Employee Relation
• It is a combination of organizational
culture, HR practice, and individual
perceptions.
• Everything the HR department does
affects employee relations directly or
indirectly.
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Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.
Importance of Employee Relations
Improve
productivity
• Productivity is significantly impacted by
ability and attitude
Implementation of
organizational
strategies
• Goals and strategies are communicated
• Employees provide their commitment
Reduce
employment
costs
• Have concern and interest in employees
• Reduced absenteeism and turnover
Help employees
grow and develop
• Help employees achieve personal goals
• Improved morale, loyalty and productivity
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Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.
Key Dimensions of Employee
Relations
Employee
Communication
Employee
Involvement
Good Employee
Relations
Employee
Rights
Schwind 8th Canadian Edition
Employee
Counselling
Employee
Discipline
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Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.
Employee Communication
Downward communication: is information that
begins at some point in the organization and
proceeds down the organizational hierarchy to
inform or influence other.
In-House publications: Job post must be posted on
bulletin board or online
Information booklet: Employee
handbook with information on
company regulations and
benefit
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Prerecorded message: Developing own TV
program that is viewed by the employees in
company lunchroom or other location.
Electronic communication: using email, blackberry
for communication
Information sharing and open-book management:
providing reports about organization’s economic
performance followed by meetings. Employees are
invited to question management.
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Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.
Employee Communication
Upward communication: consists of
information initiated by people who seek to
inform or influence those higher up in the
organization.
Grapevine: off-the-record
feedback from employees
like grievance issues, job
dissatisfaction, difficulties
with supervisors
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Electronic communication: using email, blackberry for
communication
In-house complaint procedure: formal method of
registering complaint.
written complaint >> investigation >> advise of
results.
Manager-employee meeting: meetings between
managers and groups of employees to discuss
complaints, suggestions, opinions, and questions.
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Suggestion systems: formal method (suggestion
form) of generating evaluating and implementing
employees ideas.
Employee attitude/opinion survey: What do
employees think about the organization? Do they
have any problems? Do they understand the HR
department benefit plan?
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Employee Counselling
Discussion of a problem with an employee and help
the worker cope with the situation
• Counselling Functions
–
–
–
–
–
–
Advice: guiding employees
Reassurance: courage to build up confidence
Communication: initiating upward communication
Release of emotional tension: emotional release
Clarified thinking: help think clearly about problem
Reorientation: reorient personal values and recognize
own limitations
• Employee & Family Assistance Programs (EFAP):
assists employees with personal problem – marital
difficulties, abuse.
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Employee Discipline
Management action to encourage compliance
with the organization’s standards
• Preventive Discipline
– Action taken prior to any offence or violation to
encourage employees to follow the rules
• Corrective Discipline
– Action taken after any offence or violation. This
disciplinary action is typically a penalty
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Employee Discipline
• Due Process
– Following proper rules and procedures for
disciplinary actions and giving employees the
opportunity to respond to allegations
• Progressive Discipline
– The use of stronger and stronger penalties for
repeated offences
• Hot-Stove Rule
– Warning, immediate, consistent, & impersonal
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Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.
Positive Discipline
• Employee acknowledges that a problem
exists
• Employee acknowledges that he or she
must assume responsibility for the
behaviour
• A problem-solving approach is used to
resolve the problem
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Dismissal
Termination of employee
• Wrongful Dismissal
– Dismissal without just cause or reasonable
notice of termination
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• Just Cause for Dismissal
– Dismissal under legal grounds
– Incompetent work performance: inability to
carry out job duties
– Employee misconduct: unfaithful service,
theft, fraud, disobedience
– Business or economic reason: declining
demand, organizational downsizing
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• Constructive
dismissal
- A major change in
the employment
contract that results
in an employee
resigning
- significant change in
job function,
demotion, demand
for an employee’s
resignation, forced
transfer.
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• Reasonable Notice
– When an employer does
not have just cause for
dismissal “reasonable
notice” or compensation in
lieu of notice is required
– Considers employee’s age,
length of service, salary,
occupational status, labour
market conditions
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• The Wallace “Effect”
– Requires good faith and fair
dealing in the termination of
employees
– damages designed to compensate
an employee who was subjected to
“bad faith (unfair) dismissal” tactics
of their employer.
– Two aspects of “Wallace”
damages: 1) the nature of the
employer’s bad faith and 2) the
impact of this conduct on the
employee’s ability to find
alternative employment.
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Employee Rights
Privacy (unnecessary involvement
into the private lives of employees,
employee information security
Employee
Rights
Fair
Treatment (age, race,
gender, religion)
Business Closing or
Restructuring (Layoffs
under Federal legislation)
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Employee Involvement
Employee Involvement Interventions are -
• Self-Directed Work Teams or Groups
– Teams of workers who make decisions without a formal
supervisor
• High Involvement Work Practices
– HR practices are related to organizational performance, higher
productivity and improved financial performance through focus
on employment security, decentralization, high compensation,
extensive training, etc.
• Employee Self-Service
– Reducing the amount of administrative work. Productivity
applications (online retirement plan, health-benefit
management) and strategic applications (online recruitment and
skill management)
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Job Security & Downsizing
• No-Layoff Policies
– Employees who have job security are more
receptive to change and are more likely to be
innovative and “go the extra mile”
• Organizational Downsizing
– Reducing employment to improve efficiency,
productivity, and competitiveness
– Workforce reduction (layoff), work redesign
(examine work process, function,
product/services), systematic change (change in
the culture, attitude, value)
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Retaining Top Performers
• Develop a planned approach to employee
retention
• Become an employer of choice
• Communicate vision and values clearly, frequently
and consistently
• Reward managers for keeping good people
• Use exit interviews to obtain information (why
people are leaving the organization?)
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