Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall. 9-1 Ethics, Employee Rights,...

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall. 9-1

Ethics, Employee Rights, and Fair Treatment at Work

Chapter 9


Ethics and Fair Treatment at Work

• Ethics are principles of conduct that govern an individual or a group

• The law is not the best guide as things that are legal are not always the right thing to do and sometimes the right thing to do isn’t legal

• Ethics means making decisions that represent what you stand for, not just what the laws are


Ethics in the Workplace

• Ethical companies

– Appear to be highly aware of ethical issues

– Practice fair treatment of employees


What Treat Employees Fairly?

• To avoid workplace unfairness issues such as low productivity and high turnover

• To avoid legal ramifications because employees have both legal and moral rights


What Shapes Ethical Behavior at Work?

• Individual factors

• Traits

• Organizational pressures

• Ethics policies and codes

• Enforcement

• Organizational culture


The “Quick” Test

• Is the action legal?

• Is it right?

• Who will be affected?

• Does it fit the company’s values?

• How will it “feel” afterwards?

• How will it look in the newspaper?

• Will it reflect poorly on the company?


The Manager’s Role

• Clarify expectations

• Use signs and symbols

• Provides physical support

• Use stories

• Organize rites and ceremonies


Why Cultivate Ethical Behavior?

• Managers begin with establishing moral awareness

• Managers can influence employee ethics by cultivating the right norms, peer behavior, leadership, reward systems and culture

• Managers need to be on the lookout for

– Moral disengagement

– Systemic cognitive biases


• Managers should encourage an individual’s morals

• Managers must be aware of the seductive power of unmet goals

• Managers must be careful of offering monetary rewards for ethical behavior as this can backfire

• Managers must be certain that they do not reward bad behavior

Why Cultivate Ethical Behavior?, cont.


• Managers must make sure that unethical behavior is punished

• Managers must encourage open discussion of ethical issues

• Managers must make be aware of the tendency of individuals to shift moral compasses

Why Cultivate Ethical Behavior?, cont.


HR Management’s Role in Ethics and Fair Treatment

• Staffing and selection

• Training

• Performance appraisal

• Reward and disciplinary systems

• Addressing workplace aggression and violence issues

• Building two-way communication


Employee Discipline and Privacy

• HRM must adhere to the Three Pillars in order to create a fair and just disciplinary system

– Clear rules and regulations

– A system of progressive penalties

– Maintain an appeals process


Fair Discipline Guidelines

• Make sure the evidence supports the charge of employee wrongdoing

• Make sure to protect the employees’ due process rights

• Adequately warn the employee of the disciplinary consequences of his or her alleged misconduct


• The rule allegedly violated should be “reasonably related” to the efficient and safe operation of the particular work environment

• Fairly and adequately investigate the matter before administering discipline

• The investigation should produce substantial evidence of misconduct

• Apply applicable rules, orders or penalties without discrimination

Fair Discipline Guidelines, cont.


• The penalty should be reasonably related to the misconduct and to the employee’s past work history

• Maintain the employees’ right to counsel

• Don’t rob your subordinate of his or her dignity

• Remember that the burden of proof is on you

• Get the facts



• Don’t act while angry

• Use ombudsman



Discipline Without Punishment

• Issue an oral reminder

• Should another incident arise within six weeks, issue a formal written reminder and place a copy in the employee’s personnel file

• Give a paid, one-day “decision-making leave”

• If no further incidents occur in the next year or so purge the one-day paid suspension from the person’s file


Employee Privacy

• People view invasions of privacy as unethical and unfair!

• Privacy violations include:– Intrusion– Publication of private matters– Disclosure of medical records– Appropriation of an employee’s name or

likeness for commercial purpose


• Employee monitoring issues such as managing and monitoring e-mail, biometrics and location monitoring are an urgent problem!

• About 1/3 of US companies recently investigated suspected leaks, via e-mail, or confidential or proprietary information

• HRM must take legal issues into consideration

Employee Privacy, cont.


Managing Dismissals

• Termination at will

• Exceptions to termination at will

– Statutory exceptions

– Common law exceptions

– Public policy exceptions


Grounds for Dismissal

• Unsatisfactory performance

• Misconduct, including insubordination

• Lack of qualifications for the job

• Changed requirements or elimination of the job


What Is Insubordination?

• Direct disregard of the boss’ authority

• Direct disobedience of, or refusal to obey, the boss’s orders, particularly in front of others

• Deliberate defiance of clearly stated company policies, rules, regulations and procedures

• Public criticism of the boss

• Blatant disregard of reasonable instructions

• Contemptuous display of disrespect


• Disregard for the chain of command

• Participation in (or leadership of) an effort to undermine and remove the boss from power

What Is Insubordination?, cont.


Avoiding Wrongful Discharge Suits

• Wrongful discharge occurs when an employee’s dismissal does not comply with the law or with the contractual agreement stated or implied by the firm via its employment application forms, manuals or other promises

• Avoid these suits by laying the groundwork – starting with the employment application – to protect the company

• Maintain fairness safeguards, including severance pay


Managers Avoidance of Personal Liability

• Follow company policies and procedures

• Administer the discipline in a manner that does not add to emotional hardship

• Do not act in anger as doing so undermines the appearance of objectivity

• Utilize the HR department for advice regarding how to handle difficult disciplinary matters


The Termination Interview

• Plan the interview carefully

• Get to the point

• Describe the situation

• Listen

• Review the severance package

• Identify the next step

– Outplace counseling

– Can be part of severance package


Exit Interviews

• Exit interviews are often conducted with employees who are leaving the firm for any reason


Layoffs and the Plant Closing Law

• Layoffs occur when workers go home for a time due to lack of work – usually not permanent

• Downsizing is reducing, usually dramatically, the number of people employed by a firm

• Both require compliance of WARN – the Worker Adjustment and Retraining Notification Act – which requires employers of 100+ employees to give 60 days’ notice before closing a facility or starting a layoff of 50 or more people


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Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall. 9-1 Ethics, Employee Rights,...

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