Human resource 1e by denisi griffin chapter 06

Prepared by Joseph B. Mosca, Monmouth University and
© 2012 South-Western, Cengage Learning, Inc.
All rights reserved.

Marla M. Kameny, Baton Rouge Community College

PowerPoint Presentation Design by Charlie Cook
The University of West Alabama


Learning Objectives
After studying this chapter, you should be able to:

1. Discuss the role of ethics in HR decision making
2. Describe the concept of and organizational strategies
for rightsizing
3. Describe how to manage termination and retention
4. Describe the elements of voluntary turnover
5. Discuss key HR issues during mergers and
acquisitions

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–2


Ethics and HRM
• Ethics
 Are an individual’s beliefs about what is right

and wrong, and good and bad.

 Are formed by the societal context in which
people and organizations function.

• Ethical Behavior versus Legal Behavior

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–3


Rightsizing the Organization
The process of monitoring and
adjusting the composition of the
organization’s workforce to its
optimal size.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–4


Temporary Solutions for Increased
Demand for Employees
Meeting
Meeting the
the Demand
Demand
for
for Employees
Employees

Overtime
Overtime

Employee
Employee
leasing
leasing

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Part-time
Part-time
workers
workers

6–5


Dealing with a Decrease in Demand
for Employees
Adjusting
Adjusting for
for Fewer
Fewer
Employees
Employees
Reduce
Reduce
contingent

contingent
workforce
workforce

Retain
Retaincore
coreof
of
permanent
permanent
workers
workers

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Utilize
Utilizestrategic
strategic
layoffs
layoffs

6–6


Justice in Organizations

Types
Types of
of Justice
Justice

Distributive
Distributive
justice
justice

Procedural
Procedural
justice
justice

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Interactional
Interactional
justice
justice

6–7


Critical Dimensions of Procedural
Justice

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6–8


Legal Issues in Layoffs

• Protecting Employee Rights
 If layoffs result in disparate impact for

protected groups, legal actions can become
problematic.
 Decisions to layoff more senior employees

can result in age discrimination suits.
 Layoff decisions related to performance must

be based on a defensible performance
appraisal process.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–9


Is Downsizing Effective?
• Stable Employers
 Have changes in employment between plus and

minus 5%

• Employment Downsizers
 Have employment declines of more than 5%; plant

and equipment declines of less than 5%
 Have the lowest levels of return on assets and did
poorly on stock price.

• Asset Downsizers
 Have employment declines of less than 5% but plant

and assets declines were at least 5% greater than
declines in unemployment
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–10


Beyond the Book:
Should Firms Use Downsizing When
Employees Are No Longer Needed?
• YES
 It leads to quicker

decision making, more
precise accountability,
and harder-working
employees.
 It can significantly

reduce a firm’s salary
expense when
unneeded employees
are terminated
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

• NO
 Employees are needed

or they wouldn’t have
been hired in the first
place.
 It is expensive because

firms must make
severance payments
and fund retirement
plans.
6–11


Progressive Discipline
• Punishment
 Is following unacceptable behavior with some

type of negative consequences.

• Discipline
 Is a system of rules and procedures for how

and when punishment is administered and
how severe the punishment.

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6–12

Typical Disciplinary Problems

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6–13


Progressive
Progressive
Disciplinary
Disciplinary
Plans
Plans

Verbal
Verbal
warning
warning
Written
Written
warning
warning

Suspension
Suspension

Termination
Termination

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–14


Employment-at-Will Doctrine
An employer can terminate any
employee at any time, for any
reason (good or bad), or for no
reason at all.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–15


Exceptions to the Doctrine of Employment-atWill

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–16


Beyond the Book:
Preventing Employment-at-Will Problems
 Make explicit statements that employment
is at-will
 Write contracts specifying termination
procedures
 Document performance or behavior
problems that may lead to discharge

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–17


Causes of Job Dissatisfaction
• Job Dissatisfaction
 Is the feeling of being unhappy with one’s job.
 Is a major cause of voluntary turnover

• Job Embeddedness
 Refers to the fact that people will stay on their

jobs, even when they are unhappy and should
leave
 Community ties or obligations keep the
employee on the job

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6–18


Beyond the Book:
A Traditional Model of Quitting

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6–19

A Model of
the
Turnover
Process

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6–20


Causes
Causesof
ofJob
Job
Dissatisfaction
Dissatisfaction

Nature
Natureof
ofthe
the
work
work

Pay
Payand
and
benefits

benefits

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Supervisors
Supervisorsand
and
co-workers
co-workers

6–21


The Effects of Job Dissatisfaction
• Organizational commitment
• Organizational citizenship behaviors
(OCBs)

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–22


Measuring and Monitoring
Job Satisfaction
• Primarily done through attitude surveys
distributed to employees
• Responses are used to track changes in
employees’ attitudes

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–23


Retention Strategies
• Realistic job previews (RJPs)
• Stock Options

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–24


Managing HR During
Mergers and Acquisitions
• HR manager plays a key role as
communicator because:
 Employees are concerned about their jobs.
 Speculation and rumors begin circulating.
 An atmosphere of distrust emerges.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

6–25