Chapter 10 separating and retaining employees

1. Chapter 10 separating and retaining employees Fundamentals of human resource management 5theditionBy R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

2. Managing Turnover • What was the primary reason you’ve ever quit a job? • I didn’t like my boss or coworkers • I wasn’t a fit with the company culture • Better pay somewhere else • More interesting or challenging work somewhere else • I was fired or laid off • Other 10-4

3. Managing Voluntary andInvoluntary Turnover Involuntary Turnover Voluntary Turnover • Turnover initiated by an employer. • Often with employees who would prefer to stay. • Turnover initiated by employees. • Often when the organization would prefer to keep them. 10-5

4. Table 10.1: Costs Associated with Turnover 10-6

5. Employee Separation • Because of the critical financial and personal risks associated with employee dismissal, it is easy to see why organizations must develop a standardized, systematic approach to discipline and discharge. • These decisions should not be left solely to the discretion of individual managers or supervisors. • Policies should be based on principles of justice and law. • Policies should allow for various ways to intervene. 10-8

6. Figure 10.1: Principles of Justice The sensitivity of a system for disciplining and possibly terminating employees is obvious, and it is critical that the system be seen as fair.  10-10

7. Test Your Knowledge • A company whose earnings are very low has to reduce the amount given in raises to avoid laying people off. The amount of the raise for each employee is determined objectively based on their performance. An employee working for this company will most likely feel ____________ and _________________. • High outcome fairness; high interactional injustice • Low outcome fairness; high procedural justice • Low interactional justice, high outcome fairness • Low outcome fairness, low procedural justice 10-11

8. Legal Requirements • he law gives employers wide latitude in hiring and firing, but employers must meet certain requirements. • They must avoid wrongful discharge and illegal discrimination. • They also must meet standards related to employees' privacy and adequate notice of layoffs.

9. Legal Requirements Wrongful Discharge Discrimination • Discharge may not violate an implied agreement. • e.g., employer had promised job security • e.g. action inconsistent with company rules • Discharge may not violate public policy. • e.g., terminating employee for refusing to do something illegal or unsafe. • Employers must make discipline decisions without regard to a person’s age, sex, race, or other protected status. • Evenhanded, carefully documented discipline can avoid such claims. 10-13

10. Legal Requirements • Employees’ Privacy: • Employers need to ensure that the information they gather and use for discipline is relevant. • Privacy issues also concern the employer’s wish to search or monitor employees. • Employers must be prudent in deciding who will see the information. 10-14

11. Table 10.2: Measures for Protecting Employees’ Privacy 10-15

12. Test Your Knowledge Pam Jones worked for 41 years at the same company and had positive performance ratings and personnel records. She needed a calculator for work which she purchased with her own money but was not reimbursed because she lost the receipt. Later, a security guard stopped her as she was leaving work and discovered the calculator in her belongings. After a brief internal investigation, she was fired and it was announced through internal notices that she had committed a theft. The employee sued for libel, saying the company used her as an example to prevent other thefts. 10-16

13. Test Your Knowledge • What are the key issues in the case? • As the HR Director, how would you resolve this case?

14. Legal Requirements • Notification of Layoffs: • Organizations that plan broad-scale layoffs may be subject to the Workers’ Adjustment, Retraining and Notification Act (WARN). • Employers covered by the law are required to give notice before any closing or layoff. 10-18

15. Test Your Knowledge • After hiring Bob for a newly created marketing specialist position, his boss assures him that he will be secure in the job until he retires. A year later, that department is eliminated. Bob complains he was guaranteed employment until retirement. Is he right? • No, an employer can hire or fire someone whenever they want. • No, there was no written contract. • Yes, he was given a verbal contract. 10-19

16. Progressive Discipline Hot-Stove Rule Progressive Discipline • Principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, and immediate consequences. • A formal discipline process in which the consequences become more serious if the employee repeats the offense. 10-20

17. Figure 10.2: Progressive Discipline Responses 10-21

18. Progressive Discipline Rules of behavior should cover disciplinary problems such as: • Tardiness • Absenteeism • Unsafe work practices • Poor quantity or quality of work • Sexual harassment • Coming to work impaired by alcohol or drugs • Theft of company property • Cyberslacking 10-22

19. Guidelines to Respond to Misconduct • Be clear about performance standards. • Be consistent. • Don’t ignore the problem behavior. • Investigate complaints ASAP. • Record statements in writing, with signatures & dates. • Focus on behaviors not personalities • Documentation should be clear and complete. • Be honest. 10-23

20. Figure 10.3:Options for Alternative Dispute Resolution 10-24

21. Alternative Dispute Resolution Open-Door Policy Peer Review • An organization’s policy of making managers available to hear complaints. • Process for resolving disputes by taking them to a panel composed of representatives from the organization at same levels as the people in the dispute. 10-25

22. Alternative Dispute Resolution Mediation Arbitration • Nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in a conflict arrive at a settlement. • Binding process in which a professional arbitrator from outside the organization (usually a lawyer or judge) hears the case and resolves it by making a decision. 10-26

23. Employee Assistance Programs • Employee assistance program (EAP) – a referral service that employees can use to seek professional treatment for emotional problems or substance abuse. • Many EAPs are fully integrated into employers’ overall health benefits plans. 10-27

24. Outplacement Counseling • Outplacement counseling – a service in which professionals try to help dismissed employees manage the transition from one job to another. • Goals for outplacement counseling are to help former employee address psychological issues associated with losing a job while helping them find a new job. 10-28

25. Employee Engagement Employee engagement is the degree to which employees are fully involved in their work and the strength of their commitment to their job and company. • Employees who are engaged and provide a clear competitive advantage to that firm, including higher productivity, better customer service, and lower turnover. 10-29

26. Job Withdrawal • Job Withdrawal – a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally. • Job withdrawal results when circumstances such as the nature of the job, supervisors and coworkers, pay levels, or the employee’s own disposition cause the employee to become dissatisfied with the job. • Job withdrawal may take the form of behavior change, physical job withdrawal, or psychological withdrawal 10-30

27. Figure 10.4: Job Withdrawal Process 10-31

28. Causes of Job Dissatisfaction 10-32

29. Causes of Job Dissatisfaction • Negative affectivity means pervasive low levels of satisfaction with all aspects of life, compared with other people's feelings. • People with negative affectivity experience feelings such as anger, contempt, disgust, guilt, fear, and nervousness more than other people do, at work and away. • Core self-evaluations are bottom-line opinions individuals have of themselves and may be positive or negative. • People with a positive core self-evaluation have high self-esteem, believe in their ability to accomplish their goals, and are emotionally stable.

30. Causes of Job Dissatisfaction • Role Ambiguity- is uncertainty about what the organization and others expect from the employee in terms of what to do or how to do it. • Role Conflict-is an employee's recognition that demands of the job are incompatible or contradictory; a person cannot meet all the demands. • Role Overload- results when too many expectations or demands are placed on a person. (The opposite situation is role underload.)

31. Actions Employees Take When Dissatisfied • Behavior changes • Work with management to change the condition • Whistle-blowing • Bring a lawsuit • Lodge complaints • Physical job withdrawal • Psychological withdrawal • Decrease in job involvement • Decrease in organizational commitment 10-36

32. Office Workers Appreciate Help Balancing Roles and Learning New Skills 10-37

33. Job Satisfaction • Job satisfaction –a pleasant feeling resulting from the perception that one’s job fulfills or allows for the fulfillment of one’s important job values. • 3 components of job satisfaction are: • Values • Perceptions • Ideas of what is important • People will be satisfied with their jobs as long as they perceive that their jobs meet their important values. 10-38

34. Figure 10.5: Increasing Job Satisfaction 10-39

35. Role Analysis Technique • Because role problems rank just behind job problems in creating job dissatisfaction, some interventions aim directly at role elements. •  One of these is the role analysis technique- aprocess of formally identifying expectations associated with a role.

36. Figure 10.6 Steps in the Role Analysis Technique 10-41

37. Job Satisfaction:Supervisors and Co-workers Co-workers and supervisorsaffect job satisfaction. • A person may be satisfied with them because they • share same values, attitudes, and philosophies. • provide social support, meaning they are sympathetic and caring. • help the person attain some valued outcome. 10-42

38. Monitoring Job Satisfaction • Employers can better retain employees if they are aware of satisfaction levels, so they can make changes if employees are dissatisfied. • The usual way to measure job satisfaction is with some kind of survey. • A systematic, ongoing program of employee surveys should be part of the organization’s HR strategy to monitor trends and prevent voluntary turnover. 10-45

39. Job Descriptive Index • A widely used measure of job satisfaction is the Job Descriptive Index (JDI). • The JDI emphasizes specific aspects of satisfaction—pay, the work itself, supervision, co-workers, and promotions • Other scales measure general satisfaction, using broad questions such as “All in all, how satisfied are you with your job?”

40. Figure 10.7: Example of Job Descriptive Index (JDI) 10-47

41. Figure 10.8: Example of a Simplified, Nonverbal Measure of Job Satisfaction Some scales avoid language altogether, relying on pictures. 10-48

42. Exit Interview • Exit interview: a meeting of a departing employee with the employee’s supervisor and/or a human resource specialist to discuss the employee’s reasons for leaving. • A well-conducted exit interview can uncover reasons why employees leave. • When several exiting employees give similar reasons for leaving, management should consider whether this indicates a need for change. 10-49

43. Summary • Involuntary turnover occurs when the organization requires employees to leave, often when they would prefer to stay. • Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them. 10-50

44. Summary • Employees draw conclusions based on outcomes of decisions regarding them, procedures applied, and way managers treat employees when carrying out those procedures. • Employee discipline should not result in wrongful discharge, such as a termination that violates an implied contract or public policy. • Discipline should be administered evenhandedly, without discrimination. 10-51

45. Summary • Discipline should follow principles of the hot-stove rule, meaning discipline should give warning and have consequences that are consistent, objective, and immediate. • A system that can meet these requirements is progressive discipline, in which rules are established and communicated, and increasingly severe consequences follow each violation of the rules. • Organizations may also resolve problems through alternative dispute resolution. 10-52

46. Summary • Circumstances involving the nature of a job, supervisors and coworkers, pay levels, or employee’s own disposition may produce job dissatisfaction. When employees become dissatisfied, they may engage in job withdrawal. • To prevent job withdrawal, organizations need to promote job satisfaction which is related to a person’s values and based on perception. • Different employees have different views of which values are important. 10-53