Chapter 15: Fair Trade The Foundation of Employee Relations With respect to employee relations, experts generally define

organizational justice in terms of three components: -Distributive justice- fairness of a decision outcome (Did I get an equitable pay raise?) -Procedural justice- fairness of the process used to make a decision -Interactional justice- fairness in interpersonal interactions by treating others with dignity and respect Employee engagement *a positive fulfilling, work-related state of mind characterized by vigour, dedication, and absorption -heightened emotional and intellectual connection that an employee has for their job, organization, that influences the employee to apply additional discretionary effort. -engaged employees feel a vested interest in the companys success -Drivers of engagement (p416) -Top drivers of attraction, retention, and engagement (Fig 15.1) -Towers Perrin study found that only 21% of employees around the world are highly engaged and 38% are highly unengaged = engagement gap 1. Employees need their senior leaders to demonstrate inspiration, vision, and commitment 2. Employees have a strong desire to learn and grow (learning and development programs) 3. Employees want to work for a company with a good reputation, which is seen as a leader, and which strives for excellence -engagement is good for the company and the employee -strong correlation to performance outcomes, loyalty, revenue and profit margins -fulfilling basic human need to be connected to worthwhile endeavours and make a significant contribution. Effective Employee Communication *an engaged employee is an informed employee who feels valued and critical to success. -face-to-face important -not just facts -employee suggestion programs -employees can receive cash rewards depending on the savings realized by implementing the suggestion -let management continually monitor employees feelings and concerns -less likely small problems will become large ones

-employee opinion surveys -use questionnaires to ask for employees opinions about the company, management, and work life -communication from management -in order to increase employee engagement, many firms give employees extensive data on the performance of and the prospects for their operations -newsletters, verbal presentations, videos, emails, intranets Respecting Employee Privacy *balance employee privacy rights with their need to monitor use of technologyrelated activities in the workplace -employers want to maintain the ability to effectively manage their employees and prevent liability to the company -they want to eliminate time wastage and abuse of company resources (personal use of internet, email, etc) -PIPEDA (personal information protection and electronic documents act) -governs the collection and use of personal info across Canada -any info beyond name, title, business address, and phone number is regarded as personal and private -video surveillance -to prevent theft, vandalism, and to monitor productivity -employees must be aware of surveillance -courts typically assess whether the surveillance was reasonable and whether their was reasonable alternative available. Generally, they have decided that video surveillance is not reasonable Preserving Dignity in the Retirement Process -by 2025, more than 20% of the Canadian population will be over 65 -the average age of retirement has dropped from 65 in 1979 to 61 in 2005 -with labour shortages approaching and baby boomers retire it is expected that this trend will reverse as organizations promote later retirement as a key strategy for dealing with the labour shortage -pre-retirement counseling: provided to employees some months before retirement, which covers such matters as benefits advice, second careers, etc. -the Future of Retirement: -women are more likely to take early retirement for lifestyle reasons and they find the psychological transition to retirement easier than men do. They are also more likely to seek out new experiences and challenges after retirement -joint retirement (both spouses)- financial problems. Maintaining a standard of living in retirement will be a concern for those without substantial personal savings

-more flexible retirement options (reduced work schedules, part-time) Fair Treatment in Layoffs and Downsizing *important for them and for maintaining employee engagement on the part of the survivors -layoffs- the temporary withdrawal of employment for economic or business reasons (not termination) 1. There is no work available, 2. Management expects the no-work situation to be temporary and probably short term, and 3. Management intends to recall the employees when work is again available. -almost always based on seniority -alternatives to layoffs: -voluntary reduction in pay plan- all employees agree to reductions in pay in order to keep everyone working -employees voluntarily taking time off -agreeing only to take vacation during slow times -work share- reduce workweek by one to three days and employees can claim employment insurance for the time not worked -downsizing- the process of reducing, usually dramatically, the number of people employed by the firm -group termination laws require employer to notify employees in the event that an employer decides to terminate a group of employees -the amount of notice varies, usually ranging from 6-18 weeks (time to find another job) -employees who receive the news face to face feel more freely treated and are more willing to accept the news. Leads to greater perceptions of fair treatment, because they feel like they are being treated with dignity and respect -bad news must be delivered humanely, and must advise people of all support services available to them -for remaining employees, the message should answer three questions 1. Why is this happening? 2. What effect will this decision have? 3. What is the long term view? -if no further reductions are expected, workers can be reassured. If they are expected though, be honest Fairness in Discipline and Dismissals *discipline and termination are the most coming situations where employees perceive that they are treated unfairly. -discipline: intended to correct an employees behavior because a rule or procedure has been violated. -A fair and just disciplinary process is based on three foundations:

1. Rules and regulations (inform employees what is expected) 2. System of progressive penalties (range of penalties) 3. An appeals process (ensures procedural fairness) -dismissal: involuntary termination of an employees employment -must be fair and just cause must exist -the dismissal should occur only after all reasonable steps to rehabilitate the employee have failed -just cause can often be demonstrated in cases of disobedience, incompetence, dishonesty, insubordination, fighting, and persistent absence or lateness -employee misconduct (theft, expense account fraud, abuse of sick leave) is a fundamental violation of the employment relationship and can constitute just cause -the burden of proof rests on the employer -insubordination: willful disregard/disobedience of the bosss authority or legitimate orders; criticizing the boss in public (just cause) -dismissal without just cause: providing reasonable notice -employment contract for a specified period of time -wrongful dismissal- does not comply with a written/implied agreement -for both the employee and employer -a rule of thumb for reasonable notice is about 3-4 weeks per year of service -bad faith damages-employer must be reasonable, honest, forthright, must be fair -punitive damages- pay for harsh treatment and/or for aggravated or mental distress from not being given adequate notice of termination -avoiding wrongful dismissal suites (p. 429) -constructive dismissal -the employer makes unilateral changes in the employment contract that are unacceptable to the employee, even thought the employee has not been formally terminated -ex: demotion, reduction in pay and benefits, forced resignation, forced early retirement, forced transfer, changes in job duties and responsibilities -vendetta effect- where the instances of wrongful dismissal claims became stronger as negative treatment became extreme (so many lawsuits could be avoided if effective HR practices were used) -Termination interview: *an employee is informed of the fact that they have been dismissed. 1. Plan the interview (schedule early in the week, avoid holidays) (be available after the interview incase questions or problems arise) 2. Get to the point

3. Describe the situation (describe situation rather than attacking the person personally) 4. Listen (continue the interview until the person appears to be talking freely and reasonably about the reasons for terminations) -employees may be -hostile and angry (expressing hurt and disappointment) -react in a defensive, bargaining manner (based on fear and disbelief) -formal, controlled manner -stoic faade (masking their shock) -emotional (tears) 5. Review all elements of the severance package 6. Identify the next step (where they should go leaving the interview) Outplacement counseling: a systematic process by which a terminated person is trained and counseled in the techniques of self-appraisal and securing a new position