employees are treated with respect” and “employees are treated fairly

Question 5

why should managers be fair?

Answer 5

• the golden rule
• unfairness can backfire on the company
• minimize consequences of unfairness

Question 6

describe employee engagement

Answer 6

• emotional and intellectual involvement in work
• a heightened emotional and intellectual connection that an employee has for his or her job, organization, manager, or co-workers that in turn influences the employee to apply additional discretionary effort.
• positive, fulfilling, work-related state of mind
• vested interest in the company’s success
• organizational justice

Question 7

describe the 3 components of organizational justice

Answer 7

1. distributive justice - fairness in the outcome of decisions
2. procedural justice - fairness of the processes
3. interactional justice - how managers conduct interpersonal dealings with employees; treat employees with dignity and respect

Question 8

describe the challenge for organizations when an employee exits

Answer 8

• time, money, and resources invested in recruiting, training, and maintaining employees
• disrupt the ability to produce and maintain talent
• derail focus from strategic issues

Question 9

what is turnover?

Answer 9

• the termination of employment either by the employee or employer
• high education reduces the likelihood of layoff but increases the probability of quitting
• Turnover rates vary by industry, by the size of the company, and by age

Question 10

what are some reasons for turnover?

Answer 10

• voluntary turnover is employee-initiated, usually in the form of quits, resignation, or retirement
• involuntary turnover is an employer initiated and usually in the form of dismissals or layoffs

Question 11

describe the different costs of turnover

Answer 11

• separation costs = exit interviews, administrative function, separation or severance pay
• vacancy costs = increased overtime, use of temporary workers, loss of sales
• replacement costs = recruiting and hiring
• training costs = formal and informal training

Question 12

describe some challenges of voluntary turnover

Answer 12

• functional where bad performers leave, and good performers stay
• dysfunctional where good performers leave, and bad performers stay
• predictors of voluntary turnover:
  
  • low organizational commitment
  • low role clarity; high role conflict
  • low tenure
  • low overall job satisfaction
  • age and marital status
  • education levels

Question 13

describe quits or resignation

Answer 13

• quitting is legally recognized as a voluntary resignation
  
  • Voluntary, employee-initiated resignation.
• competitive factors:
  
  • opportunities in other organizations
  • globalization; large-scale labour mobility
  • technological advancement
  • turbulent economy
  • results in decline in job tenure and job stability
• legal issues in involuntary turnover:
  
  • employment standards act - employee responsibilities in quitting
  • employees with less than two years of employment with the same employer are required to provide at least one week of notice when quitting
  • those with more than two years of employment with the same employer must provide at least two weeks’ notice when quitting

Question 14

describe retirement

Answer 14

• retirement is voluntary turnover
• difficulty in predicting when an employee retires
• managing resulting labour shortage:
  
  • retirees on call
  • phased retirement
• employer responsibilities:
  
  • preretirement counselling

Question 15

what are retirees on call?

Answer 15

A program where retirees can continue to work on a part-time or as-needed basis post-retirement

Question 16

what is phased retirement?

Answer 16

Potential retirees gradually reduce the number of hours worked per week over time.

Question 17

what is preretirement counselling?

Answer 17

Counselling provided to employees some months (or even years) before retirement, which covers such matters as benefits advice, second careers, and so on.

Question 18

what are organizational reasons for involuntary turnover?

Answer 18

• job performance is below acceptable standards
• economic or financial pressures may result in downsizing
• new strategic direction results in closing business units
• employer initiated turnover should be fair
• all reasonable steps should be taken first to save the employment relationship

Question 19

describe dismissal for Just Cause

Answer 19

• employer-initiated disciplinary step based on poor behaviours
• no severance pay or reasonable notice
• management is required to prove sub-par performance, feedback, and opportunities to correct behaviour
• disobedience, incompetence, dishonesty, insubordination, or misconduct
• insubordination is difficult to prove
  
  • direct disregard of authority, refusal to obey instructions, disrespect

Question 20

what is dismissal?

Answer 20

Involuntary termination of an employee’s employment.

Question 21

what is dismissal for just cause

Answer 21

An employer-initiated termination based on an employee’s poor behaviours; in these situations, no severance, reasonable notice periods, or additional payments beyond what the employee has already earned are owed

Question 22

describe progressive discipline

Answer 22

• progressive penalties
  
  • aimed at effectively disciplining employees
    
    • verbal or written warnings to suspension to dismissal
  • severity depends on the type of offence and the number of times offence has occurred

Question 23

what is insubordination?

Answer 23

Wilful disregard or disobedience of the boss’ authority or legitimate orders; criticizing the boss in public.

Question 24

what are some acts that are considered insubordination?

Answer 24

1. Direct disregard of the boss’ authority; refusal to obey the boss’ reasonable instructions—particularly in front of others.
2. Deliberate defiance of clearly stated company policies, rules, regulations, and procedures.
3. Public criticism of the boss; contradicting or arguing with him or her.
4. Contemptuous display of disrespect—making insolent comments and portraying these feelings in terms of the employee’s attitude on the job
5. Disregard for the chain of command, shown by going around the immediate supervisor or manager with a complaint, suggestion, or political maneuver.
6. Participation in (or leadership of) an effort to undermine and remove the boss from power

Question 25

what are progressive penalites?

Answer 25

A system of progressive penalties (ranging from warnings, to suspension to dismissal) aimed at effectively disciplining employees.

Question 26

what is downsizing?

Answer 26

• intentional reduction of workforce to improve efficiency and/or effectiveness

Question 27

describe a layoff

Answer 27

• temporary withdrawal of employment for business and/or economic reasons
• there is no work available for short term
• management intends to recall employees
• alternative to layoffs
  
  • voluntary pay reduction
  • voluntary time off
  • work-share programs
• Layoffs that involve unionized employees are almost always based on seniority or conditions outlined in the collective bargaining agreement

Question 28

describe providing reasonable notice

Answer 28

• reasonable notice legislation requires an employer to notify employees of termination through layoffs
  
  • minimum notice varies on size of layoffs
  • payment is lieu of may be allowed
• wrongful dismissal occurs when reasonable notice is not given except in termination for just cause
• damages may be awarded for certain cases

Question 29

what is wrongful dismissal?

Answer 29

An employee dismissal that does not comply with the law or does not comply with a written or implied contractual arrangement

Question 30

what is reasonable notice legislation?

Answer 30

• Laws that require an employer to notify employees in the event that they decide to terminate employees through layoffs (i.e., no just cause).
• Minimum notice varies on size of the layoffs, with smaller layoffs determining minimum notice based on employee tenure and mass layoffs determining minimum notice based on total layoff size.

Question 31

what is bad-faith damages?

Answer 31

Reserved for extreme circumstances in which the employers was untruthful, misleading, or unduly insensitive to the employee in the course of a dismissal.

Question 32

what is punitive damage?

Answer 32

Reserved for malicious or outrageous cases in which an employer engages in harsh and vindictive treatment of an employee, or if the employee suffered undue distress from not being given adequate notice of termination.

Question 33

describe constructive dismissal

Answer 33

• occurs when employer makes unilateral changes in the employment contract
  
  • demotion, reduction in pay and benefits, forced resignation, forced early retirement, forced transfer, or changes in job duties and responsibilities
• unacceptable to employee
• not a formal termination
• employee may sue for wrongful dismissal

Question 34

describe proper involuntary termination to avoid wrongful dismissal suits

Answer 34

• preparation:
  
  • have clear termination clauses in employment contract
  • document all disciplinary actions
  • communicate discipline policy clearly in writing
    
    • behaviours that are not permitted in the workplace
  • apply policy consistently
• response to wrongful dismissal lawsuit:
  
  • review claim
  • investigate improper conduct
  • consider mediation

Question 35

describe the termination interview

Answer 35

• The interview in which an employee is informed of the fact that he or she has been dismissed.
• plan and schedule the meeting
• get to the point immediately
• describe the situation; do not attack the person
• listen and prepare for variety of reactions that may range from hostile to emotional
• review elements of severance package
  
  • describe payment, benefits, and references
  • do not make any further promises
• explain where to go next