ETHICS, EMPLOYEE RELATIONS & FAIR TREATMENT - BMS

Lecture 10

ETHICS, EMPLOYEE RELATIONS & FAIR TREATMENT

BTEC Higher National DiplomaHuman Resource Management

Jeeshan Mirza

Topic Overview1. HRM Strategy & Analysis

2. Job Analysis

3. Personnel Planning & Recruiting

4. Selecting Employees

5. Training & Developing Employees

6. Performance Management & Appraisal

7. Managing Employee Retention, Engagement, and Careers

8. Developing Compensation Plans

9. Pay For Performance & Employee Benefits

10. Ethics, Employee Relations, Fair Treatment At Work

11. Working With Unions/Improving Occupational Safety, Health, and Risk Management

Overview• Basics Of Ethics & Fair Treatment

• What Shapes Ethical Behavior At Work

• HR Tools For Managing Ethics & Fair Treatment

• Managing Employee Discipline

• Managing Employee Relations






Basics Of Ethics & Fair Treatment

The Concept Of Ethical Behavior

Managers promise salary raise, but don’t deliver

Salespeople say orders coming, when its not

Production managers take kickbacks from suppliers

HR monitors prospective and existing employees social networks

Managers allow employees to operate machinery with technical fault

Basics Of Ethics & Fair TreatmentEthics

▷ Principles of conduct governing an individual or a group

▷ Rooted in morality

▷ Morality-society’s accepted standards of behavior

▷ Involves basic questions of right and wrong

Basics Of Ethics & Fair Treatment▷ Laws exist to ensure companies are ethical

▷ Law is a far-from-perfect guide to what is ethical

▷ Something may be legal but not right or right but not legal

▷ Firing an employee with 20 years’ tenure without notice may be unethical, but still legal

Basics Of Ethics & Fair Treatment▷ Company’s ethics manifest themselves is in how

fairly it treats its employees

▷ Unfair treatment reduces morale, increases stress, has negative effects on performance

▷ Employees of abusive supervisors-

More likely to quit, report lower job and life satisfaction, higher stress

Basics Of Ethics & Fair Treatment▷ Unfairness and unethical treatment can be subtle

or blatant

▷ Subtle-expecting employee to work on weekend, holiday, not giving time off

▷ Blatant-use bias and prejudice in treatment of employees

Basics Of Ethics & Fair Treatment▷ Employees’ fairness perceptions affect company

Victims exhibit workplace deviance-, unethical work habits, theft and sabotage

▷ Perceptions of fairness relate to enhanced employee commitment

Enhanced satisfaction with the organization, jobs, and leaders

Enhanced organizational citizenship behaviors

Basics Of Ethics & Fair Treatment▷ People who view themselves as victims of

unfairness

Suffer ill effects including poor health, strain, and psychological conditions

Source: Mathis

Business Ethics & HR Management Consequences


HR Related Ethical Misconduct

Source: Mathis


Bullying & Victimization At Work Place

Bullying

▷ Singling out someone to harass and mistreat them

▷ An increasingly serious problem



▷ Bullying involves

Imbalance of power: People use their power to control or harm others

Intent to cause harm: Person bullying has a goal to cause harm

Repetition: Incidents of bullying happen to the same the person over and over



▷ Bullying involves

Verbal: Name-calling, teasing

Social: Spreading rumors, leaving people out on purpose, breaking up friendships

Physical: Hitting, punching, shoving

Cyberbullying: Using the Internet, mobile phones, or other digital technologies to harm others



▷ Perpetrators are undoubtedly responsible and to blame for bullying

▷ However, some peoples personalities likely to make them victims

Submissive Victims- Anxious, cautious, sensitive, quiet

Provocative Victims- Aggressive

Low Self Determination- Those who leave it to others to decide for them






What Shapes Ethical Behavior At Work

Important Factors That Shape Behavior At Work


Why do people do bad things?

Three factors determine the ethical choices we make

Bad Apples- People who are inclined to make unethical choices

Bad Cases- Ethical situations that are ripe for unethical decisions

Bad Barrels- Environments that foster or condone unethical choices; poisonous social environment


▷ What makes Bad Apples?

Low principled individuals who do not think through the implications of their decisions

Traits-many people are morally disengaged, lack honesty, integrity

Older workers have stricter interpretations of ethical standards, made more ethical decisions than younger ones

Wall Street Journal Quiz


▷ Outside Forces That Shape Ethical Decisions (Bad Barrels)

Job Related Pressure-People do unethical things not solely for personal gain, often pressures of the job

Pressure From Boss- Level of misconduct at work drops dramatically when employees believe their supervisors exhibited ethical behavior

Ethics Policies & Codes- Eg. IBM, staff cannot accept gift


Organization’s Culture- The characteristic values, traditions, and behaviors a company’s employees share

A value is a basic principle, belief that guides the actions and decisions of employees in the company

Values are important because they guide and channel behavior, Eg. Honesty & Integrity

Leaders set a company’s ethical tone

Managers, and leaders need to walk the talk


Organization’s Culture










HR Tools For Managing Ethics & Fair Treatment

Influencing Ethical Behavior At Work


▷ Selection Tools

Simplest way to tune up an organization-hire more ethical people

Use screening tools like honesty tests, background checks-referee checks

Other interview techniques


▷ Training Tools

Showing employees how to recognize ethical dilemmas

Emphasize the moral underpinnings of the ethical choice

Company’s deep commitment to integrity and ethics

Participation by top managers in the program to underscore that commitment

LOA, Employee Handbook, Regular Training


▷ Performance Appraisal Tools

Unfair appraisals suggests employer may condone unethical behavior

The employees’ standards should be clear

Employees should understand basis on which they’re appraised

The supervisor should perform the appraisal objectively and fairly


▷ Reward & Disciplinary Systems

Employers should punish unethical conduct

Discipline executives, not just underlings, who misbehave


▷ Employee Privacy Policy

People view invasions as both unethical and unfair; following triggers most privacy violations

Background checks

Monitoring off-duty conduct and lifestyle

Drug testing

Workplace searches, and workplace monitoring


▷ Employee Privacy Policy

Employees can also jeopardize company through violation

Important to have clearly documented policies governing what employee and employer can do, cannot do


Classroom Debate

Should employers have right to track employees emails, internet usage, , telephone conversation, work space (drawers, cabinets)?

Source: Mathis






Managing Employee Discipline

Using Fair Disciplinary Practices

Managing Employee Discipline▷ Purpose of discipline- encourage employees to

adhere to rules and regulations

▷ Necessary to corrects or punish a subordinate for violating a rule or procedure

▷ Disciplinary process must be fair and well thought out

▷ Can poison employees perception of ethical and fair treatment

Managing Employee Discipline▷ Managers builds a fair discipline process on three

pillars

1. Rules and regulations

2. System of progressive penalties

3. Appeals process

Managing Employee Discipline1. Rules & Regulations

A set of clear disciplinary rules and regulations

Should address issues such as theft, destruction of company property, drinking on the job, insubordination

Purpose-inform employees ahead of time what is and is not acceptable behavior

Preferably in writing-employee’s orientation, employee handbook, letter of appointment

Managing Employee Discipline2. Penalties

System of progressive penalties

Severity of the penalty depends on offense and the number of times

First warning, fines, suspensions, termination


Source: Mathis

Progressive Discipline Process

Progressive discipline system by employer may be viewed more positively by Department Of Labor

Managing Employee DisciplinePositive & Progressive Discipline Approach

▷ Traditional punishments may only gain short term compliance

▷ Leaves employees disgruntled even when they are wrong

▷ Discipline without punishment is new technique

Managing Employee DisciplinePositive & Progressive Discipline Approach

1. Issue an verbal reminder for first infraction, counsel

2. If repeat within 6 weeks, issue formal written reminder, with copy in employee’s personnel file

3. Again in 6 weeks? Give paid 1-day paid “decision-making leave.” Whether he or she wants to abide by the company’s rules

4. No further incidents occur, purge 1-day paid suspension from the person’s file, else pursue harsher punishment

Managing Employee Discipline3. Appeals Process

Guaranteed fair treatment- employer programs

Ensuring employees are treated fairly

Providing formalized, well-documented, and highly publicized vehicles through which employees can appeal any eligible issue

Also recognized as Grievance Procedure


Grievance▷ A complaint-merely an indication of employee

dissatisfaction

▷ Grievance- complaint formally stated in writing

▷ Issue involving

Wages, hours, or, conditions of employment,

Discipline cases, promotions, transfers, layoffs, job evaluations, vacation, incentive


Grievance▷ Management should be concerned with

complaints and grievances

▷ Indicate potential problems in workforce

▷ Without grievance procedure

Management unable to respond to employee concerns because managers are unaware of them


Grievance▷ Formal grievance procedure provides a valuable

communication tool for organizations

▷ HR responsible for developing process


Grievance Handling Process1. Develop policy, implement in handbook-how to

address, who to address, where to obtain form, next steps

2. Employee to fill grievance form

3. Grievant trying to work out agreement with supervisor with colleague or union rep present

4. Go to supervisors boss, then that persons boss, finally to union or arbitrator


Why Discipline Not Often Enforced

▷ Organizational culture of avoiding discipline

▷ Lack of support

▷ Guilt

▷ Fear of loss of friendship

▷ Avoidance of time loss

▷ Fear of turnover, negative repercussions






Managing Employee Relations

Defining Employee Relations & Methods To Manage It


The BasicsEmployers Want

▷ Employees who will do what they are told without costing too much

▷ Engagement, loyalty and commitment


The BasicsEmployees Want

▷ A fair days pay for a fair days work

▷ A say in terms and conditions of employment and the way in which their work is organized

▷ Security of employment

▷ Good working conditions, good relationship with peers and superior, a healthy and safe working environment


The BasicsWhat employer

wantsWhat employee

wants


The Basics▷ There must be a fine balance between what

employee wants, and what employer wants

▷ When there is lack of balance

▷ Conflicts can arises between employers and employees


The Basics▷ If employee feels not fairly treated, not aligned

with company, unsatisfied with work environment

▷ Demotivation Job Withdrawal Poor Performance Conflict Resolution By Self Or With Union Support Turnover

▷ Which is why employers need and try to maintain good employee relations

Managing Employee Relations▷ Activities that involves establishing and

maintaining positive employee employer relationships

▷ Contributes to satisfactory productivity, motivation, morale, and discipline

▷ Maintains positive, productive, and cohesive work environment

Big conceptHaving employees on your side!

Managing Employee Relations▷ Ways in which companies can improve employee

relations

1. Have HR processes and policies in place

2. Improving and assessing employee relations through better communications

3. Developing employee recognition and relation programs

4. Creating employee involvement strategies


1. HR Policies & Processes

▷ Absolute basic fundamental to have HR Policies & Processes in place

▷ Policies- rules, regulations that all employees must abide by

▷ Policies could originate from country’s labor laws and HR plan, company strategy

▷ Rules must apply equally for everyone!


1. HR Policies & Processes

▷ Have clear job descriptions, job specification

▷ Have clearly defined processes in place for every HR activity

Recruitment & Selection Performance Management Compensation Strategy Training & Development

▷ Clear transparent processes promotes practice and perception of fair treatment


2. Through Better Communication

▷ Companies use various communications tools to bolster their employee relations efforts

▷ Use open-door policy to encourage communication between employees and managers

Some companies have power distance

Employees cannot interact with superiors, or their superiors without chain of command



▷ Employee handbook covering basic employment information-soft copy, hard copy, web based

So that policies, procedures are clear

▷ Employee focus group discussions, suggestion box, complaint box, hotlines

▷ Exit interviews provide opportunity to sample the quality of one’s employee relations



▷ Company newsletters, bulletin boards

Employees like to know about developments in their company

▷ Team events, meetings, activities



▷ Organizational climate surveys-take the pulse of employee’s attitudes

▷ Toward organizational issues including leadership, safety, role clarity, fairness, and pay

▷ Get a sense of whether their employee relations need improvement

▷ Organizational Climate-the shared perceptions organizational members have about their organization and work environment

Big conceptIncrease and improve communication lines with-make them feel part of the organization. Communication must be two way!


3. Developing Employee Recognition Relations Programs

▷ Employee recognition and award programs

▷ Formal companywide programs such as employee-of-the-month awards

▷ Employers distribute such awards with much fanfare at special events such as awards dinners

▷ Recognition improves employee satisfaction, commitment


4. Creating Employee Involvement Strategies

▷ Employees appreciate having their opinions listened to and acted upon

▷ Particularly in matters that directly concern their day to day activities

▷ Voice Of The Employee

▷ Company objectives can be achieved more effectively and efficiently if employees are given some decision making



▷ Employee relations improve when employees get involved with company in positive ways

▷ Getting employees involved in discussing and solving organizational issues

▷ Employees know more about their work processes more than anyone else

▷ Getting them involved means giving them sense of ownership, signaling their opinions are valued



▷ Discussing and solving organizational issues

Focus Groups

Suggestion Team/Problem Solving Team

Quality Circle

Self Managed/Self Directed Teams

▷ Some companies open it up for employees to recommend their ideas as a competition


Other Strategies▷ Fellowship, office parties, events, religious/cultural

ceremonies, offsite workshops

▷ Involving family of employees in activities-picnic, holidays, annual recognition awards

▷ Benefits, workplace facilities

Thanks!Any questions?

You can find me at:@[email protected]

ETHICS, EMPLOYEE RELATIONS & FAIR TREATMENT - BMS

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