Kinh tế học - Chapter 17: Employee stakeholders and workplace issues

© 2015 Cengage Learning1Chapter 17Employee Stakeholders and Workplace Issues© 2015 Cengage Learning2Learning OutcomesIdentify the major challenges occurring in the workforce today.Outline the characteristics of the new social contract between employers and employees.Explain the employee rights movement and its underlying principles.Describe and discuss the employment-at-will doctrine and its role in the employee rights.Discuss the right to due process and fair treatment.Describe the actions companies are taking to make the workplace friendlier.Elaborate on the freedom-of-speech issue and whistle-blowing.© 2015 Cengage Learning3Chapter OutlineThe New Social ContractThe Employee Rights MovementThe Right Not to Be Fired Without CauseThe Right to Due Process and Fair TreatmentFreedom of Speech in the WorkplaceSummaryKey Terms© 2015 Cengage Learning4Employee Stakeholders and Workplace IssuesThe social contract between organizations and workers continues to evolve, and is different from contracts of the past. Three employee rights issues- Right not to be fired without good causeRight to due process and fair treatmentRight to freedom of speech in the workplace© 2015 Cengage Learning5The New Social ContractToday’s worker has held 11.3 jobs on average. All realize their jobs are vulnerable, and they receive a smaller portion of the economic pie. They are more mobile, less loyal, and more diverse. They seek:Competitive payBenefitsOpportunities for professional growth© 2015 Cengage Learning6The Changing Social ContractOld Social ContractNew Social ContractJob securityFew tenure arrangementsLife careers with one employerFew life careers; changes commonStable positions/job assignmentsTemporary project assignmentsLoyalty to employerLoyalty to selfPaternalismRelationships far less familialEmployee sense of entitlementPersonal responsibility for one’s job futureStable, rising incomePay for value addedJob-related skill trainingEmployees in charge of own educationFocus on individual accomplishmentsFocus on team building and projects© 2015 Cengage Learning7The Employee Rights MovementPublic sector employees have constitutional protections. We focus on employees in the private sector, not subject to constitutional control because of the concept of private property. Individuals and private organizations are free to use their property as they desire.Although labor unions have been successful in improving pay, benefits and working conditions, they have not been as active in pursuing civil liberties. © 2015 Cengage Learning8The Meaning of Employee RightsWe approach the topic from the perspective of the Principle of Rights, justifiable claims that utility cannot override.We will also cover legal rights.Sources of employee rights -Statutory rights Collective bargaining rightsEnterprise rights© 2015 Cengage Learning93 Models of Management MoralityMoral management -Employees are viewed as a human resource that must be treated with dignity and respect.Amoral management -Employees are treated as the law requires.Immoral management -Employees are viewed as factors ofproduction to be used, exploited, and manipulated.© 2015 Cengage Learning10The Right Not to Be Fired Without CauseGood cause norm -The belief that employees should only be discharged for good reasons.This belief prevails in the United States today, though it conflicts with reality.Employment-at-will doctrine -The reality is that the relationship between employer and employee is voluntary and can be terminated at any time by either party.The central issue is changing views of the employment at will doctrine.© 2015 Cengage Learning11Legal Challenges to Employment-at-WillPublic policy exceptions-Protects employees from being fired for refusal to commit crimes or for utilizing legal rights.Implied contract exception-Protects employees who they believe have contracts or implied contracts.Good faith principle-Employers may lose lawsuits to former employees if they cannot show that employees had opportunities to improve their performance before termination.© 2015 Cengage Learning12Moral and Managerial Objections to Employment-at-WillEmployees deserve respectful treatment.Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility.Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration.© 2015 Cengage Learning13Dismissing an Employee With CareFire employees in a private space.Be mindful of employees’ logistics.Preserve the employee’s dignity.Choreograph the notification in advance.Use transparent criteria for layoffs.© 2015 Cengage Learning14What NOT to do When Terminating an EmployeeDon’t fire on a Friday.Don’t say that downsizing is finished.Don’t terminate an employee via e-mail.Stick to the topic and avoid platitudes.Don’t rush through the meeting.© 2015 Cengage Learning15The Right to Due Processand Fair TreatmentDue Process - The right to receive an impartial review of one’s complaints and to be dealt with fairly. The right of employees to have decisions that adversely affect them be reviewed by objective and impartial third parties.© 2015 Cengage Learning16The Requirements of a Due Process SystemIt must be a procedure; it must follow rules; it must not be arbitrary.It must be visible and well-known so that potential violators and victims are aware of it.It must be predictably effective.It must be institutionalized – a relatively permanent fixture in the organization.It must be perceived as equitable.It must be easy to use.It must apply to all employees.© 2015 Cengage Learning17Alternative Dispute Resolution© 2015 Cengage Learning18Concerns with the Open-Door Policy -The process is closed.One person is reviewing what happened.There is a tendency for a manager to support another manager’s decision.A hearing procedure helps open up the process because employees can elect representation.© 2015 Cengage Learning19The OmbudsmanAn ombudsman is neutral and promises confidentiality.An ombudsman can handle employee concerns in a way that keeps the problem from getting out of hand. The procedure has been used in Sweden since 1809 to curb abuses by government against individuals.© 2015 Cengage Learning20Factors for a Successful Peer Review PanelBe sure that people involved in the process are respected members of the organization.Committee members should be elected rather than appointed.They must receive training in dispute resolution, discrimination, fairness, legalities, and ethics for everyone involved.Representatives of both employees and management should be involved in decision making.© 2015 Cengage Learning21The Future of ADRThe use of ADR is growing because of time and cost savings over litigation. But some employers require new hires to sign contracts waiving their right to sue their employer in favor of mandatory arbitration. Arbitration -A neutral party resolves a dispute between two or more parties and the resolution is binding. Mandatory arbitrationThe parties must agree to arbitration prior to any dispute occurring, and be bound.© 2015 Cengage Learning22Freedom of Speech in the WorkplaceWhile the U.S. Constitution protects an individual's speech from government interference, this does not apply to an employer, and some forbid conflicting political views.Whistle-Blower -An organization member who discloses illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action.© 2015 Cengage Learning23Whistle-BlowingKey Elements in the Process - The whistle-blowerThe act or complaintThe party to whom the complaint is madeThe organization against which the complaint is made© 2015 Cengage Learning24Two Views of Employee Responsibility in a Whistle-Blowing Situation25Corporate EmployerLoyaltyObedienceConfidentialityEmployeeTraditional(Has certain rights)PublicEmployeeCorporate EmployerWhistle blowingResponsibilityResponsibility(Has certain rights)(Has certain rights)Emerging© 2015 Cengage LearningA Checklist to Follow Before Blowing the WhistleIs there any alternative to blowing the whistle?Does the proposed disclosure advance public interest rather than personal or political gain?Have you thought about the outcomes of blowing the whistle for yourself and your family?Have you identified the sources of support, both inside and outside the organization, on which you can rely during the process?Do you have enough evidence to support your claim?Have you identified and copied all supporting records before drawing suspicion to your concerns?© 2015 Cengage Learning26Consequences of Whistle-Blowing4800 employees reported retaliation - 64% - exclusion from decisions & work activities62% - cold shoulder from coworkers62% - verbal abuse from management56% - almost lost job55% - not given promotion or raise51% - verbal abuse from coworkers46% - cut in hours or pay44% - relocated or reassigned© 2015 Cengage Learning27Government Protections for Whistle-Blowers1978 Civil Service Reform ActSarbanes-Oxley whistle-blower protectionsMichigan Whistle-Blowers Protection Act of 1981False Claims Act© 2015 Cengage Learning28Management Responsiveness to Whistle-BlowingWhistle-blowing occurs after normal, less dramatic channels of communication have failed. To encourage open communications - Managers must be clear that they invite and accept suggestions.Managers must refute assumptions and organizational myths that discourage communication.Managers should tailor rewards so that employees share more directly in cost savings or sales increases from ideas they offer.© 2015 Cengage Learning29Alternative Dispute Resolution (ADR)Civil Service Reform Act of 1978collective bargainingdue processemployee Rights employment-at-will doctrineenterprise rightsfalse Claims Actgood cause normgood faith principlehearing procedureimplied contract exceptionmandatory arbitrationMichigan Whistle-Blowers Protection Act of 1981ombudsmanopen-door policyoutplacementopen-door policypeer review panelprivate propertypublic policy exceptionsocial contractstatutory rightswhistle-blower© 2015 Cengage Learning30Key Terms