MGT 340 CH 11 Separating/retaining Employees
Distinguish between involuntary and voluntary turnover, and describe their effects on an organization.
Involuntary turnover occurs when the organization requires employees to leave, often when they would prefer to stay.
Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them.
Both are costly because of the need to recruit, hire, and train replacements. Involuntary turnover can also result in lawsuits and even violence.
LO 11-2 Discuss how employees determine whether the organization treats them fairly.
Employees draw conclusions based on the outcomes of decisions regarding them, the procedures applied, and the way managers treat employees when carrying out those procedures.
Outcome fairness is a judgment that the consequences are just. The consequences should be consistent, expected, and in proportion to the significance of the behavior.
Procedural justice is a judgment that fair methods were used to determine the consequences. The procedures should be consistent, unbiased, based on accurate information, and correctable. They should take into account the viewpoints of everyone involved, and they should be consistent with prevailing ethical standards.
Interactional justice is a judgment that the organization carried out its actions in a way that took the employee’s feelings into account—for example, by listening to the employee and treating the employee with dignity.
LO 11-3 Identify legal requirements for employee discipline.
Employee discipline should not result in wrongful discharge, such as a termination that violates an implied contract or public policy.
Discipline should be administered evenhandedly, without discrimination.
Discipline should respect individual employees’ privacy. Searches and surveillance should be for a legitimate business purpose, and employees should know about and consent to them. Reasons behind disciplinary actions should be shared only with those who need to know them.
When termination is part of a plant closing, employees should receive the legally required notice, if applicable.
LO 11-4 Summarize ways in which organizations can discipline employees fairly.
Discipline should follow the principles of the hot-stove rule, meaning discipline should give warnings and have consequences that are consistent, objective, and immediate.
A system that can meet these requirements is called progressive discipline, in which rules are established and communicated, and increasingly severe consequences follow each violation of the rules. Usually, consequences range from a spoken warning through written warnings, suspension, and termination. These actions should be documented in writing.
Organizations also may resolve problems through alternative dispute resolution, including an open-door policy, peer review, mediation, and arbitration.
When performance problems seem to result from substance abuse or mental illness, the manager may refer the employee to an employee assistance program.
When a manager terminates an employee or encourages an employee to leave, outplacement counseling may smooth the process.
LO 11-5 Explain how job dissatisfaction affects employee behavior.
Circumstances involving the nature of a job, supervisors and co-workers, pay levels, or the employee’s own disposition may produce job dissatisfaction.
When employees become dissatisfied, they may engage in job withdrawal: behavior change, physical job withdrawal, or psychological job withdrawal.
Behavior change means employees try to bring about changes in policy and personnel through inside action or through whistle-blowing or lawsuits.
Physical job withdrawal may range from tardiness and absenteeism to job transfer or leaving the organization altogether.
Psychological withdrawal involves displaying low levels of job involvement and organizational commitment. It is especially likely when employees cannot find another job.
LO 11-6 Describe how organizations contribute to employees’ job satisfaction and retain key employees.
Organizations can try to identify and select employees who have personal dispositions associated with job satisfaction.
They can make jobs more complex and meaningful—for example, through job enrichment and job rotation.
They can use methods such as the role analysis technique to make roles clear and appropriate.
They can reinforce shared values and encourage social support among employees.
They can try to establish satisfactory pay levels and communicate with employees about pay structure and pay raises.
Monitoring job satisfaction helps organizations identify which of these actions are likely to be most beneficial.