Chapter 15 - Employee Seperation

Question 1

Define employee relations and employee engagement.

Answer 1

Employee engagement is a positive, fulfilling, work-related state of mind characterized by vigour, dedication, and absorption. Organizational factors such as senior leadership, opportunities for learning and development, and company image and reputation are the primary influencers of engagement. Outcomes of employee engagement include improvements in recruiting, retention, turnover, individual productivity, customer service, and customer loyalty, as well as growth in operating margins and increased profit margins and revenue growth rates.

Question 2

** Explain the costs associated with employee turnover ***

Answer 2

Turnover can be very costly for the organization. The costs can be organized into four distinct categories:

separation costs: separation interview, administration, separation or severance pay

vacancy costs:temporary workers, overtime, loss of sales due to vacancy

replacement costs:recruiting/hiring replacement

training costs:for replacement/formal & informal training

Question 3

** Explain the concept of progressive discipline.

Answer 3

The principle of progressive discipline indicates that employers must have a clear policy in place for workplace violations, which increases penalties for repeated violations, and that to be legally defensible, that policy must be consistently applied and clearly communicated.

Examples of steps in progressive discipline

1. Oral warning 
2. Written warning 
3. Suspension 
4. Demotion and/or transfer
5. Discharge

Question 4

Analyze three core legal risks associated with involuntary turnover via layoffs.

Answer 4

A decision made by an employer: Dismissal or layoff

Employees who are dismissed without just cause must be provided with reasonable notice. This means paying them for several weeks or months in addition to the legally required notice period on termination. Failure to provide this can result in differing perspectives on how much reasonable notice the employee is entitled to, and this confusion can result in an employee-initiated lawsuit.

Additionally, if an employee feels that the manner in which the downsizing was executed or the decisions used were unfair, they may file a lawsuit for bad-faith damages.

If the judicial system feels that the manner in which the termination was conducted significantly violated the employer–employee relationship or was negative for the employee, additional punitive damages may be awarded.

Question 5

Describe how risks from wrongful dismissal lawsuits can be minimized.

Answer 5

While employees have the ability to initiate wrongful dismissal lawsuits on their own accord, organizations can take a few steps to reduce their exposure to wrongful dismissal lawsuits. This includes establishing clear rules and regulations for just-cause dismissals, avoiding claims of for-cause dismissal when no cause exists, mediating potential lawsuits, and reviewing claims carefully.

Question 6

***** Explain the six steps in the termination interview.

Answer 6

PGD LRI

1) Plan the interview
2) Get to the point
3) Describe the situation briefly
4) Listen
5) Review all elements of the severance package
6) Identify the next step

Question 7

*** quitting

Answer 7

Voluntary, employee-initiated resignation.

Question 8

procedural justice

Answer 8

Fairness of the process used to make a decision.

Question 9

layoff

Answer 9

The temporary withdrawal of employment to workers for economic or business reasons.

Question 10

employee opinion surveys

Answer 10

Communication devices that use questionnaires to ask for employees’ opinions about the company, management, and work life.

Question 11

** constructive dismissal

Answer 11

When the employer makes unilateral changes in the employment contract that are unacceptable to the employee, even though the employee has not been formally terminated.

Question 12

insubordination

Answer 12

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

Question 13

interactional justice

Answer 13

Fairness in interpersonal interactions, treating others with dignity and respect.

Question 14

employee engagement

Answer 14

The emotional and intellectual involvement of employees in their work, such as intensity, focus, and involvement in his or her job and organization.

Question 15

** What is involuntary turnover? What are reasons for it?

Answer 15

Employer-initiated termination of employment, such as dismissal or layoff.

Reasons for involuntary turnover:
> unacceptable job performance
> economic/financial pressures
> new strategic direction
> should be fair, after all reasonable steps taken to rehabilitate employment relationship through discipline have failed***

Question 16

phased retirement

Answer 16

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

Question 17

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

bad-faith damages

Answer 18

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

Question 19

downsizing

Answer 19

Refers to an intentional decision made by executives within the organization that involves a reduction of the workforce to improve efficiency or effectiveness of the organization by affecting the work process. Often, the term “layoff” is used to define downsizing in research and organizations.

Question 20

distributive justice

Answer 20

Fairness of a decision outcome.

Question 21

punitive damage

Answer 21

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 22

turnover

Answer 22

The termination of an individual’s employment with an organization.

Question 23

termination interview

Answer 23

The interview in which an employee is informed of the fact that he or she has been dismissed.

Question 24

wrongful dismissal

Answer 24

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

Question 25

dismissal for just cause

Answer 25

Involuntary termination of an employee’s employment.

Dismissal for just cause allows employers to terminate employment of individuals who fail to meet organizational requirements or abide by workplace expectations.

Question 26

retirees on call

Answer 26

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

Question 27

** What is voluntary turnover? What are reasons for it to occur?

Answer 27

Employee-initiated termination of employment, such as quits, retirement, or resignation.

Reasons for voluntary turnover:
> Bad hiring practices
> Lack of recognition, compensation 
> Difficult managerial style
> Toxic workplace
> “Shocks” play huge role in process

Question 28

reasonable notice legislation

Answer 28

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 29

fair treatment

Answer 29

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

Question 30

** dismissal for just cause

Answer 30

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 31

** What the three foundations of a fair and just disciplinary process? What are the possible outcomes?

Answer 31

1) Rules and regulations: clear expectations of acceptable behavior
2) Progressive discipline: warning, suspension, termination
3) Appeals process: allow employee to present case

> Employee development
Employee resentment
Perceived violation of implied contract.
Employee separation (voluntary or involuntary).
Employee withdrawal (psychological or physical).
Bystander (co-worker) reactions.

Question 32

** What are some Common Performance Deficiencies

Answer 32

Absenteeism
Tardiness
Poor attitude/insubordination
Poor task performance
Poor contextual performance