Choose one of the case studies at the end of chapters 11, 12 or 13 (not already discussed in class). Evaluate the case study by answering the questions at the end and sharing your perspective on the scenario. Your answer may be typed below and should incl

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Home >Human Resource Management homework help >Choose one of the case studies at the end of chapters 11, 12 or 13 (not already discussed in class). Evaluate the case study by answering the questions at the end and sharing your perspective on the scenario. Your answer may be typed below and should incl

CHAPTER 11 SEPARATING AND RETAINING EMPLOYEES

© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

This chapter explores the dual challenges of separating and retaining employees. Topics include distinguishing involuntary and voluntary turnover, separation process, including ways to manage this process fairly and measures the organization can take to encourage employees to stay and describes measures to take depending on whether performance is high or low.

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Difference between involuntary and voluntary turnover, and their effects on an organization.

How employees determine whether the organization treats them fairly.

Legal requirements for employee discipline.

Ways to fairly discipline employees.

How dissatisfaction affects employee behavior.

How organizations contribute to employees’ job satisfaction and retain key employees.

Need to Know

After reading and discussing this chapter, you should be able to:

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Every organization recognizes that it needs satisfied, loyal customers.
In addition, success requires satisfied, loyal employees.
Retaining employees helps retain customers and increase sales.
Organizations with low turnover and satisfied employees tend to perform better.

Introduction

This chapter explores the dual challenges of separating and retaining employees. Organizations want to keep their high-performing employees. Retaining employees helps retain customers and increase sales. Organizations with low turnover and satisfied employees tend to perform better. Organizations have to act when an employee’s performance consistently falls short. Sometimes terminating a poor performer is the only way to show fairness, ensure quality, and maintain customer satisfaction.

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What was the primary reason you’ve ever quit a job?

I did not like my boss or coworkers

I was not a fit with the company culture

Better pay somewhere else

More interesting or challenging work somewhere else

I was fired or laid off

Other

Managing Turnover

Retaining employees helps retain customers and investors.

What was the primary reason you’ve ever quit a job?

Didn’t like my boss
I wasn’t a fit with the company culture
Better pay somewhere else
More interesting or challenging work somewhere else
I’ve never quit a job
Other
Ask students to comment on their answers. Link these comments to the concepts of voluntary and involuntary turnover from the employee’s perspective and functional vs. dysfunctional turnover from the employer’s perspective.

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Managing Voluntary and
Involuntary Turnover

Involuntary Turnover

Turnover initiated by an employer.
Often with employees who would prefer to stay.

Voluntary Turnover

Turnover initiated by employees.
Often when the organization would prefer to keep them.

Organizations must try to ensure that good performers want to stay with the organization and that employees whose performance is chronically low are encouraged – or forced – to leave. Both of these challenges involve employee turnover - employees leaving the organization. Typically, the employees who leave voluntarily are either the organization’s worst performers, who quit before they are fired, or its best performers, who can most easily find attractive new opportunities.

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Table 11.1:
Costs Associated with Turnover

Organizations try to avoid the need for involuntary turnover and to minimize voluntary turnover, especially among top performers. Both kinds of turnover are costly, as summarized in Table 11.1. Replacing workers is expensive, and new employees need time to learn their jobs and build teamwork skills. Effective HRM can help the organization minimize both kinds of turnover, as well as carry it out effectively when necessary. Despite a company’s best efforts at personnel selection, training, and compensation, some employees will fail to meet performance requirements or will violate company policies.

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True (A) or False (B)

A manager who decides to fire an employee should quietly take action alone and then let others know afterwards.

Separating employees has financial and personal risks.

Test Your Knowledge

True (A) or False (B)

A manager who decides to fire an employee should quietly take action alone and then let others know afterwards.
Separating employees has financial and personal risks.

Answers: 1. B, 2. A.

Because of the critical financial and personal risks associated with employee dismissal, organizations must develop a standardized, systematic approach to discipline and discharge.
These decisions should not be left solely to the discretion of individual managers and supervisors.
Policies that can lead to employee separation should be based on the principles of justice and law and should allow for various ways to intervene.

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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.

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.

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Principles of Justice

Three principles about the system’s fairness based on the system’s outcomes and procedures and the way managers treat employees when carrying out those procedures include outcome fairness, procedural justice and interactional justice.

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Figure 11.1:
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. Employees form conclusions about the system’s fairness based on the system’s outcomes and procedures and the way managers treat employees when carrying out those procedures.

Figure 11.1 shows six principles that determine whether people perceive procedures as fair. The procedures should be consistent from one person to another, and the manager using them should suppress any personal biases.

Outcome fairness
Procedural justice
Interactional justice. The procedures should be based on accurate information, not rumors or falsehoods. The procedures should also be correctable, meaning the system includes safeguards, such as channels for appealing a decision or correcting errors. The procedures should take into account the concerns of all the groups affected—for example, by gathering information from employees, customers, and managers and be consistent with prevailing ethical standards, such as concerns for privacy and honesty.

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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

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 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

Answer: B

It is possible to be unhappy with the outcome but not feel that it is unfair. For example, a company whose earnings are very low and has to reduce raises to avoid laying people off, the employee may not be happy with the low raise but will not perceive it as unfair because they realize the same is happening to everyone else and there is a good reason – poor performance of the company.

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Legal Requirements

Wrongful Discharge

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.

Discrimination

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.

The 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. These considerations are discussed on this and the next slide.

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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.

Employees’ Privacy

Searches and surveillance should be for a legitimate business purpose, and employees should know about and consent to them. Social media is another area where employers have considered employees’ personal activities to be relevant. For example, . Hospitals have discovered that their employees discussed patients on Facebook, which is illegal as well as unethical.

Question: Under what conditions do you think an employer should monitor employees’ personal use of social media?

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Table 11.2
Measures for Protecting Employees’ Privacy

No matter how sensitively the organization gathers information leading to disciplinary actions, it should also consider privacy issues when deciding who will see the information. Table 11.2 summarizes the measures for protecting employees’ privacy.

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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.

Test Your Knowledge

Read the following passage to the class: 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 an 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.

What are the key issues in the case?
Employee privacy, why were they searching employees on the way out? Could be indicator of poor, distrustful culture.
As the HR Director, how would you resolve this case?
Student’s answers will vary but should indicate a sense of due process for the employee and sensitivity around publicizing this event internally.
This is based on an actual case where the plaintiff won millions from the company.

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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.

Notification of Layoffs

Sometimes terminations are necessary not because of individuals’ misdeeds, but because the organization determines that for economic reasons it must close a facility. An organization that plans such broad-scale layoffs may be subject to the Workers’ Adjustment Retraining and Notification Act. This federal law requires that organizations with more than 100 employees give 60 days’ notice before any closing or layoff that will affect at least 50 full-time employees. Seek legal advice before implementing a plant closing

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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.

Test Your Knowledge

No, an employer can hire or fire someone whenever they want.
No, there was no written contract.
Yes, he was given a verbal contract.
Answer C, verbal contracts such as this have held up in courts in some states. Employers have to be careful how they frame the positions to employees. They don’t want to overemphasize the fact employment is at will but they also don’t want to make any guarantees they can’t fulfill.

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Progressive Discipline

Hot-Stove Rule

Principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, and immediate consequences.

Progressive Discipline

A formal discipline process in which the consequences become more serious if the employee repeats the offense.

Hot-Stove Rule- principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, immediate consequences. The glowing or burning stove gives warning not to touch. Anyone who ignores the warning will be burned. The stove has no feelings to influence which people it burns, and it delivers the same burn to any touch and is immediate. Like the hot stove, an organization’s discipline should give warning and have consequences that are consistent, objective, and immediate.

Progressive discipline- organizations look for methods of handling problem behavior that are fair, legal, and effective. The principles of justice suggest that the organization prepare for problems by establishing a formal discipline process in which the consequences become more serious if the employee repeats the offense. Such a system is called progressive discipline.

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Figure 11.2:
Progressive Discipline Responses

A typical progressive discipline system identifies and communicates unacceptable behaviors and responds to a series of offenses with the actions shown in Figure 11.2 –spoken and then written warnings, temporary suspension, and finally, termination. This process fulfills the purpose of discipline by teaching employees what is expected of them and creating a situation in which employees must try to do what is expected. It seeks to prevent misbehavior (by publishing rules) and to correct, rather than merely punish, misbehavior. A progressive discipline system should have requirements for documenting the rules, offenses, and responses. should provide an opportunity to hear every point of view and to correct errors, following a procedure that is consistent for all employees.

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Progressive Discipline

Rules of behavior should cover disciplinary problems such as:

Tardiness

Absenteeism

Unsafe work practices

Poor quantity or quality of work

Sexual harassment

Impaired by alcohol or drugs

Theft of company property

Cyberslacking

Creating a formal discipline process is a primary responsibility of the human resource department. For each infraction, the HR professional would identify a series of responses, such as those in Figure 11.2. In addition, the organization must communicate these rules and consequences in writing to every employee.

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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.

Guidelines to Respond to Misconduct

If employees understand what is expected of them, the company can fairly discipline them for not meeting the standards. Never favor one employee over another in choosing complaints to investigate. Issues that require investigation are allegations that an employee violated a work rule, is not meeting performance standards, did something that could have harmed the employee or others, or engaged in incidents that disrupted the work environment. When the issue involves a violation of company rules, the statement should specify the rule and indicate that the behavior was a violation of that rule. If an employee is confused about whether or not rules were actually broken or what standards of performance are necessary, the employee could conclude that the supervisor won’t actually follow through with discipline or that disciplinary measures result from discrimination.

Figure 11.3:
Options for Alternative Dispute Resolution

Sometimes problems are easier to solve when an impartial person helps to create the solution. ADR methods of solving a problem by bringing in an impartial outsider but not using the court system. Generally, a system for alternative dispute resolution proceeds through the four stages shown in Figure 11.3. They are briefly summarized on the next two slides.

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Alternative Dispute Resolution

Open-Door Policy

An organization’s policy of making managers available to hear complaints.

Peer Review

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.

Organizations also may resolve problems through alternative dispute resolution, including an open-door policy, peer review, mediation, and arbitration. Typically, the first “open door” is that of the employee’s immediate supervisor, and if the employee does not get a resolution from that person, the employee may appeal to managers at higher levels. This policy works only to the degree that employees trust management and managers who hear complaints listen and are able to act.

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Alternative Dispute Resolution

Mediation

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.

Arbitration

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.

Mediation process is not binding, meaning the mediator cannot force a solution. Typically, an ADR process begins with an open-door policy, which is the simplest, most direct, and least expensive way to settle a dispute. When the parties to a dispute cannot resolve it themselves, the organization can move the dispute to peer review, mediation, or arbitration. At some organizations, if mediation fails, the process moves to arbitration as a third and final option. Although arbitration is a formal process involving an outsider, it tends to be much faster, simpler, and more private than a lawsuit.

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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.

Employee Assistance Programs

While ADR is effective in dealing with problems related to performance and disputes between people at work, many of the problems that lead an organization to want to terminate an employee involve drug or alcohol abuse. In these cases, the organization’s discipline program should also incorporate an employee assistance program (EAP).

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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- grief, depression and fear while helping them find a new job.

Outplacement Counseling

An employee who has been discharged is likely to feel angry and confused about what to do next. If the person feels that there is nothing to lose and nowhere else to turn, the potential for violence or a lawsuit is greater than most organizations are willing to tolerate. This concern is one reason many organizations provide outplacement counseling. Whatever the reason for downsizing, asking employees to leave is a setback for the employee and for the company. Retaining people who can contribute knowledge and talent is essential to business success.

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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.

Employee Engagement

Some survey results suggest that less than one-third of employees consider themselves as engaged. Still, some companies have managed to sustain and improve engagement levels during the recession by systematically gathering feedback from employees, analyzing their responses, and implementing changes. In these companies, engagement measures are considered as important as customer service or financial data.

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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

Organizations need employees who are fully engaged and committed to their work. Therefore, retaining employees goes beyond preventing them from quitting. The organization needs to prevent a broader negative condition, called job withdrawal.

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Figure 11.4:
Job Withdrawal Process

As shown in Figure 11.4, job dissatisfaction produces job withdrawal. The causes of job dissatisfaction identified in Figure 11.4 fall into

four categories: personal dispositions, tasks and roles, supervisors and co-workers and pay and benefits. Job withdrawal may take the form of:

Behavior change
Physical job withdrawal
Psychological job withdrawal

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Causes of Job Dissatisfaction

Many aspects of people and organizations can cause job dissatisfaction, and managers and HR professionals need to be aware of them because correcting them can increase job satisfaction and prevent job withdrawal. Employees want regular performance feedback from their supervisors and want their ideas to be heard. They also have expectations from seniors, including honest communication and a workplace that enables high performance. Interestingly, employees are more engaged when their supervisors give negative feedback, focused on their weaknesses, than when supervisors give no feedback Ideally, managers should catch and correct job dissatisfaction early, because there is evidence linking changes in satisfaction levels to turnover: when satisfaction is falling, employees are far more likely to quit. Two other personal qualities associated with job satisfaction are negative affectivity and negative self-evaluations. People with negative affectivity experience feelings such as anger, contempt, disgust, guilt, fear, and nervousness more than other people do, at work and away. They tend to focus on the negative aspects of themselves and others and tend to be dissatisfied with their jobs, even after changing employers or occupations. 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, are emotionally stable and tend to experience job satisfaction. people with negative core self-evaluations tend to blame other people for their problems, including their dissatisfying jobs. They are less likely to work toward change; they either do nothing or act aggressively toward the people they blame. Negative affectivity means pervasive low levels of satisfaction with all aspects of life, compared with other people’s feelings.

Military reservists who are sent overseas often experience role conflict among three roles:

soldier

family member

civilian employee

Overseas assignments often intensify role conflicts.

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Behavior changes:

Change the condition

Whistle-blowing

Bring a lawsuit

Lodge complaints

Physical job withdrawal
Psychological withdrawal

Decrease in job involvement

Decrease in organizational commitment

Actions Employees Take When Dissatisfied

The driving force behind job withdrawal is dissatisfaction. Most employers would prefer to avoid lawsuits and whistle-blowing. Keeping employees satisfied is one way to do this.

Behavior change

Change the condition – use the internal system for making complaints or the grievance process Whistle-blowing – going outside the organization to authorities or regulatory agencies describing the actions of their employer
Lawsuits – filing suit against an employer for unfair treatment or discrimination

Physical job withdrawal:

Arriving late
Calling in sick
Requesting a transfer
Leaving the organization

Psychological Withdrawal:

Decrease in job involvement – the degree to which people identify themselves with their jobs.
Decrease in organizational commitment – the degree to which an employee identifies with the organization and is willing to put forth effort on its behalf.

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Office Workers Appreciate Help Balancing Roles and Learning New Skills

Office workers who were asked which aspect of their job contributes most to their satisfaction were almost equally split in picking work-life balance or learning opportunities. This study by OfficeTeam did not offer “meaningful work” as one of the choices. In a separate, international study by Mercer, company representatives said the top three factors that keep their employees engaged are respectful treatment, work-life balance, and the type of work they do.

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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.
Pay and benefits impact job satisfaction, especially pay structure and pay raises.

Job Satisfaction

Organizations want to prevent withdrawal behaviors. To prevent job withdrawal, organizations need to promote job satisfaction. People will be satisfied with their jobs as long as they perceive that their jobs meet their important values. Two other aspects of pay satisfaction influence job satisfaction- satisfaction

with pay structure—the way the organization assigns different pay levels to different levels and job categories and pay raises.

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Figure 11.5:
Increasing Job Satisfaction

As shown in Figure 11.5, organizations can contribute to job satisfaction by addressing the four sources of job dissatisfaction:

Personal dispositions
Job tasks and roles
Supervisors and coworkers

Pay and benefits. Sometimes personal qualities of the employee, such as negative affectivity and negative core self-evaluation, are associated with job dissatisfaction. This linkage suggests employee selection in the first instance plays a role in raising overall levels of employee satisfaction. Interviews should explore employees’ satisfaction with past jobs. If an applicant says he was dissatisfied with his past six jobs, what makes the employer think the person won’t be dissatisfied with the organization’s vacant position? Employers should recognize that dissatisfaction with other facets of life can spill over into the workplace. A worker who is having problems with a family member may attribute some of the negative feelings to the job or organization. When it comes to generating satisfaction, the most important aspect of work is the degree to which it is meaningfully related to workers’ core values.

Figure 11.6
Steps in the Role Analysis Technique

Role analysis technique: A process of formally identifying expectations associated with a role. Because role problems rank just behind job problems in creating job dissatisfaction, some interventions aim directly at role elements. Figure 11.6 shows the steps involved in the role analysis technique.

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Co-workers and supervisors affect 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.

Job Satisfaction:
Supervisors and Co-workers

When employees are satisfied with their jobs and want to stay, they tend to make ethical decisions to a greater degree than employees who are not satisfied. The satisfied employees also tend to be more cooperative and more inclined to help out their coworkers. Because a supportive environment reduces dissatisfaction, many organizations foster team building both on and off the job (such as with softball or bowling leagues). The idea is that playing together as a team will strengthen ties among group members and develop relationships in which individuals feel supported by one another.

Co-worker relationships can contribute to job satisfaction, and organizations therefore try to provide opportunities to build positive relationships.

Ask students: “Would a strong sense of teamwork and friendship help you enjoy your work more?”

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Serena feels her job processing payroll checks is boring and uninteresting. Which intervention would be most appropriate to retain Serena?

Communicating the companies values

Increasing her pay

Expanding her job

Hiring someone she can chat with during the day

Test Your Knowledge

Serena feels her job processing payroll checks is boring and uninteresting. Which intervention would be most appropriate to retain Serena?

Communicating the companies values
Increasing her pay
Expanding her job
Hiring someone she can chat with during the day

Answer: C, students answers may vary and can generate a discussion of processes used to ascertain the root cause of problems.

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Employers can better retain employees if they are aware of satisfaction levels, so they can make changes if employees are dissatisfied.
Usual way to measure job satisfaction is to survey.
A systematic, ongoing program of employee surveys should be part of the organization’s HR strategy to monitor trends and prevent voluntary turnover.

Monitoring Job Satisfaction

More organizations are analyzing basic HR data to look for patterns in employee retention and turnover. The results may confirm expectations or generate surprises that merit further investigation. Either way, they can help HR departments and managers determine which efforts deliver the best return.

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Figure 11.7:
Example of Job Descriptive Index (JDI)

A widely used measure of job satisfaction is the Job Descriptive Index (JDI). Figure 11.7 shows several items from the JDI scale.

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Figure 11.8:
Example of a Simplified, Nonverbal
Measure of Job Satisfaction

Some job satisfaction scales avoid language altogether, relying on pictures. The faces scale in Figure 11.8 is an example of this type of measure.The faces scale in Figure 11.8 is an example of this type of measure. Other scales exist for measuring more specific aspects of satisfaction. For example, the Pay Satisfaction Questionnaire (PSQ) measures satisfaction with specific aspects of pay, such as pay levels, structure, and raises.

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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.
When several exiting employees give similar reasons for leaving, management should consider whether this indicates a need for change.

Exit Interview

In spite of surveys and other efforts to retain employees, some employees inevitably will leave the organization. This presents another opportunity to gather information for retaining employees: the exit interview.

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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.

Summary

Both are costly because of the need to recruit, hire, and train replacements.
Involuntary turnover can also result in lawsuits and even violence.

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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.

Summary

Discipline should respect individual employees’ privacy. Searches and surveillance should be for a legitimate business purpose, and employees should know about and consent to them. Reasons behind disciplinary actions should be shared only with those who need to know them. When termination is part of a plant closing, employees should receive the legally required notice, if applicable.

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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.

Summary

Usually, consequences range from a spoken warning through written warnings, suspension, and termination. These actions should be documented in writing. Organizations also may resolve problems through alternative dispute resolution, including an open-door policy, peer review, mediation, and arbitration. When performance problems seem to result from substance abuse or mental illness, the manager may refer the employee to an employee assistance program. When a manager terminates an employee or encourages an employee to leave, outplacement counseling may smooth the process.

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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.

Summary

Job withdrawal may include behavior change, as employees try to bring about changes in policy and personnel through inside action or through whistle-blowing or lawsuits. Physical job withdrawal may range from tardiness and absenteeism to job transfer or leaving the organization altogether. Especially when employees cannot find another job, they may psychologically withdraw by displaying low levels of job involvement. and organizational commitment.