Lecture Business and society - Chapter 17: Employee Stakeholders and Workplace Issues

© 2015 Cengage Learning

1


Chapter
17
Employee
Stakeholders
and
Workplace
Issues
© 2015 Cengage Learning

2


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
whistle-blowing.

© 2015 Cengage Learning

3


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

© 2015 Cengage Learning

4


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
2015 Cengage Learning

5


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
© 2015 Cengage Learning

6

The Changing Social Contract

© 2015 Cengage Learning

7


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.
© 2015 Cengage Learning

8


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
© 2015 Cengage Learning

9


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.
© 2015 Cengage Learning

10

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.
2015 Cengage Learning
11


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
© 2015 Cengage Learning

12
before termination.


Moral and Managerial
Objections to Employment-atWill
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.
© 2015 Cengage Learning

13


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.

© 2015 Cengage Learning

14


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.
© 2015 Cengage Learning

15


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.
© 2015 Cengage Learning

16

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.
© 2015 Cengage Learning

17


Alternative Dispute Resolution

© 2015 Cengage Learning

18


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.

© 2015 Cengage Learning

19


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.

© 2015 Cengage Learning

20


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

be involved in
© 2015 Cengageshould
Learning
21


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
and be bound.
© 2015occurring,
Cengage Learning
22

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.
© 2015 Cengage Learning

23


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

© 2015 Cengage Learning

24

Two Views of Employee
Responsibility in a Whistle-Blowing
Situation
Traditional
Corporat
e
Employe
r

Employe
e

Loyalty
Obedience
Confidentiality

Emerging
Corporat
e
Employer
(Has certain
rights)

Responsibility

Employe
e

Responsibility

(Has certain
rights)

Public

(Has certain
rights)

Whistle blowing
© 2015 Cengage Learning

25