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Select one of the following case studies (located in your textbook): 

  • Case 8-1: Not Spilling the Beans at Jelly Belly: Developing a More Accurate Performance Appraisal System.  
  • Case 8-2: Amazon.Com: Selling Employee Performance With Organization and Leadership Review. 
  • Case 9-1: Balancing Rights and Privileges.
  • Case 9-2: Off-Duty Misconduct:

Then complete the following: 

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  • Add your opinion about the choices and decisions being made—if this was your company, would you make this choice?
  • What would you do differently?

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Rights and Employee Management

Chapter 9

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Rights and Employee Management

Before organizations can develop, discipline, or terminate employees and develop high-performance teams, HR must understand employee and management rights.

To ensure they don’t violate those rights or develop or discipline employees unethically or illegally.

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Employee Rights

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Rights and privileges

Privileges are things that individuals are allowed to do, based on asking permission from an authority.

Rights are things a person in society is allowed to do without any permission required from an authority.

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Rights and Privileges

Privileges

Grants individuals are allowed to do based on permission from authorities.

Rights

Factors individuals are allowed to do without permission required from authorities.

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Employee Rights: Right of Free Consent

Employees’ right to know what they’re asked to do and consequences of that action.

Employers must ensure employees voluntarily agree to do a particular job or task.

Employers who force employees against their will or manipulate them violate employees’ right to free consent.

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Is the employees’ right to know what they’re being asked to do and the consequences of that action.

Employers must ensure that employees voluntarily agree to do a particular job or task.

Employers who force employees to do something against their will, or manipulate them to do something they would not do if they knew all of the circumstances, violate their right to free consent.

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Types of Rights

Right to Due Process

When employers contemplate disciplinary action, employees have a right to know what they are accused of, any evidence or proof, and ability to tell their side. Due process avoids false accusations.

Right to Life and Safety

Employees’ right to be protected from harm to the best of employers’ ability.

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Types of Rights

Right of Freedom of Conscience (Limited)

Employees should not be asked to do something that violates their values and beliefs as long as these reflect societal norms.

Right to Privacy (Limited)

Protects people from unreasonable or unwarranted intrusions into their personal affairs unless employers feel they might pose a hazard to others.

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Types of Rights

Right to Free Speech (Limited)

The First Amendment applies to government agencies limiting speech.

In the workplace, individual freedom of speech is limited.

Yet, individuals should still express concerns or discontent with policies without fear of harm.

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The first amendment only applies to government agencies limiting speech; in the workplace, individual freedom of speech is limited. Free speech is more challenging to control in a world of rampant social media.

But within organizations, individuals should still be free to express concerns or discontent with organizational policies or to blow the whistle without fear of harm.

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Management Rights

Based on necessity for organization to protect itself and its employees from persons who may intentionally or unintentionally harm.

Managers must weigh individuals’ rights against potential harm done to organization by allowing individuals to express those rights.

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Are based on the necessity for the organization to protect itself and its employees from persons that might do them intentional or unintentional harm.

Managers have to weigh the individual’s rights against the potential harm that could be done to the organization by allowing the individual to express those rights.

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Management Rights

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Employment-at-will–allows the company or employee to break their work relationship at any point in time, with or without any particular reason, as long as in doing so, no law is violated.

If a firm states that employment is “at-will,” the employer does not have to have cause (reasons) to terminate an employment relationship with an employee.

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Management Rights

Codes of conduct

Employers have a right to create a code of employee conduct. It must identify firm’s ethics and values and serve as a guide to individual action.

Workplace monitoring

Employers have a right to monitor employees to ensure they act legally and ethically. In the world of social media, workplace monitoring requires constant vigilance.

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Management Rights

Employment-at-will

Allows company or employee to break work relationship at any time with or without reason as long as laws are not violated.

If a firm states employment is “at-will,” employer does not need cause (reason) to terminate an employee.

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Employment-at-will–allows the company or employee to break their work relationship at any point in time, with or without any particular reason, as long as in doing so, no law is violated.

If a firm states that employment is “at-will,” the employer does not have to have cause (reasons) to terminate an employment relationship with an employee.

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Management Rights

Employers cannot terminate employees for:

Filing a legitimate worker’s compensation claim.

Refusing to lobby for a particular political candidate at boss’s request. Refusing to violate a professional code of ethics.

If there is an implied contract between employer and employee.

Employer does something that will benefit the firm, but will harm employee (“lack of good faith and fair dealing”).

Employers should include disclaimers in handbooks and applications that state employment-at-will policies.

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Employment-at-will–public policy exceptions

Employers cannot terminate employees for:

Filing a legitimate worker’s compensation claim.

Refusing to lobby for a particular political candidate at the boss’s request. The CEO Who Built Himself America’s Largest House Just Threatened to Fire His Employees if Obama’s Elected http://gawker.com/5950189/the-ceo-who-built-himself-americas-largest-house-just-threatened-to-fire-his-employees-if-obamas-elected

Refusing to violate a professional code of ethics.

Employment-at-will–other exceptions

If there is an implied contract between the employer and employee.

The employer does something that will benefit the firm significantly but will harm the individual employee (“lack of good faith and fair dealing”). Employers should include carefully worded disclaimers in handbooks and applications that state employment-at-will policies.

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Management Rights

Orientation (probationary) periods

Give firms time to assess new employees and their capabilities before integrating them into organization (typically 60 – 90 days).

Drug testing

Generally for workplace safety, but testing must be done in either a universal or random form.

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Coaching

Motivational feedback to maintain and improve performance.

Determining Corrective Coaching Action

Offer training when ability holds back performance.

Offer motivational coaching when motivation is lacking.

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Coaching fine-tunes performance; counseling and disciplining deal with employees who don’t perform to standards or violate a code of conduct.

Management counseling–giving employees feedback so they realize a problem is affecting their job performance, and referring employees with problems that cannot be managed within the work structure to an employee assistance program.

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Coaching Model

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Describe current performance

Describe desired performance

Get a commitment to change

Follow up

Counseling

Counseling and disciplining deal with employees who don’t perform to standards or violate a code of conduct.

Management counseling

Helping employees understand what is affecting performance or referring employees to an employee assistance program.

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The major objective of coaching, counseling, and discipline is to change behavior.

Coaching generally should be the first step in dealing with problem employees, but if they are unwilling or unable to change, or a rule has been broken, discipline is necessary.

Secondary objectives–to let employees know action will be taken when standing plans or performance requirements are not met; and to maintain authority when challenged.

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Types of Problem Employees

Employees who lack ability

Employees who lack motivation

Employees who violate company policies or codes of conduct

Employees with personal problems

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Disciplining

Major objective of coaching, counseling, and discipline is to change behavior.

Coaching should be the first step in dealing with problem employees, but if they are unwilling or unable to change or a rule has been broken, discipline is necessary.

Secondary objectives maintain authority when challenged and let employees know action will be taken when standing plans or performance requirements are not met.

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Disciplining

Corrective action to get employees to meet standards and code of conduct.

Common offenses include theft, harassment, verbal or substance abuse, and safety violations.

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Just Cause

Seven tests of fairness and due process in disciplinary actions (that originated in union grievance arbitrations).

Did the employee receive fair warning?

Is the rule reasonably related to the orderly, efficient, and safe operation of the company’s business and expected employee performance?

Did the employer validate the alleged infraction prior to administering discipline?

Was investigation conducted fairly and objectively?

Was there substantial evidence or proof that employee was guilty as charged?

Has the company applied its rules, orders, and penalties even-handedly without discrimination?

Was degree of discipline reasonably related to seriousness of employee’s proven offense and record of employee’s service with the company?

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Just cause–seven tests for fairness and due process in disciplinary actions (that originated in union grievance arbitrations).

  1. Did the employee receive fair warning?
  2. Is the rule reasonably related to the orderly, efficient, and safe operation of the company’s business and expected employee performance?
  3. Did the employer validate the alleged infraction prior to administering discipline?
  4. Was the investigation conducted fairly and objectively?
  5. Was there substantial evidence or proof that the employee was guilty as charged?
  6. Has the company applied its rules, orders, and penalties even-handedly, without discrimination?
  7. Was the degree of discipline reasonably related to the seriousness of the employee’s proven offense and the record of the employee’s service with the company?

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Guidelines for Effective Discipline

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Progressive Discipline

Employer provides employee with opportunities to correct poor behavior before termination.

Steps:

Informal coaching talk

Oral warning

Written warning

Suspension

Termination

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The Discipline Model

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Refer to past feedback

Ask why the undesired behavior was used

Give the discipline

Get a commitment to change and develop a plan

Summarize and state the follow-up

Termination

Necessary when an employee cannot be made into a productive member of the workforce.

Causes for dismissal immediately following investigation

Gross negligence–a serious failure to exercise care in the work environment.

Serious misconduct–intentional behavior can potentially cause great harm to another or the firm.

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Termination

Termination of Non-Managerial Employees When Offenses are not Gross Negligence or Serious Misconduct

Offenses such as failure to perform job satisfactorily even after training or continual disregard of rules or policies.

After making the initial determination, subject the evidence to a review by another manager, legal counsel, or HR representative to ensure the decision is objective.

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Termination of Managerial Employees

Follow just cause procedures and consider:

If manager has a contract with the firm, the contract typically identifies conditions under which the manager may be terminated.

Managers are usually given option to resign rather than face termination.

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Leadership

Influencing employees to work toward achievement of organizational objectives.

Leaders have to consider contingency factors that interfere with relationship between people and goals.

For example, leader’s personality and style; follower ability and willingness; complexity of the situation; macro-environmental external factors; organizational culture and structure.

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Is the process of influencing employees to work toward the achievement of organizational objectives?

Leaders have to take into account contingency factors–factors that interfere with the relationship between the people and the goal.

For example, the leader’s personality and style; follower ability and willingness; complexity of the situation; macro-environmental external factors; organizational culture and structure.

Leadership is a dyadic relationship.

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Situational Management

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Management is typically understood as taking place in a situation, so leaders need to change their behavior to meet the situational characteristics. This is often called contingency leadership or situational leadership. M.A. Hogg, D. Van Knippenberg, D.E. Rast, “Intergroup Leadership in Organizations: Leading Across Group and Organizational Boundaries,” Academy of Management Review (2012), 37(2), pp. 232–255.

H.R. Greve, “Microfoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action,” Academy of Management Perspectives (2013), 27(2), pp. 103–119.

A.M. Grant, S.V. Patil, “Challenging the Norm of Self-Interest: Minority Influence and Transitions to Helping Norms in Work Units,” Academy of Management Review (2012), 37(4), pp. 547–568.

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Building Effective Work Teams

Team building is a widely used Organizational Development (OD) technique because intra- and inter-team effectiveness affect the entire organization.

Typical team-building goals:

Clarify team objectives and members’ responsibilities.

Identify why team isn’t accomplishing objectives.

Develop problem-solving, decision-making, objective-setting, and planning skills.

Develop relationships based on trust and understanding of group members.

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Although firms are relying on team creativity to innovate change, some US workers do not like having to work in teams due to the individualistic nature of American culture. But today, we usually don’t have any choice, either as leaders or as followers, about whether or not we work in teams. The major reason is that in most cases, you can’t succeed without an effective team effort, and organizations are using teams to create competitive advantage. Joshi, A., & Knight, A. P. (2015). Who defers to whom and why? Dual pathways linking demographic differences and dyadic deference to team effectiveness. Academy of Management Journal, 58, 59–84.

Greenwood, R., & Miller, D. (2010). Tackling design anew: Getting back to the heart of organizational theory. Academy of Management Perspectives, 24, 78–84.

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Stages of the Change Process

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People go through four distinct stages when facing change, so we need to manage change through each stage. The four stages of the change process are denial, resistance, exploration, and commitment. They are presented in Exhibit 9-5 and are described using HP as an example below. Notice that the stages in Exhibit 9-5 are laid out in a circular formation because change is an ongoing process, not a linear one. People can regress, as the arrows show.

  1. Denial. Changes are often difficult to understand or accept. So when people first hear that change is coming, they may deny that it will affect them.
  2. Resistance. Once people get over the initial shock and realize that change is going to be a reality, they often resist the change. This stage is so important that in the next subsection, we will present seven ways to help overcome resistance to change.
  3. Exploration. When the change begins to be implemented, employees explore the change, often through training–and ideally, they begin to better understand how the change will affect them.
  4. Commitment. Through exploration, employees determine their level of commitment to making the change a success. Commitment is necessary to implement the change, but some employees will continue to resist the change.

Monin, P., Noorderhaven, N., Vaara, E., & Kroon, D. (2013). Giving sense to and making sense of justice in postmerger integration. Academy of Management Journal, 56, 256–284.

Shin, J. , Taylor, M. S., & Seo, M. G. (2012). Resources for change: The relationships of organizational inducements and psychological resilience to employees’ attitudes and behaviors toward organizational change. Academy of Management Journal, 55, 727–748.

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Overcoming Resistance to Change

A main challenge in change management.

Seven steps

Develop a positive trust climate for change.

Plan.

State why it’s needed and how it will affect people.

Create a win-win situation.

Involve employees.

Provide support and evaluation.

Create urgency.

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  1. Develop a positive trust climate for change. Develop and maintain good human relations. Make employees realize you have their best interests in mind and develop mutual trust. Constantly look for better ways to do things. Encouraging employees to suggest changes and implementing their ideas are important parts of continuous improvement.
  2. Plan. Implementing changes successfully requires good planning. You need to identify the possible resistance to change and plan how to overcome it. View change from the employees’ position. Set clear objectives so employees know exactly what the change is and how it affects them. The next four steps should be part of your plan.
  3. Clearly state why the change is needed and how it will affect employees. Employees want and need to know why the change is necessary and how it will affect them, both positively and negatively. So you need to communicate clearly what you want to do. Employees need to understand why the new, changed method is more legitimate than the existing method of doing things. Be open and honest with employees. Giving employees the facts as far in advance as possible helps them to overcome fear of the unknown.
  4. Create a win-win situation. We have a desire to win. The goal of human relations is to meet employee needs while achieving departmental and organizational objectives. To overcome resistance to change, be sure to answer the other parties’ unasked question, “What’s in it for me?” When people can see how they benefit, they are more willing to change. If the organization is going to benefit from the change, so should the employees–so provide incentives for change.
  5. Involve employees. To create a win-win situation, involve employees. A commitment to change is usually critical to its successful implementation. Employees who participate in developing changes are more committed to those changes than are employees who have changes dictated to them. To get employee involvement and commitment to change, phrase your own ideas as if they were someone else’s.
  6. Provide support and evaluation. To overcome resistance to change, employees need to know that managers are there to help them cope with the changes. So, relationships matter. Managers need to make the learning process as painless as possible by providing training and other support. To ensure that the change is implemented and that employees don’t regress to old habits, performance appraisals (discussed in the next chapter) need to be tied to successful implementation of the change.
  7. Create urgency. When you decide on a change, you have to move fast. Many people procrastinate on making changes. A feeling of urgency is the primary driver toward taking action. If something is perceived as urgent, it is given a high priority and is often done immediately.

Goldsmith, M. (2009). What got you here won’t get you there: How successful people became even more successful. Academy of Management Perspective, 23, 103–105.

Johnson, S. K., Garrison, L. O., Broome, G. H., Fleenor, J. W., & Steed, J. L. (2012). Go for the goals: Relationships between goal setting and transfer of training following leadership development. Academy of Management Learning & Education, 11, 555–569.

Monin, P., Noorderhaven, N., Vaara, E., & Kroon, D. (2013). Giving sense to and making sense of justice in postmerger integration. Academy of Management Journal, 56, 256–284.

Karlgaard R. (2012, April 23). Energy in 2050: Shell’s peter voser. Forbes, p. 34.

Tost, L. P. (2011). An integrative model of legitimacy judgments. Academy of Management Review, 36, 686–710.

Henisz, W. J. (2011). Leveraging the financial crisis to fulfill the promise of progressive management. Academy of Management Learning & Education, 10, 298–321.

Cuban, M. (2013, April 11). Motivate yourself. Businessweek , online.

Welch, J., & Welch, S. (2009, March 2). How not to succeed in business. Businessweek, p. 74.

Chakravorty, S. S. (2010, January 25). Where process-improvement projects go wrong. The Wall Street Journal, p. R6.

Shin, J., Taylor, M. S., & Seo, M. G. (2012). Resources for change: The relationships of organizational inducements and psychological resilience to employees’ attitudes and behaviors toward organizational change. Academy of Management Journal, 55, 727–748.

Selman, M. (2013, April 11). Manipulate creative people. Businessweek, p. 92.

Ford, J. D., Ford, L. W., & D’Amelio, A. (2008). Resistance to change: The rest of the story. Academy of Management Review, 33, 362–377.

Chakravorty, S. S. (2010, January 25). Where process improvement projects go wrong. The Wall Street Journal, p. R6.

Karlgaard, R. (April 23, 2012). Energy in 2050: shell’s peter voser. Forbes, p. 34.

Farber, B. (2009, May). Close the deal with urgency. Entrepreneur, p. 60.

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