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Chapter 17
Employee
Stakeholders
and Workplace
Issues
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Learning Outcomes
1. Identify the major challenges occurring in the workforce
today.
2. Outline the characteristics of the new social contract
between employers and employees.
3. Explain the employee rights movement and its underlying
principles.
4. Describe and discuss the employment-at-will doctrine and
its role in the employee rights.
5. Discuss the right to due process and fair treatment.
6. Describe the actions companies are taking to make the
workplace friendlier.
7. Elaborate on the freedom-of-speech issue and whistleblowing.
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Chapter Outline
• The New Social Contract
• The Employee Rights Movement
• The Right Not to Be Fired Without Cause
• The Right to Due Process and Fair Treatment
• Freedom of Speech in the Workplace
• Summary
• Key Terms
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Employee Stakeholders
and Workplace Issues
• The 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 cause
• Right to due process and fair treatment
• Right to freedom of speech in the
workplace
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The New Social Contract
• Today’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 pay
•
Benefits
•
Opportunities for professional growth
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The Changing Social Contract
Old Social Contract
Job security
Life careers with one
employer
Stable positions/job
assignments
Loyalty to employer
Paternalism
Employee sense of
entitlement
Stable, rising income
Job-related skill training
Focus on individual
accomplishments
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New Social Contract
Few tenure arrangements
Few life careers; changes
common
Temporary project
assignments
Loyalty to self
Relationships far less
familial
Personal responsibility for
one’s job future
Pay for value added
Employees in charge of
own education
Focus on team building and
projects
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The Employee Rights Movement
• Public 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.
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The Meaning of Employee Rights
• We 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 1. Statutory rights
2. Collective bargaining rights
3. Enterprise rights
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3 Models of Management Morality
Moral 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 of
production to be used, exploited,
and manipulated.
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The Right Not to Be Fired
Without Cause
Good 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.
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Legal Challenges
to Employment-at-Will
Public 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.
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Moral and Managerial Objections to
Employment-at-Will
1. Employees deserve respectful treatment.
2. Employees do not have the option of being
arbitrary or capricious with employers.
Employers should bear the same
responsibility.
3. Employees are expected to be trustworthy,
loyal and respectful with employers.
Employers should show employees the same
consideration.
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Dismissing an Employee With Care
1. Fire employees in a private space.
2. Be mindful of employees’ logistics.
3. Preserve the employee’s dignity.
4. Choreograph the notification in
advance.
5. Use transparent criteria for layoffs.
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What NOT to do
When Terminating an Employee
1. Don’t fire on a Friday.
2. Don’t say that downsizing is finished.
3. Don’t terminate an employee via email.
4. Stick to the topic and avoid platitudes.
5. Don’t rush through the meeting.
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The Right to Due Process
and Fair Treatment
Due 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.
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The Requirements of a
Due Process System
1.
It must be a procedure; it must follow rules; it
must not be arbitrary.
2.
It must be visible and well-known so that
potential violators and victims are aware of it.
3.
It must be predictably effective.
4.
It must be institutionalized – a relatively
permanent fixture in the organization.
5.
It must be perceived as equitable.
6.
It must be easy to use.
7.
It must apply to all employees.
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Alternative Dispute Resolution
Open-Door Policy
Hearing Procedure
The Ombudsman
The Peer Review Panel
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Concerns 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.
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The Ombudsman
•
An 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.
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Factors for a Successful
Peer Review Panel
1.
Be sure that people involved in the process
are respected members of the organization.
2.
Committee members should be elected rather
than appointed.
3.
They must receive training in dispute
resolution, discrimination, fairness, legalities,
and ethics for everyone involved.
4.
Representatives of both employees and
management should be involved in decision
making.
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The Future of ADR
• The 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 arbitration
•
The parties must agree to arbitration prior to
any dispute occurring, and be bound.
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Freedom of Speech in the Workplace
• While 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.
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Whistle-Blowing
Key Elements in the Process 1.
The whistle-blower
2.
The act or complaint
3.
The party to whom the complaint is made
4.
The organization against which the
complaint is made
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Two Views of Employee Responsibility in a
Whistle-Blowing Situation
Traditional
Corporate
Employer
Employee
Loyalty
Obedience
Confidentiality
Emerging
Corporate
Employer
(Has certain
rights)
Responsibility
Responsibility
Employee
Public
(Has certain
rights)
(Has certain
rights)
Whistle blowing
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A Checklist to Follow
Before Blowing the Whistle
1. Is there any alternative to blowing the whistle?
2. Does the proposed disclosure advance public interest
rather than personal or political gain?
3. Have you thought about the outcomes of blowing
the whistle for yourself and your family?
4. Have you identified the sources of support, both
inside and outside the organization, on which you
can rely during the process?
5. Do you have enough evidence to support your claim?
6. Have you identified and copied all supporting records
before drawing suspicion to your concerns?
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Consequences of Whistle-Blowing
4800 employees reported retaliation -
64% - exclusion from decisions & work
activities
62% - cold shoulder from coworkers
62% - verbal abuse from management
56% - almost lost job
55% - not given promotion or raise
51% - verbal abuse from coworkers
46% - cut in hours or pay
44% - relocated or reassigned
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Government Protections
for Whistle-Blowers
• 1978 Civil Service Reform Act
• Sarbanes-Oxley whistle-blower protections
• Michigan Whistle-Blowers Protection Act of
1981
• False Claims Act
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Management Responsiveness
to Whistle-Blowing
Whistle-blowing occurs after normal, less dramatic
channels of communication have failed. To
encourage open communications 1. Managers must be clear that they invite and
accept suggestions.
2. Managers must refute assumptions and
organizational myths that discourage
communication.
3. Managers should tailor rewards so that
employees share more directly in cost savings
or sales increases from ideas they offer.
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Key Terms
• Alternative Dispute
Resolution (ADR)
• Civil Service Reform Act of
1978
• collective bargaining
• due process
• employee Rights
• employment-at-will
doctrine
• enterprise rights
• false Claims Act
• good cause norm
• good faith principle
• hearing procedure
• implied contract exception
• mandatory arbitration
• Michigan Whistle-Blowers
Protection Act of 1981
• ombudsman
• open-door policy
• outplacement
• open-door policy
• peer review panel
• private property
• public policy exception
• social contract
• statutory rights
• whistle-blower
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