Chapter 15: Managing Employee Separations Flashcards
Employee relations
The activity that involves establishing and maintaining the positive employee-employer relationships that contribute to satisfactory productivity, motivation, morale, discipline, and to maintaining a positive, productive, and cohesive work environment
Fair treatment
reflects concrete actions such as “employees are treated with respect” and “employees are treated fairly”
Employee Engagement
The emotional and intellectual involvement of employees in their work, such as intensity, focus, and involvement in his or her job and organization
Organizational justice has three components, what are they?
1) distributive justice
2) procedural justice
3) interactional justice
1) distributive justice
Fairness of a decision outcome
2) procedural justice
Fairness of the process used to make a decision
3) Interactional Justice
Fairness in interpersonal interactions, treating others with dignity and respect
Turnover
the termination of an individual’s employment with an organization
Most popular reason for Voluntary turnover
Employee sough new challenges
Most popular reason for Involuntary turnover
Downsizing or restructuring
here are four main components associated with the cost of the turnover: what are they?
1) Separation cost
2) Vacancy costs
3) Replacement costs
4) Training costs
Separation costs
the cost of exit interviews, administrative functions associated with the turnover, and separation or severance pay
Vacancy costs
the net savings or cost incurred of increased overtime, the use of temporary workers, and the loss of sales associated with the vacancy
Replacement costs
the cost of recruiting and hiring a replacement to fill the vacant position (including the cost of interviews, testing, administrative expenses, travel or moving expenses, etc.)
Training costs
formal and informal training (including the performance differential between employees exiting the organization and their replacements
Overall, the reasons for turnover can be classified into two subgroups: what are they?
Voluntary
Involuntary
Voluntary turnover
employee initiated,
usually in the form of quits or retirement
Involuntary turnover
employer initiated
is usually in the form of dismissals or layoffs
Why Do Employees Engage in Voluntary Turnover? (In Priority Order)
According to managers: Insufficient pay or unfair pay practices
According to employees: Insufficient pay or unfair pay practices
Quitting
Voluntary, employee-initiated resignation
most often caused by low job satisfaction
Retirees on call
A program where retirees ca continue to work on part-time or as-needed basis past-retirement
Phased retirement
Potential retirees gradually reduce the number of hours worked per week over time
Preretirement counselling
Counselling provided to employees some months (or even years) before retirement, which covers such matters as benefit advice, second careers, and so on
A fair and just disciplinary process is based on three foundations: what are they?
1) Rules and regulations,
2) Progressive discipline
3) an appeals process
Dismissal
Involuntary termination of an employee’s employment
Dismissed for just cause
KNOW FOR MIDTERM
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
Insubordination
Willful disregard or disobedience of the boss’ authority or legitimate orders; criticizing the boss in public
Progressive Discipline
KNOW FOR MIDTERM
A system of progressive penalties
Penalties may range from verbal warnings, to written warnings, to suspension (paid or unpaid) from the job, and finally to dismissal
Finally, there should be an appeals process as part of the disciplinary process; this helps to ensure procedural fairness.
Downsizing
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
Layoff
The temporary withdrawal of employment to workers for economic or business reasons
There are several alternatives to layoffs, such as:
1) voluntary reduction in pay, where all employees agree to reductions in their pay to keep everyone working
2) Other employers arrange to have all or most of their employees accumulate their vacation time and to concentrate their vacations during slow periods
3) contingent employees hired with the understanding that their work is temporary and they may be laid off at any time
4) work-sharing program, available through Service Canada, allows employers to reduce the workweek by one to three days, and employees can claim employment insurance for the time not worked
Wrongful dismissal
An employee dismissal that does not comply with the law or does not comply with a written or implied contractual arrangement
Reasonable notice legislation
Laws that require an employer to notify employees in the even that they decide to terminate employees through layoffs (i.e. no just cause). Minimize 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
A rule of thumb some organizations follow for reasonable notice is about ____________ per year of service
three to four weeks
bad-faith damages
Reserved for extreme circumstances in which the employers was untruthful, misleading, or unduly insensitive to the employee in the course of a dismissal
Punitive Damages
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
Constructive Dismissal
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
Example of unilateral changes: demotion, reduction in pay and benefits, forced resignation, forced early retirement, forced transfer, and changes in job duties and responsibilities
Termination Interview
An interview in which an employee is informed of the fact that they have been dismissed
Termination Interview Guidance / help
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
Five major reactions after termination often occur:
1) Hostile / angry
2) Defensive / bargaining
3) Formal controlled manner
4) Stoic facade (masking emotions)
5) Emotional with tears and sadness
According to the textbook, which of the following is the general rule for organizations to follow when providing reasonable notice?
QUIZ QUESTION
3 to 4 weeks per year of service
Which of the following is the most drastic disciplinary step that can be taken towards an employee?
QUIZ QUESTION
Dismissal
According to the textbook, factors such as globalization, technological advancements, and market pressures have resulted in
QUIZ QUESTION
a decrease in job stability.
Helena feels that her employer’s method and process for deciding on pay increases is not fair; this indicates Helena’s concern with which of the following components of organizational justice?
QUIZ QUESTION
Procedural justice
Antoinette reviews the performance of an employee who continually produces less than the standard for her job. Antoinette informs the employee that she is fired; what kind of turnover is this an example of?
QUIZ QUESTION
Involuntary
According to the data presented in the textbook, what was the most common voluntary turnover reason?
QUIZ QUESTION
Employee sought new challenges
Chantelle owns an education company that provides services to colleges, universities, and publishers. One of her workers, Anthony, would like to retire but is unsure of how to assess his financial situation or what he would do in retirement. Chantelle hires a Retirement Consultant to speak with Anthony about transitioning into retirement; what term best describes this?
QUIZ QUESTION
Pre-retirement counselling
The indirect costs of turnover include the cost of advertising the job and interviewing new candidates.
QUIZ QUESTION
FALSE
What is the average age of retirement for private sector employees in Canada?
QUIZ QUESTION
62
According to the Ontario Employment Standards Act, at least how many weeks of notice must an employee, who has worked more than two years for the same employer, provide the employer when quitting?
QUIZ QUESTION
2 Weeks
Diana has 5 employees in her marketing department. Their years of age are as follows: Don is 19, Sarah is 22, Muhammad is 31, Miko is 38, and Paulo is 41. Which employee is least likely to experience turnover with Diana’s company based on his/her age?
QUIZ QUESTION
Paulo
Which of the following is an example of involuntary turnover?
QUIZ QUESTION
Dismissal
The temporary withdrawal of employment to workers based on economic or business reasons is referred to as
QUIZ QUESTION
Layoff
If just cause is not present, then a termination without reasonable notice is considered unfair and is known as which of the following?
QUIZ QUESTION
Wrongful dismissal
Which of the following is a program where retirees can come back to work on a part-time or on an as-needed basis?
QUIZ QUESTION
Retirees on call
