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[Results CHAPTER of downsizing/layoffs]
- Downsizing is a massive restructuring of an organization
- A one-time change in number of people employed
- Tends to fix a symptom of the problem, rather than the problem itself
- Results on workers remaining:
o Low morale
o Survivors guilt
o Job insecurity
o More work to do
o Trust lowered
o Company becomes flatter
Layers are pulled out of a firm, meaning less advancement. Less
promotion opportunities
o Organizational culture changed drastically
Corporate culture lost
o Retained employees start looking for jobs outside
o Low loyalty
o Terminated employees have made public statements detrimental to the reputation
of their former employers
[Steps in the overall disciplinary process]
- Disciplinary action process is dynamic and ongoing
- External environment can affect disciplinary actions
o Technological innovations could render a rule inappropriate
o Laws and regulations that affect company policies (e.g. OSHA caused many
companies to establish safety rules)
- Internal environment can alter disciplinary actions too
o May change employer brand
o Policies (e.g. no smoking) might instill a need for disciplinary actions
- SIX STEPS:
o Set Organizational Goals
o Establish Rules
o Communicate Rules to employees
o Observe performance
o Compare Performance with rules
o Take appropriate disciplinary action (then re-communicate rules to
employees)
[Discipline/disciplinary action]
- Discipline
o The state of employee self-control and orderly conduct
- Disciplinary action
o Invoking a penalty against an employee who fails to meet established standards
o Effective disciplinary action addresses the employees wrongful behavior, not the
employee as a person
o Usually not managements initial response to a problem
[Hot stove rule]
- According to the hot stove rule, disciplinary action should have the following
consequences:
o Burns immediately: if disciplinary action is to be taken, must occur immediately
so the individual will understand the reason for it
o Provides warning: extremely important to provide advance warning that
punishment will follow unacceptable behavior
o Gives consistent punishment: everyone receives same punishment
o Burns impersonally: no favoritism
[Progressive Disciplinary Action]
- Intended to ensure that the minimum penalty appropriate to the action is imposed
o Improper behavior takes place
o Does this violation warrant disciplinary actions? (If yes, proceed. If no, no
action taken)
o Does this violation warrant more than an oral warning? (If no, give oral
warning)
o Does this violation warrant more than a written warning?
o Does this violation warrant more than a suspension?
o Termination
[Discipline without punishment]
- Process in which a worker is given time off with pay to think about whether he or she
wants to follow the rules and continue working for the company
o Employee violates rule, manager gives oral reminder
o Repetition brings written reminder
o Third violation: worker takes one, two or three days off (with pay) to think about
situation
o Important that all rules be explicitly stated in writing
[Guidelines and recommendations for disciplinary action]
- Recommended procedures
o Everyone should have a copy of employers rules
o Need to specify which employees are covered the under rules and what
disciplinary action could occur if they break the rules
o Employees should be told of complaints against them and given opportunity to
state their case. If not, employees may feel like treated inequitably
o Disciplinary action should not be taken until fully investigated
Immediate supervisors should not have the power to dismiss without
reference to senior management
Except for a big misconduct, no one should be fired for their first offence
o Explanations for penalties should be given
-
-
o Give employees the right of appeal
o Give formal oral warning for minor offenses
What should be done?
o Everything should be fully documented
o Do not take disciplinary action in front of other employees (can affect motivation)
o Be consistent
o Have the right to have co-worker present (sometimes, a union representative is
there)
Suggested guidelines
o Offenses requiring first an oral warning, then a written warning, then
termination
Negligence
Unauthorized absences
Inefficiency in the performance of job
o Offenses requiring a written warning, then termination
Sleeping on the job
Failure to report to work one of two days in a row without notification
Negligent use of property
o Offenses requiring immediate termination
Theft
Fighting on the job
Falsifying time cards
Failure to report to work three days in a row without notification
[Written warnings]
- SIX THINGS IMPORTANT FOR WRITTEN WARNINGS
o Statement of the facts
o Indicate what rule was violated
o Statement of what resulted or could have resulted
o Previous violations
o Future consequences
o Signature and date
[Arbitration]
- Falls under Alternative Dispute Resolution
- A way for companies to protect themselves against the costs and uncertainties of the
judicial system
- Parties submit dispute to impartial third party for resolution. Could result from:
o Disparate treatment
o Bias
o Wrongful termination
[Grievance handling]
-
A formal, systematic process that permits employees to express complaints without
jeopardizing their job
Grievance: employee dissatisfaction or feeling of personal injustice relating to
employment
Multiple-Step Grievance Procedure:
o Aggrieved Employee first gives an Oral presentation to the First-Line
supervisor, and the Union Steward (Most grievances are settled at this level)
o If still not settled, employee submits Grievance in writing to second level,
consisting of Plant Manager/Personnel Manager, and a Grievance Committee
o Raise another level to President, Vice President for Labor Relations
o Finally, use arbitration
[Exit interview]
- Done by third party in HR organizations
- Reduce employee turnover by finding out problems within the company
- Reveals real reason why employees leave; may not be truthful with bosses
[Transfers, promotions, demotions, termination]
- Transfers
o Lateral movement. Same level of responsibility
o May transfer because
Relationship conflicts
Person-job fit
Unclog promotion channels
- Promotions
o Movement to higher levels
- Demotions
o Used as an alternative to termination
o Process of moving a worker to a lower level
o Productivity usually drops
o Lower morale/feels angry/betrayed
- Termination
o Most severe penalty; needs careful consideration
o Should be done on Friday afternoon