Chapter 15 Flashcards
Turnover
the termination of an individual’s employment with an organization
Types of Speration
- Voluntary Turnover (decision is made by the employee - quit, retirement, resignation)
- Involuntary Turnover (decision is made by the employer - dismissal, layoff)
Top 3 Reasons for Turnover
- Downsizing
- Sought New challenges
- Ineffective Leadership
Cost of Turnover
- Separation costs (separation interview, admin, severance pay)
- Vacancy Costs (temporary workers, overtime, loss of sales)
- Replacement Costs (recruiting/hiring a replacement)
- Training costs (for replacement)
5 Reasons for Voluntary Turnover
- Suboptimal hiring practices
- Difficult managerial style
- Lack of recognition
- Lack of competitive compensation
- Toxic workplace environment
Reasons for Involuntary Turnover
- Unacceptable job performance
- Economic/financial pressure
- New strategic direction
Fair and Just Disciplinary Process
- Rules + Regulations (clear expectations of acceptable behaviour)
- Progressive Discipline (warming, suspension, termination)
- Appeal process (allow employee to present case)
Dismissal for Just Cause
Termination based on poor behaviour - NO severance or additional period required
Insubordination
Disregard/disobedience of authority - often fair grounds for just cause (make sure to record and have witnesses)
Layoff
Temporary withdrawal of employment to workers
Conditions of a Layoff
- No work available
- Situation expected to be temporary
- Intention to recall employees
Alternatives to Layoffs
- pay reduction
- use of vacation time
- contigent workers
- work sharing
Fairness in Employee Seperations
- Distributive Justice (fairness of decision)
- Procedural Justice (proper procedure to make decision)
- Interactional Justice (treating others with dignity + respect)
Employment Contract vs. Implied Contract
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
Providing Reasonable Notice
*Required when terminating WITHOUT just cause