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Chapter 7

Chapter 7. Employee Relations. 1. Economic Responsibilities to Employees. Employee-employer contract Contract includes beliefs, perceptions, expectations, and obligations that constitute an agreement between individuals and their organizations .

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Chapter 7

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  1. Chapter 7 Employee Relations

  2. 1. EconomicResponsibilities to Employees • Employee-employer contract • Contract includes beliefs, perceptions, expectations, and obligations that constitute an agreement between individuals and their organizations. • Informal contract has significant impact on an employee’s actions.

  3. Psychological Contract • The beliefs, perceptions, expectations, and obligations that make up the agreement between individuals and the organizationsthat employ them. • Largely unwritten. • Details of the contract develop through interactions with managers and coworkers and through perceptions of the corporate culture. • When promises or expectations are not met, there is an enormous breach of trust resulting in less loyalty.

  4. Changes in Employees’Psychological Contract with Employers

  5. Rights and Duties of Employees and Employers

  6. Workforce Reduction • Process of eliminating employment positions. • Can involve reducing the number of employees, simplifying products and processes, and decreasing quality and service.

  7. Three Downsizing Tactics

  8. 36,000 M'sians jobless last year Ministry: Manufacturing sector worst hit (The Star -1 March 2010) ROMPIN: Over 36,000 Malaysians were unemployed between October 2008 and December last year, said Deputy Human Resources Minister DatukMaznahMazlan. Most of the unemployed were those who were laid off from the manufacturing sector which was most badly affected by the economic downturn, especially the 2008 recession in the United States. "During the world economic crisis, our employment rate was affected too because most of the factories had to close down or were operating at lower cost by laying off many of their workers," he said, after attending the Chinese New Year's Chap GohMeh celebration here on Saturday night. However, Maznah said the number of those who lost their jobs was still under control compared to the 84,000 laid off during the Asian economic crisis in 1997.

  9. Implications of Workforce Reduction • Question: What are some of the implications of workforce reduction on the organization, employees, their families & the community?

  10. Workforce Reduction (con’t) • Key considerations • A comprehensive plan must be developed that takes into account the financial implications and qualitative and emotional toll of the reduction strategy. • The organization should commit to assisting employees who must make a career transition. • Companies must accept the consequences of terminating employees.

  11. 2. Legal Responsibilitiesto Employees Related Topics • Hiring • Firing • Sexual Harassment • Disputes • Pensions • Workmen's Compensation • Employees Provident Fund (EPF) • Social Security Organization (SOCSO) • Occupational Safety & Health Act (OSHA)

  12. What are the laws governing employment in Malaysia ? • The principal legislation governing the labour market and employment relationship in Malaysia is the Employment Act 1955. • To provide minimum standards on working hours and overtime, weekly rest day, public holidays, annual and sick leaves, maternity benefits, termination and lay off benefits, etc. • However, the application of these rules to Sarawak and Sabah references made under the Act shall be substituted by references to the Sarawak Labour Ordinance (Cap. 76) and Sabah Labour Ordinance (Cap. 67) or other written laws in force in Sarawak or Sabah, as the case may be.

  13. Legal Responsibilities to Employees (cont.) Labor unions • Employees have a legal right to organize labor unions and to bargain collectively with employers • Labor unions have the right to negotiate wages, working conditions, and other terms of employment • Employers are required to bargain with unions in good faith • If agreement can’t be reached, a strike might occur • Labor union in Malaysia: Malaysian Trade Union Congress (MTUC).

  14. Legal Responsibilities to Employees (cont.) Health and safety • Occupational Safety and Health Act (OSHA 1994), passed in 1994, gives workers the right to a job “free from recognized hazards that are causing or likely to cause death or serious physical harm”

  15. Malaysia has one of the highest rate of industrial accidents in the world. The NST (13/6/2006) reported that the occupational fatality in the country was 7 deaths per 100,000 workers, which is doubled the ILO’s ratio of 3 per 100,000.

  16. Causes of industrial accidents in Malaysia (2006)

  17. Health and safety Department of Occupational Safety and Health Malaysia • responsible for ensuring the OSH and welfare of people at work as well as protecting other people from the safety and health hazards arising from the activities of various sectors • is a government agency responsible for the administration and enforcement of legislations related to OSH for our nation • vision of becoming the organization which leads the nation in creating a safe and healthy work culture that contributes towards enhancing the quality of working life National Institute of Safety and Health (NIOSH): Promotion of OSH

  18. Legal Responsibilities to Employees (cont.) • Equal Opportunity Employment (EEO) • Affirmative action programs allow companiesto build balanced workforces. • Recruiting • Training • Promoting • Move to reduce discrimination

  19. Legal Responsibilities to Employees (cont.) • Sexual Harassment • Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. • When submission to or rejection of this conduct explicitly or implicitly affects an individual’s employment; unreasonably interferes with an individual’s work performance; or creates an intimidating, hostile, or offensive work environment, sexual harassment has occurred.

  20. Legal Responsibilities to Employees (cont.) • Sexual Harassment (cont.) • Quid pro quo • Exchange of job benefits for sexual favors. • Hostile work environment • Epithets, slurs, negative stereotyping, intimidating acts, and/or graphic materials that show hostility toward an individual or group in the work environment. • Other types of conduct that affect the work environment.

  21. Whistle-Blowing • A whistle-blower is one who reports individual or corporate wrong-doing to either internal or external sources. • The focus is usually on issues or behaviors that need corrective action.

  22. Whistle-Blowing (cont.) • Managers and other employees may not appreciate reports that expose company weaknesses, raise embarrassing questions,or otherwise detract from organizational tasks. • Historically, whistle-blowers have been retaliated against, demoted, fired, and even worse as a result of their action. • Witness Protection Bill in Malaysia

  23. Malaysian government introduces witness protection bill (December 2008) • Kuala Lumpur, Dec 16- Malaysia’s law minister Tuesday introduced a witness protection programme in Parliament as part of efforts to protect whistle-blowers in corruption and criminal cases. Nazri Abdul Aziz presented the proposed legislation, which would provide accommodation and a new identity to those accepted as witnesses. • Under the bill, the attorney general would approve applications by whistle-blowers who have to meet an exhaustive list of criteria, including passing physical and mental examinations. • Nazri also said that informers would be allowed to give evidence from the dock with their faces covered while children could testify from a separate room.

  24. Whistle-blowing and Free Speech in the Workplace 4 conditions must be satisfied to justify whistle-blowing: • Organization is doing something that seriously harms others • Employee has tried and failed to resolve the problem internally • Reporting the problem publicly will probably stop or prevent the harm • The harm is serious enough to justify the probable costs of disclosure to the whistle-blower

  25. 3. Ethical Responsibilities to Employees • Training and development • Benefits include stronger recruitment andretention, employee commitment, job satisfaction,and productivity. • Diversity • Embraces the unique skills and contributions of all types of people. • Brings benefits as well as challenges. • Question: What are the benefits/challenges of diversity?

  26. Profiles of Generations at Work

  27. Subra: Graduates lack dynamism and edge (The Star, 16 February 2009) • KUALA LUMPUR: If you have a degree but remain unemployed, then it is time to change your attitude. That is the advice from Human Resources Minister Datuk Dr S. Subramaniam, who added: “Today’s graduates show a lack in dynamism and edge to survive the requirements of the evolving job industry.” “When things don’t work out, they often take the easy way out by looking for other jobs. “This is not right as shirking responsibilities won’t help them improve,” he said. Subramaniamsaid job-hopping should be avoided as it could be detrimental to both employers and employees. “In the current state of the economy, graduates should not take employment for granted just because they have tertiary qualifications,” he added. He said foreign investors preferred bringing in skilled labour from their own countries as they did not have faith in our local graduates any more. “In the end, our graduates not only have to compete with their local counterparts to secure jobs but those from other countries as well,” he said.

  28. Ethical Responsibilities to Employees (cont.) • Allow for work/life balance • Assist employees in balancing work responsibilities with personal and family responsibilities. • Provide flexibility • Flextime • Job sharing • Child care • Elder care • Health clubs

  29. Philanthropic Activities • Corporate giving affects employee attitudes toward the organization. • Employees benefit from participating in volunteerism programs and other philanthropic projects. • Builds teamwork skills. • Educates employees. • Example: More than 30,000 volunteers supportthe Ronald McDonald House Charities,donating one million hours of serviceper year (Source: www.rmhc.com,02/16/2007).

  30. Strategic Considerations Strong employee initiatives lead to a company being viewed as the “employer of choice.” • This allows an organization to attract, optimize, and retain the best employee talent over the long term. • Voluntary corporate codes of conduct • Example: Mattel’s Global Manufacturing Principles • Non-governmental organizations labor codes • Social Accountability (SA) 8000 establishes criteria for “good working conditions” certification • Industry-wide labor codes • Businesses work with other sectors to define standards • Example of Electronic Industry Code of Conduct developed by HP, IBM, and Dell, later endorsed by Cisco and Microsoft; applies uniform standards to their global supply chains

  31. Best Practices of Employers of Choice • Foster: • Openness • Community • Creativity • Loyalty • Responsibility • Individuality • Teamwork

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