Chapter 15 Flashcards

1
Q

Turnover

A

the termination of an individual’s employment with an organization

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2
Q

Types of Speration

A
  1. Voluntary Turnover (decision is made by the employee - quit, retirement, resignation)
  2. Involuntary Turnover (decision is made by the employer - dismissal, layoff)
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3
Q

Top 3 Reasons for Turnover

A
  1. Downsizing
  2. Sought New challenges
  3. Ineffective Leadership
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4
Q

Cost of Turnover

A
  1. Separation costs (separation interview, admin, severance pay)
  2. Vacancy Costs (temporary workers, overtime, loss of sales)
  3. Replacement Costs (recruiting/hiring a replacement)
  4. Training costs (for replacement)
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5
Q

5 Reasons for Voluntary Turnover

A
  1. Suboptimal hiring practices
  2. Difficult managerial style
  3. Lack of recognition
  4. Lack of competitive compensation
  5. Toxic workplace environment
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6
Q

Reasons for Involuntary Turnover

A
  1. Unacceptable job performance
  2. Economic/financial pressure
  3. New strategic direction
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7
Q

Fair and Just Disciplinary Process

A
  1. Rules + Regulations (clear expectations of acceptable behaviour)
  2. Progressive Discipline (warming, suspension, termination)
  3. Appeal process (allow employee to present case)
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8
Q

Dismissal for Just Cause

A

Termination based on poor behaviour - NO severance or additional period required

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9
Q

Insubordination

A

Disregard/disobedience of authority - often fair grounds for just cause (make sure to record and have witnesses)

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10
Q

Layoff

A

Temporary withdrawal of employment to workers

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11
Q

Conditions of a Layoff

A
  1. No work available
  2. Situation expected to be temporary
  3. Intention to recall employees
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12
Q

Alternatives to Layoffs

A
  • pay reduction
  • use of vacation time
  • contigent workers
  • work sharing
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13
Q

Fairness in Employee Seperations

A
  1. Distributive Justice (fairness of decision)
  2. Procedural Justice (proper procedure to make decision)
  3. Interactional Justice (treating others with dignity + respect)
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14
Q

Employment Contract vs. Implied Contract

A

Employment Contract: formal agreement, just cause must be shown (if specified)

Implied Contract (indefinite period of time - can be terminated by either party w/ reasonable notice) MORE COMMON

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15
Q

Providing Reasonable Notice

A

*Required when terminating WITHOUT just cause

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16
Q

Considerations in providing Reasonable Notice

A
  • 3 - 4 weeks per year of service is a rule of thumb
  • Failure to provide reasonable notice (wrongful dismissal)
  • Large group terminations require longer period
  • avoid “bad faith” - be honest
  • wrongful acts = PUNITIVE DAMAGES
17
Q

Constructive Dismissal

A

ILLEGAL

Employer makes unilateral changes in employment contract that are unacceptable to the employee

Ex: demotion, forced resignation, reduction in pay

18
Q

How to avoid wrongful dismissal suits

A
  1. Use termination clause + probationary period in employment contracts
  2. Document disciplinary action
  3. Do not allege just cause UNLESS proven
  4. Do not terminate during special occasions
  5. Clearly state a settlement offer in writing
  6. Schedule termination interview in private area
  7. Include 2 managers in termination meeting
19
Q

Outplacement

A

Helps terminated employees train on techniques to securing a new position

20
Q

Steps in Conducting the termination Interview

A
  1. Plan interview
  2. Get to the point
  3. Describe situation briefly
  4. Listen
  5. Review all elements of the severance package
  6. Identify next steps
21
Q

Employee Engagement

A

Emotional/intellectual involvement in work - creates interest in company’s success and motivation.

Effective communication is key

22
Q

Drivers of Engagement

A
  • Senior Management sincerely interested in employees well being
  • Organizational reputation for social responsibility
  • Input into decision making
23
Q

How to help engagement

A
  • Offer rewards to employees for suggestions on organizational improvement
  • Employee opinion surveys
24
Q

Communication from Management (Engagement)

A
  • Newsletters, email, video, intranet, blogs from senior management