Chapter 6: Human Resource Decision - Paying a fee to a leasing

Dealing with increased demand for employees, company to provide a pool of

Making in Organization
organizations may offer employees who are available
1. Overtime on a temporary basis
Ethics and Human Resource Management - Hours worked above the normal - Employees are:
Ethics 40-hour workweek, for which a. Required to handle most
- Definition: Individual’s beliefs about what is there is a pay premium. of the organization’s
right and wrong and what is good and bad - Fair Labor Standards Act work needs in specific
- Formed by the societal context in which stipulates compensation at a areas
people and organizations function rate for one and a half times the b. Temporarily available
- May or may not coincide with the law normal hourly rate and cost more
- Business ethics is complicated in the global - Unionized organizations have c. More likely to be less
environment of business contracts that specify decision committed and attached
➢ Different countries and different rules to be followed to the firm
cultures have different values and - Disadvantage: 4. Part-time workers
norms a. Could lead to increased - Individuals who are regularly
Rightsizing fatigue and anxiety; expected to work less than 40
- Definition: Monitoring and adjusting the misconceptions and hours a week
composition of the organization’s workforce to jealousy - Usually do not receive benefits
its optimal size. 2. Temporary employees - Provide scheduling flexibility to
- Managing the workforce size includes: - Hiring someone for a specific the organization that hires them
1. Layoffs or early-retirement programs period of time Dealing with a Declining Need for
2. Retention programs - Advantage Employees
3. Using temporary workers as a bridge a. Paid at lower late 1. Cutting back on the contingent workforce
between the current state of affairs and b. Organizations can and retaining only permanent members
growth or reduction terminate their work - Works best in cyclical industries
- Organizations must ensure having the “right relationship as work 2. Early retirement and natural attrition
people”; IN ANY CASE must target the demands mandate - Provide incentives for other employees
specific types of employees who are to: - Disadvantage: to retire early
1. Retire a. Less productive as 3. Plans must be voluntary
2. Retain permanent full-time - Failure to do so could elicit legal
3. Part-time (Contractual) 3. Leased employees actions
 ➢ Extent to which a - Decision rules to conform to personal
Strategies for Layoffs person is treated with or prevailing standards of ethics and
- Layoffs lead some employees to dignity when told that he morality.
1. Sue the organization for wrongful is to be terminated; 7. Representativeness
termination explained very well; how - Opinions of various groups affected by
2. React aggressively or violently toward and why the decision have been considered in
those perceived responsible b. Informational the decision.
3. Develop negative feelings and manifest ➢ Giving information as to
negative comments to others how far the rules were
- Critical: Employee’s perception of the justice applied
involved in the layoff process is a critical
determinant of his/her reaction Effectiveness of Downsizing
Critical Dimensions of Procedural Justice - Not effective: according to most studies
1. Voice - Strategy preferred by stockholders
Types of Justice Related to Layoff - The perception that the person had ➢ Downsizing results in negative effects
1. Distributive Justice some control over the outcome or on stock prices and other financial
- Perceptions that the outcomes a some voice in the decision. indexes
person faces are fair when compared 2. Consistency - Survivor syndrome
to the outcomes faced by others - Rules were applied the same way to ➢ Existing employees’ morale and
- Expectancy theory; Equity theory everyone commitment drop dramatically; worried
2. Procedural Justice 3. Free from Bias that they will be next
- Perceptions that the process used to - Person applying the rule had no vested - Alternatives to layoffs may result in job loss
determine the outcomes were fair interest in the outcome of the decision a. Organization must ensure that layoff
a. Employee Manual 4. Information Accuracy strategy is reasonable; decision based
b. Based on performance rating, - Information used to make the decision on performance rating
scales, ratings was accurate and complete b. Include plan for callback in case
3. Interactional Justice 5. Possibility of Correction demand increases
- Quality of the interpersonal treatment - Mechanisms exist to correct flawed or c. Large scale layoffs it is necessary to
people receive when a decision is inaccurate decisions announce
implemented 6. Ethicality
a. Interpersonal Managing Involuntary Turnover
Involuntary Turnover
 - Definition: Terminating employees whose 1. Verbal warnings - HR analytics plays an important role (studying
services are no longer desired 2. Written warnings and keeping committed employees through
- Represents a failure in the HR system 3. Suspension surveys/evaluation)
- Managers should always start with an effort to 4. Termination - Regular employee satisfaction survey and exit
rectify the problem before termination interviews provide valuable information
Employment at Will
- Definition: Employer can terminate any Model of Turnover Process
employee, at any time, for any reason, or for 1. Job Dissatisfaction
Employee assistance programs (EAPs) no reason at all ➢ Causes of Job dissatisfaction
- Help employees and reduce the costs ➢ Key to successful termination is 2. Thinking about leaving
associated with lost workdays and poor documentation 3. Looking for alternatives
productivity - Exceptions 4. Intention to quit
1. Racially motivated ➢ Compare alternatives
Progressive Discipline 2. Violate law 5. Actual turnover
- Designed to try to improve performance 3. Discrimination based on gender
through the use of punishment and discipline 4. Employee has a contractual right to The Meaning of Job Dissatisfaction
Punishment keep job (agreement permanence) Job Dissatisfaction
- Refers to following unacceptable behavior with unless violation - Definition: Feelings of being unhappy with
some type of negative consequence 5. Employee’s right of due process has one’s job
Discipline been violated - Major cause of voluntary turnover
- Refers to systems of rules and procedures for 6. Public policy exception (employee is - increasing job satisfaction is complicated
how and when punishment is administered discharged for refusing to commit a ➢ Economy and labor market play a role
and how severe it should be crime) - Causes:
- Goal of Disciplinary Programs 7. A breach of good faith exception (have 1. Nature of work
1. Convince the employee to stop the to give sales commission) 2. Pay and benefit
ineffective or undesired behavior and - Some firms use positive discipline 3. Supervisors and co-workers
engage in more accepted and desired ➢ Emphasizes positive changes instead Job Embeddedness
behavior of punishment - the collection of forces that influence
Progressive Disciplinary Plans employee retention.
- Severity of punishment increases over time or Employee Retention - You know you should leave but you opt to stay
across the problem - Definition: Ways of reducing the voluntary at your job
- Steps involved include: turnover of desired employees
 1. Job enrichment
Effects of Job Dissatisfaction - Making work meaningful and giving
1. Organization Commitment more autonomy and opportunity to use
- Degree to which an employee identifies skills
with an organization and is willing to 2. Realistic job previews
exert effort on behalf of the - Pre-employment previews that provide
organization accurate and realistic information to the
2. Organizational citizenship behaviors job applicant
(OCBs) 3. Stock options
- Employee behaviors that are beneficial - Rights given to employees to purchase
to the organization but are not formally a certain number of shares of stock at
required as part of an employee’s job a given price

Measuring and Monitoring Job Satisfaction Managing HR during Mergers and Acquisitions
- How do organizations monitor job - When a company has declined or is about to
satisfaction: be bankrupt
1. Attitude surveys - to learn about the - Problems include:
views and opinions of their employees 1. Employees are concerned with job
on issues pertaining to the company security
and their role 2. Mergers and acquisition threaten a
a. Job descriptive index (JDI) - worker’s self-identity and core beliefs
Assesses satisfaction with - What should HR do?
specific job aspects 1. HR managers can serve as the center
2. Instruments that include questions of communication
about desired versus experienced 2. Important to build employee
levels of satisfaction identification with the new corporate
a. Face Scales identity
1.

Retention Strategies